TSX-V: KTO
Investor Webinar Thursday December 3 at 9:00AM PST
VANCOUVER, BC, Nov. 30, 2020 /CNW/ - K2 Gold Corporation
("K2" or the "Company") (TSX-V: KTO) (OTCQB: KTGDF)
(FRANKFURT: 23K) is pleased to announce that significant
high-grade oxide gold has been intercepted in the first three of
the recently completed 17 hole, 2,540-meter program at the
Company's 100% owned Mojave
property ("Mojave"), Southern
California. Drill hole DF20-002 (located 96 meters
from the nearest previous drill hole) intercepted 86.9 meters of
4.0 g/t gold, including 45.7 meters of 6.7 g/t gold from surface.
The gold mineralization shares characteristics of both Carlin
and epithermal type systems and is hosted within fractured,
silicified and altered Triassic age calcareous siltstone,
sandstones and shales.
Highlights:
- Preliminary Phase 1 drill results from first three reverse
circulation ("RC") holes at Mojave:
-
- DF20-001 – 51.8 meters of 1.2 g/t gold from surface,
including 18.3 meters of 3.1 g/t gold
- DF20-002 – 86.9 meters of 4.0 g/t gold from surface,
including 45.7 meters of 6.7 g/t gold
- DF20-003 – 62.5 meters of 1.4 g/t gold from 3.1 meters,
including 18.3 meters for 3.2 g/t gold
- All three holes were drilled at the Dragonfly zone at site
DF-1
- Drilling confirms historical mineralization reported by BHP and
demonstrates strong continuity along strike
- Confirms potential for high grade, near-surface, oxide gold
mineralization
- Assays are pending for 14 additional holes
Note: the spatial distribution is not well understood at this
time and the true width is unknown.
Please CLICK HERE to view all figures related to
this news release.
John Robins, Chairman of K2
commented, "We are very encouraged by these preliminary drill
results from the Phase 1 program at Mojave which confirm the presence of wide
intercepts of high-grade oxide gold starting at surface.
Multiple targets have been identified over a large area at
Mojave, and we look forward to
reporting the balance of our Phase 1 results and to planning the
second phase of drilling."
Stephen Swatton, President and
CEO of K2 added, "Our drilling has expanded upon the work completed
by BHP in 1997, with this first set of drill holes positioned 96
meters from the nearest historical drill hole. The initial
drill holes of this campaign were targeted beneath a historical
trench that returned 4.2 g/t gold over 42.7 meters. In
addition to the pending assay results from the remaining fourteen
drill holes, K2 is awaiting results from regional exploration
sampling at Upland Valley, Gold Valley, and Broken Hill."
Live Investor Webinar
K2 Gold will host a live
investor webinar to discuss the Mojave results on Thursday, December 3, 2020 at 9:00AM Pacific Time (12:00PM Eastern Time). Click
HERE to register for the webinar. A recording of
the webinar will be posted to the Company's website following the
live broadcast.
Phase 1 Drill Results
Assay results have been received
for the first three RC holes on the Dragonfly target (DF20-001 to
003). All three holes were drilled from Site DF-1 and were
collared approximately 96m south of
historic BHP holes CM97 3 & 4. DF20-001, 002, and 003 were
drilled beneath and adjacent to a historic BHP trench that returned
4.2 g/t Au over 42.7m. This
drill pad was located beside an outcrop of strongly silicified
conglomerate with stockwork quartz veining with historic chip
samples up to 22.53 g/t Au. Hole DF20-001 & 002 were
drilled at 70o azimuth and dips of -50o and
-80o, respectively. Hole DF20-003 was drilled at a
25o azimuth and -65o dip to provide
additional information on the geometry of mineralization for
modelling efforts. A fourth hole (DF20-004) was also drilled
from the site and assays are currently pending but expected within
the next 2 weeks.
All three holes intersected a broad zone of strong to moderate
alteration starting at or near surface. Multiple zones of
mineralization occur within the alteration envelope with
additional, discreet, zones of mineralization occurring further
down hole. Assay values for individual samples ranged from
trace to 28.3 g/t Au. The reported intervals are drilled
widths and there is not currently enough data to accurately
determine true thickness.
A summary of the intercepts is below:
Table 1: Dragonfly Significant Intercepts
Hole
ID
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
(g/t)
|
DF20-001
|
0.00
|
18.29
|
18.29
|
3.10
|
And
|
42.67
|
51.82
|
9.14
|
0.70
|
And
|
102.11
|
108.20
|
6.10
|
1.11
|
Envelope of
Alt.
|
0.00
|
51.82
|
51.82
|
1.23
|
DF20-002
|
0.00
|
45.72
|
45.72
|
6.68
|
Including
|
9.14
|
33.53
|
24.38
|
10.93
|
And
|
67.06
|
86.87
|
19.81
|
2.18
|
And
|
161.54
|
164.59
|
3.05
|
1.02
|
Envelope of
Alt.
|
0.00
|
86.87
|
86.87
|
4.02
|
DF20-003
|
3.05
|
21.34
|
18.29
|
3.21
|
And
|
53.34
|
65.53
|
12.19
|
2.29
|
And
|
109.73
|
120.40
|
10.67
|
0.86
|
And
|
134.11
|
146.30
|
12.19
|
1.24
|
Envelope of
Alt.
|
3.05
|
65.53
|
62.48
|
1.40
|
Table 2: Drill hole locations
Hole
ID
|
Drill
Site
|
UTM_E
|
UTM_N
|
Elv
(m)
|
Azimuth
|
Dip
|
Depth(m)
|
DF20-001
|
DF - 1
|
433014
|
4039153
|
2200
|
70
|
-50
|
196.60
|
DF20-002
|
433014
|
4039153
|
2200
|
70
|
-80
|
201.17
|
DF20-003
|
433014
|
4039153
|
2200
|
25
|
-65
|
174.35
|
DF20-001
Hole DF20—001 returned 3.10 g/t Au
over 18.29m from surface and 0.70 g/t
Au over 9.14m from 42.67m depth. Both these intercepts occur
within the broader envelope of alteration that averaged 1.23 g/t Au
over 51.82m. An additional zone
of 1.11 g/t Au over 6.10m from
102.11m depth was also intercepted
and is interpreted as a subparallel zone/splay.
DF20-002
Hole DF20—002 returned 6.68 g/t Au
over 45.72m from surface, including
10.93 g/t Au over 24.38m from
9.14m depth, and 2.18 g/t Au over
19.81m from 67.06m depth. Both these intercepts occur
within the broader envelope of alteration that averaged 4.02 g/t Au
over 86.87m. An additional zone
of 1.02 g/t Au over 3.05m from
161.54m depth was also intercepted
and is interpreted as a subparallel zone/splay.
DF20-003
Hole DF20—003 returned 3.21 g/t Au
over 18.29m from 3.05m depth and 2.29 g/t Au over 12.19m from 53.34m
depth. Both these occur within the broader envelope of
alteration that averaged 1.40 g/t Au over 62.48m. Additional zones of 0.86 g/t Au
over 10.67m from 109.73m depth and 1.24 g/t Au over 12.19m from 134.11m
depth were also intercepted and are interpreted as subparallel
zones/splays.
The mineralization occurs within zones of strong quartz-sericite
alteration within a sequence of calcareous conglomerate, siltstone,
and sandstone and is associated with elevated As, Hg, Pb, Sb, Se,
Te, & Tl (+/- Cu & Zn). The strongest intervals are
associated with decalcification, silicification, quartz veining,
and strong iron oxide development (limonite-hematite), and the
current interpretation is that the mineralization occurs along a
series north trending, west dipping, extensional fault-fracture
zones between the East and West Conglomerate Mesa faults.
The drilling confirms the historic mineralization reported by
BHP; demonstrates strong continuity of the mineralization along
strike; and confirms the potential for high-grade (>5 g/t Au)
mineralization on the target. It should be noted, that this
interpretation indicates that mineralization intersected in
historic drilling on CM97-1 & 2 to the south of Site DF-1 and
in rock samples to the north of CM97-3 & 4 are along, separate,
en echelon, extensional zones.
Regional Context
The drill results reported in this
news release and those that will be reported in subsequent releases
will be from an area of known high grade mineralization that was
partially drilled (35 RC holes) by BHP and Newmont in the 1980's
and 1990's. The area of interest in this drill program is
approximately 3km by 1km. The geology and geochemistry of the area
indicate gold mineralization developed in a high-level setting and
displays characteristics of both Carlin and epithermal type
systems.
Tribal Engagement
The project is located on lands
believed to have been used by families and bands of the Paiute and
Shoshone people for hunting and
gathering. As the area is at approximately 7000-ft in elevation,
the nature of high altitude use of the Inyo Mountains by these
people was studied. Based on the results of these studies, reports,
field surveys and inventories, the site is considered to have low
archaeological sensitivity (Class III Inventory, May 2016, as amended). However, as part of K2's
voluntary program of engaging and informing neighboring tribes of
the activities at the site, K2 engaged tribal historic and cultural
professionals from the Lone Pine Paiute-Shoshone Tribe and the
Timbisha (Shoshone) Tribe to
actively monitor the drilling project.
Permitting Considerations
The Company has engaged
third party biological consultants to review the Eastern project
area under consideration for the second phase of drilling. There
are no known floral or faunal species that have been identified in
the area of proposed drilling that could prevent K2 from continuing
its exploration program.
Next Steps
K2 expects to release further news in the
coming weeks on the Mojave
project, including:
- Assay results from remaining 14 RC holes from the Dragonfly and
Newmont target areas
- Assay results from 422 rock samples collected on the recently
identified Upland Valley and Gold Valley target areas
- Results from additional prospecting samples and geologic
mapping on Gold Valley, Dragonfly, Newmont, and Broken Hill target
areas
- Final submission of permitting documents for an expanded second
phase of drilling to the Bureau of Land Management
K2 wishes to acknowledge the support of local businesses and
their employees from the town of Lone
Pine which greatly assisted the smooth running of the
project. The Company remains committed to operating safely
and making a positive impact on the communities in which it
operates.
Assay Methodology & QA/QC
The analytical work on
the Mojave project is being
performed by MSALABS an internationally recognized analytical
services provider, at its laboratory in Langley, British Columbia. All rock and
drilling samples will be prepared using procedure PRP-910 (dry,
crush to 70% passing 2mm, riffle split off 250g, pulverize split to
better than 85% passing 75 microns) and analyzed by method FAS-111
(30g fire assay with AAS finish) and IMS-130 (0.5g, aqua regia
digestion and ICP-AES/MS analysis). Any samples containing
>10g/t Au will be reanalyzed using method FAS-415 (30g Fire
Assay with gravimetric finish). Samples containing >100
ppm Ag and/or >1% Cu, Pb, & Zn will be reanalyzed using
method ICF-6 (0.2g, 4-acid digest and ore grade ICP-AES
analysis).
The reported work was completed using industry standard
procedures, including a quality assurance/quality control ("QA/QC")
program consisting of the insertion of certified standard, blanks
and duplicates into the sample stream.
Qualified Person
Jodie
Gibson, Vice President of Exploration and a Qualified Person
under National Instrument 43-101, has reviewed and approved the
technical information in this release.
About K2
K2 is a well-financed gold and silver
exploration company with approximately C$2M and projects in SW
USA and the Yukon. In
the USA, the Company is
represented by its 100% subsidiary, Mojave Precious Metals Inc.
The Company is focused on the Mojave property in California, a 5,830 hectare oxide gold project
with base metal targets. The location of Mojave enables the Company to have year-round
news flow on multiple previously recognized surface gold targets
that have been successfully drilled in the past by majors BHP and
Newmont. Besides affording immediate drill targets based on
the Company's soil data integrated with LiDAR and Worldview-3 data,
the property also has undrilled locations with gold enriched
historical trench results including one at the East zone which
recorded 8.4 g/t gold over 25.6m (see
October 30, 2013 news release from
Great Bear Resources Ltd.).
On behalf of the Board of Directors,
"Stephen Swatton"
President and CEO
K2 Gold Corporation.
K2 Gold Corporation is a member of Discovery Group based in
Vancouver, Canada. For more
information please visit: discoverygroup.ca.
Cautionary Statement on Forward-Looking Statements
This news release contains forward-looking statements that are
not historical facts. Forward-looking statements involve
risks, uncertainties and other factors that could cause actual
results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
statements, including statements regarding the exploration program
at Mojave, including results of
drilling, and future exploration plans at Mojave. Factors that could cause actual
results to differ materially from these forward-looking statements
include, but are not limited to, variations in the nature, quality
and quantity of any mineral deposits that may be located, the
Company's inability to obtain any necessary permits, consents or
authorizations required for its planned activities, and the
Company's inability to raise the necessary capital or to be fully
able to implement its business strategies. The reader is
referred to the Company's public disclosure record which is
available on SEDAR (www.sedar.com). Although the Company
believes that the assumptions and factors used in preparing the
forward-looking statements are reasonable, undue reliance should
not be placed on these statements, which only apply as of the date
of this news release, and no assurance can be given that such
events will occur in the disclosed time frames or at all.
Except as required by securities laws and the policies of the TSX
Venture Exchange, the Company disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of any
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful, including any of the
securities in the United States of
America. No securities of the Company have been or
will, in the foreseeable future, be registered under the United
States Securities Act of 1933 (the "1933 Act") or any state
securities laws and may not be offered or sold within the United States or to, or for account or
benefit of, U.S. Persons (as defined in Regulation S under the 1933
Act) unless registered under the 1933 Act and applicable state
securities laws, or an exemption from such registration
requirements is available.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE
EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS RELEASE
SOURCE K2 Gold Corporation