The latest assay results from the Valley Zone at Snowline Gold’s (CSE: SGD; US-OTC: SNWGF) Rogue project in the Yukon’s Selwyn Basin demonstrate shallow and broad mineralized zones.
Drill hole V-22-032 returned 338 metres of 1.32 grams gold per tonne starting from 91.6 metres and included a 207-metre intercept grading 1.76 grams gold from 126 metres downhole.
Another hole, V-22-105, cut 442 metres of 0.65 gram gold from 75 metres including a 170-metre interval of 1.18 grams gold from 137.5 metres. Drill hole V-22-033, intersected 313 metres of 0.86 gram gold from 3.5 metres depth, which include a sub-interval grading 1.33 gram gold over 121.9 metres from 120.5 metres downhole.
Scott Berdahl, Snowline’s CEO, said the results “continue to demonstrate substantial scale and strong grades for a reduced intrusion-related gold system.”
“The shape, the size, and the distribution of grades that we’re seeing at Valley—with many of the highest grades encountered to date starting at surface—bode very well for the potential economics of the discovery.”
The company awaits results from another 17 holes drilled at the 112-sq.-km Rogue project this year.
In mid-November, the company reported drill highlights from Valley including 128.2 metres of 2.48 grams gold per tonne from surface within a broader zone of 285.2 metres of 1.45 grams gold in drill hole V-22-014, and 410 metres of 1.89 grams gold in drill hole V-22-007 from 5.1 metres.
Snowline describes the Valley zone as a “newly discovered, bulk tonnage style, reduced intrusion-related gold system (RIRGS), with geological similarities to multi-million-ounce deposits currently in production like Kinross’s Fort Knox mine in Alaska and Victoria Gold’s Eagle mine in the Yukon.”
But it also cautions that Rogue is at an early stage of exploration, does not have a resource estimate, and “the presence or absence of an economically viable orebody cannot be determined until significant additional work is completed.”
Other prospective targets at the Rogue project include Gracie, an inferred blind intrusion about 4.5 km east of Valley, and an additional block called Old Cabin, where historic grab samples of quartz vein material assayed 8.7 grams gold and sulphide-rich skarn assayed 5.3 grams gold. The JP block, 7 km southwest of Valley, covers a 900 by 600 metre exposure of an intrusive stock, according to the company.
At press time in Toronto Snowline Gold was trading at $2.82 per share. The junior explorer has a market cap of about $372.6 million.