CKG, HMLO, MAI
Chesapeake Gold aka CKG released a new resource estimate for its Metates Au/Ag project in Durango, Mexico. We have known for years that this is a very large but low grade set of deposits, so the trick has been to find a way to justify the extremely large capex required to get the mines and mill running. There have been a number of approaches over the years -- I remember at one point they were emphasizing Zn, which has since pretty well dropped out of the equation -- and judging the way this Resource Estimate is presented, they are trying to zero in on higher grade starter areas with good metallurgy.
Make no mistake, there is a lot of metal at Metates -- 6.77M oz Au at 0.57 g/t and 423.2M oz Ag at 14.3 g/t in M&I, plus 2.13M oz Au at 0.47 g/t and 59.0M oz Ag at 13.2 g/t Inferred. When you are dealing with grades that low, the other key is the metallurgy, i.e. how much it will cost to get the metals out, so that is what they are concentrating on in the wake of this Resource Report. The Resource Report and metallurgy results will feed into a new PFBS which CKG hopes will generate enough interest to lead to a buyout.
Message 34202167
Hemlo Explorers aka HMLO released an update of its JV with Barrick Gold on the Plc gold project in Ontario. ABX has an option to earn up to 80% ownership over 6 years, and judging by their activity so far, they are keen on Plc. ABX was required to spend $800k in exploration in the first year of the option, but just in the first four months they have already greatly exceeded that requirement through exploration involving geophysics, re-assaying old samples, and taking new ones. So far they have been able to establish several areas of interest, but most assays are still pending. Barrick is not known for copious newsflow from exploration projects and they are the operator, so it is my guess that further updates will rare but full of information.
Meanwhile, HMLO is continuing exploration on the adjoining Project Idaho, where they are defining mineralization similar to the nearby Marathon Pd/Cu mine being developed by GENM.
Message 34202182
Now that Minera ALamos aka MAI has production running fairly smoothly at its Santana gold mine in Sinaloa, Mexico, they are resuming exploration to define new resources to extend the life of the mine. They plan to drill up to 10KM of holes on three exploration targets, Benjamin, Benjamin West, and Zeta. For the latter two, this will be the initial drilling.
As befits this highly competent management team, they have designed a programme to minimize costs while maximizing output, including using their own drill which will be rotated among the targets to allow the receipts of assays to inform ongoing drilling.
Message 34202209 |
