At the end of July, Contact Gold (C.V) released the assay results from the first seven holes drilled on the Green Springs project where partner Centerra Gold (CG.TO, CGAU) is funding the work as part of its US$10M earn-in agreement. The results of the seven holes are summarized below, with only two holes not hitting any significant intercepts.
At the Echo zone, the drill bit continued to encounter gold with for instance 7.6 meters of 0.4 g/t and 19.8 meters containing a strong 0.77 g/t which is good for an oxide gold deposit. These two intervals were encountered about 100 meters downhole though. Hole GS23-04 was also drilled at Echo and the best interval is the 39.6 meters containing 0.38 g/t gold starting at just under 84 meters down-hole. The grade isn’t spectacular but compared to other oxide gold deposits in the state, it should exceed the cutoff grade of economic mineralization. The strip ratio will be important though.
Contact Gold and Centerra also completed two holes at X-Ray and those results were excellent. The location of the holes also means the mineralization now extends further to the east and southeast from the 2021 discovery holes and this should allow the partners to ‘build tonnage’ there. Additionally, the width and grades are excellent as you don’t really see oxide-hosted gold zones with close to 2 g/t in Nevada. The 35 meters containing 1.97 g/t gold encountered in hole GS23-07 is excellent (and not in the least because the mineralization starts less than 17 meters down hole), even the higher grade intervals have some serious juice in them with for instance 10.67 meters containing 5.06 g/t gold which is almost unheard of in Nevada oxide deposits. And as the image below shows, the X-Ray Zone is shaping up nicely with all gold mineralization consistently encountered in the Pilot Shale.
As per July 23rd, the partners completed almost 3,400 meters of drilling in 24 holes (which includes an additional nine holes drilled at X-Ray) and the entire 4,500 meter drill program should wrap up soon. As per Contact’s most recent press release, the drill rig was working on the Tango Zone.
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