Getchell Gold Corp (CNSX: GTCH) (OTCMKTS: GGLDF) is pushing its Fondaway Canyon gold project forward with a strongly improved new resource estimate.
On Thursday, the company reported that is now projected to contain 999,000 ounces of gold in the indicated category and 1,812,000 ounces in the inferred category for a total of nearly 2.8 million ounces. This marks a 21 per cent overall increase from the previous estimate.
The indicated portion grew 54 per cent thanks to fresh drilling that extended thick zones of mineralization both along strike and down dip. Fondaway Canyon’s inferred ounces rose 8 per cent. Only 10 new drill holes added this growth, showing solid continuity in the areas Getchell pursued.
The junior’s new presentation about the update highlights that mineralization stays open in multiple directions, the project sits in a favourable Nevada location with road access near other major mines and past tests show good gold recoveries around 84 per cent.
Investors reacted positively to the development. Getchell’s stock jumped sharply on the OTCQB during Thursday trading, climbing more than 20 per cent as traders bought into the bigger resource and higher gold prices used in the model.
Read more: NevGold raises up to CAD$25M to fast-track Limo Butte development
Fondaway Canyon staking dispute persists
Despite enthusiasm about the resource boost, a title dispute currently clouds part of the Fondaway Canyon claims.
Earlier this year, a private company called NV Minerals said that some of Getchell’s old mining claims are no longer valid. They argued the claims were lost years ago because they were not taken care of properly. NV Minerals then tried to stake (claim) some of that same ground for itself.
Getchell is strongly opposed to the staking attempt. The company says its claims are in good standing and that the ground was never available for NV Minerals to stake. Getchell moved the case to federal court in Nevada, filed its formal response and is fighting back with its own claims against NV Minerals. The court case is still ongoing.
If Getchell should lose, the project area could end up a bit smaller and legal bills could add up. If Getchell wins clearly, it removes the uncertainty and gives the company stronger, undisputed control of the ground.
Nevada pulls investor intrigue as precious metals shine
High gold and silver prices are making Nevada particularly attractive for mining investors right now. The state ranks among the world’s top gold jurisdictions thanks to friendly rules, existing infrastructure and a long history of production
Getchell’s new progress fits into a broader wave of interest. Other junior developers like NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50), Nevada King Gold Corp (CVE: NKG) (OTCMKTS: NKGFF) and A2 Gold Corp (CVE: AUAU) (OTCMKTS: AUXXF) (FRA: RR7) have been attracting attention for their intriguing gold ambitions, and antimony.
A2 Gold recently identified an antimony system at its Taylor project and NevGold secured a private placement valued at up to C$42 million. NevGold’s Limousine Butte operation is one of the state’s most talked about antimony sites. The critical metalloid is currently worth much more than previous decades.
Companies like these are showcasing the elevated level of enthusiasm in the state’s mining sector.
Read more: NevGold reports more positive drill results as gold-antimony resource estimate nears
NevGold is a sponsor of Mugglehead news coverage
Follow Rowan Dunne on LinkedIn
rowan@mugglehead.com
