Shortly before receiving a takeover offer from Osisko Mining (OSK-T), Queenston Mining (QMI-T) released some positive drill results from its Bidgood gold project in Kirkland Lake, Ontario.
The company reported results from 73 surface diamond drill holes for 15,000 metres.
They showed the company had extended the South zone, returned positive results from the shallow and deep areas at the North zone, and hit gold in the Gap zone, an area between the two zones.
Queenston says 76% of the holes hit significant gold values, which means there is potential for an increase in an upcoming resource update, which the company has planned to have out in the first quarter of next year.
At the South zone, drilling extended mineralization along strike to the northeast, 50 metres past the current resource area.
Highlight intercepts included 38 metres grading 2.6 grams gold per tonne and 22.4 metres grading 1.5 grams gold. There is 100,000 oz. gold outlined in the zone.
Both the North and Gap zones intersected high-grade mineralization in a number of veins. Highlights include 3.5 metres grading 21.8 grams gold and 3 metres grading 31.2 grams gold.
“We believe the results indicate vein continuity along strike within each zone, but further drilling is required to confirm this assumption,” CIBC analyst Jeff Killeen writes in a research note.
For development, a future pit at the South zone may well be expanded to take any potential ore from the Gap zone.
Bidgood hosts the past-producing Bidgood mine that yielded 165,000 oz. gold from 1934 to 1951 at an average head grade of 9.2 grams gold per tonne.
Queenston acquired the property plus other assets in Kirkland Lake in 2010 via a merger with Vault Minerals.
Since then, the company has been focusing its drills along the Bidgood mine gold corridor, which was never properly explored since the mine shutdown.
The North zone, near the Bidgood No. 2 shaft, is comprised of narrow, high-grade mineralization. The South zone, near the Moffat Hall shaft, has high-grade and low-grade near-surface mineralization.
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