Manitou Gold Inc. [MTU-TSXV] said Wednesday May 12 that it plans to accelerate exploration on its 100%-owned Goudreau Project located along the eastern portion of the regional Baltimore deformation zone (BDZ) in northeastern Ontario about 50 km northeast of Wawa.
The company said it is tripling the size of the 2021 drill program to 30,000 metres after completing a $5 million financing that consisted of the private placement of 45.7 million flow-through common shares at 11 cents per share.
Alamos Gold Inc. [AGI-TSX, NYSE] purchased 15.9 million of the offered flow-through shares to maintain its 19.9% stake in Manitou. O3 Mining Inc. [OIII-TSXV] also participated in the offering to maintain its 9.9% of the company’s outstanding shares respectively.
The additional drilling will be largely focused on testing new targets along the additional 10 km of strike on the western part of the BDZ.
Manitou shares eased 5% or $0.005 to 9.5 cents on volume of 183,100. The shares are currently trading in a 52-week range of $0.13 and $0.035.
The Goudreau Project comprises 22,500 hectares of consolidated gold properties and is underlain by the Archean-aged rocks of the Michipicoten Greenstone belt. The assembled lands consist of 37 km of strike length with at least seven under-explored large-scale deformation zones showing favourable lithology.
The entire set of properties are located between Alamos Gold’s Island Gold Mine and the past-producing Renabie Gold mine near the town of Missanabie.
Manitou recently released drilling results from the Stover Zone, which the company said have significantly expand known gold mineralization along strike, to 400 metres, and down-plunge to 500 metres.
The results include 5.5 metres, grading 2.5 g/t gold (starting at 525 metres down-hole), including 2.0 metres of 3.7 g/t gold in hold MTU-21-12, within a wider intersection of 24.5 metres, grading 1.0 g/t gold, expanding gold mineralization by 200 metres down-plunge.
The company said gold mineralization along the Stover Zone main shear has now been confirmed by drilling over a strike length of 2.2 km. Continued drilling will test mineralization further along strike.
All gold zones encountered along the BDZ to date remain open in all directions.
The company said promising new targets are emerging proximal to the contact of an ultramafic unit with an interpreted strike length of over 6.0 km. Finalization and planning of specific drill targets along the 10-km strike on the western part of the BDZ is scheduled to be completed by early June, 2021, with drilling of such targets expected to begin by mid-June, 2021.
Drilling operations are resuming after a planned temporary suspension of operations due to the spring breakup.