Foundation soars on the back of a Coldstream

Wide zones of gold intercepts were all the market needed to send Foundation Resources’ (FDN-V) shares flying.

The Vancouver-based company released the first results from its winter drill program at its recently acquired Coldstream property in Western Ontario.

Assays were highlighted by intersections of 13.55 grams gold over 3 metres within a 27.8 metre intercept that averaged 4.88 grams gold and 11.8 grams gold over 1.2 metres within a 47.25 metres intercept averaging 1.3 grams gold.

Those numbers met with an enthusiastic response from the market on March 30 as investors sent Foundation shares up to 52¢ from their previous day close of 23¢ — an astounding 126% single day gain that was made on a volume of over 9 million share traded.

But Tuesday’s frenzy did not exhaust all of the demand for the stock. The following day, on March 31, Foundation shares shot up to 75¢ in early day trading before settling down and closing the day at 54¢ on still heavy volume of over 7 million shares.

Up until the breakout, Foundation shares had been trading between 13¢ and 25¢ since July of last year.

Foundation acquired its option to earn into 70% of Coldstream in June of last year. The closing of the deal saw Foundation issue 500,000 of its shares to Alto Ventures (ATV-V).

As for the assay results, they are the first to be released from the winter program and were drilled just 50 metres apart from one another in an area that is known as the Main Zone.

The company says gold in both holes is associated with 1 to 8% disseminated to blebby pyrite, and occurs within strongly sheared and hydrothermally altered zone of mafic to intermediate metavolcanics and quartz-feldspar porphyry intrusive rocks.

It estimates true widths to be roughly 75% of the reported widths.

In all, nine holes for 2,090 metres were drilled as part of the program, with the results from the other seven holes pending.

Drilling was done to in-fill gaps between the widely spaced historic drill holes and to confirm and expand non-NI 43-101 compliant resource of 5.1 million tonnes grading 1.43 grams gold for 234,000 contained oz. of gold.

That estimate was done by Noranda back in 1991 and took into account three zones: the North, Main and East zones.

A fourth zone further east of the resource, known as the Sanders zone was drill-delineated both by Lacana Mining in 1989 and Alto Ventures in 2006. Foundation’s drill program also tested the zone and it says it will release results on the zone as they become available.