American Eagle Gold (TSX-V:AE) Corp said its maiden drill program at Golden Gate in Nevada is on schedule to begin in the fall after it defined potential drill targets and filed Notices of Intent with the Bureau of Land Management to drill at the project.
The company said the drill program will focus on intersecting lower plate rocks and discovering the buried Carlin-type deposits that it believes exist on the property.
READ: American Eagle Gold identifies near surface gold at Golden Gate project in Nevada
A 2D seismic survey over the Golden Gate project was completed in July, and the company said the data for seismic lines have been processed and interpreted.
Reflectance profiles on the northern line show evidence of low-angle (thrust) west-dipping structures with associated hanging-wall folding, a structural setting typical of Carlin-type systems in the Cortez district.
In addition, it said strong deformation is apparent to at least 700 metres depth in the seismic profile.
“These are promising results, particularly when combined with the Golden Gates recently completed controlled source audio-frequency magnetotelluric results (CSAMT), demonstrating potential for lower-plate carbonate rocks as close to 350m to surface,” American Eagle said in a statement.
The company noted that CRUX Investor recently published an article, highlighting the prospective opportunity at Golden Gate and why its value proposition is intriguing compared to other miners in the area. The first key is the geologist in charge of finding the deposit, Mark Bradley, a renowned expert in underground Carlin Type deposits. The second is the proximity of the property next door and on-trend with Barrick's Cortez Hills and Goldrush mines, it added.
Golden Gate, American Eagle’s flagship property, is strategically situated on the Cortez Trend, which hosts three large Carlin-type gold deposits operated by Barrick and Newmont's Joint Venture, Nevada Gold Mines (Pipeline, Cortez Hills and Goldrush).
The property is located 10 kilometres (km) south of Cortez Hills and 5 km south of Goldrush and shows many of the same geological characteristics as at the two deposit areas.
Contact the author at stephen.gunnion@proactiveinvestors.com