Wallbridge Mining Co. Ltd. [WM-TSX; WC7-FWB] shares were active Monday March 25 after the company released encouraging results from its 100%-owned Fenelon gold property in northwestern Quebec.
Wallbridge said the first hole of its 2019 drill program has intersected multiple visible gold-bearing shear zones and other abundant mineralized veins over an approximately 275-metre core length.
The company said these multiple structures and gold occurrences confirm the recently announced Area 51 discovery as a significant size target, which increases the ultimate size potential of the gold system on the Fenelon property. Assay results are pending and will be reported when received, the company said.
In addition, Wallbridge said it continues to achieve positive results from the underground drill program targeting the extensions of other known zones at Fenelon. Underground drill results include 5.74 g/t gold over 2.32 metres in the Naga Viper zone.
Wallbridge rallied on the news, rising 13% or $0.035 to 30.5 cents on volume of almost 4.2 million. That put Wallbridge among the most actively traded stocks on the TSX on Monday. The shares trade in a 52-week range of 35 cents and $0.055.
Wallbridge is establishing a pipeline of projects that will support sustainable production and revenue as well as organic growth through exploration and scalability.
Its portfolio includes the Fenelon Gold property, which covers 1,052 hectares and is located in northwestern Quebec, about 75 km northwest of Matagami. The project is proximal to the Sunday Lake Deformation Zone, which hosts the Detour Gold Mine in Ontario and Balmoral Resources Ltd.’s [BAR-TSX; BALMF-OTC] gold deposits at Martiniere.
Fenelon contains the Discovery Zone gold deposit and surrounding 4-km strike length of a gold-hosting secondary splay of the Sunday Lake Deformation Zone.
Since acquiring the property in late 2016, Wallbridge has completed an updated resource estimate and a positive pre-feasibility study (PFS) on the existing gold resource, which consists of 38,000 ounces in the measured and indicated category, plus a further 1,900 ounces of inferred material.
Results of the 2017 drilling, along with geological and structural modelling combined with a reinterpretation of the deposit have led to an expanded exploration target of an additional 70,000-120,000 ounces of gold, the company has said.
The 2019 drill program (50,000-75,000 metres planned) recently got under way with one surface and one underground drill rig. An additional two drill rigs will be added in April. The goal is to prove up substantial additional underground gold resources at Fenelon in preparation for an updated NI 43-101-compliant resource estimate.
The 2019 underground resource drilling will initially be carried out from the recently established 5130 level (125 metres depth) and was designed to target the main high-grade shoots down plunge to a depth of 200 metres.
On Monday, the company said six intersections of visible gold were observed in the first hole of the 2019 surface drilling program within Area 51, confirming the significance of this previously unknown mineralized corridor, which is located approximately 3,300 metres west of the bulk sample area that was discovered by the last hole of the 2018 program. The Area 51 gold system represents one of the main targets for drilling this year.
Visible gold was observed to be present in five of 12 underground holes and the one surface hole drilled in 2019 so far.
In addition to previously-reported assay results, in-fill sampling has now resulted in outlining additional mineralized zones within the newly discovered Area 51 gold system, including 5.16 g/t gold over 3.40 metres and 1.00 g/t gold over 5.65 metres.
The balance of assay results from the 2018 drill program, as well as from the 2019 underground and surface drill programs are currently pending, the company said.