TomaGold Corp. (
TSX: V.LOT,
Stock Forum) said
Iamgold Corp. (
TSX: T.IMG,
Stock Forum) is preparing to recommence drilling on the Monster Lake property southwest of Chibougamau, Que. Iamgold has the option to earn a 50% interest in the project.
TomaGold shares reacted to the news by rising 6.5% to 8.5 cents Wednesday, leaving a market cap of $6.4 million, based on 75.6 million shares outstanding. The 52-week range is 22 cents and 5 cents.
The company said an initial 5,000-metre drilling program is aimed at establishing the lateral and vertical continuity of the main shear structure hosting the 325-Megane Zone along the southeast flank of a known major fold in the area.
Holes postponed in the fall of 2014 due to unfavourable ground conditions on the northwestern flank of the fold will also be drilled during the program,
the company said in a press release.
Earlier this month, TomaGold said assay results from a batch of 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. It said exploration in 2014 extended the high grade 325-Megane zone at depth below previous drilling where it remains open.
In addition, the company said exploration 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).
“After the positive results obtained last fall, we are very pleased to see that Iamgold is resuming work, particularly as this program will also cover priority zones that were difficult to access in the fall,’’ said TomaGold President and CEO David Grondin.
The program will be carried out using two diamond drill rigs and is expected to be completed by mid-April.
FULL DISCLOSURE: TomaGold is a client of Stockhouse Publishing.