Contact Gold (C.V) is in the final phase of closing a substantial financing and is already hitting the ground running again in Nevada where drilling has started at Green Springs. One RC rig is on site and will start drilling the Echo zone where the drill bit intersected 70 meters of almost 2.4 g/t gold last year.
The Echo Zone is just the first stop of this year’s drill program as the rig will subsequently move to drill-test three new target areas where the Pilot Shale & Guilmette Limestone contact comes to surface where a sampling program confirmed the presence of gold with soil values up to 1.05 g/t gold.
In its July 8th press release, Contact Gold mentioned it’s planning to drill 9,000 meters at Green Springs this year in a combination of RC and diamond drilling. However, the company is in the middle of closing a financing up to C$15M. A portion of the cash will be used to redeem the preferred shares owned by Waterton but there should be enough money left on the table for Contact Gold to upsize its drill program. The financing should close sometime next week.
Disclosure: The author has a long position in Contact Gold. Contact is a sponsor of the website.