One drilling rig cutting gold is good, two is better, because this gold-seeking upstart continues to impress

Gold has seen a tremendous advance of late, dropping from a 52-week low at US $ 1,673 an ounce in March to over $ 1,900 this month. The 52-week low should be kept in context as it only came after gold hit an all-time high of $ 2,089 in August 2020. Part of the recent uptrend is due to the numbers the golden loop of the US labor market, including wage inflation which continues to rise, standing at + 0.5% in May after + 0.7% in April.

On this trajectory, gold could return to over $ 2,000 an ounce in a matter of months, or even weeks. Gold explorers took advantage of the favorable outlook. Graycliff Exploration Limited (CSE: GRAY) (OTCQB: GRYCF), a junior explorer making substantial progress on his Shakespeare gold project outside of Sudbury, Ont., Stood out, dropping from 51 cents on May 12 to 94 cents on May 19. The stock fell a bit but still holds most of the gains at 83 cents.

The catalysts are as fundamental as possible for an explorer: discovering gold and expanding the scale of the project. Investors respond to significant progress and a company reaching its milestones.

Graycliff’s Shakespeare Project is located in the prolific Canadian Shield, an area rich in gold and other metals considered a prime candidate to host Canada’s next gold mine. World-class mining camps like Timmins and Red Lake are housed in the Canadian Shield. Shakespeare has a history as an operating mine from 1903 to 1907, where arcane mining methods produced approximately 3,000 ounces of gold from six underground zones.

Results from a 1,500-meter Phase 1 drill program completed in late 2020 at Shakespeare have expanded gold zones and uncovered new zones of mineralization. The list of highlights from this drill included cuts of 8.59 grams per tonne (g / t) gold over 5.5 meters near surface, 5.51 g / t gold over 4.6 meters near surface and 5.37 g / t gold over 5.0 meters.

As a result of these results, Graycliff raised C $ 2.4 million in a private placement in April, enough cash to fund exploration at Shakespeare for the remainder of the year.

A 2,000 meter Phase 2 drilling was completed in April, focusing 14 diamond core holes on previously identified mineralization and the new mineralized zone identified during Phase 1 drilling near the Miller shaft of the Shakespeare mine and beyond. above gallery number 3. The test results are only just starting to come in and Graycliff has reason to be excited. The first results came from only part of a hole (called # 8) and included an intersection of 66.98 g / t gold over 3.0 meters, including cuts of 90.0 g / t d ‘gold over 0.7 meter and 137.0 g / t gold over 1.0 meter.

Additionally, after visiting the company’s main cabin in May, Graycliff CEO James Macintosh teased investors with another piece of information ahead of the next batch of analysis results. In a press release, the Graycliff senior executive said: “I have confirmed the presence of visible gold in three holes, in addition to hole 8. [T]he core shows great consistency from phase 1 to phase 2 “, he added.

While awaiting the full results, Graycliff seized the property near Shakespeare, giving it one of the largest sets of land in the region. The company acquired approximately 1,500 hectares known as the Baldwin Project and staked 13 additional claims covering 80 hectares abutting Shakespeare to bring its total of land to 2,525 hectares.

Speaking on the acquisition, Graycliff Technical Advisor and Qualified Person Bruce Durham said the team are “extremely encouraged by the very similar geological features that the Baldwin property has in common with Shakespeare.” Surface sampling, geophysical surveys and prospecting at the Baldwin project are in progress.

On June 3, a phase three drilling program was initiated to further define mineralization at Shakespeare. The company mobilized a second drilling rig to accelerate approximately 5,000 meters of core drilling. Approximately 34 drill holes will be completed at an average of approximately 150 meters each.

The program will focus on the vicinity of the Miller well, while remaining fluid to identify new targets from ongoing 3D modeling based on assay results from the first two drill programs, giving investors even more information to be expected in the second half of the year.

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