Thoughts from Ewan Downie...

by Ewan Downie


Today’s press release is the first significant release of new drill results coming from our 2016 winter program. We have been focussing on our three targets areas at the Central Zone, Hasaga Porphry and North Gate with three active drills. During the first quarter we took advantage of our ideal winter drilling conditions to complete some 17,000 metres of drilling in 49 holes. We will continue drilling at the same pace until spring conditions dictate otherwise, prior to a drilling shutdown. We will use the short drilling break to update our internal mineral inventory and litho-structural models prior to reassessing where our priorities will focus during the summer season.

Each of our primary target areas has generated solid results during our winter campaign. We continue to see widespread mineralization at the Central Zone as evidenced by HLD052 (1.09 g/t Au across 177.0m) and HLD044 (0.78 g/t Au across 209.0m), however, there is not yet sufficient density of data to confidently project the geometry and continuity of any higher grade internal component. Some insight can be drawn by comparing the results drilled at the North Gate target where the high grade intercept in hole HNG010 (previously released) returned variable grades and widths over the relatively short distances implied by multiple wedged holes. As a result, care will be taken in managing the very high grade result at HMP089 (285.0 g/t Au across 1.0m) in future resource estimation work.

There is a bit more of a sense of optimism in the air as we enter the second quarter of the year. For now, the price of gold has managed to find a base above US$1200 and we are beginning to see some interest by “generalist” fund managers (those that don’t specialize just in the resource sector) during recent marketing in the United States. Any evidence that the same is true in Europe during April can only be viewed as a positive.