Olympio stock doubles on 12.2g/t gold hit in Canada
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Doug Bright
Olympio Metals is bullish today after the company announced high-grade gold results from initial diamond drilling at its Bousquet gold project in Canada, confirming multiple gold-bearing structures at its CB-1 target and a potentially large mineralized system at nearby Paquin.
At one stage today the market pushed the company’s share price to 9.5 cents, or more than 100 per cent, in the largest trading volume since February last year.
Recent analysis from the last six holes includes a stunning 1.30m intercepts analyzing 12.2 grams per tonne (g/t) gold from 218.2m in one hole, and 1.45m from an adjacent hole going to 2.04g/t gold from 270.9m. Both holes were located within the company’s CB-1 target area and just 280 meters south of the famous Cadillac Break regional structure.
Significantly, the detection of 12.2 g/t gold highlighted a third distinct gold-bearing structure within the CB-1 trend, further supporting the potential of the zone unearthed by a 2.9 m strike of 5.7 g/t gold from 63.26 m in the historic CB-1 drill hole.
‘Furthermore, the CB-1 target was advanced by the identification of three productive structures in close proximity.’
Olympio Metals managing director Sean Delaney
This possibility has been further enhanced by the company’s recent 2.70m run, which analyzed 1.49g/t gold from 289.50m in a hole located only approximately 65m north of the 12.2g/t limit.
At Paquin, located approximately 880 meters south of Cadillac Break and 720 meters southwest of the last 12.2 g/t gold recovery at CB1, the last three holes confirm more than 100 meters of downhole extensive gold mineralization under approximately 10 meters of thin cover.
Key gains from the Paquin drilling include a 3m run at 2.21 g/t gold from 24.35m and a 1.50m run at 4.22g/t gold from 92.5m in one hole. A second hole caught 4.25m at 0.98g/t gold from 70.15m, approximately 60m west of the first interception.
Viewed together, the results support the conceptual model of a series of cascaded gold mines extending 1.3 kilometers east-west within the Paquin/Amadee corridor; all lodes currently remain open both downstream and along strike.
The Paquin/Amadee gold mineral corridor is currently interpreted to be over 1850 meters long and has a dominant east-west orientation.
Most of the historical drilling has been tightly clustered around just two exploration centers along a strike of just over a kilometer, leaving large sections of the corridor barely tested. Beyond a handful of shallow exploration holes, the ground between these areas and across the strike remains completely open, offering plenty of room for new discoveries to emerge.
Olympio Metals managing director Sean Delaney said: “We are excited to see the final drilling results of the pre-drilling program at the Busquet Gold Project. The program has given us a much better understanding of the structural controls on gold mineralization at the Paquin Prospect and confidence that the Bousquet Project hosts a major gold system.”
Olympio’s Bousquet project sits above the staggering gold-producing Cadillac Break, a regional structure that has historically produced more than 110 million ounces of gold. It is located 15 km from Agnico Eagle’s 15.8Moz LaRonde gold mine and Iamgold’s 2.4Moz Westwood gold operation.
Olympio is acquiring an 80 percent stake in Bousquet through phased cash/share payments totaling C$1.25 million (AU$1.35 million) and an exploration commitment of C$2 million (AU$2.16 million), of which approximately C$1.0 million (AU$1.08 million) has already been spent.
Olympio says it has sharpened the structural model across the CB-1 and Paquin domains, with highly encouraging analysis results from its first three-dimensional sortie into the main Cadillac Break domain that we now have. The aim is to focus on high-grade subduction extensions and at the same time go after untouched parallel veins that could make a new positive contribution to the system.
Surrounded by giants and with a growing understanding of the structural controls on gold mineralization and high-grade mineralization occurring in multiple structures, Olympio plans to return to action for follow-up drilling this year once approvals are received.
As studies continue, the company appears to be slowly uncovering the secrets underlying the potential of this little-explored segment of the premium Cadillac Break.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
