San Gold Corp TSX:SGR in joint venture with SGX Resources Inc TSXV:SXR announced assays from their Timmins North Deposit in Ontario. Results include 5.9 g/t gold over 7.2 metres, 42.7 g/t over 1 metre, 9.1 g/t over 2.5 metres, 4.3 g/t over 2.9 metres and 16.9 g/t over 1.1 metres. San Gold and SGX each hold 50% of the Timmins North Deposit. SGX is the project operator.
SGX CEO Hugh Wynne tells ResourceClips.com, “We acquired this property approximately a year ago. It’s been around for a while. It’s been worked on by a number of different companies over the years. Nothing’s really been done there for roughly the last 10 years. But it’s a very attractive property in that it’s a typical Timmins camp gold deposit. The original drilling that was done there had an indicated resource of about 95,000 ounces and an inferred resource of about 140,000 ounces with an average grade of about 8 grams per tonne. What we’ve done over the last year is drilled approximately 26,000 metres of additional drilling. Part of which was infill drilling to enhance the existing resource and confirm it. The rest of the drilling was done to extend the strike length and the vertical depth.
“The news release we put out yesterday was primarily deep holes. The deepest being down about 500 metres. We’re quite pleased with the results. They show it is very consistent and a little bit wider and a little bit better grade on the deeper holes.
“Our plan [this year] is to increase the resource base to about 600,000 ounces, at which time we will be comfortable enough to start underground development. That would entail driving a decline ramp down to approximately 200 metres, doing a bulk sample and additional underground drilling to expand the deposit. We expect to have a sufficient resource blocked-out before the end of the year that will allow us to make a decision to go underground and mine a bulk sample.
We believe that there’s a mineable deposit here, and it has all the earmarks of a typical Timmins camp gold deposit.—Hugh Wynne
“San Gold are 50% partners in the Timmins North deposit,” Wynne continues. “We have about 10 properties in the Timmins area. They were originally acquired by San Gold, and there was a decision to spin those properties off into a straight exploration company, which is how SGX started. San Gold currently owns about 26 million SGX shares.
“It’s a possibility that SGX would [take Timmins North to production] itself. At the Timmins Camp, the availability of knowledgeable mining personnel is excellent. So there’d be no problem with SGX developing it or even San Gold developing it or doing it as a joint venture.
“We’re extremely pleased with what we’ve been able to accomplish in the last year. We believe that there’s a mineable deposit here, and it has all the earmarks of a typical Timmins camp gold deposit. One of the reasons it hasn’t been developed before is that there’s absolutely no outcrop on the claims in this particular area. The only thing you could do really is some geophysical surveys, but mostly you have to drill it, drill it, drill it and find out exactly what you have there.
“We currently have three drills operating on this property,” Wynne concludes, “and we’ll probably have those three drills continue there right through the winter.”
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by Greg Klein and Ted Niles