Scottie drills more high-grade gold in British Columbia ahead of initial resource statement
Scottie Resources (TSXV: SCOT) reported high-grade gold cuts from its namesake project in northern British Columbia on Monday before releasing the asset’s first resource estimate.
The company’s 2024 drilling program, 35 km north of Stewart, tested several zones along a 6-km mineralized trend. It builds on a series of high-grade results reported over recent months. The company plans to release its resource estimate for the Scottie mine and the Blueberry Contact zone by March.
Highlights among the most recent batch of results include 2.6 metres grading 20.2 grams gold per tonne from 26.6 metres depth in the O zone. Other results include 3 metres at 9.5 grams gold from 33 metres depth in the M zone and 4 metres of 4.5 grams gold from 132 metres depth in the N zone. This hole also had a subinterval of 1 metre grading 16.7 grams gold per tonne.
Initial drilling in the Golden Buckle zone, between the Scottie mine and the D zone, returned 1 metre of 1.87 grams gold at 106.9 metres depth. This expanded exploration beyond old drilled areas.
Historical deposit
CEO Brad Rourke said the results continued to demonstrate the high-grade nature of the former Scottie mine and its surrounding zones.
“They [the results] strengthen our ability to establish a resource at this historic deposit while opening new opportunities along strike,” Rourke said in a news release.
While completing the resource estimate is a priority, Scottie’s exploration program will target high-grade extensions in the Golden Buckle zone. It is also to expand the Blueberry Contact zone and undertake infill drilling at the Scottie mine.
Last year, Scottie secured an C$8.1 million royalty deal with Franco-Nevada (TSX: FNV; NYSE: FNV). It provides non-dilutive funding for exploration and resource modeling.
At midday in Toronto, Scottie shares were trading at C$0.83 apiece, down 7%. The equity has been on a downward trend, losing 27% over the past 12 months and testing C$0.77 and C$1.44 along the way. It has a market capitalization of C$42 million ($29.2m).
Scottie completed a six-to-one share consolidation in December. It reduced its issued and outstanding shares to about 50 million. It had also hired ICP Securities for automated market-making. This was to improve liquidity and fix temporary trading imbalances.
Scottie mine
The old Scottie mine, active from 1981-1985, produced 95,426 oz. gold at an average grade of 16.2 grams gold per tonne before shutting down due to falling gold prices.
Scottie holds 585 sq. km in the Golden Triangle. It’s one of the world’s most prolific historical mining districts. It includes Newmont’s (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) Brucejack mine and Ascot Resources’ (TSX: AOT; US-OTC: AOTVF) Premier gold mine.
Modern drilling has aimed to confirm past results and extend known zones. It uses surface drill setups for longer, multi-target holes. The Blueberry Contact zone, a key target, now extends 1.7 km along strike and over 500 metres in depth, according to company documents.
The location near Stewart provides logistical support via road access and nearby port facilities. Infrastructure advantages include a nearby hydroelectric power line, reducing barriers to development.