Equity Metals (EQTY.V) announced last week drill crews have mobilized and drilling has resumed on its flagship Silver Queen silver-gold project in British Columbia. This is the second phase of this year’s drill program after the company already completed just over 4,000 meters of drilling in nine holes. As a reminder, the company has only released assay results from two of the nine holes and the results of seven more holes will be released in the next few weeks.
The Phase II drill program will consist of approximately 4,000 meters of drilling and will focus on two new targets to the northeast of the current resource estimate. The Cole Lake target has seen some historical drilling which intersected multiple veins over a strike length of 700 meters and up to a depth of 400 meters while historical drilling at the George Lake target confirmed the presence of several veins over a 120 meter strike length, reaching depths of 200 meters below surface. Both targets were enriched with gold and silver but Equity Metals also mentions the presence of base metals at both targets. Also keep in mind the George Lake target is a past producing mine and this means there’s existing underground access (which would have to be dewatered) to the veins.
As these targets haven’t been drilled in decades, it could potentially open the door for Equity Metals to add tonnes and ounces to the current resource estimate so it will be very interesting to see what Equity can pull out of the ground.
Last week, Equity Metals also announced a C$550,000 flow-through placement priced at C$0.13 per flow-through unit. Each FT unit will consist of one common share and half a warrant with an exercise price of C$0.20 and will be valid for a three year period. No hard dollars will be raised as part of this financing.
Disclosure: The author has a long position in Equity Metals. Equity is a sponsor of the website. Please read our disclaimer.
