FULL DISCLOSURE: Cambria Gold Mines is a sponsor of theDeepDive.ca.
Cambria Gold Mines (TSXV: CAMB) is preparing to carve out its Mt. Margaret copper-gold project into a standalone, U.S.-focused entity, a move intended to unlock value from a massive porphyry deposit that has sat largely dormant for decades.
While details of the spin-out remain thin, CEO Robert McLeod indicated that the spin out is to result in a US-focused listed entity, “in the near future.” The company has spent recent weeks in high-level discussions with federal departments to chart a path forward for the asset, which is one of the largest undeveloped copper deposits in the United States.
The company also announced Wednesday that it is doubling down on the project, staking an additional seven square kilometers of unpatented lode claims to surround its existing federal holdings.
Mt. Margaret is not a new discovery, but rather a significant historic resource that has been caught in the crosshairs of evolving mining regulations and land use discussions. The deposit was aggressively explored in the 1970s by Duval Corp., which drilled over 100 holes and produced an internal estimate of 577 million tonnes of mineralized material, grading 0.36% copper, 0.24 g/t gold, 0.011% molybdenum and 1.58 g/t silver.
READ: Cambria Drills 17.95 g/t Gold Over 22 Metres At Premier Mine
“The Mt. Margaret deposit is a significant copper-gold porphyry system. With a mineralized footprint starting at surface and spanning over one square kilometre with multiple drill holes ending in mineralization over 400m below surface, this deposit has the potential to be one of the most significant undeveloped copper deposits in the United States,” commented McLeod.
Cambria currently holds a 50% interest in patented federal claims under an option agreement, with the remaining interest held by the U.S. Bureau of Land Management. The current option agreement, entered into in 2010 with General Moly, enables Cambria to earn up to a 100% interest in the property, subject to a 1.5% NSR.
Cambria Gold Mines last traded at $1.44 on the TSX Venture.
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