Maple updates gold estimate at Agnico joint venture
Maple Gold Mines Ltd. [MGM-TSXV, MGMLF-OTCQB, M3G-FSE] has released an updated resource estimate for its Douay Gold Project in Quebec, which the company is working to develop in a 50-50 joint venture with Agnico Eagle Mines Ltd. (AEM-TSX, AEM-NYSE).
The joint venture combines the Douay Project and Agnico’s contiguous Joutel Project in a consolidated joint property package located in the Abitibi region of Quebec. The Joutel project hosts Agnico’s past-producing Telbel mine.
According to the latest estimate, pit-constrained indicated resources at Douay have jumped 21% to 511,000 ounces of gold at an average grade of 1.52 g/y. Total inferred resources (including underground and pit constrained) have increased by 7% to 2.52 million ounces of gold at an average grade of 0.97 g/t.
The Douay deposit was previously estimated to contain indicated mineral resources of 422,000 ounces or 8.6 million tonnes at an average grade of 1.52 g/t gold. On top of that is an inferred resource of 2.35 million ounces or 71.2 million tonnes at an average grade of 1.03 g/t gold.
Highlights from the new estimate include:
- A pit constrained inferred resource of 2.06 million ounces at an average grade of 0.94 g/t gold.
- The underground inferred resource now stands at 460,000 ounces at an average grade of 1.68 g/t.
- Initial indicated resources in the Nika Zone stand at 30,000 ounces, grading 1.13 g/t gold, and 58,000 ounces, grading 2.85 g/t gold in the 531 Zone.
Total contained gold ounces at Douay have increased along with further conversion from inferred to indicated resources categories based on successful exploration and infill drilling, comprehensive mineralization modelling and using higher cost and gold price assumptions, the company said.
“We completed two modest drill programs in 2020 amid the global pandemic and followed that up with a roughly 10,000-metre maiden joint venture drill campaign in 2021 that, in line with our expectations, successfully converted inferred to indicated ounces and ultimately increased the overall gold endowment at Douay,” said Maple Gold President and CEO Matthew Hornor.
He said targeted infill drilling demonstrates the potential for future resource conversion. “Looking ahead, the company is targeting larger step-out and deeper drilling along the full extent of the Douay area,” Hornor said.
Agnico holds a 12.8% stake in Maple after complete a $6.2 million strategic investment in the junior by subscribing for 25.8 million units in a non-brokered private placement at 23.9 cents per share.
The updated resource estimate was released after the close of trading on March 17, 2022. On Friday, the shares were unchanged at 34 cents and currently trade in a 52-week range of 48.5 cents and 23.5 cents.
The new estimate is based on a total Douay drill database of 674 holes (241,626 metres) within the resource area, of which 38 (15,647) were completed by the company and the joint venture between 2019 and 2021.