GFG Resources Inc. announced that it has initiated its 2024 drill program of approximately 6,000 m testing multiple targets across the Goldarm Property (?Goldarm?) and to test a new target within the Pen Gold Project (?Pen?) called Muskego. Drilling is planned to start next week at Aljo with a Phase 1 drill program consisting of approximately 1,500 m. In addition to the drill programs, the Company has initiated regional surface exploration programs across its 800 square kilometre Timmins land package. GFG will commence drilling operations at Aljo in the upcoming days.

The drill program will consist of approximately 1,500 m, with a focus on targeting broad centers of gold mineralization known to host up to five discrete parallel zones of high-grade mineralization. These zones are characterized by significant visible gold found in quartz veins that are associated with strong alteration halos. The primary objectives of the drill program are to test the continuity of quartz veins and gold mineralization with step-outs of around 75 m along the strike and at depth beneath the historic Aljo Mine.

Additionally, the program aims to expand on the newly discovered high-grade Aljo Footwall Zone, which was identified in drill hole ALJ-23-004 which returned impressive gold grades, including 13.35 g/t Au over 3.6 m, which included 32.94 g/t Au over 1.4 m from a depth of 350.5 m. Furthermore, the drill program will investigate the relationship between gold mineralization and newly modeled feldspar porphyry dykes in the Aljo Mine area. Previous observations have shown high-grade gold mineralization with visible gold in quartz veins occurring within, on the margins of, and in proximity to these porphyry dykes. The success of this drill program will play a crucial role in determining the level of focus and investment that GFG will allocate to Aljo during the Q3-Q4 drill program.

In addition to the significant opportunity at Aljo, GFG will test other high-potential targets, such as the Carr Porphyry, which exhibits similar high-grade gold and copper mineralization from historic drill intercepts. GFG is currently advancing the geological model at Montclerg Gold Project (?Montclerg?) to identify areas for resource expansion and additional stand-alone targets. The Lower Footwall zone has shown very strong down-dip continuity evidenced by the most recent and deepest drillhole intercept to-date grading 4.79 g/t Au over 12.8 m from 424.2 m including 10.05 g/t Au over 4.3 m. This remains a very exciting expansion target for GFG and will be the focus of future drill programs driven by refinement of the exploration model.

In addition to modelling, the Company plans to complete further metallurgical tests. GFG launched a property-wide black spruce bark sampling program at Goldarm in Q1-2024, with the objective of identifying new gold and base-metal anomalies. The collection of approximately 800 samples, covering a significant portion of the property marks a crucial step in GFG?s initiative to expand and define new drill targets.

Given the substantial till cover present across the Goldarm Property, GFG views this method as a cost-effective means of conducting initial testing for gold and base-metal mineralization, offering advantages over base-of-till drilling. The resulting targets will be evaluated and ranked within GFG's growing target pipeline, with the most promising targets slated for further exploration in Q4-2024 and early 2025. In addition to drilling at Aljo, the Company plans to complete summer field activities including prospecting, channel sampling, and mapping.

A particular emphasis will be placed on delineating folded and faulted porphyry dykes, which are intricately linked to high-grade gold mineralization in the Aljo region. Efforts will also be directed towards developing a robust alteration within the Aljo system, believed to signify intersection-controlled gold zones that may extend well beyond the historical Aljo Mine boundaries. These concerted efforts underscore GFG's commitment to advancing exploration activities and unlocking the full potential of the Aljo area.

After conducting a thorough review of the 2022 sonic drill base-of-till sampling program on the west side of the Pen property, GFG has identified several new gold targets that warrant further exploration. These targets exhibit gold +/- copper anomalism in bedrock and basal till beneath the 30 square kilometre Muskego region. The Muskego area has no outcrop, which has historically impeded significant exploration efforts.

The compiled anomalous data align with conceptual target areas developed by GFG and are situated between the Slate Rock target and the Porcupine-Destor Fault Zone. These newly identified targets will be the focus of upcoming first pass drill programs within the next 12 months. The potential of these targets highlights the opportunities of unlocking the mineralization potential within the Pen property.

Gold grain data are now being received for the regional till survey carried-out at Dore in Q4-2023. Although the results are preliminary in nature, they outline gold-in-till anomalies in several target areas across the property. A number of base-metal targets have also been identified from the results that correspond to known trends hosting semi-massive to massive sulphide lenses.

GFG has already begun following-up on these results focusing on prospecting along major crustal-scale features directly up-ice from the new gold and base-metal basal till anomalies. Additional till sampling within the eastern block at Dore has also begun given that this area hosts intriguing copper-gold mineralization in stock-work style quartz veins in regionally extensive magmatic breccia zones. Till-sampling was not completed in this area due to poor access and snow-cover late in 2023 and is now being prioritized.