Evrim Resources Corp. [EVM-TSXV] was an active trader again Tuesday as investors continue to digest early stage exploration results from its 100%-owned Cuale high sulphidation epithermal gold project in Jalisco Mexico.
On Monday, April 16, 2018, Evrim shares jumped to a 52-week high of $1.55 from Friday’s close of 92 cents after the company announced trenching results that returned 13.61 grams per tonne gold over 106.2 metres in an area known as the “La Gloria” prospect.
Not surprisingly, some investors elected to take profits Tuesday, sending the shares down 11.43% or $0.16 to $1.24 on active volume of 748,674. At current levels, investors who bought in at the 52-week low of 19 cents have been handsomely rewarded.
Cuale is an early-stage exploration property that is prospective for high sulphidation epithermal gold-silver. It was initially staked under the Callinan Royalties Generative Alliance (now owned by Altius Minerals Corp. [ALS-TSX]), with formal title granted to Evrim for 100% ownership in November, 2017.
Cuale covers 97 square kilometres and is located 185 kilometres west of Guadalajara in the Cordillera Madre del Sur.
The project is located in the same region as Agnico-Eagle Mines Ltd.’s (AEM-TSX, AEM-NYSE) Barqueno project (663,000 ounces of gold and 2.2 million ounces of silver) and Endeavour Silver Corp.’s [EDR-TSX, EXK-NYSE] Terronera project (37 million ounces of silver and 311,000 ounces of gold). It also benefits from what Evrim has described as excellent infrastructure, with roads and power lines crossing the property.
Evrim’s ownership is subject to a 1.5% net smelter royalty for precious metals and a 1.0% net smelter royalty for base metals, payable to Altius Minerals.
In a November 23, 2017 news release, the company said gold mineralization from sampling at the La Gloria prospect indicates significant potential for an oxidized high sulphidation gold system at the Cuale project.
It said rock chip sampling has defined a 500-metre by 250 metre zone of gold mineralization with all seven samples ranging from 0.19 to 4.56 g/t gold.
The company’s exploration vice-president Charles Funk said early results warrant rapid advancement to define the full extent of mineralization.
“Oxidized high sulphidation deposits are highly valued for their often large tonnages and lower construction costs,’’ he said. “Cuale is a new project for Evrim and the extent of the mineralization over such a broad area presents an uncommonly compelling prospect.”
Monday’s impressive rally came after the company released exploration results from a Phase Two exploration program
Results from two cross trenches show significant widths and consistency of mineralization within the “La Gloria” prospect as well as high grades over shorter intervals. A second line of induced polarization geophysics demonstrates a similar character to the first line and defines additional quality targets.
La Gloria Highlights are as follows:
Trench 4 grades 13.61 g/t gold over 106.2 metres from 29.4 metres along trench
- Including 50 metres grading 26.13 g/t gold from 85.6 metres along the trench
- Including 7.5 metres grading 163.3 g/t gold from 100.6 metres along the trench
Trench 2 grades 2.94 g/t gold over 29.4 metres from 2.0 metres along the trench (entire length of trench)
- Including 17.9 metres grading 4.55 g/t gold from 11.5 metres along trench
The second IP line located 500 metres north of first line defines a 1,200 metre long by 50 to 120 metres deep, highly resistive ledge associated with strong silicification and minor anomalous gold at surface and deeper feeder target.
“These new results build on the previous trenching to define consistent outcropping mineralization extending over 106 metres by 263 metres in trenches 1 and 4,” said Funk. “This area of mineralization, the new evidence of bonanza grades and the resistivity targets in a project at such an early stage indicates tremendous potential at Cuale,” he said.
“Evrim will proceed immediately with drill permitting, additional geophysics and exploration with a view to drilling the property in the coming months.”