NYSE- and TSX-listed precious metals producer McEwen Mining has reported an updated mineral resource estimate for the Froome deposit and “highly encouraging” exploration results from its ongoing $15-million exploration programme at the Black Fox Complex, in Ontario, Canada.
The Froome indicated resource estimate increased by 14% to 181 000 oz at a grade of 5.09 g/t gold.
Drilling at the Froome footwall has intersected 53.93 g/t gold over 8.29 m, including 322.86 g/t gold over 1.34 m, along the footwall structure that is located about 150 m north of the Froome deposit.
Pike River drilling struck a shallow high-grade intersection of 35.04 g/t gold over 3.30 m core length, along the same 7-km-long structural belt that hosts the Froome deposit and Gibson mineralisation.
Multiple shallow intersections at Grey Fox included 13.41 g/t gold over 2.82 m, including 27.70 g/t gold over 0.94 m, and 5.79 m g/t gold over 1.99 m. A zone within the Grey Fox area has an indicated resource of 264 000 oz at a grade of 7.49 g/t gold.
The Black Fox mine drilling intersected 35.08 g/t gold over 1.69 m on the depth of the extension of the mine. An underground exploration drift is under development and additional drilling will begin mid-September.
Meanwhile, McEwen reported an initial inferred resource estimate for the Stock East deposit, located on the Stock property that forms part of the Black Fox Complex, which McEwen exploration senior VP Sylvain Guerard says supports the potential for openpit mining.
The inferred resource estimate is 114 000 oz gold at a grade of 2.54 g/t, combined opencut and underground, which is part of a 2-km-long mineralised trend that also hosts the past-producing underground Stock mine, which had a historical production of 137 000 oz at a grade of 5.5 g/t.
Stock East drilling, which started in February, has intersected 25.16 g/t gold over 2.09 m and Stock mine drilling intersected 22.15 g/t gold over 1.39 m and 7.01 g/t gold over 2.98 m on the depth extension of the mine.
McEwen has an ongoing $5-million exploration programme at the Gold Bar property, located along Battle Mountain, in Nevada.
McEwen’s 2018 exploration goals are to grow known deposits and make new discoveries that will contribute to extending the life of the Gold Bar mine. From November 2017 to the second quarter of 2018, drilling focused on expanding known resources and better delineating the planned openpits. Seventy-nine new drill holes, totalling 16 000 m of drilling, have been completed since the last resource estimate in 2015.
The Gold Bar resource update resulted in an increase of 92 000 oz of indicated resources, and an additional 82 000 oz of inferred resources, mostly in the Gold Pick and Gold Ridge areas. The increase was attributable in part to the additional drilling and also to economic factors such as higher gold recoveries and lower waste mining costs.
During the first half of 2018, multiple exploration methods, including geophysical surveys, soil and rock geochemical sampling programmes, satellite data acquisition, and “boots on the ground” geologic mapping, contributed data to a new geologic model that revealed high-quality drill targets defined by overlapping anomalies.
“We are entering a very interesting time for Gold Bar exploration. For the first time, we have assembled all the key information that allows us to develop a robust geological understanding and define new high quality drill targets.
“We are initiating drilling to target additional oxide mineralisation to extend the mine life, and to explore for deeper Carlin-type gold discoveries. We believe Gold Bar hosts all the essential attributes that are characteristic of large Carlin-type gold deposits and look forward to this new and exciting phase of exploration,” concluded Guerard.