(Image via O2Gold Inc.)
One of the key benefits to the recent run up in gold prices as of late, is that even though production costs have continued to be stable, it is much easier for companies to find a grade that is high enough to justify developing their projects.
“High grades” is quickly becoming a less subjective term, especially when considering how important assay results can be to growing the life of a gold mine, especially in the eyes of investors.
One of the latest to give an operational update is Canadian junior mineral exploration Company
O2Gold Inc. (TSX-V: OTGO, Forum), who just released continued
positive results on exploration at its Botella and Aparecida brownfield projects. Let’s look a little deeper into this news ….
Botella:
(Project maps via O2Gold Inc. Click to enlarge.)
O2Gold reported vein samples from the Botella-Esmeralda brownfield returned gold results with a maximum value of 36.6 g/t; values ranged from 0.005 g/t to 36.6 g/t, with an average grade of 5.4 g/t.
Follow-up work is already underway (including mapping and defining the vein extension) and is scheduled to be followed by ground geophysics to assist in modeling and understanding the vein system.
Aparecida:
(Project maps via O2Gold Inc. Click to enlarge.)
Additional samples from the Aparecida brownfield showed Au values ranging from 0.005 g/t to 42.3 g/t, with an average grade of 2.05 g/t, with one vein returning a value of 42.3 g/t.
Recently, O2Gold secured permits for 2,000 metres of planned drilling at Aparecida. The drill targets and depths will be determined by using data from a ground geophysics campaign which was completed recently. The interpretation of this data is expected in the coming weeks.
The first 4,000 metres of the Company’s upcoming drill campaign is scheduled to begin in August 2021 and is expected to be completed later this year.
Looking ahead:
The Company has also begun drilling at mine targets located on its
Aurora property, the site of an expected 2,000 meters of drilling.
The ground geophysics survey allowed the interpretation of the Quintanillo mine’s vein structure of 1.2 km and indicated the possibility of two more associated orthogonal vein structures and two structures that could be extensions of the Aurora vein system. There is a projected vein system of almost 4 km in length along strike.
Occurrences beyond those known from the artisanal production works in the Quintanillo mine were identified through geological mapping and sampling on the Quintanillo target.
(Right: Spontaneous potential anomaly map and associated vein projections. Left: A map of gold results in veins collected during mapping and their possible projections. Project maps via O2Gold Inc. Click to enlarge.)
Why this news matters:
These results reinforce the mineralization and grade results obtained by the O2Gold team to-date and they indicate the potential for mineralized veins within the Fortaleza artisanal mine tunnel, where the exploration team sampled 1-metre-thick vein channels.
The Company stated that drill costs will be $84 (USD) per metre, with the drill company on board with accepting 30% payment in stock. This price is competitive compared to what companies operating in Canada must pay, where costs range closer to $180 (USD) per metre.
The team also noted that there are no known delays at the SGS lab in Medellin, Colombia, where samples are being analyzed. Lead times in Canada are upwards of 90 days for drill core assays, but in Colombia, it is only two weeks.
When looking for a gold play that boasts cost and operational advantages in emerging markets, the ongoing work by O2Gold in Colombia is a story that investors should pay closer attention to and deepen their due diligence into what this Company has to offer.
To find out more about the Company, visit their website at
otugold.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.