viewChase Mining Corporation Ltd

Chase Mining plans Quebec drilling campaign kick-off at Lorraine


Contractors have been drawing up quotes this month, with drilling at the historical mine project set to start later this quarter.

Quebec and Canadian flags fly at full mast on two flagpoles

Quick facts: Chase Mining Corporation Ltd

Price: 0.033 AUD

Market: ASX
Market Cap: $10.52 m
  • The historical Lorraine mine in Quebec mine had “bonanza-grade” historical results of 28.04 metres at 37.42 g/t gold and 33.74 g/t silver in the 1960s

  • Lorraine mine produced 600,000 tonnes of ore and more than $100 million in metal in less than 24 months between 1964 and 1968

  • The grades of the historic tonnages were 1.57% copper, 0.62% nickel and 0.02 ounces per tonne gold, with unspecified amounts of silver, PGE and cobalt

What does Chase Mining do?

Chase Mining Corporation Ltd (ASX:CML) is a nickel-copper sulphide explorer with primary focus being the historical Lorraine gold and silver mine asset in Quebec, Canada.

Previous prime focus was on its tungsten and topaz holdings in New South Wales when it was known as TopTung Ltd (ASX:TTW).

The company is led by executive chairman Dr Leon Pretorius, with the assistance of geologist and non-executive director Martin Kavanagh.

Chairman Pretorius is a geochemist with 46 years international mineral and mining experience.

Pretorius settled in Australia in 1978 and has enjoyed a long career in the gold, industrial minerals, uranium and tungsten sectors.

The experienced corporate leader has 24 years experience serving as a director of companies, previously serving on the board of Paladin Energy.

He was managing director of Deep Yellow Limited and executive chairman of Carbine Tungsten.

Kavanagh is a geologist with more than 45 years exploration and mining experience.

He has served as director of ASX-listed companies for more than 18 years and is principal of minerals industry consultancy KEM Resources.

What does Chase Mining own?

The key assets are the Canadian nickel-copper sulphides in Quebec picked up from Zeus during an acquisition wrapped up in October 2018.

Among these is the historical Lorraine mine in Quebec mine which had “bonanza-grade” results of 28.04 metres at 37.42 g/t gold and 33.74 g/t silver in the 1960s.

Lorraine mine produced about 600,000 tonnes of ore and more than $100 million in metal in less than 24 months between 1964 and 1968.

The grades of these tonnages were 1.57% copper, 0.62% nickel and 0.02 ounces per ton gold, with unspecified amounts of silver, platinum group elements (PGE) and cobalt.

This week the company, which considers itself a first-time “greenfields” explorer in the Quebec Archaean terrane, reported an independent review had confirmed a number of VTEM plates for drilling.

Now being described as project rather than prospect, Lorraine features priority targets and is expected to be drilled during an upcoming campaign in August 2019.

The 2,500-metre drilling campaign will be undertaken with the assistance of Chase’s exploration consultants at Orix Geoscience.

Last week the Quebec Ministry of Forests, Wildlife and Parks granted the company a drilling permit for drill-testing of its five Priority 1 Versatile Time Domain Electromagnetic (VTEM) anomaly targets at Lorraine.

Two weeks ago Chase lodged a permit to operate application with the Anishinabeg of Kakinwawigak — The Long Point First Nation — requesting permission to access the exploration areas under the indigenous title holders’ land rights so drilling may take place.

Pretorius and Kavanagh met with Long Point First Nation representatives on a recent site visit and gained an understanding of the services they may provide going forward.

These services may include road and bridge construction services which were being quoted on this month.

Drilling contractors have also been drawing up quotes, in anticipation of specific drilling equipment being available for use from next month.

Another asset in Chase’s portfolio is the Torrington Tungsten and Topaz Project in New South Wales.

The company picked up Zeus and Lorraine and rebadged itself Chase from TopTung after a downgrade in tungsten resources at the project.

Last month the company gained additional claims in Canada.

These were the Bambino Project Area, made up of 34 claims that are contiguous with its wholly-owned Alotta-Delphi-Zullo (ADZ) project area in Quebec, and more claims at Lorraine.

The ADZ acquisitions doubled the project area, with five Priority 3 anomalies flagged for follow-up among the new claims.

ADZ is another project acquired with now Canadian subsidiary Zeus.

Chase’s six extra claims at Lorraine included a Priority 1 anomaly on the western boundary of the project area and a Priority 2 anomaly close to the previous southern boundary.

Inflection points

  • Start to drilling at Lorraine project in Canadian province of Quebec
  • In-field observations of mineralisation at Lorraine
  • Assays and further findings at Lorraine
  • Scoping studies and feasibility study activity
  • Progress at Alotta-Delphi-Zullo (ADZ) project area in Quebec
  • Divestments and acquisitions and resulting effect on cash flow
  • Financing milestones and achievements
  • Significant transactions such as mergers and acquisitions

Survey delivered “exciting” anomalies for drilling, notes director Martin Kavanagh

“In late February, early March we commenced the flying of a VTEM survey of mineral claims at Lorraine and Alotta,” Chase Mining director Martin Kavanagh told Proactive Investors two weeks ago.

“That survey was completed at the end of March and preliminary data was pretty exciting, in that we returned some pretty significant VTEM on this and that data was further processed by and the final data, again, enhances those anomalies.

“The data was then processed for plate modelling.

“The modelling was very successful, we’ve outlined six of what we’ve classed as Priority 1 targets and they were, we think, indicative of what massive sulphide mineralisation.

“Fortunately we had the Alotta nickel deposit and the Lorraine mine nickel deposit as benchmarks for the work and both of those deposits returned Priority 1 anomalies, so that gave some credence to our remaining undrilled Priority 1 anomalies.”


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