O3 Mining Inc (CVE:OIII) (OTCMKTS:OQMGF), the Quebec-focused exploration project consolidator, outlined Thursday its plans for 2021, which includes a 150,000 metre (m) drill campaign on its Alpha and Marban projects, and to initiate a pre-feasibility study (PFS) on the latter.
Last summer, the group kicked off a 150,000m drilling program on its projects in Val-d'Or and this will continue through 2021.
READ: O3 Mining agrees to sell its Golden Bear assets in Ontario for a 30% ownership stake in Moneta Porcupine Mines
"Our strategy is two-fold, we aim to build on the momentum of the Marban PEA by defining more resources as we move the project towards a PFS, while on Alpha, continue with the bulk of the drilling as we target resource definition drilling across our land package," said José Vizquerra, the CEO of O3 Mining.
On the flagship Marban asset, he added: "We believe there is a lot more gold that we can bring into the existing resources by expanding the existing deposits and drilling other nearby prospective areas with the potential to grow the mining operation we are planning."
The company boss continued: "At Alpha, we have a three-pronged strategy on a pipeline of targets from grassroots to deposit delineation and expansion, which we are drilling simultaneously.
"Alpha is often overshadowed by Marban but it is just as exciting due to the significant land position we have in the heart of the Abitibi district.
"With a purchase option agreed on the Aurbel mill last year, O3 Mining has the opportunity for a relatively low-cost mining operation, once we have defined and delineated sufficient resources and completed economic studies. For this reason, the bulk of the drilling this year is focused on Alpha to rapidly provide up resources so that we can begin to conceptualise possible mining scenarios."
Earlier this month, O3 revealed it was selling its wholly-owned Northern Gold Mining subsidiary to Moneta Porcupine Mines Inc, giving O3 a 30.1% ownership interest in the latter company.
Northern Gold owns the Golden Bear assets, which includes the Garrison gold project in the Kirkland Lake district, for which O3 delivered a PEA last year showing an after-tax net present value (NPV) of C$321 million and a 33% internal rate of return (IRR).
"As the recent partnership of our Garrison project shows, the appetite for gold deposits in the principle gold-producing regions is growing, which bodes well for the future advancement of Alpha and is why we are also pursuing discoveries," added Vizquerra.
Contact the author at giles@proactiveinvestors.com