November 15, 2022: Snowline Gold (SNWGF; C.SGD) reported more big drill hits, these from their Rogue project in the Yukon.
The headline hole hit 1.45 g/t gold over 285.2 meters, including 2.48 g/t over 128.2 meters. These are 413.5 and 317.9 gram-meters, respectively (multiply grams by meters). You’ll recall I’ve said anything above 100 is a great hit, so these are clearly very strong intercepts.
Even better, these are step-out holes, meaning outside the area they’ve drilled before and found mineralization. They’re 160 meters away, about 175 yards. It means Rogue continues to show not just strong mineralization but continuity. And that’s what can make a mine.
Management also reported the final portion of a previously reported hole, and it returned 1.89 g/t gold over 410.0 meters. This is 774.9 gram-meters, an incredible hit and one you won’t see often. What’s noteworthy is that the entire length contained mineralization, and the gold grade was consistent throughout. As the press release points out, “59 of 103 samples assayed higher than 2.0 g/t Au…”
Not all intercepts were this strong of course, but the consistency here will start to add up. In fact, you’ll see management says that the “geological setting and style of mineralization at Rogue’s Valley Zone indicate the presence of a bulk tonnage gold target, with similarities to Kinross’s Fort Knox Mine in Alaska and Victoria Gold’s Eagle Mine in the Yukon.” This is a significant statement, and if it proves accurate, Rogue would someday be a mine.
It's still early here, but…
These are the beginning showings of what can make a mine.
And don’t forget that Snowline has a total of 17 projects covering over a quarter billion hectares!
Meanwhile, assays are still pending for 24 of 32 holes (10,530 of 13,320 meters) at Valley and Gracie, so more drill results are ahead.
Ignore the stock action today. The market has seen results like these before so now only gets excited by bigger numbers. But overlook their short-sightedness: these kinds of results show greater and greater likelihood that Snowline is in the midst of establishing a new gold district. And that doesn’t come along very often. Which is why I plan to hold the stock, one I remain overweight.
By the way, we only got to fly over the Rogue project, but you can see pictures from my site visit here.