Auteco Minerals Ltd (ASX:AUT, OTC:MNXMF) made strong progress during FY2021 and is well-funded with more than A$21 million in cash as it drives exploration at the Pickle Crow Gold Project in Canada.
During the period, the company bolstered its inferred mineral resource estimate by 100% at Pickle Crow taking the total to 1.71 million ounces at 8.1 g/t gold.
The company’s systematic approach to exploration continued to generate strong results, with ongoing organic growth which in turn provides a pathway to production and superior financial returns for the project.
Promisingly, Auteco’s strategy is aimed at injecting new life into Pickle Crow which was once one of Canada’s highest-grade gold mines and produced 1.5 million ounces at 16 g/t gold over a 30-year period between 1935 and 1966.
Exploration growth program
Auteco’s exploration and growth program was underpinned by 45,000 metres of drilling which led to the identification of new veins and zones of mineralisation such as the Cary discovery, which remains outside the existing resource.
Importantly, the campaign resulted in the addition of 1.71 million ounces at just A$15.25 per resource ounce.
In light of the recent success of the drilling program, Auteco has initiated an additional 50,000-metre drill program which started in late June, generating strong results pointing towards future resource growth.
Pickle Crow update
Auteco Pickle Crow geological setting.
Auteco remains on track to increase its interest in the Pickle Crow Project to 80% by the end of 2021 through an earn-in agreement with First Mining Gold Corp. (TSX:FF, OTCQX:FFMGF, FRA:FMG)
Importantly, Stage 1 earn-in to secure 51% of the project was achieved in May 2021 and Stage 2 to earn 70% on August 2, 2021.
Carey discovery
During the period, Auteco discovered new shallow high-grade gold at Pickle Crow with shallow broad zones of mineralisation pointing to the potential for open-pit mining.
The company now plans to conduct further drilling at the new prospect, dubbed Carey, to determine the continuity of mineralisation between historic drill holes to the north and south of the initial intersections.
Shallow high-grade gold results from drilling at Carey include:
- 20.4 metres at 5.3 g/t gold from 102.7 metres, including 2.2 metres at 39.3 g/t;
- 13.8 metres at 2.0 g/t from 29.8 metres;
- 16.5 metres at 2.2 g/t from 160.6 metres;
- 6.5 metres at 4.6 g/t from 86.5 metres; and
- 4.5 metres at 3.5 g/t from 54.3 metres.
Changes in leadership team
During the past year, Auteco further enhanced the Pickle Crow team under the leadership of a new team in Australia and Canada.
The company appointed experienced mining executive Darren Cooke as its new chief operating officer while Sam Brooks resigned as the company’s executive technical director.
Forward work plan
Auteco’s forward work for the Pickle Crow project has been summarised into three key activity categories:
- Exploration and growth;
- Resource update; and
- Pathway to production.
Auteco forward work plan to the end of 2021.