O3 Mining Inc (TSX-V:OIII, OTCQX:OIIIF) said it has posted encouraging drill results from the Camflo extension deposit at the company's Marban project in Val-d'Or, Quebec.
In all, 6,338 metres (m) were sunk in two holes and three wedges on the extension as part of the work, which tested the depth extensions of the historic Camflo deposit and additional high-grade zones.
Camflo Mines first discovered the Camflo deposit in 1962 and the asset was in production from that year until 1992, generating 1.89 million ounces of gold grading 5.7 grams per tonne (g/t).
That previous output came mainly from the Camflo Plug, which - at surface - is outside O3 Mining's claims, but the extension of the plug and the mine below 800 vertical metres is within the Marban project.
READ: O3 Mining makes strong progress on the pre-feasibility study for its Marban Engineering project in in Quebec
"The Camflo mine was the first mine from which Barrick Gold started its successful journey, and was stopped due to a challenging gold price environment but not due to a lack of ore," said O3 Mining CEO Jose Vizquerra in a statement.
"O3 Mining owns 100% of the Camflo Extension deposit which we successfully tested and verified that it remains a rich mineralized area at depth.
"We believe more drilling in this area will unveil its full potential, however, it demands more financial resources which we are allocating to our current brownfield drilling at Marban Engineering to maximize returns to our shareholders."
O3 Mining drilled two-parent holes with one and two daughter branches that successfully hit the plug at the predicted depth.
The best assays were from a hole, which returned 1.1 g/t gold over 94.3m starting from 1,258.9m depth. Within that was a high-grade interval of 13.8 g/t of the yellow metal over 1.1m.
Another hole hit an impressive 69.1 g/t gold over 0.9m starting from 98.9m depth, while all holes and wedges returned large mineralized intervals within the Camflo Plug.
O3 Mining is an Osisko Group company and describes itself as a gold explorer and mine developer on the road to production from its highly prospective camps in Quebec, Canada.
Contact the author at giles@proactiveinvestors.com