Apex Resources Inc. [APX-TSXV] said Monday January 22 its joint venture partner Prize Mining Corp. [PRZ-TSXV] has intersected high grade gold while drilling on its Daylight gold project in eastern British Columbia, near the city of Nelson.
Encouraging assay results have been obtained from an 18-hole drill program which has tested a number of targets identified from a combination of soil and geochemical anomalies, elevated surface rock samples, geophysical indicators, historical drilling records and surface workings.
Daylight is one of two properties that have been consolidated under one company and one work program, setting the stage for a district-wide exploration approach. The other is the Kena Property.
Apex optioned the consolidated Kena-Daylight property to Prize Mining in September 2016, giving the latter company the right to earn an 80% interest in the property in return for annual cash and share payments and a commitment of $3 million of exploration spending over four years.
The Kena property, covering 8,000 hectares, has a NI 43-101 indicated resource of 481,000 ounces of gold as well as an inferred resource of 1,318,000 ounces gold. It is 45 km north of the Teck Resources Ltd. [TECK.B-TSX; TECK-NYSE] smelter at Trail, B.C.
The Daylight Property covers 1,550 hectares.Â It also hosts a number of vein, stockwork and porphyry-style gold and gold-copper occurrences, including the Starlight, Victoria-Jessie, Daylight-Berlin, and Great Eastern Mines. The four mines operated independently and intermittently, starting in the late 1890s and early 1900s, but closed due to low gold prices in 1949.
Historic mining results suggest that the mineralization on the Daylight property is comprised of broad zones of low grade gold mineralization often surrounding high-grade gold veins of varying sizes. Previous exploration by Apex Resources defined four gold-bearing targets that warrant further exploration, Prize Mining has said.
These are the Starlight Shear Zone, the North Star Shear Zone, the Great Eastern Porphyry Gold Zone and the Silver King Gold Corridor.
Highlights from drill results announced Monday include Hole DL 17005, which intersected 63.7 g/t gold over 0.9 metres at a depth of 46.4 metres on the Great Western Zone. Above this interval, drilling returned 32.6 metres of 1.16 g/t gold, hosted in strongly altered granodioritic rock of the Jurassic Silver King Formation.
The press release also reported: Hole DL17007 on the Great Western zone intersected a 71.22-metre interval of 1.09 g/t gold at 74.28 metres encountered in strongly altered JSK. This interval includes 0.5 metres of 7.36 g/t gold and 4.91 metres of 4.39 g/t gold with a 0.48-metre spike of 21.2 g/t gold associated with quartz-carbonate veining/swarms containing pyrite and chalcopyrite. Also in DL17007, is a deeper 19-metre intercept of 1.0 g/t gold at 168 metres.
“These encouraging results confirm the presence of significant widths of mineralization along both the Great Western/Eastern and Victoria/Starlight/Daylight zones on the Daylight Property,” said Prize Mining Chief Executive Officer Feisal Somji.
“We are particularly excited by the high grade shoots located within the broad zones of gold mineralization,” he said. “We are eager to start a follow up drilling program based on the results of the drill program.”
Prize Mining shares eased 3.03% or $0.01 to trade at 32 cents on Monday.