Montréal, March 8, 2013 (Financial Press) – As part of its 3,500-metre drilling program on the Monster Lake Property, TomaGold [LOT.V] announced further confirmation of high gold grades over three drill sections. The goal of the program was to explore the 325 gold zone at depth, which was overlooked by the previous operators, and so far the work appears to be paying off.
The property, located 44 km southwest of Chigbougamau, Quebec had previously had over 35,000 metres of diamond drilling performed on it since 1984. But with this latest round of results, coupled with the results announced on February 20, 2013, the company appears to have cracked the code of the property and are proving the continuity and integrity of the project going at depth.
The results from this latest announcement came from holes M-13-96 to M-13-101, the best of which were:
• Hole M-13-98: 26.0 g/t Au over 5.7 m at a vertical depth of 280 m
• Hole M-13-99: 32.6 g/t Au over 6.0 m at a vertical depth of 170 m
• Hole M-13-101: 48.9 g/t au over 3.5 m at a vertical depth of 275 m
It’s worth noting that less than a month ago the company released results that came with a similar outcome, one which further proved their motives. From the February 20th announcement, the best results were:
• Hole M-13-93: 33.6 g/t Au over 5.85 m at a vertical depth of 217 m
• Hole M-13-94: 11.5 g/t Au over 5.30 m at a vertical depth of 187 m
• Hole M-13-95: 42.0 g/t Au over 7.20 m at a vertical depth of 278 m
Together these sets of results are building the Toma success story, now having confirmed the high-grade gold zone to be open along strike. These latest three drill sections, being only 50 metres apart, as well as at depth, are quite convincing. It’s also worth noting that the property’s most notable result to-date was the discovery of a major bonanza grade of 237.6 g/t Au over 5.7m.
Toma has stated that it will continue to test the zone along strike and at depth to look at the full potential of this new discovery. However, with this run it’s worth noting that through all of the work that was done on the property prior to this sequence of results, never was the project proven at depth as it is being now.
Despite the encouraging results, David Grondin, President and CEO of TomaGold doesn’t see a rest coming for his company’s aspirations.
“It is important to note that we are not constrained by weather conditions, and so will be able to drill on the 325 zone year-round,” says Grondin. “Furthermore, we have once again noted the presence of trace chalcopyrite and sphalerite and semi-massive pyrrhotite accompanied by intense black chlorite alteration, which suggests the proximity of a VMS-type environment, a potential indicator of gold-bearing massive sulphide deposits.”
The massive 5,807-hectare Monster Lake property is located in northwestern Quebec, 44 kilometres southwest of the town of Chibougamau. The flagship of TomaGold’s portfolio, Monster Lake sits along a 4.5km gold-bearing structure, and benefits from being inside the boundaries of the province of Quebec’s Plan Nord economic incentive program.
Neighbouring the property are the nearby gold camps of IamGold [IMG.TO], IAG.NYSE], Cartier Resources [ECR.V], Geomega [GMA.V],Northern Superior [SUP.V], Murgor [MGR.V] and Soquem.
A solid amount of infrastructure is within reach, with the property being accessible by road, and low-cost electric powerlines connectable to the property, thanks to Quebec Hydro.
TomaGold has pushed the property to over 35,000 metres of drilling up to this point, while reporting numerous high-grade zones in the process. The most notable result was a major bonanza grade of 237.6 g/t Au over 5.7m that came in early March of last year within the Annie discovery zone. This zone yielded ten drill intersections with grades ranging from 10.0 to 237.6 g/t Au.
Mineralization within the zone is associated with dark quartz-sulphide veins within a shear zone of 3-10 metres wide. The high-density nature of the zone allows for far more continued exploration.
All of the work done so far has shown Monster Lake to have very strong exploration potential going forward. With 12 other gold showings, the project has shown multiple openings for economic gold grades which to-date went underworked and left open in most cases.
Each time that the company has drilled a lower grade hole, they maintained the belief that the overall area is of a higher grade than what is showing. However, even the low-grade zones ranged from 1 to 5 g/t Au, making them higher in grade than many producing mines in other parts of Canada.
Adding JV partner Quinto has helped TomaGold to secured its financial standing, and the benefit has been directed towards the aggressive drilling program at hand.
As well, Monster Lake’s location within the Plan Nord vicinity further highlight Quebec’s favourable incentives towards mining that go beyond cheap power and speedy permitting. For every exploration dollar that is spent into the ground, $0.30 is given as a rebate. Toma and Quinto are essentially getting a 30% discount on ever metre they drill.
With this latest round of results, TomaGold has the right to be pleased with the drill program so far. Multiple returns of high-grades are further proving that this property has a lot of potential left in the tank.
by G. Joel Chury
Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the author’s only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.
Would you like to hire this writer for your own article?