A newcomer in the junior mining sector, Canadian States Gas (CDN) has experienced a meteoric rise in its share price after releasing results from exploration in Labrador.
The junior shot over the $20 level after releasing preliminary assay results from two of three holes drilled to test a surface gossan in the southeastern quadrant of its 1515M claim block. The two holes that intersected the G zone were drilled from the same collar, at angles of 60 and 90!, respectively.
Hole 95-2 returned a 29-ft. intersection which averaged 1.73% nickel, 0.52% copper and 0.1% cobalt, while hole 95-3 returned 30 ft. averaging 1.77% nickel, 0.81% copper and 0.12% cobalt. The first hole failed to intercept the target.
The assays were performed by John van Engelen of Toronto-based Chauncey Labs. Canadian States President Robert Salna says he is aware that van Engelen’s assaying work has been challenged in the past by securities regulators. The Vancouver Stock Exchange, in particular, sent out an engineering firm that was unable to duplicate van Engelen’s work in Nevada’s Moapa Valley gold project.
“Those were gold assays, and there was some problem [with the nature of the mineralization],” Salna told The Northern Miner. He added that Canadian States Gas plans to have check assays performed at another laboratory.
Meanwhile, Canadian States Gas intends to continue drilling for as long as weather permits, including more deep drilling on the G zone. The company is currently drill-testing a deep portion of the E zone, about 2 km northeast of the G zone.
Meanwhile, said Salna, the company is negotiating “a potential strategic partnership” with several major companies with respect to its 1514M claim block.
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