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.
Cartier Resources (TSXV: ECR) has released an updated resource estimate for its past-producing Chimo Mine property, 45 km east of Val-d’Or. The latest estimate is contained within three gold corridors and the junior is completing internal engineering and sorting work on the resource.
Across the North, Central and South corridors, indicated resources total 6.6 million tonnes at 3.21 g/t gold, for 684,000 oz. with 15.2 million inferred tonnes grading 2.77 g/t gold adding 1.4 million gold oz.
The resources are constrained within optimized stopes and estimated using cut-off grades between 1.5 and 2 g/t gold.
According to president and CEO Philippe Cloutier, these latest resources are expected to be accessible through existing underground workings and are within trucking distance of existing mills.
In the release, Cloutier also highlights the infrastructure and workforce in the Val-d’Or area, which are expected to be a “considerable advantage for the rapid start of this mining project.”
Shares of Cartier Resources jumped to a 52-week high of C$0.36 following release of the Chimo Mine resources. The Quebec-focused gold explorer has a market capitalization of C$73.4 million.
Cartier is also completing industrial sorting tests to assess the potential for increasing the grade of pre-concentrated material before milling and internal engineering to define optimal mining scenarios for the three gold corridors.
The resources remain open on strike and at depth with additional targets in the eastern section of the Chimo Mine project.
In a September release, Cartier reported that, based on an internal study, the Chimo Mine shaft could hoist approximately 4,921 tonnes a day or 1.7 million tonnes a year.
The site produced approximately 379,000 gold oz. between 1964 and 1997.
Cartier holds four projects with resources in the Abitibi Greenstone belt in Quebec.
(This article first appeared in the Canadian Mining Journal)
