(“Evergold” or the “Company”) ( , WKN:A2PTHZ) is pleased to report by far the highest grades of gold, silver, zinc and lead ever achieved in drilling at the GL1 Main target, located on the Company’s Golden Lion property in the Toodoggone epithermal district, northern British Columbia, Canada. Assay results for drill section 23-24-25 (Figure 1), encompassing the final 3 holes of the program, definitively establish that the GL1 Main Zone carries high grades of gold, silver and base metals within a broader envelope of moderate grade mineralization, with intercepts commencing just below surface and extending to at least 190 metres down-dip to the northeast, the deepest drilled to date. The zone remains open for further expansion and follow up will be a priority for the 2022 season. The Company is well financed and has working capital of $3.1 million.
Drilling Highlights – GL1 Main Zone
- 40.3m of 2.0 g/t Au, 24 g/t Ag, 1.2% Zn, 0.5% Pb, including
- 11.3m of 5.4 g/t Au, 62 g/t Ag, 3.2% Zn, 1.3% Pb, including
- 2.8m of 10.4 g/t Au, 651 g/t Ag, 10.9% Zn, 3.7% Pb, including
- 1.0m of 26.1 g/t Au, 619 g/t Ag, 10.0% Zn, 3.5% Pb, including
- 0.6m of 31.7 g/t Au, 924 g/t Ag, 12.6% Zn, 3.7% Pb, and
- 1.0m of 13.4 g/t Au, 26 g/t Ag, 11.3% Zn, 8.4% Pb
- 66.0m of 1.36 g/t Au, 11 g/t Ag, 0.3% Zn, 0.2% Pb, including
- 3.3m of 11.30 g/t Au, 12 g/t Ag, 1.9% Zn, 2.3% Pb, including
- 1.0m of 29.10 g/t Au, 19 g/t Ag, 2.7% Zn, 1.6% Pb, including
- 0.5m of 44.70 g/t Au, 24 g/t Ag, 4.3% Zn, 2.8% Pb
- 1.2m of 10.9 g/t Au, 5.5 g/t Ag, 0.2% Zn, 1.4% Pb
“We were excited to see bands of base metal massive sulphides in our drilling this year at Golden Lion”, commented Kevin Keough, President & CEO. “At the time the visuals suggested to us a potential increase in grade, which has been borne out by these results. The grades achieved in this round of drilling at GL1 Main are certainly the highest ever returned for precious and base metals and the latter, at the grades we’re seeing, have the potential to contribute in a meaningful way to rock value. The results also point to considerable potential to build high-grade ounces, and high rock value, both near-surface and down dip, which historically was completely untested, as well as along adjacent areas of the major fault associated with the zone. Moving forward into 2022, we’ll aim to increase our drillhole density to better understand controls on mineralization and expand the high-grade zones, to advance the GL1 Main prospect as quickly as possible.”
Discussion of Drill Results
The Company has carried out two programs of drilling on the Golden Lion property. In 2020, 3,017 metres were drilled in 16 holes, principally focused on the GL1 Main Zone. This work delivered broad, shallow, low-grade gold-silver intercepts (e.g. 88.62 metres of 0.71 g/t Au from 4.88 to 93.50 metres in hole GL20-009) very similar to results achieved by mining major Newmont in 1984, which completed 2,475 metres of drilling in 22 holes on the prospect. Importantly, Newmont’s drill pads were widely spaced with only a single hole per pad, leaving the depth potential of the GL1 Main Zone entirely untested.
With the goal of evaluating the potential for higher grades within and below the broad envelope of near surface mineralization, in July this year the Company returned to the property and drilled 1,811 metres in 9 holes, results for all of which are reported in this news release. Induced polarization (IP) surveys carried out by the Company in 2020 and 2021 had identified chargeability and resistivity anomalies which were tested during this year’s program. Program results demonstrate an association of the best mineralization, and highest metal grades, with IP resistivity highs, and moderate chargeability. Silicification and veining associated with the GL1 Main epithermal-style mineralization is now traceable, with geochemical sampling and induced polarization surveys, along some 1700 metres of strike.
During the 2021 program 8 of the 9 holes drilled tested the GL1 Main Zone over a strike length of 175 metres, at vertical depths ranging from 20 metres (uppermost high-grade intercepts in hole GL21-024) to 175 metres below surface (lowermost high-grade intercepts in hole GL21-025). In addition to intersecting the highest grades to date, the drill program successfully expanded the GL1 Main Zone to approximately 160 metres down dip. The zone remains open to further expansion.
Refer to drill section Figure 1, and plan views Figures 4 & 5. Holes GL21-023, 024 and 025 were drilled from the same pad, stepped somewhat back from the previous drilling. The first two holes were drilled on a southwest (220 degrees) azimuth at inclinations of 85 and 45 degrees respectively. In follow-up to the encouraging visuals delivered by these initial holes, the drill was turned around to drill the final hole of the program, GL21-025, on a northeast azimuth (040 degrees), testing to depth. All three of these holes cut strong hydrothermal alteration in trachyandesitic rocks, encompassing discontinuous quartz-sulphide veins, veinlets, fracture fillings and vein breccias containing sphalerite and galena with subordinate pyrite and rare chalcopyrite, and including local cm- to dcm-scale semi-massive to massive sulphide sections. Strongest overall results were returned from deepest hole GL21-025 and shallowest hole GL21-024 with, however, encouraging broad intercepts, and local high grade, in GL21-023.
Refer to drill section Figure 2 and plan views Figures 4 & 5. Holes GL21-017 and GL21-018 were drilled to the southwest (azimuth 200 degrees) at minus 45 and 75 degrees respectively, to evaluate a deeper combined IP chargeability and resistivity anomaly that suggested a potential system strengthening to depth in that direction. At 356 metres in total length, GL21-017 was the longest hole of the program. No truly significant gold or silver intercepts were returned from this hole, and lead and zinc values were only marginally elevated above background. However, its minus 75 degree undercut, hole GL21-018, intersected the GL1 Main Zone with elevated values of lead and zinc, and low values of silver and gold over broad widths, including individual gold highs to 6.15 g/t and 6.47 g/t. Overall, results on this section indicate system strengthening to depth, with a dip direction to the northeast.
Refer to drill section Figure 3 and plan views Figures 4 & 5. Holes GL21-020, 021 and 022 were all drilled to the southwest (azimuth 210 degrees) at dips of, respectively, minus 50, 83, and 67 degrees. In the shallowest hole, GL21-020, generally only very low values of gold were returned, to a single high of 2.08 g/t. Silver values were likewise generally low, with the exception of individual sample highs to 148, 310, and 223 g/t Ag. Zinc and lead values were moderately elevated, to individual sample highs of 1.1% Zn and a similar individual high for Pb. Minus 83 undercut hole GL21-021 returned somewhat more elevated values of gold to individual sample highs of 5.27 g/t Au, a relatively shallow, broad intercept of 29.5 metres of 29 g/t silver and a notable deeper, separate individual high value of 997 g/t silver over half a metre, and more strongly and more consistently elevated values of lead and zinc to highs of 4.7% and 5.9% respectively. Hole GL21-022, which split the difference between GL21-020 and GL21-021, had in general weaker values of gold, silver, zinc and lead than those seen in its overcut hole GL21-020 and notably less than those in steep hole GL21-021. Overall, results on this section indicate a strengthening to depth.
Hole GL21-019 was drilled at a reconnaissance target 200 metres southwest of GL 1 Main, with no significant results.
Geology and Geological Setting
Refer to geological plan, Figure 5. The GL1 Main Zone lies along what has been interpreted as a major, northwesterly striking, northeast-dipping thrust fault juxtaposing the host Lower Jurassic Toodoggone formation volcanic rocks with Upper Triassic and older(?) volcanic and sedimentary rocks that have been intruded by Early to Middle Jurassic(?) granodiorite. Gold and silver are closely associated with zinc and lead within broad low sulphidation epithermal-style mineralized intervals of discontinuous mm- to cm- and very locally, dcm-scale veins, veinlets, fracture fillings, and local vein-breccias. The extensional vein fillings predominantly contain dark grey to honey coloured sphalerite, along with galena and subordinate mm-scale fine-grained pyrite seams and disseminations. Gangue typically consists of quartz, iron carbonate and lesser jasperoid. Proportions of sulphide mineralization to gangue varies greatly, and short intervals of semi-massive to massive sulphide mineralization occur locally within the zones, where they consist largely of dark grey to honey coloured sphalerite and galena. Dark grey sphalerite commonly rims the honey coloured variety. Host rocks to the mineralized zones are commonly “bleached” to an orange-beige colour that consists largely of iron carbonate, sericite and silica.
The immediate host rocks to the mineralized zones at GL1 Main are part of a gently northeast dipping sequence of high-K intermediate composition volcanic rocks of the Lower Jurassic Toodoggone formation, chiefly trachyandesite flows and tuff, which are age-equivalent to Hazelton Group rocks elsewhere in the region, such as at’ nearby Lawyers property (the former Cheni mine) and farther afield, to much of the Hazelton Group in the Golden Triangle of northwest B.C. Of significance on the property is the fault or fault system that juxtaposes the rocks of the Toodoggone formation with the older rocks to the east and northeast. While the fault has long been interpreted as a thrust fault, the extensional style of the mineralization at GL1 Main suggests that the mineralizing event may be related to extension associated with the later stages of Toodoggone formation volcanism, as is interpreted for mineralization elsewhere in the region. Given that, it is possible that the mineralization at GL1 Main may have formed within a fault with original normal sense of displacement, most likely down-to-the-west, that was subsequently “inverted” through reactivation as a thrust or reverse fault. This could well have occurred in mid-Cretaceous time, during development of the nearby Skeena fold belt, a contractional belt well displayed to the immediate west of the Toodoggone region in the folded and faulted Middle Jurassic to Late Cretaceous sedimentary rocks of the Bowser Lake and Sustut groups.
Exploration Potential at GL1 Main
The results of the Company’s 2020 and 2021 drilling highlight the strong potential at the GL1 Main zone for further exploration drilling, and for high-grade gold-silver mineralization. Beyond the obvious down-dip potential, another clear focus should be to test along trend to the north and northwest of drill holes GL21-023, 024 and 025, east of drill holes GL21-020, 021 and 022. Encouragement for this approach is evident in the anomalous soil geochemistry in that direction, which has in part been masked by downslope dispersion of talus and scree originating from generally poorly mineralized granodiorite upslope, as well as from the apparently increasing Au:Ag ratio evident in the soil geochemistry. There is also some evidence for the system continuing in that direction from strong values of gold and copper in soil and rock geochemical samples (including highs to 14.95 gt/ Au from soils) collected from GL1 North Ridge and areas immediately adjacent. GL1 North Ridge was tested with a single drill hole, GL20-004, in the previous season, and while little encouragement was evident in that drill hole, the trend clearly merits further work. Exploration should also take place to the south-southeast where extensions to the GL1 Main trend were intersected in several of Newmont’s 1984 drill holes. Together, all of these drilling results are indicative of a broad and lengthy mineralizing system that is well endowed with both precious and base metals, and remains in the early days of testing and understanding.
Table 1 – GL1 Main Zone Drilling – Assay Composites
|Hole & Pad
|GL21-019||Off trend – No significant intercepts|
Notes: Widths reported above are drilled core lengths. True widths of the individual drill intercepts for those holes drilled to a southwest azimuth vary between an estimated 90 to 100% of drilled lengths for minus 45 to 50 degree holes, approximately 70-80% for minus 65-75 degree holes, and 60% for minus 80-85 degree holes. True widths for hole GL21-025, which drilled at minus 80 degrees to a northeast azimuth, are estimated to approximate 50% of drilled lengths.
Table 2 – Drill Hole Azimuths and Dips
|Hole & Pad ID||Azimuth
has been assembled by a team with a record of recent success in B.C., namely the establishment of in 2016 and the discovery in 2017-18 of the Saddle epithermal and porphyry copper-gold deposits near Iskut B.C., which hold more than 20 million ounces of gold equivalent in all categories. GT Gold was recently acquired by . Evergold combines four 100%-owned properties in prime B.C. geological real estate from well-known geologist C.J. (Charlie) Greig, with the recently optioned Rockland property in Nevada, seasoned management, and a qualified board. The Company’s flagship assets consist of the Golden Lion property, the Snoball property, and the past-producing high-grade Rockland gold-silver property in Nevada. All three properties host zones of precious metals that the Company believes offer considerable upside.
Charles J. Greig, P.Geo., a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information in this news release.
The company has a robust quality assurance/quality control program that includes the insertion of blanks, standards and duplicates. Samples of drill core are cut by a diamond-blade rock saw, with half of the cut core placed in individually sealed polyurethane bags and half placed back in the original core box for permanent storage. With the rare exception, sample lengths generally vary from a minimum 0.5-metre interval to a maximum 2.0-metre interval, with an average of 0.5 to 1.0 metres in heavily mineralized sections of core, where precise identification of the mineralogical source of metal values is important. Drill core samples are shipped by truck in sealed woven plastic bags to the ALS sample preparation facility in Terrace, BC, and thereafter taken by ALS to their North Vancouver analytical laboratory. ALS operates according to the guidelines set out in International Organization for Standardization/International Electrotechnical Commission Guide 25. Gold is determined by fire assay fusion of a 50-gram subsample with atomic absorption spectroscopy (AAS). Samples that return values greater than 10 parts per million gold from fire assay and AAS (atomic absorption spectroscopy) are determined by using fire assay and a gravimetric finish. Various metals including silver, gold, copper, lead and zinc are analyzed by inductively coupled plasma (ICP) atomic emission spectroscopy, following multi-acid digestion. The elements copper, lead and zinc are determined by ore-grade assay for samples that return values greater than 10,000 ppm by ICP (inductively coupled plasma) analysis. Silver is determined by ore-grade assay for samples that return greater than 100 ppm.
For additional information, please contact:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain “forward-looking statements” which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restrictions on labour and international travel and supply chains, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
3 Rare Earth Stocks on Watch as Talk of a Chinese Mega-Merger Grows
At a time when both the global supply chain crisis and U.S.-China relations hang hotly in the balance, China has announced an important decision that threatens…
At a time when both the global supply chain crisis and U.S.-China relations hang hotly in the balance, China has announced an important decision that threatens to affect both matters significantly. Today, the Wall Street Journal reports that China is planning to create a new rare earth mining company that will be owned by the state. While there’s no question that the forming of such a company will directly affect rare earth stocks, so far the reactions from the sector have been mixed.
Source: LuYago / Shutterstock.com
What’s Happening With Rare Earth Stocks
The rare earth sector has been an interesting one to follow this year, particularly as the electric vehicle (EV) boom has highlighted a new market for its companies. The news out of China today hasn’t done much to affect Nevada-based MP Materials (NYSE:MP), a company that has seen more than its fair share of turbulence this past year but has remained overall in the green for most of it. As of this writing, MP stock is up 2.16% for the day, although it has declined slightly from the peak it saw this morning. While it’s down more than 6% for the week, the stock is in the green for the month by more than 2%.
In a state not too far away, though, things aren’t looking so rosy. Texas Mineral Resources Corp (OTCMKTS: TMRC) has seen its shares fall by more than 4% today, demonstrating a fairly turbulent pattern. Despite being up by more than 12% for the week, TMC is down for the month by almost 19%.
Many miles away in Australia, a similar company is experience similar patterns. Lynas Rare Earths (OTCMKTS:LYSCF) is down by more than 2% for the day with losses for the week just shy of that figure. For the month, though, the small stock has seen shares rise by more than 18%.
Why It Matters
China’s new firm, titled China Rare Earth Group, will be based in the country’s southern province of Jiangxi, an area rich in resources. It will be built through the merging of assets of several prominent state-owned mining firms. According to WSJ, part of the mindset behind this massive industry consolidation is the goal of gaining the clout necessary to “undercut Western efforts to dominate critical technologies.”
For a company like MP Materials, there will very likely be negative implications if the firm is indeed constructed. The company has emphasized that its goals involve helping restore the rare earth supply chain and helping reduce the sector’s heavy dependence on China. The international economic superpower that MP has focused on challenging is about to get considerably stronger and more powerful. That’s bad news for MP and most other rare earth stocks.
While some reports have framed it as a company well-positioned to accomplish an important task, the picture painted for investors hasn’t always been so positive. In October 2021, a report from Grizzly Research staked the claim that the company had issued unattainable projections. While the stock was down during that month, it’s been rising fairly steadily since. Earlier this year, InvestorPlace’s Joseph Nograles touted the upside potential he saw in MP stock as a key component of the emerging EV market.
What It Means
As TRMC and LYSCF trade at much lower levels than MP, it’s hard to gauge just how much they stand to be affected. What is clear, though, is that China is clearly furthering its quest to dominate the section of the global supply chain that concerns. The construction of a state-owned giant to help the country gain further control of highly valuable rare earth materials certainly won’t do any favors for the U.S.
This story is certainly worth watching as it unfolds, but this is likely not the time for a bullish play on rare earth stocks.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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Looking for Leverage? Silver Sands at a Sub $10 Million Valuation Offers the Highest Leverage Drilling Play Around
Nearing the end of a phase III drill program, this high-leverage silver/gold play couples enormous upside with an unusually low risk profile. Eric Sprott is the largest shareholder…
Nearing the end of a phase III drill program, this high-leverage silver/gold play couples enormous upside with an unusually low risk profile. Eric Sprott is the largest shareholder.
Veteran analysts predict gold and silver are on the cusp of another bull run, with some speculating that after a year of consolidation we may see prices rise to $50 per ounce for silver and $2,500 per ounce for gold near term. A further leg up is forecast, and some say precious metals will hit unheard of levels over the next few years as the US dollar staggers. This is big news considering that past silver bull markets have delivered gains ranging from 330% to 900%.
Which brings us to and why its Phase III drill program currently underway makes it the best high leverage silver junior around. ( ), SAND started out with a silver resource of 15 million ounces at its Virginia project in Argentina last year and this is their third round of drilling. Their goal is to have grown that to 50 million ounces by the time Phase III is finished, on their way to 100 million.
But that’s the low-risk part. The leverage comes from drilling the silver/gold Santa Rita vein field in the northern part of the property first explored by Mirasol and Hochschild in 2007. Surface sampling and channel sampling highlights included 340 g/t silver and 5 g/t gold. Mirasol put 7 green field exploratory drill holes into the structure and came up with mineralization in 6 of 7 holes before Hochschild dropped it to focus on their San Jose discovery (now mine).
Silver Sands largest shareholders areand Eric Sprott, who has invested twice – increasing his initial investment by 300%. Commenting on the silver market, Sprott said:
“There’s going to be a shortage of silver. We get information from dealers looking for supply and paying premiums, which is almost unheard of. And when I look at the amount of silver going into ETFs and India, we know a shortage is on its way. The last time silver had a breakout, the price went up 10-fold. Do I think that could happen again? Absolutely.”
Sprott is not the only one with Silver Sands on his radar. In his Gold Newsletter, well-known precious metals expert Brien Lundin firmly put the company into the buy column, reiterating his previous buy recommendation. Speaking to the high leverage nature of Silver Sand’s Virginia project, he described the company as “a great ongoing lever on …… silver.”
SAND is near the end of a Phase III exploration program at its Virginia project located in mining-friendly Santa Cruz, Argentina, in close proximity to four producing precious metal mines. Virginia started out with a silver resource of 15 million ounces, and the goal is to grow that to 50 million ounces by the time Phase III is complete.
The right people, place, and resource
Silver Sands hits the mining trifecta of people, place, and resource. The company is overseen by market veteran Keith Anderson who brings to the mix a successful 20-year history of structuring and financing resource companies. Leading a deeply experienced management team, Keith has brought in a top-class investor, executed operations under budget, and delivered a clear roadmap towards the development of a significant resource.
The company’s flagship Virginia project is located in mining-friendly Santa Cruz, Argentina, in close proximity to four producing precious metal mines. This year, Argentina was rated the 5th most attractive region in the world for investment, and a global top 10 of silver mining jurisdictions. Furthermore, Santa Cruz ranks above Mexico on the investment attractiveness index.
Following up on highly successful Phase I and II exploration programs, Silver Sands is nearing the end of its Phase III program which comprises 2,685 metres of drilling across more than 16 holes. The program is targeting seven silver vein structures along with the high priority Santa Rita silver-gold prospect.
Overall, the Virginia property has the markings of an exceptionally large epithermal vein system yet only a tiny fraction outcrops at or near surface. Silver Sands has just started to scratch the surface of the property’s potential. By the time Phase III is completed, the company believes it will have grown its resource from 15 to 50 million ounces, on the way to 100 million plus.
Phase III will comprise 2,685 metres of drilling across 16 holes and is targeting seven silver vein structures along with the high priority Santa Rita silver-gold prospect. This will all be driven by a low-risk model that involves mostly drilling gaps and extensions between high-grade intercepts along known vein structures.
Adding ounces on the low-risk journey to massive upside potential
The 59,750-hectare Virginia project is a low to intermediate sulphidation epithermal silver deposit nestled in the mineral-rich Deseado massif, roughly 100 kilometres south of Newmont’s Cerro Negro Mine, one of the largest gold mines in the world.
Through initial discovery in 2009 and four follow up drill programs between 2010 – 2012, defined an indicated resource of 11.9 million ounces of silver at 310 g/t and an inferred resource of 3.1 million ounces of silver at 207 g/t, which were documented in an NI 43-101 technical report filed in 2014. Mineral resources are contained within seven conceptual open pits including Naty, Julia North, Julia Central, Julia South, Ely North, Ely South, and Martina.
Phase I and II drilling subsequently identified four new conceptual open pits – Ely Central, Ely North Extension, Julia South Extension, and Martina NW. Drilling confirmed the Ely structure can be traced over 2.3 kilometres in strike length from north to south, open along strike and at depth. The Naty-Julia structure now extends to over 3 kilometres in strike length, open to the north and south, and at depth.
Phase I focused on exploring new high-grade silver zones to expand on the existing NI 43-101 and consisted of 2,831 metres across 18 drill holes along with 80.5-line kilometres of IP surveying. Phase II followed up and yielded some impressive results, testing several new prospective zones through 3,104 metres of drilling across 20 holes. New discoveries were made in areas of lower IP chargeability, showing potential for strike extensions of known veins, as well as new discoveries within previously untested linear trends of lower intensity.
Phase II also led to the discovery of a new high-grade zone at Ely Central, where drilling intersected strong and continuous Ag grades in four drill holes over a 200-metre strike length that lies within a 580-metre untested gap from original drilling in 2012. Furthermore, drilling intercepted high-grade silver mineralization at the Ely North, Martina, and Julia South targets.
Highlights from Phase I and II exploration programs include:
• 639 g/t Ag over 9.60m
• 625 g/t Ag over 10.80m, including 1,110 g/t Ag over 5.70m
• 560 g/t Ag over 9.98m, including 1,578 g/t Ag over 2.87m
• 476 g/t Ag over 4.0m, including 929 g/t Ag over 1.85m
• 198.5 g/t silver over 33.5m
• 123.43 g/t silver over 8.5m, including 168.34 g/t silver over 3.9m
Phase II encountered phenomenal grades at shallow depths. It also led to the discovery of a new high-grade zone at Ely Central, where drilling intersected strong and continuous Ag grades in four drill holes over a 200-metre strike length that lies within a 580-metre untested gap from original drilling in 2012.
A New Vein Field Target That Looks Like Virginia
Adding to the positive results, an IP survey to the northeast of the existing vein field identified 17 targets with a chargeability response similar to known veins in the main field, suggesting that a new vein field akin to Virginia has been discovered. The 37.5-line kilometres of IP surveying has since been worked up for drill targeting.
“In Phase II, we hit some of our best holes ever and encountered phenomenal grades at shallow depths – this is pretty big stuff, indicating tremendous upside potential,” said Keith Anderson. “Our main goal with Phase III is to climb to 50 million ounces, on our way to 100 million plus. Nothing is set in stone, but it’s definitely within the realm of possibility, especially when you consider the size of our property.”
In addition to identifying new mineralized zones and a key target area for expansion, Virginia’s potential is unique in that the property has never been explored to depths greater than 150 metres, while surrounding miners have successfully encountered mineralization to depths as low as 450 metres.
Furthermore, silver veins in the south and east portions of the Virginia property do not outcrop to the surface and require deeper drilling than what’s been endeavored so far. If Silver Sands encounters mineralization at lower depths the resource potential could very well double or triple.