Cartier Resources Inc. (ECR-V) Cartier drilling expanding the Chimo Mine Project
Cartier Resources Inc. (ECR-V)
Cartier drilling adds new 3E1 Gold Zone to East Chimo Mine sector -expanding the Nordeau West deposit proximal to the Chimo Mine Project
On November 15, 2022, Cartier reported work progress on the Chimo Mine Project through, among other things, drill results of its ongoing drilling program on the Chimo Mine property and contiguous West Nordeau deposit of the East Cadillac property. Both properties, 100% owned by Cartier, are located 45 km east of the Val-d’Or mining camp.
The Chimo Mine Project now consists of 29 gold zones that are located within 19 gold structures, drilled over a strike length of ~3.7 km and locally up to a depth of 1,600m where the recent mineral resource estimate by InnovExplo, dated August 22, 2022, reported:
7.12 Mt @ 3.14 g/t Au for a total of 720,000 oz Au in the Indicated category and;
18.47 Mt @ 2.75 g/t Au for a total of 1,633,000 oz Au in the Inferred category; for a total mineral resource endowment of 2.53M oz Au.
(https://www.linkedin.com/pulse/cartier-resources-inc-ecr-v-preparing-ni-43-101-nordeau-eric-lemieux/).
Initial results from the eastern Chimo Mine Sector: Incoming results from the current drilling program commenced in mid-August 2022 have for the East Chimo Mine Sector, one of the holes intersecting 1m @ 9.1 g/t Au (included in 4.5 g/t Au over 2.5 m also included in 2.0 g/t Au over 6.0 m). Drill results are located on the 3 Gold Structure which has also been intersected by other drill holes of the program as well as by historical drilling, thereby defining, by geometric distribution and number, the 3E1 Gold Zone. The 3E1 Zone is now the fourth gold zone comprising the East Chimo Mine Sector.
Mineralization at the Chimo Mine deposit consists of 5 main mineralized structures (zones 1 to 3 and 5 to 6).
Zone 1 generally follows the northernmost iron formation and mineralization consists mainly of a juxtaposition of pluri-centimetric veinlets of coarse arsenopyrite. Semi-massive layers of pyrrhotite with minor pyrite are sometimes present, but these sulphides are almost always barren if not accompanied by arsenopyrite. Arsenopyrite veins are sometimes deformed into small tight folds and occasionally intersect the bedding at a low angle.
Zone 2 roughly follows the contact between the southernmost iron formation layer and a mafic intrusion. Sulphide minerals are found in a brownish-coloured area rich in biotite. Pyrrhotite and coarse arsenopyrite define thick ribbons parallel to schistosity. The margins of mineralized areas consist of finely ribboned pyrrhotite or disseminated arsenopyrite. Bluish quartz forms irregular lenses and veins and contains visible gold but few sulphides.
Zone 3 is located along the southern contact of the schistose and carbonatized mafic intrusion. Mineralization consists, on average, ~5% disseminated sulphides (fine arsenopyrite with lesser pyrrhotite and small amounts of pyrite and chalcopyrite) and multiple veins of bluish quartz with good continuity. The veins show ribboning that may include layers of wallrock containing disseminated sulphides. Quartz veins contain visible gold, especially near their borders, but few sulphides.
Zone 5 lies within a schistose and carbonatized greyish lava and includes thin units of graphitic schist. The sheared zone may have followed a thin layer of tuff, but deformation and alteration extended into the surrounding volcanic rocks. In the upper parts of level 5, the main type of mineralization is a large concordant lens of black quartz intersected by numerous graphitic veins. Sulphide content is low, but visible gold is present. At each end, the lens may terminate abruptly against graphitic schist. Elsewhere, the lens splits into parallel quartz veins that locally intersect with each other or intersect schistosity. These multiple digitations give the impression that the wide lens formed gradually by accretion in a dilating zone. The rock encasing the lens of graphitic quartz contains many quartz veins and veinlets that contain only small amounts of arsenopyrite, although greater concentrations are found along the selvages. These veins of quartz and arsenopyrite do not contain graphite and they yield good gold grades but are narrow and lenticular. In the lower parts of level 5, the graphitic quartz lens disappears and gives way to graphite-free quartz veins with disseminated arsenopyrite rims.
Zone 6 is similar in many ways to Zone 5. It consists of several subparallel en-echelon gold-bearing lenses. These lenses are composed of sheared and carbonatized rock of volcanic and pyroclastic origin, injected with multiple lenticular quartz veins. Disseminated arsenopyrite, pyrrhotite and pyrite occur within the veins and along the vein walls. Free gold is found in quartz veins and as scattered fine grains in the selvages or as inclusions in arsenopyrite. Layers of graphitic schist occur in the eastern part of the zone.
Initial results from the West Nordeau Sector: In the West Nordeau Deposit sector the, 5NE1 Gold Zone returned values of 1m @ 9.6 g/t Au (included in 3.3 g/t Au over 4.6 m). The intersections in the 5NE1 Gold Zone of the West Nordeau deposit are located at a depth of ~800 m and could add to the resources of the West Nordeau deposit.
Gold mineralization on the West Nordeau area occurs in 4 distinct lenses, known from north to south as i) North Zone, ii) Zone 1, iii) Zone 2 and iv) Zone 3, in shear zones that transect the mafic volcanic rocks of the Trivio Group. Wall rocks are massive to pillowed or brecciated basalts and andesites with sporadic tuffaceous horizons and minor graphitic schist. Common alteration types in the sheared rocks include silicification, amphibolitization, carbonatization and biotitization. Gold is found in brecciated zones cemented with grey/smoky quartz lodes, veins or veinlets with brown tourmaline, carbonates and sulphides in an “en échelon” pattern within the wider deformation corridors. Arsenopyrite is the major sulphide component (3-15%) with some amounts of pyrite, pyrrhotite and traces of chalcopyrite. Gold is locally found as free grains intergrown with arsenopyrite. All reported structures generally embedded into the regional E-W schistosity, which dips 55°-70°. Zones 1 and 2 (for which historical reserves have been previously estimated) transect the claims in the West Nordeau area for 600m along strike and have been intersected to 725m depth. The other mineralized zone, Zone 3 and North Zone are said to be less well understood as they are poorly defined and have irregular continuity and inconsistent gold mineralization. Zone 3, located south of Zone 1 and Zone 2, and 30m south of a graphitic marker horizon, has been defined along two traces of about 100 m each. Sporadic intersections show that the North Zone occupies a position some 30 m north of structures Zone 1 and Zone 2.
The drilling program planned to date, aims to increase the current resources of the project by >650,000 oz Au permitting the Chimo Mine Project to surpass the 3M oz Au threshold in a well-located area of the Abitibi. Additionally, an upcoming drill program in preparation shall aim to explore the gold deposits present along the Larder Lake – Cadillac fault, on the eastern and western periphery of the Chimo Mine property.
Operational optionality: Cartier also reported that the ongoing PEA (Preliminary Economic Assessment) on the combined resources of the Chimo Mine property and the West Nordeau deposit is progressing well. This NI 43-101 study, which is oriented to maximize the flexibility of the economic aspect of the project, shall notably incorporate the results of industrial sorting tests from Corem and Steinert US which have shown a potential to increase the grade of the mineralization of the Chimo Mine project by 170% (see: https://www.linkedin.com/pulse/cartier-resources-inc-ecr-v-industrial-sorting-tests-increase-eric/).
Philippe Cloutier, President and CEO stated: « With average grades of 3.0 g/t Au, the sorting of the Chimo Mine mineralization carried out underground could, if optimized, produce a primary concentrate at an average grade of approximately 5.0 g/t Au; Which would minimize the costs of extraction, construction and operation of the mill while minimizing the environmental footprint; demonstrating our concern for the social acceptability of the project ». We concur. With the acquisition of 100% interest in the contiguous East Cadillac Property from O3 Mining Inc. (OIII-V), initially reported on February 28, 2022 (see: https://www.linkedin.com/pulse/cartier-resources-inc-ecr-v-signs-non-binding-loi-o3-mining-lemieux/), Cartier is in position grow the gold endowment.
Important Disclosures
Cartier Resources Inc. ECR-V
D The Mining Analyst, in his own account or in a family related account, owns securities in excess of 50,000 shares of the issued and outstanding equity securities of this issuer.
V The Mining Analyst has visited material operations of this issuer, namely the MacCormack, Chimo Mine, Cadillac Extension and Wilson projects.
R This issuer has indirectly paid the Mining Analyst.
UPDATE: January 24, 2023
Drilling of the Chimo Mine Project confirms depth extension of West Nordeau Deposit
On January 24, 2023, Cartier reported some work progress on the Chimo Mine Project by reporting drill results on its ongoing drilling program at the Chimo Mine property and contiguous West Nordeau deposit of the East Cadillac property. Both properties, 100% owned by Cartier, are located 45 km east of the Val-d’Or mining camp. Recall the Chimo Mine Project consists of 29 gold zones that are located within 19 gold structures, drilled over a strike length of 3.7 km and locally up to a depth of 1.6 km. The current resource estimate stands at a total of ~2.3M oz. Au with Indicated resources: 7.128 Mt @ 3.14 g/t Au for a total of 720,000 oz Au and Inferred resources: 18.475 Mt @ 2.75 g/t Au for a total of 1,633,000 oz Au (InnovExplo, August 22, 2022).
Aiming to increase the current resources to surpass the 3M oz Au threshold in a well-located area of the Abitibi: Saliently, drill results below the West Nordeau deposit of the Chimo Mine Gold System indicate that in the eastern part of the West Nordeau deposit (5NE2 Gold Zone), intersected up to 4.4 g/t Au over 6.5 m included within broader sections grading 2.3 g/t Au over 23 m and 2.1 g/t Au over 14m. Recall on November 15, 2022, Cartier had reported initial drill results from the eastern Chimo Mine Sector from the current drilling program that commenced in mid-August 2022. In the western part of the West Nordeau deposit (5NE1 Gold Zone), drilling intersected up to 6.3 g/t Au over 1 m included within an interval grading 2.4 g/t Au over 5.6 m. We estimate overall that the 5N structure returns currently, from 4 diamond drill holes and wedges, an average grade x true thickness metric of 14.89 g/t Au x m.
Philippe Cloutier, President and CEO stated: «These results confirm the continuity of the mineralization below the West Nordeau deposit, with a view of extending exploration, to define additional resources to the same depth as in the Chimo Mine and East Chimo Mine sectors. The depth extension of the West Nordeau sector is important to add resources to the project».
We highlight that Cartier with the acquisition of a 100% interest in the contiguous East Cadillac Property from O3 Mining Inc. (OIII-V), initially reported on February 28, 2022 (see: https://www.linkedin.com/pulse/cartier-resources-inc-ecr-v-signs-non-binding-loi-o3-mining-lemieux/), is in good position to grow the gold endowment of the area. Cartier is also completing a maiden PEA (Preliminary Economic Assessment) on the combined resources of the Chimo Mine property and the West Nordeau deposit. This NI 43-101 study, shall be oriented to maximize the flexibility of the economic aspect of the project, notably incorporate the results of industrial sorting tests (see: https://www.linkedin.com/pulse/cartier-resources-inc-ecr-v-industrial-sorting-tests-increase-eric/).
See also: https://www.linkedin.com/pulse/cartier-resources-inc-ecr-v-preparing-ni-43-101-nordeau-eric-lemieux/
UPDATE: February 14, 2023
Drilling at the Chimo Mine Project expands dimensions of gold zones in East Chimo Mine sector
On February 14, 2023, Cartier announced drill results in the East Chimo Mine sector of the Chimo Mine Property, 100% owned by Cartier, which is very well located 45 km east of the Val-d'Or mining camp. The drill from results from DDH CH22-58B are located at the midpoint of 450 m between the Chimo Mine and West Nordeau deposit (Zone 5). These results for the current drilling program in the East Chimo Mine sector expand dimension of the gold zones as follows:
In the 5NE Gold Zone, drilling in intersected 5.2 g/t Au over 4 m including 16.5 g/t Au over 0.5 m. This intersection increases the length of Zone 5NE by ~320 m, which now has a total length of ~1,150 m.
In the 5BS Gold Zone, drilling intersected 3.9 g/t Au over 6.9 m including 9 g/t Au over 1 m. This intersection increases the length of Zone 5BS by ~110 m, which now has a total length of ~350 m.
We estimate a grade x thickness metric of 12.18 g/t Au per m (estimated true width) for these 2 intercepts. Overall, for 7 intercepts a grade x thickness metric of 13.25 g/t Au x true thickness.
Recall that the Chimo Mine Project now consists of 29 gold zones that are located within 19 gold structures, drilled over a strike length of ~3.7 km and locally up to a depth of ~1.6 km where the recent mineral resource estimate, dated August 22, 2022, reported:
7.128 Mt @ 3.14 g/t Au for a total of 720,000 oz Au in the Indicated category and;
18.475 Mt @ 2.75 g/t Au for a total of 1,633,000 oz Au in the Inferred category.
Philippe Cloutier, President and CEO of Cartier stated: “The results confirm the continuity of the mineralization of the gold zones of the East Chimo Mine Sector, which is in line with the goal of this drill program to increase the resources on the project”.
https://ressourcescartier.com/press-releases/drilling-expands-dimensions-of-gold-zones-of-east-chimo-mine-sector/
UPDATE: March 2, 2023
Cartier intersects up to 4 g/t Au over 6.8 m in the 5NE Zone on the Chimo Mine Property
On March 2, 2023, Cartier announced some drill results in the East Chimo Mine sector of the Chimo Mine Property, 100% owned, located ~45 km east of Val-d'Or. Drill results in the East Chimo Mine Sector are located at the midpoint of 450m level depth between the Chimo Mine and West Nordeau areas. In the 5NE Gold Zone of East Chimo, drilling intersected 4 g/t Au over 6.8 m (including 24.8 g/t Au over 0.5 m, all of which is included within a 13.5 m interval grading 2.6 g/t Au) (DDH CH22-62) at ~588 m depth. Drilling also intersected 2 g/t Au over 15.6 m (including 5.8 g/t Au over 1.5 m) in the 5B4 Gold Zone at ~664 m depth (DDH CH22-62). Further east, drilling intersected 17.4 g/t Au over 1 m in the 2 Gold Structure in the Nordeau West sector (DDH CH22-63).
Continuity of the mineralization: We estimate a grade x thickness metric of 16.5 g/t Au per m (estimated true width) for these 3 intercepts. Overall, we estimate the current 2022 drill program has a grade x thickness metric of 14.1 g/t Au x true thickness. The Chimo Mine Project has ~29 gold zones that are located within ~19 gold structures, drilled over a strike length of ~3.7 km that remain open at depth (beyond 1.6 km). Mineralization at the Chimo Mine Property consists of 5 main mineralized structures (zones 1 to 3 and 5 to 6) that plunge to the WNW with likely good continuity. The recent mineral resource estimate, dated August 22, 2022, reported:
7.128 Mt @ 3.14 g/t Au for a total of 720,000 oz Au in the Indicated category and;
18.475 Mt @ 2.75 g/t Au for a total of 1,633,000 oz Au in the Inferred category.
Philippe Cloutier, President and CEO stated: «These results add to the gold zones of the “East Chimo Mine” Sector and confirm the continuity of the mineralization which is in line with the objective of increasing the resources for the project».
UPDATE: April 13, 2023
Cartier delivers positive PEA with a post-tax NPV5% of $388M and 20.8% IRR on the Chimo Mine Property
On April 13, 2023, Cartier announced the results of an NI 43-101 PEA (Preliminary Economic Assessment) on the Chimo Mine Project located ~45 km east of the Val-d'Or mining camp in Abitibi, Québec. The maiden PEA details an underground mining operation with a CIL (carbon-in-leach) 3,000tpd mill. The Chimo Mine Project requires a total LOM CAPEX of $490M to $501M ($341M of initial capital and $160M of sustaining capital). On a post-tax basis, the Chimo Gold Project demonstrates a $388M NPV(5%) and a 20.8% IRR with a payback period of 2.9 years. Average cash costs over a 9.7-year mine life are estimated at US$647/oz and all-in sustaining cost at US$755/oz. The financial analysis performed using a 5% discount rate, a long-term gold price of US$1750/oz, and an exchange rate of CAD$1.00:US$0.77 appears to demonstrate a robust well-located project with stand-alone capacity and growth upside.
Mining optionality: The underground mining operation should use conventional longitudinal and transverse longhole stoping at a mining rate of 4,500 tpd. A total of 15.8 Mt of mineralized material at an average grade of 2.7 g/t Au is expected to be extracted from 4 mining sectors: i) Chimo Mine Main (44% of Au oz mined), ii) Chimo Mine Extension (below Chimo Mine) (11% of Au oz mined), iii) East Chimo Mine (31% Au oz mined) and iv) West Nordeau (14% Au oz mined). The different sectors of the mine are to be accessed via ramps and drifts permitting efficient circulation of mobile mining equipment and ventilation requirements. The historic three-compartment mineshaft of 914m depth shall be rehabilitated and ore from the upper portions of the mine are to be sent down to the base of the vertical conveyor using material passes while mined material from the lower portions of the mine are to be hauled using underground fleet trucks. Mineralized material is then be crushed using a jaw crusher and transported to the surface via the vertical conveyor (mine shaft) before being sorted using sensor-based sorting technology. The ore sorting via automated sensor-based sorting technology (based on RGB and XRT sensors) with expected concentration ratio of 1.85 and a recovery rate of 91.9% should be an executable modern novel process (see: https://www.linkedin.com/pulse/cartier-resources-inc-ecr-v-industrial-sorting-tests-increase-eric/).
Saliently, the crusher/sorter system is estimated to reject 45% of the hoisted material. The sorter plant is expected to process 2,400 tpd on average over the life of mine but has a processing capacity of 3,000 tpd and shall permit sorted waste to be mixed with cement and used as backfill for a return underground using a network of waste passes.
Solid processing: The sorted mineralized material would then be processed in a concentrator using an initial gravity separator. The upgraded material is stored in a dome where it becomes feed to the processing plant. The process plant is a standard carbon-in-leach (CIL) technology with a recovery rate estimated at 93.1%. Total gold production is estimated at 1,157,710 oz Au for the 3,000tpd mill. The plant includes crushing, grinding, gravity concentration, classification, leach and CIL, and detoxification before deposition into a tailings storage facility. The current plan of operations assumes an average sorted grade of 4.55 g/t Au for mill feed and an annual production of 116,900 oz Au for a mine life of 9.7 years. Notably, the flow sheet is based on historical metallurgical work.
Measured infrastructure and tailings: The mine and mill operations should be owner-operated with 280 employees. A mining fleet is planned to be purchased via a lease financing agreement and ancillary underground infrastructure includes a crushing station and main pumping station as well as 2 ventilation and heating systems. Site infrastructure includes earthworks, power utilities, water and the buildings/structures supporting mine operations. A confinement area will be constructed to accommodate thickened tailings. Overall, a reduced environmental footprint of mine operations is highlighted and should help the social acceptability of the project.
Cartier continues to be active with deposit delineation and expansion: Recall on March 2, 2023 https://www.linkedin.com/posts/eric-lemieux-9468715_quebec-abitibi-chimo-activity-7037114381842731008-OO4F?utm_source=share&utm_medium=member_desktop), February 14, 2023 (https://www.linkedin.com/posts/eric-lemieux-9468715_quebec-abitibi-chimo-activity-7031438599686389760-QEm0?utm_source=share&utm_medium=member_desktop), as well as January 24, 2023 and November 15, 2022, that Cartier disclosed drill results from the 25,000m planned drill program that commenced in mid-August 2022. The Chimo Mine Project is endowed with ~19 gold structures, drilled over a strike length of ~3.7km, that remain open laterally and at depth (beyond 1.6 km). Also, Cartier holds 100% interest in the surrounding ~30,000ha East Cadillac Property (see: https://www.linkedin.com/pulse/cartier-resources-inc-ecr-v-signs-non-binding-loi-o3-mining-lemieux/) permitting district scale operations, with central mill configuration and greenfield exploration.
Philippe Cloutier, President and CEO stated: "The results of the study demonstrate the economic viability of the project as well as several optimization opportunities related to the characteristics of the project. Two drills are in operation on the property and the results continue to increase the size of the gold zones with a view to continuing to increase the project's resources. Strategic solutions are being studied to further push the development of the project".
ADVISORY Corporate Financial Strategist, Transactional Support, Capital Market, Value Creation
1yBravo Phil