P2 Gold Inc. (TSXV: PGLD; FRA: 4Z9) reports encouraging results from its first proprietary drill holes at the advanced Gabbs copper-gold project on the Walker Lane trend in Nevada. Hole GBD-001 intersected 1.15 g/t gold equivalent (0.81 g/t gold and 0.30% copper) over 140.67 meters, including 39.32 meters grading 2.71 g/t gold equivalent (2.12 g/t gold and 0.51% copper).
The results support the thesis that the Gabbs Project has far more potential than historical work has shown. P2 Gold acquired the Gabbs project in May this year from the portfolio of private equity investor Waterton Global Resource Management. The flagship project contains an inferred mineral resource of 1.84 million gold equivalent ounces with significant expansion potential. P2 Gold is backed by the successful team of Pretium Resources( TSX: PVG).
Joe Ovsenek, President and CEO of P2 commented, "The first two drill holes have confirmed our understanding of the potential of Gabbs. Drill hole GBD-001, drilled in the middle of the Sullivan Zone, intersected the near surface high grade gold-copper occurrence identified in historical drilling, with thickness and assay results exceeding our expectations. In addition, drill hole GBD-002 extended gold-copper mineralization to the northwest. Having completed four diamond drill holes that confirm our geological model, we have now mobilized the reverse circulation drill rig to commence infill and extension drilling."
Mineralized zone 70 meters thicker than thought
Hole GBD-001 was drilled in the middle of the Sullivan zone to test the full width of the zone and confirm the high-grade gold-copper domain encountered by previous operators. In the past, 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. Mineralization intersected in drill hole GBD-001 is approximately 70 metres thicker than historical drilling, nearly doubling the historical thickness of the mineralized zone, and has higher average values.
Drill hole GBD-002 was drilled at the limits of historical drilling included in the Sullivan Zone Mineral Resource. This hole successfully extended the known mineralization by approximately 50 meters to the northwest and was drilled entirely within altered footwall pyroxenites. Additional drilling is planned further north and northwest of GBD-002 to test additional extensions of the mineralization and monzonite that hosts the high-grade mineralization in hole GBD-001.
Gabbs 2021 Exploration
To date, a hyperspectral satellite survey, a ground geophysical survey, a Phase 1 metallurgical program and a diamond drilling program have been completed at Gabbs. The 2021 diamond drilling program at Gabbs consisted of four holes in the Sullivan Zone totaling approximately 600 meters. An economic feasibility study is currently underway to test the potential economics of heap leaching versus crushing oxide mineralization. The results of this study will be used to define the Phase 2 metallurgical program.
A reverse circulation drill has been transported to the site and has commenced drilling; nine holes have been drilled to date. Results from the remaining diamond drill holes and reverse circulation drill holes will be released upon receipt.
Conclusion: CEO Joe Ovsenek could hardly have asked for a better start to the first of his own drill holes at the Gabbs Project. The results indicate that the mineralization at Gabbs is thicker and higher grade than indicated in the apparently very conservative 43-101 report. P2 Gold is picking up where its predecessors were remiss: Many old drill holes ended in mineralization and the oxide portion of the mineralization was not assayed for copper at all. Add in the recent drilling success at P2 Gold's second project, and one wonders what the market is waiting for. At the BAM project in British Columbia, 2.63 g/t gold was drilled over a length of 45.85 meters - a brand new discovery. But the market seems fast asleep.
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