The Next Gold Rush? Look to California’s Mother Lode
Despite ongoing volatility, gold prices have been trending higher, telling a long-term bullish story that has investors excited for the next chapter.
Canadian exploration Company Providence Gold Mines Inc. (TSX-V: PHD, OTC: PRRVF, Forum) holds an interest in properties located in Tuolumne, California. PHD’s Tuolumne Property includes six parcels and 13 20-acre mining claims, located in the Mother Lode district which has reported over 128 million ounces of gold to date
What sets the Company apart is the stockpile at its Providence mine. Essentially untouched for more than a century, previous programs at the stockpile collected material from around a one metre depth over a length of 65 metres. What was recovered was gravel size samples, each roughly one metre in length for each metre. Its leadership team believes that, upon further drilling to depth will potentially provide results to produce a calculation of the volume and grade. Add this to the first historical stope which recovered 30,000 ounces at 15 ounces per ton, along with subsequent stopes to the 1,200 level, which reported production in excess of 200,000 ounces. Earlier success reported in November 2019 saw assay results of up to 253.6 grams per tonne (g/t).
Fast-forward to mid-August 2020 and Providence just released news that it had commissioned a local drilling company to percussion drill roughly 300 meters within its gold stockpile. Upon visiting the site, the drill company agreed to commence drilling later this month or in early September. Meanwhile, Providence leadership team is awaiting an essential entry permit due to COVID 19 in order to meet in person with the drill company in the coming weeks. For the most up-to-date results reported from the sampling program, click here.
In the news release for investors, Brian Ray M.Sc., P.Geo. stated that these extremely encouraging assay results have made the Company’s leadership very enthusiastic to begin percussion drilling to advance the potential significant value contained within the stockpile. Management believes that this material represents all the historically milled material of the Providence mine production.
The planned drilling is designed to produce a depth profile and evaluate the grade and volume of material. The assay samples will be taken at 1.5 metre (5 ft) intervals after which a full bulk sample of all the material is planned to further determine the grade and best recovery method.
Providence Gold Mines is organized into business units based on exploration and evaluation assets and has two reportable operating segments, being that of Acquisition and E&E activities in Canada and in the United States.
Could we be on the cusp of North America’s next great gold rush, with this area of California poised to be a standout region? Time will tell, but investors who want to capitalize on the most gains should keep Providence Gold Mines Inc. focused on their radar and do some digging of their own – deeper due diligence into what this explorer has in store as it develops the potential out of its stockpile and assets.
To find out more about this Company, visit their website at providence.com.
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FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.
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