Transition Metals Corp. [XTM-TSXV; TNTMF-OTC] shares rallied Tuesday January 15 after the company released new assay results from its Highland Gold Project in Cape Breton, Nova Scotia.
Highlights from a rotary air blast drilling program include 9.14 metres, grading 23.22 g/t gold, the company said in a press release.
That included 3.05 metres of 49.54 g/t gold (1.6 oz/ton) at the Main Zone before ending in mineralization at a depth of 21.34 metres.
The hole was completed as part of an initial test program to assess the effectiveness of RAB drilling to recover samples of near surface oxidized and weathered bedrock and to test for a southward extension of a historically identified zone of sub-cropping mineralization called the Main Zone.
Transition shares rose 68.7% or $0.055 to 13.5 cents on volume of 2.13 million on Tuesday. The 52-week range is $0.06 and 20 cents.
In total, seven holes for 200 metres were completed on the property before the onset of winter conditions in the Highlands forced the company to demobilize until weather conditions improve in the spring.
Transition has an option to acquire a 100% interest in the Highland Gold Project, which covers an extensive cluster of high-grade gold occurrences in an area that has seen limited exploration. The project is located 60 km northwest of Sydney and covers 5,408 hectares. It is accessible either by a major road or by a network of logging roads.
“Bedrock in the Highlands displays a high degree of chemical weathering and oxidation comparable to that developed in a subtropical environment,” said Transition CEO Scott McLean.
“Since acquiring the property last fall, our work has highlighted numerous exploration targets associated with mineralized structures, prospective alteration and till anomalies that support the potential for a multi-kilometre scale gold system on the property,” McLean said.
“The Main Zone is one of 30 mineralized zones identified to date on the property,” he said.
McLean went on to say that RAB drilling has proven to be an effective tool in inexpensively and rapidly screen numerous targets moving forward.
Transition recently received the first set of assay results from the continuing drill program conducted by North American Palladium Ltd.’s [PDL-TSX; PALDF-OTC] on the Sunday Lake platinum-palladium project.
Sunday Lake is located 25 km north of Thunder Bay and approximately 95 km south of North American Palladium’s producing Lac Des Iles Mine. he property covers a 3.5-km diameter circular reversely polarized magnetic anomaly associated with a large buried mafic-ultramafic intrusion, which is interpreted to be Proterozoic in age and related to the Mid-Continental Rift.
North American Palladium holds an option to earn a 75% interest in the property and Transition holds a 25% free carried interest through to the completion of a feasibility study.
Transition said results sourced from a North American Palladium’ March 27, 2018, news release include Hole SL-17-18B, which returned 18.65 metres at 4.05 g/t PGM (platinum-palladium-gold), including 4.9 metres at 6.10 g/t PGM and 0.64 % copper.
“These results demonstrate the potential of the Sunday Lake intrusion to host significant economic mineralization and the grades encountered are higher than other similar deposits and mines in the district,” said McLean.
“The geology at Sunday Lake bears many similarities to the company’s 100%-owned Saturday Night project located in similar geology 16 kilometres to the west that we feel may have similar potential.”
The property is located within an emerging platinum group metals camp.