O3 Mining (TSXV: OIII; US-OTC: OIIIF) has posted a first resource for the Bulldog deposit and the nearby Kappa discovery at its Alpha property in Quebec.
In total, the Bulldog and Kappa deposits have an inferred resource of nearly 3.1 million tonnes grading 3.2 grams gold per tonne for 318,000 oz. of contained gold.
The resource was based on roughly 50,000 metres of drilling in 116 holes, about 76% of which were completed by O3 Mining between September 2019 and April 2022.
O3 has also released gold intercepts outside the resource that point to expansion potential.
Along the downdip extension of the Bulldog deposit, one hole returned 5.3 grams gold per tonne over 3.8 metres, 125 metres below the current resource, while another returned 4.4 grams gold over 2.2 metres from 235 metres.
Drilling also intercepted the Kappa zone while stepping back to expand the Bulldog orebody, and the deeper Kappa discovery remains open at depth and to the east.
"The 2022 drilling campaign on Alpha was focused on expanding the known deposits at Kappa and Bulldog, and this (resource estimate) shows there is more room to grow," Jose Vizquerra, O3 Mining's president and CEO, commented in a release. "The continuity of mineralization and the proximity of the Kappa and Bulldog zones creates the potential for a sizeable project with a robust grade, thickness and continuity"
O3 Mining is currently proceeding with environmental and metallurgical test work on both deposits. The environmental tests will characterize Bulldog and Kappa ore and waste for acid rock drainage and metal leaching upon exposure to ambient conditions, and thus, the risk associated with the waste material and subsequent mine waste management practices. The metallurgical tests will be performed on one composite per deposit to calibrate grinding size and determine gold recovery.
The Alpha property is located 8 km east of Val-d'Or, Que., south of Eldorado Gold's (TSX: ELD; NYSE: EGO) Lamaque project and also surrounding Agnico Eagle Mines' (TSX: AEM; NYSE: AEM) Akasaba West property. The property covers more than 77.5 sq. km and includes 20 km of the Cadillac-Larder Lake Break.
The Alpha property hosts historic resources of 500,000 oz. in the measured and indicated category (7.7 million tonnes at 2 grams gold per tonne) and 400,000 oz. in the inferred category (4 million tonnes at 3.1 grams gold).
Shares of O3 Mining jumped by 10.2% by noon ET following the new resource and exploration update. The company has a market capitalization of $98 million.