“The exceptional continuity has almost desensitized the market to world-class drill results over the last six months,” Gaspar said in a note. “The asset’s potential remains a key value driver in our view (and key for M&A).”
Hole V-24-105 returned 467 metres grading 1.12 grams gold from 3.4 metres depth, including 154 metres at 2.07 grams gold, Snowline said. Hole V-24-111 cut 403.6 metres grading 1.05 grams gold from 3.3 metres depth, including 103 metres at 1.9 grams gold.
“It is encouraging to see how well the Valley gold deposit holds up to the scrutiny of additional drilling, with highlight holes consistently appearing as we fill in the blanks,” Snowline CEO Scott Berdahl said in a release.
“Each round of results has brought large intervals with strong gold grades. We are gaining confidence and pushing the boundaries of our understanding of this unique and continuous near-surface gold deposit.”
$610m market cap
Snowline shares traded for C$5.56 apiece on Thursday morning in Toronto, giving the company a market cap of C$881.4 million ($610m). Its shares traded in a 52-week range of C$3.88 to C$6.39.
The results will help inform an updated resource estimate for Valley expected in a few months, Snowline said. It released an initial resource last June that showed Valley is much larger and higher grade than most other projects in the region.
Gaspar said Snowline’s results cut risk at Valley by closing gaps of more than 100 metres between holes, such as the “remarkable” 467-metre-wide intercept in hole V-24-105.
Thursday’s results are even shallower than the similarly high hits Snowline reported just over one month ago at Valley.
Aurelius prospects
The company also reported anomalous gold findings at its Aurelius target, just north of Valley, from initial drilling there last year.
Highlight hole AU-24-004 returned 1.5 metres grading 4.43 grams gold from 59 metres depth, including the same width at 2.59 grams gold from 85 metres depth.
“The hunt will continue, at Aurelius and at other targets, building on our expanding data and knowledge bases.” Berdahl said. “We seek to establish a new gold district in the fertile and proven Selwyn Basin rocks around Valley.”
