GSN Winnemucca Chapter Meeting – February 8, 2023

Description

Contact: Pat Donovan: pdonovan20@icloud.com

Meeting Date:  Wednesday, February 8, 2023

Meeting Location:  The Martin Hotel, 94 W. Railroad St.

Meeting time: 6 pm for appetizers and beer

Talk time: 7 pm

 Speaker:  Vance Spalding, VP, Exploration, Contact Gold

Title:  “Exploration Update and Discussion of Controls to Mineralization and New Discoveries and Targets at the Green Springs Project, White Pine County, Nevada”

Food and Drink Sponsor:  ENVIROTECH DRILLING LLC

For more information, please contact Chapter Co-Presidents: Nancy Wolverson at: nancyjeanw@aol.com or Pat Donovan at: pdonovan20@icloud.com.

Abstract:

The Green Springs mine produced approximately 74,000 ounces of gold grading 2.31 g/t Au in the late 1980’s from two small open pits (C and D pits).  Three other zones of Carlin-type oxide mineralization (A, B, and E zones) were identified, but not mined, during this period. Contact Gold optioned the project from Ely Gold Royalties in 2019 and completed the acquisition in January, 2023.  Centerra optioned the project in December of 2022, and is earning in on the project by spending $10 million on exploration over 4 years, with Contact as Operator.

Gold mineralization at Green Springs is hosted in two stratigraphic horizons; at the contact between the Mississippian Joana limestone with the overlying Mississippian Chainman shale, and at the contact between the Devonian Guilmette limestone with the overlying Devonian/Mississippian Pilot shale.  With the exception of the A zone, past production and drilling focused on the Mj/Mc contact, with only a few holes testing the underlying Dg/MDp contact beneath the mine trend, where anomalous gold was encountered.

In 2020, Contact Gold made two new discoveries at the Tango and X-Ray zones; 1.01 g/t Au over 13.72 meters and 0.55 g/t Au over 54.86 m in 2 holes at Tango, and 1.28 g/t Au over 39.62 m and 0.82 g/t Au over 24.38 m – 97% CN recovery.  Both discoveries were made by targeting gold bearing jasperoid at the Dg/MDp contact near NW striking high angle faults.  Also in 2021, a drill hole targeting a gap in historic drilling between B zone and D pit delivered an intercept of 0.7 g/t Au over 16.7 meters from the Dg/MDp contact horizon, representing the thickest and highest-grade intercept to date from that relatively untested target beneath the mine trend.  A small follow up program in 2022 continued to expand these discoveries, and a 14,000-foot program is planned for 2023 now that Centerra’s funding has been secured.