MAS Gold Corp (TSX-V:MAS, OTCQB:MSGCF) has reported a new resource estimate for its North Lake gold deposit in the La Ronge belt of Saskatchewan, which upgraded 79% of the estimated tonnes and 81% of the in-situ gold to the higher confidence indicated category compared to a 2021 report.
Using a cut-off of 0.40 grams per tonne (g/t) gold, the updated estimate shows 389,000 ounces of contained gold in the indicated category from 13.8 million tonnes (Mt) of material at a grade of 0.88 g/t of the precious metal.
The inferred resource is 95,000 ounces of contained gold, from 3.6 Mt at 0.82 g/t gold.
The latest resource also increased the average estimated grade by 2.4%, noted MAS in a statement.
The report from two years ago showed 18.1 Mt at 0.85 g/t gold for 495,000 ounces of gold in the lower confidence inferred category.
“This result gives us great confidence in the North Lake Deposit and solidifies it as our central Hub within MAS Gold’s Hub and Spoke Model,” said Jim Engdahl, MAS Gold’s CEO in a statement.
“Our strategic plan for MAS Gold is to increase resources and advance the Hub and Spoke model creating value for the company and its shareholders. This is another step towards achieving our long-term goal to be a mining operation.”
The North Lake deposit is one of the exploration projects MAS is focused on advancing in the prospective La Ronge gold belt.
The firm currently has five advanced deposits including the North Lake, Greywacke North, Preview SW, Contact Lake, and Point gold deposits.
This updated resource estimate follows the company’s 2022 winter drilling program at North Lake, which comprised 34 holes for 4,088.5 metres (m).
“The upgrade in the classification of the mineral resource is an important outcome of the 2022 drilling program that resulted from a tighter drill spacing and twinning of historical drill holes. This allowed for a greater confidence in the near surface mineral resource,” the company said in a statement.
Also in today’s statement, MAS Gold updated on the previously reported transaction with Eros Resources Corp to earn a 17.5% interest in some of MAS’ properties.
The firm is currently obtaining a valuation to meet one of the TSX Exchange requirements for approval. The valuation is expected to be completed in mid-January, it said.
In addition, to meeting requirements for final approval, MAS said it will be requesting shareholder approval at its upcoming annual general and special meeting for the private placement which occurred in May and June 2022, wherein a subscriber became a control person.
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