Grade Expectations: Klondex and Probe Drill High-Grade Gold in Nevada and Ontario
June 18 saw bonanza-grade gold assays from Klondex Mines [T.KDX] in Nevada and, less spectacularly but with wider intervals, high grades from Probe Mines [V.PRB] in Ontario. Klondex found its results in underground infill drilling from a 1,113-metre decline at its Fire Creek flagship. Some highlights include:
- 767 grams per tonne gold over 0.58 metres
- 166.8 g/t over 1.65 metres
- 570.31 g/t over 0.4 metres
- 505 g/t over 0.43 metres
- 61.27 g/t over 1.89 metres
- (including 69.8 g/t over 0.43 metres)
- (including 144 g/t over 0.52 metres)
- 70.6 g/t over 1.52 metres.
No topcut was applied to grades. True widths were unavailable. The infill holes further demonstrate continuity of the Joyce and Vonnie veins, the company stated, also finding a new mineralized structure parallel to and west of Joyce. Both veins remain open along strike and at depth.
This year’s program has so far completed 27 underground holes for a total of 3,523 metres. To incorporate the new results, the company now plans to delay its resource update from June to July or later.
A May 2011 resource used a 4 g/t cutoff to show:
- an indicated category of 5.18 million tonnes averaging 9.9 g/t gold for 1.65 million gold ounces
- an inferred category of 1.73 million tonnes averaging 8.2 g/t for 458,084 ounces.
With metallurgical testing underway, underground infill drilling continues. The timeline includes a preliminary economic assessment in Q1 2014. Klondex has a toll milling agreement with Veris Gold [T.VG], operator of the Jerritt Canyon mine.
Klondex shares opened June 18 on their previous close of $1.24. They then touched $1.29 before wrapping up the day on $1.27. With a 52-week high and low of $1.72 and 91 cents, the company’s market cap came to $81.82 million.
Also on June 18, more high-grade gold results came from both step-out and infill drilling at Probe Mines’ Borden project about 200 kilometres southwest of Timmins, Ontario. Highlights from expansion drilling of the project’s high-grade zone include:
- 5 g/t gold over 39 metres, starting at 394 metres in downhole depth
- (including 11.2 g/t over 13 metres)
- (which includes 15.7 g/t over 6.9 metres)
- 6.4 g/t over 27.1 metres, starting at 396 metres
- (including 11.1 g/t over 9.2 metres)
- 4.7 g/t over 10.7 metres, starting at 378 metres
- 1.2 g/t over 24.2 metres, starting at 372 metres.
Intervals are approximate true widths. Vertical depths fell between 255 and 431 metres. The results expand the zone 200 metres to the southeast, the company stated. Infill drilling is planned to bring the new results into a resource update.
Infill drilling already completed on the high-grade zone shows highlights including:
- 8.5 g/t gold over 26.1 metres, starting at 307.1 metres in downhole depth
- (including 12 g/t over 17.7 metres)
- 4.2 g/t over 36.3 metres, starting at 312 metres
- (including 6.7 g/t over 20.4 metres)
- (which includes 17.5 g/t over 6.1 metres)
- 2.1 g/t over 24.9 metres, starting at 291 metres
- (including 3.5 g/t over 8.9 metres).
Intercepts are approximate true widths and were found between 252 and 343 metres in vertical depth. The results confirm the continuity of the high-grade zone, Probe stated.
Further infill drilling outside Borden’s high-grade zone found intercepts at shallow depth, including:
- 1.8 g/t gold over 49 metres, starting at 122 metres in downhole depth
- (including 2.6 g/t over 7.6 metres)
- (and including 5.3 g/t over 6.7 metres)
- 1.1 g/t over 39.7 metres, starting at 196 metres
- (including 2 g/t over 6.5 metres)
- 1.4 g/t over 17 metres, starting at 348 metres
- 1.1 g/t over 21.7 metres, starting at 371 metres
- (including 2.9 g/t over 4 metres).
Again, intervals approximated true widths, this time at vertical depths between 60 and 413 metres.
Announced in January, Borden’s pit-constrained resource estimate used a 0.5 g/t cutoff to show:
- an indicated category of 112.84 million tonnes averaging 1.02 g/t gold for 3.69 million gold ounces
- an inferred category of 18.31 million tonnes averaging 1.08 g/t for 625,000 ounces.
Probe now has four drills continuing this year’s 80,000-metre program. On May 28 the company announced a $15-million private placement had closed, followed by an $11.25-million investment that increased Agnico Eagle Mines’ [T.AEM] interest in Probe to about 9.94%.
Probe’s stock opened June 18 on its previous close of $1.74, reached $1.79, fell to $1.69 and closed on $1.71. The market cap stood at $128.99 million. The 52-week extremes were $2.30 and 90 cents.