Osprey Gold Development Inc. [OS-TSXV] was an active trader Tuesday November 20 after the company released assay results from previously unsampled core from its Caribou Gold Project in Nova Scotia.
Results released Tuesday include assays form seven holes sampled from four key areas. A total of 395 samples were submitted for analysis.
The best reported was hole was CM87-23. It returned 70.57 metres of 1.58 g/t gold, or 0.80 g/t gold if utilizing a 70 g/t gold grade cap.
Investors reacted by sending Osprey shares up 33% or $0.06 on volume of 3.57 million, making Osprey the most actively traded stock on the TSX Venture Exchange on Tuesday. The 52-week range is 4 cents and 11 cents.
Sampling this core is a cost-effective step to determining Caribou’s potential to host significant zones of gold mineralization disseminated within the host sediments, between the historically mined high grade veins, the company said.
The results are being used to refine drill plans on these broad mineralization targets within the host sediments, the company said.
Osprey Gold Development is a Canadian junior exploration company focused on past-producing high-grade gold projects in Nova Scotia. It hopes to build a portfolio of advanced projects in mining-friendly jurisdictions that can be developed by larger mining companies.
The company has the option to earn a 100% (subject to certain royalties) interest in five Nova Scotia gold projects, including the Goldenville Project, which ranks as the largest historic gold producer in the province’s history.
According to the NI 43-101-compliant technical report, Goldenville contains an inferred resource of 2.8 million tonnes at 3.20 g/t gold for 288,000 ounces of gold (2,800,000 tonnes at 4.96 g/t gold for 447,000 ounces of gold uncapped). The uncapped resource includes drill core assays over 70 g/t Au.
All five properties in Osprey’s current portfolio have a history of high-grade gold production. The optioned properties are located in the same rock formation as Atlantic Gold Corp.’s [AGB-TSXV] Moose River Consolidated (MRC) Project, an open pit gold project, which is expected to produce 87,000 ounces of gold annually over an 8.5-year mine life at an all-in sustaining cost of US$518/oz.
The current activity at Caribou is the first systematic program undertaken there since the company secured an option to acquire the property in 2017. Caribou produced over 100,000 ounces of gold between 1869 and 1955 according to a technical report. The property hosts an historic inferred historic resource of 94,763 ounces.
Commenting on the Tuesday results, Osprey President Cooper Quinn said they continue to support the company’s thesis that there is significant disseminated mineralization at Caribou, in addition to the high-grade stockwork systems, and veins. “Due to the condition of the on-site stored core, Osprey personnel re-boxed and relogged historic holes before sampling intervals from them,’’ he said.
“Although not all historic core was recoverable, there was sufficient recovered core to verify intervals and to sample, and assay large zones of previously unsampled host rock.”