“We are finding lots of gold everywhere,” says San Gold CEO Dale Ginn. “If you look at just our most recent four discoveries, we have strong potential for millions of ounces of additional gold near our current mines.”
The company’s geologists believe they know why San Gold has been so successful in finding new gold deposits – each deposit is part of a geologic structure, a 10-km faulted fold axis extending eastward from Horseshoe Lake to the San Gold #1 deposit. The axis itself appears to be the conduit for the gold that, over time, seeped out perpendicular to the axis, creating a network of large gold veins.
San Gold’s Hinge, Cohiba, L13 and the recently discovered Fire Break Zone are all along the southern side of the fold but may be mirrored on the northern side as well. Company geologists are so convinced that their geologic model portends that even more high-grade gold zones remain to be found, San Gold has positioned multiple drill rigs both above and below ground.
“We found the Fire Break zone in early November. It is massive with substantial amount of gold,” said Ginn. The “Fire Break” is located just south of the Hinge and Cohiba Zones.
In addition, San Gold recently secured control of most this “Golden Fairway” source area – and the entire western end of the fold – through an earn-in agreement with StrikePoint Gold. According to the agreement, San Gold can earn a 50% undivided interest in StrikePoint’s 8,883-acre property, which is adjacent and to the north and northwest of San Gold’s Rice Lake Mine, Cartwright deposit and the high-grade gold Hinge Mine and Cohiba Zones.
Significantly, the StrikePoint property’s geology is similar, if not identical, to the hanging wall volcanic rocks hosting San Gold’s Hinge and Cohiba zones.
“As a result of this joint venture, all of the hanging wall volcanics that host the high-grade Hinge deposits, together with their important structural elements, are now accessible to San Gold, at surface as well as within possible important western and northern extensions.”
StrikePoint Gold will be the operator of the joint venture project. “This agreement consolidates the Central Rice Lake Belt structural domain that has hosted over 95% of the Rice Lake Belt’s recent and historic gold production,” says StrikePoint Gold CEO Richard Boulay.