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Posts tagged ‘Veris Gold Corp (VG)’

Grade expectations

June 18th, 2013

Klondex and Probe drill high-grade gold in Nevada and Ontario

by Greg Klein

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June 18 saw bonanza-grade gold assays from Klondex Mines TSX:KDX in Nevada and, less spectacularly but with wider intervals, high grades from Probe Mines TSXV:PRB in Ontario. Klondex found its results in underground infill drilling from a 1,113-metre decline at its Fire Creek flagship. Some highlights include:

  • 767 grams per tonne gold over 0.58 metres
  • 166.8 g/t over 1.65 metres
  • 570.31 g/t over 0.4 metres
  • 505 g/t over 0.43 metres
  • 61.27 g/t over 1.89 metres
  • (including 69.8 g/t over 0.43 metres)
  • (including 144 g/t over 0.52 metres)
  • 70.6 g/t over 1.52 metres.

No topcut was applied to grades. True widths were unavailable. The infill holes further demonstrate continuity of the Joyce and Vonnie veins, the company stated, also finding a new mineralized structure parallel to and west of Joyce. Both veins remain open along strike and at depth.

This year’s program has so far completed 27 underground holes for a total of 3,523 metres. To incorporate the new results, the company now plans to delay its resource update from June to July or later.

A May 2011 resource used a 4 g/t cutoff to show:

  • an indicated category of 5.18 million tonnes averaging 9.9 g/t gold for 1.65 million gold ounces
  • an inferred category of 1.73 million tonnes averaging 8.2 g/t for 458,084 ounces.
Klondex and Probe drill high-grade gold in Nevada and Ontario

Following its Fire Creek surface program, Klondex began
an underground campaign of both expansion and infill drilling.

With metallurgical testing underway, underground infill drilling continues. The timeline includes a preliminary economic assessment in Q1 2014. Klondex has a toll milling agreement with Veris Gold TSX:VG, operator of the Jerritt Canyon mine.

Klondex shares opened June 18 on their previous close of $1.24. They then touched $1.29 before wrapping up the day on $1.27. With a 52-week high and low of $1.72 and $0.91, the company’s market cap came to $81.82 million.

Also on June 18, more high-grade gold results came from both step-out and infill drilling at Probe Mines’ Borden project about 200 kilometres southwest of Timmins, Ontario. Highlights from expansion drilling of the project’s high-grade zone include:

  • 5 g/t gold over 39 metres, starting at 394 metres in downhole depth
  • (including 11.2 g/t over 13 metres)
  • (which includes 15.7 g/t over 6.9 metres)
  • 6.4 g/t over 27.1 metres, starting at 396 metres
  • (including 11.1 g/t over 9.2 metres)
  • 4.7 g/t over 10.7 metres, starting at 378 metres
  • 1.2 g/t over 24.2 metres, starting at 372 metres.

Intervals are approximate true widths. Vertical depths fell between 255 and 431 metres. The results expand the zone 200 metres to the southeast, the company stated. Infill drilling is planned to bring the new results into a resource update.

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