logo-loader

Tawsho Mining strikes 47.3 g/t gold at Whiskey Valley, Newfoundland

Published: 21:03 22 Aug 2011 BST

no_picture_pai

Gold explorer Tawsho Mining (CVE:TAW) said Monday that it came across major gold showings at shallow depths of less than 50 meters during its summer drill program at its Whiskey Valley gold project in Newfoundland.

The company’s shares shot up 65 cents, or 26%, to close at $0.315 after climbing as high as 40% earlier in the day.

The Whisker Valley Gold property, which is comprised of 913 claims and covers 21,875 hectares, rests in northern Newfoundland, in the Baie Verte region.

The company said that it completed 11 holes during its summer campaign, and visible gold was identified in quartz veins.

Hole WK11-08 returned an average grade of 47.3 grams per tonne (g/t), while hole WK11-06 intersected an average grade of 19.7 g/t over an interval of 0.15 meters.

Further, gold mineralization in hole WK11-08 over a 1.3 metre interval returned a weighted average grade of 7.9 g/t, the company said.

"The level of successful holes with significant gold intersections is encouraging. Holes number six and eight contained values in excess of 0.58 ounces gold per ton and 1.38 ounces gold per ton respectively,” CEO, Michael Avedesian, said in a statement.

"Of further significance is the fact that the strong gold showings were encountered at very shallow depths of less than 50 metres.

"In fact, all significant gold showings were encountered at less than 250 metre depth."

That said, given the high gold showings, the company had all the high value drill cores retested a second time to ensure accuracy and has used the results from the retested core samples as the benchmarks reported today.

Still, the company said that the level of geological knowledge for Whisker is in its early exploration stages, with less than 5% of the property having been explored by Tawsho.

The summer drill program initially targeted six induced polarization anomalies identified in last year’s exploration campaign, of which five have now been drilled.

The drill program, although preliminary, has now identified the presence of gold mineralization in three of these targets. Tawsho said the sixth drill target became inaccessible due to spring thaw, and will be tested in the next drilling campaign.

Tawsho Mining, established in November 2006, is a gold exploration and development company focused on properties mainly in Canada.

Currently, it is developing its Chevrier project – comprised of 557 claims covering an area of 9,542 hectares – in the Chibougamau region of Quebec.

Chesnara reports strong 2023 results with improved cash generation and...

Chesnara PLC (LSE:CSN) chief executive Steve Murray discusses the company's full-year results for 2023 with Proactive's Stephen Gunnion, describing them as strong and particularly highlighting £53 million in commercial cash generation and a dividend coverage of around 150%. The company has...

59 minutes ago