Mining News: Filling the gap; added drill results reinforce Peak zones connection
Contango Ore Inc. Aug. 25 reported second-quarter financial results along with assays from seven additional holes drilled at its Tetlin gold project in eastern Alaska. The company reported a net loss of US$1.2 million, or US31 cents per share, for the year ended June 30, compared with a loss of US$3.6 million, or US94 cents per share, for the same period last year. This substantial reduction in net loss is due to all exploration expenses this year being incurred by Peak Gold LLC, a joint venture under which Royal Alaska, LLC, a wholly-owned subsidiary of Royal Gold Inc., up to a 40 percent interest in Tetlin by investing up to US$30 million in the project by October 2018. This earn-in spending is being invested into the exploration and development of the Peak deposit as well as other new gold-bearing areas across the Tetlin properties, near the crossroads community of Tok. TET16210, the last hole of the 2016 phase 1 winter drill program at Tetlin, tested an idea that the North Peak zone and Peak deposit may be two parts of a continuous band of skarn mineralization. Drilled about 200 meters southeast of North Peak and 200 meters northeast of Peak, TET16210 cut two mineralized intercepts, including 43.96 meters averaging 3.28 grams per metric ton gold, 30.6 g/t silver and 0.402 percent copper. During the summer program by Peak Gold, drilling has encountered high-grade gold mineralization between the southern end of North Peak and TET16210. All seven holes reported by Contango Ore on Aug. 25 encountered significant width of gold mineralization in this North Peak-Connector zone at Tetlin. TET16242, drilled adjacent to TET16210, cut five gold mineralized intercepts, including 26.35 meters averaging 5.55 g/t gold from a depth of 37.58 meters. TET16244, drilled 100 meters northwest of the Connector zone discovery hole, cut three gold mineralized intercepts, including 26.35 meters averaging 5.55 g/t gold from a depth of 11.74 meters. TET16248, drilled 25 meters northeast of TET16244, cut six gold mineralized intercepts: 1.37 meters of 9.29 g/t gold from a depth of 9.38 meters; 9.06 meters of 5.02 g/t gold from 11.74 meters; 5.78 meters of 1.79 g/t gold from 30.78 meters; 2.74 meters of 10.62 g/t gold from 43.22 meters; 4.98 meters of 5.53 g/t gold from 52.75 meters; and 10.79 meters of 4.05 g/t gold from 61.23 meters. Assays from the summer program at Tetlin are expected to continue to roll in during the coming weeks. Contango Ore President and CEO Brad Juneau is scheduled to speak at the Denver Gold Forum on Sept. 19.
-Shane Lasley
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