Contango starts drilling east side of Lucky Shot gold vein near Willow

Contango Silver and Gold began drilling Oct. 22 into the eastern end of the Lucky Shot vein system at its gold project in the Willow Mining District, about 75 miles north of Anchorage. The company says it's the first modern program to test that part of the vein.

The work is underground. The first rig is drilling from a tunnel the company calls the 2070E drift. It has 42 holes planned, totaling 3,650 meters. A second rig is set to start Nov. 15 in the 2300E drift, with another 42 holes covering 5,320 meters. Contango expects both rigs to drill through the end of 2026 and finish in early 2027.

The season included "opening up the east side of the Lucky Shot vein system for the first time in the modern era," Contango President Shawn Khunkhun said in the company's update Wednesday.

Lucky Shot isn't a producing mine. Contango's annual report lists its properties there as exploration stage. The company announced in August 2021 that it had acquired the Lucky Shot Mine Project. Its update now describes the project as a lease on mineral rights to about 8,600 acres of state and patented mining claims, from the underlying owner, Alaska Hardrock Inc.

Alaska News reported Sept. 7 that crews tunneling into the historic mine hit two veins that weren't on the company's map, with one sample running 12 ounces to the tonne. In an Oct. 6 update, Contango said underground development had advanced 450 meters of a planned 830, or about 54%.

Other Lucky Shot drilling wrapped up this season. The Coleman surface drilling program totaled about 5,800 meters in 27 holes. Underground drilling of the KM vein finished at 943 meters in 16 holes. The company expects the remaining lab results, known as assays, from both programs during the fourth quarter.

Contango says it will release assays from the east-side drilling as they come in and are reviewed and validated.