After a very long process, Contact Gold (C.V) was finally awarded the plan of operations from the Bureau of Land Management. This permit will allow Contact Gold to accelerate its drill efforts at Pony Creek which were previously massively impacted by the limited amount of disturbance that was allowed as long as no plan of operations was in place.
This means Contact Gold was limited in its options to establish drill pads and selecting its priority drill targets. Indeed, in the past 2.5 years Contact Gold has been drilling Pony Creek, it has never been able to optimize its drill program, and that will now change with the plan of operations being approved as the company can now embark on a property-wide drill program without being limited to a limited amount of drill pads. One zone of interest will be the Stallion zone where Contact will probably conduct an infill drill program along the 2 kilometer long trend, and with the freedom to choose the exact location for future drill pads, Contact should be more efficient in targeting higher grade gold as it can now zoom in on the controlling structures.
With the plan of operations in the pocket, the only issue that will have to be dealt with in the next two years are the preferred shares that were issued to Waterton as consideration for the acquisition of Pony Creek.
Disclosure: The author has a long position in Contact Gold. Contact is a sponsor of the website.
