On Tuesday, Tower Resources, Ltd (OTC:TWRFF) (TSXV:TWR) announced the assay results for three previously uncut core sections from its four-hole diamond drilling program (RN21-024 to 027), which was completed in December 2021.
This exploratory program, located on Tower’s Rabbit North property near Kamloops, British Columbia, resulted in a gold discovery, which was announced on Jan. 11 after the assay results from hole 026 returned with an intercept of 1.40 grams per ton of gold (g/t Au) over 95 meters, within which 19.2 meters yielded 4.21 g/t Au.
What Happened: Although the results from the three remaining holes (0.24, 0.25 and 0.27) were less impressive, hole 027 intersected two parallel footwall zones, yielding 1.32 g/t Au over 9.7 meters and 2.09 g/t Au over 5.2 meters, helping Tower delineate subsequent drilling programs. Holes 024 and 025 were drilled blindly prior to the company hitting its discovery hole (026).
Prior to Tuesday’s results, Tower announced on May 3 the completion of its follow-up six-hole diamond drilling program, which resulted in the company naming its gold discovery the Lightening Zone, to signify how quickly the company made the discovery after completing its initial till heavy mineral survey just six months prior.
The assays from holes 028 to 033 are expected soon, and according to Tower’s May 3 press release, “All holes appear to have intersected the Lightning Zone based on intense fracturing with visible bleaching, silicification and pyritization similar to that associated with the zone in Hole 026.”
Why It Matters: Large gold discoveries are rare, and according to the till results Tower obtained last summer, the company has “identified a classic gold grain dispersal train that is stronger than any known trains associated with glaciated porphyry Cu-Au deposits, including the giant Pebble deposit in Alaska.”
Tower’s Rabit North property also shows promise due to its location, positioned between New Gold, Inc’s (NYSE:NGD) New Afton copper and gold mine and Teck Resources, Ltd.’s (NYSE:TECK) Highland Valley copper and molybdenum mine.
As Tower continues to work toward proving its gold resource, its well-established and metal-producing neighbors are sure to be watching.
What’s Next: Tower plans to resume drilling in mid-June, following the return of the assays from its most recent drilling program. The program will allow Tower to further guide investors on just how large its gold discovery may be. Investors are also awaiting the upcomming results for holes 028 to 033.
What’s Important To Investors: During a time when investors are cognizant of how companies spend their money, Tower was able to quickly and economically make its initial discovery, with the initial four drill holes costing $350,000. Considering the company has drilled six holes since then, the total expenditure can be assumed to come in at roughly $1 million.
“Having a new, significant discovery nestled between two operating mines is a bonus, but more important is that Kamloops is one of the most cost-effective mining districts in central B.C., with easy access to labor, housing and materials,” President and CEO Joe Dhami told Benzinga.
