Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Explorer G2 Goldfields has released the results of four holes completed 400 metres west of the W3 discovery at its Sandy Lake project, located 225 km north of Red Lake, Ontario.
Drill highlights include:
These four holes were drilled to follow up on W3 results released in September, which included high grade intercepts such as 1.4 metres of 11.85 g/t gold and 0.73 metres of 450.04 g/t gold. The company suspects that the mineralization may increase in thickness to the west.
Last year, G2 completed 22 drill holes totaling 4,794 metres of drilling at Sandy Lake with 11 holes testing the W3 zone and 11 holes targeting the W1 and W2 zones.
Drill highlights released previously include 6.85 metres of 12.86 g/t gold and 6.33 meters of 17.37 g/t gold from W1 as well as 0.5 metres of 536.37 g/t gold and 3.97 metres of 23.14 g/t gold from W2.
“This initial drill program has encountered both discrete, high grade shoots and veins as well as BIF [banded iron formation] hosted disseminated mineralization,” said Dan Noone, the company’s vice-president of exploration, in a release. “The upcoming drilling will focus on extending the high grade at W1 and W2 down plunge and along strike, following the disseminated mineralization in the BIF to the west through the axis of the NW arm fold and testing the chargeability anomaly in the BIF between W1 and W2.”
At W1 and W2, mineralization has been traced over a combined strike length of 600 metres. The W3 area sits 2 km to the west. Gold mineralization has been identified along a banded iron formation which runs for 60 km along the property.
Gold deposition at the site is associated with electromagnetic anomalies; a number of untested anomalies extend to the west around a structural fold nose closure. Exploration efforts completed last year suggest potential for both high grade and disseminated mineralization at Sandy Lake.
The 505-sq.-km Sandy Lake project covers 60 km of the Sandy Lake greenstone belt; G2’s current deposit interpretation suggests a similar geologic model to Newmont’s Musselwhite mine located 200 km away.
The company holds a 100% interest in 445 sq. km of Sandy Lake claims and has the right to earn a 70% interest in 60 sq. km of the W series of claims.
G2 Goldfields is currently planning a 10,000 metre drill program for Sandy Lake.
In addition to the Ontario asset, the company holds the Aremu/Oko and Puruni district projects in Guyana.
(This article first appeared in the Canadian Mining Journal)
