Onyx hits 13g gold at Munro-Croesus in Ontario

Onyx Gold (TSXV: ONYX) reported one of its highest-grade intervals yet at the Munro-Croesus project in northern Ontario as the Canadian developer works to outline a broad gold system. The stock rose.

Standout hole MC26-340 in the Argus Main zone cut 1.7 grams gold per tonne over 67 metres from 299 metres depth, including 13.2 grams per tonne gold over 6 metres from about 341 metres downhole, Onyx said Wednesday. Also part of the intercept was a one-metre interval of 73.4 grams gold from about 342 metres depth.

“Hole 340 is one of the strongest higher-grade intersections we have drilled at Argus Main to date and provides another important piece of the emerging picture at the Argus Gold System,” CEO Brock Colterjohn said in a statement. “The more we drill Argus Main, the better we are defining substantial higher-grade mineralization within the broader mineralized envelope.”

Vancouver-based Onyx is about three-quarters of the way through a planned 110,000-metre drill program at Munro-Croesus, which is located 75 km east of the city of Timmins. Crews have been drilling for two years as they seek to define a larger gold system that could support an initial resource.

Greenstone belt

Other notable intercepts released Wednesday included hole MC26-329, which cut 75 metres of 1.1 grams gold from 417 metres downhole. That included 21 metres of 2.1 grams gold from 461 metres depth.

Munro-Croesus covers 112 sq. km in the Abitibi greenstone belt. It includes the past-producing Croesus gold mine, which averaged 93.5 grams gold during operations between 1908 and 1936.

Bulk-tonnage deposits in the area include Mayfair Gold’s (TSXV: MFG) Fenn-Gib project and STLLR Gold’s (TSX: STLR; US-OTC: STLRF) Tower property.

Onyx has consolidated more than 8 km of strike along the Pipestone Fault, a regional structure associated with gold mineralization. Much of that ground has seen little or no modern exploration, the company says.

Emerging system

Argus Main is part of an emerging gold system that encompasses multiple zones of mineralization immediately north of the Pipestone Fault. Other recognized zones so far include Argus North and Argus West, with additional exploration targets being drill tested across the broader Pipestone and Argus Fault corridors.

Drilling to date has demonstrated gold mineralization across about 1.4 km of strike and more than 700 metres vertically, Onyx says.

Onyx expects to finish the 110,000-metre drill program by year-end. It has about $14 million (US$10 million) in the bank to pay for the work. 

“With four rigs operating and over 27,000 meters remaining in our fully funded program, our priority is to continue expanding the known zones while systematically testing for additional centres of mineralization across the broader system,” Colterjohn said.

Onyx Gold shares rose 5.3% to $1.58 Wednesday morning in Toronto, valuing the company at about $140 million. The stock has traded between $1.01 and $2.08 in the past year.