An update for McFarlane Lake Mining’s (CSE: MLM; US-OTC: MLMLF) Juby gold project in northeastern Ontario has lifted global contained gold by 48% over the initial resource from last October, while grades fell slightly.
The update for the open-pit and underground areas outlines 37.1 million indicated tonnes grading 0.95 gram gold per tonne for 1.14 million oz. gold, McFarlane Lake reported Tuesday. Inferred resources total 180.6 million tonnes at 0.87 gram gold for 5.06 million oz. contained metal. Juby is about 500 km northwest of Toronto.
“We are extremely happy with the significant increase in gold resources on the property, after only seven months of drilling,” McFarlane Lake CEO Mark Trevisiol said in a release.
“Our exploration team has done an excellent job using all the exploration tools at their disposal, from historical drilling data, geological software modelling, to surface sampling, diamond drilling, and using the latest geophysical analytical tools to help guide the drilling campaign. There wasn’t a single diamond drill hole that didn’t intersect gold mineralization.”
Resource conversion
The larger resource gives McFarlane an expanded base as it works to advance Juby beyond the resource-definition stage, with the company continuing drilling aimed at adding ounces and converting inferred resources to indicated.
The update is based on about 13,000 metres of drilling, including 2,200 metres drilled into the recently discovered 826 zone. That open pit zone hosts 1.82 million inferred tonnes grading 1.29 grams gold, about 50% higher inferred gold grades than in Juby’s other deposits, McFarlane Lake said.
The 826 Zone will be a source of further exploration this year and next.
One year later
McFarlane Lake acquired Juby last year for about $30.5 million (US$22 million) from Aris Mining (TSX: ARIS; NYSE-A: ARMN) subsidiary Aris Mining Holdings and started drilling in December.
Company shares fell 7% to 36¢ apiece on Tuesday morning in Toronto, for a market capitalization of $167.7 million. The stock has traded in a 12-month range of 6¢ to 47¢.
Be the first to comment on "McFarlane Lake boosts Juby gold resource by 2M oz"