VANCOUVER, BC / ACCESSWIRE / February 11, 2020 / Sky Gold Corp. (TSXV:SKYG)(OTC:SRKZF)(“Sky Gold” or the “Company”) is pleased to announce the acquisition of a second gold property known as the “Virginia Property“, in Central Newfoundland, contiguous to the north-eastern portion of the Queensway Gold Project, owned by New Found Gold Corp. (“New Found Gold”). The Virginia property is approximately 5.7 kilometers north-east of New Found Gold’s drill hole (“NFGC-19-01”) which intersected 92.86 g/t Au over 19.0 meters (see Mexican Gold Corp., Press Release dated January 26, 2020)*.
The Virginia Property comprises 100 hectares and is also located 8.2 kilometers north-east of the Company’s recently acquired Mustang Eastern Property (see SKYG Press Release January 31, 2020), The property is located 3.3 kilometers north-east of the village of Glenwood, which is situated on the Trans-Canada Highway, 25 kilometers west of an international airport in Gander. The southeast corner of the Virginia property is adjacent to the Gander River and accessed by trails from the Salmon Pond road.
The Virginia property hosts the “Virginia Holdings” Prospect (National Mineral Inventory Number: 002E/02/Au 006), located approximately 0.6 km north of the Gander River. The prospect consists of quartz veining developed over a 35 meter wide zone within sheared gabbro and graphitic shale (main shear) (Manor Resources Inc., press release, 1992). A second shear zone is hosted in gabbro is developed 35 meters north of the main shear.
Anomalous soil and till samples, followed by trenching led to the discovery in subcrop. Grab samples collected from the main shear reportedly assayed up to 9.0 grams per tonne gold (g/t Au) and up to 109.6 g/t Au from the sheared gabbro (Manor Resources Inc., press release, 1992).*
A larger property was initially explored by Noranda Exploration Company Limited, but no record of this assessment work was submitted. Over the area from 1988 to 1992, AVIP Resources (later Manor Resources Inc.) conducted a lake sediment geochemical survey, till sampling and panning, chemical and petrographic analyses of pan concentrates, prospecting, geological mapping, geophysical surveys (magnetic and VLF), diamond drilling and trenching (source: W.A. MacPherson Associates Inc., 1993 assessment file GSB# NFLD/2244). On, or near, the current Virginia property, four diamond drill holes were reportedly completed, comprising 278.7 meters (average depth 70 meters), with the best intercept being 0.26 g/t Au over 0.74 meters. Drill holes were directed at magnetic and electromagnetic (EM) anomalies.
* Gold values on adjacent properties in similar rocks, and assays based on historical work, are not representative of the mineralization on the property, have not been verified, and should not be relied upon.)
President, Mike England states: “The acquisition of the Virginia property increases the Company’s land holdings in this active, emerging gold district, fueled by the recent success of New Found Gold’s drilling on the Queensway Gold Project. The Company is actively reviewing additional properties for acquisition in the district, through our network established in Newfoundland.”
To earn a 100-per-cent interest in the “Virginia Property” from an arms-length party, the Company will make a one-time payment of $20,000 cash, the issuance of 400,000 common shares of the company. The underlying vendor retains a 1.5 per-cent net smelter royalty (NSR), with an option by Sky Gold to purchase 0.5% for $0.5 million at any time.
This transaction is subject to TSX Venture Exchange approval.
Catherine Fitzgerald, P.Geo., a Qualified Person under National Instrument 43-101, is the Qualified Person responsible for reviewing and approving the technical contents of this news release as they pertain to the Newfoundland projects.
About Sky Gold Corp.
Sky Gold Corp. is a junior mineral exploration company engaged in acquiring and advancing mineral properties in Canada and the USA. The Company owns the Evening Star property, located 12 kilometres southeast of Hawthorne, NV, which is prospective for gold mineralization and carbonate replacement deposits (CRD) base and precious (silver and gold) mineralization; and several properties in Newfoundland, Canada, that are prospective for gold mineralization.
ON BEHALF OF THE BOARD
Mike England, CEO&DIRECTOR
FOR FURTHER INFORMATION PLEASE CONTACT:
Toll Free: 1-888-945-770
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: This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward -looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at WWW.SEDAR.COM).
SOURCE: Sky Gold Corp.
View source version on accesswire.com: