Endurance Gold Corp. (EDG:TSX.V; ENDGF:OTC; 3EG:FSE) encountered, on drilling the deepest hole yet at its Reliance project in British Columbia, a new area of high-grade gold mineralization below an existing zone, reported Ben Pirie, equity research analyst at Atrium Research, in a Dec. 16 research note.
"We are highly encouraged by today's results and are increasingly bullish on the size potential of this system," Pirie wrote.
285% Potential Return
On the news, Atrium Research reiterated its CA$0.50 per share target price on the Vancouver-based gold explorer, noted the analyst. From its share price at the time of the report of about CA$0.13, the return to target is 285%.
Endurance remains a Buy.
New Zone Confirmed
Endurance Gold placed drill hole DDH24-106 to test below the previously reported deepest intersection in the Imperial zone, and the result was positive, reported Pirie.
As expected, the hole hit the Imperial zone at 386m downhole, significantly extending it by about 185m downdip. The highlight intercept at this depth was 3.51 grams per ton gold (3.51 g/t Au) over 6.7 meters (6.7m), including 10.34 g/t Au over 1.7m.
Further downhole at about 608m, the drill bit intersected a new, high-grade zone about 210m below Imperial, which the company is calling Lower Imperial. The highlight from Lower Imperial's lower contact zone is 7.18 g/t Au over 8.3m, including 28.08 g/t Au over 1.7m, within a wider intersection of 4.47 g/t Au over 15.3m. The upper contact zone returned a standout 4.35 g/t Au over 2m.
The newly identified zone is hosted in a coarse-grained gabbro intrusive, demonstrating "gold-bearing crackle breccia and veinlet textures associated with arsenopyrite," described Pirie. The entire gabbro body assayed at 4.47 g/t Au over 15.3m from 608–623m downhole.
"The drill hole was stopped at 650m with potential for mineralization to continue at depth," the analyst wrote.
Lower Imperial remains open and could potentially extend updip toward surface, parallel to Imperial. Were this the case, Lower Imperial would extend shallower and possibly connect to the recently discovered Lower Crown zone.
Also, Lower Imperial shows that the Royal Shear fault structure hosts mineralization over a vertical distance of 1.1 kilometer (1.1 km) and remains open.
"This new discovery supports the orogenic nature of the system by growing the vertical extent to over 1 km and opens significant new potential at depth along the ~1.5 km strike length of the Royal Shear," wrote Pirie.
Also of note, Endurance intersected gold mineralization between Imperial and Lower Imperial. Of the six high-grade intercepts encountered, the highlights were:
- 4.76 g/t Au over 3.5m, including 31.5 g/t Au over 0.4m
- 7.79 g/t Au over 0.5m
- 1.97 g/t Au over 5m, including 20.1 g/t Au over 0.4m
News Flow Expected
Pirie noted the upcoming events that could boost Endurance's share price. These include the release of drill results for the last 10 holes of the completed 2024 program, spanning 7,303m, are expected; updates on surface exploration work on the Olympic claims; and progress on a maiden mineral resource estimate.
Compelling Investment
In his report, Pirie also presented the key reasons why Atrium Research likes Endurance. One is the location of Reliance, in a historical mining camp and 10 km from the past-producing Bralorne mine that boasted 4,000,000 ounces of 17.7 g/t Au. Another positive is easy access to infrastructure from Reliance.
Further, Reliance boasts an epizonal orogenic gold system, wrote Pirie, a "multimillion-ounce, high-grade deposit in the making," showing "consistent and best-in-class drill results."
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Disclosures for Atrium Research, Endurance Gold Corp., December 16, 2024
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