GGX Gold Corp. [GGX-TSXV, GGXXF-OTC] said Thursday July 4 that it is planning to test new technology on a newly discovered geophysical anomaly at its Gold Drop property in southern British Columbia.
GGX shares rallied on the news, rising 7.4% or $0.02 to 29 cents.Â The shares trade in a 52-week range of 15 cents and 42 cents.
GGX said it will use the Stargate 11 (SG 11) Drill Target Modeling System, which incorporates Acoustic EM analysis. The technology was developed by Earth Science Services Corp. (ESSCO) of Oshawa, Ont.
Stargate 11 surveys acquire data from much greater depths than other geophysical systems. ESSCO says the airborne system makes possible regional scale â€œUltra Deepâ€ (+2,500 metres) ductile level structural trend modeling, which currently relies on costly and time-consuming drilling and down-hole processes.
ESSCO said Stargate 11â€™s superior target discernment capability, together with its proprietary algorithms and software, effectively provides very specific drill point vectors, allowing for a single hole test of the outlined anomaly.
â€œIf the predicted mineralization is encountered, then follow-up drilling is performed, and definition of a new mineral resource can begin,â€ ESSCO said.
In a press release on Thursday, GGX said Stargate 11 surveys were performed by ESSCO over the Republic Graben trend in Washington state and in British Columbia in 2014 and 2015 at 1 km and 500-metre line spacings.
The company said a resultant geophysical anomaly on the Gold Drop property was supplied by Glenn Galata of ESSCO. It measures 1,834 by 1,377 metres and is located along strike from the C.O.D. vein trend. The COD vein is situated on the South West Zone at Gold Drop.
â€œTesting the target will require drilling to a depth of at least 400 metres and up to 764 metres â€“ the deepest hole ever to be drilled on the Gold Drop property,â€ GGX said.
GGX is a gold exploration company primarily focused on southern B.C.
Gold Drop is the juniorâ€™s most advanced project. It is located 40 km from Grand Forks 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 a June 6, 2019, news release, GGX Gold said it had completed 20 diamond drill holes on the C.O.D. vein. Highlights from drilling in 2018 include drill hole COD18-67, which returned 1,154 g/t silver and 823 g/t tellurium over 7.28 metres.Â The company said further exploration drilling is planned to further test the southern extension of the C.O.D.
In addition to drilling this spring, GGX said it intended to establish small scale production, using hopper/feeder module which can run at four tonnes per hour.
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.