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O3 Mining (TSXV: OIII) (OTC: OIIIF) has provided a first mineral resource estimate (MRE) for the Bulldog gold deposit as well as the nearby Kappa discovery at its Alpha property in Quebec. This MRE includes approximately 50,000 metres of drilling in 116 holes, about 76% of which were completed by O3 Mining between September 2019 and April 2022.
In total, the Bulldog and Kappa deposits have an estimated inferred resource of 3.05 million tonnes grading 3.2 g/t gold for 318,000 oz. of contained gold.
The company has also released gold intercepts outside the current MRE that show a potential to expand this resource with future drilling.
Along the downdip extension of the Bulldog deposit, one hole returned 5.3 g/t over 3.8 metres, 125 metres below the current resource, while another returned 4.4 g/t over 2.2 metres from 235 metres down.
Drilling also intercepted the Kappa zone while stepping back to expand the Bulldog ore body, and the deeper Kappa discovery remains open at depth and to the east.
“The 2022 drilling campaign on Alpha was focused on expanding the known deposits at Kappa and Bulldog, and this MRE shows there is more room to grow,” CEO Jose Vizquerra said in a news release. “The continuity of mineralization and the proximity of the Kappa and Bulldog zones creates the potential for a sizeable project with a robust grade, thickness and continuity.”
O3 Mining is currently proceeding with environmental and metallurgical test work on both deposits. The environmental tests will characterize Bulldog and Kappa ore and waste for acid rock drainage and metal leaching upon exposure to ambient conditions, and thus, the risk associated with the waste material and subsequent mine waste management practices. The metallurgical tests will be performed on one composite per deposit to calibrate grinding size and determine gold recovery.
Both deposits are part of the Alpha property located 8 kilometres east of Val-d’Or, Quebec, south of Eldorado Gold’s Lamaque project and also surrounding Agnico Eagle’s Akasaba West property. The property covers more than 7,754 hectares and includes 20 km of the Cadillac-Larder Lake Break.
The Alpha property hosts historic resources of 500,000 oz. in the measured and indicated category (7.7 million tonnes at 2 g/t) and 400,000 oz. in the inferred category (4 million tonnes at 3.1 g/t).
Shares of O3 Mining jumped by 10.2% by noon ET following the MRE and exploration update. The company has a market capitalization of approximately C$98 million ($73.4m).
