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.
Fiore Gold (CVE: F) has released an updated resource estimate for its wholly owned Golden Eagle project in Washington, within the past-producing Republic/Eureka mining district.
Measured and indicated resources are now at 45.4 million tonnes grading 1.38 g/t gold and 6.44 g/t silver for a total of 2 million oz. of contained gold with a further 9.4 million oz. of silver.
Additional inferred resources stand at 5.4 million tonnes at 0.9 g/t gold and 4.43 g/t silver, containing 154,650 gold oz. and 764,990 silver oz.
The above resource figures are pit-constrained and based on historical drill data. The prior, non-NI 43-101 resource statement for this property featured 28.5 million indicated tonnes at 1.89 g/t gold with a further 4.6 million tonnes grading 1.3 g/t gold inferred.
These latest resource figures are pit-constrained and all of the associated mineralization is within grounds held by Fiore.
The south and north walls associated pit shell extend onto lands held by Hecla Mining.
Fiore estimates that approximately 30% of the resource is dependent on an agreement with Hecla and plans to seek an arrangement
Fiore estimates that approximately 30% of the resource is dependent on an agreement with Hecla and plans to seek an arrangement, which would allow the extraction of its full resource inventory.
“We’re very pleased with the new resource update for Golden Eagle, a project that we think has been largely overlooked by the market,” Tim Warman, the company’s CEO, said in a release.
“Golden Eagle is now positioned squarely in the top ten undeveloped United States gold deposits, outside the larger producers.”
Golden Eagle is 16 km from Kinross’s past-producing 1,800 t/d Kettle River mill.
The deposit covers approximately 762 metres of strike, with a width of up to 305 metres and depth of around 610 metres.
In addition to Golden Eagle, Fiore holds the producing Pan heap leach mine in Nevada as well as the Gold Rock development asset on the state’s Battle Mountain – Eureka trend.
Fiore’s stock was trading up 5.5% at Tuesday’s close on the TSXV. The company has a C$92 million market capitalization.
(A version of this article first appeared in the Canadian Mining Journal)
