Exploration / Development > Resource-definition

Carlin tumbles on assay results

Shares in junior Carlin Gold Corp (CN:CGD) tumbled after no significant gold mineralisation was found in the lower section of a hole drilled to 1,577m by Barrick Gold (CN:ABX) at the Cortez Summit project in Nevada.

Staff reporter

Exploration / Development > Resource-definition

Carlin tumbles on assay results

Shares in junior Carlin Gold Corp (CN:CGD) tumbled after no significant gold mineralisation was found in the lower section of a hole drilled to 1,577m by Barrick Gold (CN:ABX) at the Cortez Summit project in Nevada.

Staff reporter

Carlin tumbles on assay results

Cortez Summit exploration results disappointed investors

Barrick started exploration at Carlin's property mid-year and can earn up to 70% of the project under a US$5 million agreement struck a year ago.

Cortez Summit lies about 1km from the Canadian major's 11.5 million ounce Goldrush resource.

Carlin last month said the upper part of the drill hole contained an alteration zone with a 3m wide zone from 211m that graded 2.6g/t gold.

However, it said assays from the lower portion encountered "no significant gold mineralisation" in the lower plate carbonate section.

Nevertheless, Carlin said it was "encouraged by the exploration potential" demonstrated in hole SJV17-1D, saying it featured strong alteration and pathfinder elements, along with gold values in upper plate rocks along the Fourmile structural zone, near where it had done shallow drilling in 2012.

Investors failed to share the enthusiasm, sending Carlin shares down on Friday more than 38% to C4c, at the lower end of its 52-week range of 3-10c.

The company had C$79,712 in cash at the end of June and working capital of $218,279.

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