Shares of Ontario-focused explorer Hudson River Minerals (HRM-V) surged on assays from its recent drill program at the Forge Lake gold property, near Wawa, Ont.
On Jan. 25, the day the results were released, the company topped the Venture board as the biggest gainer, up 189% or 8.5¢ to 13¢ on 15.9 million shares traded. It has a one-year trading range of 4¢-17¢.
The share price hike came after the company reported that 16 of the 17 holes it drilled on Forge Lake hit anomalous gold.
The best intercept from the batch intersected 12.7 metres grading 3.25 grams gold per tonne, which included a 3.9-metre intercept of 4.35 grams gold.
This assay came from one of the 11 holes that were drilled on the property’s East zone to test for higher-grade mineralization. Two other notable intersections from that zone returned a half metre of 16.5 grams gold, and 7.5 metres of 1.93 grams gold, including 3 metres grading 4.03 grams gold. The company cautions the assays are not true widths, which could be 75-85% of the intersected widths.
Hudson River poked the remaining six holes into the Main zone to test for gold mineralization in two thick deformation zones. It says the best results came from within the major quartz vein near the base of the deformation zone, adding that lower-grade sections are prevalent within the zone but are not always continuous. For example, one hole encountered 9.1 metres of 1.99 grams gold within a thicker interval of the deformation zone that includes the major quartz vein, but also cut a 3-metre intercept of 4.56 grams within the quartz vein.
Hudson River notes that the results were more continuous within the East zone, but the thickness of the quartz veins varied over a short distance.
The drilling in the recent program was confined to the upper 110 metres of the past-producing mine, which contains a non-compliant, historic resource of 170,000 tons (154,200 tonnes). No grade was assigned to that resource, which was estimated in 1940 by Regnery Metals and in 1979 by AMC.
However, in the early 1940s the mine produced 8,000 tons grading a reported 0.28 oz. gold per ton (9.5 grams gold per tonne).
Hudson River recently completed an airborne survey over Forge Lake, and its other two nearby gold properties, Otter Pond and Hawk Junction.
For this year the company has scheduled another 15 to 20 holes to extend the intersections encountered in its previous drilling along strike and at depth, the company’s president and CEO, Steve Balch, explained in an email.
The program will test both the East zone, which can have high-grade pods, and the Main zone, which has shown thicker intersections.
Both zones are open at depth, and mineralization remains open to the east where the company has traced the surface quartz veins for a distance of 450 metres, says Balch. Hudson River believes the mineralization is faulted off to the west.
In the summer the company aims to map the zones farther to the east, as well as map and sample a quartz vein located 400 to 500 metres farther south that returned assay values of up to 1 ounce per ton gold, notes Balch, adding there is another quartz vein to the north of the Main zone, which it may also map and sample.
Forge Lake sits 14 km south of Richmont Mines‘ (RIC-T, RIC-X) Island gold mine and mill. The high-grade underground mine has produced more than 100,000 gold oz. since starting commercial production in October 2007. At the end of 2010, it had reserves of 161,197 oz. gold from 818,066 tonnes grading 6.13 grams gold.
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