Open Gold Targets Gold Discoveries in Two of Canada's Highest Potential Gold Districts
In a very short period of time Open Gold Corp (TSX-V:OPG) has laid the foundation for future aggressive growth and value-building.
In the few months since May 2012, the company has completed negotiations for a new property located in Ontario's Red Lake region, attracted a new proven and successful President and CEO, and has successfully raised new capital in one of the toughest junior mining finance markets in years.
Now Open Gold's management is preparing for the exploration of some of the highly prospective targets on its flagship property which is surrounded by more than a dozen high-grade mineral discoveries.
The size of the project, past analysis of its potential, and the known resources surrounding it all are something most companies are constantly searching for and hoping to find. Open Gold has it. But still, the company has a total market cap of about $2 million.
But all that's starting to change. Under the company's new leadership, Open Gold shares are up 40% in the past two months and a strategic plan has been laid out to unlock the potential of its assets in the short term and aims to fully explore and uncover the value of all its projects in the long term.
These development plans all start with the company's current properties and its plans to acquire additional world class assets.
Flagship Project Surrounded by High-Grade Mineralization
Open Gold's flagship property is the Mitchell Project. It's located in the Birch-Uchi Greenstone Belt (BUGB) which is known for the Red Lake and numerous other gold mines in the area.
In all the project covers 2,256 hectares of gold exploration territory in the Red Lake mining district and it has numerous mineral discoveries surrounding it.
One of the major mineral discoveries near the Mitchell Project is the South Bay Mine. The mine was one of the highest grade mines in the region. During its life the mine produced 1.6 million tonnes of ore with average grades of 2.5% copper, 14% zinc, and 3.5 ounces per ton silver.
The South Bay Mine is just one of the many known mineralization zones discovered in and around Open Gold's Mitchell Project though. There is a 50km to 60km trend which runs southwest from the South Bay Mine which hosts more than a dozen known mineral discoveries.
Most of the discoveries on the trend are extremely high-grade too. Assays from those drill holes have routinely accounted high grade mineralization including grades as high as 4.01% copper and 12.5% zinc.
The same trend runs right through the Mitchell Project.
The map below shows these discoveries relative to the Mitchell Project:
The map further details Mitchell Project's location immediately along the trend which hosts the South Bay Mine and many mineral discoveries.
That shows the Mitchell Project's potential is very real. But more importantly for the near-term development of Open Gold, the project already has three significant geological anomalies identified within it.
One of those geological anomalies is the Jigg Occurrence which was initially discovered past geological surveys of area completed by Noranda Mines. It was further defined later by a geophysical analysis of the property which pinpointed the Jigg Occurrence as a "bulls-eye" target.
The area in and around the Jigg Occurrence also contained multiple gold-bearing quartz veins discovered. Historical assay results from those put the gold content of those veins as high as 0.725 ounce (or 20.55 grams) per ton gold from one of the veins and 3.53 ounce (or 100.07 grams) per ton gold from another vein.
Early indications show it has significant potential to turn into another significant Red Lake region mineral discovery. And it will be the initial focus of Open Gold's ongoing exploration efforts.
The two additional geological anomalies were discovered in the most recent were identified through a Helitem survey completed and reported in June of 2012.
The Mitchell Project is easily accessible by road and is near infrastructure to facilitate the aggressive exploration and development of the potential contained on it.
That's all why the Mitchell Project has earned the position as Open Gold's flagship project and why it will be the focus of future exploration efforts. It is, however, not the company's only project.
Big Stake in Southern British Columbia's Major Gold Mining District
In addition to the highly prospective Mitchell Project, Open Gold has maintained its ownership of the Eholt Project.
The Eholt Project is a large gold-copper exploration project covering 3,000 hectares of territory in Southern British Columbia near the United States border.
The entire mining district in around and the Eholt Project has historically produced over 2.5 million ounces of gold over the years since it was initially discovered. One of the largest mines in the region, the Phoenix Copper Mine, has produced more than one million ounces of gold and 460 million pounds of copper. It is just four kilometers away from the Eholt Project.
The map below shows the Phoenix Mine and the multiple mineral discoveries and past-producing mines in the area relative to the Eholt Project:
The map is a relatively simple portrayal of the region's past mineral development. Further detailed analysis of the geological history of the Eholt Project specifically has found there's much more potential left in this region.
Open Gold's analysis of the Eholt Project has confirmed the existence of three mineralization zones or showings on the project.
These mineralization anomalies include:
Dead Honda Showing - was drilled and intercepted mineralization grading 1.5 g/t gold and 0.28% copper across 27.82 metres and 5.2 g/t gold and 0.29% copper across 6.0 metres and grading 5.3 g/t gold and 0.21% copper across 10.25 metres.
The mineralization discovered here remains open for testing in both directions along the strike trend and at depth.
Senator Showing- is located in the central part of the Eholt Project and contains a series of massive sulphide lenses. Surface trenching yielded assay results include 7.5 metres grading 1.5 g/t gold, 0.29% copper, 5.4 g/t silver, 2.32% arsenic and 2.0 metres grading 3.4 g/t gold, 4.2 g/t silver, 7.6% arsenic.
Seattle Showing - is in the eastern part of the property. Previous surface drilling did not return significant grades but the program was poorly designed to test the zone. Recent surface grab samples returned gold values ranging from 5 g/t to 40.9 g/t gold.
All three of these mineralization showings have been confirmed through historical data analysis.
The past geological consultants who studied them said each of the showings warrant further drilling.
So the combination of historical exploration data and the likelihood of mineralization due to the prolific nature of the area surround the property make the entire Eholt Project another high potential project for Open Gold.
But again, the company has to develop the assets in order to unlock their potential value. And that's where the company's latest plans come in.
Open Gold Seizing Opportunity to Jump Forward
In May of 2012 Bryson Goodwin became the President, CEO and Director of Open Gold. Since then the company has been steadily advancing.
Goodwin brings the experience and ability needed to execute the development plans of Open Gold. He has more than 18 years experience in public and private markets. He has led the raising of significant capital for mining exploration and development capital throughout that time. One recent major capital raise he headed was a $10 million equity financing completed during the 2008 credit crises - the toughest time for any mining company to get additional capital in the past decade. His most recent post was the Director, Investor Relations of Klondex Mines Ltd (TSX:KDX) which he left in August of 2011.
Goodwin's success and focus have continued at Open Gold. Since joining he has successfully negotiated the option on the Mitchell Project from Foundation Resources to get Open Gold a stake in an additional major Canadian mining district.
He also led a successful additional capital raise. In August the company raised an additional $300,000 of capital. And he did it during one of the toughest junior exploration and development company financial markets in years.
Goodwin also completed an overhaul of the Open Gold web site to better inform current and potential investors of the company's projects and potential and to meet regulatory compliance.
With new funding in place and experienced management at the helm, Open Gold plans to further develop its opportunities and it has new leadership in place to execute them.
The Bottom Line
Open Gold is an early stage resource exploration development company with large, highly prospective properties in two historically prolific mining regions.
The company's leadership has proven it's capable of moving companies forward for nearly two decades and has done so throughout some of the most challenging market environments.
It recent successful completion of a financing deal, property acquisition, and access to additional properties through its new management demonstrate the return of investor interest in the company.
Open Gold trades on the TSX Venture Exchange under the symbol "OPG."
It has just over 29 million shares outstanding and a current market value of about $2 million.
Learn more about Open Gold (TSX-V:OPG) at www.opengoldcorp.com.
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|Open Gold Corp.
Suite 2050-1055 W Georgia St
PO Box 11121, Royal Centre
Canada, V6E 3P3
as of 04:00pm EST , Oct 15, 2012
Recent Press Releases
From Open Gold:
Vancouver, British Columbia, Canada - Tuesday, September 18, 2012 - In May 2012, Open Gold Corp. announced the addition of Mr. Bryson Goodwin as President, CEO and Director. This appointment comes at a very important juncture in the Company's future. Mr. Goodwin's mandate for Open Gold is to deliver long term value to our shareholders by effectively executing the Company's corporate objectives. Since his appointment, Mr. Goodwin has successfully: [...]
Vancouver, British Columbia, Canada - Monday, August 13, 2012 - Open Gold Corp. wishes to announce that it has granted an aggregate of 2,290,000 stock options to directors, officers, employees and consultants of the Company, exercisable for a period of five years, at a price of $0.10 per share. [...]
Vancouver, British Columbia, Canada - Thursday, August 9, 2012 - Open Gold Corp. is pleased to announce that, further to its news release dated July 10, 2012, it has received final TSX Venture Exchange acceptance with respect to the closing of its non-brokered private placement ("Private Placement"). The Company issued 6,163,000 units at a price of $0.05 per unit for gross proceeds of $308,150. Each unit consists of one common share and one share purchase warrant ("Warrant") of the Company. Each Warrant entitles the holder to purchase one additional common share at a price of $0.10 for a period of 18 months from closing. This private placement was over subscribed by 163,000 units.
Vancouver, BC, Canada - July 10, 2012 - Open Gold Corp. is pleased to announce that it proposes to issue up to 6 million Units of the Company at a price of $0.05 per Unit, for gross proceeds of up to $300,000. Each Unit will consist of one common share and one share purchase warrant ("Warrant") of the Company. Each Warrant will entitle the holder to purchase one common share at a price of $0.10 per share for a period of 18 months.