With the U.S,
Phoenix Gold (TSX-V:PXA), a Canadian junior exploration company, has just raised expectations of a major discovery by expanding its drill program on the 100% owned Plumas Property in
"The geological structures and magnetic signature of the Phoenix-Fortitude mine are closely replicated in a similar magnetic anomaly and structures which we are drill testing on our Plumas Property," stated
Laing is an investment banker and is well known as a savvy international deal-maker and investor so his increased stake in this
"It took a lot of diligence and connections to secure these claims from title holders who did not want to deal with large mining companies," confirmed Laing. "First we completed the surface mapping and the prospecting and now we've begun to drill. The holes look better with each one that we drilled. The first hole was a shallow hole which orientated us in the system and the next two holes we drilled into what looks like a big mineralized system."
The first drill hole (CPL-1) was completed to a depth of 447 feet in the southern most part of the Plumas Property. The second drill hole (CPL-4) stepped up about 200 feet north into the anomaly and was drilled to 588 feet and the third drill hole (CPL-7) stepped up a further 200 feet to the north and was completed to a depth of 912 feet.
Drilling has begun on the fourth hole (CPL-8) which steps up another 500 feet to the north along strike from the previous hole and is right in the "meat" of the magnetic anomaly and geological structures.
"This preliminary drill program is confirming the potential size of the mineralization," stated Laing, "Evidence is increasing that we have a large mineralized system. I have to use the word 'mineralized' because our assays are still pending for these first 3 holes."
In both Hole CPL-4 and Hole CPL-7, the mineralization encountered in the drill core exceeded the Company's expectations and the lengths of the individual drill holes were then extended by up to 50%.
PXA's technical team determined that the mineralized system intersected by the first 3 drill holes exceeds the expected dimensions and that two extra holes be added and the drill footage be increased by an additional 1,200 feet.
"Our technical team is getting excited," stated Laing, "When we see those levels of metal sulphides in the core, it gives us a strong indication that there is the chance of good gold grades. In this particular
The history of this mining district suggests that the high grade material can be close to surface. The Phoenix-Fortitude mine is an open pit operation and there were payable gold grades of right from surface outcrops. PXA is drilling into surface outcrops on the Plumas Property.
"We are confident that we will grow a 43-101 gold resource on the Phoenix Property which could in turn substantially raise the valuation of our company," stated Laing.
Historic gold production from
PXA is currently trading at
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