CXO Chief Geoscientist Dr. Jim Oliver at KSP (BMR photo).
Two-thirds of all drill holes released so far have returned significant near-surface intercepts at Colorado Resources‘ (CXO, TSX-V) emerging new deposit in the Golden Triangle’s Heart of Gold Camp, including 25.7 m grading 9.2 g/t Au in INDDH16–29 – a high-grade interval that also featured 5.3 ounces per tonne Gold over 1 m – but it’s the impressive pace of drilling with just 1 rig that’s allowing Colorado to capture majority ownership of this project from Seabridge Gold (SEA, TSX) far ahead of schedule.
In what could prove to be another “game changer”, drilling has now moved 2 km south of the Inel zone to the Khyber zone to test a 500 m x 1,500 m Gold-in-soil anomaly averaging better than half a gram per tonne. If the volcanic-sediment contact at the Khyber zone returns mineralized intersections comparable to Inel, then CXO is sitting on something much bigger than most observers had previously imagined.
The Heart of Gold Camp is rugged country, but the rewards from persistence and efficiency on the ground can be extraordinary given that this is one of the most mineralized parts of the entire planet as evidenced by the past producing Eskay Creek and Snip mines, Seabridge’s KSM Project and of course Pretium Resources‘ (PVG, TSX) Valley of the Kings where one of the world’s highest-grade Gold mines (Brucejack) is slated for commercial production beginning next year. Recent infrastructure improvements in this region are remarkable, sparked by the Altagas hydroelectric projects that have created, among other benefits, a 300-person camp and a staging area for the Colorado team within a short distance of KSP.
This morning we have the first excerpt of a fascinating interview with Brian Butterworth, President of Hy-Tech Drilling (and a geologist very familiar with the area) who provdes investors with valuable insight into what it takes to achieve such superb production levels at KSP, giving Colorado the opportunity to secure majority ownership of this project much more quickly than originally anticipated.
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Why is CXO still halted?
Comment by Dan1 — August 9, 2016 @ 5:45 am
Hey All.. CXO not trading yet .. but how about a teaser.. whats the LvlII saying about the opening when it does?? TIA
Comment by Jeremy — August 9, 2016 @ 5:51 am
Typical when a stock is halted late in a previous trading session, Dan1…sometimes won’t start trading until an hour or so after the open upon final clearance. In this case, 7:15 am Pacific will be the start of trading for CXO.
Comment by Jon - BMR — August 9, 2016 @ 5:52 am
Thanks Jon
Comment by Dan1 — August 9, 2016 @ 5:58 am
Jon,Just wondering if John’s charts on GGI are still bullish as he stated a few weeks back.
Comment by pole — August 9, 2016 @ 6:08 am
perfect storm brewing,gold takeing off and the us$ getting flushed…..
Comment by Laddy — August 9, 2016 @ 6:09 am
It’s holding key support after backing off from a more bullish posture, pole…some positive would give it the push it needs.
Comment by Jon - BMR — August 9, 2016 @ 6:19 am
Thanks Jon.Still keeping the faith.
Comment by pole — August 9, 2016 @ 6:21 am
Just remember CXO is still drilling and still 10 holes to report from INEL.
Comment by Dan1 — August 9, 2016 @ 6:25 am
NRN – I really like the story, but their news release talks about not drilling till end of September, and weather may dampen the drilling efforts. I remember EQT had the same problem with fog last year in that area. It will be interesting to see what price NRN is trading in late september.
Comment by dave — August 9, 2016 @ 6:33 am
regoci will ride the coat tails of cxo,pure and simple.
Comment by Laddy — August 9, 2016 @ 6:34 am
John the technician said CXO was at support($0.42) in late July. John also said he was buying more CXO in low $0.40s– John was right. Nice read John!
Comment by Daniel — August 9, 2016 @ 6:35 am
Key resistance also at 70 cents…there’s every reason to believe that CXO will hit at Khyber, and that’s going to blow things wide open.
Comment by Jon - BMR — August 9, 2016 @ 6:45 am
Hopefully you are right Laddy. Just left a voice mail with Regoci expressing shareholder frustration over lack of news flow. Hopefully it did some good.
Comment by pole — August 9, 2016 @ 6:56 am
Jon, last week you said you expect a flurry of news from DVR, starting maybe this week. It’s very difficult to pick up shares of DVR. Took a little more profit on CXO this morning at 70 cents.
Comment by Dan1 — August 9, 2016 @ 7:15 am
Hi Dan1, I do believe we’ll hear more from DVR shortly and regularly, especially after Labor Day, as they have much on the go. They’ve been very busy attending to the business but I expect more focus on the market from them starting soon. Our contention is that only a limited number of shares are available from the 50’s into the 70’s and once that is cleaned up, watch out because the demand-supply dynamic could be quite remarkable – very small float and an emerging big story.
Comment by Jon - BMR — August 9, 2016 @ 7:23 am
NRN – Huckleberry (JV w South 32)will be drilled. Sequoi (100%NRN)they put a maybe on , weather permitting. I would think they want to pop at least a hole into S8 and will try hard to get there.
Comment by david — August 9, 2016 @ 8:42 am
NRN – Huckleberry (JV w South 32)will be drilled. Sequoi (100%NRN)they put a maybe on , weather permitting.
I would think they want to pop at least a hole into S8 and will try hard to get there.
Comment by david — August 9, 2016 @ 8:43 am
We’re delaying Morning Musings until about 11:30 am Pacific as we’ve just picked up some very interesting information from the Heart of Gold Camp that we’re checking on…stay tuned…
Comment by Jon - BMR — August 9, 2016 @ 9:36 am
JON, hoping it is GGI related.
Comment by Robert — August 9, 2016 @ 10:40 am
CXO (“visitors”)- Interesting post on Stockhouse from earlier today.
http://www.stockhouse.com/companies/bullboard/v.cxo?postid=25123718
Comment by Vepper — August 9, 2016 @ 11:56 am