Contact Gold (C.V) continues to hit strong mineralization at the known mineralized zones on its Green Springs project (the low-grade and empty holes the company reported in January were drilled on the Golf target and those holes should be considered to be wildcat holes) and the drill update earlier this week once again shows thick intervals with high-grade gold mineralization.
Contact reported the assay results from five holes drilled at Charlie, and while all five holes did encounter gold mineralization we can reasonably expect four of the holes to exceed the cut-off grades for Nevada based gold oxide operations (the narrow 1.5 meters of 0.21 g/t gold encountered in hole 29 remains below a reasonable cutoff grade and is mentioned in the table as ‘no reportable intercepts’. The same comment is valid for hole 7, which is reported in the table as ‘no reportable intercepts’ although 3.05 meters of 0.15 g/t gold was intersected. That’s below the cutoff grade, so Contact Gold is being very correct by not even mentioning below cutoff grades in its overview. So although some of the holes appear to be ‘empty’ in the table, there seem to be sniffs of gold.
The main highlight was obviously a 33.5 meter interval with an average grade of 2.34 g/t gold while hole 28 encountered almost 20 meters of 1.5 g/t gold. But there was another intriguing element. Hole 6, which was drilled towards the north of the other holes but after a fault, also encountered gold mineralization with almost 11 meters of 0.42 g/t gold and almost 20 meters of 0.91 g/t gold. That’s an important step forward as this could allow Contact to trace the gold all the way from Charlie to Bravo but more drilling will obviously be needed to confirm this.
Drill results for seven more holes are pending and once all assay results have been received, we will catch up with the Contact management team to put everything into perspective and pick its brain.
Disclosure: The author has a long position in Contact Gold. Contact is a sponsor of the website. Please read our disclaimer.