Vancouver — Add La Ronge Gold (LAR-V) to the list of junior gold explorers that enjoyed triple-digit percentage share gains this quarter.
La Ronge share prices jumped as much as 150% in the first week of March, to a high of $1, after the company announced preliminary assays on its recently acquired gold properties in northern Saskatchewan.
It took the company five months to achieve traction following the acquisition of 41 historic claims covering 529 sq. km on the La Ronge gold belt.
The agreement includes 100%-ownership of two historic gold targets — Preview SW and Twin. Preview SW returned notable grades and lengths for Cameco (CCO-T, CCJ-N) in the late 1980s.
La Ronge completed a 4.1-million-share private placement in late November worth $1.1 million. The company’s goal is to verify an historic 89-hole, 14,100-metre drill program conducted on the Preview deposit that had identified a non-43-101 compliant resource equaling 494,000 tonnes grading 12.34 grams gold or 195,192 contained oz.
Preview’s mineralization is reportedly related to diorite-gabbro sills which extend for 5,200 metres to the northeast across the property.
In early March La Ronge released assays on the first two holes at Preview, both reaching depths of 250 metres at a -45- degree.
Hole 12-120 highlights include: 214 metres carrying 1.63 grams gold starting from 11 metres depth; 3.4 metres averaging 21.7 grams gold from 46 metres; and 4 metres of 11.99 grams gold from 197 metres.
Hole 12-121 includes notable intercepts of: 196.8 metres carrying 1.04 grams gold starting from 8 metres depth; 22.85 metres grading 1.92 grams gold from 101 metres; and 18.25 metres of 2.45 grams gold from 18 metres.
According to La Ronge president Rasool Mohammad the wide lower-grade mineralization surrounding the higher grades in the gold quartz veins should assist the company in establishing a compliant resource estimate at Preview.
La Ronge appointed Gordon Davidson Vice-President of Exploration in late November following the acquisition of the Preview and Twin properties.
Davidson has over 30 years of field experience, with previous successes at Cumberland Resources where he managed the exploration team that developed the Meadowbank gold deposit in Nunavut, later put into production by Agnico-Eagle Mines (AEM-T, AEM-N). Davidson is also credited with playing a role in the discovery of France-based nuclear energy company Areva’s Andrew Lake uranium deposit in the North Thelon basin, Nunavut.
La Ronge reports the Preview drill program will involve a minimum of 2,500 metres, and is geared towards establishing a compliant resource estimate, as well as verifying that the gold mineralization is open in both directions along strike and down dip.
The Twin zone is a siliceous-pyrite and pyrrhotite-rich brecciated unit located at the Wedge Lake project, 156 km north-east of La Ronge. Twin was the target of a 33-hole, 4,290-metre drill program conducted between 1982 and 1984 that identified a non-43-101 compliant historical resource equalling 675,000 tonnes of 5.4 grams gold or 101,2500 contained oz.
La Ronge has planned a 3,500-metre drill program on the Twin target scheduled to start this summer.
The company has 23.2 million shares outstanding with a market cap of $20.5 million, and a fully-diluted cash position of $35 million.
La Ronge’s shares pared gains following the substantial jump on March 1, falling 9% to close at 80¢ on a 3.98-million trade volume at presstime.
Be the first to comment on "La Ronge soars 150% on preliminary results at Preview"