Getchell Gold (CSE: GTCH) closed a non-brokered private placement whose net proceeds of $700,000 will be used for the next stage of exploration at the company’s Fondaway Canyon, Dixie Comstock and Star Point properties in Nevada.
In a press release, Getchell said the private placement totals 2,800,000 units at a price of $0.25 per unit. At the same time, each unit consists of one common share and one-half of one warrant of the company.
The Toronto-based miner said that, for Fondaway Canyon, it is currently designing a drill program whose goal is to provide high-value enhancement relative to cost and set the stage for the further advancement and development of the project.
Fondaway Canyon is Getchell Gold’s flagship project and a past gold producer with a significant in-the-ground historic resource estimate
Fondaway is located in Churchill County and contains 170 unpatented lode claims. Mineralization is contained in a series of 12 steeply dipping en-echelon quartz- sulphide shears outcropping at surface and extending laterally over 1,200 metres, with drill-proven depth extensions to > 400 metres.
The property has a history of previous surface exploration and mining in the late 1980s and early 1990s, while a 2017 technical report shows a historical estimate of indicated resources of 409,000 oz. Au contained in 2,050,000 tonnes grading 6.18 g/t and inferred resources of 660,000 oz. Au contained in 3,200,000 tonnes grading 6.4 g/t, using a 1.8-metre width cut-off and a cut-off grade of 3.43 g/t Au.
Dixie Comstock, on the other hand, consists of 26 unpatented lode claims and is a low-sulfidation, epithermal gold system localized along a moderately dipping range-front normal fault on the east flank of the Stillwater Range, also in Churchill County.
Dixie is the site of a historic mine with surface and four levels of underground development. A historic 1991 geologic and mining study completed by Mine Development Associates of Reno estimated a geologic resource containing 146,000 ounces of gold in 4.26 million tonnes grading 1.063 g/t Au at a cut-off grade of 0.34 g/t Au.
Star Point consists of 199 lode mining claims and is situated 65 kilometres to the north of Fondaway Canyon, in Pershing County. It is the site of a historic, near-surface, copper mining operation underlain by a magnetically defined intrusion.
According to Getchell, an IP-Resistivity survey conducted in 2018 over the intrusion returned chargeability and resistivity highs interpreted as potential copper sulphide mineralization, possibly intrusion-related. The primary target at Star Point is the strong conductor lying below the historic high-grade copper oxide mine.