Comstock Metals CEO David Terry shares highlights from the winter drill program at the Preview SW gold project, along with exciting developments in the Yukon’s White Gold District.
Comstock Metals (TSXV:CSL) is focused on advancing two resource-stage gold projects in the premier Canadian mining jurisdictions of Saskatchewan and the Yukon.
Comstock’s flagship property is the QV gold project located in the Yukon’s prolific White Gold District. QV hosts the VG deposit, which has a NI 43-101 compliant inferred resource of 230,000 ounces of gold situated 11 kilometers north of the +1-million-ounce Golden Saddle deposit, acquired not long ago by White Gold (TSXV:WGO).
In Saskatchewan, Comstock recently acquired the Preview SW gold project. The property has a NI 43-101 compliant indicated resource of 158,300 ounces of gold and an inferred resource of 270,800 ounces of gold.
Both of Comstock’s projects have excellent potential for resource expansion and further discoveries. Drilling during the winter program at the Preview SW project intersected multiple zones of gold mineralization in step-out holes at the North zone and successfully infilled an open area of the resource model with hole 169, which intersected multiple close-spaced vein zones with a weighted average of 1.01 g/t gold over 104.8 meters. The program also extended the SW deposit to the northeast by 30 meters.
Comstock’s 2017 exploration plans for the QV project include detailed soil grids, geological mapping and sampling on a number of high-potential targets. The program will also feature up to 2,000 meters of diamond drilling to the west and east of the VG deposit as a follow up on positive results from the 2016 RAB drill program. Below is the transcript of our conversation with Comstock Metals CEO David Terry.
Investing News Network: Please give our audience some background on your Preview SW gold project in Saskatchewan.
David Terry: The Preview SW gold project is a road-accessible project located 40 kilometers north of La Ronge, Saskatchewan, and about 80 kilometers southwest of Silver Standard Resources’ (TSX:SSO,NASDAQ:SSRI) Seabee gold mine in the La Ronge Gold Belt. Saskatchewan itself is a pro-mining and development jurisdiction and was ranked number one out of 104 global mining jurisdictions by the Fraser Institute in its Investment Attractiveness Index in 2016.
We acquired the project for shares last fall, and we are quite fortunate that it had a very large legacy database that included data from 162 core holes totaling more than 26,000 meters of drilling carried out between 1985 and 2013. The property contains a 43-101 compliant resource which includes indicated resources of 2.6 million tonnes grading 1.9 grams gold for 158,000 ounces, and inferred resources of 5.7 million tonnes grading 1.5 grams for 270,800 ounces. Those are both based on a half-gram cut off.
The deposit itself is comprised of a number of sub-parallel northeast-trending gold-bearing quartz sulfide mineralized zones, which total about 550 meters in strike length and 150 meters across. In addition to the deposit, there are at least six other known gold zones on the property with only limited drilling. The Preview North zone, which is located 2.6 kilometers northeast and along strike of the main deposit, had a 2013 drill hole (number 163) that intersected 17.9 grams gold over 5.7 meters starting just 10 meters below surface, then a further intercept of almost 6 grams over 5.7 meters starting 19 meters below surface, and another intercept of 1.9 grams over 21 meters. That was all within an 83-meter drill hole.
Following up on this target, the Preview North zone has been one of the primary focuses of our work in 2017.
INN: You’ve had some excellent results from your winter drill program at Preview. Please share some of the highlights and their significance for the property.
DT: We completed approximately 1,800 meters of drilling in eight holes during the winter program. Five of those were drilled on the Preview North target and three on the northern end of the deposit area itself. At Preview North, we completed holes that stepped out along strike and below hole 163, and we intersected multiple zones of gold mineralization associated with the quartz-carbonate vein zones and sulfides in each one of those drill holes.
Highlights included 5 meters of 10.3 grams in hole 166 and 1.6 meters of 83.4 grams in hole 164. We identified a trend of gold-bearing quartz veins that are hosted in an approximately 60-meter thick package of sheared volcanic rocks with a strike length of approximately 200 meters, extending from a historical adit, south through a large open cut and series of trenches to the area that we drilled around hole 163.
We have holes in several locations along the trend down to 100 meters or so vertically below surface, but we really need to do more drilling to evaluate its overall potential. In the deposit area, further to the south, we’ve successfully infilled an open area of the resource model with hole 169, which intersected multiple close-spaced vein zones and had a weighted average of just over 1 gram over 105 meters.
We also extended the deposit to the northeast with a 30-meter step out in hole 170, and we intersected some high grades in hole 171, which was a 45-meter step back on a section below a previous drill hole with some high grades from 2013.
INN: What does Comstock have planned next for Preview?
DT: At Preview, we are currently just finalizing plans for a summer exploration program that will include some follow-up drilling on the encouraging results from the winter program. We are going to focus again on Preview North and also target expansions to the deposit area. As part of that, we’re also planning on carrying out some detailed ground geophysics and additional surface work, including structural interpretation to advance other targets on the property to the drill stage.
We have the exploration camp intact and the drill is still on site, so our start up for that program will be very quick and we are excited to get started.
INN: Please tell us about your QV project in Yukon’s White Gold District and the opportunity there?
DT: The QV property is more than 16,000 hectares, so it is a very large property located in the heart of the White Gold District in the Yukon. It is approximately 70 kilometers south of Dawson and 44 kilometers northeast of Goldcorp’s (TSX:G,NYSE:GG) Coffee project, which was acquired through an acquisition of Kaminak Gold in 2016.
We are also 11 kilometers north of White Gold’s Golden Saddle deposit, which they just acquired recently. To date, Comstock has completed 3,400 meters of core drilling in 17 holes on the QV property, which formed a basis for a maiden resource estimate totaling 4.4 million tonnes grading 1.65 g/t gold, for total of 230,000 contained ounces at a half-gram cut off.
In 2016, we have completed 2,400 meters of RAB drilling, which demonstrated that the VG deposit is open to expansion on its eastern and western flanks. Hole 17 from the 2016 RAB drilling program was a 45-meter step out on the western side of the VG deposit on the property. It had some really excellent results, intersecting 12.2 meters of 5.5 grams starting at 83 meters below surface within a wider interval of 58 meters grading 1.9 grams.
There are also a number of other promising targets elsewhere on the large property that we will be following up on in 2017.
INN: Kinross Gold (TSX:K,NYSE:KGC) recently sold its White Gold project immediately south of QV to White Gold for a 19.9-percent interest in the company. What’s your take on this deal?
DT: I think it’s extremely positive for the district as a whole. The White Gold project is on the QV southern and southwestern boundary, and as I said before, the Golden Saddle deposit is located only 11 kilometers to the south of the VG deposit on Comstock’s QV property. The two deposits are very similar in terms of their geological, structural and mineralogical characteristics. White Gold now has Agnico Eagle Mines (TSX:AEM,NYSE:AEM) and Kinross as major shareholders, and with Goldcorp working a little bit further to the south on the Coffee project I think the district has really captured the attention of some of the best major mining companies. I believe that will certainly be a benefit to Comstock as it continues to advance its exploration on the QV project.
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