Wm, GNG, ANZ
Wallbridge Mining aka WM released two PRs yesterday.
The first concerns the release of an updated Resource Estimates for its flagship Fenelon gold project in Quebec and the adjoining Martinere gold project, following large drilling campaigns (which are still underway). They were able to increase the size of the deposits but the main impact was a substantial increase in grade and thus contained gold.
At Fenelon, Indicated resources are now 2.37M oz at 3.40 g/t Au, an 11% increase in ounces and 85% increase in Au grade compared to the 2021 Resource Report, while Inferred resources are now 1.72M oz at 2.89 g/t Au, an 17% increase in ounces and an an 84% increase in Au grade.
At Martiniere, Indicated resources are now 680k oz at 2.35 g/t Au, a 26% increase in ounces and a 5% increase in Au grade, while Inferred resources of are now 639k oz at 3.17 g/t Au, an146% increase in ounces and 11% increase in Au grade compared to 2021.
The overall effect is to increase Wallbrifdge's confidence in the switch from an open pit mine plan to an underground bilk mining scenario. We will get more details on this new plan when an initial PEA for Fenelon is released in Q2.
Message 34158917
The second PR concerns their 2023 plans for and budgets for Wallbridge's various properties along the Detour-Fenelon trend, which includes Fenelon and Martiniere.
They have set their 2023 exploration budget at $36M, of which $8.5M remains to be raised. Close to half of that will be expended at Martiniere, with the remainder on exploration prospects near Fenelon and on their other properties in the area. (I do expect more drilling at Fenelon proper to be announced once the PEa is released.) There will also be a number of technical studies to advance the properties.
This is a big year for WM. Not long ago they were trading at over a dollar with a much smaller resource established, so they need to find a way to get the market to give them more value for both what they have already developed and the upside to come. I sure hope they don't have to raise more fund at the current share price.
One thing I continue to wonder about is the long term plan -- do they plan to develop the mines themselves, or enter into JVs, or sell the deposits off for someone else to develop. Thus far they have given no indication.
Message 34158918
FWIW, I was very pleased to see something I haven't seen before, an analysts report on WM from one of the major brokerages, this one from BMO. They are pleased with the switch to underground bulk mining, noting that the underground resource grades they have established are higher than those at the Goldex and Young-Davidson mines (in northern Quebec and Ontario) before their respective production decisions. Still, although BMO maintained Wm at Outperform they dropped their target from $1 to $0.75, with a promise to reevaluate after the PEA is released.
Golden Goliath Resources aka GNG released the results of the first four holes drilled on its Wish Ore gold prospect in Ontario. These were short holes designed to test prospects discovered during sampling and geophysics. All four holes did find gold, albeit all assays were under 1 g/t and most were over short distances. The good news is that they have now established that the mineralized zone is over 6 kn long and up to 1 km wide. Once they have fully analyzed the results of exploration to date they will announcement another drill programme in the coming months.
Message 34159001
Alianza Minerals aka ANZ announced they have received drilling permits for their Twin Canyon gold prospect in Colorado. The exploration is centred around a past-producing mine on the property. Recent exploration has established a 3km strike length for the mineralized structure, with potential for expansion along strike and at depth. Interestingly, it appears the gold was deposited as part of the creation of a petroleum basin, something I haven't come across before.
Given that ANZ operates on the prospect generator model, they will not be drilling Twin Canyon until they find a JV partner to fund the programme.
Message 34159017 |
