Group Eleven Resources Corp (CVE:ZNG) (OTCMKTS:GRLVF) revealed it has hit the best mineralization ever found at the Carrickittle prospect at its PG West project in the Republic of Ireland.
A drill hole intercepted 10.3 metres of 14.6% zinc, 5% lead (19.6% combined) and 43 grams per ton (g/t) silver starting at 56.3 metres downhole, the firm told investors in a statement on Monday.
The hole also hosted a high-grade zone of massive sulphides containing 6.6 metres of 21.5% zinc and 7% lead (28.4% combined) and 59 g/t silver, starting at 60 metres downhole.
"This intercept represents a breakthrough in our understanding of how mineralization is oriented at Carrickittle and offers a compelling hypothesis as to why historic drilling missed or seemingly only skimmed along areas of mineralization," said Bart Jaworski, Group Eleven's chief executive.
The hole was designed to test the firm's theory that historic (1965-66) drilling at the prospect had been oriented in the wrong direction - drilling south and west, or vertical.
The historic hole appears to have skimmed around parallel along the top of a zone of massive sulphide which dips moderately-steeply to the west, said Group Eleven.
But the firm's hole implies mineralization is open along strike to the north for at least 1 kilometres (km) and to the south for a few hundred metres, it noted.
"Finding such high-grade mineralization at shallow depths is a very rare occurrence these days in the industry and it is highly encouraging for Group Eleven," added Jaworski.
"Carrickittle is a prospect that lay largely dormant for over 54 years after it was labelled as 'sub-economic' in 1966. The prospect, however, now clearly appears under-drilled and under-conceptualized – and requires immediate follow-up."
The Carrickittle prospect lies within the Pallas Green Corridor, a 25 km trend of mineralization defined by the Pallas Green deposit in the north and the firm's Carrickittle, Ballywire and Denison prospects to the south.
Carrickittle was discovered in 1965 by Tara Exploration and was drilled throughout 1965 and 1966 with 33 holes, while follow-up work in the late 1960s and 1970s largely focused on regional exploration.
In 1981, Billiton drilled seven vertical holes in a wide-spaced pattern forming a semi-circle on the northern side of the prospect (returning only weak mineralization).
To Group Eleven's knowledge, previous operators did not focus on the exact orientation and controls of mineralization at Carrickittle and little work, aside from outside a few shallow holes, was carried out to test the north-west oriented faults in the area.
Shares in Toronto surged over 23% to C$0.080 each.
---Updates for share price---
Contact the author at [email protected]