Canterra Minerals (CTM.V) announced the assay results of the first seven drill holes drilled on its Wilding gold project in Newfoundland. All seven holes were drilled on the Red Ochre complex, on the western end of the Wilding claims and pretty close to Marathon Gold’s (MOZ.TO) flagship Valentine Lake gold project.
As you can see on the image below, six of the seven holes Canterra has reported on contained gold but although the 11 meters of 1 g/t gold and 12.3 meters containing 0.51 g/t gold are encouraging, those obviously aren’t grades you can start thinking about building a mine. There’s a lot of smoke, but there’s no fire yet.
This doesn’t mean Canterra is disappointed with the assay results as the first few holes were pretty much in line with the historical intervals encountered in that area. Canterra is still expecting to receive the results of the remaining nine holes of the 16 hole drill program in the next few weeks, and will likely provide a summer exploration update by then. Meanwhile the exploration activities by the ground teams are ongoing and Canterra also provided an update on the assay results of almost 1,500 soil samples which were collected in 2017. These sampling results confirm the expansion of Red Ochre to a total footprint of 1,100 meters by 875 meters and has identified a new exploration target with a total size of 1,200 meters by 700 meters. In total, at least six exploration targets have been defined.
The soil anomalies also confirm it was a good move by Canterra to acquire the East Alder property as the anomalies are trending from the northeasternmost portion of the Red Ochre zone onto the recently acquired East Alder area. It will be a busy summer for Canterra Minerals which saw its share price drop to around C$0.25 for a market capitalization of just around C$13-14M since publishing the initial assay results.
Disclosure: The author has a long position in Canterra Minerals. Please read our disclaimer.
