Drilling extends strike at TerraX's Yellowknife City Project

May 10, 2017 01:50 PM

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TerraX Minerals Inc. (TXR:TSX.V) has released assay results for the first 22 holes of its 43-hole 2017 winter drill program at the Yellowknife City Gold Project in Canada's Northwest Territories. Six holes were drilled at Dave's Pond and were designed to test 400 meters to the north and south of the discovery hole that intercepted 2.40 meters at 9.89 grams per tonne (9.89 g/t) in 2016. The company reported that the drilling intersected a new zone of mineralization in the footwall of the Dave's Pond zone.

According to TerraX CEO Joseph Campbell, the "high-grade multi-gram gold intersections confirm the continuity of the Dave's Pond structure along strike. This supports our belief that this area hosts classic high-grade lode gold targets common to Archean gold systems in Canada. The consistency of the mineralization along strike and at depth leaves this area open for expansion when drilling at Dave’s Pond resumes in July 2017."

The remaining 16 holes were in the Mispickel and Sam Otto areas. Of these, 11 holes, according to TerraX, were selected to "identify which structures, based on shearing, alteration, and mineralization, have the potential to host high-grade gold similar to the Mispickel discovery (8.00 meters at 60.60 g/t)." In addition, five holes were drilled "to form a stratigraphic fence across the geological formation hosting the Mispickel zone."

Gwen Preston, writing in Resource Maven on May 3, noted that the six Dave's Pond holes "hit gold, defining a zone 400 meters long. Highlight results were 3.3 meters of 7 g/t gold, 2 meters of 9.2 g/t gold, 2 meters of 4.8 g/t gold, and 1.9 meters of 14 g/t gold. Three of the holes also hit a second smaller mineralized structure in the footwall."

Preston also stated that "holes 37 and 38, collared almost along strike from the known Mispickel zone, returned wide zones of anomalous gold and alteration worthy of follow up. And four holes along a structure west of Mispickel showed the right kind of sharing and alteration. TerraX will follow up on these two zones."

Preston concluded that "the market was unimpressed by the results, knocking TXR's share price back a few cents. I say give it time—TerraX has sniffed out a good amount of gold already and one of those sniffs is likely to show some scale, which is the missing ingredient. The company has enough cash to complete this summer's work."

TerraX's shares, which were trading at $0.44 when Preston published her article, are currently trading at around $0.56.

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