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.
Probe Metals (TSXV: PRB) released on Tuesday an updated resource estimate for its Val-d’Or East project in Quebec. The estimate includes resources from the company’s 100% owned Pascalis, Monique and Courvan properties, as well as its option property, Cadillac Break East.
With the discovery and the expansion of the gold zones, the mineral resources have shown significant improvement over the previous resource estimate and remain open for future expansion, the company said in a press release, adding that drilling in 2019-2020 was successful in converting an additional 907,200 ounces to the measured and indicated (M&I) category from the previous resource estimate.
The gold resource now stands at over 1.77 million ounces in the M&I category and 2.2 million ounces in the inferred category, representing an increase of 16% in total size and an increase of 105% in the M&I category. About 84% of the new M&I resources are pit-constrained.
The gold resource now stands at over 1.77 million ounces in the M&I category and 2.2 million ounces in the inferred category, representing an increase of 16% in total size and an increase of 105% in the M&I category
“This new resource marks the graduation of Val-d’Or East from an exploration project to a potential mining project with tremendous upside for additional growth. The resource shows a significant improvement from previous estimates not only in size but also in the quality of its ounces,” Probe Metals president and CEO David Palmer said in the news release.
According to Probe, the Monique deposit is a standout performer, more than doubling its current resource to 660,400 M&I and 643,500 inferred with over 90% within the current mining lease.
The Monique and Pascalis gold deposits will form the cornerstone of the upcoming preliminary economic assessment (PEA), which is expected in Q3 2021. The two properties represent 77% of the pit-constrained mineral resource estimate.
Drills will be active throughout 2021 on further expansion, infill drilling and regional exploration at Val-d’Or East. The company expects to complete 50,000 metres of additional drilling this year.
