TORONTO (miningweekly.com) – Shares in Canadian junior PC Gold rocketed as much as two-thirds higher on Wednesday, after the company said it found a new high-grade vein at its Pickle Crow project in north-western Ontario.
A fall drilling programme returned assays containing one 444.38 g/t intersection over 1.5 metres.
The vein is located nearby historical workings at Pickle Crow and PC Gold expects it will add to the 1.26-million ounce inferred resource, it said.
According to the company’s website, the historic mine at Pickle Crow, 400 km north of Thunder Bay, produced 45 tons of gold from 1935 to 1966 at an average recovered grade of 16.14 g/t. It paid its first dividend 11 months after starting production.
Shares in PC jumped nearly 66% higher on Wednesday morning to reach $0.365 apiece, before easing to trade at $0.35 a share by 13:40, with over 1.9-million shares changing hands.
CEO JP Chauvin said the Shaft 3 area at Pickle Crow, where the company found the new vein, is host to the highest concentration of high-grade veins.
“Significantly this new vein, the No. 22, is hosted within volcanic rocks of the Confederation Assemblage, which traditionally were not thought to host Pickle Crow type veins, and therefore have experienced little exploration,” he said.
PC intersected the veining in 9 of 11 holes drilled in the area, the company said.
The firm aims to complete a prefeasibility study at the deposit by spring next year.