Gold & Precious Metals Snapshot: Eight companies advancing projects around the world

In recent years the uptick in the price of precious metals, particularly gold, has reinforced their reputation as a store of value and leading drivers of mining activity around the world. Here are eight companies exploring and developing precious metal projects.

CLEAN AIR METALS

Canadian explorer Clean Air Metals (TSXV: AIR; US-OTC; CLRMF) is looking for platinum and palladium.

The Toronto-headquartered junior is focused on advancing its flagship Thunder Bay North project in Ontario, approximately 50 km northeast of city of Thunder Bay and 60 km southeast of the Lac des Iles mine, owned by Impala Canada Ltd. (part of the Implats Group).

In April, Clean Air Metals reported the latest assay results from its 2022 drilling campaign on the Escape platinum group elements-copper-nickel deposit on Thunder Bay North.

Highlights from the drilling included drillhole ELR22-129, which intersected 90 metres grading 1.04 grams platinum per tonne, 1.33 grams palladium per tonne, 0.49% copper, and 0.28% nickel starting from 308 metres downhole, including 5 metres grading 2.38 grams platinum, 2.99 grams palladium, 1.12% copper, and 0.62% nickel.

That hole, the company said, intercepted a structural corridor called the Sail zone, which transects the eastern edge of the Escape South High Grade zone and trends in a northwest orientation along the mineralized Escape deposit trend.

A preliminary economic assessment for the project in December envisaged an underground mine with a mine life of 10 years producing 629,000 oz. platinum, 618,000 oz. palladium, 111 million lb. copper, 57 million lb. nickel, 38,000 oz. gold, and 850,000 oz. silver (2.9 million oz. platinum-equivalent) from the Escape and Current deposits. About 65.2% of total production would occur in the first five years.

The production figures were based on an average rate of 4,450 tonnes per day (3,600 tonnes per day ore and 850 tonnes per day waste). It also includes a new stand-alone milling complex and tailings management facility. The mill would be fed from both Current and Escape.

The early-stage study estimated an after-tax net present value of $378.4 million, using a 5% discount rate and metal prices of US$969 per oz. platinum, US$2,214 per oz. palladium, US$1,723 per oz. gold, US$22 per oz. silver, US$3.09 per lb. copper, and US$6.86 per lb. nickel, and an after-tax internal rate of return of 29.8%.

Payback from the start of commercial operation would take 2.4 years with the initial capital expenditure estimated at $367.2 million, including $60.2 million in contingency.

Clean Air Metals has a market cap of $34.6 million.

GALWAY METALS

Galway Metals (TSXV: GWM; US-OTC: GAYMF) holds a 100%-ownership of two projects in Canada — Clarence Stream, an emerging gold district in New Brunswick; and Estrades, a former producing, high-grade, gold-rich polymetallic mine in Quebec, which produced 174,946 tonnes of ore grading 12.9% zinc, 1.1% copper, 6.4 grams gold per tonne, and 172.3 grams silver per tonne from 1990-91.

In April, the Canadian junior announced an update to the mineral resource estimate for the 60.5 sq. km Clarence Stream property, approximately 70 km southwest of Fredericton.

Galway said the new resource represents a 136% increase in the indicated category and a 382% increase in inferred from the previous estimate in 2017, and includes 337 holes (106,272 metres) drilled in the SW deposit on the property since then.

“We believe that this resource can be significantly expanded and are optimistic about the potential for additional discoveries to further enhance this new gold district,” Mike Sutton, the Galway’s vice president of exploration, commented in an Apr. 25 press release.

In February, the company released the latest drill results from the 20 sq. km Estrades property, approximately 95 km north of the town of La Sarre.

Highlights from the drilling included drillhole GWM-21E-85, which intersected 5.3 metres grading 14.3 grams gold per tonne, 192.2 grams silver per tonne, 18.1% zinc, 0.2% copper, and 1.6% lead (28 grams gold-equivalent per tonne or 51.5% zinc-equivalent) starting from 200 metres downhole, and 3.85 metres of 7.5 grams gold, 121.7 grams silver, 6.6% zinc, 0.2% copper, and 1.7% lead (14 grams gold-equivalent or 25.7% zinc-equivalent) from 192.1 metres.

Galway Metals has a market cap of $77.2 million.

GCM MINING

Canadian mid-tier gold producer GCM Mining (TSX: GCM; US-OTC: TPRFF) has a portfolio of precious metals projects in South America.

The Toronto-headquartered company owns the Segovia mining complex in the Department of Antioquia in northern Colombia, approximately 180 km northeast of Medellin. Segovia is a world-class, multi-million-ounce high-grade gold mine that has been producing for more than 150 years.

Over the past 11 years, the mine has produced over 1.5 million oz. of gold with an average head grade of 13.6 grams gold per tonne. In 2021, it produced 206,389 oz. of gold at a head grade of 12.8 grams gold per tonne.

In March, the mine produced 16,293 oz. of gold, bringing the total production to 49,951 oz. for the first quarter of 2022, up from 49,058 oz. for the same period last year. The mine also produced 89,782 oz. of silver over quarter one of this year, up from 57,315 oz. over the same period in 2021., and 252,000 lb. of zinc and 338,000 lb. of lead.

GCM said the mine remains on track meet its 2022 production guidance of 210,000 gold ounces.

Currently, Segovia is producing gold from four underground gold mines on the property: Providencia, El Silencio, Sandra K, and Carla.

In 2022, the company plans to conduct a diamond drill program on the property comprising approximately 91,000 meters of drilling, with up to 52,000 meters of in-mine and near-mine drilling and 15,000 meters of underground in-fill drilling at the four mines. In addition, it plans to undertake 24,000 meters of brownfield drilling at high-priority targets within 24 known veins not being mined.

The company also owns the Toroparu project in the highly prospective Upper Puruni River region of western Guyana, one of the largest undeveloped gold-copper projects in the Americas.

In February, the company released an updated mineral resource estimate for the project. It now contains 185 million measured and indicated tonnes grading 1.42 grams gold per tonne, 1.01 grams silver per tonne, and 0.097% copper for 8.4 million contained oz. gold, 6 million oz. silver, and 396.3 million lb. copper. Inferred resources add 13.8 million tonnes grading 2.74 grams gold, 0.4 gram silver, and 0.08% copper for 1.2 million oz. gold, 177,000 oz. silver, and 24.2 million lb. copper.

GCM Mining has a market cap of $453 million.

KOOTENAY SILVER

Kootenay Silver (TSXV: KTN; US-OTC: KOOYF) is a precious metals exploration company with a portfolio of projects in Mexico, including the Columba and La Cigarra silver projects in the state of Chihuahua, the Promontorio and La Negra silver projects in Sonora, and the Copalito silver-gold project in Sinaloa.

In May, Kootenay announced that the arrival of drill crews at the Columba, a past-producing high-grade silver mine that operated from 1900 to 1910, where the company has identified numerous epithermal high-grade veins that vary in widths of over six metres along more than 10 km of strike length.

The company plans to drill 15,000 metres using two diamond core drills as part of its 2022 drill program on the property. It said initial drilling will focus on deeper testing of the F vein and expanding previous intercepts at the D and B veins.

Highlights from its 2019 and 2020 drill programs include drillhole CDH-19-041, which was drilled on the F vein, intersected 39.9 metres grading 159 grams silver per tonne starting from 15 metres downhole, including 1.15 metres of 919 grams silver and 1 metre of 953 grams silver; CDH-21-110, drilled on the D, returned 29.9 metres grading 453 grams silver from 178.2 metres, including 17.8 metres of 650 grams silver; and CDH-21-82, drilled on the B, cut 9 metres grading 691 grams silver from 183 metres, including 4.6 metres of 1,186 grams silver.

The mineralized system at La Cigarra has been traced over approximately 9 km and outcrops at surface as a silver soil anomaly with numerous historic surface workings along strike. The project hosts 20.8 million measured and indicated tonnes grading 76 grams silver per tonne for 50.5 million oz. contained silver and inferred resources of 1.8 million tonnes grading 61 grams silver for 3.5 million oz. of silver.

At Promontorio, Kootenay says that over 65,000 metres of drilling has delineated an open-pittable resource of 44.5 million tonnes in the measured and indicated category grading 58.73 grams silver per tonne for 84 million oz. silver and 14.6 million inferred tonnes grading 46.34 grams silver for 21.7 million silver ounces.

The company says that ongoing ground exploration within a 2-3 km radius of La Negra has identified two high priority mineralized trends with clear underlying geologic controls. Additional areas of silver and gold mineralization also being evaluated, it said.

Kootenay Silver has a market cap of $44.6 million.

MARATHON GOLD

Marathon Gold (TSX: MOZ) is a Toronto-based gold company advancing its 100%-owned Valentine gold project in central region of Newfoundland and Labrador, approximately 80 southwest of the mining communities of Millertown and Buchans.

In April, the company released the latest drill results from the final 24 diamond drill holes completed as part of its 2021 infill campaign at the Berry deposit and an additional four holes from 2021 drilling at the Victory deposit.

Highlights from the drilling at Berry included hole VL-21-1181, which intersected 83 metres grading 1.72 grams gold per tonne starting from 280 metres downhole, including 1 metre of 21.57 grams gold, and VL-21-1160, which returned 13 metres grading 7.18 grams gold 87 metres, including 2 metres of 95.07 grams gold.

Drilling at Victory included VGD-21-083, which hit 16 metres grading 1.78 grams gold per tonne from 122 metres, 1 metre of 10 grams gold from 128 metres, and 26 metres of 1.7 grams gold from 176 metres.

That same month, Marathon provided an update on its development plan for Valentine. The company said that, following completion of the provincial environmental assessment (EA) for the project, the federal EA is approaching a ministerial decision.

Site-specific permitting pertaining to provincial jurisdiction, including acquisition of a mining lease, has already commenced, it said.

Concurrently, Marathon has been notified by the Impact Assessment Agency of Canada (IAAC), which is overseeing the federal EA process, that it had completed its technical review of the project’s environmental impact statement.

IAAC will then complete and issue a draft EA report for the Valentine project for a 30-day public comment period. Following this review period, the Minister of Environment and Climate Change Canada will decide on the acceptability of the project for development. Approval would represent the completion of the federal EA process.

Subject to this regulatory schedule and receipt of sufficient permits, Marathon expects to start early works at the site in the third quarter, supporting full site mobilization by the end of the year. First gold pour is anticipated in late 2024.

Marathon Gold has a market cap of $480.2 million.

MAYFAIR GOLD

Canadian gold explorer Mayfair Gold (TSXV: MGF: US-OTC: MFGCF) is focused on advancing its 100%-owned Fenn-Gib gold project located in the Guibord and Munro Townships in northeast Ontario, approximately 80 km east of Timmins.

The 48 sq. km property is part of the extensive and prolific Abitibi gold belt and sits in the Timmins gold camp, which has produced more then 80 million oz. of gold over the past 100 years.

In May, Mayfair released further drill results from its resource expansion program on the property.

Highlights from drilling on the Expansion zone below the central and eastern area of the current conceptual open pit included hole FG21-180, which intersected 122.8 metres grading 0.77 gram gold per tonne starting from 420 metres downhole, including 63.3 metres of 1.06 grams gold per tonne.

Hole FG21-206 returned 134.2 metres grading 0.93 gram gold from 328 metres, including 24.3 metres of 2.06 grams gold, and FG21-213 hit 92.7 metres grading 1.02 grams gold from 328.5 metres, including 7.5 metres of 3.91 grams gold.

“Our expansion drill program continues to return excellent gold results from holes drilled outside the current Fenn-Gib deposit,” Patrick Evans, Mayfair’s president and CEO, commented in a May 2 press release. “We have now completed 71,498 metres of the fully-funded 80,000 metres drill program, which is supported by three drill rigs and expected to be completed in Q2 2022.”

The company, he added, expects to release an updated mineral resource for Fenn-Gibb in the third quarter of 2022, with a preliminary economic assessment planned for the fourth quarter of this year.

Mineral resources at the project currently stand at 70.2 million indicated tonnes grading 0.92 gram gold per tonnne for 2.08 million contained oz. gold and inferred resources of 3.77 million tonnes grading 0.62 gram gold per tonne for 74,967 gold ounces.

Mayfair Gold has a market cap of $101.6 million.

O3 MINING

Canadian gold explorer O3 Mining (TSXV: OIII; US-OTC: OIIIF) has a portfolio of projects spanning over 1,370 sq. km in Quebec.

The Toronto-headquartered junior is focused on advancing its 100%-owned Marban gold project in the west of the province, about midway between the towns of Val D’Or and Malartic.

In March, the company reported an updated mineral resource for the project. It now contains 67.2 million measured and indicated tonnes grading 1.07 grams gold per tonne for 2.32 million contained oz. gold and inferred resources of 2.1 million tonnes grading 1.2 grams gold for 80,000 oz. gold.

The company said the new estimate represents a 29% increase in the open-pit resources from the previous estimate in September 2020, and includes drill results from 209 holes (39,207 metres) of infill and expansion drilling.

A preliminary economic assessment for the project in October 2020 outlined an 11,000-tonne-per-day open-pit operation with a mine life of 15.2 years. The first 12 years will target annual production of more than 130,000 oz. of gold, peaking at 161,000 oz. in year nine, for an average annual output of 115,000 oz. for a total life-of-mine production of 1.8 million gold ounces.

The study forecast cash costs of US$741 per oz. and all-in sustaining costs (AISCs) of US$822 per ounce. Initial capex was pegged at $256 million and would be paid back, after-tax, in four years. The after-tax net present value was estimated at $423 million, based on a 5% discount rate and a gold price of US$1,450 per oz., and an after-tax internal rate of return of 25.2%.

O3 recently consolidated its land position at Marban by acquiring Emgold Mining’s (TSXV: EMR; US-OTC: EGMCF) East-West property, which sits adjacent to Marban. Under the agreement, O3 will acquire a 100% interest in the property for a cash payment of $750,000, issuing 325,000 common shares in O3, and the grant of 1% net smelter returns (NSR) royalty to Emgold, which O3 has the right to buyback.

O3 is also progressing its Alpha property, approximately 8 km east of Val-d’Or.

In 2022, the company plans to complete 33,000 metres of drilling focused on expanding the known deposits at Kappa and Bulldog, following up on Sigma-type veins in the Omega sector, and resource conversion of the Akasaba deposit.

O3 Mining has a market cap of $140.4 million.

REDPINE EXPLORATION

Redpine Exploration (TSXV: RPX; US-OTC: RDEXF) is a Canadian exploration company looking for precious metals’ deposits in Ontario.

The Toronto-headquartered junior is focused on advancing its 100%-owned flagship Wawa gold project in the Michipicoten Greenstone belt of the province, approximately 2 km southeast of the town of Wawa and 225 km north of Sault Ste. Marie.

The 69.9-sq.-km property has hosted numerous gold mines with historic production of over 120,000 ounces.

While the property hosted numerous historical mines, Redpine says these were owned by different operators and were never geologically connected. Initial drilling and exploration by Redpine led to discoveries of significant new gold mineralization at the company’s two deposits – Surluga and Minto Mine South.

In May, the company reported new results from its 2022 Phase 1 exploration program on Wawa, which, it says, continues to support the expansion of current resources and the potential for additional centres of mineralization within the project.

Highlights from drilling in the up-dip extension of the Sadowski zone in the Surluga South area included drillhole SD-22-350, which intersected 0.37 metres grading 22.5 grams gold per tonne starting from 16.51 metres downhole, including 0.41 metres of 145.2 grams gold from 17.66 metres and 0.3 metres of 162.52 grams gold from 18.07 metres, and SD-21-309, which returned 2.29 metres grading 52.12 grams gold per tonne from 16.51 metres.

Hole SD-22-337, drilled in the Jubilee Shear Zone in the Surluga North area, hit 0.81 metres grading 16.7 grams gold per tonne from 334.79 metres, including 0.83 metres of 24.9 grams gold from 337.75 metres.

An August 2021 mineral resource estimate for Wawa’s two mineral deposits outlined an indicated resource of 230,000 oz. gold (1.2 million tonnes grading 5.31 grams gold per tonne at Surluga and 105,000 tonnes grading 7.5 grams gold at Minto Mine South) and inferred resources of 471,000 oz. gold (2.4 million tonnes grading 5.2 grams gold at Surluga and 354,000 tonnes grading 6.6 grams gold at Minto Mine South).

Redpine Exploration has a market cap of $39.9 million.