Endurance Gold (EDG.V) has confirmed it has started drilling its flagship Reliance gold project in British Columbia. A first (RC) rig has already arrived on site with a second (diamond) rig expected to follow before the end of May.
The two rigs will complete a dual program: the RC rig will complete 40 shallow holes with an average depth of just 70 meters (for a total of approximately 2,800 meters of drilling. The RC The dimond drill program will consist of about 8,000 meters of drilling focusing on expanding the Eagle Zone and drill-test targets along the Royal Shear and the Treasure Shear. The RC rig has already arrived on site and has started drilling the Bona prospect on the aforementioned Treasure Shear. These RC holes are meant to follow up on the channel samples published in the third quarter of last year where the headline result was a result of 8.5 meters containing 4.43 g/t gold.
Endurance Gold is fully cashed up after a C$3M financing (a hard-dollar financing at C$0.40 with half a warrant valid for two years with an exercise price of C$0.55), and completing the 2022 drill program will be fully funded by the cash on hand. The company also recently increased the size of its land package by entering into an option agreement too acquire full ownership of a parcel of crown grants and mineral claims adjoining the Reliance property.
Endurance is acquiring these claims from Avino Gold and Silver (ASM, ASM.TO) for a total of C$100,000 in cash, 1.5 million shares and the commitment to spend at least C$300,000 before the end of 2024. Once Endurance has completed the earn-in requirements, a 2% NSR will be issued to Avino which can be repurchased in its entirety for C$750,000 for the first 1% and C$1M for the second percent. Avino will also be entitled to a C$1M discovery bonus should Endurance Gold be able to define at least half a million gold-equivalent ounces on the property.
Disclosure: The author has no position in Endurance Gold. Please read our disclaimer.
