The Fenelon Mine Property is an advanced stage project with near-term production potential, as well as drill intersections suggesting exploration potential for resource expansion. The project is located in West-Central Quebec, within the same geological belt that hosts the large Detour Gold mine in Ontario.
President and CEO of Wallbridge, Marz Kord added, "Based on my review of the Fenelon Mine Property using my 30 plus years of experience as mine operator and engineering consultant working on small and large projects in Northern Ontario and Quebec , I am convinced we can move this project forward rapidly and be in a position to make a production decision in the first half of 2017.
" During our due diligence period, we have done a lot of work on all aspects of the project including an in-house review of the geology and resources, and estimated preliminary capital and operating costs based on quotes from potential mining and transportation contractors, camp operators, and gold milling facilities.
"Based on this preliminary work we believe we are in an excellent position to move forward quickly and to complete the work necessary to confirm project feasibility and make a production decision within the time frame stated above. A positive decision would mean that the Fenelon Project would meet our stated criteria of being a high margin asset.
"We have received expressions of interest from mining and transportation contractors who would assist us with bridge financing the working capital by waiting to get paid for their work until we receive payment for product from the processing facilities."
"Exploration opportunities at Fenelon include open mineralized zones close to the existing underground workings as well as high grade drill intersections at depth and along trend. Our initial focus will be on expanding the deposit close to the existing workings," stated Joshua Bailey , Vice President Exploration of Wallbridge, "Recent high grade intersections reported by Detour Gold and Balmoral support the potential for larger high grade systems proximal to the Sunday Lake Deformation Zone."
The Fenelon Project covers 1,052 hectares and is located in West-Central Quebec proximal to the Sunday Lake Deformation Zone which hosts the Detour Gold Mine in Ontario (514 million tonnes reserves grading 0.99 g Au/t, 16.4 M ounces) as well as the Martiniere gold project being explored by Balmoral (Figure 1).
The Fenelon Project contains the Discovery Zone gold deposit (Figures 2 and 3) which was discovered in 1994. A total of over 50,000 metres of drilling have been completed and, very significantly, two bulk samples have been mined and processed from the deposit.
In 2001, a 13,835 tonne bulk sample mined from a small open pit at the Discovery Zone was test milled at the Camflo mill in Malartic and returned 132,039 grams (4,245 ounces) of gold giving a reconciled grade of 9.84g/t gold using a calculated recovery of 97%. A second bulk sample, mined from underground and also milled at Camflo was comprised of 8,169 tonnes and returned 80,731 grams (2,596 ounces) of gold giving a reconciled grade of 10.7 g/t gold.
The open pit and underground workings are currently flooded, with de-watering expected to take no longer than 6 to 8 weeks after all permits are in place.
Initial work plans for the project include:
Completion of an updated resource/reserve estimate and a NI 43-101 report
Consultations with First Nation communities
Initiating permitting for dewatering the pit and underground workings for the purpose of underground rehabilitation, underground diamond drilling, and eventual development/mining
Firming up costs for a preliminary economic assessment ("PEA") or prefeasibility study by securing firm bids for mining, transportation of the ore to a mill, and custom milling at a toll milling facility.
Completion of a PEA or pre-feasibility study
Contingent on positive results, making a production decision
It is expected the above plans can be completed within 8-12 months.
"We look forward to rapidly moving this project forward following completion of the transaction," stated Marz Kord , President and CEO of Wallbridge.
"We are very encouraged by the grades that were mined during both the surface and underground bulk sampling campaigns, and with the exploration potential in the immediate vicinity of the existing underground workings."
