JOHANNESBURG (miningweekly.com) – TSX-listed exploration company Bravada Gold has received notice from gold miner Kinross Gold that a second-phase drilling programme is underway at Bravada’s Baxter Low-sulphidation gold and silver property in the Walker Lane Gold trend in Nevada.
This follows an option agreement signed in February between the two companies for the property, issuing Kinross with a stake in 189 claims within the agreement’s area of interest (an additional 1 530 ha).
Kinross has subsequently advised Bravada that it plans to drill 10 to 14 reverse-circulation (RC) holes for 2 400 m, followed by one to three core holes for an additional 450 m.
Earlier this year, Kinross completed 16 RC holes for a total of 4 439 m at the Baxter property and discovered a new zone of shallow, oxide gold mineralisation at the Sinter target, one of several targets partially tested during the drilling programme.
Hole BAX16-13, for example, intersected 6.1 m averaging 2.199 g/t gold, beginning at a 32 m depth within a thicker interval of 32 m, averaging 0.880 g/t gold.
Other holes in the target area intersected gold mineralisation at the same horizon.
Geophysical data indicates that mineralisation may be controlled by an easterly trending fault, suggesting a long, untested strike length.
Encouraged by these early drill results, Kinross's next RC programme will test lateral extensions of the new mineralisation.
The relatively shallow holes should also provide vectors to zones of potentially high- grade gold feeders beneath the high-level, disseminated mineralisation.
Potential feeders will be the target of the subsequently drilled core holes.
The option agreement between Kinross and Bravada gives Kinross the option to earn a 60% interest in the Baxter property if it spends $2-million over five years. It can also earn an additional 15% interest by spending an additional $2-million over two additional years on exploration and development expenses.
Upon Kinross completing its earn-in, Bravada may contribute to expenditures at its percentage of interest or be diluted. Should Bravada’s working interest reduce below 10%, Bravada will convert its working interest to a 1% net smelter return royalty.