A little over a month after releasing encouraging results from channel samples at its Courcy property in the eastern portion of the Opinaca metasedimentary basin in Quebec, Stelmine Canada (TSX-V:STH) on Thursday said it has discovered a new gold zone on the southern part of its property.
Management says that more detailed work, including diamond drilling, will be completed this summer to investigate long gold-bearing lithologies discovered recently through geological mapping, sampling and stripping of overburden.
All tallied, the nanocap ($4-million market cap) holds 583 square kilometers of land in the region with similar geology to Goldcorp's (TSX:G)(NYSE:GG) Eleonore Mine that was inaugurated in July 2015.
The latest results divulged today on the Southern Zone included several instances of substantial gold. Values associated with the rock findings included 4.8 grams per tonne (g/t) gold, 24.8 g/t gold, 33.0 g/t gold and 167.0 g/t gold.
Not including the 167.0 g/t, gold assay values averaged 2.75 g/t across 41 samples.
Stelmaine described the structures as "kilometre-long folded features" and susceptible to form traps for gold mineralization. The aggregate of geological features point to the possibility of widespread gold mineralization, according to the Quebec City-based company.
Shares of STH are trading ahead 9.4% at 17.5 cents Thursday morning following the news release.
