U.S.-focused miner Fiore Gold (TSXV: F; US-OTC: FIOGF) has released assay results for 29 drillholes completed at its Gold Rock project in Nevada. The majority of these intercepts are infill holes aimed at gaps in the current resource.
The drill highlights included 18.3 metres of 0.84 gram gold per tonne starting at 170.7 metres; 19.88 metres of 1.33 grams gold per tonne from 129.5 metres; and 12.2 metres of 1.75 grams gold per tonne starting at 147.8 metres.
These latest results suggest oxide gold mineralization within and outside of the current resource pit shells, and, according to the company's news release, indicate potential for an upgrade to existing inferred resources and for expansion of the resource envelope.
"These holes reported today are primarily infill holes targeting gaps in the existing resource," Tim Warman, Fiore Gold's CEO, commented in the press release. "The results are consistent with previous drilling and continue to show strong, continuous mineralization and excellent opportunities to expand the current resource envelope going into the feasibility study."
Warman said the feasibility work is underway. The company is also awaiting assay results for exploration holes drilled at the Jasperiod Creek target, 1.7 km north of the past-producing Easy Junior pit at Gold Rock.
The federally permitted Gold Rock project is about 12 km southeast of Fiore's operating Pan mine. Based on an April 2020 preliminary economic assessment, Gold Rock could be an open pit operation, sharing infrastructure and management with Pan. This project could generate an additional 55,800 oz. gold annually over a 6.5-year mine life, at all-in sustaining costs (AISCs) of US$1,008 per ounce. With a pre-production capital estimate of US$64.6 million, the after-tax net present value estimate for the development comes in at US$32.8 million, at a 5% discount rate and based on US$1,400 per oz. gold.
Current resources at the site include 19 million indicated tonnes grading 0.66 gram gold, with a further 2.7 million inferred tonnes, at 0.87 gram gold.