Last week Osprey Gold reported drill results from its summer 2017 exploration at its Goldenville Project in Nova Scotia. All along Osprey’s plan has been to delineate widely disseminated lower grade gold mineralization (0.5-1.5 grams/tonne Au) interspersed by high grade gold quartz veins throughout its Nova Scotia gold projects. If the gold is disseminated across a large enough area, then even at an average grade of 0.5 g/t Au the mineralization could be amenable to a possible future operation.
The latest assays reported from Goldenville have delivered what the company was looking for in terms of showing mineralization within the wall rocks in certain areas along with several nice high-grade hits (98.29 g/t Au over 0.7 meters). Osprey President Cooper Quinn was also particularly pleased with hole G17-14 which intersected 52.00 g/t gold over 0.70, within 6.30 m of 6.22 g/t gold; the area to the east of hole G17-14 is open along strike for an additional 750 meters (circled in black below):
The drill results from Goldenville are encouraging and give Osprey a multitude of open targets and zones that warrant follow up drilling and testing for further expansion in 2018.
The Mitchell Lake zone saw three holes, and less than 500 meters of drilling during the 2017 campaign, however holes released at the beginning of March indicate this area has plenty of potential. Osprey hit multiple mineralized intercepts in each hole along 150 meters of strike length. Gold grades aren’t the typical high grade mineralization mined historically in Nova Scotia, but zones up to 30.5 meters, ranging from 0.4 g/t to 1.02 g/t Au are certainly encouraging- there were also a few high grade hits in more typical quartz veins: up to 9.26 g/t Au.
At Osprey’s current market cap (~C$4.1 million based upon a C$.09 share price), the company isn’t being given much credit (if any) for much of its project portfolio including the Mitchell Lake extension to the Goldenville property, and its Caribou Property. Mitchell Lake Zone is located within the Goldenville property but is about 3.5 kilometers to the west of the main Goldenville resource area. The company believes its drilling from the 2017 exploration program at Mitchell Lake is significant from a disseminated mineralization standpoint.
Map of Mitchell Lake Zone with 3 holes from 2017 exploration program in green:
Because Osprey has other worthy projects within its portfolio, while management is preparing for its next program at the Goldenville Main zone, and Mitchell Lake, the company can keep advancing its other projects. At Caribou, Osprey has multiple targets, including disseminated mineralization targets situated very near surface identified through previous work completed at Caribou but never systematically followed up – this is a project with past high-grade production, a historic resource of just under 100,000 ounces of gold, (non-compliant) and located roughly 8 kilometers from Atlantic Gold’s Touquoy mill which is now in its first full quarter of commercial production.
2018 is set to be a critical year for Osprey as the company strives to prove up its disseminated gold mineralization theories at its Nova Scotia gold projects. From an investor standpoint I believe that there is compelling value in Osprey shares at current levels, and significant potential upside.
Also worth noting is Atlantic Gold’s new Life of Mine study, greatly increasing their production profile, and including a new mill and concentrator at Cochrane Hill, in relatively close proximity to Goldenville (17km by paved road). When you build a mine one of the first things you do is try to figure out how to make that mine last longer, and Osprey’s projects offer a simple way for Atlantic Gold’s Touquoy Gold Project to last longer.
Osprey Gold (Daily
Strong support near C$.085-C$.09 with next major resistance near C$.18 (also closely correlates to the 200-day moving average) – it wouldn’t take much in terms of exploration success to see OS shares double from current levels.
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