Union files complaint against Orla Mining, alleging violation of worker rights in Mexico
The complaint is only the second of its kind made from Canada using CUSMA’s RRM process since the trade deal came into force in 2020.
Probe Gold (TSXV: PRB) has reported scores of assays from its Pascalis deposit signalling a potential resource increase this year at the Novador gold project near Val d’Or, Quebec.
More than 100 of the holes cut grades above the 0.4-gram-gold-per-tonne cutoff used in a 2021 pit-constrained resource estimate, Probe said in a release on Tuesday. The 111 holes drilled were split about evenly between expansion and infill drilling for a total of 18,100 metres.
“Probe continues to achieve a very high hit-ratio which bodes well for an increase in total resources and an upgrade of inferred resources to measured and indicated resources,” Barry Allan, a mining analyst for Laurentian Bank, wrote in a note on Tuesday.
“Drill results greater than 0.4 gram per tonne are helping more accurately define a waste-ore boundary by converting waste material into ore, which is anticipated to lower the overall strip ratio when updating the project’s economic assessment.”
Toronto-based Probe plans to release an updated resource estimate and prefeasibility study this year for the 175-sq.-km Novador project, which holds the past-producing Beliveau, Bussière and Monique mines. Novador used to be called Val d’Or East and lies 25 km east of the Abitibi region town.
The studies will follow the tripling of the indicated gold resource at the Monique deposit in January and more drill results from the Courvan deposit due within weeks.
Laurentian Bank’s Allan says drilling at Courvan is expected to convert inferred resources to measured and indicated, while there may be a modest resource increase from Pascalis.
“We expect the prefeasibility study to incorporate a scope increase given that three previous pits outlined at Monique have now merged into one larger open pit, allowing for better economies of scale,” he said. “Ultimately, we anticipate the Novador project to be sold to an established mine builder with experience in the region Agnico Eagle Mines (TSX: AEM; NYSE: AEM) or Eldorado Gold (TSX: ELD; NYSE: EGO).”
Allan said selling Novador would allow Probe to focus on the La Peltrie project near Detour Lake, Que., a copper-gold-silver-molybdenum deposit about 190 km north of Rouyn-Noranda in the Abitibi region. Probe is exploring it with Midland Exploration (TSXV: MD).
Allan has a buy rating on Probe shares and expects a “significant” increase in resources will offset higher project capital costs for a neutral impact on the stock’s valuation.
Probe shares rose 4% on Wednesday afternoon to trade at C$1.78 each in Toronto, within 52-week range of C$1.09 and C$2.26, valuing the company at $283 million.
Probe president and CEO David Palmer said the Pascalis drilling confirmed the continuity of gold zones and expanded near-surface mineralization within the 2021 mineral resource estimate’s conceptual pits.
“We are converting what was waste into possible ore, and potentially reducing the strip ratios, and thus overall mining costs,” Palmer said. “Novador continues to exceed our expectations and we will be pushing hard on all fronts to maintain this momentum.”
Pascalis expansion drill hole PC-22-812 cut 19 metres grading 5.6 grams gold per tonne from 38 metres depth, including 1 metre at 96.8 grams gold from 53.2 metres down hole.
Infill drill hole PC-22-807 at Pascalis cut 59 metres grading 2.4 grams gold from 22 metres down hole, including 16 metres at 5.1 grams gold from 45.5 metres depth.
Novador includes gold resources totalling 2 million indicated oz. and 357,200 inferred oz. for Monique. The other deposits, including Pascalis and Courvan, hold 1.1 million indicated oz. and 1.6 million inferred oz., according to the 2021 resources estimate.
