Comstock Metals Ltd. is pleased to provide an update on 2017 exploration plans for its +16,000 hectare wholly-owned QV gold project located in the heart of the prolific White Gold district of the Yukon Territory.
The Company is finalizing plans to carry out a multi-pronged exploration program that will include detailed soil grids, geological mapping and sampling on a number of high-potential targets, follow-up on reconnaissance gold anomalies, and up to 2,000 m of diamond drilling focussed on testing the along-strike potential to the west and east of the VG deposit following up on positive results from the 2016 Rotary Air Blast (RAB) drilling program.
Activity in the White Gold district is heating up with the recent acquisition by White Gold Corp. of Kinross Gold Corporation’s holdings in the area, which totaled approximately 86,000 ha and includes the Golden Saddle gold deposit, located 11 km south of the Company’s VG deposit on its QV property. Both Kinross and Agnico Eagle Mines Limited hold approximately 19.9% interests in White Gold Corp. This follows last years $CDN 520 million acquisition by Goldcorp Inc. of Kaminak Gold Corporation and its Coffee gold project, located 44 km south of the QV project.
Elsewhere in Yukon, Barrick Gold Corporation invested $8.3 million into ATAC Resources Ltd. and entered into a two-staged $55 million exploration earn-in agreement to acquire up to a 70% interest in ATAC’s Orion gold project. Newmont Mining Corporation has also recently entered the Yukon through a deal with Goldstrike Resources Ltd. involving up to $53 million of equity investment, option payments and expenditures to earn up to a 75% interest in the Plateau gold project.
At the VG deposit, located on the southern part of the QV project, gold mineralization is hosted within units of massive silicified gneiss cut by swarms of 30° north-dipping quartz vein stockwork and breccia with disseminated and vein controlled pyrite, and more rarely visible gold. The VG zone has similar geology and style of mineralization to Kinross’s Golden Saddle deposit, located 11 kilometres to the south. The Company’s 2016 RAB drilling program focussed on identifying along strike extensions to the VG deposit. RAB hole 16QVRAB017 demonstrated the deposit is open to the west with high-grades; it intersected 12.19 m averaging 5.53 g/t gold starting at 83.82 m below surface, within a wider interval of 57.91 m averaging 1.89 g/t gold, a 45 m west and 100 m down-dip step-out (November 8, 2016 news release).
David A. Terry, Ph.D., P.Geo., a Qualified Person as defined by National Instrument 43-101, and an Officer and Director of Comstock, has reviewed and approved the scientific and technical disclosure in this news release.