TORONTO: November 17, 2020. Galleon Gold Corp. (TSXV: GGO) (the “Company” or “Galleon Gold”) is pleased to report it has added a second drill rig to its ongoing drill program at the Company’s 100%-owned West Cache Gold Project, Timmins, Ontario. The Company has completed 15,000 meters of its initial infill core drilling program and has commenced a Phase Two drilling program for an additional 15,000 meters. The current two drill program is fully funded from the oversubscribed financing of $8.0 million completed on October 14, 2020. Drilling is expected to continue through 2021.
With two drill rigs concurrently operating, the Phase Two drill program will include one drill focused on the newly discovered high-grade gold Zone #9 and the other drill will continue to infill drill the mineable open pit and underground areas previously identified. Once the infill drilling has been completed, both drills will be core drilling exclusively on Zone #9.
The Company plans to initiate the transfer of the drill hole database and assays to P & E Mining Consultants Inc. in January and February 2021 in preparation for Preliminary Economic Assessment (“PEA”) work. Modeling of the West Cache Gold open pit and underground workings, as well as an estimation of a new gold resource with projected economics will be developed. The PEA is targeted to be published by early April 2021.
R. David Russell, President and CEO of Galleon Gold, commented, “We are fortunate to be fully funded for the addition of a second drill, we are looking forward to accelerating the program, and fleshing out the potential of Zone #9. To date, we have been able to predict the orientation and location of the structure and continue to be impressed by its continuity of grade and widths.”
2020 High Grade Discovery Zone #9
Figure 1 provides an updated cross-sectional view on the Zone #9 mineralized intervals. The Company has traced the mineralized zone up dip from the discovery hole WC-20-30 (9.7 m over 7.16 g/t Au), to the bedrock surface in hole WC-20-75. Assays are pending.
Qualified Person and Quality Control
The technical content of this release has been reviewed and approved by Chris Dupont, P. Eng, a “Qualified Person” as defined in National Instrument 43-101 -Standards of Disclosure for Mineral Projects. Quality Control and Assurance procedures and protocol include the insertion of one blank or standard for every 10 samples submitted for assay in addition to the insertion of standards, duplicates, and blanks inserted by AGAT Laboratories using the prep facility in Timmins, ON and analytical lab in Mississauga, ON. All gold values utilize common fire assay procedures with an AA finish, although assays over 10 g/t are re-analyzed by fire assay with a gravimetric finish. All samples reported have been checked against Company and Lab standards, duplicates and blanks. Sample prep includes all sample material crushed to 75% passing 2 mm with a 300 g split pulverized to 90% passing 200 mesh to create the 30 gram sample for fire assay. All core logging and sampling were completed in-house at the Company core facility in Timmins, ON. Core produced in the field is delivered to the Company’s Timmins warehouse every morning with all logging, cutting, labeling and bagging completed by supervised personnel. Bagged core samples for assay are picked up twice a week by AGAT personnel for delivery to their prep facility across town.
About the West Cache Gold Project
The West Cache Gold Project is located 13 km west of Timmins Ontario, it is serviced by Provincial highway 101 and secondary access roads. It is situated along the Porcupine-Destor gold belt, approximately 7 km northeast of Pan American Silver’s Timmins West Mine and 14 km southwest of Newmont’s Hollinger Mine.
About Galleon Gold
Galleon Gold is a North American exploration and development company. Eric Sprott holds approximately 23% of the Company’s outstanding common shares and is also the Company’s partner on the Neal Gold Project in Idaho. Drilling program is currently underway at the Company’s flagship project, the West Cache Gold Project, Timmins, Ontario.
FOR FURTHER INFORMATION:
R. David Russell
Chairman and CEO
T. (416) 644-0066
Forward Looking Statements
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, expectations, plans, and objectives of Galleon Gold are forward-looking statements that involve various risks. The following are important factors that could cause Galleon Gold’s actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world-wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future exploration activities and cash flows, and the uncertainty of access to additional capital. There can be no assurance that forward looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. Galleon Gold undertakes no obligation to update such forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.
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