Argonaut Gold (TSX: AR) has reported high-grade intercepts from its phase two drill program at the company’s wholly-owned Magino gold project in Ontario, 14 km southeast of Dubreuilville.
The phase two drill program targeted high-grade mineralization identified during the phase one program at the property’s Elbow zone, situated below the proposed pit at Magino.
Highlights include drill hole MA20-040, which intercepted 20 metres grading 4.58 grams gold per tonne, including 6 metres of 8.31 grams gold per tonne, starting from 444 metres downhole.
“We continue to intersect high-grade gold and, more importantly, we are seeing promising high-grade continuity within the Elbow Zone where we have now tightened drill spacing averaging between 40 metres and 50 metres in two areas,” Pete Dougherty, the company’s president and CEO, said in a press release.
“We are anxiously awaiting results from Phase Two drilling in the Central Zone where, like results from the Elbow Zone, we continue to encounter visible gold.”
The company has now completed 54 diamond drill holes, including six wedge holes, covering 34,852 metres in the two drilling campaigns.
The phase one program discovered several high-grade veins over a wide area beneath and adjacent to the Magino gold reserve. The drill holes, the company said, were spaced up to 400 metres apart and reached vertical depths of up to 1,000 metres.
Phase two focussed on defining gold continuity within the high-grade shoots, with holes designed to offset phase one high-grade intercepts by approximately 40 metres, the company said.
The drill results to date, it believes, indicate the continuity of mineralization in the upper and deep portions of the Elbow zone.
In the upper Elbow zone, the company drilled four additional holes to test continuity around hole MA19-016, which returned 14 metres grading 9.63 grams gold from 360 metres downhole.
The company has completed a total of 10 holes in phase one and two around hole MA19-016, all of which, it said, have intercepted significant gold mineralization.
The deepest hole to date, MA20-026A, intersected 7 metres grading 7.84 grams gold, including a high-grade intercept of 1 metre grading 47.8 grams gold from 984 metres downhole. The mineralization remains open at depth.
The company plans to conclude the phase two drill program with a series of offset holes that are currently being drilled around MA19-020, which intersected 6 metres grading 10.79 grams gold from 833 metres downhole, to establish a third continuity test zone.
This zone, it said, is about 650 metres deep and lies approximately halfway between the continuity zones around holes MA19-016 and MA20-026A.
At press time in Toronto, Argonaut was trading at $2.83 per share within a 52-week trading range of 76¢ and $2.99.
The company has around 288 million common shares outstanding for an $816.3-million market capitalization.