SKYG.v Gold Summary for Sept. 27, 2019
2019-09-27 17:50 ET - Market Summary
by Stockwatch Business Reporter
Mike England's Sky Gold Corp. (SKYG) traded busily but went nowhere, ending the day unchanged at two cents on 1.19 million shares on word that it has drilled a five-metre zone averaging 8.57 gram of gold and 1.06 grams of silver per tonne, accompanied by 0.044 per cent copper. The assays are from another two holes drilled into the Main H zone on the Clone project in northwestern British Columbia. The two tests were a part of a six-hole drill program, the first four of which tested the Main H zone.
There was considerably more interest when the company announced assays from the first two holes at the start of September, although the results ended a three-month rally that saw Sky Gold's stock gradually double to a not-so-high high of seven cents. The bearish reaction aside, there was far more glitter in those first two holes: One returned a 4.1-metre near-surface interval averaging 124.6 grams of gold and 5.6 grams of silver per tonne, the other yielded a three-metre zone averaging 25.78 grams of gold and 4.6 grams of silver per tonne.
That is it for the Clone assays: Investors who read deep enough into the latest news learned that a fifth hole, which targeted the Gossan zone, failed to encounter significant amounts of gold, silver or copper. Likewise, the sixth and final hole, which probed the Treble zone, also proved barren. That was a disappointment, as the soil anomaly atop Treble and the nearby Port 19 zone is estimated to be more than double the size of the Main H zone soil anomaly.
Mr. England, chief executive officer, says that further desktop review targeting work will be needed to explain the anomalous regions at Gossan, Port 19 and Treble, but he cheered the assays from Main H as "encouraging and supportive of multiple zones of high-grade gold mineralization." In other words, Sky Gold will carry on at Main H and will spend the winter pondering what went wrong at the three other zones. The compiling and interpreting, not to mention the head scratching, will lead to a summer program next year, but for now, work at Clone is done for the year.
Gold and cobalt were discovered at Clone in 1995, and for a few years, the prospect was worked heavily by two juniors, Teuton Resources Corp. (TUO: $0.395) and Minvita Enterprise Ltd., bankrolled by Homestake Mining Corp. and Murray Pezim's Prime Resources Corp. Interest waned in the late 1990s and work there has been sporadic since then. When Sky Gold acquired Clone two years ago, it was trading above 10 cents, as Sunvest Minerals Corp. The name change occurred this spring, but neither the reorganization nor the initial effort on "its flagship Clone project" reversed the long slide in the company's stock.
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