Cyon Exploration Ltd. (CYON:TSX.V; CYNXF:OTCQB) has seen a lot of changes recently. The company changed its name from True Grit Resources to Cyon Exploration Ltd. It received approval for NEX reactivation and graduation to Tier 2 of the TSX Venture Exchange, and also listed on the OTCQB in the U.S.; a new management team has come on, and exploration drilling has begun. Plus in early June Cyon closed the acquisition of 1296067 B.C. Ltd., which held mineral claims and interest in leases of the Black Rock Canyon property.
Professional geologist Brian Thurston recently took over as president and CEO. He brings to the company 28 years of experience of working in public companies on projects around the world: North, Central and South America, Africa and India; in 2004 he transitioned from geologist to corporate management, founding and working for several public companies. He has brought in a new CFO and corporate secretary.
Under the new management, Cyon began drilling on its Black Rock Canyon property, which is situated within Nevada's Cortez Gold Trend. "That's a segment of the Battle Mountain Eureka mineral belt," Thurston told Streetwise Reports. "As of December 2018, the Pipeline-Cortez Mining Complex, located approximately 10-15 miles southeast of the Black Rock Canyon property, had about 45 million ounces of gold in documented past production and historical Proven and Probable resource and historical Inferred mineral resource. There are mines all around us that are in production."
Thurston noted that the Pipeline and Cortez deposits are examples of the Carlin type sedimentary rock-hosted disseminated gold deposits. "The gold mineralization is principally hosted within a silty limestone," he explained. "These deposits are in the Roberts Mountain and Wenban Formations in the footwall of the Roberts Mountain thrust fault system of the lower plate of the formation. Those are the targets we are looking for."
"Historical drilling adjacent to our property has shown anomalous concentrations of gold and other elements. One interpretation geologically is it could be leakage from one of the skarn or Carlin-type deposits from the lower formation," Thurston explained.
All the drilling on the property to date has been within the upper plate of the formation, but now the company is preparing to explore the lower plate. To that end it has drilled three pre-collar holes using reverse circulation drills to drill into the upper plate, down to approximately the 900-foot level.
"Historical records indicate that a total of 209 holes were drilled on and near the current property by at least eight different operators from 1986 through 2006, including companies such as Placer Dome, Teck Resources Inc. and Homestake Mining Co.," Thurston explained.
"The U.S. Geological Survey in 1965 projected that the Roberts Mountain lower plate would be at a depth of 5,000 feet. A more recent seismic survey by GeoInformatics indicated the depth of the Roberts Mountain Formation in and around our area would be about 1,500 feet below the surface, especially in the southern area of our property," Thurston explained. "We are planning to drill to a depth of 5,000 feet and if we are able to intersect the lower plate before that depth, great. The goal of this drilling is to see what the depth of the lower plate rocks is."
The company will begin the core drilling at roughly 900 feet. "Most of the historical holes were drilled by reverse circulation drilling, which would limit the depth potential by its nature. Holes were drilled on average to depths of between 100 feet and 500 feet, with some holes down to around 1,000 feet. For comparison, our pre-collar drill holes ended at depths of 820 feet, 930 feet and 840 feet, so I would not have expected any of the previous holes to pass through the upper plate rocks of the Roberts Mountain Formation," Thurston noted.
Cyon expects to have assay results from the reverse circulation drilling samples of the RC holes. Although the company is not expecting to hit high grade gold, it is hopeful that anomalous values of gold and other pathfinder minerals are intersected that may provide proof of leakage from a larger deposit at depth.
On June 8, Cyon announced that it had completed the acquisition of 1296067 B.C. Ltd., which held claims and lease interests in the Black Rock Canyon property, formerly owned by Metals Exploration Inc., comprising around 3,894 acres, 31 lode claims totaling 620 acres, and 440 acres of fee minerals lease, in exchange for 12 million common shares of Cyon. This agreement supersedes and reduces the acquisition costs laid out in the Mineral Option Agreement of March 13, 2020.
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