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Prize Mining reports diamond drilling results from Kena gold project

Published by , Assistant Editor
Global Mining Review,

Prize Mining Corporation (Prize) has reported results from the Phase I and II diamond drill programmes from the Kena gold project, located in the highly prospective Kootenay Boundary region near Nelson (British Columbia) and has provided a corporate update relating to the company's other activities including the Manto Negro copper project in Mexico.   

"The focus of this years exploration program at the Kena Gold project, which already contains a NI 43-101 compliant resource of 481 000 oz indicated and 1.3 million inferred oz of gold has been on the Toughnut property," said Michael McPhie, President and CEO of Prize Mining. 

"Drilling on Toughnut has intersected significant near surface gold mineralisation and we are encouraged to see these higher grade intercepts which demonstrate the potential for a much larger gold system on our property. We are excited about our 2019 drill programme as a follow up on these results."

The 2018 diamond drill programme at the Toughnut property, which is one of three major claim blocks that make up the Kena project, was completed in two phases, with 13 holes in Phase I and 7 holes in Phase II, for a total of 3886 m. The programmes were designed to test several zones of interest along the Silver King Shear system, all of which displayed anomalous geophysical and geochemical signatures and/or known gold+/-silver+/-lead+/-zinc mineralisation.  

Drill hole targeting utilised a combination of geology, soil geochemistry, magnetics and induced polarisation geophysics, with the target zones reflecting a series of sub-parallel northwest-southeast structural trends. All of the holes intersected disseminated pyrite +/- chalcopyrite, galena, sphalerite, and anomalous gold in sufficient quantities to explain the geochemical and geophysical signatures.

The drilling tested an area of approximately 1250 by 800 m along the margins, and following the southeast-trending extension, of the Gold Eagle Stock, an intermediate porphyritic intrusive body that may be related to the nearby Silver King Porphyry that hosts the NI 43-101 gold resource estimate on Prize's adjacent Kena claim block.

While elevated levels of gold were obtained in most holes, and specks of visible gold were observed in holes 6 and 8, the most encouraging intersection came from hole TN18020, with 26 m of 2.12g/t Au, including 6 m of 4.37g/t Au. Hole 20 is the most northwesterly hole in the programme and, due primarily to weather and ground conditions, this was the last hole in the programme such that follow up drilling will need to be conducted in the New Year.

Significantly, this intersection is approximately 100 m down dip of a historical (2010) intercept in hole VTN10-008, which returned 4.02g/t Au over 24.3 m (including 14.47g/t Au over 4.0 m).  Strike extension drilling by Prize in 2017 returned intercepts of 2.95g/t Au over 5.5 m (hole TN17006) and 1.0g/t Au over 17.7 metres (TN17009). Mineralisation in this zone includes disseminated pyrite with sheeted veins, stockwork and breccia with pyrite-quartz-chlorite-sericite, and more discrete mineralised zones including crosscutting chalcopyrite-quartz veinlets.  The zone remains open along strike and to depth.

Prize is fully funded for a follow-up programme in 2019.

TerraLogic Exploration Ltd. (TerraLogic) was engaged to manage the 2017 and 2018 Toughnut drilling programmes and provided a rigorous and independent QA/QC programme. Sample chain-of-custody was instituted with analysis being completed by Bureau Veritas, in Vancouver BC. Analytical packages utilised include a strong acid ICP analysis (MA250) and gold fire-assay analysis on a large 50 g split (FA450). Gravimetric analysis (FA550) was also completed on any FA450 results greater than 5 g/t Au.  Bureau Veritas is wholly independent of Prize Mining and TerraLogic and is accredited under CAN-P-4E (ISO/IEC 17025): General Requirements for the Competence of Testing and Calibration Laboratories ISO/IEC 17025-2005.

Jarrod Brown, P. Geo., a manager of TerraLogic, is the company's nominated Qualified Person under NI 43-101 responsible for monitoring the supervision and quality control of the exploration programs completed on the Kena, Daylight and Toughnut properties in British Columbia. Brown has approved and verified the scientific and technical information in this news release.

Corporate update

The company raised a total of CAN$9.8 million over three tranches in 3Q18. A significant portion of these funds have been used to enable two significant diamond drilling and geological exploration programmes at the above Kena gold project and the Manto Negro copper project in northeastern Mexico. As noted, the Kena programme is now complete and the Phase 1 Manto Negro drill programme is ongoing and expected to be completed by the end of January/early February 2019. In addition to diamond drilling with up to three drill rigs, the Manto Negro programme has also included road building and upgrades, the installation of a full service camp and related infrastructure and services for water, telecommunications, and accommodations. Assays results from the current programme are pending.

The Phase 2 Manto Negro exploration programme will begin in February/early March of 2019 and is intended to follow up and build on the results of the current programme.  Further, the next Phase of the Kena project exploration programme is also expected to begin in 1Q19.  

The company also continues to work with consultants and service providers it has engaged to look at accretive opportunities for acquisition specifically in the copper space as we remain very bullish on the outlook for this strategic and critical metal that is a fundamental aspect of the global move to electrification of our infrastructure.  

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