Centerra Intersects 144.2 Metres of 0.66 g/t Au from Surface Including 42.66 Metres of 1.07 g/t Au at Kestrel's QCM Gold Property
CALGARY, AB / ACCESS Newswire / February 27, 2025 / Kestrel Gold Inc. ("Kestrel" or the "Corporation") (TSXV:KGC) is pleased to provide an update on work completed by Centerra Gold Inc. ("Centerra", TSX:CG) on Kestrel's QCM gold property ("QCM") located in the Manson-Germanson area of central British Columbia. Centerra holds an exclusive option to earn a 75% interest in QCM by making cash payments totalling $900,000 and completing $6,500,000 in exploration work, which must include a minimum of 13,500 metres of drilling, by May 7th, 2029.
Centerra's reverse circulation ("RC") drill program resulted in the completion of 8 holes totalling 1,096.94 metres. All holes were located in the general vicinity of the 14 Vein zone where RC drilling by Kestrel in 2022 intersected 21.33 metres of 2.39 g/t Au in hole QCM22-8 and 44.19 metres of 2.33 g/t Au in hole QCM22-9. Centerra's drilling was conducted on several different azimuths in an effort to test various geological theories and a geophysical anomaly, in addition to providing follow up of Kestrel's 2022 drill results. Significant gold values were encountered within 5 of the 8 holes completed, confirming potential for a potentially significant zone of gold-bearing mineralization in this area. See Table 1 for 2024 drilling highlights.
Table 1: 2024 Drill Results
Hole ID
From (m)
To (m)
Interval (m)
Au (g/t)
Hole Depth (m)
QCM-24-RC001
3.05
91.44
88.39
0.75
131.1
including
10.67
62.5
51.83
1.11
QCM-24-RC002
scattered anomalous values
84.43
QCM-24-RC003
9.15
153.35
144.2
0.66
153.35
including
54.27
96.93
42.66
1.07
and
139.6
153.35
13.75
0.73
QCM-24-RC004
5.49
13.72
8.23
1.74
147.87
QCM-24-RC005
71.65
102.11
30.46
0.84
149.4
QCM-24-RC006
74.68
85.34
10.66
1.50
147.87
QCM-24-RC007
scattered anomalous values
164.02
QCM-24-RC008
scattered anomalous values
118.9
Reported intervals are down-hole lengths, true widths have not been established at this time
Holes QCM-24-RC001, QCM-24-RC003 and QCM-24-RC004 all collared in gold bearing material, with 1.36 g/t Au over 0.91 metres encountered at the top of Hole QCM-24-RC003.
Gold-bearing intervals are hosted by greywacke and phyllite that is often sericite and silica altered, mineralized with up to 5% pyrite and cut by variably sized quartz veins.
Pat Lynch, President and CEO of Kestrel, states: "We are pleased with the results which confirm the presence of a potentially significant gold discovery in 14 Vein zone area of the QCM property. These results help increase the understanding of geological controls on gold mineralization in this area and will hopefully provide the impetus for further drilling by Centerra of this and other targets on the property including Main Zone where historical drilling has returned up to 2.86 g/t Au over 110.95 metres."
Figure 1: 14 Vein Zone, Hole Locations on Imagery
Figure 2: Property Outline with Showings on Geology
Table 2: RC Hole Location Data (coordinates in Zone 10, NAD83)
Hole ID
Easting
Northing
Azimuth
Dip
Hole Depth (m)
QCM-24-RC001
396139
6179247
275
-45
131.1
QCM-24-RC002
396141
6179251
300
-60
84.43
QCM-24-RC003
396100
6179292
330
-45
153.35
QCM-24-RC004
396100
6179292
280
-45
147.87
QCM-24-RC005
396179
6179259
240
-45
149.4
QCM-24-RC006
396179
6179259
170
-45
147.87
QCM-24-RC007
396236
6179315
350
-45
164.02
QCM-24-RC008
396366
6179210
340
-45
118.9
QCM Project Highlights:
QCM is comprised of 8,729 hectares covering an approximate 15-kilometre strike length of the Manson Fault Zone which is thought to be a controlling structure for much of the gold mineralization in the district.
Peak values from historical drilling completed within the Main Zone were found within hole 2004-002 which intersected an interval of 2.86 g/t Au over 110.95 metres, including a high-grade interval of 173 g/t Au over 1.5 metres, true widths unknown.
Prospecting during 2022 resulted in the discovery of the 14 Vein showing, drilling of which returned 2.33 g/t Au over 44.19 metres. Geology consists of silica-ankerite-pyrite altered greywacke cut by sheeted quartz veins. For further details see Kestrel's October 26, 2022 news release: https://www.kestrelgold.com/news/oct-25-2022-e7yzr.
Numerous historical showings occur throughout the project area, including Farrell where historical values of up to 1,777 g/t Au and 3,560 g/t Ag were returned from grab samples of a 3.0-metre-wide quartz vein and Flagstaff where historical values of up to 5.9 g/t Au and 1,153 g/t Ag were reported for grab samples of quartz veins and stockworks.
Recently completed logging and associated road building has significantly improved access throughout the property which is proving of significant value to exploration efforts.
Quality Assurance/Quality Control and Sampling Procedures
Drilling was completed using a RC drill that cut a 92 millimeter (3.62 inch) in diameter hole. Holes were sampled top to bottom in 1.52 metre (5 foot) intervals. Drill cuttings were captured in a cyclone then split in a riffle splitter. Samples were sent to Bureau Veritas, an independent laboratory in Vancouver B.C. where analytical results were obtained using FA430, a fire assay method for gold and MA200 for trace element geochemistry. For QA/QC purposes, standards, blanks and field duplicates were inserted into the sample sequence at a rate of approximately one QA/QC sample for every ten samples submitted to the lab. An initial review of the drilling, sampling and assaying procedures did not recognize any factors that would materially affect the accuracy or reliability of the assay data disclosed.
Qualified Person
Derek Torgerson P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this news release.
About Kestrel Gold
Kestrel Gold Inc. is an exploration company headquartered in western Canada and focused on the Canadian Cordillera. Kestrel has earned a 100% interest, subject to a 2% NSR royalty with buydown provisions, in the QCM Property which is an orogenic gold target located in the Manson-Germanson placer district. Kestrel has also earned a 100% interest, subject to a 2.5% NSR royalty with buydown provisions, in the KSD Property which is an orogenic gold target located in the Yukon portion of the Tintina Gold Belt. Kestrel is listed on the TSX Venture exchange under the symbol KGC. Readers are encouraged to refer to the Corporation's website "www.kestrelgold.com" for further information.
Forward-Looking Statements
The information and statements in this news release contain certain forward-looking information. This forward-looking information relates to future events or the Corporation's future performance including exploration activity that could take place on the Corporation's properties or projects. This forward-looking information is subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking information. The Corporation's forward-looking information is expressly qualified in its entirety by this cautionary statement. Except as required by law, the Corporation undertakes no obligation to publicly update or revise any forward-looking information.
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.
For further information contact:
Pat Lynch, President and CEO Office: (403) 660-3329 Email: pat@kestrelgold.com
