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GGX Gold still seeing encouraging results from Gold Drop project in the Greenwood camp

Snapshot

The Vancouver-based group's flagship site is the high-grade, near-surface, Gold Drop property

GGX Gold Corp. -

Quick facts: GGX Gold Corp.

Price: 0.07 CAD

TSX-V:GGX
Market: TSX-V
Market Cap: $1.64 m
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  • Among the largest landholders in one of the most prolific mining camps in North America
  • Flagship Gold Drop project is near-surface high-grade gold
  • Experienced management

What GGX Gold does:

GGX Gold Corp (CVE:GGX) (OTCMKTS:GGXXF) is a metals junior explorer in one of the most prolific gold-copper camps in North America, namely the Greenwood Republic camp in mining- friendly British Columbia.

The Vancouver-based group's flagship site is the high grade, near surface, Gold Drop property, which was mined intermittently from 1919 to the 1980s.

Historical production amounted to 7,572 tonnes at an average grade of 5.2 grams per ton (g/t) of gold and 93.4 g/t of silver, with the majority of production coming before 1942.

GGX's attention has particularly focused at the COD vein on the property, which is high-grade and near-surface.

The northeast-southwest striking vein is traced by a series of shafts and pits for 1,500 metres (m) and reported to have a maximum width of 1.5m at surface. Drill assay highlights in 2018 included 129 grams per ton (g/t) gold and 1,154 g/t silver over 7.28m.

The firm also uncovered tellurium, which it says is rarer than rare earth elements, and used in solar panel technology, with assays including 823 g/t tellurium over 7.28m and 640 g/t tellurium over a 6.90m core length.

Ximen Mining (CVE:XIM) (OTCMKTS:XXMMF) did have an option on Gold Drop but sold it to GGX last year.

In September, GGX provided Ximen with a final payment of 600,000 shares valued at C$150,000 and a C$100,000 in cash, which along with meeting required exploration expenditures, completed its obligations to earn a 100% interest.

Ximen still retains a 2.5% net smelter return royalty (NSR) on the property, which GGX can buy down 1% of by paying C$1 million.

The wider Greenwood district was once home to 26 mines and the area has produced 1.4 million ounces of gold, 10 million ounces of silver and 0.7 billion pounds of copper, as well as lead and zinc.

GGX is revisiting the area and says it's bringing with it new and advanced exploration methods along with a new understanding of the geological model of the Greenwood camp.

How is it doing:

Recent news flow for GGX has been dominated by exploration results from Gold Drop. In October last year, the company said a number of holes had continued to confirm potentially economic mineralization at the COD vein.

Assays included an intersection of 0.40m at 35.6 g/t, 180 g/t silver and 251 g/t tellurium.

Meanwhile, in December, the group told investors that it had hit 235m of magnetite mineralization with a hole into the large, deep geophysical anomaly at the flagship project.

The anomaly was interpreted as a pipe-like structure measuring 1,834m by 1,377m and was identified by Earth Science Services of Ontario. Copper values averaged 249 (parts per million (ppm) copper in 38 of 62 samples that contained 100 ppm or greater copper, with values ranging from 102 to 837 ppm of copper. The highest copper value was for a 0.32m sample at 714.06m depth.

Notably, magnetite, said GGX, is commonly associated with skarn-type copper-gold deposits, which are important in the Greenwood Camp - the largest being the Phoenix and Motherlode deposits.

Phoenix has produced 28,341 kg of gold, 183,036 kg of silver and 235,693 tonnes of copper and the Motherlode produced 6,648 kg gold, 22,083 kg silver, and 34,918 tonnes of copper.

Overall last year, a total of 3,160m was drilled in 49 holes to test the COD and COD North veins. In January, this year, GGX said the last hole on the COD vein had encountered two quartz veined zones containing elevated gold contents.

Assays included 3.33 g/t of the yellow metal from an intersection of 0.44m and a depth of 128.62m.

GGX said last month that taken in the round, its exploration at Gold Drop in 2019 will inform its work in 2020.

Inflection points:

  • More exploration results
  • Acquisition of more ground

What the boss says:

In January this year, GGX president Barry Brown, on behalf of the board, updated on the large geophysical anomaly and the hole into it, which was drilled to a depth of 718.8 metres (2,358 feet).

"The geochemically elevated values for copper, zinc and iron are associated with calc-silicate altered rocks and magnetite mineralization observed in the drill core," he said.

"The calc-silicate alteration is developed locally, and the magnetite varies in intensity from veinlets to fine disseminations. This is interpreted as weak, skarn-type mineralization formed by iron-rich fluids that also carried copper and zinc. Historically, skarn-type copper-gold deposits were the main source of metals produced in the Greenwood camp. The Phoenix deposit produced 28,341 kg of gold, 183,036 kg of silver and 235,693 tonnes of copper and the Motherlode produced 6,648 kg gold, 22,083 kg silver, and 34,918 tonnes copper."

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GGX Gold going Star Wars to model their flagship property Gold Drop

GGX Gold Corp (CVE:GGX-OTCQB: GGXXF) President George Sookochoff joined Steve Darling in the Vancouver studio of Proactive Investors to discuss the company drilling a high-priority geophysical target at its Gold Drop property in the Greenwood mining camp. Sookochoff talked about the...

on 4/7/19

4 min read