Ralph Fitch, President and CEO of the Company stated “These latest results from South Jumbo are very important for the advancement of the Gold Springs project, demonstrating the existence of much higher-grade, near surface, mineralization than has typically been drilled in the past. Any extension of the 2-3 g/t gold intercept seen in E-16-005 and E-16-004 would potentially allow for the development of a higher-grade starter pit with its associated positive economic impacts, to be mined at the beginning of project development, together with our existing resource, estimated in North Jumbo, 1.5-3.0 km to the north. Drilling has now indicated the presence of gold mineralization over approximately half of the 5 km Jumbo Trend which is defined by the ZTEM geophysical anomaly. It is planned to update the Gold Springs resource estimate this quarter using the drill results from both the 2015 and 2016 drill programs, including the results reported here.”
All holes contained an upper and lower mineralized zone and all ended in mineralization, including hole E-16-001, which was drilled to a total depth of 214.9 metres with the last 15.2 metres of the hole averaging 0.67 g/t Au and 3.06 g/t Ag. Importantly, 198.1 metres of this hole averaged 0.36 g/t AuEq and, as noted above, ended in mineralization. The deeper mineralization seen in E-16-001 was not reached in any of the other holes as all ended at much shallower depths. These stacked mineralized zones and the deeper mineralization intersected in hole E-16-001 suggest that the South Jumbo has the potential to develop into a significant mineral system with thicknesses of mineralization comparable, or greater than, those seen in the area of the presently reported resource estimate in North Jumbo (NI 43-101 Technical Report dated August 12, 2015). The South Jumbo (Etna) extends another 1000 metres south of the reported holes, to the southern end of the ZTEM geophysical anomaly.
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