Contact Gold (C.V) is still trying to fully figure out the gold mineralization at its Pony Creek project in Nevada, and the recently encountered gold in soil anomaly may shine a new light on the exploration plans. Approximately 600 meters west from the Pony Spur discovery, Contact Gold has now identified a large soil anomaly of 200 by 580 directly west of Pony Spur.
The large anomaly hosts several samples (7 of the 24 samples that were taken) with an average grade of in excess of 0.1 g/t with a high of almost 0.4 g/t (which is actually pretty much the same grade as Contact Gold has encountered at for instance the West Zone), while a second anomaly was discovered almost 500 meters south of Pony Spur where Contact sampled up to 1.18 g/t gold on an anomaly of 225 by 175 meters (40,000 square meters).
Discovering these two anomalies so close to targets that have already been drilled and where gold was encountered does strengthen our point: the gold mineralization appears to be wide-spread all over the Pony Creek tenements, and now it’s up to Contact Gold to connect the dots and start focusing on grade. These two new discoveries could be very helpful in defining new drill targets, as it now looks like Contact may have been drilling at the margin of the system, dixit CEO Lennox-King. It’s also interesting to see the new anomaly is located at the edge of Contact’s land package, with Gold Standard Ventures (GSV.TO, GSV) and Newmont Mining (NEM, NEM.TO) owning the adjoining claims.
Contact has now also completed its C$2.85M raise which consisted of a straight share and no warrant, but will provide the participants in the placement to receive bonus shares with the total amount of bonus shares depending on the price Contact’s next capital raise will be completed at.