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Palladium One doubles resource endowment at LK project, with new Kaukua estimates still to come

2021.09.09
Months of drilling success by Palladium One Mining Inc. (TSXV: PDM) (FRA: 7N11) (OTC: NKORF) on its Läntinen Koillismaa (LK) PGE-Cu-Ni property…

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This article was originally published by A Head of the Herd

2021.09.09

Months of drilling success by Palladium One Mining Inc. (TSXV: PDM) (FRA: 7N11) (OTC: NKORF) on its Läntinen Koillismaa (LK) PGE-Cu-Ni property in Finland have culminated in a much-increased resource endowment, further confirming the flagship project’s potential to host a large, bulk-tonnage deposit.

As announced in a September 7 news release, results from a 2,000m drill program at the Haukiaho zone were able to significantly increase this area’s resources (NI 43-101 compliant) to 32.7 million tonnes grading 1.15 g/t PdEq (palladium equivalent), for 1.21 million ounces of contained PdEq.

This resource update essentially doubles the resource endowment of the entire LK project, which now boasts 11 million tonnes of indicated resources grading 1.60 g/t PdEq (600,000 oz PdEq) and 44 million tonnes of inferred resources grading 1.19 g/t PdEq (1.7 million oz PdEq).

LK project total National Instrument 43-101 pit constrained resource estimate

Haukiaho Zone

The Haukiaho zone was the original focus of drilling in 2020 until the discovery of Kaukua South led the company to first explore the greater Kaukua area. However, as Palladium One stated on several occasions, Haukiaho had always been a priority given the robust historical data set available.

Haukiaho is base metal-rich (nickel and copper) and hosts some of the highest nickel grades on the LK project. As such, the company considers this to be an important part of its strategy to grow a multi-million-ounce resource base.

At 17 km in length, the Haukiaho trend currently represents the largest continuous patch of blue-sky potential on the LK property.

The latest resource estimate comprises only 3 km of this strike length; 2 km of strike extent, immediately east of the Haukiaho resource estimate, contains two significant IP chargeability anomalies with sufficient historical drilling to potentially be upgraded to inferred resources with modest additional drilling.

The remaining 12 km of the Haukiaho trend has not been drill tested by the company, though widely spaced historic drilling has demonstrated that the trend is mineralized. This historic drilling provides a high level of confidence for potential additional nickel-copper resources to be delineated, Palladium One said.

 LK project location map showing NI 43-101 compliant Kaukua deposit and historic Haukiaho resource, along with 2020 IP grids (blue lines) and current 2021 IP grid areas (black boxes)

The historic resource estimate was prepared in the 1980s by Outokumpu, a Finnish state-run mining company, using very widely spaced holes along a portion of the Haukiaho trend, which estimated 7 million tonnes grading 0.38% Cu and 0.24% Ni (however, no PGE assays were undertaken).

Then in 2013, Finore Mining Inc. completed a non-pit constrained NI 43-101 resource estimate over a much smaller strike length. Using a 0.1 g/t Pd cut-off grade, they estimated a resource of 1.13 million PdEq ounces within 23.2 million tonnes grading 1.51 g/t PdEq (0.31 g/t Pd, 0.12 g/t Pt, 0.10 g/t Au, 0.21% Cu, and 0.14% Ni). This resource estimate encompassed widely spaced drilling with a focus on maximizing tonnage, not grade.

The resource estimate prepared by Finore covers only less than 2 km of the 17 km Haukiaho trend.

According to Palladium One, this knowledge, coupled with the previous work by Outokumpu, points to the enormous potential to significantly add resources at Haukiaho with disciplined execution of exploration activities, which it has now accomplished.

Kaukua Area Update

In the same release, the company also updated shareholders on its drilling progress at the primary focus area of the LK project.

Resource definition drilling at Kaukua and the western half of Kaukua South (together known as the Kaukua area) has now been completed, with an NI 43-101 resource estimate scheduled for year-end.

While the Haukiahio trend is more copper-nickel rich, the Kaukua deposit is predominantly PGE (platinum group elements) rich, with two-thirds of the value in palladium and platinum.

Historic and current drilling in the Kaukua and western portion of the Kaukau South area

The Kaukua mineralized system is also much larger than previously understood, as evidenced by last year’s major discovery about 500m away at Kaukua South, which hosts a >4km long IP chargeability anomaly, of which 3.5 km has never been tested prior to Palladium One’s drilling work.

Initial drilling last year, therefore, focused on expanding known mineralization to the east of existing drill intercepts in the Kaukua South zone, taking priority over the planned drilling to upgrade and convert the historical resource estimate at Haukiaho.

That drilling successfully confirmed the eastern extension and the over 4 km strike length, insinuating the presence of a large-scale, shallow mineralized system with significant continuity.

Phase 2 drilling by Palladium One this year continued to return significant PGE grades and widths, including 47m at 2.3 g/t PdEq and 53m at 2.1 g/t PdEq, and was successful in extending the strike length of the Upper Zone mineralization.

These results added to the company’s belief that it could add a significant amount of open-pit resources to the upcoming NI 43-101 resource estimate.

The question is not if, but by how much, the Kaukua drilling will add to the already doubled mineral resources at the LK property.

LK Project Overview

The geology at LK property dates back to the early Palaeoproterozoic era, some 2.4 billion years ago, during which igneous activity produced mafic-ultramafic rocks containing palladium-rich copper-nickel-PGE sulfide minerals, chromium, as well as iron-titanium-vanadium.

Geologists believe that the deposit is a “basal Cu-Ni-PGE bearing sulfide accumulation within the larger Koillismaa Layered Mafic Intrusion” that is part of an intrusion belt that runs east-west across Finland and into neighboring Russia.

Location map of LK project in Finland

The LK project area is covered by exploration permit renewals, new applications and exploration reservation applications.

The exploration permit applications — covering a grand total of 2,485.3 hectares — are divided into two groups: the Kaukua group consisting of the Kaukua and Murtolampi targets, and the Haukiaho group covering the Lipeävaara and Haukiaho targets as well as Salmivaara, which represents the eastern and western extension of Haukiaho.

This project draws comparison with the Platreef type deposits of the Bushveld Igneous Complex in South Africa, the largest layered igneous intrusion within the Earth’s crust. It is also where most of the world’s platinum is produced.

Surface sampling and previous drilling have shown evidence of palladium, platinum, gold, copper, cobalt and nickel.

In 2019, Palladium One published the first NI 43-101 resource for the Kaukua target, placing the company on track for developing an open-pit nickel-copper-PGE mine in this highly mineralized part of Northern Europe.

Now, with the conversion of historical resources at the Haukiaho zone to double the project’s endowment, plus a maiden resource expected in the coming months at Kaukua South, we could be looking at an even larger open-pittable resource than imagined.

It’s important to note that the LK project covers a 38 km stretch along favorable basal contact, where the intersection of mafic-ultrafmafic rocks occurs, and the company has so far only focused on the currently known higher-grade portions.

Given its recent exploration success, we can’t rule out another Kaukua South like discovery.

Conclusion

It’s exciting times ahead for Palladium One shareholders as the company continues to grow its wholly-owned LK project in Finland. The latest update shows that the resource endowment can be doubled in just two short years.

The next mineral resource update is due at year-end for the Kaukua area, which could see LK become an even bigger PGE asset that could benefit from a healthy palladium market.

As Palladium One’s president and CEO Derrick Weyrauch stated in the September 7 release: “LK is clearly shaping up to be a globally significant project in a best-in-class mining jurisdiction.

“With Finland’s exceptionally well-designed mining and development laws and our existing resources, we believe that LK is well on its way to demonstrating the critical mass needed for a robust mining scenario. Based on the significant number of drill targets still to be tested, we see a tremendous amount of resource expansion potential remaining to be defined.”

Don’t forget, LK isn’t the only project that Palladium One is advancing at the moment. In Ontario, Canada, the company continues to outline a high-grade sulfide nickel system at its Tyko nickel-copper-PGE project, where drilling to date has returned some of the highest sulfide nickel grades in the world.

Palladium One Mining
TSX.V:PDM, OTC:NKORF, FSE:7N11
Cdn$0.225 2021.09.08
Shares Outstanding 241.2m
Market cap Cdn$55.5m
PDM website

Richard (Rick) Mills
aheadoftheherd.com
subscribe to my free newsletter

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Any AOTH/Richard Mills document is not, and should not be, construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.

AOTH/Richard Mills has based this document on information obtained from sources he believes to be reliable, but which has not been independently verified.

AOTH/Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness.

Expressions of opinion are those of AOTH/Richard Mills only and are subject to change without notice.

AOTH/Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission.

Furthermore, AOTH/Richard Mills assumes no liability for any direct or indirect loss or damage for lost profit, which you may incur as a result of the use and existence of the information provided within this AOTH/Richard Mills Report.

You agree that by reading AOTH/Richard Mills articles, you are acting at your OWN RISK. In no event should AOTH/Richard Mills liable for any direct or indirect trading losses caused by any information contained in AOTH/Richard Mills articles. Information in AOTH/Richard Mills articles is not an offer to sell or a solicitation of an offer to buy any security. AOTH/Richard Mills is not suggesting the transacting of any financial instruments.

Our publications are not a recommendation to buy or sell a security – no information posted on this site is to be considered investment advice or a recommendation to do anything involving finance or money aside from performing your own due diligence and consulting with your personal registered broker/financial advisor.

AOTH/Richard Mills recommends that before investing in any securities, you consult with a professional financial planner or advisor, and that you should conduct a complete and independent investigation before investing in any security after prudent consideration of all pertinent risks.  Ahead of the Herd is not a registered broker, dealer, analyst, or advisor. We hold no investment licenses and may not sell, offer to sell, or offer to buy any security.

Richard does not own shares of Palladium One (TSX.V:PDM). PDM is a paid advertiser on his site aheadoftheherd.com

Articles

Can Deep-Sea Mining Solve The Battery Metals Supply Crisis?

Can Deep-Sea Mining Solve The Battery Metals Supply Crisis?

Authored by Tsvetana Paraskova via OilPrice.com,

The key metals necessary to…

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Can Deep-Sea Mining Solve The Battery Metals Supply Crisis?

Authored by Tsvetana Paraskova via OilPrice.com,

The key metals necessary to advance the global energy transition will likely drive the next commodity supercycle.

Soaring demand for lithium, copper, nickel, cobalt, and aluminum could lead to a battery metal supply crunch as early as this decade, while surging prices could reverse a decade of cost declines, analysts say.  In a world increasingly focused on sustainability and ethically-sourced raw materials, some players in the metal mining industry believe that deep seabed mining operations in remote ocean areas could have a lower impact and lower costs than the land mining of key battery minerals - minerals associated with child labor in the Democratic Republic of Congo, for example, the world’s top producer of cobalt.  

However, deep seabed mining is years away from commercial operations, at best, due to a lack of international regulations and concerns about the environmental impact of mineral extraction from the seabed in areas and ecosystems that are yet to be studied by marine biologists. 

Some companies are betting on starting deep-sea mining in a couple of years. The Metals Company, for example, which just began trading on the NASDAQ, said last week it is working to “move the world’s largest estimated source of battery metals into production.” 

“We believe we have a solution that is more scalable, secure, lower cost and lower impact than mining these minerals on land: We can produce battery metals from high-grade polymetallic nodules found on the seafloor in the international waters of the Clarion-Clipperton Zone,” Gerard Barron, Chairman and CEO of The Metals Company, said. 

Polymetallic nodules contain four essential battery metals—cobalt, nickel, copper, and manganese—in a single ore, and they have been formed over millions of years by absorbing metals from seawater. Those nodules lie unattached to the seafloor, and The Metals Company plans to use a robotic collector to gently dislodge the metal-containing rocks from the seabed with minimal disturbance to the ocean floor. 

TMC has exploration and commercial rights to three contract areas which host an estimated 1.6 billion tons (wet) of polymetallic nodules containing high-grade nickel, copper, cobalt, and manganese, in the Clarion Clipperton Zone of the Pacific Ocean—between Mexico and Hawaii—regulated by the International Seabed Authority.  

The company says its studies have estimated that the polymetallic nodules within its exploration areas are enough to electrify a quarter of the world’s passenger vehicle fleet, or would be enough for around 280 million EVs.

TMC says its proposed method of retrieving battery metals generates much less carbon dioxide than conventional mining and is more environmentally friendly. 

“It’s like picking up golf balls on a driving range,” CFO Craig Shesky told the IEEE Spectrum magazine edited by the Institute of Electrical and Electronics Engineers. 

With access to funding and the listing on the NASDAQ, TMC expects to be able to complete pilot nodule collection trials in 2022, complete environmental impact studies by 2023, and file to move from exploration phase to exploitation phase in the third quarter of 2023, CEO Barron said in the statement last week. 

Yet, TMC and other companies vying for deep-sea mining face strong opposition from environmental organizations that say disrupting the ocean would lead to losses of biodiversity and change the carbon cycle in the waters. 

Moreover, the International Seabed Authority (ISA) has not yet agreed upon regulations on how to manage and supervise the exploration and extraction of minerals from the ocean floor. 

The Clarion-Clipperton Zone (CCZ) is a “biodiversity hotspot,” Craig Smith, an oceanography professor at the University of Hawaii at Manoa, told IEEE.

Smith has led research expeditions to the CCZ, which have found species new to science. It’s not possible to mine polymetallic nodules without causing ecological damage “over tens of thousands of kilometers,” the oceanography professor says. 

“Deep-sea mining may irreparably harm ocean ecosystems before we even have a chance to fully study its impacts,” the Center for Biological Diversity says

Even some potential customers of metals extracted from the ocean supported earlier this year a call for a moratorium on deep seabed mining.  

Automakers BMW and Volvo, as well as Google and Samsung SDI, vowed not to buy metals produced from deep-sea mining until the environmental risks of the activity are “comprehensively understood.” 

Tyler Durden Sun, 09/19/2021 - 08:10
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Falcon Gold continues acquisition spree around central Newfoundland’s mineral belts

2021.09.18
Area plays, where one company makes a discovery then other companies rush in to stake ground nearby, are often the main driver of growth in…

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2021.09.18

Area plays, where one company makes a discovery then other companies rush in to stake ground nearby, are often the main driver of growth in junior resource markets.

Noteworthy Canadian area plays in recent history include Eskay Creek in 1990, Voisey’s Bay in 1995 and the Yukon’s White Gold Rush in 2010, just to name a few.

At present, the central Newfoundland region is making a strong case for the next area play of the 21st Century. Specifically, the Exploits gold belt area has become the hunting ground for Canada’s next major discovery of gold and other important metals.

Ever since New Found Gold made a blockbuster discovery in late 2019 (one of Newfoundland’s best drill intercepts ever) at its Queensway project, the Exploits Subzone has turned into an attractive destination for gold explorers, with many having found exploration success within a short period of time. NFG, too, continues to report significant drill results to this day.

One up-and-coming explorer that is continuously expanding its land position in central Newfoundland is Falcon Gold (TSXV: FG, Frankfurt: 3FA.G, OTC: FGLDF), which recently acquired two additional properties in the province, both located in strategic locations close to known mineral zones and/or producing mines.

Baie Verte Property

The first deal, announced on August 18, comprises the staking of 548 claims totaling 13,700 hectares located along the Baie Verte Brompton Line (BVBL) of the central Newfoundland belt, home to some of the province’s largest defined gold deposits.

Regional location of Falcon’s claim groups

There are more than 100 gold prospects and zones, many of which are orogenic-style, related to major splays and associated second-order structures linked to the BVBL. Falcon’s new property covers a 50 km corridor along the BVBL.

The Baie Verte Peninsula currently hosts all of Newfoundland’s gold production.

Producing mines in the region are headlined by Anaconda Mining Inc.’s Point Rousse gold mine and Rambler Metals & Mining operations. Former producing mines include the Terra Nova mine, and deposits of the Rambler mining camp. All of these mines are in close proximity to the BVBL.

Falcon’s new claims are also 13 km southwest of the Glover Island Trend, an 11 km mineralized corridor that hosts 17 base metal and polymetallic mineral prospects as well as numerous gold showings and anomalies.

These include the Lunch Pond South Extension (LPSE) deposit owned by Mountain Lake Resources, which has indicated and inferred resources of 120,000 ounces of gold (June 2017).

The new land acquisition is also proximal to the Four Corners project held by Triple Nine Resources (see map below).

Location of the new Falcon Gold land along the BVBL

The Four Corners project consists of iron-titanium-vanadium mineralized rock that has been outlined for 3,000m in strike with intercepts 200m wide and 600m vertically. This project is said to contain sufficient tonnage and grades to warrant developing a world-class mineral resource.

Great Burnt Property

Then, in early September, Falcon announced it has acquired through staking 91 claims totaling 2,275 hectares in the Great Burnt greenstone belt of central Newfoundland, which is rich in base metals.

Regional location of Falcon’s Great Burnt copper property

The Great Burnt greenstone belt is host to the Great Burnt copper zone that contains an indicated resource of 381,300 tonnes at 2.68% Cu and inferred resources of 663,100 tonnes at 2.10% Cu.

Recent drilling by Spruce Ridge Resources in the area has returned some of the best copper results across the board, highlighted by 8.0% Cu over 27.2m and 6.9% Cu over 22.7m.

The Great Burnt greenstone belt also hosts the South Pond A and B copper-gold zones and the End Zone copper prospect within a 14 km mineralized corridor.

The greenstone belt is characterized by Besshi-type massive sulphide deposits, which generally occur in thick sequences of marine sedimentary rocks. Sulphide lenses can be several metres thick and extend for several kilometres. Besshi-type massive sulphide deposits are generally copper dominant and can contain precious metals such as gold and often cobalt.

As shown in the map below, Falcon’s Great Burnt property is located right in the middle of Spruce Ridge’s land package. It is also situated 4 km west of the Crest Resources-Exploits Discovery joint venture project within the Exploits Subzone.

Location of the Falcon Gold acquisition proximal to Spruce Ridge Resources

The Exploits Subzone is known to contain deep-seated gold-bearing structures of the Dog Bay-Appleton Fault — GRUB Line deformation corridor, and is home to the high-grade Keats gold zone of New Found Gold. Falcon’s new property is located just 20 km west of the Queensway project held by NFG.

“This property not only has the potential to host important Exploits Subzone orogenic gold mineralization but also copper-rich massive sulphides that contain gold,“ Karim Rayani, CEO of Falcon Gold, stated in a news release.

Since acquiring the claims, the company has received two joint venture offers, both of which were turned down as it believes the value of the property could only go up, seeing as most of the land in the Great Burnt belt has already been tied up.

“If right next door on the same fault line these guys are hitting up to 90% Cu, and this is a VMS system, Newfoundfound is going to have multiple discoveries,”  Rayani stated in a Proactive interview.

Falcon now intends to perform a high-resolution airborne magnetic and electromagnetic survey over the entire property, integrating mineralization trends and historical results to vector its exploration efforts.

As the company tends to do extensive research before picking up a project, there’s a good chance that multiple areas of interest could emerge from exploration work.

Flagship Gold Project

Central Newfoundland is just one of the many mineral-rich areas in Canada where Falcon holds a prominent land position.

With a total area of 10,392 hectares, Falcon presently has the largest land position in Ontario’s Atikokan gold camp — bested only by Agnico Eagle and its 32,070-hectare Hammond Reef exploration project.

Central Canada project and surrounding properties

The company’s flagship project — known as the Central Canada gold mine — is located approximately 20 km southeast of Agnico’s Hammond Reef gold deposit, which has an estimated 3.32 million ounces of gold (123.5Mt grading 0.84 g/t Au) in mineral reserves, and 2.3 million ounces of measured and indicated mineral resources (133.4Mt grading 0.54 g/t Au).

The Hammond Reef property lies on the Hammond shear zone, which is a northeast-trending splay off of the Quetico Fault Zone (QFZ), and may be the control for the gold deposit. Falcon’s Central Canada property lies on a similar major northeast-trending splay of the QFZ.

The Central Canada gold mine has an interesting mining history dating back to the beginning of the 20th Century.

Between 1901-1907, a shaft was sunk to a depth of 12m, and 27 ounces of gold from 18 tonnes were mined using a stamp mill. During the 1930s, the shaft was deepened to 40m, with about 42m of crosscuts, and a 75 t/d gold mill was installed.

Diamond drilling by Anjamin Mines in 1965 returned a 0.6m intersection of 37 g/t Au. Another hole assayed 44 g/t Au over 2.1m.

A more aggressive drill program in 1985 saw Interquest Resources punch in 13 holes for a total of 1,840m, the highlight being a 1.1m intercept of 30 g/t Au.

In 2012, further diamond drilling was completed by TerraX Minerals, consisting of three holes totaling 363m, spaced 55m apart to test a 110m strike length of the main Central Canada structure. The first hole of that program cut 10.61m averaging 1.32 g/t Au, including 1.82m of 4.77 g/t Au.

Central Canada Exploration Plans

Under Falcon Gold’s ownership, an initial seven-hole, 1,055m program completed in July 2020 featured a 3m interval of 10.17 g/t Au at 67m downhole. Falcon also intersected a new mineralized zone, untested by previous operators, at 104m depth, which sampled 18.6 g/t Au over 1m.

A second round of drilling took place in November-December, with another 10 holes totalling 1,890m to complement the previous seven holes plus the three holes done in 2012 by TerraX.

By March 2021, all assays from Falcon’s inaugural drill program have been received, from which continuity of the mineralized trend containing the historical shaft was confirmed.

Encouraged by these results, the company has undertaken additional work programs on the property this year, with initial focus on the outcrop exposures and trench areas. There, the geological team will be conducting detailed structural mapping along the 275m long strike of the Central Canada mine trend. The team will also expand its attention onto the other high-priority gold targets along strike and paralleling the mine trend.

For the 2021 drill program, Falcon is planning to complete up to 20 diamond drill holes for approximately 2,000m of core. The goal is to target gold mineralization in the shaft area, and to test other excellent gold zones such as mineralized quartz-feldspar porphyries and the northern vein, also known as the No. 2 vein.

Other Properties

In addition to the Central Canada gold mine and the two newly acquired projects in Central Newfoundland, Falcon currently has five additional projects across Canada, plus one project in Argentina.

In Ontario’s Red Lake mining camp, the company has acquired a strategic land package at the Springpole West project. This property is directly tied onto First Mining Gold Corp.’s Springpole gold deposit, reported as one of the largest undeveloped gold projects in Canada, and Falcon’s property contains the same geological terrain as that world-class gold deposit.

Near Sudbury, Ontario, Falcon also has a 49% interest in the Burton gold property, located 38 km northwest of IAMGOLD’s Cote Lake deposit, which has an indicated resource of 35 million tonnes averaging 0.82 g/t for 930,000 oz of contained gold, plus an inferred resource of 204 million tonnes averaging 0.91 g/t for 5.94 million ounces of contained gold.

Falcon’s first land position in central Newfoundland was established in July 2021 with its acquisition of the Hope Brook gold property. This property is hosted within the Exploits Subzone of the central Newfoundland gold belt, contiguous to First Mining Gold, the Sokoman Minerals-Benton joint venture and Marvel Discovery Corp.

In British Columbia, the company has further work planned for the Spitfire-Sunny Boy project and the Gaspard gold claims, the latter was acquired earlier this year.

Falcon’s acquisition of the Esperanza gold-silver-copper property in La Rioja province, Argentina, was announced around the same time as the Gaspard project. Consisting of 10 mineral concessions covering 11,768 hectares, the Esperanza property is located within the Sierra de Las Minas district, which hosts a number of past-producing gold and silver mines.

Conclusion

Falcon Gold has all the elements we like to see in an exploration-stage gold junior. The company is a large landowner in a past-producing mining district, with a mid-tier gold producer, Agnico-Eagle Mines, exploring just off its northern boundary.

We also like the recent acquisitions, especially the recently staked claims in central Newfoundland. The properties are all strategically located near areas with potential to grow into a world-class gold resource, and thus could well be a game-changer.

With projects also in BC and Argentina, Falcon has a diversified portfolio of projects with a rich mining history and potentially even richer endowment of mineral resources that can be rapidly generated.

Falcon Gold Corp.
TSXV:FG, OTC:FGLDF, FSE:3FA.G
Cdn$0.105, 2021.09.16
Shares Outstanding 100.2m
Market cap Cdn$10.5m
FG website

Richard (Rick) Mills
aheadoftheherd.com
subscribe to my free newsletter

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Any AOTH/Richard Mills document is not, and should not be, construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.

AOTH/Richard Mills has based this document on information obtained from sources he believes to be reliable, but which has not been independently verified.

AOTH/Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness.

Expressions of opinion are those of AOTH/Richard Mills only and are subject to change without notice.

AOTH/Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission.

Furthermore, AOTH/Richard Mills assumes no liability for any direct or indirect loss or damage for lost profit, which you may incur as a result of the use and existence of the information provided within this AOTH/Richard Mills Report.

You agree that by reading AOTH/Richard Mills articles, you are acting at your OWN RISK. In no event should AOTH/Richard Mills liable for any direct or indirect trading losses caused by any information contained in AOTH/Richard Mills articles. Information in AOTH/Richard Mills articles is not an offer to sell or a solicitation of an offer to buy any security. AOTH/Richard Mills is not suggesting the transacting of any financial instruments.

Our publications are not a recommendation to buy or sell a security – no information posted on this site is to be considered investment advice or a recommendation to do anything involving finance or money aside from performing your own due diligence and consulting with your personal registered broker/financial advisor.

AOTH/Richard Mills recommends that before investing in any securities, you consult with a professional financial planner or advisor, and that you should conduct a complete and independent investigation before investing in any security after prudent consideration of all pertinent risks.  Ahead of the Herd is not a registered broker, dealer, analyst, or advisor. We hold no investment licenses and may not sell, offer to sell, or offer to buy any security.

Richard does not own shares of Falcon Gold (TSXV:FG). FG is a paid advertiser on Richards site aheadoftheherd.com

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Marvel expands land position in Central Newfoundland, next to 4Moz Valentine gold project

2021.09.18
Marvel Discovery Corp (TSXV:MARV, Frankfurt:O4T1, OTCQB:MARVF) is a junior gold explorer active in the Central Newfoundland Gold Area Play.
The…

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2021.09.18

Marvel Discovery Corp (TSXV:MARV, Frankfurt:O4T1, OTCQB:MARVF) is a junior gold explorer active in the Central Newfoundland Gold Area Play.

The Vancouver-based company has assembled a sizeable land position, over 60,000 hectares, right in the thick of the Exploits Subzone of Central Newfoundland — potentially one of the world’s last easily accessible, district-scale gold camps. 

See below for Marvel’s map of the area including the major faults shown as heavy black lines.

This summer, Marvel has been busy snapping up claims and adding to its land package.

Exploits Subzone

The Exploits Subzone of Central Newfoundland

Running from Dog Bay southwest for 200 km to Bay d’Espoir, Newfoundland’s Exploits Subzone has been neglected since the last major exploration campaigns in the 1980s. However, the last 40 years have seen incremental advancements in the understanding of gold mineralization in the camp.

The sum of this knowledge is now coming together in effective exploration models that have delivered new discoveries.

What makes the Exploits Subzone such a prime target for gold discovery? Prominent regional thrust faulting shows evidence of a long tectonic history including fluid migration.

During a period known as the Taconic orogeny that lasted from 480-430 million years ago, the continental plates of Laurentia and Gondwana collided, closing the Iapetus Ocean between them. The islands we now know as Newfoundland, Ireland and Great Britain, were crushed between the continental plates, and deep crustal breaks were created that remained as active fluid conduits for millions of years. These five major tectonic breaks are important mineralizing structures for numerous multi-million-ounce gold deposits, including Marathon Gold’s (TSX:MOZ) Valentine Lake deposit, which lies just southwest of New Found Gold’s (TSXV:NFG) Queensway discovery.

Consider that the majority of Newfoundland’s gold occurrences and exploration lie within the Exploits Subzone and are in the vicinity of the Gander River Ultramafic Belt, better known as the GRUB Line.

Fact is, to stand out from among the 30-odd gold juniors that are presently combing the island, your property had better overlie one of the deep-seated structures Newfoundland is famous for, and have a secondary structure that provides a trap for the gold mineralization. 

Victoria Lake project

The Victoria Lake project is among the most prospective of Marvel Discovery Corp’s seven Newfoundland properties.

Located within the Exploits Subzone, the property is bolted onto Marathon Gold’s 4-million-ounce Valentine gold project, which is Atlantic Canada’s largest undeveloped gold resource.

Victoria Lake and Valentine exhibit a similar style of gold-bearing veins and have structural and geological settings in common. Preliminary work on Victoria Lake identified several quartz-arsenopyrite veins returning grab samples ranging from 15.5 to 24.9 g/t gold and 18.6 to 139.3 g/t silver.

In 1995, grab samples from Vein #3 featured 162.7 g/t gold and 220 g/t silver.

Regional geological and structural location of the Victoria Lake gold project.

This week Marvel announced it has acquired an additional 53 mining claims at Victoria Lake comprising 1,325 ha, increasing its land position to 7,650 ha. The company says the acquisition is located along the Exploits Subzone and covers a large, highly prospective structural zone proximal to the Valentine Lake Shear Zone hosting Marathon Gold’s (TSXV:MOZ) Valentine Gold Project with resources of 4M oz. of gold…

Victoria Lake Gold Project is host to interpreted extensions of the Valentine Lake Shear Zone and two major thrust faults, a wide structural corridor interpreted to play an integral part in the Marathon Gold Deposit.

The project is contiguous to Marathon’s Valentine gold project which has a 4Moz resource.

In fact the claims, acquired via an option agreement with a vendor, contain the highest regional gold-in-till sample — 785 parts per billion (ppb) Au. This high-grade surface gold area was never followed up with additional exploration, making it a juicy target for Marvel Discovery Corp.

“These claim additions were a strategic move, not only in expanding the size and potential, but tying up ground with the highest gold till-in-soil samples in the province of Newfoundland,” Marvel CEO Karim Rayani commented in the Sept. 14 news release. “This shows we are in the right place for a potential discovery adjacent to what will likely become Newfoundland’s next and largest gold mine.”

In a recent video interview, Rayani noted that the vendor, Roland Quinlan, is the same owner who sold part of the Queensway project to New Found Gold, the first mover in the Central Newfoundland Gold Area Play. 

“He’s one of the bigger names in the game,” Rayani told Proactive Investors’ Steve Darling, adding that Quinlan is heading up prospecting on Marvel’s Slip property claims and will also be in the field at the Victoria Lake project.

“If we do this right we could be sitting on a very large system. We’re just looking forward to getting crews on the ground as soon as possible,” Rayani said in the video interview. 

Under the option agreement, Marvel will make a series of cash payments over the next three years, and issue the vendor up to 500,000 shares and 300,000 warrants. Marvel also agreed to spend at least $60,000 exploring the property before the three years is up. The vendor retains a 2% NSR, of which Marvel has the right of first refusal to purchase 1% for $1.5 million.

Recent successes

The Central Newfoundland Gold Area Play continues to deliver great results to the market during a busy summer of drilling.

Earlier this year Marathon Gold updated the resource at its Valentine gold project, in a technical report outlining 3.14 million ounces in measured and indicated, and 1.65Moz inferred. (proven and probable reserves of 2.05Moz)

The feasibility study envisions an open-pit mine with average annual gold production of 173,000 ounces, over a 13-year mine life.

Marathon Gold trades on the Toronto main board at $3.23 per share with a market capitalization of $785.1 million. The latest fire assay results from ongoing in-fill drilling at the 1.5-km-long Berry deposit include 22.97 g/t Au over 6m, 25.38 g/t Au over 4m, 2.50 g/t Au over 27m, 1.73 g/t Au over 39m and 3.04 g/t Au over 22m.

Labrador Gold (TSXV:LAB) is another company piquing interest in Newfoundland gold exploration. Earlier this year the Toronto-based company released an impressive half-meter (0.5m) intercept of 276.56 g/t gold at its Kingsway project located near Gander, NL. The company followed that up with a 128.51 g/t over 1.12m hit at the Big Vein zone, part of a collection of assays delivered from the current 50,000m drill program. LAB currently trades at $0.78 per share and has a market value of $118.1 million.

Exploits Discovery Corp (TSXV:NFLD) reported 194 g/t visible gold at its Little Joanna prospect, along with 613 g/t Au and 189 g/t Ag at the Quinlan Veins target of its Dog Bay gold project. A large vein system with historical grab samples (700 g/t Au) containing visible gold is being drill-tested at Jonathan’s Pond, with prospecting, soil and rock sampling taking place at NFLD’s Mount Peyton, Dog Bay and True Grit projects. Results from the initial round of drilling are expected in early October. Exploits Discovery closed on Friday at 64 cents share @ a market cap of $53.4M.

Trading at just 13 cents, MARV has impressive accretive value compared to its peers.

Conclusion

The Exploits Subzone of Central Newfoundland is on its way to becoming the world’s next large gold district.

Companies are busily drilling the area and the first movers, including New Found Gold, Marathon Gold and Labrador Gold, are banking high-grade intercepts worthy of investor interest.

The area’s faults and subfaults have shown a long history of fluid migration. Central Newfoundland’s five major tectonic breaks can be traced back some 400 million years.

These deep crustal breaks are important mineralizing structures for hosting multi-million-ounce gold deposits. The potential is evident in Marathon’s Valentine deposit and at New Found Gold’s Keats, Lotto and Golden Joint zones.

Today, Central Newfoundland is home to a number of up-and-coming gold explorers looking to become the next Marathon or NFG, and competition for land is growing fierce.

Having established itself as a major landowner with seven projects in this highly prolific region, Marvel represents an intriguing opportunity for investors looking for the next gold play in Central Newfoundland.

Marvel Discovery Corp.
TSXV:MARV, Frankfurt:O4T1, OTCQB:MARVF
Cdn$0.13, 2021.09.17
Shares Outstanding 73.8m
Market cap Cdn$10.2m
MARV website 

 Richard (Rick) Mills
aheadoftheherd.com
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