Hits 25.92 g/t Gold And 169.46 g/t Silver
Blue Lagoon Resources Inc.(CSE:BLLG) has hit a a significantly thick intercept in its drilling campaign at the Dome Mountain Gold Project in British Columbia.
The company is undertaking a 3,700m work programme at the Dome Mountain Gold Project that was designed to focus on upgrading a significant portion of the inferred mineral resource to the indicated category by infill drilling and drilling the upper and eastern margins of the Boulder Vein system.
“The results from hole DM-20-132 are highly encouraging and continue to highlight the potential for grade and thickness of the Boulder Vein along strike and at depth,” Chief Geologist, William Cronk, said.
“We can see now that we cut off holes DM-20-131 and DM-20-133 too early, which were drilled from the same drill pad. This will be remedied during our upcoming 2021 drill programme and we look forward to undercutting the significant 4.52 m intercept in hole DM-20-132 and follow it to depth.”
Hole M-20-132 cut a significantly thick intercept from 131.75m to 136.27m that runs 25.92 g/t Au and 169.46 g/t Ag over 4.52 meters. This intercept cuts the vein at a high degree to the core axis and consists of typical Boulder Vein characteristics namely, quartz-carbonate and semi-massive to massive sulphide dominated by pyrite with lesser sphalerite, chalcopyrite and galena. Locally, chalcopyrite is greater than pyrite.
This hole is one of three drilled from the same pad during the Phase One drill programme and included holes DM-20-131 and DM-20-133. Hole DM-20-131 hit 45.5 g/t Au and 243 g/t Ag over 0.65m from 59.65m to 60.3m depth and was not drilled deep enough to intercept the deeper intercept hit in DM-20-132.
This will be a high priority target for the upcoming phase two drill program scheduled to begin in early January 2021.
The company has also announced that construction of an Ore Storage building capable of handling and storing up to 200 tonnes of mineralised material per day, has started and is expected to be completed in the next two weeks.
Blue Lagoon will evaluate a production decision once all permit requirements are in place. Any production decision in advance of obtaining a feasibility study of mineral reserves demonstrating economic and technical viability of the project is associated with increased uncertainty and risk of failure