Contact Gold Drills 2.82 g/t Gold Over 45.72 Metre

VANCOUVER, British Columbia, Oct. 04, 2017 (GLOBE NEWSWIRE) -- Contact Gold Corp. (the “Company” or “Contact Gold”) (TSX-V: C ) is pleased to announce drill results from the first 10 holes, totaling 2,064 metres of its maiden drill program at the Pony Creek gold property (“Pony Creek”), located in Elko County, Nevada.

Pony Creek is comprised of 1,157 unpatented mining claims covering 95.4 square kilometres on the Carlin Trend between Kinross's Bald Mountain mine, Gold Standard Ventures’ Railroad/Pinion District and Newmont Mining’s Rain and Emigrant mines.  No drilling had been conducted at Pony Creek in 10 years.  All of the first 10 holes completed by Contact Gold returned anomalous to high grade gold intersections.

Drill Highlights:

• 2.82 g/t Au over 45.72 metres from 103.6 to 149.4 m in drill hole PC17-010

• Including 5.45 g/t Au over 21.34 m from 111.3 to 132.6 m
• Including 10.53 g/t Au over 6.10 metres from 111.25 to 117.35 m

• 0.78 g/t Au over 79.25 metres from 44.2 to 123.4 m in drill hole PC17-007

• Including 1.26 g/t over 15.24 metres from 44.2 to 59.4 m, and
• Including 1.72 g/t over 9.14 metres from 71.6 to 80.8 m, and
• Including 1.76 g/t over 4.57 metres from 94.5 to 99.1 m

• 0.82 g/t Au over 19.81 metres from 4.6 to 24.4 m in drill hole PC17-014

• Including 2.1 g/t over 4.57 metres from 7.6 to 12.2 m

• 0.92 g/t Au over 15.24 metres from 114.3 to 129.54 m in drill hole PC17-09

“We are very encouraged by the initial results from Contact Gold’s drilling at Pony Creek.  These results confirm the excellent potential and pervasive mineralization at Pony Creek which are some of the key factors that drove the acquisition, while presenting clear opportunities to expand mineralized zones,” stated Matt Lennox-King, President & CEO of Contact Gold, “We believe that Pony Creek forms a prospective and strategic section of the southern Carlin Trend, and these initial results bolster that belief.”

These drill holes are from the ongoing 2017 diamond and RC drill program at Pony Creek, designed to confirm and offset gold mineralization intersected by previous operators.  To date, Contact Gold has completed over 4,000 metres of RC and core drilling in 19 holes.  The drill program forms part of a comprehensive property wide exploration program comprising over 4,000 soil samples, geological mapping, claim staking, gravity and CSAMT geophysical surveys.  Assays are pending for 13 holes, with a core drill rig and RC drill rig currently operating at Pony Creek.  Release sequence of drill results reflects scheduling and receipt of results from assay lab.

Phase 1 Drill Program

The comprehensive exploration program, initially focused on the “Bowl” area, and “Pony Creek North”, is designed to generate future exploration targets, and to build on the existing mineralized zones at Pony Creek, initially through confirming, understanding and expanding mineralization reported in historic drilling. The program integrates multiple techniques, including:  oriented core drilling, detailed surface mapping, biostratigraphic age dating, along with gravity and CSAMT geophysical surveys to gain the necessary stratigraphic and structural information to develop high potential drill targets along strike of the Pony/Dark Star/Emigrant structural corridor and elsewhere on the project where the regional host horizons and structural controls are present.

Drill holes were designed as infill to confirm mineralized areas in historic drilling and also as step outs, generally within 50 metres of historic holes, but up to 100 meters for two holes: drill holes PC17-07 and 017

• High grades have been intersected adjacent to and along strike from historic holes in the Bowl area, the area in which hosts the historic resource estimate.
• Long intervals of low grade mineralization were intersected in several holes.
• Recent drilling has intersected mineralization in newly recognized Pennsylvanian-Permian host lithologies conglomerates and sandstones – interpreted to be same host strata as Gold Standard Venture’s nearby North Dark Star deposit.

For a map of the Pony Creek target areas and drill collar locations, please click: http://www.contactgold.com/_resources/news/nr...04-Map.pdf  

Table of 2017 Pony Creek Drill Results:  

^{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}

Pony Creek is an early stage exploration property and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“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 a technical report entitled “ Technical Report on the Pony Creek Gold Project, Elko County, Nevada, USA ” dated April 18, 2017, and effective March 15, 2017), prepared by Michael M. Gustin, C.P.G. of Mine Development Associates of Reno, Nevada (the “Technical Report”), which can be viewed under Contact Gold’s issuer profile on SEDAR at www.sedar.com

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 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.  Quality Assurance / Quality Control consists of regular insertion of certified reference standards, blanks, and duplicates.  All failures are followed up with additional investigation whenever such an event occurs.  Multi element geochemical assays are completed on composites using the MEMS 61 method.  All assays are completed at ALS Chemex; an ISO 17025:2005 accredited lab.  Check assays will be complete at a second lab after the program is complete.

About Contact Gold Corp.

Contact Gold is a gold exploration company focused on leveraging its properties, people, technology and capital to produce 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 28,082 hectares (281 square kilometres) 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:

Matthew Lennox-King President & Chief Executive Officer

Andrew Farncomb SVP

E-mail: info@ContactGold.com

Neither the 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 Carlin Trend Properties.

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.