Contact Gold (C.V) has released the assay results from 17 holes drilled on the Tango zone, an area of the Green Springs gold project that has never been drilled before. Of the 17 holes, 16 have actually encountered gold mineralization for a very impressive hit ratio of 94%. Most of the holes encountered gold value that would be seen as above cutoff grades for the average Nevada oxide gold systems.
The almost 55 meters containing 0.55 g/t gold is an excellent result, especially considering the mineralization started at a downhole depth of less than 20 meters. The 13.7 meters containing 1.01 g/t are also excellent and even lower grade zones like the almost 14 meters at 0.40 g/t gold should theoretically end up on a leach pad.
The cyanide recovery levels are relatively low compared to other areas at Green Springs, and this is likely caused by the fact the gold is hosted in the Pilot shale rather than the Chainman shale (where CN recovery rates tend to be higher). Of importance is the size of the discovery as Contact Gold is mentioning a 250 meter by 500 meter surface area, and it looks like the company expects the mineralization to continue towards the northern end of Tango as Contact has staked additional land.
This was the very first time ever the Tango zone has been drilled, and it clearly was a success as the drill program encountered a consistent zone of gold mineralization close to surface.
Disclosure: The author has a long position in Contact Gold. Contact is a sponsor of the website. Please read our disclaimer.
