Auteco Minerals Ltd (ASX:AUT) has increased the inferred mineral resource estimate for the Pickle Crow Project in Ontario, Canada, by 71% to 1.7 million ounces of gold.
This strong result includes a high-grade vein-hosted resource of 4.5 million tonnes at 10.1 g/t for 1.47 million ounces of gold, an increase of 47 per cent.
In addition, the new estimate contains a maiden JORC inferred resource of 2.1 million tonnes at 3.7 g/t for 242,000 ounces of gold hosted within the adjacent Banded Iron Formation (BIF).
Promisingly, Auteco’s drilling carried out since the cut-off for the resource update has intersected even more high-grade gold outside the resource.
“Exceptional result”
Auteco executive chairman Ray Shorrocks said: “To grow the high-grade resource by almost 50 per cent by adding 470,000 ounces at more than 10 g/t is an exceptional result.
“Achieving that at a cost of around A$15 per ounce is even better.
“Pickle Crow now has genuine scale and is truly high-grade by any measure. These factors highlight the quality of the mineralised system.
“And the good news continues to flow, with the new drilling program already intersecting significant high-grade mineralisation outside the updated resource envelope.”
Exploration and growth program
Auteco’s resource update is the successful culmination of the September 2020 exploration and growth program, which was underpinned by 45,000 metres of drilling.
This campaign resulted in the addition of 710,000 ounces of gold at A$15.25 per resource ounce, in addition to the discovery of numerous new veins and mineralised zones such as Carey.
The Pickle Crow mine was one of Canada’s highest-grade historical producers, with 1.5 million ounces of gold produced at a grade of 16.1 g/t between 1935 and 1966.
Gold was sourced from narrow high-grade quartz-carbonate veins mined from underground, this style of mineralisation forms the bulk of the inferred mineral resource also
Auteco’s subsequent 50,000 metres drill program is well underway and is already generating strong results.
The company is fully funded for its growth strategy with A$26.8 million cash on hand on March 31, 2021
Phase two drilling
Auteco has to date completed a total of 5,622 metres of drilling in 14 diamond drill holes in the phase two drilling program.
The drilling has continued to test the extent and continuity of newly discovered veins to the northwest of Shaft 3.
Assay results have been partially received for five holes, and assays are yet to be received for a further nine.
Strong intersections returned from drilling northwest of Shaft 3 include:
- 1.8 metres at 16.6 g/t gold from 61.5 metres;
- 3.3 metres at 8.0 g/t from 836.4 metres;
- 1.8 metres at 21.2 g/t from 838 metres;
- 4.9 metres at 4.7 g/t from 514 metres, including 2.1 metres at 10.4 g/t; and
- 1-metre at 14.1 g/t from 432 metres.
Furthermore, the company aims to begin concept-stage exploration target testing, which has yielded immediate results with the Carey discovery that returned an intersection of 20.4 metres at 5.3 g/t gold.
Forward work plan
Auteco has devised a forward work plan to the end of 2021 for the Pickle Crow Project which has been summarised into three key activity categories:
- Growth and exploration: Continue the dual strategy of near-mine resource growth and regional discovery focused exploration.
- Resource update: Complete an updated mineral resource estimate.
- Pathway to production: Commence high-level activities to demonstrate a pathway to production
The three-staged approach will continue to focus on exploration and growth, preparing for a year-end resource estimate and completing activities that potentially demonstrate a pathway to production for the Pickle Crow deposit.
- Ephrems Joseph