Gold Summary for March 8, 2021
2021-03-08 19:03 ET - Market Summary
by Stockwatch Business Reporter
The postman was busy over the weekend -- or maybe it is just the first day of the Prospectors and Developers Association of Canada dog and pony show. Either way, gold explorers were busy releasing new assays today. Unfortunately, not all the news was well accepted by investors. Mike England's Sky Gold Corp. (SKYG) slipped one cent earthward, closing at 11.5 cents on 816,000 shares on word that it has drilled a 0.5-metre interval averaging 7.77 grams of gold per tonne at its Mustang project in Newfoundland.
The hit is from a sample that was rushed to the lab based on a visual inspection of the core; results are still pending for samples immediately above the encouraging interval. As well, the one hole produced a wide zone of mineralization averaging 0.78 gram of gold per tonne over 32.85 metres, a hit that was augmented by a 1.5-metre interval averaging 3.8 grams per tonne. The hole is one of 20 completed in this first phase of drilling at Mustang, so there should be plenty of (more leisurely) assays to come.
Mr. England, president and chief executive officer, was "very pleased" with his maiden drill program at Mustang, adding that the width of the encountered mineralized zone is "significant and impressive at shallow depth." While his impression of significance was at odds with the market's view, Sky Gold is already planning a second phase of drilling at Mustang for early summer, work that will further investigate targets there, and elsewhere on the property, which is promotably adjacent to the Queensway project where New Found Gold Corp. (NFG: $4.05) has made a major high-grade discovery.