Many analysts agree that gold as an asset class will retain its importance. However, the words of our Finance Minister Olaf Scholz will be judged, who said: “We will grow out of the crisis”, the industrial raw materials also get plenty of tailwind! New debts are incurred, creating the basis for further economic growth!
Only recently had it Caledonia Mining (ISIN: JE00BF0XVB15 / TSX: CAL) the exclusive exploration of ‘Glen Hume’ secured with an option agreement. Now the gold producer is adding the proverbial shovel with the latest exploration option for ‘Connemara North’.
The Connemara North area is only around 30 km from Glen Hume, in the Gweru mining district in the Midlands of Zimbabwe. A good road connection has already laid the first cornerstone for successful exploration work! Market insiders agree that developing both areas will uncover massive operational potential.
In any case, with this option agreement, Caledonia secures the exclusive right to an exclusive exploration of ‘Connemara North’ and, in the event of a successful exploration, the right to buy this district as well.
That costs Caledonia the new deal
Initially, Caledonia Mining will put 300,000 USD on the table. If the option to purchase ‘Connemara North’ is drawn by Caledonia, a further USD 5 million will be due. The seller can then decide whether in cash or in the form of shares. In addition, Caledonia guarantees the seller a payment of 1% of the “NSR” license fee on the gold that will be produced in “Connemara North” in the future.
Will two become one?
Steve Curtis, CEO of Caledonia Mining, sees in ‘Connemara North’ above all the potential for synergies that could result from a ‘merger’ with ‘Glen Hume’ and explained:
“For Caledonia, this newer option agreement for Connemara North presents a great opportunity to establish itself in the extremely promising area of the Zimbabwe Midlands. We are optimistic that the initial results from our exploration programs will reflect our expectations for the occurrence there. Because even if ‘Connemara North’ has been waiting for its new development for twenty years, it promises the mine that was previously in operation thereto unearth great potential. “
Now that the newly sunk ‘Central Shaft’ is about to go into operation, Steve Curtis concludes, one can now concentrate on implementing further components of the corporate strategy.
With the commissioning of the new shaft, which not only increases productivity significantly, but also massively lowers overall production costs, the exploration of the new projects will not be a major burden for the company. The purchase price, which is paid in the event of a purchase decision, also appears very cheap! Should Caledonia develop the new projects nearly as successfully as its ‘Blanket’ mine, then the shareholders will literally be facing golden years, perhaps (probably) even with an even higher dividend!
The Canadian exploration and development company reaffirms assay results from its completed fall drill program of 15 exploration holes in the ‘Central’ zone on its 100% owned project ‘Pine Point’ Osisko Metals Incorporated (ISIN: CA6882741094 / TSX: OM) again its excellent performance.
Gravity gradiometric anomalies were investigated as well as areas of unconstrained mineralization around the current resource block model. The highlight of the exploration was hole OM100-20-001 with a fabulous result of 11.45% zinc (Zn) and 3.57% lead (Pb) in the northern part of the deposit ‘L65’ over 8.60 meters. Osisko confirmed the results of the historic drill hole and also confirmed the well developed tabular mineralization at this location which is part of the current underground mineral resource of the Central Zone. Thus, nothing stands in the way of the follow-up drilling to expand the existing mineralization in this area, as well as the establishment of a connection with a 900 meter long open trend parallel to the main part of the tabular deposit ‘L65’ and north of it.
Lets go on we can do it better!
But that was not all. Hole OM97-20-001 intersected 3 meters grading 2.01% Zn and 2.94% Pb in shallow tabular mineralization located 1,300 meters west of the historic ‘K77’ occurrence in an area where assay results are not yet available for most of the historic drill holes. This hole also underscores the potential for mineralization towards the previously mined ‘K77’ occurrence.
Source: Osisko Metals Inc.
You should also know that the traditional company Cominco had already built up a historical production of more than 500 million tons with an average content of 12.8% Pb and Zn!
According to Osisko CEO Robert Wares, the results to date from this program indicate fairly clearly the excellent potential for expanding the tabular mineralization at ‘Pine Point’.
That added the boss!
“In addition, several untested geophysical anomalies, including the strong ‘IP’ anomaly described above, indicate the potential for new discoveries of high-grade prismatic deposits. Our ‘Pine Point’ project is moving forward with determination on all fronts and we believe that this is the beginning of a continuously growing zinc market. “
Finally, another new ‘IP’ anomaly suggests prismatic mineralization. A recently completed Induced Polarization (IP) geophysical survey identified a clear target for chargeability and resistivity between the main and northern trends. This is 250 meters long and 150 meters wide and extends from the surface to a depth of around 200 meters.
No prior drilling has been performed on this target either. However, it already shows similar characteristics to earlier ‘IP’ investigations on known prismatic deposits, which are higher grade than tabular deposits. Hole OM103-20-001, a stratigraphic hole drilled 260 meters south of the ‘IP’ anomaly, intersected strong dolomitic alteration in the key ‘Sulfur Point’ which is the primary host of all mineralization at ‘Pine Point’ .
Osisko Metals presents itself as the right project in the right market phase! The new results also convince us of the management team and the project. Thanks to the latest financing round, drilling can continue without any problems, which opens up the possibility of another extremely positive newsflow! So it is still extremely exciting at Osisko Metals!
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