The share price of Canadian minnow E79 Resources surged 240% to C$1.26 a share on Monday, as the company reported initial assay results from the first two drill holes at its Happy Valley gold prospect in Victoria, Australia.
The two drill holes confirm extension of mineralised structures substantially below known historic mining levels at Happy Valley. HVD002 intersected gold about 60 m beneath known historic mining and HVD003 intersected gold about 80 m below that.
Drill hole HVD003 confirmed a section of visible gold assaying at more than 78 oz/t, or 2 430 g/t.
President and CEO Rory Quinn said that the presence of four other intersections assaying greater than 3 oz/t demonstrated that this was not a “one hit wonder”.
“Happy Valley sits within a 7 km corridor of historic gold mines at Myrtleford and that is one of five distinct corridors of historic gold mines observed on our Myrtleford property,” he said.
The Happy Valley mining centre has a documented historical production of 34 200 oz of gold predominantly between 1866 and 1875. The Happy Valley mining centre produced at an average grade of 31 g/t, which presents E79 with an attractive target. To date, only limited modern exploration has been conducted at this prospect.