The Cypress Development Corp. (TSX: V.CYP, Stock Forum) Bullboard was buzzing Tuesday evening and Wednesday, as the company and Skyharbour Resources (TSX: V.SYH, Stock Forum) provided an update on their ongoing drill program at the Broulan Reef gold project in the Red Lake gold camp in Ontario.
Cypress reported that minor gold values were encountered in the mother hole BR08-02 “associated with narrow quartz veins developed in Balmer assemblage rocks below the thrust plane.” The company notes that anomalous gold values were encountered in BR08-02 “in more strongly silicified portions of the broad alteration system encountered on trend with the Finn deposit.”
“Efforts to date by Cypress/Skyharbour indicate that the system may be significantly larger than previously known. Results from drilling to date have confirmed prospective alteration continues on to the Broulan Reef property and that the target warrants further testing. A first daughter drill hole is currently in progress from hole BR08-02 to further define the orientation of and variations within this highly prospective alteration system,” says the company.
The Broulan Reef property includes 10 mineral leases covering 120 hectares, covering the Bruce Channel of Red Lake and located immediately south on strike of the Gold Eagle Mines property, acquired by Goldcorp in September.
“The acquisition of the Gold Eagle property and continued exploration by Goldcorp indicates a significant new gold bearing system is being defined in the Red Lake camp. Production from the Bruce Channel system will undoubtedly contribute a significant proportion of mill feed to the Red Lake complex of Goldcorp over the coming years,” says the company.
Shares of Cypress Development Corp. were down 26% to 27 cents Wednesday, while Skyharbour Resources fell 24% to 9.5 cents.
On the Cypress Bullboard, apprentice74 commented on the news, saying:
After reading thru the release a few times, I actually don't think there is anything that is extremely negetive or reflects any type of failure.
unless of course you were hoping that they would have struck the motherlode first crack and G or somebody was ready to throw down $8.00 a share immidiatly.... i sure as hell wished it true...
what i get from this news release is exactly what we should be expecting to hear without reading too far into things.. in other words they are right on track.... the geography is the same, and to belive that the trend stops exactly at our border is sort of like thinking the world still is actually flat... if they thought this was gonna be THE hole to drill why would they already have other ones planned according to results from this hole? They are educating themselfs with this hole to move closer to where the goods are.
i think patience is neccessary here... I am only splurting this out because i am sensing that people are over reacting... i think the good news releases are actually on their way with the results of the duaghter holes, and maybe some other people willing to invest to help speed up the drilling...
sampsoner29 also noted:
Obviously, this drop is purely a major overreaction to the mother hole lacking evidence of substantive amounts of gold. I think people need to temper their expectations. The purpose of the mother hole was to understand the structure of the rock(which it did as the finn zone extension was confirmed) and facilitate daughter holes which should have a better chance at finding gold. I would expect this kind of retraction if a few daughter holes failed to hit. At the end of the day Goldcorp is probably going to buy cyp based on its location and its just a question of how much and when. I think this press release served no purpose so I’m not sure why it was released as it contains nothing material-[sic]
Kozseluham replied: “I would not say they was no need for this release - company did say that results for mother hole would be released when available and they were - there just weren't specific assays released as the values were too low[sic]