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Explorer Expands Gold Mineralization at Yukon Flagship

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Results announced by this gold explorer show that it is expanding the mineralization at its Yukon flagship project.

Snowline Gold Corp. (SGD:CSE; SNWGF:OTCQB) has announced analytical results from two holes at the Valley target on its flagship Rogue project in Canada's Yukon territory, including one which succeeded in expanding the target's mineralization 75 meters to the southeast.

Hole V-23-036 was drilled to test that southeast edge of Valley's corridor of multiple-gram-per-tonne gold mineralization, the company said. It average 2.92 grams per tonne gold (g/t Au) over 143.5 meters from 23.5 meters downhole and 1.53 g/t Au over 414.5 meters from the bedrock surface.

Another hole, V-23-035, expanded the known mineralization to the western edge of the Valley intrusion, returning 1.01 g/t Au over 396.5 meters from the bedrock surface.

Asset manager Chen Lin, author of the What's Chen Buying? What's Chen Selling? newsletter, recently visited Snowline.

"My Yukon trip was amazing," Chen wrote on July 27. "The highlight is (Snowline). They are hitting out of the park almost weekly. There are talks about 8 to 10 million ounces (Moz) of high-grade gold there. The challenge is access, a road needs to be built."

Analytical results for all 17 holes at the site are pending, with drilling there continuing, the company said.

Technical analyst Clive Maund wrote July 10 that the stock was showing major upside volume for several weeks with downside volume "all but drying up completely."

"People aren't selling, and for good reason," Maund wrote. "At the same time, buyers are becoming more aggressive. This suggests that we may be (on) the verge of dramatic upside acceleration."

The company recently announced a major expansion to Rogue, a CA$19.16 financing from B2Gold Corp. (BTG:NYSE; BTO:TSX; B2G:NSX), that B2 Gold was increasing its stake in the company to 9.9%, and that the stock had started trading on the TSX Venture Exchange.

"There is every reason to expect the bull market in Snowline to continue," Maund wrote. "Good news has been gushing out of the company nonstop for weeks.

The Catalyst: 'Significant Exploration Upside'

The newest results highlight the "significant exploration upside" of the Valley target, especially with its near-surface mineralization, Snowline Chief Executive Officer and Director Scott Berdahl said.

The intercepts add a large tonnage of rock to the zone.

"This has strong favorable implications for a favorable strip ratio, low internal dilution and of course overall gold content in any potential future operation at Valley," Berdahl said. "With our exploration season still ramping up, we are encouraged by these early results."

Hole V-23-036 was a 75-meter step-out from mineralization found in previous drilling. Within the 143.5-meter interval at 2.92 g/t Au, 131 of 148 samples assayed higher than 1.0 g/t Au, representing a total of 127.5 noncontiguous meters, or 89%, of the downhole interval, Snowline said.

"Results from V-23-036 expand the known extent of near-surface, over two g/t Au mineralization at Valley and further demonstrate strong continuity of mineralization at Valley," the company wrote in a release.

Hole V-23-035 was collared farther southwest than any other hole at the site.  

"Such robust, over one g/t Au, gold grades encountered in V-23-035 along the southwest margin of the known mineralized system provide strong support for the idea of a single, large, recoverable body of gold mineralization at Valley with a very low strip ratio and minimal internal dilution," the company noted.

Two drills continue to be active on the site, continuing the company's more than 10,000-meter drill program at Valley. Eight holes have been completed, two holes are in progress, and additional drilling is planned. Analytical results for all but three 2023 Valley holes are pending.

Other Projects

On June 9, Snowline announced it had expanded Rogue, located in the underexplored Selwyn Basin, by some 80% to more than 94,000 hectares.

"We have actively built, progressively and systematically, not just a first-mover position but effectively an only-mover position in a fertile area that we believe has the potential to become a new gold district," Berdahl said at the time. "We can now comprehensively and responsibly explore this area, focusing not only on advancing our existing targets but on making additional discoveries as well."

Snowline's project portfolio also includes the EinarsonToshCliffRainbowCynthia, and Ursa claims. Einarson consists of two main claim blocks and several outlying claim groups covering 61,690 hectares, while the Cliff Property covers 2,724 hectares.

The Tosh Property covers approximately 3,700 hectares, some 20 kilometers from the paved, all-season Alaska Highway. The Rainbow Property covers approximately 1,225 hectares, the Cynthia Property covers approximately 1,399 hectares, and the Ursa claims cover some 7,755 hectares.

Why Gold Right Now?

According to the World Gold Council's Gold Outlook 2023, the yellow metal, traditionally seen as a hedge in volatile markets, is expected to put in a "stable but positive performance for gold."

"Following a challenging 2022, we expect consumer gold demand in China to return to 2021 levels thanks to fewer COVID disruptions, a cautious economic rebound and a gradual pick-up in consumer confidence," the report said.

European gold bar and coin investment is likely to continue in 2023 as retail investors, especially in Germanic markets, look to protect their wealth, the Council wrote.

Streetwise Ownership Overview*

Snowline Gold Corp. (SGD:CSE; SNWGF:OTCQB)

*Share Structure as of 7/31/2023

"Even a decline in inflation is unlikely to encourage lower demand, given underlying risks," it wrote.

Ownership and Share Structure

According to the company, about 28% of the company is owned by management and insiders. They include Ana Cox Alvarez del Villar de Gubbins with 7.93%, Independent Director Gunther Roehlig with 0.4%, and Independent Director Calum Morrison with 0.07%, according to Reuters.

About 20% is owned by institutions, the company said. These include Crescat Capital LLC with 8.16%, 1832 Asset Management L.P. with 2.62%, and Van Eck Associates Corp. with 1.07%, Reuters said.

About 16% is held by strategic investors, including 9.9% held by B2Gold, Snowline said. The remaining 45% is retail.

Snowline has a market cap of CA$648.77 million, with 140.28 million shares outstanding. It trades in a 52-week range of CA$4.97 and CA$1.63.

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Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Snowline Gold Corp.
  2. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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