Probe Gold’s (TSXV: PRB) latest assays from its Novador gold project in Quebec’s Abitibi region lengthen the strike, likely increase the resource and make it an acquisition target, an analyst said on Tuesday.
Toronto-based Probe’s 175-sq.-km Novador project, about 500 km northwest of Montreal, holds the past-producing Beliveau, Bussière and Monique mines. The site, 25 km east of Val-d’Or, consists of three satellite areas: Monique, Pascalis and Courvan. The project, which used to be called Val-d’Or East, issued assay results in a news release.
“At least 500 metres of strike length has been added to the known Courvan resource size between two previously defined open-pits,” Barry Allan, a mining analyst for Laurentian Bank, wrote in a note. “The high success rate of drilling suggests a total resource increase of 1 million oz. or more to over 6 million oz. total.”
The improved resource potential, following the tripling of the indicated gold resource at the Monique deposit in January, places the Novador project on a path to be acquired by an established mine builder with experience in the region, such as Agnico Eagle Mines (TSX: AEM; NYSE: AEM), Eldorado Gold (TSX: ELD; NYSE: EGO, or Iamgold (TSX: IMG; NYSE: IAG), Allan said.
The new assays should lower the overall strip ratio when the project updates a prefeasibility study later this year, the analyst said. It will incorporate an updated resource estimate for the Courvan and Pascalis deposits due next month.
