Storm Exploration secures access to project with high-grade gold mineralization in Newfoundland
Very interesting news today from Storm Exploration (WKN A3D37E / TSXV STRM). The small Canadian explorer has secured an option on a new, at first glance extremely promising gold project – in Newfoundland.
The so-called Toogood project is of district size and covers an area of 118 square kilometers, including 28 kilometers of strike along a structural corridor. And this has already proven to be prospective for gold deposits!
Particularly promising is that Toogood also includes the drill-confirmed, high-grade Quinlan Zone. There, initial drilling last year yielded 23.90 g/t gold over 3.65 meters, 18.27 g/t gold over 4.25 meters and 9.4 g/t gold over 3.18 meters. The high-grade gold mineralization is contained in a felsic dyke that is confirmed over a strike length of 200 meters and 120 meters down-dip. The mineralization also remains open in all directions, indicating potential for expansion of the mineralized zone.
The project, which is accessible by road and has all necessary permits for drilling, also features numerous other occurrences of visible gold throughout the project area.
Exceptional opportunity
“The Toogood Gold Project is an exceptional opportunity for Storm,” said Bruce Counts, President and CEO of the company. “The drill-confirmed high-grade gold occurrences in the Quinlan Zone underscore the potential for the discovery of a multi-million ounce gold deposit.” Mr. Counts continued, “Furthermore, plans and permits are in place for the expansion and development of mineralization in the Quinlan Zone, allowing Storm to rapidly advance the project.”
Storm plans to advance the Toogood project primarily through drilling. This means initially focusing on expanding the known gold mineralization of the Quinlan Zone. As mentioned, permits for further drilling are already in place there and targets have also been identified.
At the same time, however, the company wants to conduct an exploration and sampling program on numerous outcrops on the property. The goal is to develop a veritable pipeline of attractive drill targets.
Option for 100% interest in Toogood
Storm can acquire up to 100% of the Toogood project, with the transaction mostly being carried out through the issuance of shares to the seller. Additionally, the remaining payments to the original owner must be assumed and Storm must incur a total of $3.5 million in exploration expenditures over several years. (The exact details are available in the company’s press release)
Conclusion: At first glance, Toogood indeed looks extremely promising. In particular, the ability to advance exploration and development of the project relatively quickly should please all shareholders who have long been waiting for progress on the company’s other projects. We are eager to see how things progress from here and how the market reacts to the news that Storm now wants to follow in the footsteps of New Found Gold. The latter has repeatedly shown that Newfoundland has extremely high-grade gold mineralization to offer.
