In Mining Lingo We Call This A BOOMER Wallbridge Mining Drills 7.02 Meters of 237.78 gt Au Step- Out
Wallbridge Mining Co. (TSE:WM, FRA:WC7)
What if we told you a junior mining company just pulled out one of the best holes of the year as a step-out?
And what if we told you it was in one of the most prolific gold jurisdictions in the world and is open at depth and strike?
And what if we told you the company’s market cap was only C$18.6M?
This morning, the company announced a mega-hole – 7.02 meters of 237 g/t Au!
Wallbridge acquired the Fenelon project because they knew that the property had enormous growth potential. The company has proven this in a big way.
The current PFS encompasses only the top 150 meters of the deposit. Yet, the vast majority of gold deposits in the Abitibi go down to at least 1,000 meters, with average grades of 7-8 g/t gold.
Fenelon currently has 300 ounces of gold per vertical meter, which we believe can be increased to 500 ounces with further drilling. If Wallbridge increases its depth to 800-900 meters, this has the potential to increase the resource from 40,000 ounces to at least 300,000 ounces.
The company plans on concentrating on the “low-hanging” fruit and will be making a production decision in Q1 2018. When Fenelon is cash flowing, it will begin exploring a mineralized structure that spans 4,000 meters. To put this into perspective, the current PFS only covers 200 meters of strike, 100 meters wide and 150 meters deep. Investors do not realize this blue-sky potential.
Results from another six holes are pending, and follow-up drilling is still planned as part of the pending bulk sample. Wallbridge expects to receive permits in the near future, and this will allow them to de-water the existing ramp and extend development down to the 5150 level (100 meters from surface). At this level, the company can truly assess the high-grade mineralization by extracting 35,000 tonnes of ore.
Furthermore, the development will allow the company to drill extensions to depth, and look at other potential new high-grade zones.
Marz and company so far have done everything they said they would, and the company still has a strong stream of catalysts on the horizon. We are excited to see how big Fenelon can become.
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