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Battle North's McFinley resource adds to Red Lake momentum

Battle North Minerals, formerly Rubicon Minerals, has released a maiden resource for McFinley in Ontario’s Red Lake Mining Camp, in Canada, eying satellite feed potential for the shovel-ready Bateman operation nearby.
Battle North's McFinley resource adds to Red Lake momentum Battle North's McFinley resource adds to Red Lake momentum Battle North's McFinley resource adds to Red Lake momentum Battle North's McFinley resource adds to Red Lake momentum Battle North's McFinley resource adds to Red Lake momentum

Battle North Gols says the new McFinley resource could add incremental value to the nearby Bateman project in Ontario's Red Lake Mining Camp, in Canada

Staff Reporter

The McFinley deposit, west of Bateman's substantial F2 Gold Zone, hosts a measured and indicated resource of 205,700 tonnes grading 6.04 grams per tonne for 40,000oz. The inferred total is 259,000t at 8.53g/t for 71,100oz.

The resource statement is underpinned by 1,620m of recent confirmation diamond drilling, 57,945m of historical drilling, and historical and new chip sampling.

The company said the deposit benefitted from 3,900m of existing underground development connected to the Bateman project shaft and underground infrastructure. The resource only covers ground to a depth of 162m, below which mineralisation remains open.

Batte North characterised McFinley as part of a "string of pearls" of exploration targets near Bateman.

An October feasibility study on Bateman outlined strong returns from a C$109 million project with a $305 million net present value.

The study detailed average annual production of 73,837oz from an underground operation for an estimated 8.2 years at an all-in sustaining cost of US$865/oz. The C$305 million after-tax net present value at a 5% discount rate and a US$1,525/oz gold price is accompanied by a projected 50.3% internal rate of return.

CEO George Ogilvie said the McFinley resource estimate provided "an encouraging step" towards outlining future potential incremental mill feed to the Bateman project, which could potentially enhance the overall project economics.

"The existing development and close proximity to the project processing facilities allow us to potentially expedite the inclusion of the McFinley Zone mineralised material to the project mine plan. Given the success of our initial exploration programme and the potential to enhance the project economics, our plan is to continue to prioritise exploration activity at the McFinley Zone," he said.

Battle North unveiled a circa 1 million ounce updated resource for Bateman in July, renaming it (from Phoenix) as part of "a new era" for the company at the previously mined operation, which was shuttered soon after its first gold pour in 2015 due to various issues.

More recently it closed an upsized C$55 million financing to fund exploration, pre-development and development activities at Bateman.

Battle North shares (TSX:BNAU) last traded at $1.80, down 1.64% in Toronto, which capitalises it at $233 million (US$183 million).