Today,
BonTerra Resources Inc.announcedimpressive drill results at its Gladiator Gold Deposit in Québec. Hole BA-17-05 drilled through 5 distinct gold zones, including 2 newly discovered zones, and encountered multiple high-grade intersections in the "Rivage Gap", demonstrating continuity of the Gladiator Deposit to the west.
2 new gold zones were outlined 20-50 m below surface (5 m @ 23.6 g/t gold with visible gold and 12 m @ 1.1 g/t gold). The Footwall (FW) zone showed "a very high grade intersection" (6 m @ 41 g/t gold incl. 1.6 m @ 147.9 g/t gold). Assays from the final 3 holes of the 2016 drill campaign have also been received and are included in below table.
Stated lengths are core width as drilled, true widths have not yet been determined. Core axis angles of the intersection contacts and surrounding rock units average 55 degrees.
Long Section Footwall:
Cross Section of Drill Hole BA-17-05 (Looking Southwest):
Currently, 3 drill rigs are in action at Gladiator with a 4th rig being considered for the on-trend Coliseum Gold Property. Drilling is currently focused on the Deep East Zone, the Rivage Gap western side, Rivage Gap infill and a potential Coliseum exploration.
Recent ground geophysical and geochemical till sampling programs identified anomalies to be tested with follow-up drilling.
Assays from holes BA-17-02, BA-17-03 and BA-17-04 are expected shortly, whereas BA-17-03 will be deepened further as it ended in mineralization.
The drilled dimensions of the Gladiator Deposit are outlined to a depth of 800 m below surface and a strike length of 1,200 m (still open in all directions; at least 5 distinct subparallel zones, or mineralized horizons, have been identified to date).
With all the drilling completed since the maiden NI43-101 resource estimate (273,000 ounces of gold averaging 9.4 g/t gold was derived in 2012 with 15,642 m of drilling, or only 49 holes over 2 years), it will be interesting to see the updated resource estimate within a conceptual pit or by applying economic extraction parameters in estimating total gold ounces within an underground stope. At that time (2012), Osisko´s near-by Windfall Lake Gold Deposit stood at 699,000 ounces of gold (measured, indicated + inferred) averaging 7.9 g/t gold with 358 holes drilled over 7 years. Windfall Lake has been now defined to 1.6 million ounces of gold averaging 8.2 g/t and is turning out to be a world-class gold deposit with substantial resource upside potential. It is expected that Osisko will continue to focus on Windfall Lake and as such infrastructure will now be developed within 8 km of Gladiator.
Most recently in early March, BonTerra closed a $14 million CAD bought-deal financing with Sprott Capital Partners. Eric Sprott himself acquired 13.9 million shares (approximately 10% of the issued and outstanding shares) and now holds a total of 14.2 million shares. In mid-March, BonTerrra also closed a $1 million CAD non-brokered private placement. With close to $15 million CAD in its treasury and no debt, BonTerra is now fully funded for a new drilling program (40,000 m are planned with a minimum of 4 rigs). The upcoming drilling will focus not only on infill drilling to be able to delineate a resource estimate (the spacing so far was too wide to define a resource). On top of that, extensive blue-sky upside potential is provided with the upcoming along-strike drilling of newly identified till targets on the Coliseum Property.
It is also expected that some of the available funds will be invested in starting to drill out BonTerra´s second gold project, the Larder Lake Gold Deposit in Ontario (2011 historic estimate at a 2.5 g/t cut-off: inferred 917,000 ounces of gold averaging 5.55 g/t). Once drilling starts here, the market may start appreciating this high-potential asset as well.
Nav Dhaliwal (CEO & President) commented today:
"Our technical team continues to intersect significant drill results and in addition has uncovered new zones in and around the Gladiator Gold Deposit. We are focused on completing our resource development program in 2017, and delivering an updated geological model that will substantially increase the contained ounces at the Gladiator Gold Deposit."
Dale Ginn (VP of Exploration) added:
"The Rivage Gap is not only adding strike length to our known zones, but it is also yielding new gold horizons close to surface. The presence of multiple continuous (especially) high grade zones is significant and a potential positive contributor to delivering a better than average gold ounces per vertical meter number that mine developers and producers are wanting to see."
Technical Perspective
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Company Details
BonTerra Resources Inc.
#510 – 744 West Hastings Street
Vancouver, B.C. V6C 1A1 Canada
Phone: +1 855 678 5308
Email: todd@bonterraresources.com
www.bonterraresources.com
Shares Issued & Outstanding: approximately 142 million (post Q1-2017 financings)
Canadian Symbol (TSX.V): BTR
Current Price: $0.355 CAD (03/20/2017)
Market Capitalization: $50 million CAD
German Symbol / WKN (Tradgegate): 9BR1 / A12AZ5
Current Price: €0.244 EUR (03/21/2017)
Market Capitalization: €35 million EUR
Previous Coverage
Report #2: "BonTerra Strikes Big: With latest hole 64 g/t gold over 2 m extending the Gladiator Deposit by over 70% to 1200 m of strike length" (December 8, 2016)
Report #1: "Gladiator Deposit Now 700 m Long and 650 m Deep and Getting Bigger: Latest Hole 70 g/t Gold over 5.5 m" (November 16, 2016)
Disclaimer: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist.