Luckystrike hits gold at Monte Carlo

Luckystrike Resources Ltd. said its 2018 exploration program at Lucky Strike continues to demonstrate that this property in the heart of the White Gold District has the ingredients to develop into another big gold discovery in the Yukon.

Luckystrike Resource was formed earlier this year as a spin-out of Goldstrike Resources Ltd., a company that previously made a major Yukon gold discovery on its Plateau property.

Early last year, Newmont cut a C$53 million deal to earn up to a 75 percent stake in Plateau property.

With Newmont taking the lead exploring this expansive gold property known for its prolific visible gold, Goldstrike management formed Luckystrike to explore its earlier staged gold projects in the Yukon – Lucky Strike, Hot Spot, Bull's Eye, Goldsource, Kings Ransom and BRC.

Luckystrike focused much of its 2018 exploration on its namesake property, where the company completed 1,360 meters of drilling, 1,866 meters of trenching, soil sampling and prospecting.

This years drilling targeted Monte Carlo, the most advanced of the Luckystrike prospects.

Goldstrike encountered gold while trenching an induced polarization geophysical anomaly at Monte Carlo in 2016 and had success with a small follow-up drill program in 2017, including one hole that cut 22 meters of 5.36 grams per metric ton gold.

The buried IP zone, which has been outlined for about 1,800 meters, is characterized by strong chargeability responses and corresponding strong resistivity lows.

One hole drilled this year, DDLS-18-06, cut multiple gold-bearing zones at Monte Carlo. This hole cut 8.e meters averaging 1.16 g/t gold in an upper zone and 7.6 meters of 4.55 g/t gold in a newly discovered lower zone comprised of a broad gold-sulfide-rich unit. This lower zone directly corresponds to the large IP chargeability anomaly at Monte Carlo.

Luckystrike said the discovery that the IP anomaly corresponds with gold in the lower unit increases the potential to quickly expand the scale and geometry of Monte Carlo both along strike and to depth.

The company said the IP anomaly remains open and additional geophysics is recommended to determine the full extent of the highly chargeable and low resistive zone.

Luckystrike also dug 11 trenches this year to test several prospects the company has identified along a 10-kilometer (six miles) trend on its namesake property.

Two of the trenches were completed at Monte Carlo. Trench LSTR-18-01 encountered 30 meters of 0.94 g/t gold, including 24 meters of 1.14 g/t gold; and LST-18-02 cut 22 meters of 0.90 g/t gold. Luckystrike said these trenches increased the strike of known gold mineralization at Monte Carlo to roughly 500 meters.

"We are pleased with the results from this year's program and with the discovery of a new gold-bearing mineralized unit at depth and significant expansion of the known near surface gold zone at Monte Carlo," said Luckystrike Resources President and CEO Bill Chornobay. "We look forward to continue drilling this gold discovery to outline its full extent both to depth and along and across strike."

Trenching at Belmont zone, a 1,500- by 800-meter gold-in-soil anomaly about 3,500 meters south of Monte Carlo, yielded broad intercepts, such as 10 meters of 0.29 g/t gold. A significant zone of up to 200 meters of oxidized pyrite-bearing quartz veining was encountered in trenching, providing targets for discovery drilling at Belmont.

Trenching at Boss and Samson returned no significant gold intercepts in 2018. Luckystrike said compilation and further interpretation of all the data will be used to focus future exploration efforts in these zones.

Trenching at Maverick zone, found at the southeastern end of the 10-kilometer gold trend, confirmed the presence of continuous gold mineralization in the first mechanized trenching completed there. Trench LSTR-18-11 cut 16 meters of 0.63 g/t gold, with gold mineralization on both ends of the trench, providing strong gold targets for future drilling.

"The Lucky Strike project is still in its infancy with only 2,400 meters of exploratory drilling to date and has already shown it has all the right ingredients required – location, grade, dimensions, geology, and geochemistry – to quickly develop into the next big gold discovery," said Chornobay.

–SHANE LASLEY