The first diamond drill results from White Gold Corp.'s (WGO:TSX.V; WHGOF:OTCQX; 29W:FRA) Betty Ford property in the Yukon "hit broad zones of high grade near surface," Stifel analyst Stephen Soock reported in a Nov. 17 research note. Betty is one of the company's several advanced exploration targets to drill.
"These sorts of high grades over broad widths near surface have potential to build another center of economic ounces quickly, even within a limited surface footprint," Soock added.
The new data are from six holes comprising the first drilling completed at Betty since 2018. Two of the holes hit significant gold mineralization within the upper oxide portion of a newly identified breccia. From those, the best intercept was 50 meters (50m) of 3.5 grams per ton gold (3.5 g/t Au) from 33m deep, including 5.25 g/t over 19m. Another highlight assay was 48m of 1.17 g/t Au from 19m deep, including 2.38 g/t over 10m.
Soock concluded that "today's results are significant in that this could represent a new, high grade 'center of gravity.'" In fact, the in soil gold anomaly extends beyond the breccia unit's boundaries, "indicating there may be another structural control to the gold mineralization with greater extents."
Additionally, all six holes hit a separate style of narrower silver-lead-zinc mineralization in breccia. This could be the distal portion of a porphyry system, Soock noted, possibly even part of the polymetallic mineralization of the Mascot target 4 kilometers away. This newly encountered mineralization "is a new piece of the geologic picture," which could help White Gold make additional gold discoveries on its expansive land package.
In light of these results, White Gold intends to conduct follow-up rotary air blast drilling early in 2022. For the summer, it plans a diamond drill program.
Stifel has a Buy rating and a CA$2.70 per share target price on White Gold, the stock of which is now trading at around CA$0.70 per share.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Important Disclosures and Certifications
I, Stephen Soock, certify that the views expressed in this research report accurately reflect my personal views about the subject securities or issuers; and I, Stephen Soock, certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report.
White Gold is a client of Stifel Canada or an affiliate or was a client of Stifel Canada or an affiliate within the past 12 months.
White Gold is provided with investment banking services by Stifel Canada or an affiliate or was provided with investment banking services by Stifel Canada or an affiliate within the past 12 months.
Stifel Canada or an affiliate has received compensation for investment banking services from White Gold in the past 12 months.
Stifel Canada or an affiliate expects to receive or intends to seek compensation for investment banking services from White Gold in the next 3 months.
The equity research analyst(s) responsible for the preparation of this report receive(s) compensation based on various factors, including Stifel's overall revenue, which includes investment banking revenue.
