Sego Resources (SGZ.V) has released the assay results of an additional four diamond holes it drilled on the Southern Gold Zone of the Miner Mountain copper-gold project, close to Copper Mountain Mining’s (CMMC.TO) main operations. The best interval was a 94.2 meter zone at an average grade of 0.86 g/t gold starting just 11 meters downhole. Within this thicker interval, the drill bit also intersected a few narrower but higher grade zones such as almost 19 meters of 1.73 g/t gold and almost 25 meters containing 1.05 g/t gold, all within 100 meters from surface.
Of the other holes, hole 48 was slightly disappointing as the company intersected anomalous gold values (0.18 g/t gold) but that wouldn’t meet the cutoff grade for a gold project. The 2 meters at 0.82 g/t gold a little bit deeper is much better, but it’s also too narrow and too deep to be deemed economical.
Hole 49 on the other hand looks better with 65 meters of 0.60 g/t gold including almost 26 meters containing 0.95 g/t gold. With the higher grade zone starting at less than 30 meters down hole, there’s certainly something interesting going on there. Although open pit projects in BC won’t be the easiest to permit, having Copper Mountain right by will be helpful and with less than 140 million shares outstanding, Sego’s current market capitalization of less than C$15M appears to be very reasonable.
Disclosure: The author currently has no position in Sego Resources but is watching with interest. Please read our disclaimer.
