JBY finding more gold in old drillcores

James Bay Minerals (ASX: JBY) just added another stream of newsflow we can look forward to from its gold project in Nevada, USA.

JBY’s project currently has a 1.22M ounce gold equivalent foreign resource estimate.

JBY is currently running a 2,000m drill program looking to add to that resource at depth and towards the east of the current resource footprint.

We have written about it before, but JBY’s resource is split into two different components:

1. Shallow oxide mineralisation - hosting making up ~424k ounces (gold equivalent) of JBY’s current foreign resource estimate.
2. Deeper higher grade skarn hosted mineralisation - making up ~796k ounces (gold equivalent) of JBY’s current foreign resource estimate.

Today, JBY kicked off a review of drillcore that sits between the two parts of its resource.

Until now, most of that section hasn’t been sampled for gold and silver - most of the old holes were selectively sampled across that section…

Interestingly, the drillcore that was sampled had returned some pretty solid intercepts - all of which currently sit outside of JBY’s resource estimate:

Here is one of the drillcore that was sampled (WI-002) which had a 21.7m at 1g/t gold intercept inside that middle section:

Now, JBY is going back and logging/sampling all of the available historic diamond drillcore to see if that middle section returns similar results.

Data from one drillhole is already in the lab and assays are expected in the first half of 2025.

Any positive news from these re-assayed holes will be completely unexpected upside for us (and probably to the market) - this sits outside of our JBY Investment Memo.

JBY currently drilling - results could come at any time

As mentioned earlier, JBY is currently in the middle of a 2,000m RC/diamond drill program.

With this drill program, it looks to us like JBY is going for:

1. Extensions to the east with the RC rig, outside of the current resource footprint.

AND

2. Extensions at depth under the existing resource with deeper diamond holes.

Here is what it looks like on a map:

We like that JBY is choosing to go for high risk high reward extensional holes straight off the bat.

Extensional holes are usually what get the market most interested and (IF they come off) generate the most value from a share price perspective.

Ultimately we are hoping to see JBY hit extensions both at depth and to the east of its foreign resource area which we hope eventually leads into resource upgrades for the project overall.

JBY advancing its project forms the basis for our Big Bet which is as follows:

Our JBY Big Bet:

“JBY re-rates to a +$300M market cap by expanding its large US gold resource and moving into development studies and/or attracting a takeover bid at multiples of our Initial Entry Price”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done, many risks involved - just some of which we list in our JBY Investment Memo. Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.

What’s next for JBY?

🔄 Drill results from Independence gold project in Nevada, USA.

We are looking forward to the drill results from JBY’s 2,000m drill program.

We are especially interested in seeing what comes from the results to the east of the current resource outline.

🔄 Re assay of old diamond drillcores

After today’s news we are looking forward to the results from the re-assayed diamond drillcores.

If the area in between JBY’s shallow (Oxide) and deeper (Skarn) mineralisation is also mineralised then it could lead to upgrades to the company’s foreign existing resource estimate.

🔄 Assays from rock chip sampling program

We also noticed in today’s announcement that JBY that “Mapping and rock chip sampling across the Project” is now complete.

JBY mentioned that the assays from that program are expected before the end of December.

At this stage, we are more interested in seeing what comes from the drilling/re-assaying news.