AVM intercepts 66.7g/t gold - gold prices now over A$7,000 per ounce
Our Investment Advance Metals (ASX: AVM) just hit visible gold ~100m to the east of its Happy Valley project in Victoria…
Late last year AVM reported visible gold from its deepest hole at the project.
That visible gold was ~140m below any previous hit AND it confirmed there was gold over ~500m vertical extent on the project.
(assays from that deeper section are still pending)
Today, AVM hit a 0.6 metre, 66.7g/t gold intercept from a step out hole at the previously unknown structure.
(source)
In our last AVM note we wrote about how these step out holes (if they come in) could be what starts the market comparisons between AVM and $2.6BN Southern Cross Gold $160M capped Falcon Metals.
IF AVM can make new discoveries on those targets, the market could finally start to draw comparisons between it and Southern Cross Gold.
The difference between the two projects right now is that AVM has one gold system (Happy Valley) whereas Southern Cross’ is made up of several high grade vein systems…
Some exploration success by AVM could change that though.
AVM is currently testing that theory here and has drillholes/assays from targets stepping out in multiple directions from the known Happy Valley structures:
(source)
AVM has one rig at Happy Valley and a second rig that just completed 2 holes at the “Queen of the Hills” prospect, assays from the holes drilled to date are due next month.
What else is AVM up to?
AVM has three silver assets in Mexico with a combined ~100M silver ounces in foreign resources across 3 projects:
Currently it is drilling the Yoquivo project project, which hosts a 17.2M Oz silver equivalent foreign resource estimate.
AVM kicked off a drill program on the project back in November which we covered here.
AVM put out assays from the first hole of the program recently, which included a monster hit of - 14.1m at 320 g/t silver equivalent.
(including thinner but very high grade intervals of 1.5m at 2,663 g/t silver equivalent and 0.67 metres at 5,739g/t silver equivalent).
(source)
AVM is also in the middle of a 4,500m resampling program here - which the recent announcement stated “historic core sampling program nearing completion”, so we can expect an update on this soon. (source)
We covered this update here, which goes into more detail of what AVM is doing with its Mexican silver projects.
What’s next for AVM?
AVM provided a nice outlook chart so which details what we can expect to see and when:
(source)
Assay results from AVM’s Victorian gold project 🔄
With drilling continuing at the Victorian gold project, assays have started to be released so we await for the results to continue.
AVM had a second drill rig arrive on site recently, so we expect the rate of assays to ramp up, with AVM confirming 2 assays from here are due in February. (source)
Drilling results from the Yoquivo silver project in Mexico 🔄
We are looking forward to the results from the five assays that are currently in the lab as well as any other drill results that come from the current round of drilling.
We are especially interested in those holes testing for depth extensions of the current resource on the project:
(source)
Sampling of old drillcore at the Yoquivo silver project in Mexico 🔄
We are also looking forward to seeing the sampling results from the untested parts of AVM’s Yoquivo project in Mexico continuing.
The old drilling hadn’t been completely tested in the past so we should see the results from this in the coming weeks (hopefully the gaps in the veins from the image below are also mineralised)
The company has detailed that results from this are ongoing and will be used along with the recent diamond drilling results to update the JORC Resource for the project in Q1 next year.
(Source)
