Golden Tag Resources Ltd. (TSXV:GOG)
A junior exploration company explores for high-grade silver deposits. The Company holds a 100% interest, subject to a 2% NSR, in the San Diego property in Durango State, Mexico.
Mining companies don’t often post selfies of their exploration progress, but that’s exactly what one junior exploration company did last week. Golden Tag (TSXV:GOG), a silver exploration mining company exploring and developing a property in San Diego, Mexico, just posted images of its exploration operations on Twitter.
Many investors don’t fully understand what the mining exploration process entails and how important a drilling program’s progress is to the value of the asset being explored. The images provided by GOG may help investors better understand the company’s overall progress and could be a signal that Golden Tag is about to release important news regarding the results of its exploration.
Golden Tag is proving that they are making progress by publishing photos of their work. Last week they took to Twitter to showcase samples taken from their most recently drilling, tweeting, “We are busy logging core and processing samples – should have another 600+ samples being shipped out on Monday.” Followed by another Tweet just a few days later, updating followers that 356 more samples had been shipped.
But even before releasing this exciting news, Golden Tag Resources had made major progress on the exploration stage.
Regarding their 100% wholly-owned San Diego Project, one of the largest undeveloped silver projects in Mexico, Golden Tag recently announced it had obtained promising initial results from a resource expansion and exploration drilling program started late last year.
The 4,500 metre drill exploration program, of which approximately 2,700 metres of drilling has been completed to date, has yielded 1,787 core samples currently being analyzed, with the assay report upcoming.
Infill sampling on existing diamond drill holes has significantly expanded the area of identified mineralized zones. Two holes, in particular, have yielded positive results, and in one case, increased previously reported grades by 10%.
Golden Tag also announced they had tapped the talent of Exploration Manger Rafael Puente to join the team in Mexico. Puente, who has previously worked with Argonaut Gold and Primero Mining, will be a valuable addition to Golden Tag.
What are Core Samples?
Core samples allow geologists to analyze the composition of some naturally occurring material. In the case of mineral exploration, the majority of core samples are taken by drilling into sediment or rock with special hollowed-out steel tubes, known as core drills. The result is a “core hole” from which the core sample was removed.
Picture source: https://geokansas.ku.edu/drill-cores-and-cuttings
What is Core Logging?
Core logging is a systematic approach to recording and measuring as much information as possible from the core sample.
Accurate core logging data is essential to determining and verifying a potential mineral deposit’s grade, size, and mineability.
In its most recent NI 43-101, a technical mineral exploration report, Golden Tag core logging indicated considerably broader mineralization in two zones than previously thought.
Mineral exploration is a complex process of searching for new mineral deposits, which typically stem outward from areas of previously discovered ore deposits. However, drilling does not begin until promising areas have been identified through various geological, geophysical, and geochemical surveys.
Once these target zones have been identified, samples are dilled from the orebody and sent out for geological analysis and an assay report assembled.
The purpose of an exploration project is to find mineral deposits. The core drilling, sampling, and core logging provide the data upon which estimates of a potential deposit’s quantity and grade can be made.
The assay report provides essential information on the core samples taken, which will influence the future drill sites, and is relevant to the mining company and silver investors alike. The accuracy of assay estimates depends heavily on the samples taken, the judgment used when selecting sample intervals, and the weighting of individual assays.
Mineral deposits can be irregularly distributed and present in varying degrees of purity through the target zone. Assays of individual samples can therefore have a high level of variance through the sampling area.
Only once a mining company is confident they have discovered a financially viable despot will a project progress to the planning stage.
The planning stage itself involves several steps to determine the environmental and safety impact of a development and the economic viability of the project with regards to the cost of mining a site. Companies may have to create multiple plans before advancing.
Golden Tag Resources Ltd. (TSXV:GOG) is a junior exploration company searching for high-grade silver deposits. The company holds a 100% interest, subject to a 2% NSR, in the San Diego property in Durango State, Mexico.
Junior exploration companies like Golden Tag, tend to be smaller companies involved almost exclusively in the exploration and development of mineral deposits. They are higher risk than investing in silver, however, the risk comes with far greater profit potential. A junior mining company that discovers a significant mineral deposit could return more in a month than investing in silver will in years.