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Contact Gold Reports Excellent Recoveries from Bottle Roll Tests at Bravo and Echo Zones, Green Springs, Nevada

Newsfile Corp.

Vancouver, British Columbia--(Newsfile Corp. - April 21, 2020) -  Contact Gold Corp. (TSXV: C) (the "Company" or "Contact Gold") is pleased to announce results from cyanide bottle roll tests from the Green Springs gold project located on the Cortez Trend in Nevada.

Contact Gold Bottle Roll Testing Highlights - Alpha, Bravo and Echo Zones:

  • 6.02 g/t Au, or 108% of the original 5.75 g/t Au average grade from using Fire Assay and Gravimetric methods from 13 individual 5 foot sample intervals totalling 1.15 kg from the Echo Zone

  • 1.04 g/t Au, or 99% of the original 1.05 g/t Au average grade from using Fire Assay and Gravimetric methods from 15 individual 5 foot sample intervals totalling 1.05 kg from the Bravo Zone

  • 0.78 g/t Au, or 49% of the original 1.61 g/t Au average grade from using Fire Assay and Gravimetric methods from 17 individual 5 foot sample intervals totalling 1.18 kg from the Alpha Zone

Three cyanide bottle rolls were completed on composite samples from 2019 RC drill intercepts from the Alpha, Bravo and Echo Zones. The cyanide solubility testing was carried out to wrap up a successful first program by Contact Gold, with high grade oxidized gold mineralization previously reported (press releases January 14, 2020, January 28, 2020 and February 12, 2020).

"The excellent gold recoveries coupled with the strong exploration potential that drew us to Green springs reinforces the high quality nature of Contact's acquisition. The initial bottle roll tests from Green Springs are extremely encouraging and demonstrate the amenability of both the remaining Chainman Shale hosted mineralization, as well as the underexplored Pilot Shale hosted mineralization to processing via heap leach methods." stated Vance Spalding, VP Exploration for Contact Gold. "We can now move forward confidently with a 2020 drill program targeting expansion of existing oxide gold zones and the discovery of new zones at the lower Pilot shale contact."

2020 Bottle Rolls:

Echo Zone:

A composite sample composed of 13 individual 5 foot sample intervals totalling 1.15 kg returned a bottle roll assay of 6.02 g/t Au, or 108% of the 5.75 g/t Au average grade using original Fire Assay and Gravimetric methods for the same 13 samples.

Alpha Zone:

The Alpha zone composites returned mediocre results due to improper compositing. The lower 10 samples representing 15 metres returning in excess of 90% cyanide solubility. But the upper 7 samples included in the composite, representing 10.67 metres returning less than 20% cyanide solubility, and therefore two composites should have been formed instead of one.

A composite sample composed of 17 individual 5 foot sample intervals totalling 1.18 kg returned a bottle roll assay of 0.78 g/t Au, or 49% of the 1.61 g/t Au average grade using original Fire Assay and Gravimetric methods for the same drill interval. The Alpha Zone is also hosted within the Pilot Shale, and oxidation within the mineralized zone increases with depth to the limestone contact, as shown in the original cyanide solubility assays.

Bravo Zone:

A composite sample composed of 15 individual 5 foot sample intervals totalling 1.05 kg returned a bottle roll assay of 1.04 g/t Au, or 99% of the 1.05 g/t Au average grade using original Fire Assay and Gravimetric methods for the same drill interval. Significantly the Bravo Zone is interpreted to be hosted within the Pilot Shale, an important regional host unit that was not previously mined at Green Springs.

For a location map of the Green Springs target areas, please click:

http://www.contactgold.com/_resources/news/GS-Targets-20200324.jpg

Table of CN Bottle Roll Tests from Green Springs

Zone Hole ID Start
meters
End
meters
Interval
meters
Bottle Roll
Assay
BR recovery vs
FA/AA +/-Grav
Alpha GS19-02 24.38 50.29 25.91 0.78 49%
Echo GS19-07 85.34 106.68 21.34 6.02 108%
Bravo GS19-10 12.19 35.05 22.86 1.04 99%

 

Contact Gold signed a purchase option agreement with Ely Gold Royalties ("Ely Gold") to acquire an undivided 100% interest in Green Springs in July 2019. Green Springs is an early stage exploration property and does not contain any mineral resource estimates as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101"). There has been insufficient exploration to define a mineral resource estimate at Green Springs.

The scientific and technical information contained in this news release has been reviewed and approved by Vance Spalding, CPG, VP Exploration, Contact Gold, who is a "qualified person" within the meaning of NI 43-101. Drill intercepts were calculated using a minimum thickness of 3.05 metres averaging 0.14 ppm gold and allowing inclusion of up to 4.57 metres of material averaging less than 0.14 ppm gold for low grade intervals and higher grade intervals were calculated using a minimum thickness of 3.05 metres averaging 1.00 ppm gold and allowing inclusion of up to 4.57 metres of assays averaging less than 1.00 ppm gold. Gravimetric assays are used for all Fire Assays above 4.00 ppm gold. Cyanide solubility assays are completed on all Fire Assays greater than 0.1 g/t. True width of drilled mineralization is unknown, but owing to the apparent flat lying nature of mineralization, is estimated to generally be at least 70% of drilled thickness. The composited grades for comparison to the Bottle Roll assays are weighted averages of the amount of pulp used from individual 5 foot assays. Quality Assurance / Quality Control consists of regular insertion of certified reference standards, blanks, and duplicates. All failures are followed up and resolved whenever possible with additional investigation whenever such an event occurs. All assays are completed at ALS Chemex; an ISO 17025:2005 accredited lab. Check assays are completed at a second, reputable assay lab after the program is complete.

About Contact Gold Corp.

Contact Gold is an exploration company focused on producing district scale gold discoveries in Nevada. Contact Gold's extensive land holdings are on the prolific Carlin, Independence and Northern Nevada Rift gold trends which host numerous gold deposits and mines. Contact Gold's land position comprises approximately 140 km2 of target rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage.

Additional information about the Company is available at www.contactgold.com.

For more information, please contact: +1 (604) 449-3361
John Glanville - Director Investor Relations
Chris Pennimpede - Corporate Development
E-mail: info@ContactGold.com

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to the anticipated exploration activities of the Company on the Green Springs property.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/54658