Contact Gold (C.V) reported on a fresh batch of assay results in the last week of March as the company released the results of 26 samples taken from the Tango exploration target at the end of 2019 before the area was covered in snow. All 26 samples contained gold with values ranging from 0.1 g/t to 1.52 g/t while an additional samples returned interesting silver values which didn’t appear to be connected to the encountered gold mineralization.
Contact’s CEO, Matt Lennox-King called the Tango target the ‘most obvious drill target he has ever seen’ and claims the target has never been drilled because the previous operators of Green Springs never obtained the correct permits to do so. Contact Gold should not have those issues as the Green Springs project has an approved plan of operations which allows it to explore and drill across all the known mineralized zones across the Green Springs project.
Contact Gold had a working capital of just C$735,000 as of the end of December and to avoid the treasury running on fumes, Contact is now raising C$750,000 in a private placement by issuing 7.5 million units at C$0.10. Each unit will consist of one common share and a full warrant exercisable at C$0.15 for a period of two years. This will top up the treasury to a more comfortable position in anticipation of a larger raise to conduct a substantial drill program at Green Springs.
Disclosure: The author has a long position in Contact Gold. Contact is a sponsor of the website.