TerraX Minerals (TXR.V) has received the assay results from its nine hole drill program which was specifically aimed at the Crestaurum zone of the Yellowknife City Gold project. It’s encouraging to see there was high-grade gold mineralization being intercepted very close to surface, as none of the intersections was deeper than 70 meters from surface. The widths aren’t that great as the majority of the intercepts was less than 10 meters, but the grade makes up for that, as an intercept of 2.85 meters at more than 1 ounce of gold per tonne is truly remarkable.

TerraX acquired the property out of a bankruptcy sale in 2013 and has since been very busy with exploration activities on this land package which has a surface area of almost 100 square kilometers. The main advantage of the project is its proximity to existing infrastructure as the project is located less than 15 kilometers from the city of Yellowknife. This will greatly reduce the exploration costs and will have a positive impact on the production costs, should the project go into production later on as TerraX would be able to source local labor.

As TerraX is currently closing a C$2.1M private placement, the company should remain well-funded in the near term.

> Click here to read the press release

Disclosure: The author holds no position in TerraX Minerals. Please see our disclaimer for current positions.

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