BTU Metals Corp (CVE:BTU) (OTCPINK:BTUMF) announced Monday it had uncovered visible gold in bedrock on the northern portion of its Dixie Halo property in Red Lake, Ontario.
Drilling on the property intersected fine visible gold in an area where till sampling results over the last year had identified several gold grains throughout the area, the Vancouver-based company told shareholders.
In a statement, BTU said that the discovery “clearly validates” its exploration work over the past year, as finding visible gold in drill core is quite rare.
READ: BTU Metals says till sample results show prospective ‘LP-fault' geology at its Dixie Halo property in Ontario
The firm was aiming to discover gold in bedrock in the north-central part of the 200-square kilometre property.
According to BTU, gold mineralization is around 100 metres below surface near the bottom of drill hole BTU-20-53 and spatially close to the location of a topographic low feature and a creek bed that could indicate the location of a significant structural trend. The lack of outcrop and historical data nearby support the potential for additional mineralization, the junior explorer said.
"To now discover visible gold in a drill hole clearly validates our exploration methodology and is an exciting development,” BTU CEO Paul Wood said in a statement. “This discovery of gold in drill core sets the stage for us to continue to work towards discovering other areas of gold mineralization.”
Drilling, core logging and core sampling, as well as geophysics, will continue throughout December before a short break into early January, Wood added. Once field operations restart, the firm will immediately continue to follow up on promising results on the now 15-kilometre southwest by northeast structural trend.
The company has now received assay results on seven drill holes from the current campaign, with the most significant gold mineralized interval coming from BTU-20-44, which returned 1.5 metres of 0.5 grams per ton (g/t) gold. Holes 43, 46 and 48 had one metre intersections between 0.1 and 0.2 g/t gold.
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