MIRADO GOLD PROJECT
Metalla signed a binding agreement with Orefinders Resources Inc. (ORX:CVE) on August 29th, 2016 to acquire a 2% (NSR) net smelter royalty on the Mirado Gold Project for proceeds up to $1,000,000 CAD. Metalla also has the right to acquire an additional 1% (NSR) net smelter royalty on the Mirado Gold Project uncapped for the life of the mine for an additional payment of $2,000,000 CAD within 90 days after the company declares commercial production.
Type of Interest: Net Smelter Royalty (NSR)
Status: Preliminary Economic Assesment (PEA)
- With immediate cash flow from toll-milling stockpiled ore
Location: Kirkland Lake, Ontario Canada
Orefinders Resources Inc. is a well-financed Canadian-based junior gold exploration company focused on Canada’s top gold-producing districts of Ontario; Kirkland Lake and Red Lake. Their flagship gold project; the Mirado Gold Project, is owned 100% by Orefinders Resources Inc. and rests on patent mining claims containing surface and mining rights. The Mirado Gold Project is well located near Kirkland Lake ON, with year round road access and a local skilled labour force.
Orefinders immediate ‘Phase One’ project is a resource that was blasted and mined from the Mirado’ open pit mine during its production during in the 1980’s. Orefinders’ has since completed a resource calculation on the Stockpiles which delineated an inferred resource of 20,742 tonnes at an average grade of 4.41 grams per tonne for a total of 2,939 contained gold ounces. As per the toll milling agreement, Orefinders announced on July 14, 2016 news release, Orefinders will deliver a minimum 25,000 tonnes of resource from the Mirado to the Westwood Gold Mine for processing and extraction of gold.
As part of ‘Phase 2’, in June 2013 Orefinders commissioned SRK Consulting (Canada) Inc. (“SRK”) to complete a mineral resource estimate for the Mirado project which includes existing historical stockpiles. The mineral resource estimate based on the 2013 drilling program has now been finalized.
An inferred mineral resource of 10,618,000 tonnes with an average grade of 1.29 grams per tonne gold (gpt Au) in open pit, underground and three separate stockpiles located on Orefinders’ 100% owned Mirado property has now been defined.
The Mineral Resource Statement for the open pit, underground, and three stockpiles is presented in Table 1.
Table 1: Mineral Resource Statement*, Mirado Gold Project, Ontario, SRK Consulting (Canada) Inc., November 18, 2013
|Quantity||Grade||Contained Metal||Cut-off Grade|
|Classification/ Zone Inferred||(000 tonnes)||Gold (gpt)||Gold (000ounces)||(gpt Gold)|
|Northern Pile **||12||4.71||1.8||2.00|
|Central Pile **||4||5.38||0.7||2.00|
|Southern Pile **||5||2.74||0.4||2.00|
Surrounding the core patent claims, Orefinders has optioned and/or staked 37 additional contiguous claims covering approximately 10 km of prospective strike length. Work commitments for the underlying agreement on the MZ option have now been completed. With only two low cash payments remaining Orefinders will soon earn 100% interest (MZ option subject to a 2% NSR with a capped buyout). The 5,800-acre property land package has never been systematically evaluated as a single land package by advanced exploration techniques.
The Mirado gold project is situated within the Abitibi Gold District which has historically produced more than 200 million ounces of gold over the past century, with more than 100 million ounces of gold in current reserves. The prolific Kirkland Lake mining camp is located in eastern Ontario close to the Quebec border and has historically produced 50 million ounces of gold. Much of the historical Kirkland Lake gold production has taken place along or near a major regional geological fault structure is known as the Larder Lake-Cadillac Fault (LLCF).