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Dear Fellow Investor,
As gold districts go, it doesn’t get too much better than Nevada.
Deposits can run upwards of 10 million ounces. Majors like Barrick and Newmont Goldcorp have core operations there, with a focus on the prolific Carlin Trend.
The state has recorded 224.0 million ounces of historical gold production. In 2017, it produced 5.64 million ounces of gold, or fully 73% of U.S. gold production.
And there’s much more to come.
You see, as much as is known about the geology of the region and the Carlin Trend in particular, there’s still room for new geologic ideas to unlock the potential of new projects.
That’s exactly what appears to be developing with Contact Gold’s (C.V; CGOL.OTC) Green Springs project.
Just acquired this summer, the company has moved ahead with an aggressive drilling program designed to test for another layer of gold mineralization below that originally identified on the project.
Simply put, if the drills turning now on this project find gold below the known mineralization at Green Springs, things could get really interesting. And quickly, first results have just been released with more drill results expected in days.
Hunting For Gold On The Edge Of The Carlin Trend
Located southwest of the town of Ely, Green Springs lies at the southern edge of the Carlin Trend.
Acquired from Ely Gold Royalties this past July for a combination of shares, a $25,000 up-front payment and an aggregate of future payments over four years of $250,000, the project comes with a past-producing heap leach operation that generated 74,000 ounces of gold at 2.3 g/t between 1988 and 1990.
Better still, there are five oxide heap leach mines within 40 kilometers of the property, which means any additional ore discovered at Green Springs could likely be quickly and inexpensively processed.
The project came with a treasure trove of data, which the team at Contact Gold wasted no time in analyzing. Of particular interest were thick intercepts of oxide mineralization found along more than four kilometers of strike on the project.
What Lies Below?
The analysis of the prior data has already yielded significant results. Notable were the high-grade intercepts that came from reverse circulation splits drilled by Ely Gold in 2015.
Contact conducted gold cyanide solubility assays of those intercepts to establish the oxidation levels of the mineralization. The results were impressive.
Not only did the tests produce recoveries of between 96% and 100%, but the assays were eye-popping as well.
The highlight hole came from the Echo target at Green Springs, with Hole 6 cutting 39.6 meters of 5.1 g/t gold, including 16.7 meters of 9.0 g/t gold!
To give you a sense of how rich that intersection is, consider that pretty much any oxidized section of gold mineralization around 1 g/t in Nevada gets mined.
Combined with other thick intersections of mineable grade gold on the Echo and Charlie targets, this highlight interval bodes well for Green Springs to host a significant, untapped gold resource.
That’s especially true when you consider the potential implied by the image below.
The multiple dots near the surface of the image indicate where the mineralization at Green Spring has been either found or mined to date. Note that all of this mineralization occurs at the contact between the Chainman Shale and Joanna Limestone layers.
And while a good portion of that layer has already been mined, note the “orange” layer of the Pilot Shale. There are portions of the Green Springs property where that layer’s contact with Devil’s Gate Limestone comes to surface.
Why is that important you ask?
Only this — if the drills can establish oxidized gold mineralization at the Pilot-Devil’s Gate contact, it would open up a mineralized area spanning more than 4 kilometers below the previously mined material.
And given the grades and widths involved in the historical assays pulled from the Chainman Shale contact here, success with the drill bit could prove explosive for Contact Gold’s share price.
Breaking News:
Initial Assays Provide Proof Of Concept
To test its theory, Contact Gold conducted a 1,400-meter drilling program on Green Springs in late 2019.
The first results from that effort hit the newswires just days ago...and they provided the a proof of concept on the theory of more mineralization in the lower layers on the project.
You see, the first assays came from the Alpha target at Green Springs, where the Pilot-Shale-Devil’s Gate Limestone contact comes near surface. If that area was mineralized, then it’s very possible a good portion of the area where the layer lies at depth is also mineralized.
And mineralized it was: Hole 2 cut 1.3 g/t gold over 29.0 meters, including 2.0 g/t gold over 15.2 meters. Hole 1 hit 0.7 g/t gold over 9.1 meters and 0.5 g/t gold over 57.9 meters.
That sets the stage for the next batch of results, drilled below those impressive intersections from the Chainman Shale contact at the Charlie and Echo targets.
Again, if the mineralization pops up in the Pilot Share contact there, it could represent one of the more significant Nevada discoveries in recent memory.
Your Chance To Beat The Market To The Punch
With the assays from these targets just days away, the time is now to place a bet on the upcoming results.
Contact already knows where to look for the gold at Green Springs, now it just needs some solid assays from that Pilot Shale contact below the Charlie and Echo targets to show the potential for a vast, mineable gold resource.
And get this: Contact boasts another Carlin Trend play in its Pony Creek project which is adjacent to Gold Standard Ventures' Railroad project, providing a solid backstop on the company’s valuation.
In short, the risk-reward profile for Contact Gold is outstanding.
Drill-hole speculations don’t come more tantalizing than this, as the upside at Green Springs is huge. Contact Gold is a smart-money play on the potential to make Nevada’s next big discovery.
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