SLAM Exploration Ltd. [SXL-TSXV; SLMXF-OTC] shares rallied strongly in active trading Wednesday October 7 after the company said it had encountered visible gold in new vein discoveries at its 100%-owned Menneval gold project in northwestern New Brunswick.
The company said it collected 39 grab samples from trenches on the property. It said 29 samples returned assays in the range of 0.02 to 0.99 g/t gold, 13 returned assays in the range of 1.00 to 363 g/t gold. Two samples, which assayed 53.8 g/t and 363 g/t, confirm the report of visible gold announced in two of the veins that were discussed in a previous news release on August 25, 2020.
The shares jumped on the news, rising 43.7% or $0.035 to 11.5 cents on volume of almost 4.2 million. The shares are currently trading in a 52-week range of 16 cents and $0.01.
SLAM is a project-generating resource company with a portfolio of precious and base metal properties in New Brunswick and Ontario. The company owns the Menneval gold project and Lewis Brook silver project in northern New Brunswick, as well as five gold projects located in the vicinity of Clarence Stream, where Galway Gold Inc. [GLW-TSXV] has reported successful gold drilling results in southern New Brunswick.
In a July, 2020 news release, SLAM said previous drilling on the Menneval Project and a trenching drill program traced gold-bearing quartz veins of the Maisie vein over a strike length of 700 metres and to a depth of 30 metres. At that time, the company said it was proposing to drill a minimum of 600 metres with six and 10 diamond drill holes designed to test the Maisie zone to a depth of 150 metres.
It said the program would be funded in part by a $30,000 grant from the government of New Brunswick.
Results released on Wednesday include three samples which assayed 53.80 g/t gold, 59.30 g/t gold and 363.00 g/t gold. The samples were collected from three separate veins. Another 10 samples collected from seven separate veins returned assays ranging from 1.20 g/t gold to 5.86 g/t.
Based on the new gold discovery, the company said it staked 118 additional claim units covering an additional 2,530 at Menneval, which now consists of 480 claim units covering 10,640 hectares.
Four of the claim units covering 105 hectares are subject to a 1.5% NSR. However, the company can buy down 0.5% of the NSR for $500,000 and it has the right of first refusal on the remaining 1% NSR.
Meanwhile, the company has resumed trenching work on the property, and said it is anticipating a resumption of possible drilling activity to test the new gold occurrences.