O3 Mining Inc (TSX-V:OIII, OTCQX:OIIIF) has hailed a new updated resource estimate for its Marban project in Val-d'Or, Quebec, which, it says, augurs well for a pre-feasibility study to be completed later this year and the following feasibility report.
The company said the update has increased open pit indicated resources at the asset by 29% to 520,000 ounces compared to the 2020 estimate and increased the average gold grade by 2%.
Notably, the conversion rate to the higher confidence indicated category from the lower inferred was more than 100%.
"Together with the recent metallurgical test work results and higher indicated resources, we are expecting to see robust economics in the Marban PFS and to move quickly towards initiating a Feasibility study," said CEO of O3 Mining Jose Vizquerra in a statement.
"In parallel, initiating our 20,000 metres brownfield exploration program to increase near-surface resources and ounces at Marban Engineering," he added.
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The company noted that the updated resource has been estimated from 507,238 metres (m) of drilling in 2,205 holes, including 39,208m in 209 holes drilled in and around the 2020 Marban PEA pits.
Currently, 20,000m are planned for brownfield exploration to increase near surface resources at Marban Engineering. The current drilling campaign will aim to expand the mineralization along strike to potentially generate future resources.
"The lateral extension of pits of the current resource estimates will be targeted, in particular, the two new pits generated north of the Marban main pit. Other zones not included in the current estimate will also be targeted such as Orion, Malartic Hygrade and Malartic H prospects," the firm said.
The company's Marban property spans over 7,500 hectares and sits just 12 kilometres (km) from the famous Canadian Malartic mine.
O3 Mining is an Osisko Group company and is a gold explorer and mine developer. It is well-capitalized and owns a 100% interest in all its properties, which cover 137,000 hectares (Ha) in Quebec.
Contact the writer at giles@proactiveinvestors.com