Yesterday, I had the pleasure of being introduced to the M3 Metals Corp (CVE MT) by the company's president, Adrian Smith.
Smith is a geologist with more than ten years’ experience working in the metals and mining industry. He has worked with Sable Resources and North American Tungsten Corporation in British Columbia and the Northwest Territories. Alongside his role with M3, he is the founder of Divitiae Resources.
M3 Metals Corp has three projects: the Star’s Copper Project, located in BC; the Block 103 Iron Ore Project, located in Quebec; and the Mohave Gold Project, located in Arizona.
Of all the projects Smith took me through Mohave stood out, despite it only being acquired in October of this year. It’s an unusual project in terms of its development stage; the project has a 350 tonne per hour heap leach plant and mining fleet, which is currently non-operational with a relatively small combined historic reserve and resource estimate of 96,000 ounces of gold at a grade of around 1.6g/t Au (grams per tonne gold).
Figure 1: Photograph of the equipment at the Mohave Project
Source: M3 Metals Corp.
The previous operators of the project were focused on production rather than exploration and spent more than US$12mln constructing about 90% of the operation before running out of funding, and as a result the property has been idle since the 1990s.
In total the project contains ten historic workings distributed in the northern, central and southern portion of the licence’s (Figure 2).
Figure 2: Map of the Mohave Gold Project
Source: M3 Metals Corp.
What I think is particularly interesting about the M3 Metals Corp story is the size (5 kilometres strike length in total) and grade of the gold-in-soil anomaly associated with the historic operations (Figure 2), which appears to indicate the potential for a much larger resource estimate than was historically defined.
The exploration potential of the Mohave Project, combined with the ability to leverage the existing plant and infrastructure to move the project into production in a comparatively short time frame and the low capital cost make for an attractive if somewhat unusual story.
M3 Metals Corp is currently digitising the historic exploration database and is applying for the required permits for around 200 RAB and diamond drill pads to undertake a substantial drill programme at the project in 2020.