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Sego surges on drilling results near Copper Mountain

Vancouver-based junior Sego Resources caught investors’ attention with results including 88.1m at 1.08g/t gold, from the Southern Gold zone at its Miner Mountain project in British Columbia.
Sego surges on drilling results near Copper Mountain Sego surges on drilling results near Copper Mountain Sego surges on drilling results near Copper Mountain Sego surges on drilling results near Copper Mountain Sego surges on drilling results near Copper Mountain

Sego Resources’ drilling at Miner Mountain in BC, with the Copper Mountain mine in the background

Ngaire McDiarmid

Reporter

The above intercept, from 12.19m, also included 19.8m at 2.44g/t gold.

A second hole intersected 59.1m at 1.03g/t from 3.04m, including 15.2m grading 2.94g/t.

CEO J. Paul Stevenson said the results were exciting and showed "excellent potential" to add bulk gold-bearing mineralisation.

"The Southern Gold zone is most likely a distal expression of a blind porphyry copper-gold mineralisation within a broader area of porphyry copper-gold system at the Miner Mountain project," he said.

Miner Mountain is 15km north of Mitsubishi and Copper Mountain Mining's namesake copper-gold-silver mine.

Sego had entered an option to acquire 100% of Miner Mountain in 2007 and has since expanded the project to more than 2,000ha.

It discovered the Southern Gold zone last year and results from 2020 trenching included 62m at 0.65g/t gold, including 30m at 1.02g/t.

The company had reported a working capital deficiency of about C$241,000 at March 31.

It had raised $252,000 for drilling at the Southern Gold zone in February in a placement priced at 3.5c per unit.

Sego shares (TSXV: SGZ) traded below 5c for much of the past year.

They more than trebled on Thursday to 16c, a level last seen in 2013, on the drilling results.

Sego closed on Friday at 11.5c to value it about $15 million (US$12.4 million).