A very large propertyI did some extensive calulations and even with todays dilution that I-80 gold has endured the Paycore property alone is worth at least 50 cents a share towards todays IAU share price of $1.39. In otherwords due to rising metal prices and even with depressed share prices just this property alone is worth over $150 million, And that is probably an extreme under-estimation. The most recently released drill hole from Paycore Minerals’ (TSXV: CORE) FAD property in Nevada’s Battle Mountain-Eureka Gold belt returned 12.5 metres of 22% zinc, 44.8 metres of 6.3% zinc, and also confirmed the presence of significant gold mineralization at the polymetallic deposit.
Paycore, which only listed on the TSX Venture Exchange in April, has completed over 10,264 metres of drilling to date at the 100% project, and announced assays for seven holes.
Drill results from hole PC22-07, released on Sept. 7, revealed 5 metres of 22% zinc, 1.5% lead, 155.5 grams silver per tonne and 1.06 grams gold per tonne from a depth of 660 metres. The same hole cut 8 metres of 6.3% zinc, 3.7% lead, 231.6 grams silver and 2.03 grams gold from 705 metres. True widths are estimated at 90-100% of reported lengths.
Paycore Minerals’ FAD polymetallic property in Nevada. Credit: Paycore Minerals
Thinner intercepts showed even higher-grade gold, including 4.6 metres of 6.36 grams gold per tonne and 3 metres of 8.33 grams gold per tonne.
Carbonate replacement deposits like Paycore’s FAD property typically have high concentrations of base metals, including zinc and lead with little to no gold mineralization, explained James Gowans, Paycore’s non-executive board chair, in a press release.
“The FAD project is very interesting given the presence of gold mineralization in the system and is believed to be associated with the Carlin deposit located directly next to FAD,” he noted.
Hole PC22-07 was drilled into the South-East Lobe of the property, which is a 200-metre step-out from the FAD Main Zone, further extending the potential size and thickness of the FAD mineralization, which currently has a footprint of roughly 1.5 by 1.5 km and is open in multiple directions.
The company plans to continue drilling the FAD Main zone with a focus on the southern lobe, where it sees potential to expand the size of the deposit.
The FAD deposit was discovered in the 1950s following a large-scale, $3-million exploration effort led by Hecla Mining (NYSE: HL). The property was mined intermittently from 1956 to 1958 but abandoned due to challenges with groundwater, drilling and the high cost of the project. Toronto-based Paycore claims it is the first company to initiate drilling on the deposit in more than 50 years.
A feasibility study carried out for Hecla in 1974 outlined a historic (non NI 43-101) resource of approximately 3.9 million tons grading 5.14 grams gold per tonne, 196.46 grams silver per tonne, 7.99% zinc and 3.8% lead.
“Historic drilling outside the FAD Zone suggests significant room for expansion than what is seen in the known FAD mineralization,” said exploration manager Gary Edmondo. “Historic drilling also supports mineralization in differing horizons as has been shown by intercepts recently announced by i-80 Gold (TSX: IAU; NYSE: IAUX) at Archimedes 1.5 km away.” The Archimedes open pit is part of i-80’s Ruby Mine complex.
The FAD property is located less than 3 miles from Eureka, Nev., and has established infrastructure, including a shaft, roads and old buildings. It was previously owned by Homestake Mining and came under Barrick Gold (TSX: ABX; NYSE: GOLD) ownership when Barrick acquired Homestake in 2001.
Paycore’s shares rose as much as 43¢ (43%) on the news to $1.44 apiece. On Friday afternoon, they traded at $1.36 each. With nearly 28 million shares outstanding, Paycore has a market capitalization of $38.1 million.