P2 Gold Inc. (TSXV:PGLD;FRA:4Z) is working hard to advance the historic Gabbs gold-copper project it acquired from a financial investor's portfolio in May of this year. After extensive geophysical studies and diamond and reverse circulation drilling programs, it is now in a position to advance a preliminary economic assessment of Gabbs, said Joe Ovsenek, P2's president and CEO. Process specialists Kappes Cassiday & Associates, contracted by P2 Gold, have concluded that "heap leaching or milling the oxide ores with cyanide has the greatest economic potential" for the project.
P2 Gold intends to test this proposition through additional metallurgical studies in order to expeditiously advance the project towards a preliminary economic assessment ("PEA"). The Gabbs Copper-Gold Project is located in the famous Walker Lane trend of west-central Nevada, approximately 145 miles from Reno.
Phase One Drilling Program Completed
The Phase One drill program was completed and included 580 meters in four diamond drill holes and 4,120 meters in 27 reverse circulation ("RC") drill holes. The primary focus of the drill holes was to define ore controls and test the full extent of mineralization at the Sullivan Zone. All four diamond and 23 RC drill holes were completed at the Sullivan Zone. Three RC drill holes were drilled at the Car Body zone and one RC drill hole was drilled at the Lucky Strike zone. Diamond drill hole results have been reported; RC drill hole results are pending.
Historically, drilling at the Sullivan Zone has focused on near-surface oxide gold mineralization, with a significant number of drill holes stopped in mineralization or not assayed for copper. The majority of these drill holes were completed between 1980 and 1995 prior to the implementation of National Instrument 43-101. Results to date from P2 Gold's drilling program have confirmed that the zone of gold-copper mineralization is much thicker and higher grade than previously defined. In addition, the Sullivan deposit appears to be zoned with lower grade mineralization to the northwest and improving grades to the southeast.
From 1970 to 2011, exploration activities were carried out on the Gabbs Project by several operators. This work showed that the Sullivan and Lucky Strike zones are associated with prominent magnetic uplifts that are open at depth. Re-interpretation of ground magnetic and historical IP data has identified features that may indicate the source of surface mineralization.
Field mapping and trenching by P2 has located numerous occurrences and historic shafts, pits, and trenches that overlie some of the interpreted deep-seated sources. In a further attempt to define these targets, a magnetotelluric survey of natural springs ("NSMT") will be conducted on the project, which covers a total of 25.7 line kilometers. This survey will cover all four known zones of mineralization and the prospective source locations between the zones.
In summary, the exploration history at the Gabbs Project spans half a century. To date, a historical resource of 1.82 million gold equivalent ounces has been recorded. For P2 Gold, this figure is just the beginning. The company is using all modern means to better understand the project and demonstrate its economics. Drill holes to date have confirmed the suggestion that gold-copper mineralization is much thicker and higher grade than previously thought. Gabbs can quickly grow into something big, even more so if the source of the surface mineralization is found at depth.
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