Fury Gold Mines Limited (TSE:FURY) (NYSEAMERICAN:FURY) (FRA:AUN1) says assays from the initial five drill holes at the Eau Claire deposit in Quebec have shown the potential to expand the high-grade resource at its eastern margin.
This area already contains an inferred resource of 204,000 ounces grading 11.81 g/t gold at a 2.5 g/t cut-off. Today's drilling highlights from outside the defined resource include an intersection of 6.04 meters (m) at 11.56 g/t gold and 2.51m of 8.87 g/t gold.
READ: Fury Gold Mines planning up to 10,000m of drilling at Committee Bay gold project this summer
"Our first set of drill results confirm the potential of this under-explored area of the deposit and supports our overall goal of increasing scale and defining more gold at Eau Claire," said Mike Timmins, CEO of Fury in a statement.
"We are very pleased with the productivity and pace of the program and are excited to continue drilling out the lower areas of the deposit, as well as the down-plunge extension.
"Assays are pending on several holes and we look forward to delivering consistent drill results over the coming months."
Last month, Fury said it aims to explore the Percival trend in the James Bay region of Quebec this summer, which sits 14 kilometers (km) east of the Eau Claire deposit.
A discovery was made in the area in 2018, including a drill assay of 78.5m at 1.46 g/t gold, and the company reckons the trend is home to a second style of mineralization at Eau Claire, which has largely been underexplored.
This year, Fury also plans to carry out an extensive biogeochemistry program across the Eau Claire property in a bid to develop new drill targets.
Sitting in around 113,00 hectares in James Bay, Eau Claire boasts 853,000 ounces at a high grade of 6.18 g/t gold in the measured and indicated (M&I) category.
A preliminary economic assessment (PEA) in 2018 showed an after-tax net present value (NPV) of C$397 million at a gold price of US$1,500 and total capital expenditure of US$283 million.
Fury is focused on three prolific mining regions in Canada and aims to advance its multi-million-ounce gold platform.
Contact the author at giles@proactiveinvestors.com