Great Atlantic Resources Corp. [GR-TSXV; PH0-FSE] jumped 140% Thursday September 27 after the company announced the discovery of a large new gold zone at its Golden Promise gold project in central Newfoundland.
The Golden Promise project is located approximately 55 km northeast of the Valentine Lake Gold Camp of Marathon Gold Corp. [MOZ-TSXV], and 40 km west of Sokomon Iron Corp.’s [SIC-TSXV] high-grade, low-sulfidation, epithermal-style Moosehead Project.
The results announced on Thursday are the first analytical results from the 2018 exploration program at Golden Promise, which included soil geochemical sampling. The company has previously said that gold-bearing quartz veins have been reported in multiple areas of the property, including at least four gold-bearing quartz vein systems in the Jaclyn Zone, an area in the northern part of the property where much of the reported exploration has taken place.
On Thursday, the company said results include anomalous gold in soil samples from a new target area in the southwest region of the project. The majority of soil samples from two reconnaissance sample lines in this target area returned anomalous values for gold, including all 11 samples from one approximately 570 metre-long line.
Investors reacted by sending Great Atlantic shares up 140% or $0.07 to 12 cents in early afternoon trading Thursday on volume of over 12 million shares. That made Atlantic the day’s most actively traded stock on the TSX Venture Exchange.
The shares are trading in a 52-week range of $0.05 and 16.5 cents.
Atlantic Resources, as the name suggests, is a project generator with a focus on exploration in Newfoundland and New Brunswick. The company recently completed a 2018 diamond drilling program at is Keymet property near Bathurst, New Brunswick, where exploration has focused in an area of reported polymetallic veins. The property contains the former Keymet Mine, which operated during the mid-1950s, producing copper, lead, zinc and silver. Production was terminated due to a fire at the site.
Back in February, Great Atlantic granted Explorex Resources Inc. [EX-TSXV] the option to earn a 75% interest in the Kagoot Brook cobalt project, which covers 4,233 hectares and is located in north-central New Brunswick.
On Thursday, the company said the 2018 exploration program is ongoing at Golden Promise with assays pending for additional soil and rock samples.
The first 2018 analytical results included numerous anomalous soil samples from one area in the southwest region of the project, confirming a new target area. The majority of samples from two northwest-trending reconnaissance soil lines in this new target area returned anomalous values for gold.
Eight of nine soil samples along an approximate 430-metre section from the northern most sample line returned anomalous values of 5-77 parts per billion (ppb) gold with four samples in the 10-77 ppb range.
Great Atlantic said access to the Golden Promise gold project is excellent. The Trans Canada Highway is within 1 km of the project. The property is also accessible via dirt roads and a paved provincial highway that transects the project.