TerraX commences with second round of drilling
TerraX Minerals Inc. (TSX VENTURE:TXR)(FRANKFURT:TX0)(OTC PINK:TRXXF) revealed that a second drill programme is currently underway at its Yellowknife City Gold project (“YCG”) in the Northwest Territories.
During the three-month period ending 30 April 2016, TerraX concluded its winter drill programme at YCG, with 7,130m having been drilled on multiple targets.
Most juniors’ drill programmes are dependent on funding. TerraX has an additional hurdle to cross, which to date it has overcome admirably, namely battling the elements. Given the location, TerraX has two primary drilling and exploration seasons, namely winter and summer. In winter, they are able to run ice roads to drilling sites and then in summer, after the mud has dried up sufficiently, they are able to access the targets.
In July the company commenced its 27,000m drill programme at YCG on the Mispickel target. This represented the first phase of an extensive exploration drill programme at the deposit that was expected to run for the ensuing 18 months.
On the 23rd of August 2016, TerraX provided an update indicating that it had added a second drill programme to this summer effort. The first drill programme was focused on expanding Mispickel mineralised zones where drilling returned discovery holes of 8.6m @12.87g/t Au and 7.3m @23.6g/t Au, followed by an intersection of 8m @60.60 g/t Au.
The second drill programme is expected to drill step-out holes along the sub-parallel mineralised structures at Mispickel, which has been identified by surface mapping and sampling.
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The company has not yet given any indication as to the expectations for its winter drill programme, though since the beginning of July, TerraX has managed to raise $7.5m in a non-brokered private placement, with the second tranche of $3.238m having been executed on the 18th of August, which has enabled the company to embark on this aggressive second drill programme.
TerraX is in an enviable position amongst junior miners with an excess of $11.7m in cash on its balance sheet.
The company’s share price rose to $0.91/share as the news hit the wires, from the previous day’s close at $0.88/share. However, within three hours of the announcement, the price had fallen back to 0.85/share. However, for those investors that have held their stock for a year (23 August 2015: $0.24), the return at today’s opening would have been 280%.
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