Sierra Nevada Gold Initiates Drilling at Blackhawk Epithermal Project - 1 August 2024
SNX (SNX) Share Update July 2024 Wednesday 31st
Sierra Nevada Gold Advances Drilling Program at Blackhawk Epithermal Project
Sierra Nevada Gold (ASX: SNX) has announced the commencement of site works for a significant 1,500-metre drilling program at its Blackhawk Epithermal project in Nevada, USA. This program aims to follow up on previous high-grade silver results and further explore the potential of the historic Endowment Mine.
Instant Summary:
- Site works underway for 1,500m reverse circulation (RC) drilling program.
- Drilling targets high-grade silver veins at Blackhawk epithermal project.
- Previous intercept of 1,270 g/t Ag in BHD006 from beneath Endowment Mine.
- Induced Polarisation (IP) survey targeting sulphide and alteration occurrences.
- Detailed 3D scanning of historic Endowment Mine completed.
- Geological mapping and sampling continue across a 5km² area.
- SNX raised $2.6 million in May 2024 to fund exploration.
Drilling Program Details
Sierra Nevada Gold (SNX) has initiated site works for a 1,500-metre reverse circulation (RC) drilling program at the Blackhawk Epithermal project in Nevada. This program follows a previous intercept of 1,270 g/t Ag in drill hole BHD006, located beneath the historic Endowment Mine. The drilling aims to target high-grade silver veins and near-surface mine extensions.
The company has also commenced an Induced Polarisation (IP) survey, conducted by Zonge International, to target sulphide and alteration occurrences within the high-grade epithermal vein field. Two lines of IP will test extensions of the historic Endowment Mine, with results expected in August 2024, prior to the commencement of drilling.
Preparatory Work
In preparation for the drilling program, SNX has completed a detailed 3D scanning of the historic Endowment Mine, capturing all accessible underground areas. This data will assist in rectifying historic underground maps and improving drill targeting. Additionally, geological mapping and sampling activities continue across a 5km² intermediate sulphidation epithermal vein field, with additional veins identified and results pending.
Financial Backing
In May 2024, SNX announced a $2.6 million capital raising to advance exploration at the Blackhawk Epithermal project. Executive Chairman Peter Moore emphasized the company's commitment to advancing its drilling plans, stating that the data collected over the past few months has provided valuable insights for better targeting the proposed drill holes and identifying additional veins for further exploration.
The announcement of the drilling program at the Blackhawk Epithermal project is likely to have a positive impact on Sierra Nevada Gold's stock. The high-grade silver results from previous drilling, combined with the detailed preparatory work, suggest significant potential for further discoveries. Investors may view this as a strong indicator of the company's growth prospects, potentially driving up the stock price.
Investor Reaction:
Analysts are expected to react positively to the news, given the high-grade silver results and the comprehensive preparatory work undertaken by SNX. The successful capital raising in May 2024 also demonstrates strong investor confidence in the company's exploration plans. However, some caution may be warranted until the IP survey results and subsequent drilling outcomes are confirmed.
Conclusion:
Investors should keep a close eye on the upcoming IP survey results and the commencement of the drilling program in September 2024. The potential for high-grade silver discoveries at the Blackhawk Epithermal project could significantly enhance Sierra Nevada Gold's value proposition. Staying informed on the progress of this project will be crucial for making informed investment decisions.