K9 Gold Corp. [KNC-TSXV, WDFCF-OTC, 5GP-FSE] shares rallied Friday after the company outlined its plan for the upcoming 2022 exploration. The company said it is planning a minimum of 4,000 metres of drilling that will target the Jumperâ€™s Pond area of its Stony Lake gold project in central Newfoundland.
The aim is to follow up on a successful 2021 campaign during which exploration crews intersected multiple wide, well mineralized zones, including 65.10 metres of grade 0.78 g/t gold in hole JP21-022.
K9 shares advanced on the news, rising 11.5% or $0.015 to 14.5 cents. The shares are currently trading in a 52-week range of 75.5 cents and 11 cents.
The announcement comes after K9 recently closed a non brokered private placement financing that raised just shy of $2.0 million. The private placement consisted of 4.28 million non flow through units priced at 14 cents per unit (generating $600,000) and 8.7 million flow-through units priced at 16 cents per unit (generating $1.39 million).
The flow-through and non-flow-through units consist of one common share and one share purchase warrant exercisable for a period of two years at 20 cents per common share until May 25, 2024.
The company said proceeds from the private placement will be used for drilling and exploration on the Stony Lake gold project, particularly in the Jumperâ€™s Pond area, where drilling in late 2021 intersected multiple very wide zones of significant gold mineralization.
The Stony Lake project covers 13,625 hectares and 27 kilometres of favourable trend between Sokoman Minerals Corp.â€™s [SIC-TSXV, SICNF-OTCQB] Moosehead discovery, immediately to the northwest and Marathon Gold Corp.â€™s [MOZ-TSX, OTC-MGDPF] Valentine Lake deposit to the southwest. Excellent infrastructure exists on the project lands and in the surrounding area.
The project has been acquired from District Copper Corp. [DCOP-TSXV] via an option agreement allowing K9 to earn up to a 100% interest in the project.
In a February 14, 2022 press release, K9 said hole DDH JP-12 intersected seven intervals of gold mineralization with six of the seven zones occurring over a core interval of 134 metres. The gold mineralization occurs in a steeply-dipping structural zone and includes 2.58 g/t over a 3.1-metre core interval with a maximum grade of 4.34 g/t over a one-metre core interval.
K9 said the grades encountered in these wide zones are comparable with the reported mineral reserve grades from Marathon Goldâ€™s Valentine Lake project. Both Valentine Lake and Stony Lake lie within the Exploits Subzone Gold District, along the Cape/Ray Valentine Lake structural trend.
K9 also has a 100% interest in the Desert Eagle Vanadium-Uranium project located in the historic Henry Mountains Mining District in southeast Utah.