When equity markets crashed and financing sources dried up in late 2008 and early 2009, Goldcliff Resources (GCN-V) did what many other juniors did and put development projects on ice to conserve cash.
“We looked at a dwindling treasury and made a decision to secure a bunch of core and assay it at a later date,” explains George Sanders, the company’s president. “Junior equity markets were getting destroyed and [new] information would do nothing to prevent that. To go ahead with that type of an assay bill would have put us into a difficult position.”
Recent financings, however, have put enough money into Goldcliff’s hands to complete core cutting and sampling, and results are now out for nine holes drilled late in the 2008 field season on the York- Viking zone of its Panorama Ridge gold property near Hedley, B.C.
The results include several multi-metre intersections of more than 1 gram gold per tonne. Highlights include 1.55 grams gold per tonne over 44.8 metres in Hole 190, and 1.23 grams gold over 10.12 metres in hole 183. Other intersections included 1.01 grams gold over 10 metres in hole 187, 20 metres of 1.01 grams gold in hole 189 and a section in hole 190 that returned 2.02 grams gold over 27.53 metres.
The drilling at the York-Viking zone were infill and zone extension holes. The infill holes were in the central part of the zone and the extension holes were towards the southwest margins.
Goldcliff’s Panorama Ridge property, about 230 km east of Vancouver and 40 km north of Washington State, is 4 km east of the historic Nickel Plate-Mascot mine, which has produced 2.5 million ounces of gold.
The junior staked the property in 2000 after prospecting new logging road outcrops that exposed skarn alteration. Since 2003 the company has discovered several gold showings, four potentially economic gold zones and completed 190 drill holes totalling 16,611 metres. All of the results have been reported in the database with the exception of the nine recent holes and an additional 3,000 metres worth of drill results that is forecast to be completed in the next two months, Sanders says.
Sanders wants to have all the drill results reported before raising more money to continue drilling another 10,000 metres at Panorama Ridge.
“We haven’t found the limits to the mineralization yet, and we haven’t sufficiently followed up trenchwork with drilling, so we have felt that up until now we haven’t had sufficient spacing on the drilling nor have we found the limits to the zones,” he explains. “Rushing to a resource calculation would be a premature exercise and a waste of money but another 10,000 metres should fill the database and allow us to do an initial calculation.”
Sanders says when the time comes to raise more money, it shouldn’t be too difficult. “We’re in a good gold environment and we’ve had some good news,” he says. “I don’t expect it will be too difficult to raise $2-5 million sometime this spring. But we’d like to have all the information into the public domain before we do that.”
At presstime Goldcliff was trading at 16.5¢ a share. Over the last year the company has traded in a range of 6-18¢ per share.
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