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.
Snowline Gold (TSXV: SGD) is issuing approximately 3.2 million charity flow-through shares at a price of C$7.80 each for a total of C$25 million ($18.5m).
The bought deal will be underwritten by Cormark Securities and BMO Capital Markets on behalf of a syndicate. The underwriters will be granted 15% overallotment.
Snowline will use the money it raises for exploration at its gold projects in the Yukon. The company has eight properties in the territory, but its flagship is the Rogue gold project located 380 km northeast of Yellowknife, in the underexplored Selwyn Basin.
The wholly owned property sits within the Tintina gold province, host to multiple mines and deposits including Kinross’s Fort Knox mine and Northern Star’s Pogo mine. It covers 112.3 sq. km. along a 9-km trend.
Snowline says there are two suspected members of the Tombstone plutonic suite. The first target is Valley, a newly discovered intrusive stock with sheeted bold-bearing quartz veins. The second is Gracie, an inferred blind intrusion about 4.5 km east of Valley. There is a third target, JP, a 900-by-600-metre exposure of an intrusive stock 7 km southwest of the Valley target.
Historic and recent surface grab samples have returned 52.0 g/t, 95.3 g/t, 44.8 g/t, and 38.1 g/t at Valley. At Gracie, grab samples assayed 57.0 g/t, 20.1 g/t, and 15.1 g/t gold.
Another large block known as Old Cabin covers a suspected buried intrusive stock inferred from a small granodiorite plug within a 2 x 4-km magnetic anomaly.
Snowline drilled at Rogue in 2022 and 2023, producing a 41-101 technical report, but no resource estimate was made.
