GSP up 28% on Similkameen drilling update

GSP Resource Corp. [GSPR-TSXV] shares rallied strongly Monday November 18 after the company released an exploration update from its Olivine Mountain Project in southwestern British Columbia. It said mineralized rock has been intersected in two drill holes in an area where previous sampling has confirmed the presence of copper, silver and other metals.

GSP has an option to acquire a 100% interest in and title to the Olivine Mountain Property, which is located in the Similkameen Mining Division, about 25 km northwest of Princeton.

In a press release on November 12, 2019, GSP said it was planning a 1,000-metre inaugural drilling program to test five separate massive copper/nickel sulphide targets across the 3,021-hectare property.

The company said drill crews were targeting the western flank of the project near the Asp 14 showing and targets that were identified during the previous field season which featured a VLF-EM airborne survey, a soil geochemical survey of the entire property, plus mapping and sampling.

The company has said selected samples from the Asp 14 showing assayed 3.51% copper and 11 ppm silver over a sample width of 3.4 metres. One sample confirmed the presence of significant amounts of copper, gold, palladium and anomalous contents of platinum, nickel and cobalt.

Referring to the local geology, the company has said the claims are underlain by rocks of the Alaskan-type Tulameen Mafic/Ultramafic Complex. It said the Tulameen ultramafic complex is one of the only locales in southern B.C. that offers the potential for the discovery of a commercially viable nickel deposit such as those discovered at Voisey’s Bay, Labrador or Norilsk, Russia.

In a progress report released on Monday, GSP said it had anticipated drilling one 100-metre hole in the vicinity of the Asp 14 showing. However, it said drilling at this location was expanded to include a second 100-metre hole.

Drill core from the two holes has been logged and split, and samples are currently being shipped to the laboratory for assaying. It also said the drill rig has now been moved approximately 1.5 km southwest where it is currently testing four separate targets with four 200-metre vertical holes.

“The current program is now expected to total six holes, up from five previously,” GSP said in the progress update.

Meanwhile, it said two completed holes have intersected mineralized rock that was observed as a partially altered fine-med grained gabbro of the Tulameen maif/ultramafic complex. “Zones of pyrite, chalcopyrite, and malachite mineralization ranging from disseminated to semi massive have been identified within an approximately 20-metre thick siliceous shear zone,” the company said.

Investors applauded the results, sending GSP shares up 28.3% or $0.075 to 34 cents on volume of 753,684 shares traded. The shares are currently trading in a 52-week range of 12.5 cents and 44 cents.

“We are pleased to have intersected mineralization on the first of two holes of the drill campaign in the area of the Asp 14 showing,” said GSP President and CEO Simon Dyakowski. “Assay results of the mineralization in this area will be key in determining follow-on work in subsequent phases of exploration,” he said.

Dyakowski went on to say that weather conditions continue to be conducive to drilling, and as a result, crews have been able to modestly expand Phase 1 drilling with the additional drill hole at Asp 14.

GSP shares were listed on the TSX Venture Exchange in November, 2019, that was after the company completed an initial public offering comprised of 2.5 million shares, priced at 20 cents a share, and 1.0 million flow-through common shares priced at 25 cents each.

Under a February 23, 2018 agreement, GSP has an option to acquire a 100% interest in the Olivine Property from privately-owned Platinum Belt Resources Inc.