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Victory’s Completed Short Hole Program at Loner Indicates Potentially a Larger Gold System

2021.09.05
Victory Resources’ (CSE:VR, FWB:VR61, OTC:VRCFF) Loner property in Nevada is located 35 km south of Winnemucca in the southern Sonoma Range,…

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This article was originally published by A Head of the Herd

2021.09.05

Victory Resources’ (CSE:VR, FWB:VR61, OTC:VRCFF) Loner property in Nevada is located 35 km south of Winnemucca in the southern Sonoma Range, comprising 16 federal lode claims covering historical workings and exposed low-sulfidation gold mineralization.

Loner property location map

Recent exploration includes the Goldbanks project, an epithermal gold project about 12 miles to the south, and the Coronado VMS project, which has been exploring for copper on a property about 6 miles to the southeast of the Loner property. The area is prospective for both these styles of mineralization.

Bedrock grab sampling to date has returned up to 16.6 g/t Au, while chip sampling in old workings has returned up to 25.7 g/t Au over 1.83m.

Prospecting during 2020 identified additional workings on the expanded claim block, returning grab samples up to 10.6 g/t Au. Strong gold and arsenic soil geochemical anomalies are coincident with the exposed mineralization and historical workings, though the full extent of these anomalies has not yet been defined.

The Loner property is currently under option from Silver Range Resources (TSXV:SNG). Victory may acquire an 80% interest in the project by paying $400,000 and completing 1,200 meters of drilling.

Victory recently completed a short hole program consisting of 10 holes totaling 496m.

These first-pass holes, drilled between 50 and 70m depth, were intended to better characterize the mineralization exposed in the known workings, and to evaluate the 200m to 300m-wide zone of anomalous soils identified by previous operator Silver Range Resources. Drilling focused on gold in soil anomalies to the south and east of the main workings.

According to Victory Resources, Drilling in the [gold in soil anomaly east of the southern workings] encountered several zones of intensely altered (bleached and limonitic) granite cut by frequent quartz and/or limonite veinlets.

Intersections of this style of alteration up to 5.9m (within a 10.7-metre zone of less intense alteration and veining) were observed in drill core.

The preliminary interpretation is that these are sub horizontal zones of faulting and brecciation that are associated with the steeply dipping gold bearing zones seen in the workings — assays are pending.

If the assays indicate that these zones are gold bearing, it supports the hypothesis that the narrow steeply dipping zones described in the literature at the Loner are part of a larger gold bearing system. In this case, an expansion of the soil grid, trenching and more drilling would be recommended. 

“From the time we optioned Loner in late December till now, the Victory team has accomplished a tremendous amount of work and we look forward to the assay results from this drill program, which will guide our next steps,” David Deering, VP Exploration, stated in the May 19 news release. “Loner is located in an area within Nevada that is in the vicinity of Goldbanks, an area where Barrick, Kinross and Premier have interests, and we have added to our portfolio in the area by staking the Black Diablo property, which we will be advancing in the near future.”

Victory this week highlighted the fact that, following extensive mapping, sampling and drilling, the company’s exploration team has staked eight additional claims and is re-evaluating the system, which it believes could be larger than previously understood.

“Our exploration team has worked extensively on Loner, and results have led us to stake additional claims, which are now secured, allowing us to provide a thorough update to shareholders on the activity and findings,” said Victory Resources’ CEO Mark Ireton, in the Sept. 1 news release.

The land was staked after two grab samples were shown to contain 1,000 parts per million (ppm) (1,000 grams per tonne) silver. A nine-day mapping and sampling program resulted in the collection of 18 rock samples, 85 soil samples and a geological map of the newly staked property, which Victory says is comprised of arkosic sandstone, quartzite, intrusives and alluvium (see figure below). 

Previous maps labeled these outcrops as the Cambrian-aged Harmony Formation and Cretaceous-aged intrusive group. According to Victory, all abandoned shafts on the property have only targeted the scarce mineralization exposed on the surface of the granite, but there is significantly more alteration present in the sandstone. This alteration is bounded by a thrust fault on the west and an unidentified contact between the granite and sandstone on the east.

Geological map of the Loner property.

On the southwestern block of Loner, 496 meters of core was drilled in the granite. Ten holes were drilled 50° SW to find subsurface veins similar to the previously worked areas nearby. Cores contained trace sulfides and quartz veining, but lab results showed anomalous gold throughout the granite adjacent to workings with erratic high-grade gold (up to 0.5 g/t) in granite-hosted quartz veins. Samples also returned elevated values of arsenic up 1,640 ppm.

“The Loner property was previously thought to be a local epithermal gold deposit, but the size and complexity of hydrothermal activity has led to a re-evaluation of the system,” Victory states, adding:

“This system could be larger than previously thought if a relationship can be established between the silver-bearing sandstone and proximal gold-bearing granite. Assays of the soils and rocks collected throughout the property will reveal more information about the system. Results are expected within a month.”

Lac Simard

Victory acquired the Lac Simard property in the Canadian province of Quebec in September 2020.

Located about 5 km south of Val-d’Or, Lac Simard consists of 46 contiguous mining titles with a total area of 2,560 hectares.

There are three operating gold mines within 20 km of the property including Agnico’s Goldex and Canadian Malartic mines and Eldorado Gold’s Lamaque mine (see map below). All three are considered to be orogenic gold deposits and occur along the Larder Lake-Cadillac Fault System.

Operating mines and major claim blocks in the area of the Lac Simard property.

The Goldex deposit, situated 6 km north of the property, has proven and probable mineral reserves of 1.1 million ounces of gold (21 million tonnes grading 1.61 g/t Au).

Lamaque, also 6 km to the north, is an underground gold mine that declared commercial production in spring 2019. It is expected to mine and process over 615,000 tonnes of ore at an average grade of 7 g/t Au.

About 20 km to the northwest is Canadian Malartic, Canada’s largest operating open pit gold mine. Its gold reserves as of 2019 were 2.39 million ounces.

The Lac Simard property is largely underlain by metasediments of the Neoarchean Pontiac Group, with ultramafic intrusives and/or volcanics occurring at its western end.

Victory announced in mid-July that the company has started a magnetic (mag) survey at Lac Simard, with Abitibi Geophysics engaged to conduct a 60-km ground magnetometer survey over the west-central part of the property.

The project has seen little exploration apart from several geophysical surveys and 11 drill holes on its western side. Magnetometer surveys are an important tool in determining the structure of a property, as well as outlining magnetic units. Structure, Victory explains, exerts a primary control on the location of the gold deposits of the Val D’Or camp.

The property is largely underlain by metasediments of the Neoarchean Pontiac Group.

Conclusion

Victory Resources has assembled an exciting portfolio of projects in Nevada and three Canadian provinces. 

The western US state was named by the Fraser Institute’s latest survey as the world’s most attractive mining region for investment attractiveness.

It hasn’t taken Victory Resources long to chalk up success at its Loner gold property, which is in good company. The Goldbanks project, an epithermal gold system, is about 12 miles to the south, and the Coronado VMS project has been exploring for copper on a property about 6 miles to the southeast.

Not only has Victory managed to stake eight additional claims, 2021 exploration including geological mapping, soil and rock samples, indicate that the mineralization could extend beyond surface “epithermal” gold. If a relationship can be established between the silver-bearing sandstone and nearby gold-bearing granite, the system could be larger than expected.

I’m looking forward to the assay results from the recently completed short 10-hole drill program. Initial lab results showed anomalous gold throughout the granite adjacent to workings with erratic high-grade gold (up to 0.5 g/t) in granite-hosted quartz veins. Samples also returned elevated values of arsenic, a gold pathfinder mineral, up to 1,640 ppm.

I’m also pleased to see some work being done at the Lac Simard project, which is surrounded by some major gold operations, including Canadian Malartic, Canada’s largest operating open pit gold mine, Goldex and Lamaque. All three are orogenic gold deposits that occur along the Larder Lake-Cadillac Fault System.

The results of the magnetometer survey should help to pinpoint new drill targets and hopefully open the door to a discovery hole when Victory gets around to drilling it.  

Victory Resources Corp. 
(CSE:VR, FWB:VR61, OTC:VRCFF)
Cdn$0.08, 2021.09.03
Shares Outstanding 65.8m
Market cap Cdn$7.1m
VR website

Richard (Rick) Mills
aheadoftheherd.com
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Articles

ASX Small Cap Lunch Wrap: Who’s outperforming Warren Buffett today?

A hamster in the US has a portfolio up by around 20% since June, outpacing the S&P500 and Warren Buffett’s … Read More
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Ever wished you were as rich as Warren Buffett?

Or perhaps more accurately; sometimes feel like you’re just a hamster running on a wheel?

Some enterprising crypto investors have made that idea work for them, with a unique hamster-based investment strategy.

According to reports, the hamster — Mr Goxx — dutifully runs on his wheel and in doing so, also selects from a range of different cryptocurrencies.

The wheel is uniquely designed for Mr Goxx to choose one of two tunnels, which indicate buy or sell.

And apparently his portfolio is up by around 20% since June, outpacing the S&P500 and Warren Buffett’s Berkshire Hathaway.

So if your fundamental analysis of ASX small caps isn’t bringing returns, there are options…

Elsewhere, the idyllic, resource-rich locale of Perth, Western Australia, has been run over by some rampant demons following Melbourne’s AFL Grand Final victory on Saturday night.

208cm ruckman Max Gawn stayed in game-shape following the financial siren, taking hangers while still dressed in his match guernsey:

On markets, ASX futures markets suggested the local index was going to edge higher (maybe) before the opening bell, but local stocks have beaten expectations as upbeat sentiment permeates through Monday trade.

Just after 12pm EST the ASX 200 was on track for a gain of around 1%, with steady demand across all the major sectors.

Energy stocks kept the ball rolling after last week’s big rally, and the ASX 200 Energy index has now climbed by an impressive 10.6% since last Monday’s selloff.

Brent crude oil is trading at three-year highs above US$78 a barrel, as consensus around a global energy supply crunch continues to build.

Along with the ASX, positive sentiment extended across Asian markets with steady gains across the other major indexes including the Hang Seng (home of Evergrande) which rose by more than 1%.
 

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for Monday September 27 [intraday]:

Stocks highlighted in yellow made market-moving announcements.

Code Name Price % Change Volume Market Cap
NTL New Talisman Gold 0.002 100.0% 1,184,051 $2,792,225
ANL Amani Gold Ltd 0.0015 50.0% 3,911,521 $14,205,197
RRR Revolverresources 0.43 38.7% 2,941,576 $25,380,460
RBX Resource B 0.28 36.6% 5,717,568 $6,959,255
DDD 3D Resources Limited 0.004 33.3% 125,305 $11,641,116
OAK Oakridge 0.002 33.3% 1,080,116 $5,158,939
ARR American Rare Earths 0.22 22.2% 4,175,115 $62,065,499
ARU Arafura Resource Ltd 0.235 20.5% 21,478,573 $302,239,730
AO1 Assetowl Limited 0.006 20.0% 155,000 $4,081,026
RBR RBR Group Ltd 0.006 20.0% 1,030,125 $6,409,900
AJL AJ Lucas Group 0.038 18.8% 966,220 $38,281,172
POW Protean Energy Ltd 0.013 18.2% 1,476,795 $7,156,743
IMC Immuron Limited 0.165 17.9% 937,744 $31,814,523
IXC Invex Therapeutics 0.8 17.6% 237,582 $51,104,617
LEL Lithenergy 0.695 16.8% 3,327,351 $26,775,000
GGX Gas2Grid Limited 0.0035 16.7% 2,054,000 $12,138,306
PEB Pacific Edge 1.52 16.0% 139,756 $955,265,080
POL Polymetals Resources 0.145 16.0% 31,562 $4,852,907
TBA Tombola Gold Ltd 0.044 15.8% 1,546,928 $24,103,240
OZM Ozaurum Resources 0.15 15.4% 292,127 $7,438,080
HWK Hawkstone Mng Ltd 0.046 15.0% 22,265,624 $68,793,777
BMR Ballymore Resources 0.25 14.0% 20,000 $15,725,178
AVL Aust Vanadium Ltd 0.025 14.0% 5,913,983 $72,178,161

 

Recent ASX debutante Resource Base (ASX:RBX) is getting into the rare earths game, where a number of other ASX juniors are running hot.

The company announced that its snapped up 1,380sqkm of ground in the Murray Basin, which is prospective for ionic clay hosted Rare Earth Elements (REE).

Elsewhere among stocks with news, biopharmaceutical company Invex Therapeutics (ASX:IXC) jumped by around 20% after announcing a long-term Collaboration and Manufacturing Agreement with Peptron Inc — a company listed on the Korean Stock Exchange.

The deal will see Peptron use Presendin — IXC’s treatment for neurological conditions relating to raised intracranial pressure — in clinical trials and for commercial use, once Presendin is approved.

The agreement is “exclusive, applies globally and provides a defined price per dose for the supply of Presendin for clinical studies, and for the first ten years following the first commercial sale,” IXC said.

Get the wrap of the rest of today’s resources winners here.
 

ASX SMALL CAP LOSERS

Here are the best performing ASX small cap stocks for Monday September 27 [intraday]:

Stocks highlighted in yellow made market-moving announcements.

Code Name Price % Change Volume Market Cap
AJY Asaplus Resources 0.04 -33.3% 20,000 $8,160,000
ACB A-Cap Energy Ltd 0.085 -26.1% 2,448,518 $100,266,760
NPM Newpeak Metals 0.0015 -25.0% 992,527 $13,654,870
BDC Bardoc Gold Ltd 0.045 -21.1% 28,783,076 $98,909,670
EN1 Engage:Bdr Limited 0.004 -20.0% 1,999,249 $12,764,763
YPB YPB Group Ltd 0.002 -20.0% 100,000 $12,479,551
AEE Aura Energy 0.21 -17.6% 2,317,954 $101,784,941
SCN Scorpion Minerals 0.052 -14.8% 108,000 $15,800,903
CUL Cullen Resources 0.018 -14.3% 1,368,921 $7,852,271
EVE EVE Investments Ltd 0.0035 -12.5% 2,082,615 $15,372,568
TOE Toro Energy Limited 0.029 -12.1% 37,032,041 $128,612,292
OZZ OZZ Resources 0.19 -11.6% 212,469 $5,795,674
WFL Wellfully Limited 0.155 -11.4% 915,577 $36,718,582
VMY Vimy Resources Ltd 0.1775 -11.3% 4,532,779 $210,299,732
EL8 Elevate Uranium Ltd 0.56 -11.1% 777,573 $143,780,897
RD1 Registry Direct 0.033 -10.8% 184,545 $13,037,813
AGE Alligator Energy 0.068 -10.5% 42,201,863 $212,357,592
LME Limeade Inc. 0.71 -10.1% 17,193 $197,294,227
AGR Aguia Res Ltd 0.046 -9.8% 98,089 $17,031,064
PEN Peninsula Energy Ltd 0.23 -10.0% 6,774,820 $253,984,637
BBX BBX Minerals Ltd 0.19 -10.0% 365,091 $96,184,510
AMO Ambertech Limited 0.29 -9.0% 208,389 $24,622,932
COD Coda Minerals Ltd 0.79 -9.0% 69,456 $79,566,922

The post ASX Small Cap Lunch Wrap: Who’s outperforming Warren Buffett today? appeared first on Stockhead.

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Energy & Critical Metals

LEL reckons its Burke graphite deposit suited for lithium battery applications

Special Report: Lithium Energy’s teamed up with CSIRO for optimisation testwork for its Burke graphite project in Queensland. … Read More
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Lithium Energy’s teamed up with CSIRO for optimisation testwork for its Burke graphite project in Queensland.

The research agreement with CSIRO covers further testwork, including attempting spheronisation and purification of the natural graphite particles.

Essentially, the graphite is shaped into ‘potato-like’ structures with the objective of easier processing of Burke natural graphite flakes into electrode materials to reduce capacity losses and enhance cell efficiency.

The idea is to demonstrate to potential graphite purchasers the benefits of the natural flake graphite within the deposit.

The project will be 50% funded by the CSIRO Kick-Start Program and is expected to take four months to complete.

Lithium Energy (ASX:LEL) is confident the deposit presents an opportunity to cater to the growth in demand for graphite in lithium-ion batteries.

Encouraging electrical storage capacity

Burke has a JORC inferred mineral resource of 6.3 million tonnes at 16.0% Total Graphitic Carbon (TGC) for 1,000,000 tonnes of contained graphite – including a high-grade component of 2.3 million tonnes at 20.6% TGC.

Its high grade and low impurities make it particularly attractive for use in lithium-ion batteries.

In previous test work, Burke graphite cells had generally higher levels of capacity compared with control coin cells when repeatedly (50 times) charged and discharged over a 10-hour cycle time.

The company considered this electrical storage capacity highly encouraging and it was the driving force to undertake the further testwork required by battery manufacturers looking to acquire graphite for use in their battery manufacturing operations.

Pic: Total Graphite Content (TGC) comparison of ASX listed company graphite projects

Potential offtake partners

The company is planning to re-engage with Chinese and Japanese parties who have previously expressed a strong interest in the graphite from the Burke Project.

Lithium Energy said that companies in China are increasingly looking outside of the country for stable supplies of high-quality graphite concentrate – due to increasing environmental concerns as well as grades being typically lower in the country.

Once the latest round of testwork is complete, the company will pursue discussions with the aim of forming binding commercial off-take and development agreements.

 


 

 

This article was developed in collaboration with Lithium Energy Limited, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

 

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Articles

Miramar’s Randalls gold project ripe for discovery

Special Report: Allan Kelly-led explorer Miramar Resources has been granted ground containing the ‘Randalls’ project, adjacent to Silver Lake Resources’…

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Allan Kelly-led explorer Miramar Resources has been granted ground containing the ‘Randalls’ project, adjacent to Silver Lake Resources’ 1.5Moz Mt Belches gold operations in the Eastern Goldfields of WA.

Purchased as part of the Miramar (ASX:M2R) IPO in October 2020, Randalls covers extensions to the mineral-rich Banded Iron Formation (BIF) that hosts the high-grade Maxwell’s, Cockeyed Bob, Rumbles and Santa gold deposits operated by Silver Lake Resources.

Several high-grade results have also been returned from rock chip sampling of BIF at the Pryde and Logan prospects along strike, which were recently acquired by Horizon Minerals.

Despite the proximity to these deposits, the BIF has been relatively poorly explored within Miramar’s tenement, especially the fold hinges which are generally considered prime targets for BIF-hosted gold mineralisation.

Historical exploration comprised a limited series of shallow drill holes which did not test the obvious fold hinge positions — generally considered prime targets for BIF-hosted gold mineralisation — within the northern half of the tenement.

Gold assays are not reported in open file reports for a number of these holes.

Furthermore, surface sampling is likely to have been ineffective across a significant portion of the tenement “due to the presence of a north-south trending drainage system and associated sheetwash material”.

Proposed exploration at Randalls

Miramar has kicked off planning for initial work at Randalls, which will include compilation of all relevant historic drilling and geochemical data followed by aircore and/or RC drill testing of key targets.

Miramar’s initial focus will be on drill testing the obvious fold-hinge targets with aircore and/or RC drilling.

Miramar exec chairman Allan Kelly says the company was excited to be able to commence exploration on the third of its highly prospective Eastern Goldfields projects.

“Our strategy in the Eastern Goldfields was to acquire under-explored gold projects within close proximity to existing mining and/or processing facilities,” Kelly says.

“Randalls definitely fits the bill, with a lack of any systematic exploration of a mineralised BIF along strike from multiple existing high-grade gold operations and with a haul road crossing the project.”

 


 

 

This article was developed in collaboration with Miramar Resources, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Miramar’s Randalls gold project ripe for discovery appeared first on Stockhead.

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