by Stephen McGibbon
The drills have stopped turning in anticipation of a short break during the holiday season. As a result, we are in a position to provide our final update of the year which summarizes not only our most recent diamond drilling results, but also initial results of our metallurgical characterization. These final drill results are the culmination of an aggressive two year exploration campaign at Hasaga and the maiden mineral resource estimate is expected to reflect some of that value addition. The resource estimate will integrate all drilling, mapping and channel sampling data that has been collected and used to support a comprehensive litho-structural model. The model is rock solid.
We are particularly satisfied that we have been able to move the Hasaga Property forward at a fast pace since we secured it from Goldcorp. Having acquired the majority of the Hasaga land package through an exchange of some non-core assets, the drilling has been able to demonstrate a significant increase in value from organic growth in our portfolio. Over the two-year period that exploration has been conducted at Hasaga, we will have spent less than $15 million; once the resource is reported on, we will be able to assess the cost of discovering these initial resource ounces and compare it with other discovery rates such as at Hardrock near Geraldton.
The metallurgical results that make up part of the press release today also provides important insight. We found out that high gold recoveries (~94%) can likely be anticipated when utilizing a fine grind and conventional milling circuit on a range of Hasaga mineralization composites, but also that bottle rolls on more coarsely crushed composites return samples that recovery less than 50% of the gold. This isn’t a big surprise to us, given the nature of the host rock, but we needed to confirm our suspicions none-the-less.
We look forward to another exciting campaign in 2017; however, in the next few weeks where we take time to strengthen family ties and friendships, it is my sincere hope that all our community and business partners in the Red Lake area have a safe and rewarding holiday season.