TSX-V: KTO
VANCOUVER, BC, May 13, 2021 /CNW/ - K2 Gold Corporation
("K2" or the "Company") (TSXV: KTO) (OTCQB: KTGDF)
(FRANKFURT: 23K) is pleased to report preliminary results
from its 2021 Exploration Program from the Company's Mojave project in Southern California. A
total of 279 prospecting chip and grab samples were collected on
the Mojave's Eastern Target Area:
Gold Valley, Dragonfly, Remi, Newmont, and Flores. Individual
assays for the samples returned up to 23.4 g/t gold and highlights
include:
Highlights:
- Dragonfly: Discovery of new, subparallel, zone of
mineralization with rock samples up to 14.5 g/t Au.
- Newmont: Extended strike extent of Newmont fault by
additional 350m. The strike extent of
the Newmont zone is now over 1.1km.
- Flores: Discovery of two EW and one NW oriented zone of
mineralization with assays up to 23.4 g/t Au, 5.34 g/t Au, and 11.1
g/t Au; respectively.
"We are very pleased to report the discovery of a new,
sub-parallel zone of gold mineralization approximately 300 meters
west of last year's drill program," stated Stephen Swatton, President and CEO of K2.
"These results continue to highlight the potential for near
surface high-grade oxide gold across multiple zones. We look
forward to advancing Mojave to the
next phase of drilling later this year upon receipt of the
necessary approval documents from the Bureau of Land
Management."
Please CLICK HERE to view all figures related to this news
release.
Eastern Target Area Overview
The Eastern Target Area consists of seven sediment-hosted, oxide
gold, targets over a 5km north-south trend. The mineralization is
associated with sericite-clay alteration, silicification,
decalcification, and strong iron-oxide development within a
sequence of Permian-Triassic sediments consisting of limestone,
siltstone, sandstone, conglomerate, and minor shale. The
mineralized zones are focused along lithologic contacts and
fracture/fault networks adjacent to a series of north-northwest
trending, west dipping, normal-sinistral faults and splays
comprising the Conglomerate Mesa Fault System (CMFS). Locally, on
the southern portion of the mineralized trend, the CMFS overprints
an early set of E-W oriented structures that were also reactivated
and mineralized.
A total of 279 rock chip and grab samples were collected across
the Eastern Target area as part of an ongoing geologic mapping and
geochemical sampling program. Assays for the samples returned
values from trace to 23.4 g/t Au. The sampling focused on
five target areas including: Gold Valley, Dragonfly, Remi, Newmont,
and Flores, as discussed below:
Gold Valley
Gold Valley is located along the northern projection of the
CMFS, approximately 600m north of the
Dragonfly target. Twenty samples were collected on the target with
the most significant results (up to 0.297 g/t Au) occurring within
faulted silicified and brecciated Triassic conglomerate, sandstone,
and limestone units. The anomalous gold results demonstrate
continuity of the mineralized system north from the Dragonfly.
Additionally, they occur in less favorable lithologic units higher
in the stratigraphic sequence indicating potential for stronger
mineralization at depth, particularly at the unconformity of
Triassic and Permian sediments.
Dragonfly
The Dragonfly is located 600m
south of Gold Valley and consists of approximately 500m of structurally controlled alteration and
mineralization that consistently returns surficial samples >1
g/t Au and has anomalous mineralization extending over 1km on trend
to the south towards the Remi target. Recent RC drilling on the
Dragonfly by the company returned significant results including
DF20 – 002: 86.9m of 4.0 g/t Au;
incl. 45.7m of 6.7 g/t Au and
DF20-004: 30.5m of 7.2 g/t Au; incl.
15.2m of 11.1 g/t Au; both from
surface.
A total of 82 samples were collected at Dragonfly and the
sampling focused on evaluating the surficial footprint of
alteration and mineralization associated with known mineralized
zones and to evaluate under explored portions of the target.
Highlights of the sampling include:
- Discovery of a new, subparallel, trend of alteration and
mineralization 300m west of the main
Dragonfly zone with samples up to 14.5 g/t Au. Follow up sampling
in progress.
- Identification of an approximately 30m zone of strongly sericite-clay altered
siltstone with localised silicification on the northern trace of
Dragonfly, 360m north of historic
drilling. Seven chip samples across the area assayed from 0.044 –
13.6 g/t Au; averaging 3.06 g/t Au.
- Identification of multiple, previously unsampled, altered and
mineralized structural zones with anomalous gold up to 1.8 g/t Au
over a 1.5km trend; extending from the Remi target on the south to
the Gold Valley target to the north.
At least three primary segments of the CMFS transect the
Dragonfly target with numerous 2nd – 3rd
order splays forming a 500m wide
corridor of alteration and mineralization traceable over 1.5km
south to the Remi target and at least 900m north to the Gold Valley target. Strong
silicification (jasperoid) occurs along fault traces with localised
quartz-carbonate veining, carbonate blowouts, and sericite-clay
alteration extending up to 20m from
individual structures. The strongest mineralization occurs at
lithologic contacts and is associated decalcification and strong
hematite development along NNW oriented secondary structural zones.
These secondary structures form an en echelon array and are
interpreted to have developed as extensional zones due to a change
in geometry along the CMFS from north to
northwest.
Remi
Remi (formerly Central) is located approximately 1km south of
Dragonfly and is transected by southern extensions of the CFMS from
Dragonfly. At least 10 fault segments transect the area and are
associated with variable alteration and mineralization. A total of
76 samples were collected on the target and returned values up to
0.232 g/t Au. In addition to gold targets, a previously unknown
prospect was discovered along an E-W trending cliff face with
stockwork barite-carbonate veining and up to 3% relict, oxidized,
sulfides in strongly altered siltstone. Samples from the prospect
also returned up to 4.5% Zn and 0.24% Pb.
Newmont
Newmont is located approximately 1.2km south of the Remi and
consists of a northeast trending, gently south dipping, zone(s) of
mineralization along the Newmont fault, a structurally controlled
contact of Permian siltstone and bioclastic limestone. Drilling on
the target has defined mineralization over 530m of strike length and to 335m depth. Previously announced rock sampling by
the Company further extended the Newmont fault 230m along strike to the northeast and beyond the
limits of drilling. Recent mapping and sampling focused on the
northern portion of the target and was designed to continue to
trace the Newmont structure to the north and assess for additional
subparallel zones.
A total of 62 samples were collected on the Newmont and returned
assays up to 0.47 g/t Au. Mapping and sampling successfully traced
the Newmont fault a further 350m to
the north and is interpreted to continue into the Remi zone;
extending the strike extent of the Newmont to 1.1km. While
the sample results were lower order, they demonstrate continuity of
the mineralized system north from the Newmont. Additionally, they
occur in less favorable lithologic units (sandstone and
conglomerate) higher in the stratigraphic sequence indicating
potential for stronger mineralization at depth.
Flores
Flores is located approximately 1.4km east of the Newmont and
consist of a series of E-W and N trends faults within a sequence of
Permian siltstone and limestone. The E-W faults appear to be early
and locally form the contact between the siltstone and limestone
units. These were then reactivated and offset by later north
oriented faults that is contemporaneous with mineralization and are
interpreted as subparallel faults of the CMFS. Mineralization
occurs in both sets of structures over a 650m trend, is strongest at structural
intersections and lithologic contacts, and is associated with
carbonate veining, strong iron oxide development, and localised
silicification. Previous sampling on the target included trench
19-MOT-006: 43m of 3.78 g/t Au, incl.
6m of 14.38 g/t Au.
A total of 35 rock chip and grab samples were collected on
Flores with individual samples up to 23.4 g/t Au and 10 of the
samples returning >0.1 g/t Au. Highlights of the sampling
include:
- 23.4 g/t Au from approximately 5m
wide, E-W trending zone of brecciated and silicified siltstone with
strong iron oxide development. Open along strike in both directions
and located at the eastern end of the Flores trend; approximately
300m east of previous trenching.
- 11.1 g/t Au from NW trending fault with brecciation and strong
iron oxides.
- Up to 5.34 g/t Au associated with E-W carbonate breccia zone
30m north and subparallel to trench
19-MOT-006.
2021 Exploration Program
The results reported above are a portion of samples collected
from an ongoing geologic mapping, prospecting, and geochemical
sampling program across the Mojave
property. To date over 700 rock samples and 657 soil samples have
been collected across 13 target areas on the property. Results for
the additional sampling is pending and will be released in due
course.
In addition, the Company has initiated a 1036 line-km heliborne
VTEM EM-Resistivity survey on the Mojave property. The survey will cover all
known target areas and include magnetics and radiometrics.
Drill Permitting Progresses
As previously reported, (K2 Achieves Significant Permitting
Milestone for Mojave Project, March 23,
2021) K2 has received a decision by the BLM that its plan
for Phase 2 drilling meets the regulatory requirements and is now
proceeding through the environmental review process. The plan
for K2's next phase drill program targets the key zones using the
alignment of a prior exploration road to access 30 drill sites.
The BLM has initiated preparation of an updated Environmental
Assessment and the public scoping and tribal consultation period.
K2 has also filed its application for a reclamation plan with
Inyo County. K2 expects
completion of these processes in Q3 of 2021. K2 will then
undertake a 10,000m drill program
which will give additional information as to the extent of known
high-grade gold mineralization which projects to surface. The
results of the drilling will be used in a preliminary gold resource
estimate. The results of a resource estimate at this stage of
drilling is still extremely preliminary, and will not provide
enough information to continue to mining and furthermore it will
not provide enough information to determine the type of mining or
method of gold
extraction.
Stock Options Grant
The Company's Board also granted incentive stock options (the
"Options") to certain directors, officers, and consultants of the
Company to purchase up to an aggregate 1,380,000 common shares in
the capital stock of the Company, in accordance with K2's
shareholder-approved stock option plan. The stock options are
exercisable at a price of $0.32 per
share, for a period of five years from the date of grant and will
vest 25% on the date of grant and thereafter 25% every 3 months
until fully vested.
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.
About K2
K2 is a well-financed gold exploration company with
approximately C$6M and projects in
SW USA and the Yukon. In the USA, the Company is represented by its 100%
subsidiary, Mojave Precious Metals Inc. ("MPM"). 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 Flores
zone which recorded 8.4 g/t gold over 25.6m (see October 30,
2013 news release from Great Bear Resources Ltd.).
K2 and MPM are committed to transparency, accountability,
environmental stewardship, safety, diversity and inclusion, and
community engagement.
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