BTU Metals Corp. [BTU-TSXV] shares rallied in active trading Thursday November 28 after the company said it has discovered compelling evidence of a notable volcanogenic massive sulphide (VMS) target at its Dixie Lake Halo Project, near Red Lake, northwestern Ontario.
The company said partial results have been received so far from drill hole 13 showing elevated copper, gold and silver numbers. The company said it is waiting for the remaining results for over-limit assays for numerous copper intervals. It said additional drill permits have now been received and drilling has commenced at this location.
BTU shares advanced on the news, rising 11.5% or $0.015 to 14.5 cents on volume of 2.8 million. The shares are currently trading in a 52-week range of $0.065 and 23.5 cents.
BTU has attracted investor attention because Dixie Halo adjoins the northern and eastern boundaries of Great Bear Resources Corp.‘s [GBR-TSXV] Dixie Lake Project, where Great Bear recently reported a high-grade gold discovery in drill core assaying 16.35 metres of 26.91 g/t gold and 7.0 metres of 44.47 g/t gold in two holes on the Hinge Zone.
Great Bear has secured the backing of Bay Street financier Rob McEwen and McEwen Mining Inc. [MUX-TSX]. They collectively own 18.8% of Great Bear on a partially diluted basis following their joint participation in a $10 million private placement financing.
BTU recently said exploration so far indicates that the Dixie Halo Project is host to an environment very similar to that associated with the important gold discoveries of neighbour Great Bear Resources at their Hinge Zone and Bear-Rimini Zone.
In order to test that theory, the company launched a maiden drill program in July, 2019.
On Thursday, the company said the newly discovered prospective area has been named the TNT Target. “It adds a new dimension to BTU’s exploration campaign and is a testament to the potential for discoveries on the Dixie Halo property,” said BTU CEO Paul Wood.
“While we continue to pursue our gold targets, soon to be aided with the SGH survey analysis, we are now eager to also pursue the potential of a VMS situation at the TNT Target,” he said.
However, Wood said it should be stressed that drilling to date has only been completed on what appears to be the north-western extremity of the target. Drilling completed so far on the new TNT Target is located near the north extremity of a feature known to be at least 800 metres in length and with interpreted widths of up to 100 metres or more.
The company said drilling of holes 12 and 13 have identified polymetallic mineralization, including chalcopyrite, copper and gold, which is extremely rare. BTU reacted by commissioning a VTEM survey which it said has shown further evidence of a potential VMS target.