Sky Gold Reports on Current Field Work on Central Newfoundland Properties Contiguous to New Found Gold's Queensway Gold Project

Rhea-AI Summary

Sky Gold Corp. provides an update on its Mustang and Virginia properties in Newfoundland, adjacent to New Found Gold's project. The Virginia property, covering 100 hectares, shows promising results from historical data, including gold grades up to 109.6 g/t. Ongoing trenching aims to confirm and extend mineralization. Meanwhile, work at the Mustang property focuses on geological mapping and sampling to establish drill targets. Additionally, the company amended the purchase agreement for the Evening Star Property, securing an 80% interest. CEO Mike England expresses optimism about progress amid COVID-19 safety protocols.

Positive

• Virginia Property shows potential with historical gold grades up to 109.6 g/t Au.
• Successful completion of the permit for development at the Mustang property.
• Amended purchase agreement secures an 80% interest in the Evening Star Property.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / September 3, 2020 / Sky Gold Corp. (TSX-V: SKYG) (OTC PINK:SRKZF)("Sky Gold Corp." or the "Company") is pleased to report an update of current field activities on its Mustang and Virginia properties, contiguous to the north-eastern portion of the Queensway Gold Project, owned by New Found Gold Corp. (TSX-V: NFG) ("New Found Gold").

Virginia Property

The Virginia property comprises 100 hectares and is located 3.3 kilometres north-east of the village of Glenwood, which is situated on the Trans-Canada Highway. The property is approximately 5.7 kilometres northeast of New Found Gold's drill hole (NFGC-19-01) which intersected 92.86 grams per tonne gold (g/t Au) over 19 metres (see Mexican Gold Corp. press release dated Jan. 26, 2020)*.

Planet X Exploration Services Ltd.'s field crews, retained through Grassroots Prospecting ("Grassroots"), a local, Newfoundland-based prospect generation company, have prospected and sampled the property, and have located and mapped the old trenches from the 1990s, which are badly overgrown. Additional hand stripping and trenching is ongoing to better expose a large (rusty oxidized gabbro shear zone recently observed in the field) mineralized zone or trend observed sporadically where bedrock outcrop for over 80 meters, to obtain samples from outcrop and subcrop in the excavated trenches.

Results to date support the work completed in the early 1990's by Manor Resources Ltd. ("Manor") and documented in Assessment File NFLD_2244, which reports two areas of mineralization ("A2 Zone") that have not been drilled. The areas consist of a first showing comprised of quartz veining developed over a 35 metre wide zone within sheared gabbro and graphitic shale (main shear) returning up to 8.7 g/t Au, and a second showing comprised of a sheared gabbro returning a grab sample up to 109.6 g/t Au*. The Company is focused on confirming and extending these known mineral showings.

*Gold values on adjacent properties in similar rocks and assays based on historical work are not representative of mineralization on the property, have not been verified and should not be relied upon.

Mustang Property

Grassroots crews have mobilized to the Mustang property to begin a program consisting of prospecting, geological mapping, rock outcrop and subcrop sampling, soil geochemistry and hand trenching. The program is focused on identifying drill targets for this fall. The Permit for Development was received from the Newfoundland government on August 18, 2020 and the only remaining requirement for diamond drilling operations is a water use permit and amended exploration approvals which are expected by mid-September 2020.

CEO & Director Mike England states: "We are pleased with the progress made by Grassroots on the Virginia property and are looking forward to results from both properties as we refine our drill targets for a fall program in this exciting, emerging gold district led by New Found Gold."

All Company activities are conducted under guidelines and policies compliant with Federal and Provincial health and safety protocols related to the COVID-19 pandemic.

The Company would also like to announce that it has amended the terms of the purchase agreement related to the Evening Star Property in Mineral County, Nevada dated Nov. 23, 2016. With a final payment of US $50,000 and the issuance of 600,000 shares, payable immediately to Multiple Metal Resources Ltd., the Company will have fulfilled its earn-in obligations and will own an 80% interest in the Evening Star Property.

Qualified Person

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 Mustang and Virginia properties.

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 is now positioned in Newfoundland with the Mustang Gold project and in Nevada with the Evening Star polymetallic property.

ON BEHALF OF THE BOARD

"Mike England"
__________________________
Mike England, CEO & DIRECTOR

FOR FURTHER INFORMATION PLEASE CONTACT:
Telephone: 1-604-683-3995
Toll Free: 1-888-945-4770

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:
https://www.accesswire.com/604648/Sky-Gold-Reports-on-Current-Field-Work-on-Central-Newfoundland-Properties-Contiguous-to-New-Found-Golds-Queensway-Gold-Project

FAQ

What recent updates has Sky Gold Corp. (SRKZF) provided on its Mustang and Virginia properties?

Sky Gold Corp. has reported ongoing field activities on its Mustang and Virginia properties, highlighting significant historical gold grades and continued exploration efforts.

What are the gold grades reported from the Virginia property by Sky Gold Corp. (SRKZF)?

The Virginia property has historical reports indicating gold grades up to 109.6 g/t Au, with additional exploration underway to confirm mineralization.

When does Sky Gold Corp. (SRKZF) expect to begin drilling at the Mustang property?

Sky Gold Corp. is identifying drill targets at the Mustang property, with drilling operations expected to commence in the fall, pending water use permit approval.

What is the significance of the purchase agreement amendment for the Evening Star Property by Sky Gold Corp. (SRKZF)?

The amendment allows Sky Gold Corp. to secure an 80% interest in the Evening Star Property, enhancing its mineral asset portfolio.

How is Sky Gold Corp. (SRKZF) ensuring safety amid COVID-19 during its exploration activities?

Sky Gold Corp. complies with Federal and Provincial health and safety protocols related to the COVID-19 pandemic during all exploration activities.