In the heart of the prolific Chibougamau Mining District located in Quebec (a district that has generated over 6.7 million ounces of gold historically) lies a junior gold explorer with a large land package and a highly prospective gold project:
Genesis Metals is focused on its 100% owned Chevrier Gold Deposit in Quebec. The company recently completed re-sampling program that produced results which indicated there is ample potential for upgrading the grade of the 300,000 ounce (2.0 g/t Au) Main Zone at Chevrier. In addition, the deposit is open to the north and at depth. Last week Genesis outlined how it plans to proceed during the first quarter of 2017 to optimize its next drill program:
1. Geological 3D modeling of the Main Zone to enable an understanding of controls on mineralization; this will allow more efficient targeting for further evaluation by drilling in Q2 of 2017.
2. Evaluation of six new priority targets arising from the compilation of all data for the entire Chevrier property.
3. Geophysical surveys are underway to better define potential drill targets within priority areas.
4. Met Chem has report a potential for expanding the South Zone with a report that states potentially another 8.5 to 9 million tonnes with roughly 2.0 grams per tonne. While it may be low grade this potential deposit has a strong probability to increase the size of the deposit
5. Dependent upon the results of geophysical surveys, geological mapping and sampling of the new target areas, a commitment to drill test ranked targets.
Genesis then plans to conduct a drill program starting Q2 2017 with the intention of drilling extensions of the Main Zone at Chevrier:
Another attractive aspect of Chevrier is that the Main Zone is only 2-3% of the entire property package which means there is substantial potential for exploration of other high priority targets throughout the rest of the property. Genesis is committed to delineating an economic deposit at Chevrier which means that it will be important to expand the size of the deposit.
The net result of the 2016 trenching program and 6 new identified targets at Chevrier is that there are additional structures on this property that will need to be tested in the new year. This gives Genesis potential for new discoveries at Chevrier. Additionally Genesis will be looking to upgrade both the Main Zone as well as the South Zone deposits. 2017 is set to be an exciting year for Genesis during which it has the potential to make some big steps towards moving Chevrier up to an economic gold resource.
The South Zone at Chevrier also holds significant potential; Met-Chem estimated that the deposit had a potential for between 8.5 and 9.0 million tonnes at 1.8 to 2.2 g/t gold,however, they stated that the zone didn’t come up to 43-101 standards due to a lack of density of information.
“In Met-Chem’s opinion, the Chevrier model is adequate for the present estimate of a potential tonnage and grade of mineralized material in the South Chevrier deposit.
Met-Chem estimates that the Chevrier South deposit contains a potential between 8.5 and 9.0 million tonnes of mineralized material grading 1.8 to 2.2 g/t Au. No resources were estimated for the Chevrier South deposit, since Met-Chem believes the density of information is not sufficient to delineate a mineral resource.”
The Chevrier South deposit has been investigated by only 19 drill holes. Met-Chem recommended consistent re-logging and re-assaying of all drill core plus assaying of core that was not sampled.
During the first half of 2017 Genesis is planning a substantial Phase 1 drill program (5,000-10,000 meters). Genesis is also committed to putting together a complete geological model of the Chevrier Main Zone, as well as the east zone and the south zone in order to better understand the controls on the mineralization. The main objective is to be able to present a package to a larger company (potential partner) which illustrates an easy path to production.
With a solid resource foundation already in place (~300,000 ounces at ~2 grams per tonne in the Main Zone) Genesis is in an exciting position to potentially increase the size (and potentially the grade) of the Chevrier Deposit during 2017. This potential is what makes Genesis an attractive speculation for investors, a rising gold price and improving sentiment on the junior gold mining sector are simply icing on the cake.
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