This is great to see; even though there’s no resource yet, knowing the recovery rate of metal from the ore is important early on. You want to know upfront what you’re dealing with; if recovery rates are strong and can support economic mining, you know you can proceed with further exploration, and also know it’s something majors will want to see.

There were previous column leach tests completed, but that was in the 1980s and after only a 19-day leach cycle, resulting in gold recoveries of 58.5% to 91%. Also, silver extractions were not reported. The current program will determine the leach extractions over a period of 3-4 months. Based on this previous data, management expects extractions of 70% to 90%. That’s economic ore.

VP Exploration Greg Hahn provides a little education about what they’re doing (emphasis mine).

• “Previous metallurgical test work completed by the Company in 2020 on the north end of the property demonstrated the amenability of both low and high gold grades to cyanide leaching, achieving 89-99% gold extraction under agitation leach conditions at -104-micron grind. Silver recovery was not addressed in those tests. Column leach tests are required to assess the potential for low-cost heap leaching of the stockwork mineralized zone and to address the extraction of silver. We have commenced column leach test work on two bulk samples taken from underground workings and from a surface mining bench. Heap leaching is the most cost-effective method for recovering precious metals from bulk tonnages of stockwork material. Column leach tests are the standard method for determining the amenability of oxide gold and silver bearing material to heap leach methods. This program will establish on a preliminary basis the optimum crush and recovery characteristics for potential heap leaching.”

Management submitted 429 kilograms of bulk material from two sample sites for testing at McClelland Laboratories in Sparks, Nevada. Results will be out after the new year.

The stock is flat to up as I write, this news something that may not excite investors but is a critical step. Good recovery rates will make it attractive to a major, assuming management can prove up a deposit. Bottom line, the company continues to make important steps forward that I believe will someday pay dividends. I remain overweight the stock, and it’s a buy if you like this story and want shares.

Courtesy of the Gold Stock Advisor