Juggernaut down 48% on Midas drilling news

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Setting up the diamond drill on the Midas prospect in northern British Columbia. Source: Juggernaut Exploration Ltd.

Juggernaut Exploration Ltd. [JUGR-TSXV] was active Tuesday October 9 after the company said exploratory drilling on its 100%-controlled Midas property in British Columbia has confirmed widespread near-surface polymetallic and gold mineralization in multiple drill holes targeting newly discovered zones.

The shares fell 48.39% or $0.15 to 16 cents on volume of 2.87 million. That compares to a 52-week range of 17 cents and 59 cents.

Juggernaut is focused on two project areas – Empire and Midas – which are located south of B.C.’s Golden Triangle region. Both projects were identified within the last two years by prospecting in areas of receding snow and ice covering. Little work has been completed on either project apart from first-pass rock-chip sampling, preliminary mapping and drone imagery.

The Midas property covers 16,653 hectares. Like Empire, it is accessible by logging tracks and is located 10 km from Terrace, or 14 km from power, rail and road infrastructure.

Midas features an 18 by10-km alteration zone of oxidation and quartz-sericite-pyrite alteration. Haywood Securities recently said in a report that the King Solomon Zone is of particular interest, as it hosts a 2.1 by 1.6-km area of polymetallic and gold mineralization that is interpreted to be VMS (Eskay Creek) style and has been defined by both the British Columbia Geological Survey and Juggernaut.

Rock-chip and channel sampling previously revealed a number of visible gold showings and high-grade gold mineralization, including 4.34 metres grading 10.28 g/t gold and 3.11 metres grading 5.43 g/t gold (including 0.55 metres, grading 14.55 g/t gold).

A 2018 exploration program expected to cost $3.5 million was designed to test several targets at both the Empire and Midas properties that will help the company rank each target for follow up work.

On Tuesday, the company said drilling at Midas has confirmed mineralization seen at surface continues to depth and remains open, both along strike and to depth.

The most significant gold mineralization confirmed to date was in drill hole MD-18-16, which returned assays of 0.56 g/t gold equivalent over 35.35 metres.  The assay results of the upper 42.0 metres of this drill hole were completed by rush assay, and the remaining results from drill hole MD-18-16, which terminated at 269 metres, are pending.

Meanwhile, the company said recently completed high resolution ground IP and MT data also shows strong, large, well defined geophysical anomalies at depth, below the mineralized intercepts confirmed with the 2018 shallow drilling.

“All this data combined provides very compelling evidence of a large gold mineralizing system at depth,” the company said. “These large, well-defined anomalies remain to be drilled and provide excellent sub-surface targets with strong gold potential,” it said.

Juggernaut said future drill campaigns will focus on testing these anomalies and extending the known mineralization to depth/down plunge, and along strike.

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