viewO3 Mining Inc

O3 Mining exploiting world class district in bid to become premier, multi-million ounce gold firm


In Québec, the group holds 435,000 hectares of ground, while in Ontario, it has 25,000 hectares

O3 Mining Inc -

Quick facts: O3 Mining Inc

Price: 2.49 CAD

Market: TSX-V
Market Cap: $150.14 m
  • O3 has 'under-explored' ground in Val D’Or, Quebec.
  • Home of four world-class deposits and where 30 million ounces of gold have been generated
  • Well-funded with C$20.8 million in cash

What 03 Mining does:

O3 Mining Inc (CVE:OIII) is part of the Osisko group of companies and describes itself as an emerging 'consolidator' of exploration properties in prospective gold camps in Canada, specifically in Québec and Ontario. It wants to become a multi-million-ounce company.

In Québec, the group holds 435,000 hectares of ground, while in Ontario, it has 25,000 hectares. Overall, the firm already has 5.2 million ounces of gold in six existing deposits in its portfolio.

Among the Ontario properties, the Golden Bear Group, situated in the Abitibi Greenstone Belt - which includes the Garrison property - boasts over 1.57 million gold ounces of measured and indicated resources at 1.12 grammes per ton (g/t) of the yellow metal.

O3 Mining controls 61,000 hectares in Val D'Or, Quebec and over 50 kilometers (km) of strike length of the Cadillac-Larder Lake fault. Here, the firm holds the Marban group of properties and the Central Cadillac Group of assets, which consists mainly of the Alpha property.

Its projects in the Val D’Or area already host resources of over 2.006 million ounces of higher-confidence measured and indicated (M&I) resources at 1.40 grams per ton (g/t) of gold and over 1.059 million ounces of inferred at 2.95 g/t gold.

The firm also has a portfolio of assets in the James Bay and Chibougamau regions of Québec.

The company has told investors of its three-pillar strategy to increase value by advancing its Marban project closer to development by publishing a Preliminary Economic Assessment and exploring the Malartic property (10,000 metre (m) program); expanding the mineral resources at the Alpha property with a 25,000m drill program.; and expanding mineralization at the East Cadillac property (15,000m program).

How is it doing:

O3 Mining has been busy so far in 2020. The group recently sold its non-core Hemlo exploration properties in Ontario to junior miner Canadian Orebodies Inc  (CVE:CORE) in an all-paper deal which will see the firm hold a 15.4% stake in the latter company.

The company has also given a major boost to potential production plans for its flagship Alpha property in Quebec by striking an option to buy a processing mill 10 km away. It inked the option deal in May with QMX Gold Corporation (QMX) to acquire a 100% interest in the Aurbel mill for C$5 million at any time during a six-year term.

The mill option allows the firm to secure existing infrastructure without additional environmental impact and provides the potential to expand mill capacity as required.

The Alpha project is home to the Bulldog, Pontiac East and Epsilon zones, as well as the Orenada 2&4, Akasaba and Simkar deposits. The mill is also a potential site for the Malartic and East Cadillac properties.

Also in May, the group revealed it had commissioned Ausenco Engineering to carry out a preliminary economic assessment (PEA) for the Marban project, with the study expected to be available in the third quarter of this year.

Marban, home to three historic mines, currently boasts a mineral resource for the Marban, Norlartic and Kierens deposits of 1.59 million ounces at a grade of 1.29 g/t gold in the measured and indicated category and 195,000 ounces at a grade of 1.47 g/t gold in the inferred category.

No companies have been wholly untouched by the coronavirus, and on May 13, the group said it was set to resume exploration at its Val D’Or properties after an announcement from the government of Quebec on easing lockdown restrictions.

Adhering, as it is already, to rules, safety and sanitary guidelines, the firm said it would mobilize two drill rigs after spring break up in June and when snow has melted to continue its planned 50,000 metres drilling program.

One rig will be on the Alpha property focused on Bulldog and Orenada Zone 4 and the second will be on the East Cadillac property targeting the North Contact zone, the firm said.

Inflection points:

  • Resumption of exploration
  • Marban preliminary economic assessment
  • Gold price moves

What the boss says:

Following the Aurbel Mill deal, O3's chief executive Jose Vizquerra spoke to Proactive's Steve Darling explaining the rationale behind the deal and current group progress.

"We want to have the certainty that we have enough resources before we have to buy it, so this gives us the option and not the obligation. So if we find enough ore we can put it into production with no problems. And we have already guaranteed the price today for the future."

He added: "We are advancing the PEA on Marban and that's moving along very well and now this second step into Alpha where we're growing the resources and we want to have the flexibility to put into production at any time."

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