Contact Gold Continues to Advance the Pony Creek Project, Nevada

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Vancouver, British Columbia--(Newsfile Corp. - October 9, 2019) - Contact Gold Corp. (TSXV: C) (the "Company" or "Contact Gold") is pleased to provide an update on the Company's flagship Pony Creek gold property ("Pony Creek"), located on the Carlin Trend in Elko County, Nevada, immediately south of Gold Standard Venture's Railroad project.

Pony Creek was acquired in June 2017 in the "founding" transaction to create Contact Gold. Since that time, the Company has made significant progress advancing, de-risking and augmenting the exploration and growth potential of the property. Contact Gold has drilled 25,960 metres in 117 drill holes across four main target zones, maintaining a hit ratio of over 90% of all drill holes hitting significant gold mineralization (defined as greater than 3 metres grading 0.14 g/t Au).

The Company has focused on generating high-quality exploration drill targets across its 82 km2 property through extensive geological mapping, geophysical surveys, rock and soil sampling, structural analysis and fossil age dating. Preliminary metallurgical test work at Pony Creek has demonstrated excellent gold recoveries from oxidized material (85-90%, see News Release May 17, 2018).

In 2017, Contact Gold immediately began the necessary permitting activities to complete a Plan of Operations with the Bureau of Land Management (BLM) to enable aggressive future drill programs at Pony Creek. The Plan of Operations will support up to 150 Acres of road and drill pad construction at the property, and final approval is expected by the end of 2019. Drilling in 2017, 2018 and to date in 2019 was carried out under two 5 acre Notice of Intent permits.

"When we created Contact Gold in 2017, Pony Creek presented a clear opportunity to create long term value. Since that time, we have made systematic and at times spectacular progress across the 82 km2 property package, making 2 new oxide gold discoveries, hitting gold in more than 90% of holes drilled, and adding 6 virgin multi-kilometre exploration targets on the property," said Matt Lennox-King, President & CEO of Contact Gold. "Until now we've been operating within a limited footprint under Notice of Intent permits and receipt of the Plan of Operations permit will be a key milestone for Pony Creek, with ample permitted disturbance to aggressively follow up on our new discoveries at the Stallion and Bowl Zones, and initial tests of all the other high quality targets our team has generated over the past 2 years. We believe Pony Creek has the ability to deliver numerous discoveries."

Drill Highlights:

Drilling to date at Pony Creek has been extremely successful in both expanding previously known zones of gold mineralization, and making new discoveries on previously un-drilled targets.

Bowl Zone:

Drilling by Contact Gold has returned long intervals of near surface oxide gold on this previously known zone of near-surface Carlin Type gold mineralization. The Bowl Zone remains open for expansion in all directions.

  • 1.36 g/t Au over 43.74 m from 116.89 m in hole PCC17-24

    • including 3.35 g/t Au over 15.55 m from 125.03 m

  • 2.12 g/t Au over 22.86 m from 64.01 m in hole PC17-040

    • including 4.53 g/t Au over 9.14 m from 65.53 m

  • 2.51 g/t Au over 47.24 m from 86.87 m in hole PC18-03

  • 1.00 g/t Au over 92.97 m from 50.29 m in hole PC18-04

  • 2.42 g/t Au over 35.05 m from 266.7 m in hole PC18-33

    • including 3.15 g/t Au over 24.38 m from 274.32 m

  • 0.65 g/t Au over 65.53 m from 62.48 m in hole PC17-08

  • 0.8 g/t Au over 32.00 m from 65.53 m in hole PC19-02

    • including 1.48 g/t Au over 13.72 m

Stallion Zone:

Stallion was discovered by Contact Gold in 2018. It is an outcropping zone of oxide gold mineralization measuring in excess of 2 km. To date 22 of 23 drill holes released have intersected long runs of near-and-at surface, well oxidized gold mineralization, with numerous individual assays ranging from 0.6 g/t Au to 1.1 g/t Au

  • 0.42 g/t Au over 33.53 m oxide from 4.57 m in discovery hole PC18-018

    • including 1.11 g/t Au over 4.5 m

  • 0.71 g/t oxide Au over 10.67 m from 19.81 m in hole PC18-022

  • 0.33 g/t oxide Au over 92.97 m from surface in hole PC18-51

    • including 0.6 g/t oxide Au over 13.7 m

  • 0.70 g/t oxide Au over 6.10 m from surface in hole PC18-40

Appaloosa Zone:

Appaloosa has continued to return thick intervals of oxide gold in the near surface, and the gold mineralization footprint measures in excess of 1 km. The zone remains open for expansion, with numerous untested coincident gold-in-soil geochemical & geophysical targets yet to be drilled.

  • 0.84 g/t Au over 7.62 m from 85.35 m in hole PC19-17

    • including 1.56 g/t Au over 3.05 m from 88.39 m

  • 0.38 g/t Au over 28.96 m from 83.82 m in hole PC19-16

    • including 2.19 g/t Au over 3.05 m from 89.92 m

  • 0.34 g/t Au over 44.20 m from 25.91 m in hole PC17-21

  • 0.47 g/t Au over 43 m - Barrick drill hole 1989

  • 0.91 g/t Au over 38.1m in hole PC-06-03

  • 0.92 g/t Au over 36.5m in hole 95-08

Future Drill Targets:

Through the systematic exploration approach carried out at Pony Creek, Contact Gold has continued to add high quality drill targets to the property. Key targets to be tested upon receipt of an approved Plan of Operations include:

  • Mustang: The 2 km long target, which has never been drilled, extends west-northwest from the Appaloosa Zone, and is defined by: west-northwest structurally controlled gravity and gold-in-soil anomalies cutting Penn-Perm Moleen and Strathearn formation clastic and carbonate rocks, and contains gold-in-soil values as high as 0.54 g/t Au.

    The Mustang Target is immediately south of Gold Standard's Jasperoid Wash deposit, and Contact Gold's recent interpretation is that it may be connected to the Stallion Zone, with the vast area between the two surface anomalies covered with a thin veneer of unmineralized rock that is in low angle fault contact with the underlying mineralized clastic carbonate rock.
  • Elliott Dome: Adjacent to the Jasperoid Wash deposit, the 500 x 1000 metre target, which has never been drilled, is defined by north-south structurally controlled gravity, CSAMT and gold-in-soil anomalies cutting clastic and carbonate rocks with gold-in-soil values as high as 0.34 g/t Au. Drill pads and roads have been built for this drill ready target.

  • Palomino: The 400 x 500 metre target area is located immediately northwest of the Bowl Zone and is defined by a significant gold-in-soil anomaly with local gold-in-soil values up to 0.55 g/t Au. Palomino is interpreted to be located along the major northwest structure that controls gold mineralization at the Bowl Zone and Pony Spur target.

  • Pony Spur: A northwest oriented structural zone, with abundant Jasperoid development and drilled gold mineralization at the Webb-Devil's Gate contact, an important regional gold host. Recent soil sampling by Contact Gold has generated a gold-in-soil anomaly measuring 200 X 600 metres, with gold values up to 1.18 g/t Au. Pony Spur is located along the main northwest structure associated with gold mineralization at the Bowl Zone and the Palomino target.

  • DNZ: A target area defined by geophysical anomalies, the DNZ is interpreted to sit along the main Dark Star - Emigrant structural corridor. The target stratigraphy is covered by post mineral volcanic rocks, resulting in a higher risk, high reward target scenario.

The scientific and technical information contained in this news release has been reviewed and approved by Vance Spalding, CPG, VP Exploration, Contact Gold, who is a "qualified person" within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Drill intercepts were calculated using a minimum thickness of 3.05 metres averaging 0.14 ppm gold and allowing inclusion of up to 4.57 metres of material averaging less than 0.14 ppm gold for low grade intervals and higher grade intervals were calculated using a minimum thickness of 3.05 metres averaging 1.00 ppm gold and allowing inclusion of up to 4.57 metres of assays averaging less than 1.00 ppm gold. Gravimetric assays are used for all Fire Assays above 4.00 ppm gold. Cyanide solubility assays are completed on all Fire Assays greater than 0.1 g/t. True width of drilled mineralization is unknown, but owing to the apparent flat lying nature of mineralization, is estimated to generally be at least 70% of drilled thickness. Quality Assurance / Quality Control consists of regular insertion of certified reference standards, blanks, and duplicates. All failures are followed up and resolved whenever possible with additional investigation whenever such an event occurs. All assays are completed at ALS Chemex; an ISO 17025:2005 accredited lab. Check assays are completed at a second, reputable assay lab after the program is complete.

About Pony Creek

Pony Creek is an early stage exploration property and does not contain any mineral resource estimates as defined by NI 43-101. There has been insufficient exploration to define a mineral resource estimate at Pony Creek. Additional information about Pony Creek is summarized in the NI 43-101 Technical Report entitled "NI 43-101 Technical Report on the Pony Creek Project, Elko County, Nevada, USA" prepared for Contact Gold, with an effective date of October 16, 2018, and dated October 22, 2018, as prepared by Vance Spalding, C.P.G; VP Exploration of Contact Gold, and can be viewed under Contact Gold's issuer profile on SEDAR at www.sedar.com.

For a table of all Pony Creek drill intervals, please click: http://www.contactgold.com/projects/pony-creek/

About Contact Gold Corp.

Contact Gold is an exploration company focused on producing district scale gold discoveries in Nevada. Contact Gold's extensive land holdings are on the prolific Carlin, Independence and Northern Nevada Rift gold trends which host numerous gold deposits and mines. Contact Gold's land position comprises approximately 140 km2 of target rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage.

Additional information about the Company is available at www.contactgold.com.

For more information, please contact: +1 (604) 449-3361
John Glanville - Director Investor Relations
Chris Pennimpede - Corporate Development
E-mail: info@ContactGold.com

Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to the anticipated exploration activities of the Company on the Pony Creek property.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); and title to properties. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/48619

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