ELKO — The first exploratory drill hole at the Goldstorm Project displays characteristics of some of Nevada’s most prolific gold mines, Stakeholder Gold Corp. announced Jan. 16.

The company recently completed its first core drill hole on property north of Klondex Gold Mines Ltd.’s Midas mine and Newmont Mining Corp.’s Twin Creeks mine. IDEA Drilling performed the drilling.

“We had a bunch of surprises with this first hole,” said Rick Redfern, geological consultant and project manager for the Goldstorm Project. “It looks like potentially a new discovery. We are looking for another Midas mine. That’s the kind of target range we are looking for.”

A wide zone of highly altered basaltic rocks containing quartz-silica-pyrite mineralization was discovered in the upper part of the hole, from a depth of 20 to 438 feet, the company reported. Farther down, new zones of silica-pyrite-(naumannite) mineralization were also found. Drilling took place at an angle of about 70 degrees, Redfern said.

“Discovery of multiple mineralized zones and an extensive, weathered and fractured structural system near to surface beginning at only 20 feet of depth and extending to over 1,200 feet of depth, were surprises,” said Christopher J. Berlet, president and CEO of Stakeholder Gold, a Canadian mineral exploration company headquartered in Toronto.

SGC submitted samples to an Elko laboratory for fire assay analysis for gold and silver, and expects to have results in about two weeks. More drilling and further assays will be required to back up the visually observed mineralization, but Redfern said the project is off to a “great start” with a good team and financing, aided by high gold prices. Capital investment so far totals about $300,000-$400,000, he said.

“We thought we were only looking for underground targets,” Redfern said. “But now … it looks like there is potential for open pit targets as well at Goldstorm.”

The company has started a second hole and has a third planned on unpatented lode claims that it controls. Total combined ground position encompasses 3,806 contiguous acres.

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