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Magna Mining (TSXV: NICU) says drilling found new copper mineralization on its Shakespeare project in a joint venture with Glencore (LSE: GLEN) less than 2 km from a feasibility-stage former mine.
The initial drillhole MSW-24-01 on the Southwest copper zone cut 32.4 metres grading 1.4% copper, including 13.9 metres at 2.3% copper beginning at 64.6 metres downhole, Magna said on Monday.
Crews identified the Southwest target early this year on the project in Sudbury, Ontario, Dave King, Magna senior vice-president of geoscience, said in a release. Southwest had no records of previous drilling. Magna plans more exploration to test the area on strike and at depth, King said.
“The zone is open for expansion in all directions,” he said. “We are in the early days of defining the significance of mineralization here, however, we are optimistic of the potential.”
Sudbury, known for its nickel production that dominated the region for more than a century, is attracting exploration linked to historical operations as demand for battery and energy transition metals rises. Giant Vale (NYSE: VALE) is expanding its Sudbury Copper Cliff complex to increase production of nickel, copper and cobalt. SPC Nickel (TSXV: SPC) is developing its West Graham nickel-copper project in the area.
Shares in Magna Mining gained 4.4% by mid-Monday in Toronto to C$1.20 apiece, valuing the company at C$207.8 million. They’ve traded in a 52-week range of C$0.37 to C$1.35.
Magna has permits for the 4,500-tonne-per-day open pit former Shakespeare mine, mill and tailings facility. It’s also redeveloping the nearby former Crean Hill mine as a nickel-copper-platinum group producer. The project has a 129% internal rate of return, according to a preliminary economic assessment issued in September.
The Shakespeare JV sees Magna hold 86% while Glencore has 14%. Southwest is about 1 km west of the Stumpy Bay target on the project. It’s in a regional-scale structural zone associated with the Murray fault system that strikes across the Shakespeare property from west-southwest to east-northeast.
Sulphide mineralization at both targets is dominated by zones of disseminated to net-textured pyrite, pyrrhotite and chalcopyrite in highly silicified shears, Magna said.
The former Shakespeare mine plan and schedule are based on probable mineral reserves totalling 11.9 million tonnes of ore grading 0.33% nickel, 0.35% copper, 0.02% cobalt, 0.32 gram per tonne platinum, 0.36 gram palladium and 0.18 gram gold. The ore would be processed over a 7.1-year mine life after a year of pre-stripping.
Magna collared Southwest’s second drillhole, MSW-24-03, about 75 metres along strike northeast and assays are pending. A third hole on this shear zone beneath MSW-24-03 is in progress. Drillhole MSW-24-02 targeted a separate, weak electro-magnetic conductor within a gabbro not associated with the mineralized structure. Assay are pending for this hole about 400 metres southeast of hole MSW-24-01.
Also on Monday, Magna said Nuclear Fuels (CSE: NF) CEO and president Greg Huffman is to join Magna’s advisory board. Nuclear Fuels is developing its Kaycee in-situ uranium project in Wyoming. Huffman has been advising Magna for about four years and used to be global head of mining sales at Canaccord Genuity.
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