Gungnir Resources Inc (CVE:GUG) (OTCPINK:ASWRF) (FRA:AMO1) has said it plans to re-start exploration at its key Knaften project in Sweden in the second quarter of this year as the firm also revealed it had expanded the size of the property by 75%.
The company has been granted new permits such that the site now comprises 4,887 hectares (nearly 50 square kilometres), adding significantly to the potential of its intrusion-hosted gold target and the project now covers all of this 4 kilometres (km) by 5km prospective area.
READ: Gungnir Resources plans to increase spend at Rormyrberget and Lappvattnet nickel assets next year as it hails updated resource estimate
The source of the gold here is thought to have been partially identified at the company's Knaften 300 target, where drill assays have included 14.07 grams per ton (g/t) gold over 4.25 metres (m), but Gungnir reckons there is more gold to be found in situ.
Notably, other gold-in-till anomalies in the region cover either current and past-producing gold mines or known gold resources.
These include the Agnico Eagle/Barsele joint venture, which had over 2 million ounces of gold and the Boliden/Bjorkdal gold deposit area, which has seen over 5 million ounces of the yellow metal produced.
Work set to start in the second quarter will include geophysics and drilling to test for extensions of Knaften 300, along with initial scout drilling on the newly acquired permits which are essentially untouched.
Drilling is also being planned at Gungnir's Lappvattnet and Rormyrberget nickel deposits which collectively contain 177 million pounds of nickel-based on new resource estimates.
Also of particular interest is the grade and distribution of PGEs (platinum-palladium-gold) at Lappvattnet where Gungnir's sampling returned up to 50.91 g/t PGEs over 0.45m, the firm added.
Gungnir's key project, Knaften hosts this intrusion-hosted gold system, along with VMS (zinc-copper) and copper-nickel targets, all of which are open for expansion.
Contact the author at giles@proactiveinvestors.com