GT Gold Corp. [GTT-TSXV, GTGDF-OTC] gave back some gains Tuesday September 11 following a strong market reaction to drill results released on September 10, 2018, from its Tatogga property in B.C.’s Golden Triangle region. GT said Tuesday it is raising $6 million in a bid to advance the Tatogga property.
The announcement of a new gold-copper-silver porphyry discovery on the Tatogga Project’s Saddle Target sent GT Gold shares soaring to 85 cents on Monday, up from 53 cents before drill results were announced. That activity preceded a trading halt ahead of news that the company was planning to raise $3.5 million from a private placement financing.
However, due to strong investor interest, the company issued a press release on Tuesday saying it now expects to raise up to $6 million from a placement comprised of 2.98 million common shares, up to 3.9 million flow-through common shares and up to 1.05 million charity flow-through shares.
The three classes of shares in the private placement will be offered at 67 cents, 77 cents and 95 cents respectively, the company said.
When trading resumed on Tuesday, the stock was down 8.0% or $0.06 to 69 cents in early afternoon trading on volume of 1.2 million as investors took some gains off the table.
GT Gold is focused on B.C.’s Golden Triangle area. Its flagship asset is the wholly-owned Tatogga property, which contains a high-grade gold discovery known as the Saddle prospect. The Saddle discovery consists of two parts: a high-grade, near surface epithermal gold-silver vein system at Saddle South and, close by at Saddle North, a largely covered, porphyry copper-gold-silver mineralized system.
On September 10, the stock rallied after the company reported a new porphyry discovery that is known to come to surface beneath thin glacial sediments and has been intersected in multiple holes along a 400 metre strike length, to over 700 metres true width, and to greater than 900 metres down hole. Mineralization remains open along strike and at depth.
Drilling highlights include 0.42 g/t gold, 0.26% copper, 0.62 g/t silver (0.82 g/t gold equivalent) over 822.19 metres, from 78.87 to 901.06 metres in hole TTD085.
That included 0.67 g/t gold, 0.41% copper, 0.89 g/t silver (1.30 g/t gold equivalent) over 430 metres from 467.50 metres to 897.50 metres.
“These terrific Hole 85 results and visual intercepts in holes 90, 93 and now hole 98, indicate possibly the most important new copper-gold-silver porphyry discovery in the northern part of the Golden Triangle since the discovery of the nearby Red Chris deposit, which is within sight of our property,” said Charles Greig, Vice-President of Exploration for GT Gold.
“The scale and grade of the Saddle North intrusion is outstanding, and we believe the best of it is intact, at surface beneath thin glacial sediments and to depth,” he said. “We see tremendous upside for expansion, and again, as was the case with Red Chris, further grade increases at depth.”
Greig said the company has a number of “enviable” options in front of it. They include near-surface bulk-tonnage, and potential deep high-grade underground-style gold at Saddle South, coupled with a massive new copper-gold-silver porphyry system right next door.