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.
Mayfair Gold (TSXV: MFG) shares rose this morning on the latest drill results from the company’s flagship Fenn-Gib project in northeast Ontario, as it works toward a prefeasibility study next year.
Highlights included hole FG22-253, which intersected 1.1 grams gold per tonne over 366.7 metres near the surface, including 4.12 grams gold over 14 metres and 5.66 grams gold over 16 metres.
Mayfair previously reported drill results for hole FG22-250 that intersected 0.87 gram gold over 311 metres, including 1.1 grams gold over 99 metres, and 1.36 grams gold over 33.6 metres.
The newest intercept is “one of the best results from [the] drill program and highlights the exceptional quality of the Fenn-Gib deposit,” commented Patrick Evans, Mayfair Gold president and CEO.
He added that the intercept is “further confirmation of the robust nature of the high-grade plunge identified on west side of the deposit.” (Hole 247A reported in November cut 225 grams gold over 1.5 metres.) On the north side, Evans said that mineralization seems to be reaching its limit based on the “more moderate grades” reported from holes FG22-256, 258 and 260.
Mayfair Gold has been consistently producing positive drill results at Fenn-Gib since acquiring the project in 2020. It has now completed 104,000 metres of a 110,000-metre infill and expansion drill program at the project, situated 80 km east of Timmins in the mineral-rich Abitibi gold belt.
Fenn-Gib hosts an open-pit constrained indicated resource of 70.2 million tonnes grading 0.92 gram gold per tonne for 2.1 million oz. of contained gold and an inferred resource of 3.8 million tonnes grading 0.62 gram gold for 74,967 oz. Gold mineralization at Fenn-Gib runs 1.3 km east-west on the Pipestone fault with widths of up to 300 metres.
The company is planning to release an updated resource in next year’s second quarter, followed by a prefeasibility study later in 2023.
Mayfair also announced it has closed a previously announced private placement of 3 million shares issued at C$1.15 per share for aggregate gross proceeds of C$3.5 million. Mayfair Gold shares traded at C$1.35 Thursday morning in Toronto, up 7.1% from Wednesday’s market close.
The company has a market capitalization of C$114.6 million.
