…shares rise after results show 13.5m at 4 g/t gold
Drilling by G2 Goldfields (TSX: GTWO) has returned results as high as 13.5 metres grading 4 grams gold per tonne at the company’s New Oko discovery area in northeast Guyana. Shares rose.
Canadian company hits high-grade gold in Guyana
That intercept, in hole AMD18, also cut 65 metres at 1.5 grams gold from 51.5 metres downhole, and 9.7 metres grading 3.1 grams gold, Toronto-based G2 said Monday in a statement. Hole AMD25, meanwhile, cut 70.5 metres grading 1.8 grams gold from 82.5 metres depth, including 4.5 metres at 8.2 grams gold from 121.5 metres, the company said. The project is about 120 km southwest of the capital Georgetown.
“The latest results confirm the continuity of gold mineralization down-dip of the host structure, and along strike to the northeast,” vice-president of exploration Boaz Wade said in the release. “Within the consistent broad intercepts along the shear, coherent zones of higher-grade begin to indicate the potential of plunging mineralized shoots that are still open at depth.”
New Oko – the third significant gold discovery in the company’s holdings – lies about 10 km north of the Oko-Ghanie zone, which hosts 10.2 million indicated tonnes at 2.01 grams gold for 663,400 oz. of contained metal and 12 million inferred tonnes grading 2.64 grams gold for 1 million oz. gold. G2, which holds exploration rights to 340 sq. km in the district, has now completed 47 diamond drill holes totalling 6,439 metres in the New Oko area.
Strike length expansion
G2 shares gained 1.9% to C$3.21 apiece on Monday morning in Toronto, giving the company a market capitalization of about C$772 million. The stock has traded between C$1.30 and C$3.68 in the past year.
Three other holes, AMD17, AMD 19 and AMD23, have expanded the deposit’s strike length by 130 metres, resulting in a total strike length of 630 metres, G2 also said. The new zone remains open in all directions.
AMD17 cut 33.7 metres grading 0.5 gram gold from about 43 metres downhole. AMD19 intersected 60.2 metres at 0.3 gram gold from 88.3 metres downhole, while AMD 23 cut 52 metres at 0.9 gram gold from 108 metres depth.
Gold in soil
The next stage of drilling is to focus on extensions of those higher-grade zones at depth and shallow strike extensions to the southwest, Wade added.
The company has deployed equipment and personnel to drill a “significant” new gold-in-soil anomaly located 4 km north of its current drilling campaign, G2 said. An eight-hole drilling program is to start soon, with assay results probably set for release in mid-July.
“We are still in the early stages of exploring this emerging gold district and I am entirely confident in our abilities to meaningfully grow the company’s global gold resources,” executive chairman Patrick Sheridan said. “I am convinced there will ultimately be multiple mines in this district.”
While drilling “is a key value driver ahead, with 3-4 rigs active on new prospects and resource extensions, we also view securing the necessary licenses and permits (in process now) as a significant de-risking catalyst for development and M&A,” SCP Resource Finance mining analyst Brandon Gaspar said Monday in a note. (www.mining.com)
