The much anticipated Phase 1 drilling program, testing the southern extension of the Campbell Shear of the Yellowknife City Gold Project (1.2Moz Au Inferred resource), is well underway now, and the results are pleasing management of Gold Terra(TSXV:YGT)(OTCQX:YGTFF)(FRA:TXO) as it confirms historical drilling results. As a quick reminder, the Campbell Shear produced approximately 5 of the 6 million ounces of gold produced at the former Con Mine (1938-2002), is the main reason Executive Gerald Panneton (of Detour Gold fame) joined the company, and is the priority target for management. To date, Gold Terra has completed 13 holes for a total of approximately 5,700 metres along the Campbell Shear to vertical depth of 400 metres below surface.
Drill results of the first 6 holes were released in two batches recently, one batch on March 23, 2021 and another one on April 6, 2021. The first news release mentioned the results of the first three holes, totaling 1,714m. The first two holes (GTCM21-001 and 002) were drilled south of the in-house historic Yellorex deposit and the third hole (GTCM21-003) was drilled on the Yellorex portion of the Campbell Shear. The second batch returned an additional 3 holes totaling 1,900.51 metres. Holes GTCM21-004 and 006 were drilled south of the Yellorex deposit and hole GTCM21-005 was drilled 100 metres underneath hole GTCM21-003. The following section illustrates the targeted zones of these holes:
Longitudinal section showing drill holes GTCM21-001 to GTCM21-006
The absolute highlights of the drill results were holes GTCM21-003 and GTCM21-005, returning the following intercepts:
- Hole GTCM21-003 intersected 10.85 g/t Au over 4.35 metres including 25.4 g/t Au over 1.55 metres, from 223.2m
- Hole GTCM21-005 intersected 5.77 g/t Au over 12.35 metres including 14.09 g/t Au over 4.65 metres, from 280.65m
Especially hole GTCM21-005 generated an impressive high grade result over substantial width. As can be seen in the longitudinal section, holes GTCM21-003 and GTCM21-005 were targeting Yellorex, an envelope of previously defined in-house historic mineralization, composed by JV partner Newmont/Miramar, of which no public records exist.
On an important sidenote, another observation I already pointed out in my first article is the deep location of the adjacent Con Mine mineralization, which could imply Gold Terra might have to drill much deeper before massive, multi-million ounce type pay dirt could be hit. Therefore, I asked Suda what his expectations and strategy are regarding this subject. According to him and Panneton, they are currently drilling shallower depths targets as we feel there is a lot of potential to add ounces, and Phase 2 drilling will test deeper targets.
The other 4 holes were step-outs, and although they didn’t return the same kind of results, management deems especially holes GTCM21-004 and GTCM21-006 to be important as they confirm the trajectory of the Campbell Shear, not only by intercepting mineralization but also by showing alteration which is very anomalous in gold and strong gold markers like antimony. Full results can be seen in the following table:
Looking a bit further into the best results, hole GTCM21-003, although with narrow mineralization, was important in establishing the mineralization styles that host high-grade gold. According to management, this hole shows that high-grade gold occurs within wider alteration zones with pervasive anomalous gold values. These characteristics act as vectors to high-grade gold which will assist future drill programs on the Campbell Shear. Holes GTCM21-001 and 002, while intersecting the Campbell Shear, did not display the favourable gold vector characteristics of smoky quartz and sericite alterations likely due to local variations in the zone.
According to management, hole GTCM21-005 conforms to the historically identified geological controls in the Con Mine, which consists of strongly sericitized and sheared mafic volcanic rock associated with arsenopyrite, pyrite and stibnite mineralization with the highest-grade gold in smoky quartz veins. The combination of finding so-called sericitic alteration halos (also containing antimony and arsenic) and wide intersection of anomalous gold values encountered in hole GTCM21-006 suggests proximity to higher grade gold, and it will be followed up by drilling the area of this strong alteration halo.
Management was excited about the completed drilling, as President and CEO David Suda stated: "We are very pleased with the continued success of the drilling results on the Newmont Option ground. Drill results from the Yellorex zone demonstrate good continuity and the extension of the gold mineralization from historical holes, which may potentially add ounces to a future resource calculation. The latest results add confidence to our program to outline high-grade gold mineralization. With our recent financing completed in early March, we are planning to drill more than 20,000 metres this year along the prolific Campbell shear target which remains open at depth and along strike to the south."
The assays of the remaining 7 drill holes are expected by management to be released over the course of the next several weeks.
The first six holes targeting the Campbell Shear at the Yellowknife City Gold Project returned interesting results, with two very good intercepts through hole GTCM21-003 and 005. As the best holes have been verifying the historic mineralized Yellorex envelope relatively near surface, I am curious how management is contemplating the next steps in order to track the highly anticipated multi-million ounce potential of the Campbell Shear, in the shadows of the former Con Mine, of which the deposit was located at significant depth. It will be interesting to watch how management will try to unravel this very interesting, high stake puzzle, being comfortably backed by a 1.2Moz Inferred gold resource already.
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The author is not a registered investment advisor, and currently has a long position in this stock. Gold Terra Resource is a sponsoring company. All facts are to be checked by the reader. For more information go to www.goldterracorp.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.