After its excellent assay results in June, Contact Gold (C.V) has released another batch of assay result for 12 holes/2,500 meters that were drilled on the Pony Creek gold project in Nevada. The company continued to intersect gold-bearing mineralization at the Bowl zone, which is the zone which hosts the 1.5 million ounce historic resource.
What caught our attention were the 4 holes drilled on the so-called West Zone, which is located right in between the Bowl Zone and the Jasperoid Wash zone, where Gold Standard Ventures (GSV.TO, GSV) has discovered long intervals of gold. In a July update, GSV released drill intervals of almost 23 meters at 0.76 g/t gold, almost 81 meters at 0.53 g/t gold and 52 meters at 0.58 g/t gold. Considering this is all oxide mineralization, grades between 0.5 and 0.8 g/t are (should be) economic.
Contact Gold has released the assay results of three holes drilled at the West Zone (the results of hole 16 are still pending). With 3 meters at 0.21 g/t, 12 meters at 0.18 g/t and 33.5 meters at 0.42 g/t, Contact Gold’s initial drill results are very encouraging. Whilst the first two intervals are relatively low-grade, the 33.5 meters of 0.42 g/t (which includes 4.5 meters of 1.1 g/t) could be seen as a discovery hole. It’s also interesting to see that specific hole (hole 18, which we highlighted on the image) is still a few hundred meters from the company’s claim borders, so it will be interesting to see if Contact Gold could ‘build tonnage’ there.
The main takeaway is the gold discovery in between the known Bowl gold deposit and Gold Standard Ventures’ Jasperoid Wash target. Additionally, the geological features appear to be similar to the Dark Star deposit, further validating Contact Gold’s exploration theory. On top of that, the gold-in-soil anomalies also suggest the Bowl zone and the West target may be linked to each other.
It shouldn’t be too long before we see more assay results from the ongoing drill program. Contact Gold will be drilling an additional 10,000 meters at Pony Creek, and this will include 12 holes to follow up on the discovery hole at the West Target.