Blog - Big Gold Discovery in the Making?

Big Gold Discovery in the Making?

Aug 1, 2019

The Golden Triangle has long been one of the most prominent mineral exploration districts in the world. Spurred by improving market conditions and material discoveries, exploration activity in the area has been sharply increasing in recent years. A big Gold discovery in this region has previously led to incredible gains like Golden Ridge Resources ( GLDN ) gaining 271% in 2 months in 2018 and GT Gold GTT gaining 646% in 3 months in 2017.

The company just completed a $1.15M private placement and is beginning a significant exploration program this month that can take this company into the spotlight and potentially make it the next one on the list.

A late 2017 surface sampling program confirmed mineralization of 101 g/t gold over 7.5m and 245g/t (7.1 oz/t) gold over 1.5m confirming the width and grade of the zone they are now exploring demonstrating the potential for new discoveries on their property.

Despite the major production in the Golden Triangle only the tip of the surface has been scratched. The retreat of glaciers caused by Global Warming has revealed rocks never before seen. Geologists have been awaiting the melting of Glaciers over Sky Gold’s property for over 25 years and this summer the company will be conducting drilling on brand new targets that have been previously unreachable.

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SKY GOLD CORP.

TSXV:SKYG

OTC:SRKZF

Shares Issued: 115,967,303

Market Cap: $4.7M CAD

Sky Gold has been able to assemble some very favorable mining claims in the Golden Triangle. The width and high grade of the The Clone has similarities to other projects that have turned into very big mines and the 10,688 hectares means that there are many unexplored areas that have yet to be drilled.

To date the company’s exploration efforts have unearthed some unusually high grade gold values. A surface sampling program returned assays of 101g/t gold over 7.5 meters and 245 g/t of 7.1oz.t over 1.5 meters. According to Mining.com, at current gold prices, a grade of 5 g/t + can be considered economically viable for bulk tonnage mining. Previously on the Clone property, a 2011 large bulk sample averaged 137.1 g/t Au (or 4.0 oz/ton).

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2019 Exploration Plans

The Company is scheduled to start their maiden diamond drill program on the Clone property.

Priority drill targets include:

Main “H” Zone

Test extensions and trends along strike and down-dip, and plunge, based on 3D modeling of this zone, where re-sampling by the Company (quartering, cutting) the historic drill core returned values of 2.1 m of 32.0 g/t Au from 12.9 m in hole CL95-04, 4.0 m of 30.3 g/t Au from 16 m in hole CL95-11, and 3.0 m of 26.6 g/t Au from 38.0 m in hole CL95-11.

Port 19 and Treble Zones

Located approximately 4.4 km west-north-west of the Main “H” Zone, this target was prospected and geologically mapped in summer 2018 with significant results obtained in both soil and rock (grab) sampling.

There has been considerable glacial abatement over the showing since the 1990’s. Soil sampling results including five samples with greater than 1 g/t Au (8.33 g/t, 6.68 g/t, 3.7 g/t, 1.66 g/t, 1.61 g/t). The +200 ppb Au soil anomaly over the Port 19 and Treble showings is 2.5 times the size of the Clone Main Zone soil anomaly.

The Gossan Zone

Located about 1.3 kms west of the Main “H”, a high priority target is the Gossan Zone, where rock geochemistry (rock grab samples) have returned strong gold values, up to 37 g/t Au (sampling 1996, ARIS 23878). The mineralization at the Gossan Zone is very similar to the Main “H” Zone and has never been drilled.

Bottom Line

This project is still new and very undervalued as the stock trades at just a fraction of other Golden Triangle Explorers like Golden Ridge Resources and Aben Resources. Getting some exposure to Sky Gold has the potential for significant returns but also has little downside as the stock currently trades at a low valuation.

Due to the potential discovery that may be looming this seems to be a great risk/reward gold especially given the very large historical samples. Gold is above $1,400 for first time in years and junior explorers tend to do better than their larger peers in a bull market. This marco factor coupled with positive results can certainly add some more excitement and many millions to the company’s market capitalization in just a few months.

Original Link: https://smartmoneygains.com/sector-watch/big-gold-discovery-in-the-making/