RE:I asked IR about Assay Delays
WisGuy1 wrote: Got this back about a 1/2 hour later: "Thank you for the email. I understand your concern when it comes to assay delays. We attribute this issue to lab backlogs that is plaguing juniors across the sector. It is a problem not unique to Snowline. For the remainder of our 2022 assays, we are contractually obligated to use our current lab. Much like many other companies, we have expressed our concern and are actively looking for the most efficient solution, including alternative companies to process our assays in the future.
The results from Valley this season have continued to demonstrate the footprint of this system and have served as de-risking events. Further to that, we believe metallurgical testing results should confirm this.
Your long-term perspective is important as Snowline was built around the idea that there is an unrecognized gold district sitting out there. We have many high priority targets in our pipeline with the potential of new discoveries. Our upcoming drill campaign will focus on building out the size of Valley, drilling more of Gracie and spending time trying to make additional discoveries on our other projects. Valley is not the only target we have, we believe there is still a lot to uncover.
I hope this helps answer your questions and concerns.
Thank you,"
Stephanie Hansen
Director of Marketing & Investor Relations
Thanks for sharing wiseguy. Good to see Snowline get back to you so quickly. I'm not concerned by the delay in the assays. Covid has interrupted the way so many industries conduct business that it has changed the world.
As far as the assay labs go I think the Chrysos PhotonAssay method of assaying is the answer like retiredgeo mentioned. It is a non destructive method of testing that will eventually replace the old fire assay method of testing that destroys half the drill core. I believe NFG have started using the Val D'Or lab in Quebec that recently started using the Chrysos PhotonAssay method of testing. It is so much faster and the rock samples are not destroyed which is beneficial.
I hope Snowline gets aggressive with their drilling program this summer and brings in more drills to test other targets. Both Scott Berdahl and now Stephanie Hansen have mentioned drilling other targets this coming summer so they will have to bring in more drills if they want to make more discoveries and increase shareholder value.
With the short drilling season in the Yukon they have to take advantage of the time available to them. At the same time they may not want to spend too much money so we will see what happens. Snowline is definitely my favourite gold junior right now but there are other attractive ones out there as well worth investing in.The market sentiment in the gold sector appears to be poor at the moment but it should improve as the year moves along. Gold should set new all time highs sometime in 2023.