In terms of breakthrough years, 2017 certainly is shaping up to be one for Broadway Gold (BRD:CA)(BDWYF). The company’s drill program to date at its Madison Project has proven to be quite fruitful, and continues to justify the company’s excitement regarding the potential of the property. Now with the latest development out of the project, that potential is one giant step closer to being realized. On Oct. 26, Broadway Gold announced that the discovery of a new latite porphyry zone of mineralization at the Madison Project, which is located in the legendary Butte-Anaconda mining region of Montana. As a result of the discovery, the company announced Tuesday that it has staked additional ground to cover favorable geological and geophysical targets in the area of the Madison copper-gold project.
Broadway President and CEO Duane Parnham has repeatedly explained the significance in proving the porphyry target. In fact, when Phase III drilling commenced, Parnham stated, “If we can prove that the porphyry target is consistent with our geological model, not only will the Madison project be a company maker, it adds a third dimension to the native copper skarn zone and massive sulphide potential from a mining perspective.”
The Madison project is a gold-copper skarn deposit covering 1,871 acres, and contains the past producing underground Broadway Gold Mine, which Broadway has refurbished and plans to expand given that 144,000 ounces of gold produced late-19th/early-20th century were collected to a depth of only 750 feet. The company’s Phase I and Phase II drilling programs, which targeted the shallower skarn zones at Madison, have delivered extremely high-grade gold and copper intersections (including some of the highest cu-au grades intercepted in the western U.S. in recent memory) and identified multiple priority target areas.
The Phase III program, which commenced in September and is currently underway, set out to drill the porphyry target at depth, and is intended to extend the copper- and gold-bearing mineralization trending to the northwest from the Madison Mine. The company successfully raised $2.5 million earlier this year to fully fund the program.
Left: C17-24 980-988 is the carbonate-latite porphyry contact, note the chaotic folding and brecciation.
Right: C17-24 1032.5-1041.4 is a photo of the latite porphyry showing the phyllic alteration.
“Broadway’s technical team has successfully delivered on a fourth major milestone worthy of additional testing by discovering a porphyry system underlying the shallower skarn zones, which were mined in the past and expanded in our recent drilling,” Parnham said of the discovery. “Although indications suggest a typical copper porphyry alteration system is present, this new mineralization discovered at Madison exhibits similar characteristics to the latite porphyry hosted at Barrick’s Golden Sunlight Mine (GSM) located 36 kilometers away in Whitehall, Montana.”
As Equities.com wrote in September:
Broadway Gold has repeatedly shown high-grade results through its thorough exploration work detailing a deep copper porphyry deposit. After 21 surface holes, the drilling resulted in the discovery of a larger jasper zone with abundant native copper and gold. Results included 1.725% Cu and 0.097 grams per tonne (g/t) Au over 49.4 meters in hole C17-16, including 2.571% Cu and 0.151 g/t Au over 30.2 meters. Hole C17-17 returned 1.020% Cu and 0.159 g/t Au over 31.1 meters and hole C17-20, drilled into a massive-sulfide zone that remains open at depth, returned 1.247% Cu and 1.843 grams per tonne (g/t) Au over 23.8 meters.
According to the company, these results from the jasperized body were some of the “longest and strongest copper intersections to date” continuing to lead to the conclusion that what remains under the ground at Madison is mammoth compared to what has previously been extracted.
Broadway Gold is unique combination of a potentially world-class project guided by proven leadership team. The company’s drilling efforts are being led by veteran geologists R. Timothy Henneberry, P.Geo, and Phil Mulholland, CPG. Each has more than 30 years of mining experience. Mulholland was brought on to the project particularly to leverage is extensive experience and detailed knowledge of Montana’s Butte region, which is very near the Madison Project.
For Parnham, Broadway Gold is proving to be yet another successful mining startup on his resume, which has created over C$1.2 billion in shareholder value through a number of major exits.
“This is my fourth small-cap resource startup. My previous ones have had market caps between $250 million to almost $900 million,” he told Equities.com in May. “Broadway is just another new project that we were happy enough to get, and timing is everything… What I’ve done in the past is apply my managerial, technical and financial expertise. We’re going to upgrade the project, and de-risk the project for capital build or M&A activity. That process returns a lot of value to our shareholders.”
Considering what the company has managed to do with the Madison Project in such a short period of time, it’s safe to assess that things are certainly going according to plan.
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