P2 Gold Inc. [PGLD-TSXV] on Friday announced a significant increase in the estimated resource at its Gabbs gold-copper project, which is located in the Walker-Lane Trend in Nevada.
The company said the new estimate is the first update to be announced since the company acquired the project in 2021. It is driven by recent drilling, metallurgical test work and an increased understanding of the geological controls on the gold-copper mineralization.
According to the latest pit constrained estimate, the indicated resource now stands at 1.12 million ounces of gold equivalent (AuEq) or 0.65 million ounces of gold and 266.7 million pounds of copper (43.4 million tonnes grading 0.47 g/t gold and 0.28% copper). That includes an oxide indicated resource of 576,000 ounces of AuEq or 0.39 million ounces of gold and 127.9 million pounds of copper (20.1 million tonnes, grading 0.61 g/t gold and 0.29% copper.
The inferred resource now stands at 1.64 million ounces of AuEq or 0.88 million ounces of gold and 376.1 million pounds of copper (69.9 million tonnes grading 0.39 g/t gold and 0.24% copper).
The project was previously estimated to contain an inferred resource of 1.81 million ounces of gold equivalent or 1.26 million ounces of gold and 422.3 million ounces of copper.
The Gabbs Project consists of 355 unpatented lode mining claims and one patented lode mining claim covering four known zones of mineralization and spanning approximately 2,800 hectares. The gold-copper mineralization at three of the zones, Sullivan, Lucky Strike and Gold Ledge, is hosted within what are interpreted to be sills associated with an alkaline gold/copper porphyry.
The gold mineralization at the fourth zone, Car Body, is interpreted to be low sulphidation epithermal mineralization.
The updated estimate is based on four diamond drill holes and 27 reverse circulation holes that were completed in 2021, plus 494 drill holes completed by previous operators between 1970 and 2011.
The majority of the increase in the updated estimate occurred at the Sullivan Zone where the company drilled 27 holes in 2021. The inferred resource at the Lucky Strike Zone also rose in the new estimate whereas the inferred estimate changed only nominally at Car Body and Gold Ledge.
Oxide mineral resources at Gabbs now consist of 576,000 AuEq ounces in the indicated category and 260,000 ounces AuEq in the inferred category.
P2 is a grassroots mineral exploration company that is focused on precious metals discoveries in the Pacific Northwest of North America, including British Columbiaâ€™s fabled Golden Triangle region.
P2 CEO Joseph Ovsenek is the former President and CEO of Pretium Resources Inc. [PVG-TSX].
On February 10, 2022, P2 Gold shares closed at 65 cents and currently trade in a 52-week range of 83 cents and 34 cents.