Golden Hope’s Golden Drill Results

by James West on February 4, 2011

By James West
MidasLetter.com
February 4, 2011

Golden Hope Mines Ltd. (TSX.V: GNH) recently released news from its 2010 summer drill program that went a long way towards vindicating the company’s long-standing theory that the Bellechasse region of southern Quebec is home to a previously un-identified gold trend.

The company drilled over 16,000 metres in 2010, the first results of which were the subject of the recent press release.

Significant intersections include;

BD2010-124 4.98 grams per tonne gold over 13 metres in gold zone T1
BD2010-125 7.57 grams per tonne gold over 10 metres in gold zone T2B
BD2010-132 2.03 grams per tonne gold over 4 metres in gold zone T1
BD2010-132 4.63 grams per tonne gold over 3 metres in gold zone T2B
BD2010-133 9.05 grams per tonne gold over 9 meters in gold zone T2A

Those are excellent results, no matter how you slice it. The fact that the market hasn’t really picked up on the shares is partly to do with the sell of in gold recently and partly due to the long lag time in getting results from the lab. That combined with previous management’s inclination to use the company as a source of green fees while mismanaging its development has left the company with some less than happy campers in the shareholder department.

There are currently a total of 31 holes from the 2010 Exploration program for which results have not been reported on; 25 holes from Bellechasse-Timmins (including the 88 zones) and 6 holes from Laval’s Mountain, approximately 9.2 kms north of Bellechasse-Timmins. The company expects to report the results of these holes when they are received and interpreted.

But those days are in the past, and the company, currently drilling 2,000 metres as part of a winter drill campaign, is determined to demonstrate the potential of this 20 kilometre zone of mineralization. The plan is to expand the drill program to multiple drills (at least two) when the snow melts.

A 1,700 tonne bulk sample program was wrapped up in October last year, the source of which was 16 trenches from various locations totaling 280 metres. The purpose of the trenching and bulk sampling is to demonstrate surface grade continuity in support of a pre-feasibility study.

Southern Quebec Rising
There hasn’t been a great deal of exploration south of the St. Lawrence in Quebec, and the area could generally be considered ‘under-explored’. But that is changing.

Another company developing a 20 kilometre gold belt theory lies just on the opposite side of the Chaudière River from Golden Hope – Bowmore Exploration (TSX.V:BOW). Bowmore is owned 35% by Osisko Mining (TSX:OSK) who is developing the 8 million ounce + Malartic mine 20 kilometers west of the town of Val D’Or (Midas Letter premium subscribers were first alerted to Osisko back in January 2009).

According to Bowmore’s web site, “Six gold zones to date have been discovered spread within the core of the belt along a strike length of 20 kilometers. The three principal gold zones, named Wotton, Wotton NW and Camille, are separated by a maximum of 6.5 kilometres and located about 20 kilometres southeast of the town of Asbestos. The anomalous zones are characterized by partially carbonated (ankeritic) sedimentary rocks that yielded values of 0.05 g/t gold (anomalous threshold) to 0.99 g/t gold over a collective surface of 1.25 square kilometres. All three zones are extensive (hundreds of metres) and consistently anomalous in the gold values of samples collected.”

So its not just Golden Hope investing in southern Quebec. Exploration backed in large part by Osisko is keen on the area as well. In fact, Osisko was part of a joint venture with Golden Hope back in 2003 that saw Osisko as the operator of a drill program with outstanding results that essentially formed the first discovery now known as the T1 zone.

Additional Targets
Besides the potential new gold district under development in Belchasses-Beauce, Golden Hope highlighted new targets as a result of their acquisition of 75% of an area known to be underlain by ultrabasic intrusives in the110 kilometer Bellechasse-Chaudière section of the belt, and includes those intrusives considered to show potential for precious metal concentration.

The Chaudière River was the site of the first Canadian gold rush and gravels from it and tributary streams were mined successfully for recovery of alluvial gold beginning in the 1800s.

The Golden Hope Mines technical team observed that the gold placers lie down-drainage from the serpentinites. Subsequent investigation indicates gold is associated with these altered ultrabasic rocks. Data available suggest extensive mineralization is possible and these targets satisfy the Company’s large metal concentration criteria.

Although copper, nickel, cobalt and platinum group metals are often associated with ultrabasic intrusives, Golden Hope Mines Ltd. is primarily interested in the gold-hosting potential of these rocks.

Once the snow melts, Golden Hope is going to be one of the closely watched drill programs in the summer of 2011. The soon to be released drill results, if as strong as the first set, could see Golden Hope become the golden boy of southern Quebec.

DISCLOSURE: Midas Letter’s James West controls 200,000 shares of GNH at an average price of $0.40 . No other beneficial interest exists between Golden Hope and Midas Letter.