Galleon Gold begins engineering at West Cache in Ontario

Galleon Gold (TSXV: GGO) is making progress in permitting of a bulk sample and other activities at its 100% owned West Cache gold project in Timmins, Ont., with the company beginning engineering work that will provide a basis for tendering the mining work and a closure cost estimate and recovery plan as per provincial regulations.

West Cache is situated in the western Porcupine gold camp along the Destor-Porcupine fault zone within the Abitibi greenstone belt. It is located 7 km northeast of Pan American Silver‘s (TSX: PAAS; NASDAQ: PAAS) Timmins West mine and 14 km southwest of Newmont‘s (TSX: NGT; NYSE: NEM) Hollinger mine. 

The property has been under exploration since 1927 by numerous ground geophysical surveys and diamond drilling. Dome Exploration discovered and delineated a gold mineralized zone that is approximately 350 metres long and 45 metres wide. Drill programs by Teck, Cameco Gold and Tom Exploration further extended the mineralization to 350 metres of depth.

After its acquisition of Explor Resources in 2019, Galleon has continued to advance the West Cache project. Based on 210,000 metres of drilling since then, the company updated the resource earlier this year, showing 4.1 million indicated tonnes grading 3.63 grams gold per tonne for 472,000 oz. and 11.8 million inferred tonnes grading 2.87 grams gold for 1.1 million oz.

The proposed West Cache advanced exploration program currently includes the development of a ramp and portal to access the zone 9 deposit, collection of a bulk sample (up to 100,000 tonnes), and exploration drilling at depth.

 “We are very pleased that our two-fold strategy for developing the West Cache project continues to progress in a timely manner. We have been conducting the baseline and technical studies required to apply for permits for an underground bulk sample in concert with our exploration and infill drill programs,” said Galleon’s president and CEO David Russell in a news release.

“By focusing on both permitting and increasing the mineral resource we continue to advance the project in a meaningful way.”

Galleon Gold shares traded at 32¢ apiece this afternoon in Toronto in a 52-week window of 32¢-$1.40. The company has a market capitalization of $15 million.