White Metal Resources Corp. [WHM-TSXV; TNMLF-OTC] rallied sharply Friday November 2 after the company released a report on its initial due diligence grab sampling from its recently optioned Little Joanna gold property in Central Newfoundland.
The company said a total of seven grab samples, all with anomalous gold (+40 ppb gold) were collected from quartz-bearing sedimentary rocks, and range from 40 ppb gold to 229.3 g/t gold, averaging 48.5 g/t gold. The highest grade sample (229.3 g/t gold) contained visible gold and was collected from subcrop near the main showing, whereas the next two highest grade samples (38.7 g/t and 70 g/t gold) were collected from outcrop of quartz being sedimentary rocks.
White Metal shares rallied on the news, rising 70% or $0.035 to 8.5 cents on volume of 5.8 million.
The little Joanna property covers 280 claim units, or 7,000 hectares and is located about 25 km northeast of the town of Glenwood. It is also 45 km northeast of Sokomon Iron Corp.’s [SIC-TSXV] Moosehead gold project, where the discovery hole recently returned 44.96 g/t gold over 11.90 metres from 109.000 to 120.90 metres.
In an October 23, 2018 press release, White Metal said it been granted to option to earn a 100% interest in the Little Joanna property. To exercise the option, the company agreed to make $170,000 in cash payments and issue 1.8 million shares to the optionor, who will retain a 2% net smelter return royalty interest. However, White Metal can purchase 1% for $1 million, and retains the right of first refusal to acquire the remaining 1%.
The Little Joanna gold property is a new high-grade gold discovery in an area where there has been little known exploration. The main Little Joanna showing is a 25 to 31-centimetre wide compact quartz vein within a highly altered, carbonated sedimentary melange of shale, conglomerate and siltstone.
Hand trenching by the vendor exposed the vein for a couple of metres.
Fine, visible gold is observed throughout the vein and selected grab samples by the vendor assayed up to 734 g/t gold; average sampling of the quartz vein is approximately 189 g/t gold.
As much of the property is covered by overburden, the company believes the potential exists for the discovery of additional gold-bearing quartz veins. Past work on the property by Noranda Exploration (1988-89) reported up to 44 g/t gold in boulder samples and outlined 1.15 g/t and 5.2 g/t gold basil till sample anomalies.
Meanwhile, White Metal said drilling has begun at its 100%-owned Shebandowan gold property in northwestern Ontario. It will consist of three holes or 500 metres and will follow up in an area where former owner Benton Resources Inc. [BEX-TSXV] intersected a gold zone assaying 19.5 g/t gold over 0.80 metres at a depth of 262 metres in drill hole SH-11-003. The current program will be focused on drilling up-dip from hole SH-11-003 in order to test for the near surface expression of the gold zone.