Contact Gold (C.V) has received a notice of intent from the BLM to conduct drilling activities on the Zulu target, just south of the Echo Zone. Although Zulu is just 200 meters away from Echo, the area isn’t included in the plan of operations (which covers 70 acres) so Contact Gold had to obtain a separate permit to drill the target.
Given the close proximity to Echo, one could consider Zulu to be an extension along the same north-south strike and historical data confirms the presence of gold on the northern edge of Zulu. While 18.2 meters of 0.62 g/t gold, 10.6 meters of 0.3 g/t gold and 22 meters of 0.34 g/t gold aren’t anywhere near the higher grade results we saw Contact Gold pull out of the Echo zone, there clearly is something to be found on the Zulu target and even 0.3-0.5 g/t gold would be economic at today’s gold price.
This doesn’t mean the Zulu target will become Contact’s main priority, but it’s good to have the permit in hand as it provides the company with the flexibility to drill-test the target when it feels like doing so, probably as an extension to additional drilling on the Echo target. Once the drill rig is on site, it’s easy enough to direct it a few hundred meters south to punch a few holes into Zulu.
Disclosure: The author has a long position in Contact Gold. Contact is a sponsor of the website.