Nuukfjord’s drilling fails to impress

The first phase of drilling at Nuukfjord Gold’s (NUU-T) Storo gold project in Greenland yielded an impressive hole but failed to meet market expectations.

The show stopper was hole 54 which returned 28.75 metres grading 6.74 grams gold.

Unfortunately for the company, the other holes were not as impressive with the only other notable intercepts being 3.22 metres grading 7.65 grams gold and 4.38 metres grading 2.3 grams gold.

The results sent the company’s shares down 12% to 29.5¢ in Toronto on Aug. 12 on a heavy volume of 787,716 shares traded.

Hole 54 was an infill hole that was sent into the central portion of what is known as the Main zone at the project. Nuukfjord says historic drilling in the area also returned highly anomalous gold values.

The drill program was made up of 15 diamond drill holes for 2,225 meters.

Storo hosts two distinct gold zones, BD and the Main zone with the BD zone lying beneath the higher grade Main zone at the base of the Qingaag Mountain. The BD zone, however, continues beyond the Main zone and extends up the mountain’s side.

Nuukfjord targeted the BD zone with five drill holes, while the remaining 10 were sent down into the Main zone.

The Vancouver-based company says the drilling has helped it expanding on the structural interpretations made by the former operator of the project, Nuna Minerals. It now says the mineralized area is composed of gold bearing quartz veins, along with essential sulphide mineralization that are bound within a structural corridor defined by the axial plane of a broad anticline.

Storo is located on the island of Storo in central Nuukfjord, about 40 km northeast of Greenland’s capital city Nuuk.

Discovered in 1994 the property was explored first by Nuna Oil and then by Nuna Minerals, which drilled 65 diamond drill holes for over 12,000 metres and did preliminary metallurgical tests.

The company describes Storo as a late-Archaean deposit that outcrops on the northeast slope of Qingaag Mountain and says it is part of a larger gold mineralized tract which made up of a number of gold prospects within a 15 sq. km area between the two distinct mountain ranges.