Success In Second Metallurgical Hole At CK Gold Project
U.S. Gold Corp. (NASDAQ: USAU) has received further promising from the recent 29 hole drilling programme for its CK Gold Project, an advanced stage gold and copper exploration and development project located just outside of Cheyenne, Wyoming.
President and CEO, George Bee, said the latest results provided important information.
“With hole CK20-02c, the second of seven holes within the resource designed to collect metallurgical samples, again we confirm two key aspects of the CK Gold resource,” Mr Bee said.
“Firstly, the continuous nature of the mineralisation with attractive grades starting at surface.
“Secondly, looking towards project development if our PFS and FS show promise, a project that we believe should produce payable material at the start of mine operations without the common delays and up-front costs associated with pre-stripping waste.
“This has a very beneficial effect on project economics compared to most other projects where significant costs are incurred pre-stripping waste material in order to access mineralised material, enabling the company to realise revenue quicker without the additional cost of mining excess overburden.”
Highlights:
- The hole shows continuous gold and copper grades for the length of the hole with better grades near surface than the neighboring hole, CK20-01c
- The hole was terminated at its planned depth in lower-grade mineralization at the edge of the deposit as known; however, the limits of mineralization were not tested as this hole was designed to collect a representative sample for metallurgical testing on a priority basis
- Both holes 1 and 2 ended in granodiorite that did not have the appearance of being especially mineralized, but still held mineralization
Mr Bee said that with mineralisation being visually unimpressive, future definition drill holes will need to be planned to terminate well outside of the resource boundary as currently known, to chase the real resource boundary.
Ken Coleman, Chief Geologist for USAU, said primary (sulphide) mineralisation encountered is visually characterised by low overall percentages of mostly chalcopyrite and lesser pyrite disseminated within variably sheared or K-feldspar-epidote-magnetite altered granodiorite. The sheared zones and intensely potassic altered zones are distinct mappable units in core and at surface. Quartz or other veining is rare but scattered throughout the entire rock package that is also cut by nearly barren mafic and pegmatitic dikes.
“We have re-logged all historical drill core available and look forward to further unravelling the genesis and opportunities associated with the resource,” Mr Coleman said.
To that end, we have contacted, and are in discussions with, the geology department at the University of Wyoming to assess the possibility of future graduate studies for CK Gold.”
He said results from hole CK20-02c continue to demonstrate the continuity of attractive gold and copper mineralisation within this part of the CK Gold Project deposit.
“It is especially encouraging that a thicker, continuous interval of mineralisation greater than 1 g/t AuEq is present in CK20-02c, starting at surface.
“This verifies indications from the historic drilling that gold grades increase to the east of this site. See the links below which provide a cross section of hole CK20-02c and a link to our VRIFY deck which shows all holes released to date relative to historic drilling.”
