Drilling results at Onyx Gold’s (TSXV: ONYX; US-OTC: ONXGF) Munro-Croesus project have expanded gold mineralization at the Argus North and Main targets and identified a new potentially gold-bearing area.
Onyx reported on Thursday that highlight hole MC26-274A, from Argus North, cut 28.1 meters grading 3.5 grams of gold per tonne from a depth of 380 metres, including 17.8 meters grading 5.3 grams gold. At Argus Mine, hole MC26-324 returned 93 meters grading 1 gram gold from 316 meters downhole, including 20 meters grading 2 gram gold and 6 meters grading 3 gram gold. Monroe Croesus is located 75 km east of Timmins and approximately 540 km north of Toronto.
“Today’s results show that both Argus North and Argus Main continue to grow in depth while maintaining the broad and persistent pattern of mineralization that has become a feature of the system,” Onyx Gold CEO Brock Colterjohn said in a statement. “We believe we are still in the early stages of defining the full scope of the Argus Gold System.”
Previously productive mine
The latest results come as Onyx seeks to identify a larger gold system beyond Argus Main and North that could support a primary resource, which the company has yet to launch despite two years of continuous drilling. The Croesus Mine that previously produced on the site averaged 93.5 grams of gold during operations between 1908 and 1936.
Other highlights from Argus North include 19 meters at 3.5 grams gold from a depth of 409 meters in hole MC26-271, including 6.6 meters at 8.3 grams gold.
This target was intersected at a depth of more than 700 meters vertically and remains open, Onyx said. Drilling continued to encounter the same broad pattern of altered and mineralized volcanic rocks that had been discovered in the shallow portion of the target.
110,000 meter programme
Onyx has drilled 75,000 meters so far at Monroe Croesus across 188 holes, in what it described as one of the largest fully funded gold exploration programs in the Abitibi region. It plans a further 35,000 meters this year, with the aim of expanding the Argus-type gold system which features sharply lower high-grade gold zones and spread targets of low-to-medium grade gold zones.
Onyx shares were down about 1% to $1.50 per share Thursday morning in Toronto, with a market value of about $US129.8 million (US$93 million). The stock has traded in a 12-month range of $1.01 to $2.60.
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