It has been a busy year for GGX Gold Corp (CVE:GGX) (OTCQB:GGXXF) as drilling was stepped up at its most developed project and it raised funds and bolstered its technical team to keep the programme advancing.
The Vancouver-based group recently completed the first three diamond drill holes of the 2018 programme at its Gold Drop property near Greenwood, British Columbia.
Gold Drop was mined intermittently from 1919 to the 1980s with historical production totalling 7572 tonnes at an average grade of 5.2 grammes per tonne (g/t) of gold and 93.4 g/t of silver, with the majority of production prior to 1942.
The work being done currently is testing the COD vein in the Gold Drop Southwest Zone, following up on results from the 2018 winter-spring drill programme which tested the southern extension of the COD vein.
Two of the southernmost holes, COD18-45 and COD18-46, hit high-grade gold and this latest drilling is focusing on the area of these two holes.
The aim is to trace the gold mineralisation at depth and further holes are also planned to test for the vein to the south of these intercepts.
The Fall drill program aim was a follow up on the high-grade intersections in the COD Vein system seen specifically in the area of two earlier 2018 holes, one of which hit 50.1 grams per tonne (g/t) gold and 375 g/t silver over 2.05 meter core length, including 167.5 g/t gold, 1,370 g/t silver and over 500 g/t tellurium over 0.46 meter core length
Previous drill highlights for 2017 and 2018 include 50.1 g/t (grams per ton) gold over 2.05 meters, 54.9 g/t gold over 1.47 meters and 4.59 g/t (grams per ton) gold over 16.03 meters at the COD vein.
Cash on tap
GGX has undertaken a number of cash raisings over the year to provide it with funds to continue the drill programme.
In July, GGX told closed the first and second tranches of a previously announced placing to raise gross proceeds of C$362,000. The resource company said then that it had sufficient funds to complete its planned summer exploration program on the Gold Drop property.
The group said a total of C$162,000 was raised for the first tranche and C$200,000 for the second tranche.
In June, a non-brokered private placement of eight million flow-through units at a price of C$0.12 per unit raised gross proceeds of C$960,000.
And back in May, GGX Gold raised C$480,000 via another non-brokered private placement of four million equity units also priced at C$0.12, with each equity unit consisting of one common share of the company and one share purchase warrant, which may be exercised for a period 36 months at a price of C$0.15 per share.
GGX said the funds raised will go towards progressing the company’s continued exploration work at Gold Drop project which is including diamond drilling and trenching. The funds are also to be used for general purposes.
Technical team bolstered
On the management front, GGX also bolstered its technical team at the Gold Drop project earlier this year, with the recruitment of geologist Robert A. Tilsley.
Tilsley has over 40 years’ experience in minerals exploration for various types of mineral deposits in North and South America and Africa.
The group pointed out that he has extensive exploration experience in the evaluation of auriferous quartz veins and extensive uranium exploration experience in the Athabasca Basin in Canada and in Niger.
GGX’s Toronto-listed shares raced up to C$0.13 each back in August on the back of news that one holes had an intercept of 50.1 g/t gold and 375 g/t silver over 2.05m (meter) core length.
However, as the company awaits further assay results from the drill programme, its stock has drifted back to trade currently at around C$0.06 each.
At the end of August, GGX shares trading on the OTCQB venture market were deemed DTC eligible by the Depository Trust Company (DTC), which should increase liquidity.