Cashed-up Independence Gold drives discovery at Boulevard

POSTED ON September 14, 2015 BY Tommy Humphreys
CATEGORY Independence Gold,

Here’s a junior explorer trading at less than half its most recent reported cash balance, with a new high-grade gold discovery 8 kilometres from a mine in the making, more assay results from drilling pending, and an excellent management team.

This summer, Independence Gold ($IGO.v) drilled about 1,750 metres at the Boulevard project, resulting in a new high-grade gold discovery. The best intercepts were 7.23 grams per tonne (g/t) gold across 12.2 m at the new Sunrise Zone, and 4.25 g/t gold across 6.10 m at the Denali Zone, located 13 km to the northwest of Sunrise. Read more here: Independence Gold intercepts 7.23 g/t gold across 12.2 metres on the Boulevard project, Yukon.

Independence CEO Randy Turner, an accomplished geologist and entrepreneur, thinks the recent drill results would have sent $IGO shares “through the roof” in a better market. But his shares have traded sideways all summer and closed at 7.5 cents Monday, for a market cap of roughly $3.286 million. That’s less than half the company’s $7.5 million in working capital as of Mar. 31, 2015. Summer drilling campaigns depleted roughly $850,000 and $600,000 respectively from the company’s treasury, Turner says. He maintains if $IGO doesn’t spend money, it can’t make a discovery.

Following the summer discovery at Boulevard, Independence decided to drill an additional 1,400 metres in a second drill program to further delineate the newly discovered Sunrise Zone. Drilling is now complete and samples are on their way to the lab for assays, which Turner hopes will be public in about six weeks.

Independence utilized reverse-circulation (RC) drills to reduce helicopter flying time. RC drills are easier to move, significantly cheaper overall than diamond drilling, and have been used a lot by neighbouring Kaminak Gold in their ongoing Coffee discovery.

In the short distance between Independence and Kaminak, Turner thinks there is much gold left to be found for both companies. “In our opinion there’s a lot of parallel structures that have potential to be gold-bearing,” Turner said on a brief phone call earlier.

Keep your eyes peeled for drilling results from $IGO in mid- to late-October. Here’s the company’s latest corporate presentation.

News release: Independence Gold commences followup drilling at the Sunrise Zone, Boulevard Project, Yukon

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Tommy Humphreys

Tommy Humphreys, 30, is an entrepreneur, investor and writer from Vancouver, Canada. He founded CEO.CA, a popular junior mining and Canadian finance blog, in 2012. He has been the president of Pacific Website Company Inc., a private marketing and web development company, since 2007. Tommy has authored articles for Globe and Mail, Financial Post and others. He speaks at select conferences. Reach him by email: tommy@ceo.ca. Follow him on Twitter: @TommyHump More →

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Tommy Humphreys

Twitter: @tommyhump

tommyhump@gmail.com

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