Maiden Resource Estimate of 433,000 Inferred Ounces of Gold Vancouver, British Columbia--(Newsfile Corp. - January 11, 2022) - Contact Gold Corp. (TSXV: C) (OTCQB: CGOLF) (the "Company" or "Contact Gold") is pleased to announce an initial mineral resource estimate at its Pony Creek gold project located in Elko County, northeastern Nevada. Pony Creek is one of the Company's two advanced exploration-stage, Carlin-style gold projects in the Nevada.
The 100% owned Pony Creek project is strategically located immediately south of Gold Standard Ventures' South Railroad Project which is in the process of completing a feasibility study and permitting an open pit heap leach gold mining operation.
Key Points:
- 433,000 total inferred pit constrained ounces at an average grade of 0.52 grams per tonne (g/t) Au utilizing a US$1,600/oz pit shell and cut off grades of 0.14 and 0.22 g/t Au, depending upon recovery profile.
- Overall strip ratio of 2.98
- Clear opportunities to expand the footprint of near surface oxidized gold mineralization across Pony Creek
- The Stallion Zone is wide open for expansion in all directions, particularly along strike to the North
- The Bowl Zone remains open, particularly to the NW in the direction of the Palomino target
- Offset and infill drilling of mineralization at Appaloosa, Pony Spur and South Stallion targets
- The project hosts the large-scale undrilled Mustang and Elliot Dome targets, developed by Contact Gold
- The Company has an approved Plan of Operations to conduct drilling at Pony Creek on all the high priority targets developed since 2017, with the drill season at Pony Creek typically running from late May through December
- Contact Gold has completed cyanide solubility assays on all samples with Fire Assays returning greater than 0.1 g/t Au, providing an initial guide to potential recoverability
- The Company has also completed cyanide bottle roll tests on material from the Bowl and Appaloosa Zones, and confirmed the absence of significant amounts of organic carbon within the Pony Creek host rocks
- Future programs will focus on expanding the mineral resources at Pony Creek, through step out drilling at the existing deposits and drill testing the large-scale Mustang and Elliot Dome targets for the first time.
"The MRE at Pony Creek is a key development in the life of the project. With an exceptional success rate in drilling with over 90% of our drill holes intersecting significant intervals of gold, we were confident in the project's ability to deliver a significant and expanded near surface gold resource," said Matt Lennox-King, Contact Gold's President & CEO. "With a strategic address on the southern Carlin Trend, large scale untested exploration targets, and an initial resource estimate under it's belt, Pony Creek is strongly positioned to create significant value with clear resource growth opportunities at the project."
Contact Gold acquired Pony Creek in 2016 following the encouraging early exploration results of Gold Standard Ventures at the adjacent South Railroad property, the history of mining activities in the region by Newmont and the considerable historical exploration at the property by various operators dating back to the early 1980s. At the time of acquisition 263 drill holes had been drilled on the property. Since then, Contact Gold has drilled 118 holes totaling 25,874 metres on the property and discovered and defined 5 zones of gold mineralization at shallow depths. The Pony Creek Mineral Resource Estimate ("MRE") announced today pertains to the Bowl, Appaloosa, and Stallion zones, with the Bowl deposit containing approximately 79% of total inferred resources. The mineralization is principally hosted within altered and silicified calcareous clastic rocks of the Penn-Perm Moleen Formation and at the Bowl Zone within a Tertiary (or Jurassic) rhyolite.
About Contact Gold Corp.
Contact Gold is an exploration company focused on making district scale gold discoveries in Nevada. Contact Gold's extensive land holdings are on the prolific Carlin and Cortez gold trends which host numerous gold deposits and mines. Contact Gold's land position comprises approximately 140 km2 of target rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and resource definition stage.
Additional information about the Company is available at www.contactgold.com.
https://www.newsfilecorp.com/release/109646