The company said results from 71 holes have been successful in confirming continuity of gold zones with infill drilling and expanding near-surface gold mineralization at both the New Beliveau and North deposits.
Highlights include results grading up to 11 g/t gold over 7.2 metres and 136 g/t gold over 1.0 metre.
The company recently launched a preliminary economic assessment (PEA) on the Val d’Or East Project. It said the PEA is expected to be completed by the first half of 2021, providing a base case assessment for the further development of the project.
An updated mineral resource estimate is also underway and will include the new drilling results, which were announced on Tuesday.
Probe shares advanced on the news, rising 6.06% or $0.08 to $1.40. The shares are currently trading in a 52-week range of $1.95 and 54 cents.
Probe President and CEO David Palmer said results of 2020 drilling along the Pascalis Trend have improved the company’s understanding of these deposits greatly as they advance into the PEA. “The PEA will provide investors with a much more detailed view of what mining scenario could look like at Val d’Or East and provide a better insight into the value of the project,” he has said. “We have grown from a gold resource of approximately 770,000 ounces to over 3.4 million ounces, and with another year of drilling under our belts our next updated resource will provide us with a solid base for the PEA.”
Probe Metals was formed as a result of the sale of Probe Mines Ltd. to Goldcorp Inc. in March 2015. Newmont Goldcorp Corp. [NGT-TSX, NEM-NYSE] has a 12% stake in Probe Metals.
The Val d’Or East Project is a district-scale land package, comprising 435 km2 and represents one of the largest land holdings in the Val-d’Or mining camp. The property is host to three past producing mines (Beliveau, Bussiere, and Monique) and falls along four regional mine trends, including 14 kilometres of strike length along the prolific Cadillac Break.
The project hosts a measured and indicated resource of 866,300 oz gold plus inferred resources of 2.56 million oz. The estimate includes resources from the company’s 100%-owned Pascalis, Courvan, Monique, and Lapaska properties as well as its option property, Cadillac Break East.