O2Gold To Begin Draining Aurora Mine In Q4, Production To Commence Next Year

O2Gold Inc (TSXV: OTGO) has seen a drill moved to its brownfield property. The company this morning indicated that it has begun drilling at Aparecida, where there has historically been significant artisanal mining.

Five gold veins have been documented in the region by the company, as well as three veinlets at surface, which are the current targets of drilling. The company currently intends to conduct 2,000 metres of drilling under the current program at Aparecida, along with additional geophysics.

The first vein to be drilled is the Fortaleza Vein, which currently has a strike of 400 metres. Channel samples to date have seen values of 42.3 g/t gold and 49.6 g/t silver, leading to further testing by the company.

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Drilling is also continuing at Aurora, with O2Gold looking to prove the extension of the main vein. The company reported that there are early indications that this vein may stretch as far as the Quintanillo brownfield region in the south of the property.

While exploration remains ongoing at Aurora, the company is also working to towards achieving production early in 2022, with certain minimums that must be met as per its exploitation license. The company has reportedly reinforced adits and tunnels of the Aurora mine, with electricity and ventilation now in place.

The tunnels are said to be up to 150 metres deep, with several samples to date showing grades higher than 30 g/t gold. Next, the company intends to begin draining the tunnels in the current quarter, with the mine slated to be fully accessible in Q1 2022.

O2Gold last traded at $0.18 on the TSX Venture.


FULL DISCLOSURE: O2Gold is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover O2Gold on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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