Darnley Bay Resources Limited (CVE:DBL) shares shot up 8% on Thursday after the company announced several developments regarding its 100%-owned Pine Point lead-zinc project near Hay River, Northwest Territories.
The company has received the land-use permit which will allow drilling to begin.
Hay River, known as “the Hub of the North,” is in the Northwest Territories, Canada.
Simultaneously the company has signed a drilling contract with a local aboriginally-registered company. The first phase is a 3,500 metre drilling program which is scheduled to commence shortly and will be followed by at least two additional phases of drilling throughout the year.
Exploration by past operators totalled approximately 1.3 million metres of core drilling in an estimated 18,406 drill holes, and there are 54 undeveloped lead-zinc deposits on property held by Darnley Bay. These are in addition to the 52 deposits historically mined out by former owner Pine Point Mines Ltd and Cominco (now Teck Resources) between 1964-1987, which totalled 64 million tonnes grading 7.0% zinc and 3.1% lead. Of these 54 deposits, 15 were included in the National Instrument 43-101 (“NI 43-101″) resource report as detailed in a press release March 3, 2017, while the rest are classified as historical resources.
The purpose of the drilling is threefold: to upgrade some of the historical resources as current mineral resource in accordance with NI 43-101; to explore for additional deposits in several under-explored portions of the property; and to obtain sufficient samples for metallurgical testing for a feasibility study.
Additionally, the Company has acquired additional properties in the Pine Point area through staking. The new staking adds eight claims totalling 3490 hectares to the approximately 18,000 hectares already held through mining leases and claims by Darnley Bay in the region. The land-use permit applies only to the original 18,000 hectares.
Lead and zinc mineralization in the Pine Point area has been found on three main trends known as the North Trend, Main Trend and South Trend. Approximately 30% of ore mined by Pine Point Mines Ltd. and Cominco was from the South Trend, which was discovered after the mine and the town of Pine Point were largely constructed in 1964.
The town was partially situated on the South Trend. As a result, little of certain parts of the South Trend were explored in the past. The town of Pine Point has been largely abandoned and reclaimed and the new staking covers approximately 10 km of the South Trend. Since the historically identified deposits are located on average every 1.5 kilometres of strike length on the three trends, the former town site presents a prospective exploration target.
Darnley Bay intends to begin an Induced Polarization Survey on the new claims, followed by drilling of any targets which are found, once permits are obtained for the newly staked property.
Darnley Bay shares were up 8.1% at C$0.40 on Thursday.
Story by ProactiveInvestors