Finding an extension of the same rock unit that hosts gold in a nearby deposit is definitely worth follow-up, but it doesn’t necessarily mean that it contains economic quantities of gold.
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 8, 2014) – Carlin Gold Corporation (TSX VENTURE:CGD), (“Carlin” or the “Company”) is pleased to report the geological assessment of its limited core drilling program completed in fall 2013 on its Cortez Summit property (“Cortez Summit” or the “Property”), Eureka County, Nevada.
In September-October 2013 the Company re-entered vertical reverse circulation hole CS12-2 and deepened it by core drilling. Carlin geologists were encouraged that the core hole established the presence of favorable ‘Lower Plate’ rocks and retained the services of Dr. Harry Cook, President/CEO of Carbonate Geology LLC to review the core. Dr. Cook is a well known geologist specializing in carbonate stratigraphy in the major gold districts in Nevada and is very familiar with the Cortez area. He has been acknowledged for his role in developing an understanding of the gold-hosting Paleozoic stratigraphy, including the neighboring Goldrush discovery. Dr. Cook examined the lower 984.5 feet (300 m) of the core hole CS12-2C and interpreted the bottom 650 feet (198 m) of the hole to contain Devonian age strata.
Dr. Cook states that “Core CS12-2C strata are comprised of very favorable gold-host rocks within both the Wenban Formation and Horse Canyon Formation. These strata are coeval (of the same age) with the nearby Wenban Formation and Horse Canyon Formation carbonate gold-host strata that comprise the gold hosts in Barrick’s Goldrush Discovery.” Dr. Cook’s interpretations of the core are based on fossil and sedimentologic observations in context with his extensive field, pit and core experience at many locations and mine sites throughout Nevada. Additional drilling is recommended by Dr. Cook.
K. Wayne Livingstone, President/CEO of the Company, commented: “The information Dr. Cook has provided indicates that Carlin’s core hole intersected the stratigraphic section containing the main gold-bearing horizons as the neighboring Goldrush discovery. This is important as it clearly demonstrates the exploration potential of the project and helps to set the stage for additional drilling evaluation.”
Hole CS12-2C was deepened by core drilling from 1,760 ft. (537 m) to 4,032 ft. (1,229 m) and contains short intervals of anomalous gold values to 0.667 grams per tonne, along with longer intervals of anomalous arsenic values greater than 100 ppm in the Devonian Lower Plate section. These core also display Carlin-style alteration features such as decalcification, clay alteration, and calcite veining.
The 2012 reverse circulation drill program of seven vertical holes, totaling 11,720 feet (3,573 m.) ranging in depth between 1500 and 1800 feet (450 and 550 m.), encountered Paleozoic sedimentary rocks which are now considered to be structurally and stratigraphically above the calcareous Lower Plate units. Short intervals of anomalous gold up to 0.534 grams/tonne with Carlin-type pathfinder elements were present in six of the seven holes drilled. Two holes with the longest anomalous arsenic intervals were drilled 1,900 feet (580 m) apart, and are located in close proximity to the projected Fourmile structural zone, a north-northwest trending corridor which trends for 4,500 feet (1,370 m) along the west side of the Property. This structural corridor will be targeted in future drilling.
In addition to the recent geological studies, the Company has reviewed existing ground and airborne geophysical survey data in an effort to enhance future drill targeting. This information has been helpful in defining several structural zones of interest on the property, including the Fourmile structure.
Cortez Summit Property Setting on Cortez Trend
Cortez Summit is centrally located in Eureka County on the Cortez Trend, in the middle of what has become the most active gold exploration area in Nevada. The 100% owned Property consists of 142 unpatented claims located in the southern Cortez Mountains between the historic Buckhorn and Horse Canyon mines. The east edge of the Property lies 2/3 mile (1 km) west of the Buckhorn mine, and the west edge of the Property lies 1.5 miles (2.5 km) east of the Horse Canyon mine. Barrick’s Cortez Hills operation (11 million oz gold pre-production reserve/resource) lies 4 miles (6.4 km) west of the Property. The Goldrush discovery has grown rapidly since the initial announcement on September 7, 2011, and as of December 31, 2013, the estimated measured and indicated resources reported by Barrick stood at 10.0 million ounces, with a grade of 0.132 oz. per ton gold (4.5 grams/tonne) and the inferred resource was estimated to be 5.6 million ounces, with a grade of 0.141 oz. per ton gold (4.8 grams/tonne). The mineralization is open in several directions and the currently defined northern extent lies adjacent to the west side of Cortez Summit.
Barrick has announced they are advancing their Goldrush Project through the prefeasibility stage, scheduled for completion in mid-2015. Barrick has reported encountering deep mineralization along the northern extension of the Goldrush, including an intercept of 103 feet (29 m.) containing 0.725 oz. per ton gold (24.9 grams/tonne) and have applied for a permit to construct an exploration decline in order to better define the existing resource and to test for additional mineralization to the north (Barrick Q2 2014 Report). Surface infill drilling continues.
Barrick’s Gold Rush project is currently in the prefeasibility stage.
There hasn’t been much news from Carlin over the last year. The only other news they’ve published were their announcements regarding the drilling of this same hole. Like many junior miners, they appear to be in a holding pattern – conserving cash while they wait for the market to recover and investment capital to once again become available. Either that or they just really like talking about that hole. If so, maybe it’s time to move on.
The Carlin Gold Corporation is currently trading at $0.025, near it’s 52-week low of $0.015.
Carlin has three properties in northern Nevada including Cortez Summit, all of which represent Carlin-type gold targets. The 100% owned JDS property consists of 77 unpatented claims located in Eureka County, in the Cortez Trend approximately 13 miles southeast of Cortez Summit. The Willow property, 100% owned, consists of 89 unpatented claims located in northeast Nevada, northwest of the new 2.6 million ounce Long Canyon gold deposit in the Pequop Mountains, owned by Newmont Mining Corporation. Newmont has recently staked claims adjacent to the Willow property.
Carlin also owns approximately 65,000 hectares (250 square miles) distributed over 12 project areas in Yukon, in a 50/50 joint venture with Constantine Metal Resources Ltd. (TSX VENTURE:CEM). The properties are early stage, with the initial field evaluation program completed in 2011. Several significant gold anomalies have been identified to date.