AuTECO Minerals Ltd (ASX:AUT, OTC:MNXMF) has intersected a 5.5-metre gold hit, grading at 18 g/t, from 44.9 metres downhole during drilling at the Pickle Crow Gold Project in Ontario, Canada – and the market has rewarded the company's stocks with an 8.11% boost today.
The precious metals explorer says the “outstanding” result highlights the potential for rapid, substantial growth away from the gold camp’s existing 2.23-million-ounce resource.
More broadly, AuTECO sees the gold hit as validation of its two-pronged exploration strategy, which involves growing the gold resource in parallel with regional target testing.
The company plans to drill several regional targets in the coming months on its journey to develop Pickle Crow.
Taking Pickle Crow to the next level
Commenting on the latest gold find, AuTECO executive chair Ray Shorrocks said: “This exceptional result shows how our strategy to drill numerous similar regional targets over coming months stands to take Pickle Crow to the next level.
“We are now starting to uncover what we see as a significant mineral district, which will grow much further than the currently defined 2.2-million-ounce Pickle Crow gold deposit.
“AuTECO is fully funded to continue the exploration and growth campaign and we expect to complete another 50,000 metres of drilling by early 2023.”
Honing in on new discovery
AuTECO’s drill program has confirmed a previously undrilled mineralised banded iron formation at the Talia prospect.
The Talia discovery, where the 18 g/t gold hit was found, is 1 kilometre away from the current defined resource area at Pickle Crow.
What’s more, mineralisation at the discovery is shallow and remains open in all directions, while further results are pending.
Regional drilling
AuTECO plans to drill multiple regional targets as part of its 50,000-metre drill program.
All of the targets are within 20 kilometres of the historical Pickle Crow mining centre, where 1.5 million gold ounces — grading at 16.1 g/t — have been mined in the past.
The mining centre is also home to the existing 2.2-million-ounce, 7.8 g/t gold resource.
Moving ahead, these regional targets are either conceptual in nature and being drilled for the first time, or they’re targets that endured limited historical drilling a long time ago.
Fast forward to today, and AuTECO’s regional exploration campaign has returned:
- 5.4 metres at 2.6 g/t gold from 94.4 metres;
- 2.8 metres at 4.3 g/t from 60 metres;
- 0.9 metres at 14.7 g/t from 262.6 metres; and
- 4.1 metres at 3.4 g/t from 226.3 metres.
Back in May, the explorer reported more regional gold hits, including:
- 2.1 metres at 92.0 g/t gold from 147.8 metres;
- 0.7 metres at 26.2 g/t from 116.5 metres; and
- 3.5 metres at 7.6 g/t from 126.9 metres.
As it advances the exploration campaign, AuTECO remains well funded to complete its activities. The precious metals explorer had $24.5 million in the bank at the end of the March quarter.