VANCOUVER – St. James Gold Corp [LORD-TSXV, LRDJF-OTCQB, BVU3-Frankfurt] on Wednesday released assay results from initial drilling at its Florin gold project in the Canadian Yukon. The company said assay results from five of the 16 initial diamond drill holes are “encouraging.’’
“These latest results show broad intersections of gold, including intermittent higher-grade intervals that will inform future drilling programs,’’ the company said in a press release.
Drilling highlights include 180.3 metres of 0.4 g/t gold, including 4.5 metres of 1.55 g/t and 32.5 metres of 0.44 g/t in hole DD21065
St. James shares advanced on the news, rising 3.6% or $0.03 to 85 cents. The shares are currently trading in a 52-week range of $6.50 and 55 cents.
The Florin Gold project contains an inferred resource of 2.47 million ounces of gold, contained in 171 million tonnes of grade 0.45 g/t with a cut-off of 0.30 g/t at a gold price of US$1,650 an ounce.
The property lies within the Tintina Gold Belt where several major intrusive-related gold deposits have been delineated and produced over the past few decades. These include Kinross Gold Corp.’s (K-TSX, KGC-NYSE) Fort Knox project, which hosts proven and probable reserves of 3.37 million ounces of gold and Victoria Gold Corp.’s [VIT-TSXV] Eagle and Olive deposits.
The Florin property is located approximately 55 kilometres northwest of the town of Mayo and 130 kilometres east of Dawson City.
On Wednesday, the company said initial results are from a step-out drilling program, which was designed to increase mineral resources within the currently defined resource pit shell containing the inferred resource of 2.47 million ounces.
“We are pleased that the first batch of assay results from the late 2021 diamond drilling campaign show encouraging gold values down the length of each hole, including some encouraging intercepts in areas previously modelled as waste rock areas,’’ said St James CEO George Drazenovic.
“These mineralized intercepts are expected to lower the current conceptual strip ratio at the Florin Gold Project,’’ he said. “We expect to report further results from the campaign over the next few weeks.’’
Drazenovic went on to say that the 2021 exploration season will offer valuable information and guide future exploration programs and resource expansion drilling.
The company has said gold mineralization is hosted in a granite intrusive that extends for at least 5.0 kilometres of strike along the Jethro Fault, of which only 1.0 kilometre has been drill tested to date.
St James holds an option to acquire a 100% interest in 28 claims covering 1,730 acres in the Gander district in north-central Newfoundland adjacent to New Found Gold Corp.’s [NFG-TSXV] Queensway project, and an option to acquire a 100% interest in 1,730 acres in central Newfoundland adjacent to Marathon Gold Corp.‘s [MOZ-TSX, OTC-MGDPF] Valentine Lake Gold Project.