In 2017, Contact Gold Corp. (TSX-V:C) identified high-grade, oxidized gold mineralization at its Pony Creek gold project situated in the famous Carlin Trend in Elko County, Nevada.
Exploration is ongoing to add to the data set and on Thursday the Vancouver-based company released results from the first five drill holes from its 2018 drill program at Pony Creek, which again didn't come up short with gold discovery.
The new drill program included step-out drilling to expand the gold mineralization from the exploration last year, as well as test new targets that materialized from previous drilling. So far in 2018, nine holes have been drilled, accounting for 2,000 metres of a planned 16,000 metres of reverse circulation and core drilling. Results from the other four holes are pending.
Highlights from the first five drill holes, all located in the Bowl Zone, included a cut of 2.51 grams per tonne (g/t) across 47.24 metres in drill hole PC18-03. Hole PC18-04 cut 1.00 g/t gold over 92.97 metres.
Starting near the surface (1.52 metres in depth), drill hole PC18-02 intersected 59.44 metres grading 0.53 g/t gold. A final highlight came from drill hole PC18-01, which cut 27.43 metres assaying 0.91 g/t gold.
"We are very pleased with these initial results, particularly the intersection of the best high-grade oxide gold zone in a step out hole so far from the western edge of the Bowl Zone at Pony Creek," said Contact Gold president and chief executive Matt Lennox-King in today's news release.
Mineralization on this area of the Bowl zone remains open to the north, which leads Contact Gold to believe that it could continue to the "West Target," which will be drilled in the coming months. Pony Creek is still in the early stages of exploration, but the company hopes it can turn into the latest large discovery in the southern Carlin Trend, one of the richest gold districts in the world.
Shares of C are spiking on the news, gaining 45.45% to 40 cents an hour into Thursday's trading session.
