Canada Strategic Metals Inc. (
TSX: V.CJC,
Stock Forum) and
Matamec Explorations Inc. (
TSX: V.MAT,
Stock Forum) have reported results from March drilling on the Sakami Property in the James Bay region of northern Quebec.
Canada Strategic is exploring the Sakami property under an agreement with Matamec that gave the former company the right to earn a 70% interest in the property by issuing one million shares and completing a bankable feasibility study.
Back on April 20, 2015, the companies reported the discovery of a high grade gold zone, a development that confirms the potential for the discovery of enrichment zones within the wide, gold-bearing Zone 25, Canada Strategic said.
Zone 25 is the main gold zone in the La Pointe sector of the Sakami property and has been tested over a strike length of more than 250 metres and to a depth of 500 metres along its plunge.
On Tuesday,
Canada Strategic said in a press release the latest results from March drilling continue to confirm the west-northwest extension of the “25” Zone envelope of gold mineralization.
The program consisted of seven holes, for a total of 2,049 metres of drilling. To date the company has received assays for two holes (PT-15-88 to PT-15-90) from the March program.
These holes were planned to test the extension of the mineralized zone to the west and northwest as well as down dip. All holes returned wide gold-bearing intersections, including 0.96 grams per ton gold over 24 metres, including 10.65 grams over 0.85 metres.
Canada Strategic said Sakami has a number of similarities to
Goldcorp Inc. (
TSX: T.G,
Stock Forum) producing Eleonore deposit, which hosts 4 million ounces of gold and is also located in the James Bay region. The similarities are as follows:
- It is located at the boundary between the La Grande and Opinaca subprovinces.
- It is hosted by metamorphosed sedimentary units.
- It has multiple lenses.
- It contains arsenopyrite
- It has an abundance of a wide alteration corridor with quartz-K feldspar
- Its higher gold grades are accompanied by wider and lower gold grades.
The company said the focus at Sakami will be to delineate the size potential of the “25” Zone mineralization in order to produce a geological-resource model in the near term.
The next drilling program, planned for the winter of 2016 near the shores of Sakami Lake, will test the west-northwest extension of the “25” Zone.
Canada Strategic Metals rose 10% to 5.5 cents Tuesday, leaving a market cap of $3.9 million, based on 70.4 million shares outstanding. The 52-week range is 10.5 cents and 4.5 cents.
Matamec was unchanged at 4 cents, leaving a market cap of $5.5 million, based on 137 million shares outstanding. The 52-week range is 8.5 cents and 2 cents.
FULL DISCLOSURE: Canada Strategic Metals is a client of Stockhouse Publishing.