Snowline Gold Corp. (CSE:SGD) has told investors it is "very encouraged" by the scale of the system at its Rogue project in the Yukon, where the company said it has found gold-bearing quartz vein mineralization.
Sheeted vein mineralization has been observed across a 700-metre (m) by 800m area at the Valley zone at the property, with mineralization open in all directions with wider step-out holes planned.
"We are very encouraged by the scale of the mineralized system we are seeing at Valley," Snowline CEO Scott Berdahl said in a statement.
"Each successful step-out across hundreds of metres adds significantly to the bulk-tonnage potential of the target, and mineralization is present from surface to the bottoms of the deepest holes we've drilled to date to 554m downhole corresponding to 430m below surface.
"Of course, we won't know the true significance of the discovery until we have drill core assays back. Lab estimates now point to mid-August for return of our first holes of the 2022 exploration season," he added.
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At the Central zone, the company said that there was a corridor of high vein density up to 300m wide, 600m long and remains open and 430m deep also open, which was encountered in six holes.
One hole also tested the eastern boundary of the corridor, with 120 instances of trace, sub-millimeter scale visible gold observed along the length of the 404m hole during logging and after-cutting, the company said.
Assays for all holes drilled to date in 2022 are pending and drilling of additional holes at Valley is ongoing, said Snowline, which also cautioned that the "significance of the observations" reported will not be known until the assays are received and reviewed.
The Valley zone is an early-stage exploration project without a resource estimate, it added. Here, a third helicopter-portable drill has been mobilized.
One drill is due to move to the Gracie Zone, some 4 km east of Valley, where aerial magnetic work and mapping have identified multiple structural corridors, the company added. This phase I program will be the first-ever drill testing of the Gracie zone.
Snowline Gold is a Yukon Territory-focused gold exploration explorer with a seven-project portfolio covering over 127,000 hectares (ha). The company's flagship 85,000 ha Einarson and Rogue gold projects sit in the highly prospective yet underexplored Selwyn basin.
Contact the author at giles@proactiveinvestors.com