TerraX Minerals Inc. (TXR:TSX.V) has released assay results for the first 22 holes of its 43-hole 2017 winter drill program at the Yellowknife City Gold Project in Canada's Northwest Territories. Six holes were drilled at Dave's Pond and were designed to test 400 meters to the north and south of the discovery hole that intercepted 2.40 meters at 9.89 grams per tonne (9.89 g/t) in 2016. The company reported that the drilling intersected a new zone of mineralization in the footwall of the Dave's Pond zone.
According to TerraX CEO Joseph Campbell, the "high grade multi-gram gold intersections confirm the continuity of the Dave's Pond structure along strike. This supports our belief that this area hosts classic high grade lode gold targets common to Archean gold systems in Canada. The consistency of the mineralization along strike and at depth leaves this area open for expansion when drilling at Dave’s Pond resumes in July 2017."
The remaining 16 holes were in the Mispickel and Sam Otto areas. Of these, 11 holes, according to TerraX, were selected to "identify which structures, based on shearing, alteration, and mineralization, have the potential to host high grade gold similar to the Mispickel discovery (8.00 meters at 60.60 g/t)." In addition, five holes were drilled "to form a stratigraphic fence across the geological formation hosting the Mispickel zone."
Gwen Preston, writing in Resource Maven on May 3, noted that the six Dave's Pond holes "hit gold, defining a zone 400 metres long. Highlight results were 3.3 metres of 7 g/t gold, 2 metres of 9.2 g/t gold, 2 metres of 4.8 g/t gold, and 1.9 metres of 14 g/t gold. Three of the holes also hit a second smaller mineralized structure in the footwall."
Preston also stated that "holes 37 and 38, collared almost along strike from the known Mispickel zone, returned wide zones of anomalous gold and alteration worthy of follow up. And four holes along a structure west of Mispickel showed the right kind of shearing and alteration. TerraX will follow up on these two zones."
Preston concluded that "the market was unimpressed by the results, knocking TXR's share price back a few cents. I say give it time—TerraX has sniffed out a good amount of gold already and one of those sniffs is likely to show some scale, which is the missing ingredient. The company has enough cash to complete this summer's work."
TerraX's shares, which were trading at $0.44 when Preston published her article, are currently trading at around $0.56.
Read what other experts are saying about:
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own shares of the following companies mentioned in this article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: TerraX Minerals Inc. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.