Barsele Minerals Corp. [BME-TSXV] on Tuesday August 6 released an operational update related to ongoing exploration within the Barsele Gold-VMS project in northern Sweden.
The exploration program is being operated by Barsele’s joint venture partner Agnico Eagle Mines Ltd. [AEM-TSX, NYSE]. Ownership in the Barsele Project is split between Agnico-Eagle and Barsele, which own 55% and 45%, respectively. Agnico can earn an additional 15% stake in the project by completing a pre-feasibility study.
Under an agreement, Barsele is not required to put up any cash until the pre-feasibility study is completed.
Barsele is a Canadian junior exploration company managed by the Vancouver-based Belcarra Group, which manages a portfolio of juniors, including Barsele, Orex Minerals Inc. [REX-TSXV], and Dolly Varden Silver Corp. [DV-TSXV]. Barsele is the junior’s flagship property. The project is located on the western end of the Proterozoic “Skellefte Trend,” a prolific massive sulphide deposits belt that intersects with the “Gold Line” in northern Sweden.
Past drilling has been mainly focused on verifying, defining and expanding the “Orogenic gold’ mineral resources within and along the Avan, Central and Skirasen zones and recently the Risberget Zone and the Skirliden area, as well as numerous VMS targets throughout the large claimed area.
The main gold-bearing system remains open in all directions, the company has said.
In a February, 2019 press release, the company said drilling along the Avan-Central-Skirasen gold zones has outlined an inferred resource of 25.5 million tonnes grading 2.54 g/t gold (2.08 million ounces of contained gold) as well as an indicated resource of 5.6 million tonnes, grading 1.81 g/t gold (324,000 ounces of contained gold).
The updated 2019 mineral resource estimate for the Avan-Central-Skirasen zones, now incorporates cut-off grades for pit constrained, bulk underground and selective underground extraction mining methods, depending on the nature and depth of the mineral resource.
Since January 2019, drilling has been focused on the pursuit of massive sulphide mineralization that is hosted in rocks of volcanic and sedimentary composition, partitioned by post mineral intrusive dykes and sills.
On Tuesday, the company said 7,390 metres of drilling was completed so far this year in 30 core holes. Since late 2015, a total of 142,531 metres of overburden penetration and core collection has been tabulated from a total of 341 holes.
The company said Tuesday’s press release includes results from 20 drill holes.
The 2019 drill results included in the release have been primarily focused on regional VMS targets along with some “Orogenic gold” target testing throughout the 47,000-hectare property.
Highlights include drill hole NOR19009, which targeted the Norra VMS Zone, and returned 10.0 metres of massive to semi-massive sulphides, grading 8.86 g/t gold, 5.17% zinc, 1.51% copper and 78.63 g/t silver.
“We are pleased to see compelling gold, zinc, copper and silver values associated with the Norra VMS deposit,” said Barsele President Gary Cope. “We look forward to ongoing positive results from the drill testing of this system, as well as from new evolving VMS discoveries within the claims,” he said.
On Tuesday, Barsele shares eased 15.09% or $0.08 to 45 cents. The shares are currently trading in a 52-week range of 35.5 cents and 90 cents.