X-Cal plans further work on Sleeper gold project

Drilling on the Sleeper Extension project in Nevada’s Humboldt Cty. has returned gold values for X-Cal Resources (TSE), and work is expected to continue.

The 4,200-acre property adjoins Amax Gold’s Sleeper mine to the southeast, and X-Cal is working to identify a similar deposit.

Drilling in Area 3 returned gold values in highly altered, volcanic rock.

Hole SXT-12 intersected 255 ft., starting at surface for an overall grade of 0.012 oz. gold. The vertical hole featured at least four flat-lying, sulphide and silica-rich zones, including: 25 ft. grading 0.024 oz. gold; 25 ft. grading 0.023 oz.; 20 ft. grading 0.018 oz.; and 20 ft. grading 0.024 oz.

Three other holes returned a 10-ft. intercept grading 0.027 oz. gold, 40 ft. with anomalous gold values, and 45 ft. grading 0.026 oz. gold.

X-Cal sees good tonnage potential in Area 3, where the gold mineralization appears to be lithologically, rather than structurally, controlled.

Three of the first five holes in Area 1 returned significant values from a north-south-striking fault structure.

Assay results included a 25-ft. intersection grading 0.042 oz. gold.

The Area 1 structure runs parallel to the Range Front Fault, which cuts through the Sleeper pit. The company sees potential in the strike extension of the Area 1 structure, where it intersects the projected extension of northwest-southwest-trending faults from the Sleeper mine.