In a Feb. 11 research note, Red Cloud Securities analyst Taylor Combaluzier discussed Getchell Gold Corp.'s (GTCH:CSE; GGLDF:OTCQB) news that it drilled a new gold zone at its Fondaway Canyon project in Nevada.
The Canadian company discovered this North Fork zone in hole FCG20-04, one of the final three holes of its six-hole, phase 1, 2020 diamond drill program at its flagship asset. "In our view, the results are excellent given the high-grade intercepts over wide widths at favourable depths and the discovery of a new Au zone," he wrote.
The purpose of hole FCG20-04, drilled from Half Moon toward the South Pit, was to test the Half Moon shear vein and potential for extension of known mineralization downdip to the southwest, the analyst indicated. Getchell placed the stepout hole 200 meters (200m) from historical hole FC17-04.
Both areas returned mineralization. In the main Half Moon shear vein, about 54 meters from surface, FCG20-04 hit 8.6 grams per ton gold (8.6 g/t Au) over 9.8m. In what may be splays of the main vein, the hole intercepted 2.7 g/t Au over 20.5m and 6.3 g/t Au over 3.3m. Further downdip, FCG20-04 encountered 2.5 g/t Au over 58m in a 144 meter wide intercept and 2.8 g/t Au over 13.4m.
Combaluzier noted that, according to Getchell, the new North Fork is 100 meters thick, dips shallowly and remains open laterally and downdip.
As for holes FCG20-05 and FCG20-06, they extended the Colorado zone to the southwest, the analyst noted. The company placed them between the Colorado and Pack Rat zones and drilled them to the northeast.
As for the highlight results of these two, FCG20-05 returned 1.8 g/t Au over 90m, including 3 g/t over 45.3m and 6.3 g/t Au over 3.3m. Mineralization there is interpreted to extend further laterally and downdip toward historical hole FC17-01, 250m to the southwest. FCG20-06 showed 1.5 g/t Au over 37.7m and 1.1 g/t Au over 38.3m.
Combaluzier pointed out that with these new results, Getchell is "on track to modernize and grow the historical resource" at Fondaway Canyon, which is about 1 million ounces of gold at a grade of around 6.31 g/t.
Upcoming catalysts for Getchell include phase 2 drilling and a resource estimate at Fondaway Canyon, expected by year-end, along with a two- to four-hole drill program at Star, slated for Q2/21.
"We continue to believe Fondway Canyon still has a lot to offer with future drilling," Combaluzier stated.
"We expect 2021 drilling at Fondaway Canyon to further extend mineralization laterally and downdip and also test for Carlin-style mineralization at the Pediment area," he added.
Red Cloud has a Buy rating and a CA$1 per share target price on Getchell Gold, the stock of which is now trading at about CA$0.50 per share.[NLINSERT]
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