GFG Resources Inc. reports continued high-grade gold assay results from its recently completed 17-hole 2022 Phase 2 drill program at the Montclerg Gold Project, located 40 kilometres (“km”) east of Timmins, Ontario. Today's results are from eight drill holes from the MC Central target and demonstrate strong continuity and continued expansion of the gold system. During the Phase 2 drill program, the Company completed a total of 17 holes (3,541 m) on the Goldarm Property located east of Timmins, Ontario.

The Phase 2 drill program was designed to complete infill drilling to advance Montclerg towards resource, step-out holes to grow the Montclerg gold system and to begin testing high-priority gold targets within the Goldarm Property such as the Aljo Gold Mine target (“Aljo”). Of the 17 holes completed, 14 holes were completed at Montclerg and three holes at Aljo. To date, GFG has received 12 holes from the 17-hole program and anticipates announcing the remaining holes during the first quarter of 2023.

In 2023, the Company will focus on growing the Montclerg gold deposit and testing five high-priority gold and gold-copper targets within its Goldarm Property. Starting in the first quarter, the Company plans to begin a 3-4,000 m drill program at Montclerg and Goldarm Property. For the year, the Company plans to complete approximately 8-10,000 m of drilling at multiple permitted and drill ready targets on the Goldarm Property.

In addition to the planned drill programs, GFG will continue to complete extensive surface exploration across the Goldarm Property which covers 30 km of the Pipestone and North Pipestone deformation zones. MTC-22-033 was a step-out of MTC-21-001, testing the western continuity of the Lower Footwall Zone. At shallow depths, the Upper Main Zone was intersected in fractured and brecciated, felsic volcanics with grades of 2.03 g/t Au over 1.8 m and 0.59 g/t over 5.0 m. MTC-22-036 was a shallow hole designed to test the up-dip extension of hole MTC-21-005 and MTC-22-035 that returned 4.82 g/t Au over 26.0 m and 9.85 g/t Au over 16.0 m respectively in the Upper Footwall Zone(Figure 4).

The hole successfully intersected a broad zone of mineralization grading 6.67 g/t Au over 6.0 m including 10.59 g/t Au over 3.5 m; demonstrating up-dip continuity. The mineralized zone is hosted in massive and brecciated, mafic volcanics with strong ankerite alteration with quartz-carbonate veining of up to 10%. Sulphide disseminations and stringers range from 1 to 10% pyrite and trace to 2% arsenopyrite.

MTC-22-037 was a step out hole up-dip of MTC-22-030 to test the continuity of the Upper Footwall Zone. The zone returned 2.47 g/t Au over 8.3 m including 9.19 g/t Au over 1.8 m confirming dip and strike continuity. The mineralized zone is hosted in moderate to pervasive ankerite-sericite altered, brecciated, mafic volcanic rocks with clusters of quartz veining up to 10% of the rock.

Sulphide disseminations and stringers range from trace to 10% pyrite and trace to 2% arsenopyrite. TC-22-038 was designed as an easterly step out to MTC-22-030 that returned 3.40 g/t Au over 15.0 m in the Upper Footwall Zone. The hole returned 2.8 g/t Au over 3.0 m in ankerite-altered, mafic volcanics.

Quartz and quartz-carbonate veining comprised up to 25% of the interval. Trace pyrite disseminations and stringers are present through the interval. MTC-22-039 was drilled to test the easterly strike extent of Upper Footwall Zone in an untested area to the east of historical drill hole 06-Mat-01.

This hole confirmed eastern continuity and returned 4.02 g/t Au over 10.3m. The mineralized zone is associated with patches of strong sericite, ankerite alteration and strong silica alteration as vein halos. Quartz veining ranges from trace to 60% of host rock.

Sulphide disseminations and stringers range from trace to 15% pyrite and trace to 15% arsenopyrite. MTC-22-041 was drilled as an infill hole to test the Upper Footwall Zone between MTC-22-036 and MTC-22-037. This zone returned 3.29 g/t Au over 4.8 m including 8.38 g/t Au over 1.1 m; demonstrating continuity.

The interval is hosted in strongly to pervasively ankerite-altered, brecciated, mafic volcanics with quartz veins ranging from trace to 90%. Sulphide disseminations and stringers range from trace to 8% pyrite and trace to 4% arsenopyrite. MTC-22-042 was drilled to test the strike and depth continuity of the Lower Footwall Zone.

The Lower Footwall Zone is hosted in sericite-ankerite-altered, mafic stratigraphy and returned 8.46 g/t Au over 5.0 m including 16.40 g/t Au over 2.0 m. This is the broadest and highest-grade interval returned to date from the Lower Footwall Zone. The hole had stacked intervals of mineralization associated with the Lower Main and Lower Footwall Zones. The Lower Main Zone was intersected at three separate intervals including intervals of 1.07 g/t Au over 36.1 m and 2.67 g/t over 2.5 m. The two intersections are hosted in silica-sericite altered and brecciated, felsic volcanics with trace to 3% quartz and quartz-carbonate veining.

Sulphides range from trace to 5% pyrite and trace to 15% arsenopyrite with higher sulphide content proximal to veins within the brecciated host rock. Quartz and quartz-carbonate veining comprises trace to 30%. Sulphide disseminations and stringers range from 2 to 20% pyrite and trace to 15% arsenopyrite.