ODV x 2, KTN
We get two pieces of news involving Osisko Development aka ODV today, and neither was good.
The first comes from ODV itself, and concerns the release of an updated Resource Estimate for the Trixie mine on its Tintic property in Utah. M&I Resources are now 245kt @ 19.11 g/tAu & 60.8 g/t Au containing 150k oz Au and 478k oz Ag,, while Inferred Resources are now 202kt @ 7.80 g/tAu and 48.55 g/t Ag containing 51k oz Au and 315k oz Ag.
Although small, this resource might look like good at first glance thanks to the high grades, until you learn that compared to the 2023 MRE, contained M&I gold ounces are now down 29%, while the corresponding Inferred number is a whopping 79% decrease. The reason? In spite of completing a good deal more drilling and sampling, a revised geological model removed much of what was formerly considered ore from the mineralized envelope. (Yes, part of the drop in Inferred was due to resource conversion, but even so M&I were still down substantially anyway.}
Also, late in the PR they casually mention that the deep hole that was designed to find the underlying large prophyry under Trixie instead hit a fault and after that, barren rock.
Message 34605750
Disappointingly if not surprisingly, ODV has not bothered to PR the other piece of bad news; I heard about it on the local news. A provincial government report documented 417 separate violations on 68 different days in 2020 and 2021 involving the leaking of toxic material from its Bonanza Ledge gold mine near Barkerville, BC. . It also noted previous violations, including 215 incidents in 2017, and 463 between 2018 and 2019.
There was one glimmer of good news. The fine had been originally set at $750k, but was reduced because the pandemic made it very difficult to find contractors to deal with the situation. Still, it's not a good look, and underlines once again how poorly run this company is.
Message 34605785
Kootenay Resources aka KTN has announced a new 5000m drill programme on their Colimba silver prospect in Chihuahua, Mexico. The 2023 drilling campaign established the D Vein as an important prospect, with the highlight drill results being 13.56m of 599 g/t Ag, 8.19Mmf 532 g/t Ag, and 10.26m of 501 g/t Ag. The D Vein now been defined over a strike length of 450m and depth of up to 250m. It is believed that the D vein has another 800m of strike length before it intersects the B vein.
If the drilling yields results, KTN intends to raise enough money for enough drilling to establish an initial Resource Report for Columba.
Message 34604717
A short interview with KTN's CEO regarding Columba and La Cigarra can be found here
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