EXTENDS PINE GROVE MINERALIZATION BEYOND RESOURCE SHELL
Results from the recent drill program on Goldcliff Resource Corp.'s (GCN.V) Wilson patented claims at Pine Grove, Nevada, have extended resource grade gold mineralization beyond the limits of the existing resource shell. The drilling also discovered a new, shallow zone of resource grade mineralization in what was previously assigned as waste.
Highlighting these results is hole WL-114 which returned 0.154 opt over 50 feet (5.28 g/t over 15.24 metres) starting at 205 feet, and including two separate 5-foot (1.5 metre) intervals grading 0.505 (17.3 g/t) and 0.604 opt (20.7 g/t) Au. The drilling also confirmed a new, shallow dipping, upper gold zone hosted in granodiorite, the Pine Grove host rock. This new gold zone appears open down dip for up to 400 ft. northward towards an old mineralized hole (WS-17) drilled by Teck Resources in 1991. Details of this and the other holes are contained in the table below.
Gold grades encountered in this new upper zone and in other zones are consistent with the resource grade. The Wilson patented claims host a measured and indicated resource of 1,514,000 tons grading 0.035 opt gold at a cut-off grade of 0.007 opt gold. Inferred resources are 154,000 tons grading 0.042 opt gold. When combined with the resources outlined on the Wheeler patented claims, the Pine Grove project hosts measured and indicated resources of 3,373,000 tons grading 0.04 opt gold. (Amended & Restated Technical Report, February 4, 2015 by Telesto).
Five of the drill holes (WL-105, 107, 108, 112, & 117) outline the new upper gold zone. Details of the intercepts for these and other holes are contained in the table below. A drill hole location map is available for viewing on the Company website at www.goldcliff.com/projects/pine-grove/drilling/. This new zone remains open to the north northeast and trends onto unpatented lode claims 100% owned by the Pine Grove joint venture.
Significant Drill Hole Intercepts Hole No. Angle From (ft.) To (ft.) Int. (ft.) Gold opt Int. (m) Gold (g/t) WL-105 -90degree 90 120 30 0.062 9.14 2.06 WL-107 -90degree 120 150 30 0.042 9.14 1.44 255 280 25 0.046 7.62 1.54 355 380 25 0.089 7.62 3.06 WL-108 -90degree 85 125 40 0.038 12.19 1.28 WL-111 -90degree 175 200 25 0.071 7.62 2.59 250 275 25 0.034 7.62 1.15 WL-112 -90degree 60 110 50 0.030 15.24 1.03 WL-114 -90degree 205 255 50 0.154 15.24 5.28 WL-117 -90degree 55 95 40 0.017 12.19 0.58 1991 Teck Hole WS-17 -90degree 205 250 45 0.030 13.72 1.03
Thirteen vertical and one angle reverse circulation drill holes were completed from late October to early December 2016, for cumulative footage of 6,962.5-feet (2,132.6 metres). The angle hole was drilled in the southeast corner of the patented claims for geochemical and geological purposes and returned no significant values. The remaining (vertical) holes were drilled on approximately 100 ft. (30.5 m) centers along two step-out fences along the northern boundary of the Wilson patented claim. The Wilson patented claims are surrounded by unpatented lode claims which are also part of the Pine Grove joint venture.
Lincoln Mining Corp, project operator, is preparing for submission to the US Forest Service a permit application for further drilling on the unpatented lode claims. The drilling was supervised by Lincoln Mining Corp, operator of the Pine Grove joint venture. Goldcliff is earning a 40% joint venture interest in the Pine Grove project by spending US$ 1,400,000 over three years.
The current block model for the Wilson mineralization suggests a substantial pre-strip is required to reach mineralization. The new, near surface gold zone is important because it indicates that what was previously assigned as waste now contains mineralization. Further expansion of this new zone to the north northeast could have important implications for expanding the Wilson resource and reducing the pre-strip.
Gold mineralization at the Wilson deposit occurs along low angle structures and on the contacts of low angle intrusive dikes in the host granodiorite. Accordingly, gold values are concentrated in a series of stacked low angle sheets. The stacked gold zones are 25 to 50 ft. (7.6 to 15.2 m) in thickness and begin as shallow as 55 ft. (16.8 m). Results of the recent drilling are consistent with this style of mineralization.
There is a 2.5% NSR royalty on the Wilson patented claims. The same land owner also holds a 5% NSR on the surrounding unpatented claims. With the recent execution of a Definitive Agreement, Goldcliff has purchased for $25,000, a six-year option to buy down the NSR to 3% at a rate of $75,000 per percentage point for three years, and $150,000 per percentage point for an additional three years.
Jeffery Wilson, Vice President of Exploration of Lincoln Mining Corporation, and a Qualified Person under NI 43-101 has reviewed, prepared, and approved the scientific technical disclosure contained in this news release.