ATAC Resources Ltd. [ATC-TSXV] on Tuesday July 17 announced results from a key area of its 1,700 km2 Rackla gold property in the Canadian Yukon Territory. The Vancouver-based company said it intersected 23.59 metres of 9.50 g/t gold during step out drilling on the Conrad deposit, which is located on its Osiris Project.
ATAC advanced on the news, rising 5.77% to 55 cents in early trading Tuesday. The 52-week range is 89 cents and 45.5 cents.
Osiris is one of three separate projects located within its Rackla Gold Property, where recent work has included drilling on multiple high-grade Carlin-type gold zones and resulted in a positive Preliminary Economic Assessment for the Tiger Gold deposit (measured and indicated resource of 485,700 ounces of gold), which is located on the Rau Project.
An inferred resource of 1.68 million ounces has also been outlined on the Osiris Project, which is also located on the Rackla property, at an average grade of 4.33 g/t gold. The Orion Project, also located on the Rackla property, is subject to an earn-in agreement worth $55 million with Barrick Gold Corp. [ABX-TSX, NYSE], entitling Barrick to earn a 70% interest in Orion.
Results announced on Tuesday are from three step out holes from the Conrad drilling program within the Osiris project. Conrad is one of a cluster of four zones located at Osiris. The other three are Sunrise, Ibis and Osiris. Conrad is the most advanced of the four zones.
ATAC is spending $13 million this year on a 20,000-metre diamond drilling program that is designed to identify and expand high-grade gold mineralization on existing zones within the Osiris and Orion Projects. It is also advancing 2017 prospecting discoveries at the Rau Project.
The Conrad Zone hosts the bulk of a pit-constrained resource (1.05 million ounces) outlined so far at Osiris.
Highlights from the three step-out holes announced on Tuesday including near-surface mineralization discovered 90 km to the east of the recently modeled Conrad resource boundaries. The company also said drill hole OS-18-262, which returned 23.59 metres of 9.50 g/t gold, extends the Conrad Middle Zone mineralization 90 metres to the east.
Meanwhile, drilling continues at Conrad, which remains open in all directions.
“With our maiden resource in hand, we are very pleased to establish the expansion potential of the eastern end of the Conrad Deposit,’’ said Julia Lane, ATAC’s Vice-President, Exploration. “The first three holes confirm that exceptional grades continue along strike at the Middle Zone and identify a predictable, easterly trending zone of near-surface mineralization within and adjacent to the eastern end of the resource open pit,’’ she said. “Two drills continue to focus on extending mineralization at both Conrad and Sunrise, while three additional drills continue to target gold mineralization at the Orion Project.
ATAC got a boost recently following the announcement that a proposed 65-km private, all-season tote road to its Tiger Gold Deposit will be allowed to proceed following a joint decision by the Yukon Government and the Na-Cho Nyak Dun (NND) First Nation.
ATAC President and CEO Graham Downs described the decision as a major de-risking milestone for the company and all three projects within its Rackla Gold Property.