Weekly Nugget

Mining News Roundup Oct. 29, 2020

Pure Gold Mining (TSX-V: PGM, LSE: PUR) has released results from its surface and underground exploration program at its PureGold Mine (formerly Madsen project) in Northern Ontario’s Red Lake mining camp.

PureGold Intersects 1,147 g/t Gold over 1.2 Metres, Red Lake, Ontario

Pure Gold Mining (TSX-V: PGM, LSE: PUR) has released results from its surface and underground exploration program at its PureGold Mine (formerly Madsen project) in Northern Ontario’s Red Lake mining camp.

The results are part of an effort to expand known mineral resources outside of its 2019 mineral resource. 

Highlights from underground drilling:

  • 296.1 g/t gold over 4.9 metres 1,147.1 g/t gold over 1.2 metres;
  • 40.0 g/t gold over 2.2 metres, including 94.1 g/t over 0.9 metres;
  • 18.7 g/t gold over 2.8 metres, including 65.4 g/t over 0.7 metres;
  • 11.1 g/t gold over 6.7 metres. 

These drill holes confirm the grades of the gold mineralization in the Wedge resource area, support continuity of high-grade gold mineralization across the seven-kilometer long gold system, and confirm high-grade gold in mine stopes. 

Two surface rigs are expected to continue exploration and expansion drilling into 2021 with over 30,000 meters planned, and underground drilling is expected to continue over the life of the mine.

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Barrick JV Loncor Commences Drilling at Imbo, DRC

On Oct. 21, 2020, Loncor Resources (TSX: LN; OTCQX: LONCF; FSE: LO51) began drilling at its 84.68%-owned Imbo Project in the eastern part of the Ngayu greenstone belt in the Democratic Republic of the Congo.  

The company plans to outline additional resources on top of the current 2.5 million ounces (inferred mineral resources of 30.65 million tonnes grading 2.54 g/t Au) at the Adumbi, Kitenge and Manzako deposits which make up the Imbo project.  

Imbo is 220 kilometres southwest of Barrick Gold’s (TSX: ABX; NYSE: GOLD) Kibali gold mine.  In 2019, Kibali produced 814,000 ounces of gold at all-in sustaining costs of US$693/oz.  

Barrick has highlighted the Ngayu Greenstone Belt as an area of exploration interest and has an agreement to earn 65% of any discovery in Loncor’s 1,894 square kilometers of claims.  

The company signed a joint-venture agreement in 2016 with Barrick. Under the terms of the agreement Barrick manages and funds exploration at Imbo until the completion of a pre-feasibility study on any gold discovery.  

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Zijin’s Buritica Gold Mine Officially Opens, Colombia

The Buritica gold mine, operated by Zijin-Continental Gold, a subsidiary of Chinese company Zijin Mining Group, has officially announced the beginning of production as Colombia's  first large-scale underground gold mine. The mine will initially produce 240,000 ounces of gold a year and hope to support the economy in the province of Antioquia. 

The inauguration brings to a close more than three years of construction, with investment of US$610 million. Buritica will enter commercial operation in December, generating more than 2,300 direct and indirect jobs.

Four major copper and gold exploration and production projects, including Buritica, are part of Colombia’s mining industry strategy to diversify away from coal, according to Minister of Mines and Energy Diego Mesa.

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Friedland Going to Hog Heaven, Invests Brixton Metals’ Montana Mining Project

Brixton Metals (TSX-V: BBB) has signed a joint venture agreement on its Hog Heaven project with High Power Exploration (HPX), Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF) founder Robert Friedland’s privately-owned exploration company.

Under the joint-venture agreement, High Power can earn a 51-per-cent interest in the project by paying a total of US$4.5 million in cash and spending US$15 million on exploration.

It can earn an additional 24-per-cent stake for a total 75-per-cent interest, by spending a further US$25 million on exploration, which would bring the total possible value of the transaction to US$44.5 million. Friedland is also financing a US$2-million private placement to remove 1.5% of an existing NSR with Pan American Silver (TSX: PAAS; NASDAQ: PAAS).

The Hog Heaven project is a silver-gold-copper-lead-zinc deposit with historical production located in Flathead County, Montana.

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Former Nevsun Team at Sun Peak Metals Plans Drilling of Shire VMS Project, Ethiopia

On Sept. 3, 2020, Sun Peak Metals (TSX-V: PEAK) announced plans for an 8,000-metre drill program at its Shire project, Ethiopia.  The Shire Project comprises four exploration licenses: Nefasit, Adi Dairo, Terer & Meli, which cover ~900 square kilometers in the Arabian-Nubian Shield. 

The licenses are in the same geological environment as both the Bisha Mine and the Asmara Projects to the north in Eritrea and Newmont's exploration efforts in northern Ethiopia. The company will be testing gold and VMS targets, using exploration techniques the company has developed over 20 years in this geological terrain. 

At the helm of Sun Peak is Gred Davis with David Daoud as chief exploration officer. These two have a long history in Africa, in particular the Arabian shield with their discovery and the eventual sale of Nevsun’s Bisha mine in Eritrea, a VMS deposit, to Zijin Mining Group for US$1.41 billion. 

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