Have a $9.00 target. GLTA
SNOWLINE GOLD CORP Strong Start To 2024 Exploration Program
Our Take: Positive
Snowline released the first set of drill results from its 2024 exploration
program. Results from the two infill holes completed at the Valley deposit of
its 100%-owned flagship Rogue project released today demonstrated support
for strength and consistency of high-grade, near-surface mineralization.
Overall, we view the assay results as a positive for the stock today, with both
holes reconciling well against the company’s current Indicated resource of 76
Mt at 1.66 g/t Au totaling 4.05 Moz, and Inferred resource of 81 Mt at 1.25 g/t
Au totaling 3.26 Moz. The company also indicated it encountered
mineralization including visible gold in large step-outs at the Jupiter target on
the Einarson project, and announced the completion of a three-hole 1,067m
Phase II drill program at the Cujo target at Rogue. Early results are positive
for the regional targets, which we believe are important as they demonstrate
the prospectivity for SGD’s land package. Assays are currently pending for
an additional 13,000m drilled, and a drill rig will perform Phase 1 drilling on
the Rogue project’s Aurelius target next. SGD currently trades at 0.6x
P/NAV, above peers at 0.5x at spot.
Valley Infill Drill Results: Both holes released today were drilled from
surface. Results included the following:
• Hole V-24-071 collared in the high-grade, near-surface section of the
Valley deposit returned 449.7m at 1.77 g/t Au including 169.2m at
2.89 g/t Au.
• Hole V-24-072 was collared in the Valley intrusion and began in
high-grade, near-surface mineralization and ended after exiting an
intrusion into surrounding hornfels. The hole returned 404.8m at 2.27
g/t Au including 100.8m at 4.67 g/t Au.
Other Exploration Highlights: SGD is also performing Phase II drilling at its
Jupiter target at the Einarson project. Four holes have been completed this
year, and assays are outstanding for ~1,500m. Visible gold was intersected
within large step-outs in the first holes of this year’s program. Additionally, a
three-hole 1,067m Phase II drill program has been completed at the Cujo
target at Rogue. In hole CU-24-003, a 50-cm dyke of fine-grained porphyritic
intrusive was observed. SGD believes the dyke could have been a factor for
the higher grades at Valley. Assays remain pending at Cujo. SGD also
completed a 72m outcrop surface channel sampling program at the Sydney
target on the Cynthia project, and identified one instance of visible gold.
Assays are also pending for this program.
Ongoing Communication With FNNND: SGD also indicated it has been in
ongoing communication with the First Nation of Na-Cho Nyk Dun (FNNND),
and has adjusted its planned drill program to account for concerns held by
the FNNND and is committed to responsible exploration. There are no plans
to shut down the drill program