K2 Gold Corporation (TSXV:KTO) has launched its 2023 diamond drilling program at the Si2 Gold Project, aiming to extract at least 2,500 meters of diamond drill core. The program will concentrate on the “areas of interest” (AOI), specifically AOI1, AOI1.5, and AOI2 target zones. Drill holes are strategically designed to intersect the steeply northwest-dipping fault structures believed to be responsible for the extensive steam-heated alteration and mercury anomalism documented by K2 at the surface. These fault structures are thought to be the primary fluid channels within the system, potentially carrying mineralizing hydrothermal fluids.
Anthony Margarit, President, and CEO of K2 Gold, commented in a press release: “Since acquiring the Si2 project in January 2022 the Team at K2 has rapidly advanced the understanding of the project geology and defined very compelling targets. We are excited to get this drill program underway. The aim of the program is to test fault structures which control the extensive steam-heated surficial alteration we see at surface. We are targeting these structures at depth in order to sample the potentially gold bearing ‘boiling zone’ of the epithermal system.”
The drilling will target depths of at least 100 meters below the surface and beyond. The Si2 Gold Project is situated in Esmeralda County, Nevada, roughly 60 kilometres northwest of Tonopah, Nevada, and 20 kilometres northwest of Allegiant Gold’s Eastside deposit (1.4Moz Au, 8.8 Moz Ag). The project boasts road accessibility and encompasses 118 BLM lode claims spanning 986 hectares, with 65 claims under option from Orogen Royalties Inc. (TSXV: OGN). The claims cover an 8 square kilometre area characterized by steam heated alunite-kaolinite-buddingtonite alteration within a sequence of felsic to intermediate volcanic rocks displaying brecciation and a high mercury anomaly.
Additionally, K2 Gold announced the allocation of 2,775,000 incentive stock options to select Directors, Officers, Employees, and Advisors of the company. The options can be exercised at $0.15 per share for a period of five years from the grant date, with 25% vesting upon grant and subsequent 25% vesting every three months. The options were granted according to K2’s shareholder-approved stock option plan and adhere to the policies of the TSX Venture Exchange and any relevant regulatory hold periods.