North Bay Resources (OTC:NBRI) has released a resource estimate (non-NI 43-101) for the Bullion Alley Zone at the company’s Fran Gold Project.
The preliminary estimate was completed using Leapfrog Geo + Edge 3D modelling software and diamond drilling data from 2001, 2005, 2006, 2012, and 2018 totalling 18,000m (55,000 feet) in 104 holes utilising block model, with no cut-off.
Recent data compilation has resulted in identification of significant drill intercepts.
The company continues to compile data in preparation for a NI 43-101-compliant MRE. In particular, the addition of surface trenching data and sampling data for areas that have not been drill tested between the Main and East Zones, as well as to the East and North east where a significant gold in soil anomaly exists and may add to the data set.
The deposit remains open in these directions as well as to the South where a parallel vein system exists and most significantly, throughout the main zone, at depth.
Speaking to Mining.com.au, CEO Jared Lazerson says recent data re-compilation of over 18,000m of drilling at Fran Gold and the new discovery of a bulk tonnage deposit is now being seen in the initial 3D modelling and internal resource estimate with work continuing.
“The initial estimate has shown 43 million tonnes grading 0.33 grams per tonne totalling 474,000 ounces of gold of total resource, 20 million tonnes of 0.5g/t totalling 323,000 ounces and a higher grade core in the 1g/t range making this a substantial discovery,” Lazerson says.
The CEO adds that the modelling looks promising in terms of the potential for a major discovery and reinforces the company’s unique position in the market.
“The big thing is we have small production going on. That’s nice and interesting. It just makes us a lot more viable as a company. But the big thing, actually, particularly in Canada, is that this modelling is very, very interesting,” he continues.
“Being in production is unique. Having a major discovery would be unique in that sense – nobody has a major discovery combined with a small producing operation. Nobody has that.”
North Bay’s recent ongoing focus has been the development of mid-high grade surface material as feedstock for its Bishop Gold Mill. This in turn has led to a re-evaluation of the project potential resulting in what is currently a dual focus with high-grade surface material going to the mill and further evaluation of the larger potential of the mass tonnage gold deposit.
Lazerson adds that while the majority of the drilling at Fran was done by 2012, North Bay has added another 20 holes since but there is more work still to be done.
Data indicates substantial expansion potential at depth beyond 300m (984 feet) and extensions of the disseminated gold zones to the east and north-east where copper grades begin to rise. Drilling was stopped in these directions due to the loss of the mid-high grade veins that were the focus of historical exploration and these areas remain largely unexplored.
In addition to the bulk gold deposit, the company continues to develop the project as mid-high grade feedstock for its 100 ton per day Bishop, California gold mill utilising existing stockpiles and development of the surface oxide zone where trenching has shown consistent grade of 16 grams (0.5 ounces per ton) over 30m (110 feet) in trenches B+C.
As the CEO explains this news service, there is potential for a lot further upside given 2006 data shows work on the project by the original geologist was assessing mid- to high-grade veins and a bulk tonnage possibility but the disseminated gold was somehow overlooked.
“You need to be looking for both. They just forgot about the disseminated gold – they just stopped looking at it. And the property was never particularly well-valued, and nobody was that interested in it because it would just look like narrow vein gold, which is all that was in these reports,” Lazerson continues.
The Fran Gold Project property is 34,360 acres. The company previously announced in addition to the known ‘high-grade’ parallel veins grading up to 2.6 ounces per ton, analyses and compilation of prior exploration work resulted in the discovery of a bulk tonnage gold deposit.
The project is next to Centerra Gold’s (TSX:CG) Mt Milligan Project, with reserves of 264Mt grading 0.3 grams per tonne gold and 0.2% copper and proximate to Artemis Gold’s (TSX:ARTG) Blackwater Mine, with proven and probable reserves of 334Mt grading 0.8 grams per tonne gold. Both Mt Milligan and the Blackwater Mine are two of the largest new mines in North America in the modern era. The Blackwater Mine has a measured and indicated resource in excess of 10 million ounces of gold.
Meanwhile, North Bay has settled a demand loan totalling C$361,951, and has converted C$350,000 of that debt into a two-year secured debenture at 10% and issued warrant coverage on a dollar for dollar basis at an exercise price of $0.0007 totalling 500 million warrants with a term of three years.
The company has begun work with prior auditors for the purpose of returning to SEC reporting status and upon completion may commence the uplisting process.
Write to Adam Orlando at Mining.com.au
Images: North Bay
