Visible gold in drill core from hole HVD003 at E79's Happy Valley Gold Prospect in Victoria, Australia
This morning's drill results from E79 Resources (CSE:ESNR, OTC:ESVNF) caused me to spit out my coffee upon reading the headline interval. E79 basically drilled into a jewelry store underneath historic mine workings at its Happy Valley Gold Prospect in Australia's Victorian Goldfields. The sections of holes 2 and 3 that were expedited to the lab both delivered bonanza grade gold intercepts. Hole 3 in particular delivered eye popping numbers, including:
- 0.60 meters of 147 g/t gold from 165.20m downhole
11.10 meters @ 160.45 g/t gold from 190.40m downhole including:
o 0.60m @ 2,430 g/t gold from 190.40m
o 3.00m @ 126 g/t gold from 198.50m
The company drilled four holes in total during phase 1 drilling at Happy Valley. The objective of Phase 1 drilling at Happy Valley was to test for down-dip extensions of previously mined high-grade quartz vein structures. The results of holes 2 & 3 demonstrate that not only do the high-grade vein structures continue down-dip, but that grades are increasing at depth.
There are assays pending from the rest of holes 2&3, and holes 4&5. E79 is currently drilling its Beaufort Project, although the rig could be moved to Happy Valley within a couple days.
It sounds like E79 CEO Rory Quinn wants to wait to get the rest of the assays back before planning the next phase of drilling at Happy Valley. The company has C$4 million in the treasury and all-in drilling costs are below $200/meter for E79.
With a tight share structure and strong insider ownership (nearly 50%) I can see E79 shares trading above $1.00 following this morning's news.
Disclosure: Author owns shares of E79 Resources at the time of publishing and may choose to buy or sell at any time without notice. Author has been compensated for marketing services by E79 Resources Corp.
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