TomaGold Corp. (
TSX: V.LOT,
Stock Forum) shares took a big leap Thursday, after the junior tabled drill results from its Monster Lake project southwest of Chibougamau, Que., where
Iamgold Corp. (
TSX: T.IMG,
Stock Forum) has the option to earn a 50% interest.
Assay results from a further 17 diamond drill holes completed at the end of 2014 returned 46.33 grams per tonne gold over 9.18 metres at a vertical depth of 340 metres,
the company said in a press release.
Investor reaction sent the stock up 29.4% to 11 cents in morning trading Thursday, leaving TomaGold with a market cap of $8.3 million, based on 75.6 million shares outstanding. The 52-week range is 22 cents and 5 cents.
“Our first exploration program completed in 2014 on this project has delivered encouraging results by successfully extending the high grade 325 – Megane zone at depth below previous drilling where it remains open,’’ said IamGold Senior Vice-President Craig MacDonald.
“In addition, our exploration program has identified several new gold-bearing structures and a number of target areas for further exploration.’’
Iamgold can earn a 50% interest in each of the Monster Lake, Winchester, and Lac a L’Eau Jaune properties, collectively referred to as the Monster Lake Project, by completing scheduled cash payments and exploration expenditures totalling US$17.6 million over five and a half years.
Iamgold will act as the project operator with the support of TomaGold personnel during the earn-in period.
The 2014 drill program was designed to test the direct down-dip and lateral extensions of the 325-Megane mineralized zone, as well as areas along strike within the interpreted structural corridor referred to as the Monster Lake Shear Zone (MLSZ).
Further drilling is planned for 2015, including a 5,000-metre program to test selected targets along the MLSZ and also the 325-Megane zone.
FULL DISCLOSURE: TomaGold (V.LOT) is a client of Stockhouse Publishing.