JV Video: Rackla hunts bismuth, gold at NWT discovery

Key Concepts

• Tombstone Gold Belt: A geological region stretching from Alaska through the Yukon and into the Northwest Territories, known for significant gold discoveries.
• "Bite" Target: A style of gold target identified by Rackler Metals, characterized by high surface grades and associated with specific mineralogy.
• Surface Rock/Channel Sampling: A method of collecting rock samples from the surface or along a channel to assess gold grades.
• Drill Results: Samples obtained from drilling into the subsurface to determine the presence and grade of mineralization.
• Gold Enrichment: A phenomenon where gold concentration increases at the surface due to geological processes, potentially leading to discrepancies between surface and subsurface grades.
• Alteration Zone: An area of rock that has been chemically changed by hydrothermal fluids, often associated with mineralization.
• Quartz-Sericite Alteration: A common type of alteration characterized by the presence of quartz and sericite minerals.
• Sheeted Veining: A style of mineralization where multiple, parallel veins are present.
• Bismuth (Bi) and Telluride (Te) Minerals: Elements and minerals that can be associated with gold mineralization and may influence its grade.
• Intrusive Body: A mass of igneous rock that has solidified beneath the Earth's surface.
• Manta Discovery: A new surface discovery made by Rackler Metals approximately 2 kilometers south of the "Bite" target.

Rackler Metals: Exploring the Tombstone Gold Belt

Introduction to Rackler Metals and the Tombstone Gold Belt

Rackler Metals is actively exploring for gold in an unexpected region: Canada's north, specifically within the Tombstone Gold Belt. This belt, extending from Alaska through the Yukon and into the Northwest Territories, has recently yielded substantial gold discoveries, including those by Snowline, Banyan, and Sitka, with some deposits containing millions of ounces of gold. The geological characteristics of this belt often involve simple metallurgy and large, albeit sometimes remote, deposits. Rackler Metals entered this belt two years ago and has since made what they believe to be significant gold discoveries.

The "Bite" Target: High Surface Grades vs. Initial Drill Results

Rackler Metals' primary focus is on a target they've termed a "bite," which has generated considerable excitement due to exceptionally high surface rock and channel sample grades, with some samples assaying up to 92 g/ton gold. However, the initial three drill holes completed on the property have yielded significantly lower grades than these surface results.

Key Points and Discrepancies:

• Discovery Context: The property had never been staked or explored before Rackler's involvement. The discovery was made late last year through stream sediment and talus sampling on a high mountain (7,200 ft).
• Surface Sampling: Extensive sampling on the cliff face, over several hundred meters, revealed numerous high-grade samples. While a 92 g/ton result was a grab sample, many chip channel samples returned grades between 5 to 20 g/ton gold. The presence of sheeted veining and quartz-sericite alteration over a couple of hundred meters on the cliff face contributed to the excitement.
• Initial Drilling: Rackler Metals completed a broad-spaced drilling program of 10 holes, totaling approximately 4,500 meters. The first three holes, however, did not replicate the surface sampling grades.
• Geological Observations in Core: The drilled rock was described as hard granite with veining. In the area of surface sampling, a strongly altered quartz-sericite alteration zone was encountered. Two holes were drilled beneath the cliff face, and one further south, which also intersected a broad zone of cordierite alteration.
• Veining and Grade Disconnect: Despite encountering significant veining in the first three holes, the gold grades were not as expected. The veining in the cliff face, which contained bismuth (Bi) and was associated with high gold grades (e.g., the 92 g/ton sample also contained 2% bismuth), did not translate to high grades in the drilled core. Samples around 43 g/ton gold also showed similar alteration and contained 1.5% bismuth.
• Bismuth and Telluride Hypothesis: A key observation is the presence of bismuth within the intrusive rock, even without visible veining. The theory being explored is that bismuth and telluride minerals might be more critical indicators of grade than vein density alone, especially in this specific alteration zone.
• Unexpected Results: Even with the presence of bismuth in the alteration zone encountered in hole three, only a 5-meter interval of 1 g/ton gold was found, with the rest of the zone being relatively barren. This was a "shock to the geos, shock to me, and a shock to the market."
• Ongoing Program: Seven more holes are pending, and Rackler Metals remains optimistic that these will provide better direction for future exploration. They acknowledge the possibility of being "hasty drilling" but believe the initial approach was sound.

The Manta Discovery: A Parallel Target

Approximately 2 kilometers south of the "Bite" target, Rackler Metals has identified a new surface discovery called Manta.

Key Details:

• Location: Manta is an intrusive body situated about 1.5 kilometers south of the "Bite" (which is on the "Grad" property). This second intrusive body was not previously mapped by the government.
• Discovery: It was identified by Rackler Metals last year and underwent initial sampling this year.
• Mineralization: High grades are being observed in the contact zone on the eastern part of the intrusive.
• Geological Connection: The sedimentary rocks between the "Bite" and "Manta" intrusives are highly altered, suggesting they might be part of the same larger geological system or even the same body outcropping again to the south.
• Future Work: This is a brand new find, requiring significant further sampling and exploration.

Market Reaction and Future Outlook

The share price of Rackler Metals experienced a decline following the release of the initial drill results.

Key Points:

• Market Disappointment: The market reacted negatively to the drill holes showing veining but no significant gold grades, leading to disappointment among investors, geologists, and management.
• Reversing Sentiment: Rackler Metals hopes that positive results from the remaining seven drill holes will help reverse this sentiment. They are not predicting specific outcomes due to the unexpected nature of the initial results but are hopeful that some of these holes will guide future exploration efforts.
• Optimism Based on System Type: Despite the initial setbacks, the company remains optimistic due to the geological setting, which is consistent with other successful discoveries in the Tombstone Gold Belt (Snowline, Sitka, Banyan). They believe they can "figure this out."

Conclusion and Takeaways

Rackler Metals is pursuing a high-potential gold target within the prolific Tombstone Gold Belt. While initial drilling at the "Bite" target has revealed a disconnect between exceptionally high surface grades and subsurface results, the company is exploring geological hypotheses, particularly the role of bismuth and telluride minerals, to understand this discrepancy. The discovery of the Manta target provides a secondary area of interest. With seven more drill holes pending and a new target identified, Rackler Metals is in a critical phase of its exploration program, aiming to unlock the potential of its ground in the Northwest Territories. The company's optimism is rooted in the geological similarities to other major gold discoveries in the region, despite the current challenges in interpreting the initial drill data.