Guest Post, Equity.Guru highlights X-Terra Resources’ metallurgical work returning 79 g/t gold

The following is a Guest Post from Canadian junior natural resources company expert Greg Nolan was featured on Equity.Guru. It does a great job delivering both the latest news, and the context in which to judge the Company’s progress. X-Terra Resources (TSX-V: XTT) is an advertiser on Epstein Research, which is why I’m happy to share this article.

X-Terra (XTT.V) metallurgical results yield avg grade of 79 g/t Au

We’ve been watching the $1,850 level—the front line in the clash between gold bulls and bears—with keen interest here at Equity Guru (blue line, chart below).

Recent dovish tones out of the Fed—Chairman Powell’s resolve to continue asset purchases until “the job is well and truly done”—goosed the metals but good, generating significant upward price trajectory over the past three trading sessions.

This led to a selloff in the (negatively correlated) U.S. Dollar.

After breaking through support at $91, the greenback continued its decline. This could turn into a downward spiral—there’s nothing but air between $88 and $80 (the 2014 low).

7-year weekly chart

Getting back to gold, last week we noted how the 50-period simple moving average (SMA) is likely being surveilled by a whole universe of traders. After yesterday’s fireworks, we now have a clean, decisive break above that 50 SMA (blue line, chart below).

Got gold (and silver)?

X-Terra Resources (XTT.V)

X-Terra’s 280 sq. km flagship Grog and Northwest projects are located along the McKenzie Gulch Fault in Northeastern New Brunswick. The target at Grog is a large intrusion-related epithermal system.

An 11-hole drill program conducted earlier this year yielded a new discovery in hole GRG-20-012: 0.41 g/t gold over 36 meters (including 0.46 g/t Au over 31 m, and 7.59 g/t over 0.6 meters) at a vertical depth of 81 meters.

On September 21st the Company established a good correlation between geophysics & geochemistry at Grog.

A total of 128 geochemical samples were collected over 3 parallel lines (with approx 150 m between lines) — the samples were taken every 25 m. The objective was to confirm the position of the gold-bearing structure at Grog and test for the possibility of parallel signatures identified via 3-D magnetic inversion analysis.

B Horizon samples allowed X-Terra to determine rock types, alteration patterns, and precise levels of pathfinder elements such as Arsenic (As) & Antimony (Sb). The results yielded values up to 36 ppb Au, 291 ppm As and 25.8 ppm Sb.

Elevated gold anomalies were identified on two of the three lines centered on the Grog target.

The arsenic & antimony elements complement the signature, offering a better read of the Grog target (antimony and arsenic are two key pathfinders for gold).

The combined, superimposed Au-As-Sb anomaly now outlines this target to 250 m in width while also extending it ~750 m. Excitingly enough, the same type of anomaly was identified 700 m east-south-east of the Grog target on a parallel trend.

Quoting Michael Ferreira, X-Terra CEO, from that September 21st press release:

The correlation obtained during this phase of works between low mag, high resistivity and gold-arsenic-anomaly at the margin can be considered a significant step up in our understanding of the Grog system. Not only was the kilometric strike length of the known gold system reached and confirmed by a common signature, but our hypothesis was validated that two other parallel trends of the same orientation and thickness creating a 5 sq. km target. This threshold was an important step to reach considering that, this scale is widely accepted as precedent for exploring a deposit of a significant size.”

With a better understanding of Grog’s subsurface controls, the Company then set off to drill.

X-TERRA RESOURCES BEGINS DRILLING WITH TWO DRILLS AT THE GROG AND NORTHWEST PROPERTIES IN NEW BRUNSWICK

The following is a quote from my November 1st EG roundup:

During a recent chat with CEO Ferreira, I learned that drilling at Grog and Rim progressed without a hitch. Having worked as a contractor on highly technical, logistically challenging projects in the resource sector myself, I was impressed with the efficiencies Ferreira was able to deploy during this campaign.

I also learned that at least one hole at Grog tagged multiple zones of mineralization. Of course, hitting the right rock doesn’t necessarily guarantee economic values.

On December 15th, the X-Terra dropped the following headline:

X-Terra Resources Rim Vein Metallurgical Results Yield Average Grade of 79 g/t Au

Here, the Company reported drill results (and metallurgy) from its Rim vein target. This maiden drill program tagged a 9.5-meter cluster of gold-bearing veins 50 meters under the RIM surface vein showing.

“The drill program consisted of 472.5 meters over four holes to test a 400-meter section of isolated gold-bearing anomalies. This included the Rim vein surface discovery, where two holes, RIM-20-03 and RIM-20-04, targeted the Rim vein structure at depth and intersected multiple quartz veins in succession ranging from 10 cm to 1 meter in width.”

Visible gold was noted in the core of Hole RM-20-04.

“The veins all exhibited crack and seal and breccia with thicknesses varying from a few millimetres to 0.5 metre inside a stockwork style structure. The gold results are closely associated with fine disseminated sulphides along with stylolites throughout the quartz veins. Hole RIM-20-02 located about 200 metres northwest of the Rim vein also intersected a group of quartz veins and stockworks over the last 20 metres of the hole at a depth of 80 metres.”

The structure is interpreted to be related to a parasitic fold hinge of kilometric influence trending north which has been identified via the regional magnetic survey. This north-east structure flank was cross-cut by drilling where quartz veining and gold values are associated with a siltstone-sandstone contact. 

It is noteworthy that the largest part of the fold hinge is located approximately 500 metres north of the drill area which is not outcropping and has never been subjected to any type of exploration. X-Terra plans to follow up in this area as soon as possible.

X-Terra drills new gold bearing veins (CNW Group/X-Terra Resources Inc.)

Additionally, metallurgical testing was conducted on a 129-kg bulk sample of surface (vein) material where an average grade of 79 g/t Au, and a concentrate grade of 35,317 g/t Au, was achieved.

Based on these higher grade surface values, it’s possible that the drill bit missed the richer veins by a hair.

This press release went on to state:

“This is an important step forward for the Rim vein target, as it remains open in all directions and only four drill holes have been completed on this target to date. X-Terra is now looking forward to expanding the work and drilling program at Rim very early in 2021 to test the siltstone/sandstone contact, which appears to be controlling the gold mineralization as well as the dominant fold hinge located 500 metres north of this area.”

IMO, the main event here is the Grog target, and we should see those assays shortly. Also on deck, we have till sampling results out of the Company’s wholly-owned Troilus East property along the Frotet-Evans greenstone belt in northern Québec.

X-Terra has begun to receive portions of its geochemical results, MMI and Humus from its Troilus East property which will be used to determine the next phase of work, that being the IP ground geophysics which will be used to establish the properties first-ever drill targets. These results will be published once the information is compiled by X-Terra’s technical team.

Full disclosure: X-Terra Resources is an Equity Guru marketing client.