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.
GFG Resources has hit 8.5 metres at 71.27 g/t gold in drilling at the Nib prospect, part of its Pen gold project, 40 km west of the Timmins gold camp in Ontario.
The high-grade interval in hole PEN-20-47, which includes 1.2 metres of 511 g/t gold, was intersected at a vertical depth of about 50 metres.
The hole intercepted several mineralized vein zones; other intercepts include 5 metres of 1.01 g/t gold starting at 70 metres; and 7 metres of 0.9 g/t gold from 204.1 metres.
Initial drill testing of Nib was completed in 2018, and identified three distinct, northeast trending mineralized zones
GFG has completed seven holes totalling 2,751 metres this year at Pen, out of a planned 3,500 metres. Drilling is focused on testing the Nib, HGM and Slate Rock prospects.
“Hole PEN-20-47 is the most significant intercept ever drilled on our 500-square-kilometre Pen Gold Project,” said Brian Skanderbeg, GFG’s president and CEO in a release.
“This exceptional intercept along with the multiple mineralized intervals further downhole demonstrates that the Nib prospect has the potential to host a large-scale gold system. These recent results in combination with numerous significant intercepts at our other regional targets, validates our view that this portion of the Abitibi has the potential to host multiple gold deposits next to a world-class gold camp.”
GFG says gold mineralization at Nib occurs in altered and variably sheared and veined diorite, along the western margin of the Reeves Ultramafic Complex.
Initial drill testing of Nib was completed in 2018, and identified three distinct, northeast trending mineralized zones.
Drilling at the time returned a 7-metre intercept of 0.89 g/t gold and visible gold in multiple zones of highly altered rocks.
Another hole in the current program designed to test for the northeastern extension of the vein system with a 150-metre stepout did not return significant results.
A second-phase drill campaign is planned for the third quarter.
Saskatoon-based GFG holds the Pen and Dore gold projects near Timmins, as well as the Rattlesnake Hills gold project in Wyoming.
The company’s stock on the TSX Venture Exchange traded at $0.19 per share, up 116% on Monday. GFG’s market value is $20.8 million.
(A version of this article first appeared in the Canadian Mining Journal)
