K9 Gold Reports Excellent Progress on IP Survey at Stony Lake Project, NL; Survey 50% Complete, Trenching Permit Received, Drilling to Commence Early June
"\nThe current IP survey will cover two grids, the Jumper\'s Pond and Moonlight grids.
Vancouver, British Columbia--(Newsfile Corp. - April 15, 2021) - K9 Gold Corp. (TSXV: KNC) (FSE: 5GP) (OTC: WDFCF) ("K9" or the "Company") is pleased to report that the IP survey on its Stony Lake project in central Newfoundland is approximately 50% complete. Surveying, with Simcoe's Alpha IPTM Wireless Time Domain Induced Polarization (IP) system, has been completed on the first of two planned grids.
The Company is also pleased to report that it has received approval from the Newfoundland and Labrador Mineral Lands Division for three additional trenching sites, giving a total of five approved sites. The trenching program is scheduled to commence in the second week of May.
K9 is now preparing to mobilize its geological crew the first week of May to Grand Falls - Windsor to commence the summer program which is planned to include drilling, trenching, extensive soil sampling and mapping/prospecting.
K9 CEO, Jeff Poloni states, "This IP survey is a vital step in the further refinement of our exploration model for the property. I am extremely encouraged by the preliminary data collected to date which will enhance our ability to fine tune drill targeting for these two high priority areas planned for the first week in June."
The current IP survey will cover two grids, the Jumper's Pond and Moonlight grids. These two grids were identified in the recently reported inversion studies of the 2019 airborne magnetic survey (3D) and the 2020 VTEMTM survey (2D) as high priority targets for further exploration (see Company releases dated January 7, 2021 and March 1, 2021).
Preliminary 2D inversions of the data from the Moonlight grid, in the south-central part of the property, have identified several significant resistivity and/or IP chargeability anomalies. These anomalies include both large deep-seated zones, as well as a number of potential steeply dipping structural anomalies. With the positive preliminary results, survey coverage on the Moonlight grid was expanded to cover potential extensions of the anomalies, giving a survey total of 52 line kilometers.
The geophysical crew will now move to the Jumper's Pond grid, on the northern boundary of the property.
News Releases from other companies active in the Central Newfoundland Gold Belt continue to increase the profile of this newly emerging gold district. For example, on November 19, 2020 Sokoman Minerals announced drill results which included two zones in hole MH-20-115, 47.2 g/t Au over 4.60m and 68.3 g/t Au over 8.10m at their Moosehead project, immediately adjacent to K9's Stony Lake property. On February 23, 2021, New Found Gold announced an intercept of 224.7 gg/t Au over 2.45m in hole NFGC-21-100 and 25.0 g/t Au over 16.9m in hole NFGC-20-29 at their nearby Queensway property.
About Stony Lake Project
The Stony Lake project lies within the Cape Ray/Valentine Lake structural trend in Central Newfoundland, lying parallel to that of New Found Gold's Queensway project, along the prolific Dog Bay Line. The project covers 13,625 ha and 27 kilometers of favorable trend between Sokoman's Moosehead discovery to the northeast and Marathon's Valentine Lake deposit to the southwest.
At Stony Lake, large areas of significant gold mineralization occur primarily in altered Botwood sediments and quartz-feldspar porphyry intrusives associated with intense silicification, sericite-chlorite-carbonate alteration and a strong pyrite-arsenopyrite mineralogical association. These features indicate epizonal/mesozonal temperatures for the hydrothermal fluids and support the exploration model of hydrothermal fluids leaking upwards into the Botwood sediments from a deeper igneous intrusive source. This area is now referred to as the Exploits Subzone gold district which essentially covers the Silurian-age clastic sediments surrounding the Mount Peyton intrusive.
Prior to the 2020 field season, airborne geophysical coverage, with follow-up ground prospecting and sampling, has led to the identification of eight area of highly anomalous to high grade gold mineralization. The gold mineralization is hosted in a variety of environments, including quartz-feldspar porphyries, reduced sandstones, quartz stockworks and quartz veins. The property hosts both widespread low grade mineralization (up to 4.0 g/t Au) within the Botwood Formation and high grade veins (>4.0 g/t Au) in the basement rocks below the Botwood, similar to the nearby New Found Gold Queensway project, and the immediately adjacent Sokoman Minerals Moosehead discovery.
On-going interpretive work on the Stony Lake property has yielded several direct comparisons with the Sokoman Minerals Corp Moosehead discovery, immediately to the northeast of Stony Lake's Jumper's Pond area (note - this area was previously named "Flyers Grid," and since significant portions of the historic Flyers Grid lie off K9's property, K9 has renamed the area to avoid confusion).
Published information on the Moosehead discovery indicates that the mineralization is spatially related to reworking of a major basement structure which is likely the main pathway for the mineralizing fluids. The spatial association of the faulting with mafic intrusives appears to be highly significant. The Moosehead mineralization is hosted by N to NW trending and east dipping faults, which appear to be related to meso-scale anticlinal folding. These types of mineralizing systems typically have great lateral and depth extents (measured in kilometers).
Recent (2019) and historic (2001) geophysical work on the Jumper's Pond area strongly suggests the presence of a large fold structure that plunges to the NE towards Moosehead, as well as several NW-trending structural features. The presence of mafic rocks is also indicated for this area. The major fault structure related to the Mooseheads discovery can clearly be traced by regional magnetics for 5 - 6 km onto the Stony Lake property. These similarities increase K9's confidence in the prospectivity of the Jumper's Pond area.
About K9 Gold Corp
K9 Gold Corp has assembled a highly-experienced and dynamic team to explore its Stony Lake Project. The project has been acquired District Copper Corp by an option agreement, whereby K9 can earn up to a 100% interest in the project (see Company release dated July 30, 2020). The Company also owns a 100% interest in the Desert Eagle Vanadium project located in the historic Henry Mountains Mining District in SE Utah. The area has seen extensive historic vanadium and uranium mining and is close to Anfield Energy Inc's Shootaring Canyon mill.
To ensure a safe workplace environment that protects the health and safety of employees and contractors, K 9 Gold follows all federally and provincially mandated and recommended guidelines regarding Covid 19.
Chris M. Healey, P.Geo, a Director of K9 Gold Corp., is the qualified person under NI 43-101 guidelines who is responsible for the technical content of this release, and consents to its release.
Toll Free Number: (833) 434-GOLD (4653)
Kosta Tsoutsis
Director
K9 Gold Corp.
email: [email protected]
Telephone: 604 808-9134
Brian Morrison
Chief Financial Officer and Director
K9 Gold Corp.
email: [email protected]
telephone: 604 312-6910
The Company is listed on the TSX Venture Exchange.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding K9's intention to continue to identify potential transactions and make certain corporate changes and applications. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits K9 will obtain from them. These forward-looking statements reflect managements' current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause actual results to differ materially from those expressed or implied by the forward-looking statements, including K9's inability to identify transactions having satisfactory terms or at all and the results of exploration or review of properties that K9 does acquire. These forward-looking statements are made as of the date of this news release and K9 assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements, except in accordance with applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/80512