Gold Terra Resource Corp., a junior mine exploration company, began a 10,000 metre drilling program at its Yellowknife City Gold Project (YCG) site on Monday, according to a news release.
The program, set to be completed in two phases, begins on the Crestaurum deposit about 12 kilometres north of Yellowknife. In the first phase Gold Terra will drill seven holes, a total of 3,700 metres, across one km of the deposit. They are set to drill and test deposits at a 400 metre depth – double the 200 metre depth that has previously been drilled. The company said it plans to test the Crestaurum deposit even deeper, up to 600 metres in depth, later in the program.
The Crestaurum deposit is located on the same mineralized system as the Con and Giant mines, which have previously produced a combined 14 million ounces of gold, according to the news release.
Of the deposit’s high grade gold potential, David Suda, Gold Terra’s President and CEO, said the company is “drilling in areas that in the past have proven to be exciting but have never been tested before.”
The drilling will also test the Daigle fault offset – a previouslt untested section of rock displaced from rock-mass movement. The company suspects there may still be resources to discover.
After drilling in the Crestaurum deposit, Gold Terra plans to move on to the Campbell Shear structure in largely unexplored territories both north and south of Giant and Con mines in phase two. The Campbell Shear portion of the program is set to begin this fall and should be completed by early winter, Suda said.
Gold Terra, which received $86,000 in grant funds from the GNWT, is spending approximately $3 million in the second half of 2020 on drilling and exploration at the YCG project.
The YCG project encompasses about 790 square km of land on the Yellowknife Greenstone belt. By the end of 2020, the company plans to update its mineral resource estimate for the YCG project. According to Gold Terra, the project currently holds a NI 43-101 inferred mineral resource estimate of 735,000 ounces of gold.
With gold prices recently hitting historic highs, the project’s potential could be even more significant in the company’s stated objective of “re-establishing Yellowknife as one of the premier gold mining districts in Canada.”