Thunder Gold assays suggest Tower Mountain expansion in Ontario

New drilling by Thunder Gold (TSXV: TGOL; US-OTC: TGOLF) at its Tower Mountain project in Ontario has confirmed the deposit’s main trend continues at depth and remains open for further expansion.

Standout hole TM26-204 at the UV target cut 45 metres of 1.79 grams gold per tonne from 277 metres depth within a broader interval of 142 metres averaging 0.67 gram gold from 190 metres downhole, Thunder Gold said Thursday. Hole TM26-203, meanwhile, cut 14 metres averaging 0.61 gram gold from 3 metres depth in previously un-estimated rock.

“Ultimately, Thunder Gold now has a stronger understanding of the UV target,” Atrium Research mining analyst Riley Venton said in a note. “Step-out holes have confirmed continuity of the low-grade core at depth, which remains open, while shallow drilling identified additional near-surface mineralization within the pit.”

Thunder Gold is planning to drill about 15,000 metres at Tower Mountain this year ahead of a resource update in the fourth quarter. The site is about 40 km west of Thunder Bay.

The company is targeting an expanded resource of as many as 5 million oz. gold, which would include 1.5 million indicated ounces and 3.5 million inferred ounces. This would position Thunder Gold to deliver a preliminary economic assessment, Venton said.

January resource

Tower Mountain holds 34.5 million indicated tonnes grading 0.46 gram gold for contained metal of 514,000 oz. gold, according to a January resource. It also has 211.1 million inferred tonnes at 0.45 gram gold for about 3.1 million oz. gold.

Other new drill results include hole TM26-200, which cut about 239 metres averaging 0.26 gram gold from about 362 metres depth. Hole TM26-198, meanwhile, intersected 39 metres of 0.32 gram gold within 100 metres of surface in a new mineralized zone immediately adjacent to the current optimized pit limit.

The new results improve “the overall economics of a potential open-pit operation,” CEO Wes Hanson said in the statement. “The step-out holes confirm that the low-grade core at UV continues at depth and remains open, while the shallow holes have identified new zones of near-surface mineralization in areas previously modeled as waste.”

Drill program

Resource definition drilling, which will aim to convert inferred resources to indicated, should begin Aug. 1 and run through Sept. 30, Hanson also said. Results are anticipated by mid-October in advance of an updated resource, subject to any delays related to extreme forest fire conditions in northwestern Ontario.

Tower Mountain is located along the Trans-Canada Highway within 3 km of rail and hydro power lines.

Thunder Gold shares were unchanged at 10¢ Friday morning in Toronto, valuing the company at about $30 million (US$21 million). The stock has traded between 4.5¢ and 18¢ in the past year.