Exploring the Gowganda West Project in northeast Ontario. Source: iMetal Resources Inc.
iMetal Resources Inc. [IMR-TSXV; ADTFF; A7V-Germ.] was an active trader Tuesday February 12 after the company said it is expanding its Phase 1 maiden drill program at its Gowganda West property in northeast Ontario.
The company said drilling will focus on the Zone 1 South target area where three holes have been completed, each to a depth of 250 metres.
Significantly, the gold mineralized and altered mafic volcanic and jasper conglomerate lithologies observed at surface (chip sampling returned gold values as high as 39.3 g/t) have been intersected by drilling and continue to depth with evidence of a widespread hydrothermal system, the company said in a press release on February 11, 2019.
iMetal shares were off 3.13% or $0.005 to 15.5 cents Tuesday on volume of almost 5 million, making iMetal the most actively traded company on the TSX Venture Exchange.
The 52-week range is $0.07 and 17 cents.
On February 5, 2019, the company said the first of the three holes was being logged at the company’s facilities in Kirkland Lake, Ontario.
“Given what our team has already observed in these initial holes, we are continuing and expanding this first-ever drill program with additional holes at Zone 1 South,” said iMetal President and CEO Johan Grandin.
“These are exciting times for iMetal shareholders as we target a new discovery in the Gowganda camp.”
Back in August, 2018, the company said it was moving ahead with exploration at the 105 km2 Gowganda West Project after receiving multi-year drill permits from the Ontario Ministry of Mines and Development.
Gowganda West is thought to host the projected eastward extension of the structural corridor that hosts Pan American Silver Corp.’s [PAAS-TSX, NASDAQ] Juby deposit, which contains 1.1 million ounces of gold in the measured and indicated category and 2.9 million ounces in the inferred category. Zone 1 South is located just 500 metres from the Juby deposit.
The company said Zone 1 South is easily accessible as it is adjacent to a logging road. Extensive clear-cutting at Gowganda West has helped to expose areas such as Zone 1 South as well as Zones 3A, 3B and 3C that occur several kilometres further south where chip samples returned values as high as 56 g/t gold and 2.6% copper.
Grandin has said he is confident that his exploration team can turn Gowganda West into “an exciting new discovery story.” That’s because of the extent of high-grade gold and copper surface showings on the property, its proximity to the Pan American Silver deposit and the lack of previous systematic exploration at Gowganda West.
Historically, Gowganda West has seen relatively little exploration. This is mainly because the property is covered by glacial overburden as well as meta-sediments.