Snowline Gold Corp. (TSXV:SGD) (OTCQB:SNWGF) discovered the strongest gold grades to date on its Rogue Project in Canada’s Yukon Territory.
The company announced high grade gold assays on Wednesday during its 2023 drilling campaign, including 6.38 g/t Au over 15.4 meters and 5.23 g/t Au over 24 meters.
Within this high-gold area, there were two other spots with the highest amounts of gold over 10 meters the company has seen at Valley, including 5.23 grams per tonne over 24.0 meters, 4.74 grams per tonne over 16.5 meters.
Starting at a depth of 278.6 meters, there was a small area of quartz and a type of broken rock called fault gouge that had the most gold of any part of the hole, at 27.95 grams per tonne. The hole ended in an area of the rock with only a small amount of gold, with the last 20.0 meters having an average of 0.29 grams of gold per tonne.
Hole V-23-034 found many layers of quartz veins in a type of rock called granodiorite, with three different generations of veins, each containing a tiny bit of visible gold. The whole hole was filled with minerals, giving 1.88 grams of gold per tonne over a length of 418.3 meters, starting from the surface of the solid rock about 5.7 meters deep.
Inside this, there was an area with 3.08 grams per tonne over 216.0 meters, starting 109.0 meters deep, or 4.12 grams per tonne over 121.4 meters from a depth of 158.0 meters.
Plan view of rogue project. Image via Snowline Gold.
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Snowline aims to drill over 10,000 meters
Snowline Gold is aiming to drill over 10,000 meters and currently have three drill machines at work. So far in 2023, it’s drilled more than 5,800 meters at the Valley site, completing 13 holes and having 3 more in progress.
In addition to this, Snowline is preparing to drill over 5,000 meters on multiple targets across the Rogue Project.
“Our first drill hole of 2023 was drilled to test what we thought was the edge of a relatively high-grade gold corridor within the Rogue Project’s Valley intrusion,” said Scott Berdahl, CEO & Director of Snowline.
“It ended up as Snowline’s second-best drill hole to date. The entire 418 metre hole is mineralized. The consistency of gold grades over large distances is remarkable. Internal intervals ranging from 15 to 25 metres in length bear higher gold grades than we have previously seen at Valley.”
The company assessed various options to speed up the time it takes to test samples. After some tests, the company decided to dedicate a service specifically for sampling.
Apart from the Rogue Project, there’s also a team from the company going to its Tosh and Cliff Projects, located in southwestern Yukon. These projects are focused on a type of gold deposit found in certain mountainous regions. The team will be looking at the area and making maps, and also setting the locations for future drilling.
Shares of Snowline Gold rose 5.3 per cent to $3.95 on Wednesday on the TSX Venture Exchange.
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High grade deposits stay profitable in times of market volatility
Gold mining is a costly endeavour, involving significant upfront investments in exploration, machinery and labour. Therefore, a high-grade deposit can more easily justify these expenses, potentially resulting in a higher return on investment. As the Federal Reserve ramps up inflation, gold becomes more attractive to investors. In times of market volatility or low gold prices, mines with high-grade deposits are more likely to stay profitable, which is vital for the longevity and financial health of a mining operation.
The recent drilling results from the Palomino target, located along the Eureka trend in Nevada, by Calibre Mining (TSX: CXB) (OTCQX: CXBMF) have caught analysts’ attention due to the high-quality mineral grades discovered.
The results are being hailed as the best ever observed at the Pan site in Nevada because of its high-quality and thickness of the minerals found, but also due to how consistently these minerals are spread within the system’s plane. These high-grade minerals were found close to the surface.
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