GGX advances on Gold Drop drilling news

Diamond drilling on GGX Gold's Gold Drop property near Greenwood, southern British Columbia. Source: GGX Gold Corp.

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Diamond drilling on GGX Gold’s Gold Drop property near Greenwood, southern British Columbia. Source: GGX Gold Corp.

GGX Gold Corp. [GGX-TSXV; GGXXF-OTC] on Monday June 4 said it has completed two diamond drill holes on the COD vein, located on the SouthWest Zone at the company’s Gold Drop property in southern British Columbia.

GGX Gold shares advanced on the news, rising 4.35% or $0.005 to 12 cents on volume of 769,700. The 52-week range is 9 cents and 23.5 cents.

GGX is a gold exploration company primarily focused on southern B.C.

It’s most advanced project is the Gold Drop Project located 40 km from Grand Forks and 9 km northeast of Greenwood in geologically prospective ground in the well mineralized Greenwood District. The project covers 2,150 hectares and was mined intermittently from 1919 to the 1980s, producing 7,572 tonnes from three veins (Amandy, North Star and Gold Drop). Most of the production occurred before 1942.

In addition to drilling this spring, GGX has said it intends to establish small scale production, using hopper/feeder module which can run at four tonnes per hour.

A prospecting program in 2017 located the historical COD mineshaft and several new vein exposures.

Following the receipt of prospecting assays, including 19.65 g/t gold from the COD vein outcrop, the company immediately moved into a trenching and sampling program on the COD vein. Channel samples from the COD vein returned numerous high-grade intercepts, including 43.2 g/t gold and 224 g/t silver.

To date, 37 diamond drill holes, totaling 2,393 metres have been completed during the 2018 diamond drilling program. The program was designed to test the COD structure. The latest series of diamond drill holes were drilled from a pad located 100 metres south of COD trenches completed in 2017.

These holes targeted an area of historical exploratory trenches. The highlight of the latest series of holes is DDCOD18-37, which extended the COD vein 135 metres further south. The hole intersected a 3.16-metre quartz vein intercept.

The company said the core is currently being split and securely packaged for shipment to ALS laboratories in Vancouver.

On May 17, 2018, the company said it had arranged a non-brokered private placement of 4 million units at 12 cents per unit for gross proceeds of $480,000.  It said the units would be comprised of one share and a full share purchase warrant, which may be exercised for three years at 15 cents per share.

GGX was previously known as Revolver Resources Inc. That was before the company changed its name in October 2016. The Gold Drop property is subject to an option agreement between GGX and Ximen Mining Corp. [XIM-TSXV], dated June, 2016. Under the agreement, GGX gained the right to acquire a 100% interest by making payments of cash and shares to Ximen over a four-year period, and committing to a spend $1 million on the property. Under the deal, Ximen retained a 2.5% net smelter return royalty, but granted GGX the option to purchase 1% of the royalty for a payment of $1 million.

Ximen also retained the right to form a joint venture with GGX by reimbursing GGX for 30% of the total amount spent on the property.

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