EXPLORATION & DEVELOPMENT

Wallbridge hits high grades at Fenelon

Wallbridge Mining (TSX: WM) is hitting high gold grades as it continues an underground drilling programme at its Fenelon gold project in Quebec ahead of a production decision slated for early 2019.

Staff reporter
Highlights include 10.13m at 49.06g/t gold

Highlights include 10.13m at 49.06g/t gold

The company said yesterday it had observed visible gold in 33 of the 50 holes completed so far and highlights from the latest partial assays included 10.13m at 49.06g/t gold.

"The highlighted intersections released today further confirm the robust gold grades and thicknesses within parts of the Chipotle and Naga Viper zones that were selected for this bulk sample programme," exploration vice-president Attila Péntek said.

Wallbridge started ramp development in June and said this was now nearing the second level, in preparation for the remaining bulk sample stopes.

The company said its 35,000 tonne bulk sample programme was designed to test a few stopes in several zones, with an estimated average grade of 18-25 g/t gold, and was expected to produce 19,000-26,000 ounces of gold with close to 50% of the gold priced at C$1,720/oz (US$1,332/oz).

It secured US$8 million for the bulk sampling programme in March and said the expected cash flow, net of all bulk sample costs and including the financing costs, was anticipated to be sufficient to cover the budgeted working capital requirements.

Wallbridge acquired Fenelon, which has seen two previous bulk sampling programmes, for C$3.7 million (US$2.86 million) in late 2016.

It released a positive prefeasibility study last year that outlined an initial capex of $5.24 million (US$4 million) and a post-tax IRR of 60%, for an initial 18-month mine life focused on the top 100m of the deposit.

Wallbridge shares have ranged between C5.5-15c over the past year and closed 11.11% higher to 10c yesterday, valuing it at $32.5 million.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.