American Eagle Gold Corp (CVE:AE) said it has identified potential Carlin-type drill targets at its Golden Gate property that are closer to the surface than initially believed.
These new targets were discovered through the Controlled Source Audio Magnetotelluric (CSAMT) survey that was completed in May.
The Nevada-based Golden Gate property is located on the Cortez Trend, which hosts three large Carlin-type gold deposits operated by Barrick Gold Corp (NYSE:GOLD) (TSE:ABX) (FRA:ABR) and Newmont Corporation's (NYSE:NEM) (TSE:NGT) joint venture, Nevada Gold Mines.
READ: American Eagle Gold completes acquisition of Garden Gate Pass property in Nevada
American Eagle is currently in the process of conducting a 2D seismic survey at Golden Gate, which will be combined with the data from the CSAMT to further refine its drill program in the fall.
According to the company, 2D seismic surveys are widely used in the oil and gas industry to delineate folding and low-angle structures, which are undercover. The survey will be a key component to understanding the deposit structure, allowing American Eagle Gold to delineate higher probability targets.
Moving forward, the gold explorer plans to file a notice of intent for drilling in early August, with permitting expected to be received in early September. A drill contractor will be hired to complete the drilling campaign.
Future exploration will focus on defining drill targets by analyzing the relationship between the productive structures, geochemical anomalism and possible geophysical signature of buried Carlin-type deposits.
In late June, American Eagle entered a lease with an option to purchase agreement with Pyramid Lake for the Garden Gate property. The move significantly expanded American Eagle’s land package in the Cortez Trend.
The deal will see American Eagle acquire Pyramid Lake's interest in Garden Gate in exchange for a cash payment of $25,000 and the issuance of 200,000 common shares of American Eagle Gold.
There is also a 3% net smelter royalty on production from Garden Gate, with American Eagle Gold having the right to buy back 1.5% at the time of a production decision for $1 million.
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