West Point Gold (WPG.V) has now completed its 21,000 meter drill program at its flagship Gold Chain project. 1/3rd of the assays are still pending, so we can look forward to a few additional weeks of drill results to come out.
Earlier this week, the company released the results of two holes that were drilled at the NE Tyro Zone, and as both holes encountered a thick layer of high-grade gold mineralization. Hole GC26-134 encountered almost 20 meters of 9.06 g/t gold while hole GC26-137 intersected almost 36 meters containing 3.2 g/t gold, including a higher grade zone of 10.2 meters running at 10.23 g/t gold.
Not only the encountered grade is important, but the location of these two holes. They were designed to drill-test an area of high-grade mineralization that was encountered in RC holes, and a core hole obviously returns more precise and detailed geological information to the technical team.
With drilling now completed and 2/3rd of the assays received, the attention will now shift to seeing the final drill results and the completion of a maiden resource estimate at Tyro Main and NE Tyro. We still anticipate to see a high-grade open pit resource and the company’s official exploration target of 19.5-31.2M tonnes at 2-3 g/t gold (for a range of 1.25-3 million ounces of gold contained) provides a good guidance of what we may expect. Based on the results to date, we think it is fair to assume West Point Gold’s resource may very well come in above the midpoint in terms of tonnage which would result in a resource of 1.6-1.7 million ounces of gold. But we of course wouldn’t mind to be positively surprised if the maiden resource would come in closer to 2 million ounces of gold.
Disclosure: The author has a long position in West Point Gold. West Point is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
