Sanatana Resources Inc (CVE:STA) (OTCMKTS:SADMF) reported the final assay results from 213 channel samples collected at the North Shaft prospect on the company’s Gold Rush project near Timmins, Ontario.
Results included 4.6 grams per tonne (g/t) gold over 1.7 metres (m), consisting of two adjacent and continuous channel samples of 6.35 g/t gold over 0.75m and 3.27 g/t over 0.93m.
“The North Shaft prospect is just one of at least eight mineralized prospect zones on the Gold Rush project,” Sanatana Resources President Buddy Doyle said in a statement.
READ: Sanatana Resources set to start drilling in Timmins in March this year
Doyle added: “With less than 7% of the Gold Rush properties exposed in outcrop, we are pleased to see broad zones of mineralization in these channel samples.”
The company noted that stripping uncovered two gold-bearing zones (Eastern zone and Western zones) at the North Shaft prospect, both of which it said are open along strike and may be more extensive.
It added that follow-up exploration is warranted.
Sanatana also said further work at North Shaft will include more ground geophysics and scout drilling below gold-bearing channel samples, where the zones intersect, and along strike.
Detail mapping of surface stripped areas is planned for this summer.
North Shaft is the first of eight known gold prospects on the property to be explored in detail by Sanatana.
Sanatana also announced that it has entered into a shares-for-debt agreement with an arm's length creditor to settle $70,000 of debt by the issuance of 350,000 Sanatana Resources common shares at a deemed price of $0.20 per share to the creditor.
The company said all shares issued in connection with the shares-for-debt settlement will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.
Sanatana Resources is a Vancouver-based explorer led by an experienced team focused on gold and copper in Canada and the Western Pacific.
The company's 2,200 hectare Gold Rush project lies near Timmins, Ontario and consists of two claim blocks. It is just 11 kilometres north-west of Pan American Silver’s Timmins West mine where over 750,000 ounces of gold have been produced to date.
Contact Sean at sean@proactiveinvestors.com