VANCOUVER – Snowline Gold Corp. [SGD-CSE, SNWGF-OTCQB] shares were active Thursday after the company released more preliminary assay results from drilling at the Valley Zone on its Rogue gold project in the Canadian Yukon.
Drilling highlights include hole V-22-032 which intersected a zone of sheeted quartz vein mineralization within the Valley intrusion averaging 1.72 g/t gold over 207.0 metres within a broader mineralized zone averaging 1.32 g/t gold over 338 metres.
The entire hole, including barren sections, averaged 0.93 g/t across 532.7 metres, ending in mineralized rock. The hole was collard 166 metres from any other hole and drilled northeast to test the system between previously announced V-22-005 (192 metres of 1.52 g/t gold) and V-22-010 (218.8 metres at 2.5 g/t gold).
Snowline Gold shares declined on the news, falling 16% or 58 cents to $3.00. The shares are currently trading in a 52-week range of $4.10 and 50 cents.
Snowline Gold is a Yukon Territory-focused gold exploration company with a seven-project portfolio covering 90,000 hectares. The company is exploring the 72,000-hectare Einarson and Rogue gold projects, which are located in the highly prospective, but underexplored Selwyn Basin.
Snowline’s project portfolio is within the Tintina Gold Province, which hosts multiple million-ounce-plus gold mines and deposits, including Kinross Gold Corp.’s (K-TSX, KGC-NYSE) Fort Knox mine, Newmont Corp.’s, [NGT-TSX, NEM-NYSE] Coffee deposit, and Victoria Gold Corp.’s [VGCX-TSXV] Eagle Mine.
The company says the geological setting and style of mineralization at Rogue’s Valley Zone indicate the presence of a bulk tonnage gold target, with similarities to Kinross’s Fort Knox Mine and Victoria Gold’s Eagle Mine.
The project is considered by the company to have district-scale prospectivity for reduced-intrusion related gold systems.
However, Valley is an early-stage exploration project without a resource estimate, and the presence or absence of an economically viable orebody cannot be determined until significant additional work is completed, the company said.
Snowline drill crews have been targeting intrusion-related gold mineralization in sheeted veining and gold-bearing structures within and around a newly-discovered intrusion that is thought to belong to the prolific Tombstone plutonic suite.
“The latest results from Valley continue to demonstrate substantial scale and strong grades for a reduced intrusion-related gold system,’’ said Snowline CEO and Director Scott Berdahl. “Holes V022-015 and 032 add considerably to the known tonnage of well mineralized rock in Valley’s central zone.
“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,’’ he said.
“We eagerly await the remaining 2022 assay results and their contributions to our understanding of the large mineralized system, with mor than 5,000 metres still to come at Vally and all five holes (2,000 metres) still pending from our nearby Gracie target.’’