Investors slammed shares in SKN Resources (SRL-V) after the company announced the latest sampling results from the Tuobuka gold project in Yunnan Province, China.
The samples were collected from 21 artisanal mining tunnels, which spread over a 2-km stretch along the lower gold-in-soil anomaly zone at Tuobuka. The project covers an exploration permit spanning 24.6 sq. km, about 2 km south of the Boka 7 zone of Southwestern Resources‘ (SWG-T) Boka gold project.
The tunnel sampling was highlighted by a 1.5-metre interval running 20.6 grams gold per tonne. Two grab samples from separate tunnels returned 13 grams and 13.8 grams. In general, grades range from less than 1 gram gold to around 3 grams, with a few values as high as 7.3 grams; widths are typically in the 2-3-metre range, but stretch as high as 19.5 metres. Most of the material is oxidized.
Meanwhile, hole S15-01, designed to test the upper mineralization horizon, which represents a 3-km extension of the Boka 7 zone, managed to yield gold grades of just 0.1 to 0.19 gram. The hole was sunk about 500 metres from Tuobuka’s northern boundary and about 2.5 km from Boka 7.
SKN has three drills working to sink another five holes on the upper mineralization horizon plus four holes on the lower zone. The two parallel zones represent gold-in-soil anomalies, each about 3 km long.
In August, SKN inked a deal with Chinese-based Kunming Gold to form a sino-foreign joint venture to explore Tuobuka. SKN can earn a 80% stake by making certain cash payments to Kunming over three years. SKN already has completed its first cash payment. Once the earn-in is complete, cash contributions to Jin-Chang Jiang Mining will be made on a pro rata basis. Kunming Gold’s interest may be diluted to not less than 10% if the company elects not to make cash contributions.
Shares in SKN were nearly halved to $1.99 in late afternoon trading in Vancouver following the news on Mar. 12.
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