55 North Mining Inc. [FFF/CSE] has released an updated mineral resource estimate for its high-grade Last Hope Gold Project in Manitoba.
The company said resources in the indicated category have jumped by 87% from a previous estimate to 408,300 tonnes of grade 5.41 g/t or 71,100 ounces. Resources in the inferred category are up 48% to 1.55 million tonnes of 5.48 g/t gold or 273,000 ounces.
The company said assay results from 21 core holes (8,530 metres) were incorporated into the updated estimates.
The NI-43-101 compliant estimate compares to the previous estimate of 213,000 tonnes, grading 5.53 g/t or 37,966 ounces of indicated gold and an inferred resource of 1.1 million tonnes, grading 5.17 g/t or 184,120 ounces.
On Monday, 55 North shares eased 8.3% or $0.005 to 5.5 cents on volume of 224,120. The shares trade in a 52-week range of 23 cents and $0.04.
The Last Hope deposit is a lode gold deposit located in northern Manitoba, and is situated approximately five kilometres south of the southern portion of the Lynn Lake Greenstone Belt within the Churchill Province of the Canadian Shield.
Gold mineralization occurs in association with sulphides within at least two shallow-plunging ore shoots in a northwest-southeast strike (for over 500 metres).
The project is located 20 kilometres south of Alamos Gold Inc.’s [AGI-TSX, NYSE] Lynn Lake project, which ranks as one of the highest-grade open pit gold deposits in Canada. Proven and probable gold reserves at the site currently stand at over 2.0 million ounces.
The updated resource estimates reflect previously announced results from the 2020/2021 winter drill program. The results indicated up and down plunge extensions of high-grade shoots, and the extension along strike of high grade gold mineralization beyond the extent of the previous resource estimate dated February, 2021.
The company said it is considering a scenario whereby it could mine the top 20 metres of high-grade mineralization utilizing simple, potentially low cost trenching methods. The company also said it believes that the near surface mineral resource announced on Monday is amenable to surface extraction as the vein in near vertical and virtually outcrops at surface.
The potential method considered would utilize blast cuts which would be mined using a narrow remotely operated loader, crane and bucket.
“Although the analysis method is still in its early stages, this option could potentially provide the opportunity for a low capex and opex method for upfront extraction of a portion of the mineral resource, thereby having a very positive impact on upfront cash flow.’’