Getchell Gold Corp. Completes Buena Vista Gold Arrangement and Updates on Phase 1 Drill Plan at the Hot Springs Peak Project
Burlington, November 13, 2018 - Getchell Gold Corp. (CSE: GTCH) ("Getchell Gold" or the "Company") (formerly Wabi Exploration Inc.) provides a corporate and operational update on the previously announced Arrangement Agreement with Buena Vista Gold Inc. ("BVG"), and provides the finalized first phase drill plan at the Hot Springs Peak Project, planned to commence in the fall of 2018.
Arrangement Agreement and Financing Have Closed
BVG closed a financing of CAD$919,000 net of share issue costs on November 2, 2018. Getchell Gold and BVG then closed on the Arrangement Agreement, pursuant to which:
- Getchell Gold consolidated its stock on a 1-new-for-6-old basis, bringing its number of shares issued and outstanding to 3,660,734;
- Getchell Gold issued 2,253,989 units at $0.45 cents per unit. Each unit is comprised of one common share and one $0.52 cent common share purchase warrant expiring November 2, 2020;
- Getchell Gold issued 210,399 options exercisable into Units at $0.45 cents per unit. Each unit is comprised of one common share and one $0.52 cent common share purchase warrant expiring November 2, 2023; and
- Getchell Gold issued 22,775,941 shares to the now-former shareholders of BVG, in addition to the shares described above.
The total number of shares now outstanding in Getchell Gold is 28,690,664.
Getchell Gold is well funded for the exploration program described below. It has approximately CDN$1,100,000 in treasury, after having sent USD$120,000 as a deposit to a Nevada drill company.
Management anticipates that at Getchell Gold's next board meeting, a certain number of BVG options will be exchanged for newly granted Getchell Gold options pursuant to the Option Plan approved by Getchell Gold's shareholders at the recent shareholder meeting, on terms to be disclosed immediately following such board meeting.
Hot Springs Peak Project Plan for Drill Testing
Following the press release dated July 8, 2018, the initial drilling of the Hot Springs Peak Project is now planned to commence in mid-November as a 4-hole reverse circulation drill program targeting 4 altered-mineralized areas of the project containing variable host rock compositions. This initial drill program will begin the process of understanding the geophysical responses below the surface alteration and gold-copper mineralization as discussed in the Phase 2 plan of the NI 43-101 report filed on SEDAR. The following set of cross sections show the initial planned drilling of the geophysical responses that can be generated from alterations containing gold mineralization. Management cautions that these types of geophysical responses can be generated from rock compositions other than a gold mineralized system. However, multiple elements of a gold mineralized system occur at the Hot Springs Peak surface which includes gold-arsenic mineralization, widespread hornfels alteration and silicification. The gold in a Carlin Style system is very closely associated with arsenic in the form of arsenian-pyrite. These gold system elements are overlying and adjacent to the geophysical responses and follow the outline of the responses in the sub-surface.
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Project Map showing all the elements of the surface alteration, mineralization and geophysical responses. The drill sequence for the first phase of drilling is shown as locations numbered 1-4 and discussed as follows.
The first hole planned to be drilled is 500 meters in depth, penetrating into the central structural intersection area of the geophysical responses. This hole will test both the high chargeability and resistivity within the intense magnetic low area, reflecting what Getchell believes to be a continuation of the surface hornfels alteration into the sub-surface where the high chargeability indicates the presence of sulfide mineralization (Cross Section 1). Hole #1 is an attempt to drill into the top of the central zone of the system where the chargeability and resistivity high responses are 1,000 meters wide as shown on the cross section.
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Cross Section 1
The central structural intersection area of the alteration system containing a 1,000 meter wide chargeability high. Chargeability highs commonly indicate sulfide mineralization when occurring in a mineralized system. The arrow shows the planned drill test to a depth of 500 meters. Carbon and graphite in sedimentary rocks have also been known to generate high chargeability responses and may or may not be associated with Carlin Style gold mineralization.
Drill hole #2 will test the chargeability high geophysical responses below and adjacent to the 0.701 ounce per ton surface gold mineralization on the southwest end of the system (Cross Section 2). A third hole will test the northeast end of the system where limestone is expected to be intersected with the chargeability high geophysical responses (No cross section shown). These 3 initial drill tests are on a geophysical response that is 2 X 3 kilometers in size and are at best a preliminary test of the upper part of the system. The surface gold-arsenic mineralization will be tested in the in the second phase of drilling with an angle hole under the historic mine shafts, crossing the mineralized structures and into the margin of the high geophysical responses, to better understand the connection between the surface mineralization and the geophysical responses.
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Cross Section 2
The Southwest end of the alteration system containing surface gold. The high chargeability response is commonly found with sulfide mineralization. The right arrow shows the planned drill test to 300 m. The northwestern hole is a follow up hole to be angled under and across the gold-arsenic mineralized structures and into the margin of the chargeability high response
A 4th drill test is planned 2 kilometers south of the first 3 drill tests and on a different style of mineralization containing turquoise, cinnabar and surface copper mineralization of 3.86% (Cross Sections 3 and 4). This mineralization occurs in a mafic volcanic breccia with that returned high chargeability and resistivity geophysical responses similar to the first 3 drill tests.
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Cross Section 3
Hole #4 shows planned drilling into the chargeability high below 3.86% surface copper containing turquoise. The chargeability high is a response common to sulfide mineralization.
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Cross Section 4
Corresponding resistivity high under surface copper and along a fault zone in limestone. The high resistivity is a response common to silicification in limestone associated with mineralization. The responses are 400 meters wide and begin at 125 meters depth.
Buena Vista Project
The results of the IP-Resistivity Survey have been received and have an interpretive connection with the copper and copper-gold mineralization at Star Point and Star South project areas. A new (Carlin Style) target has been identified in the Hot Springs Canyon project area associated with surface marble alteration containing gold mineralization. Caution is advised when interpreting IP responses as possible sulfides associated with intrusions or carbon graphite responses in sedimentary rocks. A more complete release of the of this information and drill targets will be made at a later.
The technical part of this report was written by Timothy Master, author of the HSP Report and a Qualified Person for Getchell Gold Corp. as that term is defined in NI 43-101. Sample data disclosure has been verified as conforming to NI 43-101, 3.2 (a) to (c) where the QP collected the representative samples of the sites and cross checked the different analytical methods used to confirm consistent results between ICP and assay results. Gold values greater than 10 ppm are analyzed with a gravimetric finish. Preparation of samples were performed by ALS Minerals Labs, according to certified standards for reporting results. Internal standards were completed by ALS. All samples were assayed by Fire-AA finish for gold and silver. Inductively Coupled Plasma (ICP) analyses were completed on all samples for other metals. Copper analyses greater than the ICP upper detection limit of 1% copper are routinely assayed for copper percent. Readers are cautioned that sampling is selective by nature and represents only the site sampled and not intended to be extended over large areas.
For further information contact:
William Wagener, CEO
+1 303 517 8764
wswagener@att.net
Peter M. Clausi, President and General Counsel
1 416 890 1232
pclausi@brantcapital.ca
The Canadian Securities Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release. Not for distribution to U.S. news wire services or dissemination in the United States.
