Don't Overcomplicate This Easy Gold Opportunity

(MENAFN- Baystreet.ca) Don't Overcomplicate This Easy Gold Opportunity

Anyone that has spent any time around geologists understands that they have their own vocabulary that takes some understanding to break down into the language for larger audiences. Most P.Geo's providing metal exploration oversight tend to be pretty low key, allowing the data, albeit from a magnetic survey, a surface sample or deep underground drilling, to speak for itself. Once a trader learns to read between the lines of P.Geo-speak, though, there can be plenty of reasons to get excited about pending drill results.

Take the latest news from Blue Star Gold Corp. (TSX-Venture:BAU) (OTCPK:BAUFF), an upstart making a name for itself in Nunavut. Blue Star is hoping that its portfolio of projects (Ulu, Hood River, and Roma) in the High Lake Belt in the Kitikmeot region of Nunavut are on par with the Hope Bay Belt to the northeast and Back River Belt to the southeast that are known to host millions of ounces of gold. To lend a little color in layman's terms, consider that Agnico Eagle (TSX:AEM)(NYSE:AEM) agreed to pay about $287 million in January to acquire TMAC Resources, whose primary asset was the Doris Mine at its Hope Bay project.

The High Lake Belt is about 135 kilometers long of relatively unexplored ground with favorable geology, including an established gold resource at Blue Star's Ulu project at the southern end of the belt. Controlling over 16,000 hectares (that's about 62 square miles) of highly prospective mineral properties in the High Lake Belt, Blue Star is the single largest title holder in the greenstone belt, which has the potential to be a multi-million gold ounce belt like its neighbors.

Past work by others at Ulu included 1.7 kilometers of underground development and over 400 diamond drill holes cutting 88,330 meters of core at the Flood Zone, with the mineralization deemed to remain open on-strike and at depth. A historical resource in 2015, which Blue Star is aiming to validate and expand upon, shows the Flood and Gnu Zones at Ulu to contain 605,000 gold ounces measured and indicated (M&I) and 226,000 ounces inferred.

The deepest intersection of potentially mineable width at the Flood Zone to date is 14.9 grams per tonne gold (g/t Au) over 7.7 meters at 610 meters (2,001 feet) below surface. Metallurgical testing of gold mineralization from the Flood Zone shows a high recovery rate in excess of 90% by gravity, flotation and cyanidation (common practices in gold processing).

It is also known that the mineralization at the Flood Zone is quite similar to Newmont Goldcorp's (TSX:NEM)(NYSE:NGT) Éléonore, one of the largest gold mines in Quebec, hosting over seven million ounces of gold.

While earlier in stage, the results at Ulu are deserved of attention. Understand that the M&I gold at Sabina Gold & Silver's (TSX:SBB) (OTCQX:SGSVF) Back River property assayed 5.88 g/t and the M&I at Agnico's was 7.4 g/t. The M&I resource estimate at Blue Star's Ulu was 7.5 g/t gold, better than either of the bigger peer's discoveries.

Now, Blue Star is following the three golden rules of mining exploration to build value: drill, drill and drill some more. The exact drill locations are determined by modern technologies generating 2D and 3D models from every bit of historical and current data. Over 7,600 meters were drilled in 38 diamond drill holes in a 2020 program, 10 aiming to expand the known resources in the Ulu and Gnu Zones and 28 testing exploration targets, including those further north in the North Fold Nose Zone.

Blue Star has two diamond drill rigs running on its 2021 exploration program, which also includes maiden work at Roma. On September 1, the company provided an update, saying 3,000 meters of drilling across 14 holes were completed, representing about 55% of the planned program.

Only a handful of results have been returned so far, which underpin optimism for a complete data set in the future. For example, a follow-up hole below an existing hole in the Gnu area intersected a new vein system returning results of 8.15 meters grading 20.8 g/t Au starting at 162.1 meters. Just before that, at 157.86 meters, 0.98 meters grading 26.5 g/t Au was cut. According to the company,“Visible gold was observed while core logging” on more than one occasion, with official results still pending for the rest of the hole.

Other early data is interpreted with P.Geo descriptions, such as "disseminated fine-grained acicular arsenopyrite mineralization and zones of intense replacement of basalt breccia fragments with massive, felted acicular arsenopyrite." Retail investors will be glad to know that this points to increased likelihood to expand the gold mineralization.

Darren Lindsay, Vice President Exploration at Blue Star, says that management is remaining“very adaptive to the rocks we see coming from each target test” when it comes to defining new targets.

Shares of BAU closed on Thursday at $0.74 and are looking to close over their 200-day moving average for the first time since March 2, which would add a bullish technical signal to the already bullish fundamentals being displayed of late.

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