Initial prospects for gold ‘encouraging’

Q-Gold Resources Ltd., a company focusing on Canadian gold mining, announced late last month the results from the first phase of its exploration on Mine Centre Gold Property.
“It confirmed what we already knew and that’s that there is gold there,” local exploration manager Jack Bolen enthused.
Bolen noted any previous information from the area is too old and not up to today’s standards, so all the work needs to be done again.
“We’re basically starting from scratch,” he remarked, adding the first phase of the exploration is only from a very small sample of the area.
The released results are from the “Jumbo” vein, which saw 37 chip samples taken and confirmed the historical gold values, with a weighted average of 0.1403 oz/ton of gold.
Silver and zinc were other minerals encountered.
But Bolen warned mining is a long process.
“It’s a long ways off. People must understand this is preliminary exploration—it’s nothing that is going to happen overnight,” he stressed, noting it will take years before any mining will take place.
For instance, in Canada, Bolen said it will take about eight years from the time a mine is first discovered until it is put into production. It is a very long process because of permitting and all the development.
“For the last 20 years we’ve been putting the pieces together, and now we basically have a large land package where [the land] is not fragmented anymore . . . it’s been a long haul,” he remarked, adding no one has ever looked at the “whole picture” like this before.
The 18,740-acre property—consisting of contiguous claims, Crown leases, and leasehold patents—is located within Mine Centre’s historic 1890s gold camp.
The Foley and Golden Star mines produced 16,025 ounces of gold back then, although there has not been any extensive, systematic explorations there since the 1920s.
Q-Gold also announced earlier this month it has signed an engagement letter with Toronto-based IBK Capital Corp. to raise up to $2 million to further future phases of the exploration.
“We’ve always known gold was there, but you have to prove it to everybody and that takes a lot of money and a lot of time,” said Bolen, noting he can’t really say how quickly things will progress but that they are hoping to have the financing by Christmas.
Bolen said they know there is at least 100 gold-bearing veins in the area, which has been established by government geologists and past records.
And he expects once the financing is in place, there will be more drilling this winter.
Both the company and Bolen indicated the encouragement they feel from these preliminary results.
“So far we have the encouragement to continue,” Bolen remarked. “The next $2 million is going to basically tell us where we’re standing on whether we’re going to be continuing on, but we’ve seen nothing yet to discourage us.”
“We look forward to increasing our exploration activities there in the very near future,” Q-Gold chairman and CEO J. Bruce Carruthers II said in the news release.
However, the release also stated “these statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated.”
Results from the recent stripping, trenching, and drilling of four of the other veins in that area likely will be available in the coming weeks.