Following short on the release of a resource update that tops 3 million oz. gold across all categories on the flagship Douay project in Quebec, explorer Maple Gold Mines (TSXV: MGM; US-OTCQB) believes it is reaching critical mass as it looks to drill test other underexplored zones, president and CEO Matthew Hornor says (watch the attached video interview).
The Douay project in the Abitibi Gold Belt of Quebec is held by a 50/50 joint venture between the company and Agnico Eagle Mines (TSX: AEM; NYSE: AEM).
In its recent resource update, Maple Gold reported a pit-constrained indicated resource of10 million tonnes for 511,000 oz. at an average grade of 1.59 grams per tonne of gold. This entails 11% growth from the 2019 estimate.
Maple also slightly increased the pit-constrained inferred resource base to 68.2 million tonnes for 2.045 million oz. gold grading 0.97 grams per tonne.
Notably, Maple also reported a 50% larger underground inferred resource of 8.5 million tonnes for 460,000 oz. at 1.68 grams per tonne gold.
The JV also reported an initial indicated resource for the emerging high-grade Nika Zone of 800,000 tonnes for 30,000 oz. grading 1.13 grams gold per tonne, and the 531 Zone of 600,000 tonnes for 58,000 oz. at an average grade of 2.85 grams gold based on significant intercepts from the JV’s first drill campaign.
According to Hornor, the company is consistently homing in on new targets using a refined methodology to prioritize targets that will move the needle forward in terms of resource growth. Last year, all seven holes completed in the fall program for 3,420 metres intersected multiple intervals of 1 gram gold per tonne or higher.
Among the highlight holes of the fall campaign were drill hole DO-21-316 at the 531 Zone, which intersected 1.54 grams gold over 32.2 metres from 430 metres downhole, including 4.63 grams gold over 6.7 metres within a longer interval of 2.13 grams gold over 18.9 metres.
DO-21-316 intercepts are about 135 metres down-plunge from the best intercept drilled to date at the 531 Zone (DO-21-310) and below the new resource estimate conceptual pit limits, indicating down-plunge continuity of high-grade mineralized trends and resource expansion potential at depth in the 531 Zone.
Another hole, DO-21-317, intersected three separate gold zones, including 5.58 grams gold over 3 metres from 258 metres downhole); 1.62 grams gold over 16 metres from 284 metres downhole; and 3.42 grams gold over 8 metres from 369 metres downhole.
The company interprets the intercepts in DO-21-317 to be located up-plunge relative to the DO-21-310 intercept and within a different stratigraphic horizon relative to DO-21-316, which is also favourable for gold mineralization, indicating multiple stacked gold zones that remain open.
“Our exploration team had delivered significant drill intercepts every year at the 531 Zone since 2019 when our targeting became supported by 3-D modelling,” said the company’s VP for exploration, Fred Speidel.
“These new intercepts further support our belief that there are multiple stacked gold zones with apparent cross-plunges that appear to be structurally controlled. Demonstrated gold mineralization combined with a general lack of drilling has our team excited about the potential for the 531 Zone to deliver additional pit-constrained and underground resources as we continue with larger step-out and deeper drilling in 2022,” said Speidel.
Mineralized zones at Douay are said to remain open for expansion and are mainly untested below an average vertical drill depth of approximately 350 metres.
Maple Gold’s projects benefit from established infrastructure access and boast about 400 sq. km. of highly prospective ground, including an established gold resource at Douay that holds significant expansion potential and the past-producing Eagle, Telbel and Eagle West mines at Joutel.
In addition, Maple Gold holds an option to acquire 100% of the Eagle mine property. The district-scale property package also hosts a significant number of regional exploration targets along a 55 km strike length of the Casa Berardi Deformation Zone that have yet to be tested through drilling, making the project ripe for new gold and polymetallic discoveries.
The company is well-capitalized and is currently focused on carrying out exploration and drill programs to grow resources and make discoveries to establish an exciting new gold district in the heart of the Abitibi.
At 29¢ per share, Maple Gold equity quoted in Toronto has lost almost 15% in value over the past 12 months, giving it a market capitalization of $97.2 million.
Maple Gold doing well – great interview and excellent team