1 Mar 2018

Drill Assay Results from Mitchell Lake Zone Return 9.26 G/T Gold Over 0.5 Metres and a Broader Disseminated Intercept of 30.50 Metres Grading 0.70 G/T Gold

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Vancouver, British Columbia–(Newsfile Corp. – March 1, 2018) – OSPREY GOLD DEVELOPMENT LTD. (TSXV: OS) (OTCQB: OSSPF) (the “Company” or “Osprey”) is pleased to announce assay results from three holes drilled on the western portion of the Goldenville property in the Mitchell Lake Zone. The Company’s Goldenville Property (“Goldenville”) is located in Guysborough County, Nova Scotia, and was the subject of the recently completed 3,044 metre (“m”) diamond drill program. This release includes results for three holes totaling 435 m; all three holes hit multiple intervals of gold mineralization, characterized by both high grade quartz vein hosted gold, as well as broad lower grade gold intercepts with mineralized host rock and veinlets.

Highlights:

  • MIT17-01 intersected a broad zone of gold mineralization; 30.50 m of 0.70 grams per tonne (“g/t”) gold, including 8.10 m of 1.10 g/t gold, and 9.40 m of 1.02 g/t gold;
  • MIT17-01 also intersected high grade mineralization, 9.26 g/t gold over 0.50 m
  • MIT17-02 intersected multiple zones of mineralization, with 23% of the assay intervals returning between 0.50 – 3.65 g/t gold;
  • MIT17-03 intersected another broad zone of gold mineralization, with 25.10 m of 0.41 g/t gold, including 8.30 m of 0.89 g/t gold
Company President Cooper Quinn said, “The results from Mitchell Lake continue to show the potential for broad zones of disseminated mineralization within the host rock on the Goldenville project. The Mitchell Lake area is large, with little previous exploration work, however limited prior drilling by a former operator included 1.33 g/t Au over 20.2m in hole MIT-1. The potential for disseminated mineralization in the area has been known for some time as a report from 1898 in the Industrial Advocate indicates, ‘In this vicinity are some of the largest low grade belts of [mineralization] in the district, and as this class of mining will be eventually the mainstay of the gold mining industry in this province…’. We see these results as very encouraging for our model at Mitchell Lake, and are looking forward to following up on these high grade veins and disseminated gold results with our 2018 exploration program.”
The holes drilled at Mitchell Lake cover approximately 150 m of strike length, and are located roughly 4 kilometres from the center of Osprey’s current NI 43-101 Inferred Resource of 2,800,000 tonnes at 3.20 g/t gold for 288,000 ounces of gold (2,800,000 tonnes at 4.96 g/t gold for 447,000 ounces of gold uncapped). Previous results from the resource expansion drill program successfully intersected mineralization outside of the exiting resource area, as previously reported by way of news releases dated November 6, 2017, and February 21, 2018. The Mitchell Lake Zone remains open in all directions and at depth.
More complete assay results from the program are available below in Table 1, with collar location data in Table 2. In addition, a plan map displaying drill collars from this program in relation to historic drill collars and shaft locations for past producing mines on the property can be seen below in Figure 1, and at the Company’s website (www.ospreygold.com).
 
Table 1 — Drill results from 2017 Exploration Program
 
Hole ID From To Width* Au (g/t)
MIT17-01 115.35 116.20 0.85 4.17
MIT17-01 120.00 120.60 0.60 1.52
MIT17-01 126.80 157.30 30.50 0.70
incl 129.50 137.60 8.10 1.10
and 146.30 155.70 9.40 1.02
MIT17-01 146.30 155.70 9.40 1.03
incl 155.00 155.70 0.70 5.17
MIT17-01 168.50 169.00 0.50 9.26
MIT17-01 174.00 174.50 0.50 1.36
MIT17-02 23.80 25.60 1.80 1.36
incl 23.80 24.30 0.50 3.65
MIT17-02 43.70 50.40 6.70 0.56
incl 45.20 47.70 2.50 1.21
MIT17-02 67.00 69.50 2.50 1.42
MIT17-02 102.00 102.50 0.50 1.87
MIT17-03 31.70 56.80 25.10 0.41
incl 34.50 52.30 17.80 0.50
incl 44.00 52.30 8.30 0.89

*Core axis angles of the bedding planes vary but average approximately 45 degrees in MIT17-01, and 60 degrees in MIT17-02 and 03.

Figure 1 – 2017 Mitchell Lake Drill Collar Locations

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Table 2 — Drill Hole Collar Data

Hole ID Location Easting Northing Depth Azimuth Dip
MIT17-1 Mitchell Lake W 573350 4997303 178 0 -45
MIT17-2 Mitchell Lake 573498 4997402 151 180 -45
MIT17-3 Mitchell Lake 573447 4997406 106 180 -45

About Goldenville and Osprey

Osprey is focused on exploring five historically producing gold properties in Nova Scotia, Canada. Osprey has the option to earn 100% (subject to certain royalties) in all five properties, including the Goldenville Gold Project, Nova Scotia’s largest historic gold producer. Goldenville hosts a current NI 43-101 Inferred Resource of 2,800,000 tonnes at 3.20 g/t gold for 288,000 ounces of gold (2,800,000 tonnes at 4.96 g/t gold for 447,000 ounces of gold uncapped) near the town of Sherbrooke, NS. All five properties in Osprey’s current portfolio have a history of high-grade gold production. A copy of the Company’s technical report titled “Technical Report on the Goldenville Property, Guysborough County, Nova Scotia Canada” prepared by David G. Thomas, M.Sc., P. Geo. and Neil Pettigrew, M.Sc., P. Geo. is available under the Company’s profile at www.SEDAR.com.

Samples from the 2017 exploration program are cut with a diamond saw, and placed in sealed bags and shipped to Bureau Veritas Commodities in Timmins, ON for sample preparation, with pulps subsequently shipped to Vancouver, BC for gold and multi-element ICP analysis. A Quality Control/Quality Assurance program, including the insertion of Duplicates, Standards, and Blanks, has been implemented. All quality control samples were acceptable. The 2017 exploration program is performed under the supervision Perry MacKinnon, P.Geo, Vice President of Exploration of Osprey and a ‘Qualified Person’ under NI 43-101. Mr. MacKinnon has reviewed and approved the technical content of this release.

Additional information regarding Osprey and the Goldenville property is available under the Company’s profile at www.sedar.com and at www.ospreygold.com.

For further information please contact:

ON BEHALF OF OSPREY GOLD DEVELOPMENT LTD.,

“Cooper Quinn”
Cooper Quinn, President and Director

For further information please contact Osprey at (236)521-0944 or cooper@ospreygold.com

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.

All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to Osprey within the meaning of applicable securities laws. Osprey provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to exploration findings, results and recommendations, as well as those risks and uncertainties identified and reported in Osprey’s public filings under Osprey’s SEDAR profile at www.sedar.com.  Although Osprey has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Osprey disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.