The program successfully intersected anomalous gold in all four holes, including a peak assay of 0.520 g/t Au over 3.2m in hole SD-23-001. The program confirms that the barren steam-heated alteration observed at surface is the product of a gold-bearing epithermal system.
Highlights
K2's drilling has successfully identified a blind-to-surface gold-bearing epithermal system at Si2.
Gold mineralization is hosted within a major NE-trending fault zone focused along the margin of a rhyolite dome.
Assay highlights include:
SD-23-001: 3.2 metres of 0.520 g/t gold from 344.58m to end of hole.
SD-23-002: 185.57 metres of 0.053 g/t gold from 200m to end of hole.
Both holes were drilled into the NE-trending fault zone and ended in mineralization and increasing arsenic anomalism.
A 6.4m thick quartz vein intersected in the immediate footwall of the controlling fault is gold-bearing, exhibits high-level textures, and indicates the epithermal system is capable of forming large veins.
Drilling was conducted at a single target area within an 8km2 alteration cell. Additional target areas with identical surficial alteration, structural control, and geochemistry are ready for future drill testing.
'Our 2023 drill program at Si2 was designed with one goal in mind: determine if the steam-heated alteration identified at surface might hide a gold-bearing epithermal system below.' stated
'Our diamond drilling has successfully demonstrated that the Si2 epithermal system is gold bearing. The 185m gold bearing intercept we drilled indicates that the hydrothermal system that created the extensive property-wide steam-heated alteration at surface mobilized a tremendous amount of gold-bearing fluid. The next step will be to identify where that fluid was trapped, concentrated, and potentially deposited higher grades of gold. This first drilling program tested only one of the fault-controlled alteration cells on the property, all of which share similar characteristics and are just as prospective.'
Program Objective
K2's drilling at the
The 2023 program consisted of four diamond drill holes for a total of 1,777.3m. The four holes were oriented to the southeast, aligned in a fence-style pattern, and drilled at angles of 50 to 60 degrees from horizontal to cut across a prominent set of NE-trending faults observed at surface at the margin of the rhyolite dome. The objective of the drilling was to test beneath the steam-heated alteration to determine if the epithermal system is gold bearing. A diamond drill was utilized to obtain core samples to observe textures of alteration and mineralization to guide future exploration.
Discussion of Results
All four drill holes intersected anomalous gold beginning at a depth of approximately 125-150m below present surface, beneath the steam-heated alteration cap. Drillholes SD-23-001 (347.78m total depth ('TD')) and SD-23-002 (385.57m TD) successfully drilled across a prominent set of NE-trending, moderate to steeply NW-dipping normal faults which control gold mineralization. In SD-23-001, a fault mapped at surface as the 'AOI1.5 fault' acts as a hard boundary, with anomalous gold beginning in the immediate footwall in association with a 6.4m thick interval of quartz veining. The vein exhibits high-level textures and represents a high-priority target for follow up drilling down-dip and along strike to the northeast and southwest. The drillhole ended in mineralization, cutting a sulphide-bearing fault breccia which returned 0.520 g/t Au over 3.2m.
Hole SD-23-002 drilled through the same fault system cut by hole SD-23-001, with barren steam-heated alteration intersected from surface to 62m where a fault zone cutting oxidized and silicified rhyolite returned 0.067 g/t Au over 4m. Consistently elevated gold values begin at a prominent fault at 200m down hole, with an intersection of 0.053 g/t Au over 185.57m, including an interval of 0.179 g/t Au over 5.50m at 361m down hole with a sub interval of 0.228 g/t Au over 1.50m. The drill hole ended in mineralization and increasing arsenic anomalism. The broad intercept is interpreted as 'leakage' of hot, mineralizing hydrothermal fluids adjacent to the controlling fault structures.
Minor gold was intersected in several fault zones with associated silicification deeper in the rhyolite dome in holes SD-23-003 and SD-23-004, including an interval of fractured and silicified rhyolite which returned 0.118 g/t Au over 6m in SD-23-003. Both holes drilled through the dome into andesitic rocks in the footwall. Notably, the andesite was weakly mineralized where intersected, including program-high arsenic anomalism in hole SD-23-003 associated with gold values in the 0.050 - 0.100 g/t Au range.
Interpretation and Next Steps
The results of the 2023 program indicate that the
Presence of thick fault-hosted gold-bearing quartz veins in hole SD-23-001. Vein textures suggest the vein is high in the epithermal system indicating drill targets down-dip and along strike.
Broad intervals of low-grade gold mineralization peripheral to a controlling fault structure interpreted as 'leakage' from the main structure. Extensive fluid flow, alteration, and low-grade mineralization indicates the potential for economic grades in a focused conduit.
The AOI1.5 fault system at the margin of the rhyolite dome is interpreted to trend to the northeast and is demarcated by a prominent magnetic low. This structural corridor is observed to extend for up to 1,600m on K2's property, and has now been shown to host gold mineralization where pierced by drilling.
Multiple steam-heated alteration cells on the property remain untested and are now considered high-priority targets for follow up.
K2 intends to submit all samples from the 2023 drilling for alteration mapping using
About the
The alteration is interpreted to represent a high-level setting within a low-sulfidation epithermal gold-silver system. In this type of geologic setting there is typically minimal anomalous gold mineralization at surface, however, gold grades may increase at depth along controlling structures at critical locations in the hydrothermal system (i.e., boiling zones).
The analytical work for the 2023 drilling program was performed by
Quality Assurance and Quality Control procedures include the insertion of coarse blanks and certified assay standards into the sample string at a rate of approximately 1/20 (5%). Samples are placed in sealed bags and delivered directly to ALS's preparation facility in
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Cautionary Statement on Forward-Looking Statements
This news release contains forward-looking statements that are not historical facts. Forward- looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements, including statements regarding the exploration program at Si2, Wels, and
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