High Grade Gold Assay Results Reported by Guyana Goldstrike From Trench Sampling at Marudi
With ongoing fieldwork underway at the Marudi project in Guyana, the steady flow of news from Guyana Goldstrike Inc (TSXV: GYA – $0.30 & OTCBB: GYNAF – $0.22 & Fra: 1ZT – €0.19) continued this week. Another batch of assay results from the ongoing trenching work in the Toucan Ridge target area was presented. Once again, sampling has confirmed attractive gold values, with a highlight interval of 3 meters that averaged 5.4 g/t gold in trench TTR-18-08. This came within a larger overall sample width of more than 16 meters, with an average of 1.38 g/t gold across the entire section.
Several other samples from this same trench have been submitted for assay with results pending. It is of interest to note that the longest interval of gold mineralization encountered so far from the fieldwork program has come from this trench that also yielded a high grade section.
Ambitious Trenching Program Underway
The trenching program is set up to establish a two dimensional ‘footprint’ that outlines the surface expression of the target area. Trenches are excavated up to three meters below surface overburden in order to enable sampling of the soil and rock layer below that is more representative of the local geology. Each trench is oriented roughly perpendicular to the estimated lateral strike of the target zone, and parallel trenches are driven in intervals separated by 50 to 100 meters.
With a target strike length for the Toucan Ridge target area spanning roughly 1.75 kilometers, this suggests a large number of trenches will ultimately be completed to investigate the near surface resource potential. The scope of this fieldwork is even more impressive when one considers that some of the individual trenches extend more than 100 meters, and TTR-18-08 continued for a full 280 meters across the target zone. So far, a total of 704 meters of trenching have been completed, and 254 individual samples submitted for assay.
Information gathered from this ambitious program will help towards selecting drilling locations. The subsequent drill program can then provide information on the overall tonnage and grade of the deposit which may then be used to calculate an estimated gold resource and create a 3D model for the resource zone.
While drilling activity is what most investors consider of greatest importance, the continued successful trenching work is rapidly expanding the target area and the potential gold deposit that may eventually be defined at Toucan Ridge. This methodical and systematic approach to exploration has already contributed two new gold discoveries at the Marudi project, and these new target areas have evolved into significant gold zones where the Company may outline a compelling near surface, high grade gold deposit.
Commencement of Airborne Geophysical Survey Pending
A second news release this week confirmed that equipment is now being staged in Guyana to commence an aerial geophysical survey across the entire 13.5 square kilometer area of the Marudi Property. The rainy season in Guyana is winding down and technicians are hopeful that favorable weather will begin in September to enable the program to get underway.
Airborne sensors to record magnetic and radiometric data will be deployed from a helicopter at a stable speed and altitude to complete the survey in a grid across the property. Because the target quartzite-metachert host rock contains particles of magnetite this mineral will light up potential target areas through interpretation of magnetic imaging. Radiometric surveying will measure trace radioactive signatures of various rock units that define geologic structure and outline boundaries of different rock units.
Interpretation of survey data can help geologists identify where subsurface target zones may exist. Since the Company has already established a significant deposit at the Mazoa Hill zone, this will also provide a known constant in the survey data and hopefully pinpoint other sections elsewhere on the property with a similar geophysical signature. It is also noteworthy that the planned geophysical program will be the first comprehensive survey completed for the entire property area.
Combined with extensive historical soil sampling work across much of the property, and the current trenching program underway, the additional data generated by this aerial geophysical survey will improve the ability for exploration team to visualize the geology of the project and identify new target areas with greater efficiency.
The summer of 2018 has not been kind to mineral exploration companies as a group, and many are now trading down to new lows. Guyana Goldstrike has been a pleasant change from this bearish trend, and shares of the Company are performing well in the market because the Company is effectively executing its business plan and achieving results in the field.
With the equity investment of more than $3 million from the funds operated by Zijin Mining Group, Guyana Goldstrike secured the necessary money to confidently advance a multiphase exploration program at Marudi. Guyana Goldstrike has operated as a model of how to proceed with a focused strategy that has enabled the market performance to also rank among the leaders for this sector.
Steady news flow with positive results is another factor in the strong performance for the stock. With two more news items released this week, and the prospect of a steady flow of updates and assay results in the months ahead, this trend communicates to investors that the Company is following through with its exploration objectives.
While news flow is important, it is high grade assay results that catch the attention of the market. This week Guyana Goldstrike reported one of the highest grading sample results so far from the new zone, and the longest mineralized interval so far with the trenching program underway. Both of these items enhance the speculative potential going forward since the Toucan Ridge target area remains the focus with a huge amount of work scheduled to complete the program.
The update regarding the airborne geophysical program is also an indication of the well planned exploration strategy in Guyana. Preparing the first geophysical survey for the entire property area such that it can yield additional data early in the exploration process demonstrates that management is committed to achieving its objective to build significant gold resources at Marudi. The high resolution data from this survey will provide the geologists with another effective tool to do so. Recommendation: BUY.
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