Alamos Gold Inc. (TSX: AGI) (NYSE: AGI) drilling efforts in 2022 extended gold mineralization beyond its mineral reserves at its Lynn Lake Project in Manitoba.
The company released its results on Wednesday ahead of a feasibility study, which will be released later this week and incorporate the Gordon and MacLellan gold deposits.
The Lynn Lake gold project (LLGP) covers 25 kilometers in length and includes a total of 58,000 hectares of land.
In December 2017, a prefeasibility study concluded that the MacLellan and Gordon deposits could produce 143,000 ounces of gold every year for 10 years, and it would cost the company $745 per ounce.
Alamos is doing another study in 2023 to see if it can mine the gold for even longer and produce more gold each year in the first 10 years. The company anticipates it being cost-effective as before. It has also been exploring other areas, like Gordon, Burnt Timber, Linkwood, Maynard and Tulune.
In March 2023, the company got permission from the government to proceed with the project.
Alamos has drilled about 18,233 meters in 2022 and 7,979 meters in the first half of 2023, spending $4.6 million on exploration.
Lynn Lake project map. Image via Alamos Gold.
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Alamos drills 11 holes in Gordon gold deposit in 2022
The Gordon gold deposit is located about 37 kilometers northeast of the town of Lynn Lake and can be reached through a 14-kilometer gravel road from Highway 391, which is usable in all weather conditions. The gold in this area is mainly found in certain types of rocks, including magnetite iron formations with quartz, pyrrhotite and pyrite veins, as well as surrounding areas with a high concentration of certain minerals.
In 2022 and 2023, the company drilled 11 holes in the Gordon deposit, totalling 1,823 meters, with the aim of finding more gold near the 2023 study’s planned mining area. The drilling was successful in finding significant gold in the far eastern part of the mining area, which was previously considered waste material.
The Burnt Timber deposit can be reached easily through a gravel road that is usable all year round, starting from Highway 397, about 14 kilometers south of the Town of Lynn Lake. It is also about 28 kilometers away from the planned MacLellan mill.
The Burnt Timber and Linkwood areas have valuable minerals, but they were not included in the 2023 Study. Geologists commissioned by the company found that the deposits at Burnt Timber and Linkwood have a lot of potential for containing a smaller but higher-grade amount of valuable minerals.
Based on these new geological models, the company plans to do more detailed drilling in both the Burnt Timber and Linkwood areas in 2024, expanding on the exploration drill campaign completed in 2022.
Gordon deposit drillhole plan map. Image via Alamos Gold.
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Maynard target drilling covers 2,832 meters
The Maynard target area is situated 8 kilometers northwest of the Burnt Timber deposit, 5 kilometers northwest of the Linkwood deposit, and about 20 kilometers away from the proposed MacLellan mill.
Alamos drilled six holes under and extending from old drill holes where it previously found promising signs of gold in 2022 and followed that with seven more holes, covering a distance of 2,832 meters. The goal was to continue exploring and expanding the known area, stretching it up to 1000 meters in length and also going deeper.
The Tulune target area is in the northern part of the Lynn Lake greenstone belt, about 23 kilometers east of the MacLellan Deposit and 11 kilometers west of the Gordon Deposit. It’s located at a bend in a large geological feature called the Agassiz Shear Zone.
In 2015, Alamos found gold in the Tulune area. The company gold content up to 361 grams per ton of gold. Then aided by mapping and soil samples, the company reprocessed an induced polarization (IP) survey to help guide drilling efforts. In 2020, Alamos drilled five holes, covering a total distance of 978 meters. The most significant gold find came from a hole in the northern part of a specific type of rock called granodiorite, known to carry gold.
Following this success, Alamos drilled completed 12 holes covering 4,985 meters in 2021, and followed that with 20 more holes in 2022 and 2023 covering 6,581 meters. So far, all 29 holes drilled within the granodiorite before 2023 have found gold.
So far in 2023, Alamos has drilled five more holes covering 1,416 meters, focusing on the same area as the 2022 success, and the company is waiting for the results from this latest drilling to see if it found more gold.
Alamos shares dipped 1.7 per cent to $15.52 on Wednesday on the Toronto Stock Exchange.
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Calibre Mining shows strong gold assays at Pan Mine
Calibre Mining (TSX: CXB) (OTCQX: CXBMF) is another Canadian-based gold producer with operating mines in Washington, Nevada and Nicaragua.
Calibre announced new results from the Dynamite North and Palomino targets on Tuesday. These findings, along with the new Coyote target located south of the open pit, show promising signs of increased resources and high-grade mineral deposits at the Pan site.
Recent assays from Palomino and Dynamite North show gold grades that exceed the site’s mineral resource grade of 0.4 g/t gold.
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