Margaux Resources (TSX-V:MRL, OTCQB: MARFF) is primarily known as a zinc-lead junior explorer, however, MRL’s Jersey-Emerald Property (2010 NI 43-101 resource estimate showed indicated resource of 1.90 Mt @ 1.96% Pb, 4.1% Zn − Inferred resource of 4.98 Mt @ 1.95% Pb, 3.37% Zn using a cut-off grade of 3.5% Pb+Zn) has the potential to host a considerable amount of gold which was never seriously contemplated before. Historically, Jersey-Emerald was a zinc/lead mine; the mill at Jersey-Emerald, operated in the 1950s, was not designed to recover gold nor was the source material for the mill analyzed for gold.
There is a stream that drains the Jersey Property which the company knew had previously returned high grades of gold in silt samples. So the company went back and conducted a silt sampling program on the stream during first half of 2017 in order to evaluate the gold skarn potential at the southern portion of the Jersey Property. Margaux Resources President & CEO Tyler Rice offered the following comments regarding the stream sediment samples at Jersey and the potential which the gold mineralization at this property offers:
“Our recent silt samples from the Jersey confirm that there is significant gold coming out of the Jersey system, and this supports what we’ve seen in previous drilling (like our 2014 drill hole that ran 25 g/t Au over 10 m). We’ve done detailed studies on samples of the gold-bearing skarn from Jersey and we now have a good understanding of how the gold occurs and just how similar this is to the Kinross’ Buckhorn gold skarn in Washington. Our goal now is to figure out where there’s a large enough concentration of gold on Jersey that it could be economic. We’ll continue to apply a disciplined approach to unraveling the geology and defining targets for follow-up drilling later this summer.”
During Margaux’s 2017 silt sampling program there were 22 stream sediment samples collected. Samples were standard stream sediment samples (not panned/screen concentrates), collected at intervals along creeks in this area. Of the 22 samples collected, 14 returned highly anomalous results, and 3 returned exceptionally high gold values including 18.1, 8.38, and 3.71 g/t Au.
The results from the stream sediment sampling confirms that there is some very interesting potential for gold mineralization which exists in this skarn system (skarn altered sediments which are associated with quartz-carbonate veins which often host gold). The source of the gold could either be: 1. Mine waste (tailings) OR 2. A bedrock source of gold mineralization – Margaux is committed to following up on this compelling opportunity and MRL already has a team in the field following up to effectively identify drill targets. Margaux is waiting for final permit approval and the plan is to drill into this skarn system at Jersey later this summer.
Margaux also recently completed a 6-hole 1,121 metre phase 1 diamond drill program at Jersey targeting the King Alfred Gold Zone; analytical results from 2 of the 6 holes have been received and the second hole, JE17-02, returned a broad interval of elevated gold validating the mineralizing model and confirmed the significant gold potential which this zone offers. Analytical results are pending for the outstanding 4 drill holes. Past drilling at King Alfred has returned significant gold results including 24.98 g/t Au over 10.2 m in an area beyond the limits of any historic mining on the property.
Another attractive aspect of the Margaux story is the high-grade zinc target (“Big Zinc”) in the northern part of MRL’s Jackpot Property which consists of an extensive 600m x 300m boulder train of high-grade zinc-oxide float boulders weighing up to 45 kilograms and is coincident with a strong zinc soil anomaly (refer to Margaux’s news release dated March 28, 2017 for further details). Grab samples from the boulder train include two samples which returned exceptionally high zinc values of more than 50% zinc.
Big Zinc is one of Margaux’s top priorities during its 2017 exploration program. Historical drilling was conducted by a previous operator in 2007 which were neither logged nor sampled; seven holes were drilled in the Big Zinc area in 2007 by this previous operator which Margaux has recovered. MRL has now logged and sampled the historic drill core to assist in the drill targeting – results from additional surface and historic drill core samples are pending.
Margaux is in the midst of an exciting and highly prospective exploration program at its Kootenay Arc projects and there continue to be multiple potential synergies with surrounding infrastructure and projects including Kinross’ Buckhorn gold mill in Washington State which is hungry for ore:
“We know from our industry-contacts that Kinross’ gold mill in Washington is hungry for ore, that shipping ore across the border is relatively straightforward, and that there’s a fleet of trucks standing idle that had been hauling the Buckhorn ore to the Kinross mill. We’re confident that transporting the ore to an existing mill will be possible, once we have a resource defined and we have a production decision.” Tyler Rice, President & CEO, Margaux Resources
One thing I’ve noticed with Margaux is that the company moves fast and under the leadership of Tyler Rice MRL has an ambitious set of objectives over the next 6-12 months which include:
Since reaching a peak of C$.50/share in February MRL shares have slowly been cut in half in thin volume trading. There could be a tremendous opportunity for investors to take advantage of this 50% off sale just as the summer doldrums wind down while MRL is ramping up its exploration efforts:
The C$.25 level has proven to be strong support for MRL and a C$12 million market cap does not fully appreciate the potential which MRL’s impressive portfolio of projects potentially contains.
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Margaux Resources is a high-risk venture stock and not suitable for most investors. Consult Margaux Resources’ SEDAR profile for important risk disclosures.
EnergyandGold has been compensated to cover Margaux Resources and so some information may be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
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