FireFox Gold Corp. [FFOX-TSXV] on Thursday January 3 reported new results from a 2018 field program at its 100%-owned Mustajarvi gold project in the Central Lapland Greenstone Belt in Finland.
The company said sampling along two intersecting mineralized structures has identified high-grade gold. This expands the range of possible drill targets as well as the overall size potential of the gold system, the company said in a press release.
FireFox shares rallied on the news, rising 7.41% or $0.02 to 29 cents. The 52-week range is 35 cents and 27 cents.
Having recently completed an initial public offering that raised $2.1 million from the sale of 5.3 million units priced at 40 cents per unit, FireFox is focused entirely on gold exploration in Finland. In addition to its Mustajarvi Project, FireFox has entered into option agreements with Magnus Minerals, a private prospect generator company in Finland, through which it has options to acquire 100% interests in several projects (subject to an NSR royalty) that currently encompass approximately 104,000 hectares.
In order to complete the combined options, the company must invest $4 million in exploration on the properties and make cash payments to Magnus of up to $450,000 over the course of two separate three-year option periods. The company also controls approximately 4,000 hectares of exploration reservations and exploration permits held directly by its Finnish subsidiary.
FireFox geologists collected a total of 108 samples at Mustajarvi during the 2017 and 2018 field seasons. This included 66 grab samples from glacial erratic boulders and rocks excavated from a small historic pit on the property, and 42 chip channel samples collected along, and perpendicular to, exposed veins and structures.
Gold values in the grab samples ranged from <0.005 to 79.8 g/t, with 16 samples grading above 1 g/t gold, including 10 samples grading above 10 g/t gold. Chip channel sampling along one portion of the 0.2 to 1.0 metre-wide vein system yielded consistent mineralization along strike for at least 45 metres, averaging 21.6 g/t gold and ranging from 0.66 to 140.5 g/t gold.
The channel sampling also identified high grade gold along a northwest striking cross structure, expanding the range of possible drill targets and size potential of the Mustajarvi gold system, the company said.
“Our work at Mustajarvi has moved swiftly, thanks in part to the excellent access and shallow overburden, but the team has done an incredible job to advance the historical prospect to be FireFox’s first drill target,” said FireFox CEO Carl Lofberg.
“In addition to the several historic drill intercepts containing more than 12 g/t gold reported in our technical report, we now have strong gold mineralization at surface of up to 140.5 g/t gold along two intersecting structures,” he said. “We look forward to learning more from our first round of core drilling, which has already commenced.”
Mustajarvi consist of a single exploration permit, covering 146.52 hectares of flat, glacial till-covered terrain in the Lapland region of northern Finland, 17 km east of the town of Kittila, with road and power on the property.