Nevada King Gold Corp shares surged 38% to close at $0.42 on Monday after the resource projects developer announced assay results from three, vertical reverse circulation (RC) holes completed recently at its Atlanta Gold (TSX:ATG) Mine Project in Nevada, which included 11.64 grams per tonne (g/t) gold over 108.2 metres (m).
The company called the results from drill hole AT23WS-44 "the most gold rich drill hole ever recorded at Atlanta" and contains the highest-grade individual drill assay interval ever reported from the project of 169.8 g/t gold over 1.5m.
"The rhyolitic intrusive breccia hosting the highest grade mineralization in the hole probably intruded along the WAF1 and will be easy to visually track in the up-coming offset holes of AT23WS-44 that will be drilled to further expand upon this 'bonanza grade' mineralization," Nevada King Gold exploration manager Cal Herron said in a statement.
"Close-spaced drilling along suspected high-grade zones has now provided Nevada King with enough information to concentrate on drill-defining these relatively narrow (less than 20m wide) but very high-grade, linear intersection zones involving high-angle 'feeder' faults and flat-lying replacement horizons," he added.
Nevada King noted its new geological model supports the presence of very high-grade zones or 'jewelry boxes' that can occur at the juncture between sub-vertical feeder zones and flat-lying horizons of replacement-type (Carlin-type) mineralization.
The company added that it is planning to follow up on AT23WS-44 with closely spaced vertical holes east and west to better determine the lateral extent and grade distribution in and around the feeder structure, while also following it along strike, where it remains open to the north and south.
Nevada King is the third largest mineral claim holder in Nevada, behind Nevada Gold Mines (Barrick/Newmont) and Kinross Gold.
Its project portfolio includes the Atlanta Mine, the Lewis and Horse Mountain-Mill Creek projects, and the Iron Point project.
Contact Sean at sean@proactiveinvestors.com