Blackrock Gold (TSX-V:BRC) released partial assays from its maiden drill program at its flagship Silver Cloud Project in Nevada. While the headline results didn’t blow me away, it’s the key details within this news release that have me excited about Blackrock Gold in 2020.

Here are the key takeaways:

  • The primary purpose of this 5 hole (2,200 meters) program was to confirm the theory that the vein systems at Silver Cloud actually run in an east/west orientation. This theory was confirmed by drilling as the gold mineralization was clearly deposited in an east/west orientation.
  • Another key realization was also made which in fact makes the potential for the project much, much larger – the gravity lows (12 of which are located at Silver Cloud), seem correlated to, or appear to be mineralized porphyry intrusives. As is evident, now that the east-west orientation holds true, gravity lows indicate the potential strike length where current drilling has been focused could stretch well beyond initial expectations, all the way to the eastern extent of the property, in addition to zones directly north and south.

Silver Cloud map that shows gravity lows (grey hash marks) which seem to coincide with mineralized porphyry intrusives.

  • Perhaps the most exciting prospect at Silver Cloud is the Northeast Veins Target (large red circle at the top of the map) which Blackrock Gold CEO Andrew Pollard says “gets him out of bed in the morning”; the number of multiple gravity lows indicated in BRC’s NE Veins target is highly encouraging – this is an area with 8 veins outcropping at surface that is situated directly west of Hollister’s vein system (which also run east/west).
  • The partial results received so far (which includes geochemistry) indicate that Blackrock has drilled above the boiling zone (where the high grade and bonanza grade gold mineralization is likely to be). However, holes 4 and 5 (which are still pending assays) were drilled deeper and could have intersected a piece of the boiling zone of this epithermal system. In fact, hole 5 (which was added after inspecting the core from holes 1-3), the entirety of which is still pending assay, was by far the deepest hole of the program, so BRC may get to the bottom of this puzzle very soon. Visuals of the cores from hole 4 and 5 are encouraging and Blackrock is eager to receive complete assays from these holes over the next couple of weeks.

I hate the term “technical success” in mining exploration. However, the fact is that Blackrock Gold has achieved a technical success in confirming the east/west vein theory, as well as simply gaining a much better handle on what’s going on at Silver Cloud.

Blackrock Gold CEO Andrew Pollard tells me the company will be back out drilling at Silver Cloud in February and he has more targets to drill than he can shake a stick at. Considering where Silver Cloud is located (the Northern Nevada Rift, one of the highest grade known gold belts on the planet) if BRC is able to hit the system just right, the sky is the limit and the potential for size at the project just keeps growing.

From a technical charting standpoint BRC dipped back to test the rising 200-day moving average and found strong buying support at the C$.16 level:

BRC.V (Daily)

I used Monday morning’s dip to add to my BRC position and I view any further dips over the coming days as a buying opportunity ahead of a highly prospective and potentially transformative year for Blackrock Gold.


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