Heritage Mining: Advancing A Gold Project In Northern Ontario
Heritage Mining (CSE: HML), is a newly-listed, Vancouver-based junior exploration company that is developing its flagship 14,221 hectare Drayton-Black Lake Project in Northwestern Ontario. The Drayton-Black Lake Project is located on trend and adjacent to the Treasury Metals Inc. (TSX: TML) Goliath Gold Project, which has measured and indicated resources of 1,124,000 ounces of gold and inferred resources of 74,800 ounces of gold.
The northeastern part of the Goliath trend extends onto the Drayton-Black Lake Property, which itself has had a 100-year history of exploration for high-grade gold and copper. The region has well-established infrastructure that was built to support all aspects of exploration and mining, including direct road access to the Drayton-Black Lake property. Major projects in the district include the New Gold’s (TSX: NGD) Rainy River gold-silver mine that entered into production in 2013, and Hammond Reef, an open pit deposit with estimated reserves of 3.3 million ounces of gold that Agnico Eagle Mines Ltd. (TSX: AEM) is preparing for production.
Heritage Mining is well capitalized due to the recent completion of its $2.63 million IPO financing, which consisted of both common share units as well as flow through units. The company issued 7,973,581 units at $0.25 per each and 2,320,210 flow-through units at $0.275 per each. Each unit consists of one common share and one common share purchase warrant exercisable at $0.40 anytime prior to August 25, 2025. Heritage Mining has approximately $3 million in the treasury, which will be used to execute its exploration activities to advance the Drayton-Black Lake Project.
There has been over 100 years of exploration activity on the Drayton -Black Lake property, however much of the historical exploration data that was accumulated over that period has only just recently been digitally compiled into an efficient usable form. The main underlying mineralization types are orogenic lode gold, volcanogenic massive sulfides (VMS), and base metals. Over 176 holes have been drilled on the property, which identified four priority zones of high-grade gold mineralization:
- Moretti Zone consists of 18 prospects with polymetallic veins and stockworks. Trenching, drilling and mapping identified visible high-grade gold in quartz veins. Samples returned values up to 1,212 g/t gold. The host structure is estimated to be 10-30 metres in width, with gold and copper anomalies over a 6 km strike length. There are multiple veins on a northeast mineralized trend with the gold found in quartz-carbonate veins and stockworks. Only 20 shallow and widely spaced holes have been drilled, with mineralization open along strike and at depth.
- Split Lake Zone has multiple gold-bearing veins, with a 1991 result showing 0.7m of 14.8 g/t gold. Trenching, drilling and mapping identified visible gold in quartz veins that are similar in style to the Goliath deposit.
- Shaft Zone samples showed up to 318 g/t gold, including a 2005 result of 2 metres of 14.5 g/t gold. In 1961, Rio Tinto excavated two trenches and channeled across mineralized zones, showing sheared andesite with chalcopyrite and minor pyrite over the length of the trenches. Chalcopyrite, a form of copper, is found in veins. Highlights of the trenching program included 1.0 metre of 14.3 g/t gold and the best copper sample was 3.0 metres of 1.85% copper. Highlights of drilling included 13.5 metres of 0.57% copper and 1.24 g/t gold.
- West Zone has multiple gold showings, including samples with results up to 150.86 g/t gold
Heritage Mining also has its exploration-stage Contact Bay Project, a 4,700 hectare polymetallic land package that is located to the southwest of the Goliath Gold Project and adjacent to the property Pure Gold (TSXV: PGM) optioned to Kinross Gold (TSX: K) subsidiary, KG Exploration. The highly prospective Contact Bay property is host to a number of high grade gold, copper,-nickel, platinum and palladium mineralization zones.
Previous historical drilling identified three high priority high-grade targets. The underlying geology consists of Archean orogenic lode gold, VMS, and magmatic base metal mineralization systems, with magmatic shear-hosted precious minerals and base metal deposits, veins and stockworks. A rock sample taken from the northeast area returned assay results of 0.40 g/t gold and 0.7% copper, which was found in sheared and altered gabbro. A 1.2 metre chip channel from the northeast returned assay results of 4.2 g/t gold, with platinum and palladium values up to 0.28 g/t.
With the completion of the IPO financing process, Heritage Mining is now engaged in the preparation and planning of implementing its exploration strategy. The company will be conducting an airborne EM and mag geophysical survey, initiating ground EM, mag and I.P. geophysics, as well as line-cutting. The exploration team will also conduct geological evaluations with prospecting and mapping, geochemical analysis, till and strip sampling. Data will be reviewed and evaluated to determine the optimal high-priority targets in preparation for a 40,000 metre diamond drilling program.
With 18.2 million shares outstanding, a tight capital structure, and a small market capitalization of $4.15 million, HML represents a new name and an opportunity for junior gold investors to participate in a project in northwestern Ontario’s prolific Abitibi Greenstone Belt, adjacent to Treasury Metals’ Goliath Gold Project, whose mineralized trend extends well into HML’s property. Any significant exploration success on the Drayton-Black Lake Project would not only add value to the project, but could eventually lead to a potential joint-venture or takeover opportunity for Heritage Mining’s shareholders.
FULL DISCLOSURE: Heritage Mining is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Heritage Mining on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
