Mining News: Northern Neighbors: Northquest drills porphyry; Nord Gold ups stake

Northquest Ltd. Nov. 24 reported results from 18 holes drilled at the Pistol Bay gold project in Nunavut. Most of this drilling, 12 holes, was completed in the western extension area of the Vickers Zone. Highlights from drilling in this area include: PB-15-16, which cut 30 meters averaging 2.1 g/t gold; and PB-15-18 cut 26.18 meters grading 0.82 g/t gold below the hole 16 intercept. The most exciting intercepts were cut in four holes drilled at the eastern end of the deposit. PB-15-17 cut four gold-bearing silicified zones along more than 300 meters of the hole, including: 38 meters averaging 0.4 g/t gold from a depth of 47.5 meters; 59 meters averaging 0.48 g/t gold from 96 meters, which is associated with an 18-meter-thick quartz-feldspar porphyry; 66 meters averaging 0.95 g/t from 239 meters; and 11 meters grading 1.86 g/t gold from 348 meters. PB-15-11 also cut four gold-bearing zones in the Vickers eastern extension area. The best intersection of hole 11 is 44.5 meters averaging 1.07 g/t gold that correlates with the intersection in PB-15-17. PB-15-20 cut six gold-bearing zones and visible gold was noted five times in the hole. The best intersection of hole 20 was 50 meters averaging 2.13 g/t gold. The quartz-feldspar porphyry in this hole was intersected for 33.29 meters starting at from a depth of 101.35 meters, and included 33.00 meters averaging 0.61 g/t gold. PB-15-26 cut two gold zones, including 26 meters of 1.38 g/t gold that is associated with a 39.7-meter interval of quartz-feldspar porphyry that correlates with the porphyry intersections in PB-15-17, 11, and 20. “The drill holes reported here extend the strike length of the Vickers gold zone by 150 meters, for a total strike length of 600 meters, and the zone is open to the east and at depth,” said Northquest CEO Jon North. Two additional holes were drilled at the Defender target, located roughly 13 kilometers (eight miles) west of Vickers.

Following the release of the results, Nord Gold N.V. announced that it invested just over C$5 million to buy 17.5 million Northquest shares, through the exercise of all the warrants it held in connection with previous investments. As a result, Nord Gold holds 55.575 million Northquest shares, or about 52.3 percent on a non-diluted basis. Nord Gold CEO Nikolai Zelenski said, “After positive results of the exploration program at Pistol Bay in 2015, which confirmed its potential of being a high-quality deposit of substantial scale with high grade ore, a moderate stripping ratio and excellent metallurgy, we are pleased to provide continuing support to the project development with this additional investment.”

- Shane Lasley