Canadian Gold Resources up 14.3% on Quebec bulk sample permit news
Canadian Gold Resources Ltd. [CAN-TSXV] said Tuesday it has received all required permits from the Government of Quebec to proceed with a bulk sample program at its 100%-owned Lac Arsenault gold project, which is located in the Gaspe region of eastern Quebec. The company said it plans to test between 5,000 and 10,000 tonnes of mineralized material. It said the bulk sample is intended for exploration purposes only and is not considered a production decision.
On Tuesday, the shares jumped 14.3% or $0.02 to 16 cents. They trade in a 52-week range of 65 cents and 12 cents.
The Lac Arsenault project hosts multiple high-grade epithermal-style vein systems, including the Baker, Mersereau, and Dunning veins. The project lies along the Grand Pabos Fault, a regional structure within the Gaspe-Newfoundland tectonic belt that shares the characteristics with other productive gold systems, such as the Calillac-Larder Lake Fault Zone (Abitibi) and Cape Ray-Valentine Lake Shear Zone (Newfoundland), which are known to host multi-million-ounce deposits.
Canadian Gold said that while it is encouraged by the opportunity to generate technical and metallurgical data from the bulk sample, no economic analysis has been completed and there are no mineral reserves at Lac Arsenault. Any references to possible revenue from sample processing are entirely speculative and do not demonstrate economic viability.
“Receiving this permit is a major milestone in the advancement of our Lac Arsenault Project,” said Canadian Gold President and CEO Ron Goguen. “This program is designed to evaluate the technical and geological characteristics of the near-surface mineralization,” he said. “Historical work conducted by Imperial and Esso Minerals in the 1970s reported a historical estimate of 40,000 tonnes, grading 15.43 g/t gold and 197 g/t silver. A subsequent 1996 report revised the estimate to 199,580 tonnes of grade 9.59 g/t gold, or approximately 61,536 contained ounces.” Goguen went on to say that while these historical estimates do not comply with current CIM standards, they indicated strong historical interest in this high-grade system. “Additional core drilling, systematic surface sampling, and database verification will be required to validate the data and assess whether current resources can be defined,” Goguen said.
To bring these historical estimates into compliance with current CIM standards, the company anticipates conducting the following:
- Systematic diamond drilling to confirm historical grade and geometry of the mineralized zones;
- Verification sampling of archived and in-situ material if available;
- Construction of a validated digital geological model based on modern logging and QA/QC procedures;
- Density determination and geostatistical analysis in accordance with current best practises;
- Independent resource estimates by a Qualified Person, using current CIM Categories and estimation methods.
The company said it believes the planned exploration bulk sample will provide critical geological, grade continuity, and metallurgical information to support this process.
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