O3 Mining Inc (CVE:OIII) (OTCMKTS:OIIIF) said latest drill results from its flagship Marban project at the Malartic property in Québec underline the potential to expand the resource.
The company's drill program being carried out this year and next consists of 125,000 metres (m) at Marban to test extensions of the deposits and zones outside the preliminary economic area (PEA) pit areas.
READ: O3 Mining on the hunt to uncover more resources as it announces 250,000m drilling plan for its Québec assets
Highlights from two holes included 5.1 grams per ton (g/t) gold over 5.1m, which included an intersection of 13.1 g/t of the yellow metal over 0.5m in one hole at the North Shear zone.
Also uncovered was 2.7 g/t gold over 10.6m, including 26.9 g/t gold over 0.5 metres in a hole near surface in the new Triple North zone.
"The discovery of the new Triple North zone outside of the Norlartic pit shell continues to build our confidence in the potential to expand the mineable resources at Marban," said José Vizquerra, the CEO of O3 in a statement.
"With 125,000 metres of drilling planned for the Marban project, our drill program continues to grow, as does the potential for new discovery."
In all, 51 holes have been sunk at Marban since the beginning of the campaign in August last year, focusing on the Kierens, Kierens NW, Gold Hawk, Orion, MK, North Shear, North North, and Marban NE zones. Assays from 23 drill holes are still pending.
A preliminary economic assessment (PEA) for Marban released last September and showed a profitable, lost cost project, with potential to further expand the mine life.
It envisaged an 11,000 tonnes per day (tpd) open pit operation, with production spanning 15.2 years, with a positive after-tax internal rate of return (IRR) of 25.2% and an after-tax net present value (NPV) of C$423 million.
Other highlights of the economic assessment were initial capital (CAPEX) required of C$256 million, including mine pre-production and processing infrastructure, with an after-tax payback period of four years.
The study by Ausenco was based on a measured and indicated mineral resource of 54,151 tonnes at 1.10 g/t gold grade.
O3 Mining is part of the Osisko Group of companies and describes itself as a consolidator of exploration properties. It holds properties spanning 435,000 hectares in Quebec and 25,000 hectares in Ontario.
Contact the author at giles@proactiveinvestors.com