Developer Battle North Gold (TSX: BNAU; US-OTC: BNAUF) has released a resource estimate for the McFinley zone, located along a 4-km long corridor stretching out from the F2 gold deposit at its Bateman gold project in Red Lake.
The resource features 205,700 measured and indicated tonnes grading 6.04 grams gold per tonne, totalling 40,000 gold oz., and 259,300 inferred tonnes at 8.53 grams gold per tonne, for a further 71,100 ounces. The estimate is based on a break-even incremental economic cut-off grade of 3 grams gold per tonne and assumes the use of the infrastructure and processing facilities at the Bateman project.
“The McFinley MRE provides an encouraging step towards outlining future potential incremental mill feed to the Bateman Gold project, which could potentially enhance the overall economics of the project,” George Ogilvie, Battle North’s president and CEO, said in a press release.
Ogilvie added that with over 3,900 metres of existing underground development connected to the existing shaft and infrastructure at Bateman, Battle North may be able to fast-track the addition of the McFinley zone material to the mine plan.
“Given the success of our initial exploration program and the potential to enhance the project economics, our plan is to continue to prioritize exploration activity at the McFinley Zone,” he said.
The current McFinley resource extends down to a depth of 162 metres below surface and covers about 1,160 metres of strike. The zone remains open.
The resource is based on 1,620 metres of recently completed confirmatory diamond drilling, 57,945 metres of historical drilling as well as historical and recent chip sampling.
In October, Battle North tabled a feasibility study for an underground development at the Bateman project, extracting the F2 gold deposit.
This article first appeared in the Canadian Mining Journal, part of Glacier Resource Innovation Group.