Blackrock Gold Corp (CVE:BRC) is making good progress with exploration on its Silver Cloud property in mineral-rich Nevada, it told shareholders on Monday.
The junior explorer received results from 829 soil samples that revealed two anomalies on the project that hold potential for a gold-silver vein system.
One of the areas showed a type of gravity anomaly, known as a low, that is consistent with the Silver Cloud area and Northwest Canyon target zones where miners Teck and the former Placer Dome drilled nearly 158 grams per ton gold of over five metres in the past.
Blackrock said it suspects the gravity lows are connected along an east-west vein system, and that other such anomalies exist on the property.
Another anomaly area in the middle of the Silver Cloud property contained mercury in soil that is also associated with a gravity low. Blackrock is planning additional field work to better understand its significance, the company said in a release.
"The new soil data shows the northeastern portion of the property has significant potential for another gold-silver vein system,” said Andrew Pollard, Blackrock’s CEO.
“The arsenic and mercury surface data combined with the gravity geophysical information highlights the approach and exploration model the Company is successfully using to generate new targets and re-interpret existing gold-silver mineralization.”
There are eight additional gravity lows that warrant follow up work, according to Pollard.
The company’s first priority will be to test the east-west vein system, drilling in the area where Teck and Placer Dome uncovered high-grade gold. Blackrock will follow up with field work to refine the anomaly.
Drill permits have been submitted for the Silver Cloud area, Blackrock told investors, and regulatory approvals are anticipated by mid-August with the aim to begin drilling by September.
Shares of Blackrock eased 3.1% to C$0.16 in Monday morning trading in Toronto.
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