EXCLUSIVE: Gold Miner Tower Resources Significantly Expands Discovery, Readies For Drilling

Zinger Key Points
  • Tower Resources has confirmed a second gold discovery while working to prove out its resource at the Lightning Zone.
  • The company is nestled between operating mines owned by New Gold, Inc and Teck Resources.

Tower Resources, Ltd TWRFF announced that it has received the results from its follow-up till sampling near its initial gold discovery, significantly expanding its potential resource.

What Happened

Tower had 17 new till samples analyzed, which yielded results showing that “the average Au (gold) grade of the samples from the Central Train is 3.67 grams per ton (g/t), approximately three times higher than the 1.27 g/t average grade of the samples from the Dominic Lake Train (where the initial discovery was made).”

“This strongly suggests that the average gold grade of the Au zone from which the Central Train is sourced is three times higher than the average Au grade of the Lightning Zone,” Tower said.

The 17 new till samples yielded between 40 and 452 gold grains each, and the Central Train showed the existence of a "number of large, sand-sized gold grains among the usual silt-sized population."

Read more about Tower's progress here

The Backdrop

On Oct. 5, Tower announced that while completing a second follow-up diamond drilling campaign, intended to continue proving the resource near the location of its initial gold discovery, the company collected till samples 400 meters (437.5 yards) to the west of its Lightning Zone on the Dominic Lake Train.

The results of Tower’s new till samples surpassed the results of the till samples from October 2021, the latter of which the company used to guide its initial drilling program, which resulted in a gold discovery.

The samples “revealed a new, much coarser grained and thus higher-grade gold dispersal train,” according to results received from Overburden Drilling Management, Ltd. (ODM), the contractor Tower engaged for its initial till sampling and sample processing.

“This indicates either a new, higher-yield gold discovery or a potentially larger expansion to the total size of the original discovery,” Joe Dhami, Tower President and CEO, told Benzinga at that time. The results showed this to be true.

What’s Next

Tower plans to drill the inaugural hole on the Central Train, and possibly others nearby, prior to the next expansion drilling campaign on the Lightning Zone due to the long delay in receiving assays from the August-September drilling program,” Tower said.

The company announced on Oct. 5 that it had completed a second follow-up drilling program, consisting of five holes at the Lightning Zone, and submitted all cores from the program to ActLabs in Kamloops, British Columbia.

Although the company is awaiting the official assays from that drilling program, Tower noted on Oct. 5 that in hole 038 “it encountered 83.2 meters of pervasive sericte-silica-pyrite alternation between 52.2 and 136 meters down-hole.” The visual results indicate the hole may yield a higher grade of mineralization than the initial discovery hole.

“The Rabbit North property is drill accessible year-round and we have a first class coring and storage facility available to compliment the next round of drilling on the Central and Lightning Zones,” Dhami told Benzinga on Nov. 21.
The entirety of Tower’s property is accessible year-round from Kamloops.

Interesting Fact

In mining, location is everything, and Tower’s Rabbit North property is located between New Gold Inc.’s NGD New Afton underground copper and gold mine and Teck Resources Ltd.’s TECK Highland Valley open pit copper and molybdenum mine.

TWRFF Price Action

Tower Resources closed Monday's trading session down 7.95% at $0.11.

Now Read: Why Divided Congress Will Likely Perk Up Inflationary Pressure: Gold Bull Peter Schiff Weighs In

Market News and Data brought to you by Benzinga APIs
Posted In: Penny StocksCommoditiesMarket-Moving ExclusivesExclusivesMarketsPress Releases
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!