Gold mid-tiers’ Q3 2024 fundamentals
All-time-high gold prices combined with relatively-contained costs catapulted unit earnings to another epic record.
After a successful initial drill program earlier this year at its Pen project, 40 km west of Timmins, and a C$5.9-million financing closed in May, GFG Resources is planning a more “aggressive” exploration program for the second half of the year.
An 8,500-metre campaign starting next month will focus on the Nib prospect, where the company made a new discovery in April, drilling 8.5 metres of 71.27 g/t gold starting at 50 metres vertical depth.
The company also plans to test other regional targets.
In addition to Nib, the recent drill program tested targets at the HGM and Slate Rock East prospects at Pen.
Other highlights of the eight-hole 3,300-metre program include: 3.1 metres of 4.5 g/t gold from 401 metres depth at the HGM target, where drilling continues to intersect multiple zones of gold mineralization and has now been extended to 500 metres depth. The high-grade interval was intercepted within the targeted mafic volcanic unit.
At Slate Rock East, drilling intercepted visible gold and broad zones of low-grade gold mineralization, including highlights of 25.5 metres of 0.29 g/t gold starting at 127.5 metres depth, including 1 metre of 2.36 g/t gold. (True widths are estimated at 70-90% of reported widths.)
GFG has now doubled its 2020 exploration budget for Pen to C$4 million. The 500-sq.-km project project covers the interpreted westward extension of the Porcupine-Destor Fault Zone.
Nib is located near the centre of the property with Slate Rock East to the east and HGM to the west.
The upcoming program will also include follow-up drilling along the Deerfoot corridor, which hosts HGM, and test new targets such as Broadway, northwest of HGM, and Boundary, which lies between HGM and Nib.
Based in Saskatoon, GFG raised C$5.9 million last month for exploration, with Alamos Gold participating and becoming a strategic partner with a 9.9% stake in the company.
(This article first appeared in the Canadian Mining Journal)
