Contact Gold (C.V) continues to find gold mineralization pretty much everywhere it looks at the Pony Creek gold project in Nevada, as its most recent exploration results continue to hit gold mineralization. 22 of the 23 holes that have been drilled on the West Zone have hit gold mineralization and the last hole Contact has reported on, hole 51, had an average grade of approximately 0.33 g/t gold over almost 93 meters literally starting at surface. 0.33 g/t may not sound spectacular (and it isn’t), the fact that it starts at surface very likely makes it viable thanks to Contact’s strong preliminary metallurgical test results which were published earlier this year.
The other holes drilled at the west zone confirmed the presence of a ‘blanket’ of gold mineralization with grades between 0.15 and 0.40 g/t, and now it’s Contact Gold’s task to analyze the data from the 2018 drill campaign before designing the exploration plans for 2019. There’s a lot of gold all over the place, but Contact Gold will need to figure out which zones could be mined at a profit.
Contact has also published its financial results, and we will provide a more in-depth discussion of those results shortly. It’s definitely good to see the huge majority of the cash is being spent on the properties, but this also means a placement in Q1 2019 seems inevitable.