Getchell Gold Corp. (CSE: GTCH) (OTCQB: GGLDF) (FWB: GGA1) hired Forte Dynamics to prepare its preliminary economic assessment (PEA) for the Fondaway Canyon gold project in Nevada.
The company announced on Tuesday that it had been working on three drill campaigns and published its first mineral resource estimate (MRE) in early 2023 for its flagship Fondaway Canyon gold project. These activities are required to support a PEA on the project. The first task involves updating its MRE.
The previous MRE said the project had a inferred mineral resource of of 38.3 million tonnes with an average grade of 1.23 g/t Au, amounting to 1,509,100 ounces of gold. Additionally, the indicated mineral resource came in at 11.0 million tonnes with an average grade of 1.56 g/t Au, contributing an additional 550,800 ounces of gold.
The company drilled 26 holes in the central area of Fondaway Canyon, incorporating only 18 of them into the 2023 MRE. The results from the remaining eight drill holes arrived after the cutoff date for inclusion in the 2023 MRE. All eight of these drill holes reported significant intervals of gold mineralization.
As part of the updated MRE process, the company completed a bulk density sampling program to establish a representative value for the updated MRE model. The program derived a density of 2.74 g/cm³, representing a 7 per cent increase for the rock hosting the mineralized zones compared to the 2023 MRE. This value directly influences the mineral resource estimate and may potentially increase the tonnes, assuming all other factors and inputs remain unchanged.
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Second task involves updated metallurgical study
The company’s second major task included a metallurgical study of the mineralized material within the updated MRE. Most of the previous tests are now over two decades old. The current study will provide a modernized analysis, taking into account advancements in mineral processing.
Getchell did not require additional drilling to source material for the metallurgical testwork.
In April and May, two batches of analytical laboratory coarse rejects from Getchell Gold’s drill programs were delivered to Forte Dynamics laboratory to initiate the testwork. The company determined that a supplemental sampling program was necessary to collect oxide drill core material. The point of this program is to assess the rock mechanics of the oxide zone and gold recoveries.
The company selected four drill holes that reported mineralized oxide material from the surface for sampling. Last week, Getchell fully collected the half-core material remaining in the core box after splitting it for the original analytical analysis for gold and delivered it to the lab.
Nevada’s appeal to gold miners is due to the state’s rich geological formations, pro-mining regulatory environment, and extensive infrastructure. The state hosts several prolific gold belts, including the Carlin Trend, the Battle Mountain-Eureka Trend, and the Walker Lane Trend. These home to numerous world-class gold deposits.
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Nevada brings prime value to investors
Several prominent companies are actively involved in Nevada gold mining.
Calibre Mining Corp (TSX: CXB) (OTCQX: CXBMF) operates the Pan Mine in White Pine County. Additionally, U.S. Gold Corp. (NASDAQ: USAU) manages the Keystone Project in Eureka County. Newmont Corporation (TSX: NGT) (NYSE: NEM) has significant operations in Nevada in the Carlin Trend and Long Canyon Mine. Furthermore, Barrick Gold Corporation (TSX: ABX) (NYSE: GOLD) oversees the Goldstrike Mine and Cortez Mine through its Nevada Gold Mines joint venture with Newmont.
There are many factors drawing companies to Nevada.
These include mining-friendly policies, including low taxation and streamlined permitting processes, attract major mining companies and investors. Additionally, the state’s well-developed infrastructure, skilled labour force, and access to essential resources further enhance its attractiveness.
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