Delta Resources shares soar after reporting bonanza gold grades in Ontario

Delta Resources (TSXV: DLTA) is closing in on a 52-week high on Friday following the release of bonanza-grade results from drilling at its Delta-1 gold project, located 50 km west of Thunder Bay, Ont.

The latest results include the final four holes from the initial drilling earlier this year, plus initial observations on the first step-out holes from the 5,000-metre follow-up program.

The highlight from the first phase of drilling was hole D1-23-38, which cut exceptionally high gold grades of 1,636 grams per tonne and 697 grams per tonne, both over 1 metre. The mineralization was encountered in narrower intervals east of a northeast-trending cross fault that displaced the mineralized zone towards the south.

Delta said it is unclear at this point how this high-grade mineralization correlates with the very wide intervals of lower-grade material west of the cross structure. Vein widths, density of veining and grade distribution can be highly variable within these large gold systems, and hole D1-23-38 is typical of that variability along the favourable structure and geophysical target, it added.

Another hole (D1-23-37) was collared on the same drill-pad as a 2022 drill hole and intercepted a wide zone of alteration and low-grade gold mineralization in the Alpha and Beta zones with the Gamma zone returning 2.06 grams gold over 17.5 metres.

The step-out drilling, which is targeting the “Deep Blue” magnetic low anomaly spanning over 1.5 km southeast from drill hole D1-23-38, is also showing signs of a larger mineralized system. Two holes drilled 100 metres east appear to mark a return to the very wide intervals of gold mineralization, with visible gold observed in both, the company said.

“These bonanza grades at Delta-1 are very impressive, but more important is the fact that we are doing large, 100-metre step-outs and are still consistently hitting strong alteration with higher-grade gold segments hosted within a broader zone of low- to moderate-grade gold. This speaks to the strength of the mineralizing system and the upside potential as our drilling progresses eastward into the larger ‘Deep Blue’ target area,” André Tessier, CEO of Delta Resources, commented.

The Delta-1 project covers a 17-km strike extent of the Shebandowan structural zone. The 58.8-sq. km property has been dormant since 2003, until it was optioned by Delta Resources in 2019.

Shares of Delta Resources were up 13.7% by 12:05 p.m. in Toronto, giving the Kingston, Ontario-based gold junior a market capitalization of $39.2 million.