NV Gold (NVX.V) has released the assay results from the 17 hole RC drill program which was completed earlier this year on the Sandy gold project. The Sandy project is surrounded by the Hercules project, owned by Northern Vertex Mining (NEE.V). The drill program was designed to test a few targets where surface sampling programs had outlined areas of interest.
When a company doesn’t use assay results in a title but goes for ‘identifies large epithermal gold system’, it usually is a sign the assay results were underwhelming. And that was indeed the case for NV Gold. There was one decent hole with almost 23 meters containing 0.65 g/t gold starting relatively close to surface (just 29 meters down hole), but the other holes were clearly not as good. Five holes were completely empty (‘anomalous gold values’), while others would likely go under the cutoff grade hurdle.
Fortunately the company didn’t try to sugar-coat the results. In its comment, Thomas Klein, VP Exploration, mentions drilling did not hit any economic grades. A new IP survey and additional mapping will be needed before embarking on a Phase 2 drill program at Sandy.
Clearly not the results anyone was hoping for, and the share price has dropped below the C$0.25 level the recent financing was conducted at.
Disclosure: The author has a long position in NV Gold. NV Gold is a sponsor of the website. Please read our disclaimer.
