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.
Drilling between the Marathon and Leprechaun deposits at Marathon Gold’s (TSE: MOZ) Valentine Lake project in Canada’s Newfoundland province has confirmed a new area of mineralization: The Berry zone.
Drill highlights include 55 metres of 2.24 g/t gold, 8 metres of 3.92 g/t gold and 8 metres of 3.02 g/t gold.
The eight holes in the latest release tested a 200-metre long section of the 6-km long Sprite corridor between the Marathon and Leprechaun deposits.
The company’s stock in Toronto traded at C$1.39 per share, up 6.1% on Tuesday. Marathon’s market value is C$239.15 million.
Marathon plans to drill 32,000 metres within the Sprite Corridor this year
The Berry zone features sequences of stacked quartz-tourmaline-pyrite (QTP) and gold veins. Assays are pending for a further nine holes completed over a 600-metre strike to the northeast, which, based on visual observation, also feature QTP veining and visible gold.
Marathon plans to drill 32,000 metres within the Sprite Corridor this year.
The Valentine project hosts four deposits within a 20-km gold-bearing QTP vein system.
In January, the company released a resource update for the project with measured and indicated resources of 54.9 million tonnes grading 1.75 g/t gold for a total of 3.1 million oz. and inferred resources of 16.8 million tonnes at 1.78 g/t for a further 1 million oz. of gold.
The resource includes both underground and open pit portions with high-grade and low-grade subsets for the open pit category. High-grade, open-pit material makes up the bulk of current resource.
A prefeasibility study for Valentine is underway.
(This article first appeared in The Canadian Mining Journal)
