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New Potential Hanging Wall Zone Discovered with 8.4 gpt Gold over 2.0m
Canadian Gold Corp. (TSXV: CGC) ("Canadian Gold" or the "Company") is pleased to announce that the first hole designed to significantly expand the South Zone to the southeast by 170 metres vertically at the Tartan Mine near Flin Flon, Manitoba, was a success (Fig. 1 & 3). The hole intersected 6.1 gpt gold over 6.0 metres and discovered what the Company's geological team believes could be a new Hanging Wall Zone, which returned 8.4 gpt gold over 2.0 metres, further to the south. The result from the Hanging Wall Zone aligns with a hole drilled in 2022, which returned 29.1 gpt gold over 5.85 metres, making this an exciting new discovery.
"These remarkable results represent an exciting new chapter in our ongoing exploration of the orogenic gold system at the Tartan project. The South Zone is parallel to and right beside the Main Zone, which could be developed from the same underground workings at depth. Equally exciting is that higher up in hole TLSZ25-32, it appears that we have hit an additional high-grade gold parallel zone. The significant downward expansion of the South Zone gold mineralization at both a high grade and mineable width indicates what may be a significant new plunge line for the South Zone. The South Zone remains open along strike in both directions and at depth. The added prospect of a potential new Hanging Wall Zone is truly the icing on the cake for our geological team.
We are delighted to be able to focus on both the Main Zone and South Zone (as well as further drill into a potential third parallel zone discovery) drilling to have a dual approach of exploration and rapidly advance toward our goal of bringing the Tartan Mine back into production." - Michael Swistun, CFA, President & CEO
Table 1. Drilling Assay Highlights
| Drill Hole | From (metres) | To (metres) | Interval1 (metres) | Depth Below Surface (metres) | Gold Grade (gpt) | Zone2 |
| TLSZ25-32 | 222.00 | 227.00 | 5.00 | 190 | 4.0 | HWZ |
| Including | 222.00 | 224.00 | 2.00 | 8.4 | ||
| Including | 223.00 | 224.00 | 1.00 | 11.3 | ||
| And | 477.00 | 496.00 | 19.00 | 410 | 3.2 | SZ |
| Including | 482.00 | 488.00 | 6.00 | 6.1 | ||
| Including | 484.00 | 486.00 | 2.00 | 10.4 |
1Interval widths reported; true widths of the system are not yet known due to lack of drilling.
2SZ and HWZ refers to the South Zone and Hanging Wall Zone.
Table 2. Details of Drill Hole Reported in This News Release
| Drill Hole | Azimuth (Degrees) | Dip (Degrees) | Length (metres) | Easting (UTM) | Northing (UTM) |
| TLSZ25-32 | 360 | -61 | 548 | 324882 | 6081867 |
Why Is This Drill Hole Important?
This is the first hole drilled in this target during the 2025 drilling campaign. It nearly doubles the vertical extent of the South Zone by 61%, from 250 to 410 metres below surface (Fig. 1 & 3). It also has the potential to be the second drill hole in a third parallel zone.
Demonstrates that the South Zone has similar depth potential as the Main Zone, which extends to 1,030 metres below surface and remains open for expansion.
Due to its proximity to the Main Zone and current underground infrastructure (100 metres apart) (Fig. 3), there is excellent potential to increase the total ounces per vertical metre, allowing the Company to review potential higher gold production scenarios at lower costs.
New potential Hanging Wall Zone is emerging. Limited drilling in the area appears to have led to a discovery with its first intersection. In 2022, a hole returned 29.1 gpt gold over 5.85 metres, which appears to align with the intersection released today that assayed 8.4 gpt gold over 2.0 metres. The majority of previous drilling at this location was too far north to intersect this new potential Hanging Wall Zone (Fig. 3).
The South Zone has seen limited drilling during the Company's exploration Phases 1-4. This result opens many new target areas and provides the Company with opportunities to further expand the resource at Tartan before updating its mineral resource estimate. This is in addition to the many high-grade opportunities that exist at the Main Zone that have been highlighted in recent news releases.
For Further Information, Please Contact:
Michael Swistun, CFA
President & CEO
Canadian Gold Corp.
(204) 232-1373
info@canadiangoldcorp.com
Qualified Person
The scientific and technical information disclosed in this news release was reviewed and approved by Wesley Whymark, P. Geo., Consulting Geologist for the Company, and a Qualified Person as defined under National Instrument 43-101.
Technical Information
The samples collected by Canadian Gold Corp. described in this news release were transported in secure sealed bags for preparation and assay by ALS Labs in Thunder Bay, Ontario. The samples reported were crushed in their entirety to 80% passing 2 mm, with one 500 g subsample analysed for gold by photon assay.
About Canadian Gold Corp.
Canadian Gold Corp. is a Toronto-based mineral exploration and development company whose objective is to expand the high-grade gold resource at the past producing Tartan Mine, located in Flin Flon, Manitoba. The historic Tartan Mine currently has a 2017 indicated mineral resource estimate of 240,000 oz gold (1,180,000 tonnes at 6.32 g/t gold) and an inferred estimate of 37,000 oz gold (240,000 tonnes at 4.89 g/t gold). The Company also holds a 100% interest in greenfields exploration properties in Ontario and Quebec adjacent to some of Canada's largest gold mines and development projects, specifically, the Canadian Malartic Mine (QC), the Hemlo Mine (ON) and Hammond Reef Project (ON). The Company is 34% owned by Robert McEwen, who was the founder and CEO of Goldcorp and is Chairman and CEO of McEwen Mining.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release of the Company contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Canadian Gold's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.
Figure 1. Tartan Mine - South Zone Longitudinal Section illustrating the location of hole TLSZ25-32.
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Figure 2. Tartan Mine - Intersection of high-grade South Zone mineralization in hole TLMZ25-32.
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Figure 3. Tartan Mine - Main and South Zone 3D model showing the location underground infrastructure and drill hole TLSZ25-32.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/243043
Figure 1. Modelled mineralised shear zones in the Orion - Sapphire Trend, Leonora South Project