Orefinders Resources (TSXV:ORX), a small-cap gold junior focused on the Kirkland Lake and Red Lake gold district of Ontario, achieved a significant milestone this week in identifying an inferred resource at its recently acquired Mirado gold project.
The Kelowna-based company picked up Mirado, which consists of 12 patented claims at Kirkland Lake, from Jubilee Gold Exploration in early September, and has been making steady exploratory progress ever since.
Results from 36 holes of a 40-hole drill program in September showed 19.2 meters of uncut mineralization graded 4.77 grams per tonne, including 5.9 meters at 27.7 g/t. 31.5 meters (uncut) at 10.9 g/t was also found, including 6 meters at 52.2 g/t.
The remaining four holes, three of which are close to historical workings, returned grades between 1.15 g/t and 70 g/t, including one intercept of 19.3 meters including 4.8 meters at 2.91 g/t, and 28.5 meters including 4 meters at 2.23 g/t, according to the company.
The results of the two-phase drill program provided enough data for Orefinders to published an NI 43-101-compliant resource estimate on Monday.
The inferred resource of 10,618,000 tonnes, with an average grade of 1.29 grams per tonne, is spread throughout the open pit, underground and three stockpiles, with contained gold totalling 442,000 ounces.
Bill Yeomans, Orefinders president, updated shareholders on the progress on Mirado to date and notes that there is more exploration work to be done: “The deposit is by no means drilled off.”
“In 2013 Orefinders has outlined the largest mineral resource reported to date in the 100 year history of exploration at Mirado. Our modest first year 12,060 meter drill program was completed in seven months with forty diamond drill holes. We successfully outlined 442,000 ounces at a discovery cost of less than CDN $5 dollars per ounce. During this time, Orefinders tripled its land position at the Mirado project to over 3,440 acres.
The deposit remains open to further expansion to the northwest and southeast of the current open pit resource with several kilometers of untested drill targets now secured along strike. The deposit is by no means drilled off. Only seven drill holes tested the North Zone, where a deep seated feeder to the gold mineralization will require further drilling to test potential for expansion of the current underground mineral resource. Metallurgical testwork is currently underway on our current resource of 20,742 tonnes of stockpiled material averaging 4.41 gpt gold. A significant amount of pre-stripping of overburden took place over the starter pit, where the historical 1987 open pit bulk sampling, underground development and stockpiling programs occurred. Several kilometers of currently flooded underground workings were refurbished in 1987 by Dynatec. We feel that the historical starter pit pre-stripping, refurbished underground workings along with the stockpiles add significant value to our current resource.”
Orefinders was up 15.3 percent in mid-session trading on Tuesday, to 15 cents a share.
Securities Disclosure: I, Andrew Topf, hold no investment interest in any of the companies mentioned.
Editorial Disclosure: Orefinder Resources is an advertising client of the Investing News Network. This article is not paid-for content.