GGX Gold Corp. [GGX-TSXV; GGXXF-OTC; 3SR2:FRA] shares rallied Monday January 21 after the company released more drilling results from its Gold Drop property near Greenwood, British Columbia. GGX is a gold exploration company primarily focused on southern B.C.
It’s most advanced project is the Gold Drop Project, which is located 40 km from Grand Forks in geologically prospective ground in the well mineralized Greenwood District. The project covers 5,600 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 year, 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 returned numerous high grade intercepts, including 43.2 g/t gold and 224 g/t silver.
Drilling and trenching during the 2017 and 2018 exploration seasons has led to the discovery of significant gold-bearing structures which are prevalent throughout the property, including the COD and Everest veins, the company has said.
The latest results are from the final four drill holes of the 11-hole November, 2018 drilling program, which tested the COD vein in an area of high-grade gold and silver mineralization.
Highlights included drill hole COD18-70, which returned 107.5 g/t gold and 880 g/t silver over 6.90 metres core length (multiple samples greater than the upper 500 g/t analytical limit for tellurium) in the southwest part of the COD quartz vein.
This high-grade intersection is in close proximity to high-grade intersections in drill holes COD18-45, 46 and 47, indicating the presence of a high grade ore shoot.
The company said the mineralized COD vein system has been traced by drilling and/or trenching for approximately 400 metres strike length and is open to the northeast, at depth and possibly to the southwest.
Investors reacted by sending GGX shares up 25% or $0.025 to 12.5 cents on volume of 2.9 million. The 52-week range is $0.05 and 15.5 cents.
All November 2018 drill holes were collared within 25 metres of prior 2018 drill holes COD18-45 and COD-46. The objective was to define the high-grade mineralization in this part of the COD vein and to provide information on the controls on mineralization.
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 can acquire a 100% interest by making payments of cash and shares to Ximen over four years, 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.