Golden Sky Minerals Provides Corporate Update and Grant Stock Options

VANCOUVER, British Columbia, June 02, 2020 (GLOBE NEWSWIRE) -- Golden Sky Minerals Corp. (AUEN.V) is pleased to provide a corporate update regarding the status of the company, its current assets, and plans for the 2020 season.

Amidst the COVID-19 pandemic, the company remains optimistic for the 2020 season and beyond. The Golden Sky Minerals (“Golden Sky”) corporate office in downtown Vancouver is currently closed, with all staff working from home. Despite this, operations are proceeding as effectively as possible and the company has been utilizing this time to prepare for field work to begin this summer.

With over $2M cash in the bank and <10M shares outstanding, Golden Sky Minerals is strongly positioned to continue developing its current assets while exploring for future acquisitions.

Yukon Assets

The company’s three core assets in Yukon Territory, the Lucky Strike, Hot Spot, and Bull’s Eye properties, remain in good standing. All three properties are 100% owned by Golden Sky with no underlying payments or royalties.

The Lucky Strike property, located in the heart of the Yukon’s White Gold District, hosts a 10 km trend of gold mineralization. Five gold-bearing zones have been identified on the property to date. Only one of these, the Monte Carlo zone, has been drilled, yielding notable intercepts such as 5.36 g/t Au over 22 m in the near-surface oxide zone, and 4.55 g/t Au over 7.6 m in a deeper sulphide zone (see November 13, 2018 news release). The Lucky Strike property is situated 25 km north of Newmont Goldcorp’s Coffee Gold deposit (Probable Reserve of 2.16 M oz Au) and 15 km east of White Gold Corp.’s Golden Saddle deposit (Indicated resource of 1.04 M oz Au). White Gold Corp. recently announced a $6M private placement for exploration in the White Gold District, with the maintained interest of Agnico Eagle Mines Ltd. and Kinross Gold Corp. as well as new involvement from Eric Sprott (see May 15, 2020 White Gold news release).

To the west of Lucky Strike, and along the Yukon-Alaska border, is the Hot Spot property, a newly-discovered gold occurrence in an underexplored area of the Yukon. Situated along the Big Creek Fault, the Hot Spot property hosts a 1.7-kilometer-long mineralized structure with gold-in-soil values up to 4.1 g/t Au and a pathfinder element signature indicative of a low-sulphidation epithermal system. A short trenching program in 2018 returned values of 0.42 g/t Au over 44 m (see September 10, 2018 news release). The Hot Spot property is located 25 km southeast of the Taurus Cu-Mo-Au porphyry deposit (located in Alaska) which has an Inferred resource of 68.3 million tonnes grading 0.275% Cu, 0.032% Mo, and 0.166 g/t Au. This area in Alaska is currently being explored as a joint venture between Kenorland Minerals Inc. and Freeport McMoRan Inc. (see Kenorland Minerals website).

The Bull’s Eye property is located 50 km south of the Coffee Gold deposit in a previously unrecognized gold district. Although only 5 days of field work have been completed to date, this 2017 program successfully delineated an open-ended 200 m x 250 m soil geochemical anomaly, with gold-in-soil values up to 0.22 g/t Au. Rock grab samples assayed up to 0.25 g/t Au. The Bull’s Eye property is adjacent to K2 Gold Corp.’s Wels Gold project which has yielded notable drill intercepts of 2.37 g/t Au over 28.5 m and 0.76 g/t Au over 97.5 m (see the K2 Gold Corp. website for more information on their Wels Gold project).

2020 Field Work

Funding is currently in place for field work to be done in the 2020 season. Golden Sky is preparing exploration programs at its Hot Spot and Bull’s Eye properties. Class 1 Notification have been approved for both the Hot Spot and Bull’s Eye projects, and the Class 3 exploration permit at Lucky Strike remains in good standing.

Field work will be done within the regulations and guidelines of the federal and territorial governments, particularly in regard to COVID-19. Current work plans are for a bedrock trenching program at the Bull’s Eye property and an exploratory drill program at the Hot Spot property. More news will follow when plans are finalized for these exploration programs.

Stock Options Grant

Subject to all regulatory approvals, Golden Sky has granted 600,000 incentive stock options to directors, officers, and certain consultants of the company. Options issued pursuant to this grant to directors and officers shall vest immediately; options issued to certain consultants shall vest for a period of 24 months with 1/8 vest each 3 months. All options have a term of 5 years and are exercisable at $0.28.

Message from John Newell, President and CEO:

“With a strong corporate share structure, cash in the bank, and excellent Yukon assets, myself and the Golden Sky team are excited to get back into the field and work these underexplored new discoveries. We are also continuing the evaluation process for new acquisitions outside of the Yukon Territory. Coming out of the pandemic, the future looks brighter than ever for Canadian gold exploration.”

Other

Carl Schulze, P. Geo., Consulting Geologist with Aurora Geosciences Ltd, is a qualified person as defined by National Instrument 43-101, for Golden Sky's Yukon exploration projects, and has reviewed and approved the technical information in this release.

ON BEHALF OF THE BOARD
John Newell, President and Chief Executive Officer

For new information from the Company's programs, please visit Golden Sky's website at www.GoldenSkyMinerals.com or contact John Newell by telephone (604) 568-8807 or by email at [email protected] or [email protected].

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.

Forward-Looking Statements

Statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” (collectively, “Forward-Looking Information”) within the meaning of applicable Canadian securities legislation. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as “anticipates”, “expects”, “understanding”, “has agreed to” or variations of such words and phrases or statements that certain actions, events or results “would”, “occur” or “be achieved”. Although Golden Sky has attempted to identify important factors and risks that could affect Golden Sky and may cause actual actions, events or results to differ materially from those described in Forward-Looking Information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended, including, without limitation: inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with Golden Sky’s expectations; accidents, equipment breakdowns, title and permitting matters; labour disputes or other unanticipated difficulties with or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on its projects; that Golden Sky may not be able to confirm historical exploration results and other risks set forth in Golden Sky's public filings at www.sedar.com. In making the forward-looking statements in this news release, Golden Sky has applied several material assumptions, including the assumption that general business and economic conditions will not change in a materially adverse manner. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. Except as required by law, Golden Sky does not assume any obligation to release publicly any revisions to Forward-Looking Information contained in this news release to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.