Yukon gold explorer Snowline Gold Corp. (SCD:CSE; SNWGF:OTCQB), today announced "initial, preliminary assay results from its 2022 drilling program at the Valley Zone, Rogue Project, Yukon."
The company stated that drilling completed in two holes at the Valley Zone, Holes V-22-005 and V-22-007, had intersected a broad central corridor of mineralization averaging greater than 1.5 g/t Au (grams per ton gold) over substantial widths.
The firm indicated that starting from a near-surface depth of 5.1m (meters) to a depth of 288.0m, assay results from Hole V-22-007 returned an average of 2.30 g/t Au over 282.9m, including 146 m of 3.24 g/t Au. The company noted that the hole was extended another 127.1m deeper, and it is still waiting to receive those results. Snowline Gold commented that the gold grade values measured within Hole V-22-007 showed a high degree of consistency, with 72.4% of the core length returning assays higher than 1.0 g/t Au.
Snowline listed that starting from a depth of 7.7m, core samples from Hole V-22-005 registered 331m of 1.03 g/t Au that included 191.95m of 1.52 g/t Au.
The company stated that drilling at both targets is ongoing and noted that assays are pending for a majority of its active drill program.
Snowline Gold Corp.'s CEO and Director Scott Berdahl remarked, "Our initial assay results demonstrate increasing scale and fertility in the Valley Zone … In an aggressive step back 154 m to test the width of the system with Hole V-22-005 and an aggressive step out 340 m along the length of the system with V-22-007, we've encountered grades and intervals greater than those of our discovery holes last season. These high grades are associated with unusually high quartz vein densities that are present across a large area."
"The Valley discovery is a work in progress — we eagerly await the remainder of results for V-22-007 and for many other holes from this year's ongoing drill campaign," CEO Berdahl added.
The firm mentioned that Holes V-22-005 and V-22-006 were drilled in order to test the width of the mineralized quartz vein system adjacent to the 2021 discovery hole V-22-003. The company noted that, as it reported previously in February 2022, results from hole V-22-003 had returned 1.25 g/t Au over 168.7m beginning from bedrock surface.
The company provided a general update on the status of its exploration efforts. The firm said it presently has two drills deployed and active at the Rogue Valley Zone, where a total of 7,554m of drilling has been completed to date.
Snowline indicated that it is now proceeding with initial drilling at the nearby Gracie Zone, where at Hole G-22-001, the company encountered three separate instances of trace visible gold.
The company explained that the Rogue's Valley Zone demonstrates the potential for a bulk tonnage gold target with features that are "similar to Kinross Gold's Fort Knox Mine in Alaska and Victoria Gold's Eagle Mine in the Yukon." Snowline commented that "it considers the Rogue Project to have district-scale prospectivity for reduced-intrusion related gold systems." The company noted that the Valley is still an early-stage exploration project and that a resource estimate has not yet been completed for the project.
The firm advised that cores samples collected at that Valley project were processed according to strict protocols and were shipped to ALS Laboratories' prep facility in Whitehorse, Yukon, with the analyses being conducted in Vancouver, B.C. The company added that any samples that registered greater than 2.0 g/t Au by fire assay and samples with visible gold will be subjected to further testing and analysis to ensure against under-reporting true ore grades. The company reiterated that the results released today are to be considered as preliminary as they were based upon a small percentage of abnormal assays from standard and blank samples.
Snowline Gold mentioned that during July and August 2022, a total of 5,033,018 warrants were exercised by investors, which in turn generated gross proceeds in the amount of CA$2,611,205.75 to the company.
Snowline Gold is an exploration firm headquartered in Vancouver, B.C. Canada that is focused on gold exploration in the Yukon Territory's Selwyn Basin. The company has a portfolio of seven projects that together cover more than 127,000 ha. The firm listed that its "Flagship" Einarson and Rogue gold projects encompass greater than 85,000 ha and that "its first-mover land position and extensive database provide a unique opportunity for investors to be part of multiple discoveries and the creation of a new greenfield gold district."
Snowline Gold began the day with a market cap of around US$207.9 million, with approximately 89.2 million shares outstanding. SNWGF shares opened 13% higher today at US$2.64 (+US$0.31, +13.30%) over yesterday's US$2.33 closing price and reached a new 52-week high price this morning of US$3.1299. The stock traded today between US$2.50 and US$3.1299 per share and closed for trading at US$2.63 (+US$0.30, +12.88%).
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