Cassiar Gold Corp. (GLDC:TSX.V; CGLCF:OTCQB), which changed its name from Margaux Resources at the end of September, has been moving quickly to explore the 56,000-hectare Cassiar orogenic gold project northeast of the Golden Triangle in British Columbia, which it optioned last year. The project currently has two deposits, Taurus, a lower-grade, open-pit target, and South Cassiar, a past-producing gold mine with a high-grade historical resource.
The property offers Highway 37 access, property access roads, power and water, a 30-person camp and a permitted, 300-ton-per-day gravity/flotation mill.
Last year the company released an NI-43-101-compliant 1 million ounce Inferred gold maiden resource estimate on the project's Taurus deposit, at an average grade of 1.43 grams per tonne (g/t).*
Cassiar conducted a 24-hole, approximately 5,000-meter drill program this year at the Taurus target. "The goal of the drill program was to confirm and expand our resource," Cassiar CEO Marco Roque told Streetwise Reports.
On November 10, Cassiar released assays from the first seven holes. "We have some really good interceptions," Roque said. "Highlights include the long interception, 23.75 meters at 1.79 grams per tonne (g/t) gold, which along with 4.80 meters at 3.90 g/t gold, come from a previously undrilled, near-surface gap in the bulk-tonnage resource. So that lends to the potential to add that gap on our model to our resource."
A short intersection returned 0.45 meters at 29.10 g/t gold. "It is good to see some high grades coming in from the part of our deposit that is supposed to be more low grade. We are seeing some nice intersections with a substantial grade," Roque said.
"This first set of results are extremely positive and significant to us. They all contained gold mineralization, confirmed and added confidence to historical results, and have the potential to add near-surface ounces to our already significant resource of 1 million ounces," Roque added.
Cassiar just released assays from the next seven holes at Taurus, and highlights include 2.37 g/t Au over 25.07 meters in hole 20TA-110 including two occurrences of visible gold in quartz veins, from the hanging wall of the Taurus West fault, as well as 1.78 g/t Au over 32.79 m in hole 20TA-119, also from the hanging wall of the Taurus West Fault.
In addition, the company reported "exploration drilling at Wings Canyon yielded encouraging results with 0.64 g/t Au over 16.84 m and 19.50 g/t Au over 0.50 m, supporting near-surface potential beyond Taurus at North Cassiar." Wings Canyon is located 600 meters south of Taurus.
"We are extremely pleased with our second set of assay results from our drill program at the Taurus Deposit. All drill holes came in mineralized and it is very exciting to hit visible gold. We also have some really impressive intervals with grades above our resource grade in sparsely drilled parts of our resource," Roque stated.
"We are really looking forward to see how these results may impact our resource model," Roque added.
Roque noted that the company's strategy is to "continue exploring and expanding the Taurus Deposit while we shift our focus toward the high-grade targets at South Cassiar, a few kilometers south of Taurus and a former high-grade gold producer hosting a high-grade historical resource."
The Cassiar South target, which was known as Table Mountain, has a 2010 historical resource of approximately 70,000 ounces of gold.** That target saw 350,000 ounces of gold mined underground historically, as well as 100,000 ounces of placer gold removed during a gold rush back in the late 1800s.
Cassiar expects to run a 15,000-meter drill program on Cassiar South next year. "Right now we are building a geological model and are doing some geophysics, preparing for next year's drill campaign," Roque said.
The company recently closed a CA$6.65 oversubscribed private placement that makes all that drilling possible. "We are fully financed for 2021," Roque noted.
Cassiar also announced recently the appointment of geologist David Rhys to its Advisory Committee. "David is one of the best geologists in the world on orogenic gold deposits. And, interestingly, he worked on this property a decade ago. His previous experience with the Cassiar Gold District will be of great value to the company as we advance the targeting process for our ambitious 15,000-meter exploration drilling program in 2021," Roque said.
"Our technical advisors are a major asset to the Cassiar Gold project," stated Kaesy Gladwin, VP Exploration of Cassiar Gold."Doug Kirwin's international success and James Maxwell's experience in northern Canada have really increased the depth of our exploration team. The technical experience and project knowledge that David brings will complete a top-notch advisory committee."
Brien Lundin, in the September issue of Gold Newsletter, highlighted Cassiar's management. "The management team is packed with talent, including Chief Technical Advisor Doug Kirwin, who led the Ivanhoe Mines team that made the super-giant Hugo Dommet discovery at the Oyu Tolgoi project in Mongolia. Other key players include Director Stephen Letwin (past president and CEO of IAMGOLD) and CEO and Director Marco Roque, who has extensive capital markets expertise."
"I'm adding Margaux Resources [Cassiar Gold] to our portfolio as a new recommendation based on the potential of Cassiar, the company's flagship gold project in northern British Columbia," Lundin wrote.
Cassiar has around 54 million shares outstanding, and about 80 million fully diluted. Board, management, advisors and insiders own 36.58%, institutions 23.60% and others 39.82%.
*Zelligan, S., 2019. National Instrument 43-101 Technical Report on the Cassiar Gold Property (Amended). November 12, 2019. Report filed on Sedar.
**Pearson, C. and F.J. Bakker, 2010. Technical Report on the Table Mountain Property, Liard Mining District, British Columbia, for Hawthorne Gold Corp., May 18, 2010. Report filed on Sedar.
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