Contact Gold rallies on Nevada drilling results
Contact Gold Corp. [C-TSXV; CGOL-OTCQB] on Tuesday May 18 reported drill results from the first six holes of the 2021 drill program at its Green Springs gold project in White Pine County, Nevada.
The 2021 program is focused on the northern end of the 3.0-km-long Mine Trend at Green Springs. The Mine Trend is a north-south corridor of gold mineralization extending from three past-producing open pits and encompasses the Bravo, Charlie, Delta, Echo and Zulu sub-zones.
Drilling in 2020 expanded the Mine Trend from 2.0 to 3.0 km through new discoveries at the north and south ends of the trend.
Highlights from Tuesday’s news release include 1.45 g/t gold over 47.24 metres in hole GS21-05 from a downhole depth of 50.29 metres at the Mine Trend, including 1.68 g/t over 38.1 metres (83% gold recovery in cyanide).
Contact shares rallied on the news, rising 6% or $0.005 to $0.09 on volume of 140,200. The shares are trading in a 52-week range of 27.5 cents and $0.085.
“These results represent the successful implementation of advanced modelling efforts that are being incorporated into our 2021 drill program to intersect thicker and high-grade portions of the Green Springs gold system,” the company said in a press release.
Contact Gold said it has managed to extend gold mineralization along a key east-west-striking cross structure, which was originally identified in drill hole GSC20-05, and which returned 2.34 g/t over 33.53 metres.
Green Springs is near the southern end of the Cortez Trend of Carlin-type gold deposits in White Pine County. The project is located east of Fiore Gold Ltd.‘s [F-TSXV; FIOGF-OTCQB] Pan Mine and Gold Rock Project and south of Waterton Precious Metals Fund 11 Cayman LP’s Mount Hamilton deposit.
Green Springs is an early stage exploration property covering 18.5 km2 and encompasses shallow past-producing open pits and numerous targets that were not mined.
Contact Gold signed a purchase option agreement with Ely Gold Royalties Inc. [ELY-TSXV; ELYGF-OTC] allowing it to acquire 100% interest in Green Springs in July, 2019.
The 2021 Green Springs program is designed to follow up on a successful 2020 program that intersected wide intervals of oxide gold mineralization above 2.0 g/t gold that were originally discovered at Echo in 2019 (5.05 g/t gold over 39.6 metres) and have been expanded by Contact Gold in each successive drill program.
Drilling in 2020 also delivered the highest grades from Bravo (10.7 g/t gold over 4.57 metres) and Charlie (2.3 g/t gold over 33.5 metres). Outside of the Mine Trend, the Alpha Zone also returned similar gold grades and widths, including 2.1 g/t gold over 21.3 metres.
The company said 47 drill holes have been completed in the 2021 program so far, for a total of 5,856 metres.