FULL DISCLOSURE: Canacom Group is long the equity of Questcorp Mining.
Questcorp Mining (CSE: QQQ) is accelerating its Phase 2 exploration program at the La Union project in Sonora, Mexico, following the identification of a new gold system that has altered the company’s understanding of the property’s potential.
The decision to fast-track work comes after initial drilling at the Luis Hill target intersected 42 meters grading 0.3 g/t gold. Mineralization suggests that Carlin-type deposit, which is often found in Nevada, may be present at the target. This discovery suggests the presence of a much larger mineralized system than previously modeled, with the current program set to consist of detailed mapping, sampling, and structural interpretation in an effort to better define the footprint.
The current program focuses on five high-priority targets. At the historic Union Mine, field teams are conducting underground mapping and sampling to extend a previously reported high-grade interval of 20.2 g/t gold and 226 g/t silver over 30 meters. At Famosa North, Questcorp is looking to conduct mapping and sampling in advance of a maiden drill effort. Union North and Esperanza meanwhile will see exploration work to advance current carbonate replacement deposit models.
Questcorp is also deploying an expanded drone magnetic survey across the district. This geophysical work aims to identify intrusive heat engines that serve as the source of the gold-bearing fluids, which suggests the potential for a porphyry-style system at depth. The integration of this data with new structural mapping is expected to refine targets for a follow-up drilling campaign scheduled for early summer.
“The identification of sediment-hosted gold at Luis Hill is an important step forward,” said Saf Dhillon, President and CEO of Questcorp. “The ongoing work program is designed to expand that discovery while advancing multiple additional targets toward drilling.”
Questcorp Mining last traded at $0.14 on the CSE.
FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of Questcorp Mining. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
