Prosper Gold Corp. [PGX-TSXV] has released impressive results from drilling at its Currie Project southwest of Matheson, Ontario.
Investors reacted by sending Prosper shares to a high of 14 cents Tuesday November 6 on volume of almost 1.4 million shares traded. In early afternoon trading, the stock had slipped back to 12 cents for a gain of 26%.
In a press release on November 5, 2018, Prosper said it has completed the first diamond drill hole, which was drilled steeply southwest to test the intersection between a northwest-striking structure, inferred from earlier drilling results, and an area known as the Grindstone Creek Zone.
Highlights include a 6-metre interval that returned 4.79 g/t gold and 118.4 g/t silver from 177.5 to 183.5 metres.
“We are extremely encouraged by the results of this first hole, especially the association of significant gold values with base metal mineralization,” said Prosper Gold President Peter Bernier. “We will aggressively target the gold mineralization at diabase margins in this underground area of the Timmins Gold Camp,” he said.
Prosper Gold is focusing on high grade gold vein systems as well as bulk tonnage syenite-hosted gold targets.
The 2,000-hectare Currie Project, located 8 km south of the Destor-Porcupine fault, is underlain by altered volcanic and metasedimentary rocks of the Abitibi greenstone belt. It is located 9 km north of Prosper’s recently optioned Egan property, a new gold-in-syenite discovery which was exposed during recent logging activity.
The Currie property hosts the Grindstone Creek occurrence, a gold-silver-zinc zone in massive and semi-massive pyrite-sericite schist, which trends east-west and is hosted by graphite phyllite cut by felsic dykes and bounded on the north and south by volcanic rocks.
The 15 holes drilled previously at Currie occupy an area of about 1 km long and 400 metres wide. Of that amount, seven returned encouraging gold and zinc results.
Diamond drilling at Grindstone Creek has intersected gold and silver mineralization in a 250-metre long northwest trending zone between depths of 100 metres and 350 metres. Targets remain to be tested along strike and down plunge of the historic diamond drill intersections, the company has said.
They include DDH CB-04, which returned 2.08 g/t gold, 19 g/t silver and 0.5% zinc over 18.9 metres, including 3.38 g/t gold, 14 g/t silver and 0.6% zinc over 8.0 metres in 1999/2000.
Under an agreement with the Currie property vendors, Prosper was required to make cash payments of $130,000 and issue 450,000 Prosper common shares over 1.5 years in order to earn a 100% interest in the property. The vendors are retaining a 2% net smelter return royalty, 1% of which can be repurchased by the company for $1 million.