Chase Mining Corporation Ltd (ASX:CML) has surged 50% on news of intersecting visible gold during diamond drilling at the Lorraine Mine Gold Project in Quebec, Canada.
Fine-grained visible gold has been recorded at 462 metres in an intense silica-carbonate alteration zone in hole CM-20-02.
This hole was deepened from its planned depth of 400 metres and was terminated at 513 metres due to intermittent zones of alteration and silicification in the footwall rocks.
Shares trade higher
Shares increased to 3.4 cents on strong volume of more than 30 million in the first hour as investors welcomed the gold news.
The discovery of this footwall alteration zone has opened up additional potential for gold mineralisation to be hosted at Lorraine, which is completely separate to the original contact target zone.
Chase’s diamond drilling program is targeting gold (plus copper and silver) mineralisation reported in historic sampling and limited drilling associated with the 6-Level development of the Lorraine Nickel Mine.
Beyond target zone
Based on hole CM-20-01 the original target zone is at approximately 380-390 metres downhole with the visible gold detected beyond this.
The decision to deepen hole two was to further evaluate footwall basalts following the intersection of an 8-metre breccia zone logged from about 360 metres downhole to end of hole in CM-20-01 and test for additional potential mineralisation in the mine footwall.
Due to intermittent zones of alteration and silicification in the footwall rocks, including the zone intense alteration at around 462 metres containing the visible gold, the hole was extended to a final depth of 513 metres.
The visible gold is reported from the quartz-chlorite vein in the centre of the middle stick of core.
Correlation with historic intersection
The presence of fine-grained visible gold in a zone of silica-carbonate altered footwall rocks with only minor sulphide content allows for the visual correlation with the description of a high-grade intercept, namely 1-metre at 53.47 g/t gold and 12 g/t silver from underground hole U-6-76 drilled in circa 1967.
Hole CM-20-02 was only detail logged and photographed to 358 metres last night and once the rest is complete, the core will be cut, photographed and sampled for assay.
Further comments on the target zone and the new alteration zone will be made once the detail logs and core photographs are received.
Drilling continues
Chase’s drilling contractor has started hole CM-20-03 and once it has been completed, the drill rig will continue with planned hole CM-20-04.
Given the alteration and silicification encountered at depth in hole two, holes three and four will be deepened from their original planned depths pending hole two’s detail logs and sampling.
Similarly, if warranted hole CM-20-01 will be deepened to a corresponding depth after completion of hole four.
