BTU puts drilling focus on new Red Lake gold targets

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BTU Metals Corp. [BTU-TSXV] on Wednesday said it has begun drilling the first Hiewall Lake targets on its Dixie Lake Halo Project, near Red Lake, Ontario.

The announcement comes after BTU said it was planning to complete 2,200 metres of diamond drilling to test a host of new gold exploration targets identified by BTU’s technical team. The targets relate to areas of noted and interpreted alteration and sulphide mineralization often associated with gold mineralization in the area.

“Our team has worked diligently all season with data collected from ongoing field and drill programs and, as a result, selected approximately 10 high priority targets as our next phase of work at Dixie Halo,’’ BTU CEO Paul Wood said recently.

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 m of 26.91 g/t gold and 7.0 m 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 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.

Back in June, 2021, BTU shares rallied after the company said it has discovered compelling evidence of a notable volcanogenic massive sulphide (VMS) target at Dixie Lake Halo. The company said the newly discovered prospective area has been named the TNT Target.

The area south of Hiewall Lake is geologically characterized by the contact between felsic volcanic rocks and clastic metasediments, similar to the geological setting of the LP Fault system of gold mineralization. The gold-in-till results in the area and “down-ice” of the area, contain high counts of gold grains and high proportions of pristine gold grains.

Initial stripping and prospecting in the area has revealed some gossanous areas mineralized with sulphides, the company has said. Grid lines were established and ongoing induced polarization surveys conducted in the area have identified targets that will be tested in the drill campaign.

On October 26, 2021, BTU shares closed at $0.08 and trade in a 52-week range of $0.065 and 20.5 cents.

 


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