Tower Resources, Ltd (OTC:TWRFF) (TSXV:TWR) appears to be on the brink of another gold discovery at its Rabbit North property near Kamloops, British Columbia.
While completing a second follow-up diamond drilling campaign, intended to continue proving the resource near to the location of its initial gold discovery, Tower collected two till samples 400 meters (437.5 yards) to the west of its Lightning Zone on the Dominic Lake Train.
What You Need To Know: The results of Tower’s new till samples surpassed the results of the till samples from October 2021, which the company used to guide its initial drilling program, the latter of which resulted in a gold discovery.
The samples “revealed a new, much coarser grained and thus higher-grade gold dispersal train.”
“This indicates either a new, higher-yield gold discovery or a potentially larger expansion to the total size of the original discovery,” Joe Dhami, Tower President and CEO, told Benzinga.
Tower named the new dispersal train the Central Train due to its position, lying “midway between the Dominic Lake and Durand Creek Trains.”
“Our new, gold-rich Central Train and previously announced Durand Creek Train clearly show that we have found a large gold system at Rabbit North and the Lightning Zone is not a one-off discovery. We are very excited about both the grade potential of the indicated new gold zone and its great location just 400 m from our Lightning Zone,” said Dhami.
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Why It’s Important: Overburden Drilling Management, Ltd. (ODM), the contractor Tower engaged for its till sampling and sample processing, has studied gold grain dispersal trains for almost 50 years. Through its experience, it has found that samples from the till surveys are “predictive of the grade of the bedrock source from which the grains are derived.”
The grades ODM found when completing the till surveys “of the Dominic Lake Train and its source, the Lightning Zone, uphold (that) relationship, indicating that it should also apply to the new, richer Central Train.”
The Technical Data: Comparing the accuracy of the till surveys completed in October 2021 and the assay results found during follow-up drill programs to the results of the till surveys recently completed and processed provides investors with an idea of what can be expected when Tower completes a diamond drilling program at its new discovery.
- In October 2021, Tower’s till survey results suggested an average of 1.54 grams per ton of gold (g/t Au), which closely matched the grades of the first three holes Tower intersected in the Lightning Zone during its first follow-up program.
- The new till survey results (samples 245 and 246) came in much higher, at 3.9 g/t and 21.67 g/t, respectively, “implying a correspondingly higher source grade.”
What’s Next: While Tower’s new gold discovery looks promising, the company also announced it has completed its five-hole follow-up drilling program at the Lightning Zone and has submitted all core from the program.
Although the company is awaiting the official assays, Tower noted that in hole 038 “it encountered 83.2 meters of pervasive sericte-silica-pyrite alternation between 52.2 and 136 meters down-hole.” The visual results indicate the hole may yield a higher grade of mineralization than the initial discovery hole.
Interesting Fact
In mining, location is everything and Tower’s Rabbit North property is located between New Gold Inc.’s (NYSE:NGD) New Afton underground copper and gold mine and Teck Resources Ltd.’s (NYSE:TECK) Highland Valley open pit copper and molybdenum mine.
TWRFF Price Action: Tower Resources closed Tuesday's trading session down 1.61% at $0.159.
