QMX Gold up 78% on Quebec drilling news
QMX owns the Aurbel gold mill and tailings facility located 15 km east of Val d'Or, Quebec. Source: QMX Gold Corp.
QMX Gold Corp. [QMX-TSXV; QMCQF-OTC; 3LQ-FSE] shares soared in heavy trading Tuesday August 18 after it released new drill results from the Bonneford deposit on its 200 km2 land package near Val d’Or, Quebec.
Highlights include drill hole 17315-20-121, which was completed to test the deposit at depth and to provide structural and geological data to advance the geological and grade-model of the deposit. It returned an overall average grade of 1.48 g/t gold over 1,109.6 metres in the Bonneford intrusive.
DDH 17315-20-121 also intersected multiple enriched zones including a high-grade zone within the current pit shell: 6.48 g/t gold over 73.2 metres (measured along the hole). Another high-grade zone was intersected at depth: 35.56 g/t gold over 4.0 metres at 1,050 metres (measured along the hole).
Results extend the tonalitic intrusion substantially between a depth of 550 and 1,100 metres, well below the limits of previous drilling.
Investors reacted by sending QMX Gold shares up 78% or 14 cents to 33 cents on volume of 15.3 million, making QMX the most actively traded stock on the TSX Venture Exchange on Tuesday morning. The shares had previously traded in a 52-week range of 20 cents and $0.04.
QMX is backed by a shareholder group, including Eldorado Gold Corp. [ELD-TSX; EGO-NYSE], Osisko Gold Royalties Ltd. [OR-TSX; OR-NYSE] and Probe Metals Inc. [PRB-TSXV; PROBF-OTCQB].
Eric Sprott and O3 Mining Inc. [OIII-TSXV] emerged as strategic investors after participating in a recent bought deal offering that raised $6 million for Quebec exploration.
QMX also owns the Aurbel gold mill and tailings facility 15 km east of Val d’Or. O3 has an option to acquire the Aurbel facility for $5 million. However, if the option is exercised, QMX maintains access to 650 tonnes per day.
In July, 2019, QMX announced a NI 43-101-compliant resource estimate for its Bonneford South property located on the eastern portion of QMX’s land package, about 25 km east of Val d’Or and less than 25 km from the Aurbel mill. The property hosts Indicated Resources of 4.75 million tonnes at 1.69 g/t gold or 258,700 oz. Inferred Resource are 2.4 million tonnes at 1.87 g/t gold or 145,100 oz.
The company has said it hoped to announce an upgraded and expanded estimate by summer of 2020.