Contact Gold (C.V) started the Green Springs drill program earlier this quarter and in a recent exploration update, the company confirmed it has already completed 16 holes for a total of 1,160 meters of drilling (indicating the average depth is just around 75 meters per hole).
The majority of these holes (11) were drilled on the Tango Zone which was discovered by Contact Gold in 2021 where the company is aiming to expand or at least increase its knowledge on the 250 x 500 meter zone. An additional four holes were drilled on the X-Ray Zone which also was discovered last year and remains open in all directions.
While the assay results are obviously still pending, the company did confirm its RC drill program has intersected wide intervals of oxidized, silicified and altered Pilot Shale which is the host rock of the gold discoveries made in the past. According to Vance Spalding, VP Exploration, the field team is seeing the exact same type of alteration, oxidation and arsenic values it encountered when the initial discoveries were made, so this bodes well.
The drill rig has now moved to the B-C gap discovery, below the Green Springs mine trend where the holes will be deeper (approximately 250 meters). This will be the end of the Phase I drill program for this year and Contact Gold will develop the next phase once it has received the assay results from the first batch of holes. Contact has also applied to expand its Plan of Operations permit to include the high conviction targets south of the Echo zone while it will also provide more flexibility to drill the Whiskey and Foxtrot targets in the east.
To fund a drill program on the Pony Creek project, Contact Gold has announced a C$1M private placement priced at C$0.05 per unit (we were told insiders will participate for approximately C$250,000). Each unit will consist of one common share as well as half a warrant with each full warrant allowing the warrant holder to acquire an additional share at C$0.075 for a period of two years. This will be the first time in years the Pony Creek project will be drilled, and Contact Gold seems to be keen on capitalizing on the recent acquisition of Gold Standard Ventures (GSV, GSV.TO) by Orla Mining (OLA.TO, ORLA). There’s nothing wrong with some arm waving and with the plan of operations allowing for more flexibility when it comes to drilling, Contact Gold should be able to rapidly increase the current resource which contains 433,000 ounces of gold on an inferred basis.
Disclosure: The author has a long position in Contact Gold. Contact Gold is a sponsor of the website. Please read our disclaimer.
