Dixie Gold up 33% on Red Lake results
Dixie Gold Inc. [DG-TSXV; YWRLF-OTC] shares rallied sharply in active trading Thursday December 24 after the company said it has outlined multiple gold-in-soil anomalies at its Red Lake Project in northwestern Ontario.
It said the anomalies appear to conform to a northwest-southeast trend line which appear to run parallel in orientation to the known-gold bearing LP fault trend which is being explored by Great Bear Resources Ltd. [GBR-TSXV] on contiguous claims located to the south of the Dixie Gold property.
“The discovery of multiple gold-in-soil anomalies defined by SGH analysis, which appear to form along a trend line and are situated immediately adjacent to Great Bear Resources project, is a tremendously exciting development for Dixie Gold,” said Dixie CEO Ryan Kalt.
Dixie Gold shares advanced on the news, rising 33% or $0.065 to 26 cents on volume of 443,147. The shares are currently trading in a 52-week range of 27.5 cents and $0.065.
The Red Lake Project represents a district-scale exploration opportunity covering 25,269 hectares across 1,241 mining claims. The project is highway accessible and located close to the Town of Red Lake.
On Thursday, Dixie said the discovery of gold-in-soil anomalies in Red Lake resulted from the lab analysis from an inaugural soil sampling program. “While follow-up exploration still needs to be done, our preliminary interpretation suggests that the gold-in-soil anomalies may form either a parallel trend that is similarly northwest-southeast oriented like the nearby LP structure (which is situated glacially down-ice on adjacent claims) or which may prospectively form part of a wider regional deformation zone that may be spatially expansive on a north-south basis (inclusive of potential splays off the LP fault) and which may be classically akin to deformation zone settings seen in other major Ontario/Quebec gold camps,” Kalt said.
The company said results released on Thursday are based on a phase one soil sampling program, consisting of 2,101 soil samples that were assayed by Ontario-based Activation Laboratories Ltd.
He said the company is in the process of formulating exploration plans for 2021 that may further refine and advance the discovered gold-in-soil anomalies as prospective drill targets and expand soil sampling coverage to areas of priority interest.