1911 Gold Corp (TSX-V:AUMB, OTCQB:AUMBF, FRA:2KY) reported new underground drilling results from its True North project, with CEO Shaun Heinrichs pointing to resource growth, an upcoming resource update and an accelerating drilling program as key developments for the company.
Heinrichs told Proactive that the latest program targeted an area accessible from Level 16 that was particularly relevant because it fell within the first two years of planned production.
He said the drilling indicated that the targeted mineralization was not a discrete zone and showed a connection with a deeper, large high-grade area around levels 710 and 711. According to Heinrichs, the results were beginning to fill a large gap between the areas with increased confidence.
The holes were largely designed as resource extensions outside the existing mineral resource estimate rather than simply confirming existing resources. Heinrichs said the program had confirmed extensions to the zones while producing grades similar to those modelled in the existing resource.
He added that the mineralization appeared to "extend and maintain grade at depth", describing the outcome as exciting for the company.
Reconciliation with the existing resource has also been encouraging, according to Heinrichs. "I'd say 80% of what we've been drilling has been right on with what we're hoping to see, and sometimes a little better related to the resource that we already have in place."
A key upcoming catalyst is the planned resource update, which Heinrichs said the company was targeting for late October or early November. The latest results will be incorporated, alongside potentially further drilling results expected over the coming weeks.
Drilling activity itself is also set to increase. Heinrichs said three rigs continued to operate underground, predominantly undertaking infill and delineation work. With services being re-established at Level 26, 1911 Gold expects to be able to deploy another one or two rigs there during the fourth quarter, potentially taking the underground fleet to five rigs.
A surface rig is also expected to return for programs on the mine lease and regional targets, including Rockland.
Heinrichs said drilling would remain central as the company worked to grow and de-risk the project and move closer to its planned production start-up.
