TSX-V: KTO
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Dragonfly Zone Highlights:
- Hole DF20-004 intersected 30.5 metres of 7.2 g/t gold from surface, including 15.2 meters of 11.1 g/t gold.
- As previously reported, drill hole DF20-002 intercepted 86.9 meters of 4.0 g/t gold, including 45.7 meters of 6.7 g/t gold from surface (see the Company's
November 30, 2020 news release). - One hole at site DF1 (holes DF20-004) and all four holes at site DF2 (DF20-005 through 008) were successful in intersecting gold mineralization but were terminated prior to target depth due to difficult drilling conditions resulting from the highly fractured and silicified nature of the rocks.
- The Dragonfly results confirm the broad intervals of gold mineralization reported from previous drilling by BHP and demonstrates strong continuity at Dragonfly along strike.
- Assays are pending for nine additional holes from the Newmont zone 3 km to the south of Dragonfly.
Note: the spatial distribution of gold is not well understood at this time and the true width is unknown.
In total the drill program at
The nature of the gold mineralization at
Drill Results
All holes at Dragonfly intersected zones of alteration and/or mineralization downhole, starting at or near surface. Assay values for individual samples ranged from trace to 19.2 g/t Au. The reported intervals are drilled widths and there is not currently enough data to accurately determine true thickness.
A summary of the intercepts is below:
Table 1: Dragonfly Intercepts in this Release
Target | Site ID | Hole ID | From (m) | To (m) | Interval (m) | Au (g/t) |
Dragonfly | DF-1 | DF20-004 | 0 | 30.48 | 30.48 | 7.18 |
Including | 7.62 | 22.86 | 15.24 | 11.12 | ||
And | 59.44 | 76.20 | 16.72 | 1.86 | ||
And | 108.20 | 117.35 | 9.12 | 1.23 | ||
Envelope of Alt. | 0.00 | 76.20 | 76.20 | 3.27 | ||
DF-2 | DF20-005 | 13.72 | 22.86 | 9.12 | 0.65 | |
DF20-006 | 1.52 | 25.91 | 24.32 | 0.21 | ||
And | 71.63 | 82.30 | 10.64 | 0.58 | ||
DF20-007 | 21.34 | 35.05 | 13.72 | 0.49 | ||
DF20-008 | NSV |
Note: Due to difficult drilling conditions Hole DF20-004 at site DF-1 and all four holes drilled at site DF-2 did not reach target depth.
Table 2: Drill hole locations
Hole ID | Drill Site | UTM_E | UTM_N | Elv (m) | Azimuth | Dip | Depth(m) |
MPMDF20-004 | DF-1 | 433014 | 4039153 | 2200 | 115 | -65 | 132.59 |
MPMDF20-005 | DF - 2 | 433059 | 4038921 | 2217 | 70 | -50 | 22.86 |
MPMDF20-006 | 433059 | 4038921 | 2217 | 25 | -60 | 89.92 | |
MPMDF20-007 | 433059 | 4038921 | 2217 | 270 | -50 | 74.68 | |
MPMDF20-008 | 433059 | 4038921 | 2217 | 0 | -90 | 36.58 |
DF20-004
Hole DF20-004 was drilled from the Dragonfly target (DF-1) as a fan at a 115o azimuth and -65o dip to provide additional information on the geometry of mineralization. Assay results for the hole returned 7.18 g/t Au over 30.48m from surface, including 11.12 g/t Au over 15.24m from 7.62m depth, and 1.86 g/t Au over 16.72m from 59.44m depth. Both intercepts occur within a broader envelope of alteration that averaged 3.27 g/t Au over 76.20m. An additional zone of 1.23 g/t Au over 9.12m from 108.20m depth was also intercepted and is interpreted as a subparallel zone.
Dragonfly Site DF-2
Drill site DF-2 is located 236m south of site DF-1 and 93m north of BHP's historic holes CM97-1 & 2. All four holes (DF20-005 to DF20-008) intersected strongly fractured and broken ground with multiple voids. These operational complications necessitated that all four holes drilled from site DF-2 were terminated before the targeted mineralized horizons. Despite this, all of these holes intercepted zones of strong alteration and anomalous mineralization throughout their entire length.
DF20-005
Hole DF20-005 was drilled at a 70o azimuth, -50o dip, and reached a depth of 22.86m. The hole returned 0.65 g/t Au over 9.12m from 13.72m depth and ended in alteration/mineralization.
DF20-006
Hole DF20-006 was drilled at a 25o azimuth, -60o dip, and reached a depth of 89.92m. The hole returned 0.21 g/t Au over 24.32m from 1.52 m depth and 0.58 g/t Au over 10.64m from 71.63m depth.
DF20-007
Hole DF20-007 was drilled at a 270o azimuth, -50o dip, and reached a depth of 74.68m. The hole returned 0.49 g/t Au over 13.72m from 21.34m depth.
DF20-008
Hole DF20-008 was drilled vertically and reached a depth of 36.58m. The hole returned no significant intercepts, with values ranging from trace to 0.16 g/t Au.
The mineralization occurs within zones of strong quartz-sericite alteration within a sequence of calcareous conglomerate, siltstone, and sandstone and is associated with elevated As, Hg, Pb, Sb, Se, Te, & Tl (+/- Cu & Zn). The strongest intervals are associated with decalcification, silicification, quartz veining, and strong iron oxide development (limonite-hematite), and the current interpretation is that the mineralization occurs along a series north-nothwest trending, west dipping, extensional fault-fracture zones between the East and West Conglomerate Mesa faults.
The drilling confirms the historic mineralization reported by BHP; demonstrates strong continuity of the mineralization along strike; and confirms the potential for high-grade (>5 g/t Au) mineralization on the target. It should be noted, that this interpretation indicates that mineralization intersected in historic drilling on CM97-1 & 2 to the south of Site DF-1 and in rock samples to the north of CM97-3 & 4 are along, separate, en echelon, extensional zones.
Regional Context
The drill results reported in this news release and those that will be reported in subsequent releases will be from an area of known high grade mineralization that was partially drilled (35 RC holes) by BHP and Newmont in the 1980's and 1990's. The area of interest in this drill program is approximately 3km by 1km. The geology and geochemistry of the area indicate gold mineralization developed in a high-level setting and displays characteristics of intrusion-related, sediment-hosted gold systems throughout the
Next Steps
K2 expects to release further news in the coming weeks on the
- Assay results from remaining 9 RC holes from the Newmont target area
- Assay results from 422 rock samples collected on the recently identified
Upland Valley andGold Valley target areas - Results from additional prospecting samples and geologic mapping on
Gold Valley , Dragonfly, Newmont, and Broken Hill target areas - Awaiting timeline from
Bureau of Land Management regarding public commentary period for a second phase of drilling which contemplates at least an additional 30 platform sites.
Assay Methodology & QA/QC
The analytical work on the
The reported work was completed using industry standard procedures, including a quality assurance/quality control ("QA/QC") program consisting of the insertion of certified standard, blanks and duplicates into the sample stream.
Qualified Person
About K2
K2 is a well-financed gold exploration company with approximately
On behalf of the Board of Directors,
"Stephen Swatton"
President and CEO
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
This news release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in
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SOURCE
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