Drill results from Snowline Gold’s (TSXV: SGD) Valley target in eastern Yukon returned some of the highest grades yet at the deposit, while regional exploration has revealed two new targets. Shares rose.
Hole V-24-078 at Valley returned 4.05 grams gold per tonne over 244.9 metres from 8.2 metres depth, including 5.99 grams gold over 101 metres from 80.5 metres depth, the company reported Tuesday. Four rigs are currently drilling at Valley and about 20,400 metres have been drilled across 46 holes this year.
“The breadth, consistency and grade of near-surface gold mineralization at Valley continue to impress us,” Snowline CEO and director Scott Berdahl said in a release. “V-24-078 has set another very high bar…while holes from the southeast and northwest parts of the deposit show good near-surface continuity and grades.”
The results add to the strong momentum Snowline has enjoyed this summer, coming just over a month after assays at Valley exceeded the projections of its initial resource. Valley’s initial resource, released in June, showed the deposit is the largest in grade and contained metal in that part of the Tombstone gold belt that stretches under the region.
Snowline shares gained 4.6% to C$5.16 apiece on Tuesday morning in Toronto, valuing the company at C$820.1 million. Its shares traded in a 52-week range of C$3.88 to C$6.40.
Another result, in hole V-24-080 returned 485 metres at 0.91 gram gold from 5 metres depth, including 177 metres grading 1.51 grams gold from 123.5 metres downhole.
Exploration in the area also discovered the two new gold targets of Charlotte and Galatea on the Rogue and Einarson projects, respectively.
Out of 95 rock grab samples collected at Charlotte, a reduced intrusion-related gold system about 15 km southeast of Valley, 25 returned results averaging 4.49 grams gold and up to 28.4 grams gold.
At Galatea, of 12 rock grab samples collected, six returned grades averaging 3.34 grams gold for a maximum of 6.11 grams gold. Galatea, an epizonal orogenic target, is located north of Valley and about 7 km north of Snowline’s Jupiter target.
“That we are still finding potentially significant new mineralized systems on surface in our fourth exploration season in this area is a testament to the scale and the fertility of the district,” Berdahl said.
Canaccord Genuity analyst Peter Bell wrote in a note on Tuesday that even though such samples can be selective, they serve to highlight the presence of gold across a large area.
“We believe this morning’s Valley announcement serves to upgrade and de-risk relevant areas of the initial mineral resource estimate,” he said.
The company has one drill rig turning at Jupiter and more than 8,900 metres have been completed in regional drilling to date at six targets outside of Valley. Assays are pending for about 7,000 metres from those targets.
Including the drilling at Valley and Jupiter, assays are pending for another 22,500 metres drilled thus far.
Valley hosts 75.8 million indicated tonnes grading 1.66 grams gold for 4.1 million oz. of contained gold, and 81 million inferred tonnes at 1.25 grams gold for 3.3 million ounces, according to its initial resource.
