Corporate Update with Contact Gold and their Recent Drill Results from Green Springs
Trevor [00:00:01] Hey everybody, welcome to Mining Stock Daily. This is Trevor Hall and you are joining us for another corporate update with our good friend, Matthew Lennox-King. He's the CEO and president of Contact Gold. Contact Gold trades on the TSX Venture Exchange with the symbol C and also on the OTC market with CGOL. Matt, good to speak with you once again. We're going to cover a couple things in response to the drilling results you put out of Green Springs yesterday. But let's chat real quick about the background of Green Springs and what you guys have done in the last few months since taking on that project.
Matthew Lennox-King [00:00:37] Absolutely. And thanks for having me. Always a pleasure to chat. So on Green Springs, this is the project that we myself and the team have followed for a number of years. It's a past producing heap leach operation at the southern end of the Battle Mountain Cortez Trend, quite close to Fiore's Pan Mine and not too far away from Bald Mountain, which is obviously being mined by Kinross currently. So we bought the project in in July of this year really for a small number of shares and minimal cash payments. And really what attracted us to the project was the high grade near surface oxide profile. So we're talking grades in historic drilling anywhere from a grand five grams over 30 to 40 meters in today's day and age. That is high grade. Even if you're not talking about an oxide deposit or oxide system.
Trevor [00:01:37] Now we're going to talk about one of those historic drill holes here in just a second. At the Echo zone. But I do want to chat real quick about the step out north to your drill target called Tango, which was mentioned in the mentioned in the news release. And please tell me if this is drilling that hasn't been done yet. And so it's still active as well. Not what I can tell of planning. And the drill is not going yet, but it should be coming down the pipeline. But what do you see at Tango Up North that's really got your attention here?
Matthew Lennox-King [00:02:07] Absolutely. So for Carlin type deposits in this setting, this part in Nevada, it's really all about stratigraphy. So at Green Springs, we have two contacts that are especially productive for gold. One is called the Chainman and Joanna. And that's where we see that historic production at Green Springs coming from. The other one is called the Pilot/Guilmette Contact. And that's where the drill holes that were released yesterday and last week from the Alpha Zone are hosted. And what we really like about Tango is you have a large area of that contact exposed. So Pilot/Guilmette, you've got a very large golden soil footprint. So anomalous, almost golden soil footprint measuring at least 500 meters along the long axis and about 200 meters across. We've done rock sampling. We don't have the results back yet. But essentially you have a very large undrilled target never been drilled before. That looks very similar to what we've just been drilling at Alpha, where you're looking at up to one point three or four grams over 30 meters. And one point six over thirtyfive meters. So we're especially excited really, because it hasn't been drilled. It's a brand new target. And we think that's very, very exciting.
Trevor [00:03:39] And when do you expect to get drills mobilized to the target and start drilling?
Matthew Lennox-King [00:03:45] Yeah, I think a reasonable timeframe, given that we're dealing with weather and the like, would be late spring, early summer of this year. Now, one of the attractive things about Green Spring is we have all of our necessary permits in hand. So we have we have an approved a plan of operations that gives us over 70 acres of access or disturbance to complete drilling. So essentially, it's not it's a matter of building roads up there and start getting to work.
Trevor [00:04:16] Okay. Oh, we did mention the historical drilling that has been taken has taken place on the project and that one of the numbers that was popped up was 39 meters at five point zero five grams per ton gold at the Echo zone. And it sounds like you do have a drill results still pending in the assay in the lab right now and you're awaiting that results in. Let me know when we should expect to hear back from that as well. Sounds like it should be pretty soon. And you know, if there's any idea of what you saw from there, you know, without giving away too much that you can is exchanging as much as you can.
Matthew Lennox-King [00:04:56] Yeah, of course. So I think your timeframe is about right. I would expect at least the first of the holes that we drilled, that echo should be out next week or the week after. And those holes were designed, as you know, we don't like to go in and necessarily twin holes. We'd like to get new information. So both of those drill holes are offsets, probably 40 meters and 70 meters, respectively. That's that five gram intercept. And from the I guess, a geologic point of view, what we saw down hole, we really saw what we expected to see. So we saw Highly altered silicified decalcified Chainman and Joanna limestones, essentially where we expected them. So we're starting to get some reasonable footprint on that higher grade zone and we think we understand it quite well. You know, that said, the real prize, we think high grade oxide is always a great prize. But the real prize will be in drilling in 2020, where we will have the ability to drill a bit deeper where we have that second host horizon. So the Pilot/Guilmette contact lurking not too much deeper than where we stopped drilling this year.
Trevor [00:06:16] Matt, we just have a few minutes left for a conversation. There's two things I really want to chat about. Before I let you go. Last time you and I talked on the show, we was at the Beaver Creek Precious Metals Summit. And it seems like at that time the market had lost favor in some of these lower grade oxide gold projects. As the CEO of Contact Gold that really does a lot of work with oxide gold projects. Do you feel like the market is maybe turned a little bit and looked at these projects as a better opportunity for investment because there's less capital to create some sort of cash flow?
Matthew Lennox-King [00:06:54] I think you're probably right. I think for me, what do they give? And I think that likely change people's views on these oxide gold projects is when you look at SSR mining financials and specifically from there, Marigold mine in Nevada, which is very low grade. Most of them. But the average mining grades from last year would be less than half a gram, but it still makes a great return for them. So I think that some people I mean, Ross Beaty would be one day they look at the economics, they don't look at the grade. And I think more and more people might be doing that or seem to be doing that grade. Certainly important, but it's not the be all and end all. And from our point of view, yeah, I mean, we just need to look at our share price performance. Sort of an end of 2019, low of about 14 cents to where we are currently trading at 18 to half cents. That's really being generated by oxide gold results and very nice ones at that.
Trevor [00:07:57] Well, I think if you have some experience in reading these assay results and anybody familiar with oxide project would realize that one point six five grams per ton gold is obviously very good return on those assays. But when you have that historical assay there, over five grams per tonne gold. I mean, that's exceptional, right? The other the other question I want to ask you real quick, Matt, is that the volumes with the ticker symbol has been up over the last two weeks. I know I am a happy shareholder. I have recently bought back in a couple weeks ago and happy I did so based on the activity Green Springs. But yeah. What are you seeing as far as trading volumes and sentiment for content gold right now?
Matthew Lennox-King [00:08:43] Yeah, I would say that the I think the volumes have been great. What are we? Three hundred and sixty thousand shares so far today. That's about just under 10 times our average daily volume after the two and a bit where almost three years that the company's been around. I say that's extremely encouraging. I mean, the people want to own the stock. People are definitely active in the stock right now. And as far as feedback, I think people have been very impressed with Green Springs results. It's certainly landed up on a lot more people's radar, both on the investment side and the strategic side. And I think people understand that there is a really high quality opportunity there at Green Spring.
[00:09:29] Matt, thank you so much for your time. Look forward to catching up with you probably next week while I'm in Vancouver. But until then, have yourself a safe week and weekend there in Vancouver with the snow. And we look forward to catching up with you next week.
[00:09:42] That sounds great, Trevor. Thanks again, as always.