Prize Mining (PRZ.V) has been spending some of its flow-through dollars on its Kena-Daylight gold project in British Columbia, which already contains approximately 1.8 million ounces of gold. This year’s drill program was focusing on the Toughnut property where Prize was trying to find more high-grade mineralization at Kena (our main remark after the initial drill program and after acquiring the property was that although there’s a lot of gold on the project, the average grade is too low to be viable at the current gold price, so Prize definitely needed to chase some higher grade zones).
Prize completed a total of 3,886 meters of drilling in 20 holes at Toughnut where a 1250 by 800 meter zone near the Silver King shear system was the main focus. Prize Mining did encounter some higher-grade results (with for instance 0.48 meter containing 6.22 g/t gold and 3.9 meter at 3.88 g/t gold as well as 26 meters at 2.12 g/t gold), but this probably won’t be enough to move the needle on the total resource (and the average grade) just yet. That being said, hole 20, which encountered 26 meters of 2.12 g/t gold was drilled just 100 meters down dip of where a previous operator encountered 24.3 meters of 4.02 g/t, and this 26 meter interval at 2.12 g/t (including 6 meters at 4.37 g/t) confirms this ‘area of interest’. Unfortunately Prize hole 20 was the last one of the program, so the company may have to mobilize a rig again in 2019 to further follow up on this specific zone. Although the gold mineralization started at a depth of 165 meters down-hole, it’s these types of grade that could improve the value of the project.