EXPLORATION & DEVELOPMENT

Wallbridge to seek approval for bigger Fenelon

Wallbridge Mining says it will seek approval for a bigger operation at its Fenelon gold project in Quebec due to the project’s increased size potential.

Staff reporter
 Underground at Wallbridge Mining’s Fenelon gold project in Quebec

Underground at Wallbridge Mining’s Fenelon gold project in Quebec

Wallbridge said it had paused the current permitting process for a small-scale gold operation and, buoyed by exploration success in 2020, would embark on a fully-funded C$79 million programme this year including 170,000m of drilling and 4,800m of underground exploration development.

Recent drilling highlights had included 100.6m at 5.07g/t gold at the Tabasco-Cayenne zones.

"The company believes that the Fenelon gold system will support a much larger, substantially different project than originally envisioned and the current project description and ESIA [environmental and social impact assessment], as submitted in our application for a 500 tonne per day operation permit, no longer aligns with Fenelon's newly demonstrated larger size," president and CEO Marz Kord said.

"Focusing on a larger-scale Fenelon project would positively impact the permitting discussions with stakeholders and regulators, enhance the overall economics of the expanding resource and move us closer to the potential development of a larger mine at Fenelon."

The company expanded its Fenelon project in 2020 through the acquisition of neighbour Balmoral Resources.

It raised $63.8 million in an oversubscribed bought-deal raising in October, priced at $1.15 per share, and a week later outlined its fully-funded $112 million exploration and development programmes for 2020-2021.

The company is aiming to deliver an initial resource and economic studies for Fenelon this year.

Its shares (TSX: WM) have ranged from 32.5c-$1.35 over the past year.

They closed up 6.6% yesterday to 81c, similar to the price of 12 months ago and valuing it about $639 million (US$500 million).

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