Vancouver – News that Novus Gold (NOV-T) has started drilling at its Ren gold project in the Northwest Territories sent the company’s share price up 17.3% to 31¢.
The junior gold explorer is planning to spend the next six weeks drilling at the property 380 km northeast of Yellowknife to increase the size of the Main zone, which lies in a 7- to 10-km-long iron formation, and test other gold showings on the 10,000 hectare property.
Between 1974 and 1990, several operators drilled at Ren, outlining a gold-bearing zone 300 metres long and up to 300 metres deep. Work was focused on what became known as the Main zone, which remains open at depth and along strike in both directions.
Previous operators also conducted geophysical surveys, demonstrating that the magnetic and electromagnetic anomaly associated with the Main zone extends for 700 metres along strike.
Late last year a drill program on the property cut nine holes from four locations along 200 metres of strike. Results included 21.3 metres grading 2.09 grams gold per tonne, 32.1 metres averaging 2.39 grams gold from 51 metres downhole and 29.4 metres of 2.74 grams gold from 38 metres depth.
In January the company carried out grab sampling on the iron formation, with the results from 83 samples reinforcing the historic length of the zone.
Novus is also re-sampling drill cores from Cominco’s exploration programs at the property between 1988 and 1990. Initial results from the testing include hole 35 that cut 49 metres averaging 2.83 grams gold starting at 223 metres and hole 56 that hit 14.4 metres grading 2.12 grams gold.
Terra Ventures (TAS-V) had earned a 51% interest in the Ren property by spending $1.5 million on exploration, but Novus has since exercised its right to repurchase Terra’s stake by issuing 7.5 million shares to Terra.
In April the company closed a private placement of 7.8 million flow-through shares at 40¢ per share for gross proceeds of $3.1 million.
Novus has 49 million shares outstanding following the repurchase from Terra and recent financing.
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