Contact Gold (C.V) has released the assay results from a geochemical sampling program which was designed to increase the confidence in some of the exploration targets it wants to drill in 2024. The company’s field team collected 268 rock samples for analysis and encountered grades up to 3.64 g/t which – according to the company – is the highest grade rock sample in its project-wide database. Additionally, the samples were collected 190 meters to the East of the current drill pattern at Alpha and that makes this zone a high priority target for a 2024 drill campaign.
On top of that some of the rock samples taken at/ around Alpha encountered high silver grades as well with grades of 10.6 g/t, 12.9 g/t and 14.5 g/t silver which is quite interesting for surface sampling. Contact Gold also mentioned there are an additional 40 samples that have been submitted to the lab but where it hasn’t received any assay results back. Based on the initial findings, the gold in the new rock samples at the Alpha zone is hosted in the contact between the Pilot Shale and Guilmette Limestone, which is exactly the contact zone the company has been focusing on.
On top of the 268 rock samples, the field team also collected 1,178 soil samples and the results of 131 of those samples are still pending as well. But it looks like the company’s interpretation is already clear as VP Exploration Vance Spalding confirms the high-grade rock samples show a pathway to expand the X-Ray-Alpha-Tango corridor while the target size of the Zulu prospect has now expanded to 800 by 400 meters. Needless to say both Alpha and Zulu are high-priority drill targets for 2024.
The company also confirmed Centerra Gold (CG.TO), the partner at Green Springs, has approved participation in the Y2 exploration program as part of its US$10M earn-in agreement to acquire a 70% interest in Green Springs. The Year 2 budget consists of US$2M and plans for up to 5,500 meters of reverse circulation drilling in 40 drill holes. Contact Gold remains the operator and expects the management fee will be sufficient to cover all of its Nevada-based overhead expenses.
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