Sierra Nevada Gold (ASX:SNX) has received ‘encouraging’ results following a maiden reverse circulation (RC) drilling program at its Colorback Gold Project in Nevada, US.
The results, generated by 5 RC drillholes for 378m, have confirmed the presence of near-surface oxide gold mineralisation within the project, which verifies historic drilling that outlined zones of near surface oxidised gold mineralisation.
Adding on, Sierra Nevada Gold confirms the gold mineralisation is associated with the intersection of the interpreted major northwest trending “Cortez” structures and the north-northeast trending “Pipeline” structures.
“This result is very encouraging, and we look forward to further exploration at Colorback”
Key results include hole CBRC001 with 29.26m @ 1.30g/t gold (Au) including 7.32m @ 3.61g/t Au from 7.32m depth. Further RC drilling is planned at the company’s flagship Warrior and New Pass projects in the coming weeks.
Speaking on the results, Sierra Nevada Gold Executive Chairman Peter Moore said: “With our initial RC drill program at Colorback, we have confirmed the oxidised gold “leakage anomaly” and positive assays at the interpreted regional structural intersection of two very large, structurally-focused gold systems.
This result is very encouraging, and we look forward to further exploration at Colorback, as well as further exploration and recommencement of drilling at New Pass and Warrior, and results from our ongoing work at Blackhawk.”
The company also notes it is ‘very encouraged’ that the intersection of these key structural trends coincides with ‘significant’ gold enrichment within the Upper Plate rocks which demonstrates potential for these structures to either host or control the emplacement of Carlin style mineralisation at depth.
As of 2pm AEST, the company’s share price has increased by 18.750%.
Sierra Nevada Gold is an ASX-listed company focused on building a pipeline of precious and base metal discoveries in Nevada, US. The company’s Colorback project is located in proximity of the nearby Pipeline deposit, Cortez Complex, and Barrick Gold’s (NYSE:GOLD) recent Goldrush and Fourmile discoveries, which all boast over 15 million ounces (Mozs) of gold respectively.
Other assets included in the company’s exploration portfolio include the Blackhawk and New Pass projects in Nevada.