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.
Fokus Mining (TSXV: FKM) has released its gold price sensitivity analysis for its first resource estimate at tis Galloway gold project near Rouyn-Noranda, Quebec.
Using the same model as the 43-101 report, a gold price of $2,300 per oz., and cut-off of 0.7 g/t, the inferred resource contains 2.7 million oz. of gold. The total tonnage is 94.6 million tonnes averaging 0.91 g/t gold.
The mineralization is contained in three zones. The Moriss zone is 609,147 tonnes grading 2.46 g/t gold. The GP zone is 24.1 million tonnes grading 0.85 g/t gold. The Hendrick zone is 69.9 million tonnes at 0.89 g/t gold.
Fokus further said that the study did not assess the potential for an open pit model. Thirty-five additional holes have been drilled in the westernmost part of the property with what the company calls “interesting results.”
“When we decided to option and subsequently acquire the Galloway project, we were convinced that the western part of the property alone contained several million ounces of gold,” said president and CEO Jean Rainville.
“The question was how many of those ounces would eventually qualify as resources and what would be the price of gold in the future.”
According to Fokus, many sectors of the vast mineralized system at Galloway are open both laterally and at depth, and these gold zones are virtually untested.
“We can now see what the implications of a higher gold price environment, which we had hoped would materialize, mean for this project and for the company,” Rainville added. “It is also interesting to note that the impact is not just on the deeper Hendrick zone, but also on the shallower GP zone.”
The Galloway project is located along the Cadillac-Larder Lake Fault in Quebec’s Golden Triangle. The 26.7-sq.-km. property stretches along a 3-km-wide corridor with an over length of 10 km.
Between 2020 and 2023, Fokus spent C$6.5 million in drilling at the site. The company’s exploration budget this year is C$1 million to C$2 million.
