Going for Gold and Getting it in the Right Place

Stockhouse investors, especially those in the metals & mining space, are acutely aware of the significant upturn in the gold market over the past 12 months – an almost USD$500/oz surge over that period. But they also know it takes a special kind of exploration company to find the precious metal in mining-friendly jurisdictions with high-grades and high potential.

Getchell Gold Corp. (GTCH) (CSE: GTCH, OTCQB: GGLDF, Forum) looks to be one such company. GTCH is a junior resource exploration company committed to responsible identification, acquisition, and exploration of gold and copper. The company's primary focus is on its Fondaway Canyon and Star Point projects in Nevada – one of the top five mining jurisdictions in the world. In fact, according to the US Geological Survey, if Nevada were its own country, it would rate among the world’s top four gold producers. Today, the Nevada Bureau of Mines and Geology calculates gold reserves at around 70 million ounces, enough to support robust gold production at or near current levels for at least 15 years.


Company Snapshot

At present, Getchell Gold is principally directing its efforts on its most advanced stage asset – Fondaway Canyon – a historic gold producer with a significant in-the-ground historic resource estimate. Fondaway comprises 171 unpatented lode claims totalling 1,186 hectares (2,932 acres) in Churchill County, Nevada. Complementing the Company’s asset portfolio is Dixie Comstock – a past gold producer with a historic resource and two earlier stage exploration projects – Star and Hot Springs Peak. Getchell has the option to acquire 100% of the Fondaway Canyon and Dixie Comstock properties. In fact, On December 11, 2020, Getchell announced that they had approved an early option payment on the Fondaway Gold project, as they await results from the recently completed drilling program.




(Figure 1: Fondaway Canyon - Central Target Area showing historical workings. Click image to enlarge)

In a recent Stockhouse article, we introduced our audience to the Company and its discovery of a “significant mineralizing system” at its Star Project. The property includes a near-surface, high-grade copper oxide (tenorite) mining operation worked from the late 1940s through the mid-1950s.

Recently completed ahead of schedule, an Induced Polarization (IP) survey was conducted over two high-grade occurrences, at Star Point and at the copper-gold-silver Star South artisanal mining site, for the purpose of refining previously identified geophysical anomalies for drill targeting.


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The Fondaway Focus

“Gold Mineralization at Surface: Significant Gold Mineralizing System with Huge Potential”

First discovered in 1956 as a tungsten mining project, gold was later identified up the canyon. Easily accessible – just a two-hour drive from Reno – the advanced-stage Fondaway Canyon Gold Project has experienced multiple exploration, drilling, and underground development from multiple operators over the course of 40-plus years. To date, over $25 million in exploration and development has been spent by those various companies, along with a voluminous set of mining operational data.

Fast forward to today. As reported on November 13th, Getchell Gold has completed their maiden drill program at Fondaway with 6 holes drilled for a total 1,996 metres (6,550 feet).

Five of the six drill holes were collared within the Central Target Area, a 1,000 x 700 metre highly mineralized NE-SW extensional zone within the central portion of the 3.5 km long E-W trending Fondaway Canyon gold mineralized corridor. The Central Target Area is a nexus for the gold mineralizing system observed at the Project with the five drill holes focusing on two of the NE-SW (the Half Moon – South Pit and the Colorado – Pack Rat) mineralized zones.

The drill program in the Central Target Area was designed to address two primary objectives:

1. Extend the known mineralization; and
2. Characterize the known mineralization to assist with geological and resource modelling.

As planned, one hole was collared to test the Pediment Target Area, the westernmost extent of known gold mineralization along the 3.5 km long E-W trending Fondaway Canyon gold mineralized corridor where two vertical drill holes completed in 2002 intersected broad intervals of gold mineralization (refer to Company news release dated May 21, 2020 for further details).

The majority of the drill core was sampled in its entirety and all the drill core has been delivered to the analytical lab for cutting and assaying. The Company anticipates receiving results in early January.

A Red Cloud Securities research report analyzed the project and the property this way:

“Given the historical resource base at Fondaway Canyon in the tier-one jurisdiction of Nevada, we believe the market has not fully valued Getchell Gold at $19/oz of Au resource – a 60% discount to Nevada exploration peers. Despite 700-plus historical drill holes, the deposit remains largely open along strike, between and down-dip from the identified gold zones, thereby offering resource growth potential.”

The report went on to conclude that with Getchell being nicely cashed up and Phase 1 drilling underway, “We believe the company would elect to conduct an expanded drill program should Phase 1 drilling be successful.”


Fondaway Canyon Gold Project Key Highlights:

• Underground workings developed to test the Half Moon shear vein 75 m below surface report substantial widths of high-grade gold
• Composite channel sample grades 12.4 g/t Au across full 4.3 m width of UG drift at the most eastern drift face (1125E)
• 19.4 g/t Au over 3.1 m, including 24.1 g/t Au over 1.8 m, composite channel sample reported at the development drift face 1040E
• 12.0 g/t Au over 3.2 m, including 21.8 g/t Au over 1.5 m, composite channel sample reported at the development drift face 1031E
• Including drill results, gold mineralization in the Half Moon area has been traced for a 375 m vertical extent and remains open to depth
• The characteristics of the gold mineralization at Fondaway support the Company assessing the Project's potential for both bulk tonnage and underground mining

Getchell Gold’s President and Director Mike Sieb, Director commented on the drill results:

“The underground development along the Half Moon shear vein reveals a significant high-grade gold mineralizing system at Fondaway Canyon with remarkable vertical extent. The Half Moon high grade, in conjunction with the extensive gold mineralization found at or near surface supports the Company assessing the Project's potential for both bulk tonnage and underground mining.”


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From the CEO

Stockhouse Editorial recently reached out to Company President and Director Mike Sieb – a veteran with over 33 years of technical expertise as an underground and open pit geologist along with extensive management experience – to discuss a variety of topics, not the least of which is why investors can find real value and opportunity in Getchell Gold:

“As a Company, we are in a great place. Our valuation has been propelled by the activity and quality of our projects in combination with a strong gold market. By the end of the year we will have accomplished all of our 2020 exploration objectives, have a healthy treasury remaining going into 2021 and look forward to taking our projects to the next stage.”

SH: Mike, as we mentioned above, the Fondaway Canyon Project has taken centre stage with the Company. What can you tell investors that makes this property so intriguing?

MS: “Simply put, it is the evident potential of the project. Having a sizable historic resource with the gold mineralization exposed at surface in one of the best mining jurisdictions in the world is a pretty healthy start. However, combined with the understanding that the gold mineralization exhibits strong indications of extending beyond the previously defined extents, definitely heightens one’s expectations.”

SH: Can you walk us through your other current projects to date and what are some things we should be looking out for?

MS: “The Star project to the north of Fondaway Canyon is a nicely developing story. The high grade copper, gold and silver mineralization exposed at surface provides a clue for the presence of a significant buried mineralizing system and the geophysics returned to date has vectored into some attractive targets. I look forward to a drill program in the first half of next year to test some of the priority targets identified at Star. This early stage opportunity highly complements the more advanced approach that will be undertaken at Fondaway Canyon.”

SH: And finally, with gold hovering in and around the $2000 p/oz US price, can you discuss the long-term strategy for the gold mining sector in Nevada moving into 2021 and beyond, and what investors should be watching?

MS: “Even with the overhanging impact of COVID-19, 2020 witnessed a major resurgence in gold exploration activity in Nevada in lock step with the strengthening gold price. I don’t see the momentum slowing down in 2021 and anticipate that the capital markets will recognize the companies that are most aligned to benefit. Getchell Gold Corp. has worked to establish itself as a bona fide contender in the Nevada gold scene and is now well positioned for the potential growth and value realization to come.”


About the Team


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The Bottom Line

It’s no secret there are a lot of junior mining companies vying for both retail and institutional investment dollars – especially in a red hot gold market. Fundamentally sound mining exploration doesn’t happen overnight and doesn’t come cheap, and investors know only a small fraction of early-stage developments have ‘the right stuff’ for long-term success. But a long, hard look at Getchell Gold Corp’s rock-solid business model provides, along with its glowing analyst’s report from Red Cloud Securities, several clues as to why their projects are primed for success. The Company is well-funded, well-managed, and boasts a superior land package in one of the world’s premier mining jurisdictions while boasting better-than-promising early drill and assay results.

Getchell Gold checks all of the boxes any savvy investor is looking for in a junior resource exploration company.


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For more information, visit getchellgold.com.


FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.