RE:Three best drill holes in Valley Target megacopper wrote: SGD only have assays back for 7 holes so far with the drilling program on the Valley Discovery. Last year's discovery hole hit 168 meters of 1.25 g/t. And the first couple holes hit similar grades of just over 1 g/t with 100 meter intersections. And this years drilling so far has been spectacular with hole 7 being a monster with 282 meters of 2.30 g/t and the bottom 127 meters isn't even reported yet. Absolutely Incredible gold discovery.
This is actually considered high grade for these types of intrusion related gold deposits in the Yukon. Most average between 0.5 g/t and 1 g/t so Snowline's discovery is higher grade and the intersections so far are phenomenal so the tonnage will be huge. Dr. Quinton Hennigh is on record as saying the high grade core could contain as much as 12 million ounces and the outer lower grade halo could add more than 20 million ounces for a total resource of more than 30 million ounces just at the Valley target. At first I have to admit I thought he was out to lunch with his estimates but with the news of hole 7 being a monster I am beginning to think he is definitely in the ballpark with his estimates. See below for some of the drill holes reported so far.
Hole 1 hit 136 meters of 1.01 g/t
Hole 2 hit 108 meters of 1.27 g/t
Hole 3 hit 168 meters of 1.25 g/t
Hole 5 hit 331 meters of 1.03 g/t.
Hole 7 hit 282 meters of 2.30 g/t
I should have said 5 best drill holes. 5 of 7 holes have been exceptional. They are all world class drill intersections. I'm surprised the stock isn't doing even better. The high grade core or sweet spot is so impressive that to me SGD is a slam dunk investment at anything under $5 a share as we await more drill results. I've said all along that the Valley deposit will definitely prove up at least 10 million ounces of gold. I'm thinking the average grade of 10 to 15 million ounces will be around 1.5 g/t for the high grade core of the deposit.
The lower grade halo will also be huge with perhaps double the number of ounces of the higher grade section. I'm guessing the lower grade halo will be somewhere between 0.5 g/t and 0.8 g/t and when you compare this with Victoria Gold's Eagle discovery that averages 4 million ounces at 0.65 g/t than I think what Snowline has is very impressive both in terms of grade and tonnage which will equate to a whole lot of gold. This discovery by Snowline could be 5 to 8 times as large as Victoria Gold's discovery and the grade could be twice as good I honestly don't think the market yet recognizes just how good this discovery really is yet. All of my calculations and that of Quinton Hennigh only assume a depth of 500 meters. These deposits can easily go down to a 1000 meter depth so there could very well be an insane amount of gold just at the Valley discovery. And if they make a discovery at the Gracie target it will be absolutely mind blowing how much gold is on the Rogue property.
It seems so obvious to me that I'm surprised the market hasn't bid up the stock even higher. SGD will definitely be a takeover candidate in my opinion. And I believe the eventual price will be well north of $10 a share for SGD.