O3 Mining Inc (CVE:OIII) has reported encouraging drill assays from its Marban project, part of the Malartic property, in Val-d'Or, Québec, which have potentially shown a high-grade satellite deposit.
Assays come from seven holes, which were sunk down-plunge at the Gold Hawk zone, and were part of the firm's 150,000-metre (m) drill program.
READ: O3 Mining increases drill rigs to six for its Alpha and Malartic properties in Val D'Or, Quebec
Highlight results from Gold Hawk included 383.4 grams per ton (g/t) gold over 2.0m in one hole, including an intercept of 1,510 g/t of the yellow metal over 0.5m.
"Gold Hawk is shaping up to be a very promising potential high-grade satellite deposit for the Marban mine development project, just 2 kilometres away," said the firm's CEO Jose Vizquerra in a statement.
"The high-grade intercepts confirm the exceptional high-grade characteristic of the gold deposits along the prolific Marbenite shear corridor giving us the confidence to continue the drill program to more quickly unlock its potential and build resources there."
A preliminary economic assessment (PEA) for the Marban project released in September this year showed the property to be a profitable, lost cost project, with potential to further expand the mine life.
The study envisaged an 11,000 tonnes per day (tpd) open pit with production spanning 15.2 years, with a positive after-tax internal rate of return (IRR) of 25.2% and an after-tax net present value (NPV) of C$423 million.
The report was based on a measured and indicated mineral resource of 54,151 tonnes at a grade of 1.10 g/t gold.
Current drilling at Malartic is focused on expanding mineralization outside the proposed pit areas and identifying high-grade oreshoots.
The firm has allocated 45,000 metres for the Malartic property to test extensions along strike and down plunge of the deposits and zones outside these areas
O3 Mining is part of the Osisko Group of companies is a 'consolidator' of exploration properties. It holds assets spanning 435,000 hectares in Quebec and 25,000 hectares in Ontario.
Shares added 2.56% in Toronto to stand at C$2.40 each.
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