Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Wallbridge Mining Company (TSX: WM) has finished the underground development allowing it direct access to the Area 51 zone at its flagship Fenelon gold project. The deposit is 75 km northwest of Matagami in northern Quebec.
The company calls reaching the Area 51 zone a ‘significant milestone’ in that it allows tightly spaced underground drilling, geologic mapping and grade control sampling to proceed for the first time.
Preliminary results confirm that there is a network of mineralized veins with strong continuity over wide section of more than 30 metres. Grade continuity was also confirmed.
“After completing approximately 1,800 meters of underground development, we have had our first opportunity to see and touch Area 51 gold mineralization since our team discovered this zone in 2019,” said Wallbridge VP exploration Atilla Pentek. “Everything we’ve observed so far increases our confidence in the quality and potential of this deposit.”
The underground development access to Area 51 and establishment of drill platforms for future testing. Existing workings, which reached a vertical depth of 185 metres, are being maintained for exploration work.
Wallbridge drilled three holes from the new drift, all three of which intersected the zone where expected. Hole 21-5080-003 returned 23.4 metres grading 2.23 g/t gold, including 2.9 metres at 11.77 g/t. Also, hole 21-5080-001 returned 10.5 metres at 0.68 g/t gold. Assays for the third hole are pending.
The new exploration drift also revealed typical Area 51 mineralization and its main host rock. A system of sulphide-rich quartz veins is clearly visible on the walls. Individual veins show excellent continuities, suggesting the deposit could be suitable for bulk mining methods.
Muck samples totaling 2,836 tonnes of material were taken during 12 rounds of blasting within the Area 51 zone. The sample returned an average grade of 1.94 g/t gold, which compares favourably with the 2021 resource estimate.
The Fenelon project contains 36.0 million indicated tonnes grading 1.84 g/t gold for 2.1 million contained oz. and 29.0 million inferred tonnes at 1.57 g/t for 1.5 million contained oz. of gold. The total includes material from Area 51, the Gabbro area and the Tabasco-Cayenne system.
Gold was first discovered in 1994 when the main Gabbro zones were drilled. The property then went through a series of owners until Wallbridge bought it from Balmoral Resources in 2016 for C$3.7 million. Wallbridge went ahead and acquired Balmoral in 2020 in an all-share deal valued at C$110 million.
Wallbridge recently raised close to C$30 million with which to continue exploration at Fenelon and the surrounding area.
