Rockridge Resources (TSX-V:ROCK) struck gold with its maiden drill program at the Raney Gold Project near Timmins, Ontario. ROCK stepped out and drilled 6.0 meters of 28.0 grams/tonne gold in hole RN-20-06:
Hole RN 20-06 returned 27.98 g/t Au over 6.0 m from 125.0 m to 131.0 m, including 2.93 g/t Au over 1.0 m from 125.0 m to 126.0 m, 71.28 g/t Au over 2.3 m from 128.7 m to 131.0 m, and 326 g/t Au over 0.5 m from 130.5 m to 131.0 m
This is an important intercept because it contains nearly 3 meters of bonanza grade gold in a previously undrilled area of Raney. It also happens to be 75 meters west of a 2010 drill hole that intersected 6.5 grams/tonne gold over 8 meters. Rockridge believes they have a broad alteration corridor at Raney, with gold bearing quartz veins present throughout. The best grades occur where the vein density increases and the veins have a variety of orientations based on the company’s small data set to date.
Raney is located 35 kilometers east of Newmont Goldcorp’s Borden Mine and 75 kilometers west of IAMGOLD’s Cote Development Project. The property has excellent access and infrastructure, and is accessible by paved and forestry roads.
The broad alteration zone (structural corridor) that hosts the mineralization intersected in hole RN 20-06 is open for expansion. Historic mapping and surface sampling data show that the alteration zone may extend over several hundred meters, with no drilling completed over a large extent of this corridor. A notable disruption in the airborne magnetic data approximately 2 km west of the current drilling, and in line with the projected structural corridor, provides a compelling target area for future exploration.
Rockridge CEO Grant Ewing offered the following comments:
“The Raney drilling program was completed in a very timely and cost-effective manner. The high grade intercept in hole six is highly encouraging, as is the fact that the broad alteration zone where the current drilling program was concentrated may extend for several hundred metres. No drilling has been conducted over a large extent of this corridor. The next steps regarding evaluation of the project will be determined following analysis of the complete assay results from the program.”
Rockridge has C$500,000 in cash and no debt. It’s important to note that all-in drilling costs came in at less than C$200 per meter at Raney, and Rockridge came in under budget on this drill program. I have a feeling that ROCK will look to expand its claim package after this early success at Raney. Once the company has fully digested and interpreted the complete assay results from this initial drill program at Raney, I expect that a follow-up program will be planned and then initiated.
ROCK shares are significantly undervalued heading into this news, and I expect a significant rerating potentially back near the previous highs above C$.30:
Disclosure: Author owns ROCK.V shares at the time of publishing and may choose to buy or sell at any time without notice.
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