Gold Exploration Co. Releases Excellent Drill Results

Contact Gold Corp. (CGOLF:OTCMKTS;C:TSXV) has released its second batch of drill results from its exploration project at the company's Green Springs gold project. Located on the Cortez trend in northeastern Nevada, the project is part of a US$10 million earn-in from a wholly-owned subsidiary of Centerra Gold Inc. 

4,028 meters were drilled during this year's program, consisting of 29 holes. These recent drill results show the company found 1.90 grams per tonne (g/t) gold (Au) over 25.91 meters from a depth of 89.92 meters in drill hole GS23-10, including 2.50 g/t Au over 18.29 meters.

Drill hole GS23-11 yielded 1.41 g/t Au over 12.19 meters from a depth of 85.34 meters, including 2.45 g/t Au over 4.57 meters, and drill hole GS23-12 yielded 1.67 g/t Au over 10.67 meters, from a depth of 85.34 meters, including 2.03 g/t Au over 7.62 meters.

President and CEO of Contact Gold, Matthew Lennox-King, said, "The excellent results from the most recently received X-ray drill holes are extremely significant as they successfully extended gold mineralization to the northeast, increasing the drilled footprint of gold mineralization at this emerging oxide gold zone. Just like the previous holes drilled at X-Ray, they are well oxidized, thick, and boast some of the highest grades seen at Green Springs."

Nevada was rated as the world's most attractive state-level region for mining by the Fraser Institute in 2022 and accounted for 77% of gold production in the U.S. in 2021, with 4.47 million ounces. 

He also went on to express the company's gratitude to drill contractor Boart Longyear, partner Centerra Gold, and the entire Contact Gold team at Green Springs.

In a press release, the company stated: "Gold mineralization at the X-Ray Zone is characterized by strong grades, oxidation, and continuity, and is hosted at the lower Pilot Shale contact with the underlying Guilmette limestone. The Pilot Shale is an important regional host unit in eastern Nevada and is host to the Pan Mine and Alligator Ridge, among others."

According to its website, "Contact Gold is a gold exploration company focused on leveraging its properties, people, technology, and capital to make district-scale gold discoveries in Nevada." Its Green Springs project is located 60km southwest of the historic mining center of Ely, Nevada, and is made up of 19.5 km2 of prospective ground, including three shallow past-producing open pits. 

As well as its project at Green Springs, the company has a resource stage project at Pony Creek, also located in Nevada, which totals 59.6 km2. Pony Creek's large areas of prospective areas have not yet seen much exploration.

Caesars Report called Contact Gold's latest results "excellent" and mentioned that "only two holes" did not hit any significant intercepts. It also reported: "The grade isn't spectacular, but compared to other oxide gold deposits in the state, it should exceed the cutoff grade of economic mineralization."

According to Reuters, gold is hovering near a five-month low as the focus turns toward the Jackson Hole symposium. Gold prices have fallen to their lowest level since March due to predictions based on U.S. economic data that interest rates will stay higher for longer. 

Nevada was rated as the world's most attractive state-level region for mining by the Fraser Institute in 2022 and accounted for 77% of gold production in the U.S. in 2021, with 4.47 million ounces. 

Contact Gold's Nevada projects at Green Springs and Pony Creek are led by a team with a track record for gold discoveries. Vance Spalding serves as Vice President of Exploration and has over 28 years of experience in gold exploration. 

Both Green Springs and Pony Creek are established oxide, Carlin-type gold projects. Pony Creek has solid resource expansion and exploration potential, with a maiden resource estimate of 433,000 pit-constrained gold ounces at 0.52 g/t Au. 

In an August 14 posting, Caesars Report called Contact Gold's latest results "excellent" and mentioned that "only two holes" did not hit any significant intercepts. It also reported: "The grade isn't spectacular, but compared to other oxide gold deposits in the state, it should exceed the cutoff grade of economic mineralization."

Upcoming Catalysts

Contact Gold has significant large-scale new exploration targets to be drilled at Pony Creek in areas known as Mustang, Elliot Dome, and Palomino. It will be targeting resource expansion during the second half of 2023. 

The company will continue to focus on near-surface oxide targets, defined through mapping, geophysics, rock and soil sampling, stratigraphy, and structural interpretation.

Its earn-in agreement with Centerra will allow for increased exploration spend at Green Springs, as well as the allocation of additional capital to Pony Creek.

Ownership and Share Structure

Contact Gold Corp. is headquartered in Vancouver, Canada. It has 80 million warrants, 14.1 million options, and 351.5 million shares outstanding. 

The company has an implied market cap of CA$7.046 million and trades at a 52-week range of CA$0.02 and CA$0.04.

According to Reuters, 10.48% of the company is held by management and insiders. President, CEO, and Director Matthew Lennox-King has 5.48%, with 19.31 million shares. Chairman John Dorward has 3.28%, with 11.55 million, and Director Andrew Farncormb has 1.38%, with 4.85 million.

7.66% is with institutions. Ruffer LLP has 6.24%, with 22 million shares, and U.S. Global Investors Inc. has 1.42%, with 5 million.

The rest is with retail investors.

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