Contact Gold (C.V) now knows what it should be focusing on in its 2020 exploration campaign: the Echo zone of the Green Springs project. After having encountered 70.1 meters of 2.36 g/t gold and the final hole that was drilled in this zone yielded 3.53 g/t gold over 38.1 meters from a depth of 76.2 meters. This included a higher grade interval of 11.19 g/t gold over 5.1 meters within of 25.91 meters of 4.79 g/t. The remaining 12.19 meters of that hole has an average grade of 0.85 g/t and ended in mineralization grading 0.65 g/t when the hole was lost. This hole was drilled 25 meters south from the 70 meters interval that was previously disclosed.
On the Bravo zone, the drill bit intersected almost 23 meters containing 1.02 g/t gold including 10.67 meters of 1.79 g/t gold. Excluding the higher grade interval, the remaining 12.19 meters contain 0.35 g/t gold. That’s low grade rock but this should be above the cutoff grade requirement.
Although the initial ten hole program yielded very encouraging results (9 out of the 10 holes encountered high-grade oxide mineralization over significant widths), the market seems to be completely shrugging off these excellent results. The most heard question in the past week or so since the results were published was ‘when do they need to raise money again?’. And that’s a pity as these results deserve more than the ‘let’s have another look after they raise money’ and we would like to think that these results should make it much easier for Contact Gold to raise additional funds for Green Springs.
Disclosure: The author has a long position in Contact Gold. Contact is a sponsor of the website.