BTU Metals Corp. [BTU-TSXV] has launched its maiden drill program at the Dixie Halo Project near Red Lake, northwestern Ontario.
Mobilization of a track-mounted core drill supplied by Forage M3 Drilling Services Inc. of Hawkesbury, Ontario, is underway. The drill rig is now on site and drilling is scheduled to commence immediately, BTU said in a press release on July 10, 2019.
On Thursday July 11, BTU Metals shares advanced 12.2% or $0.02 to 18.5 cents on active volume of 441,610. The shares are trading in a 52-week range of $0.035 and 17.5 cents.
The announcement comes after BTU recently picked up more ground in the emerging Dixie discovery area of Red Lake, via the acquisition of Burgundy Exploration Corp.
As a result, BTU said it has been able to acquire an additional 4,163 hectares of prospective and geographically targeted mineral claims.
The additional mineral claims acquired through the Burgundy acquisition are now referred to as the Dixie Halo Southwest extension.
BTU has attracted investor attention because Dixie Halo adjoins the northern and eastern boundaries of Great Bear Resources Corp.’s [GBR-TSXV; GTBDF-OTC] 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.
In a November 6, 2018 press release, BTU said its personnel have been actively working with historical reports and data from the Red Lake area and have highlighted priority targets for immediate action. In the same press release, the company said it now has a team of geologists and prospectors on site to follow up on these targets and help to guide drone operators also now on site.
“Our findings to date demonstrate the Dixie Halo Project is host to an environment very similar to that associated with the important gold discoveries of our neighbour Great Bear Resources at their Hinge Zone and Bear-Rimini Zone,” said Doug Hunter, a director and Vice-President, Exploration at BTU.
“We are very excited to now be in a position to test our theories and concepts with the drill,” he said.
The first target to be tested is located approximately 2.5 km southeast of the Hinge Zone. Available records do not show any historic drilling or sampling work within at least 1 km of the proposed location of the target.