Newmont (NYSE: NEM) may soon be regretting the sale of their Musselwhite Mine to Orla Mining (TSX: OLA) earlier this year. Orla this morning is reporting that is has discovered a potential two kilometre extension of the main gold trend at the mine following exploratory drilling.
Deep drilling has reportedly encountered high grade gold mineralization 1.6 kilometres along strike from current operations via directional drilling, while favourable geology is believed to extend for an additional 400 metres. Surface drilling within 10 kilometres of the on site mill meanwhile has identified multiple targets for potential open pit satellite deposits.
Highlights from the directional drill results include:
- 25-NSD01-001: 8.04 g/t gold over 0.7 metres from a depth of 1974.8 metres
- And 12.6 g/t gold over 0.3 metres from a depth of 1992.3 metres
- 25-NSD01-002W: 4.18 g/t gold over 1.2 metres from a depth of 2026.3 metres
- Including 5.22 g/t gold over 0.7 metres
- 25-NSD02-001: 15.1 g/t gold over 4.1 metres from a depth of 2096.8 metres
Highlights from underground drilling include:
- 25-RDW-024: 12.2 g/t gold over 6.2 metres from a depth of 264.0 metres
- 25-RDW-027: 6.89 g/t gold over 15.7 metres from a depth of 237.3 metres
- 25-LNX-002: 15.8 g/t gold over 13.0 metres from a depth of 214.0 metres
- 25-LNX-003: 27.2 g/t gold over 10.1 metres from a depth of 251.9 metres
- 25-PQE-011: 67.8 g/t gold over 1.0 metre from a depth of 238.0 metres
READ: Orla Mining To Purchase Musselwhite Gold Mine For $810 Million In Cash
Highlights from near mine surface drilling include:
- 25-CMP-001: 2.59 g/t gold over 2.7 metres from a depth of 9.20 metres at Camp Bay
- 25-CMP-002: 0.74 g/t gold over 14.7 metres from a depth of 18.70 metres at Camp Bay
- 25-BOT-001: 0.58 g/t gold over 14.6 metres from a depth of 150.7 metres at Bottenfield
- 25-BOT-003: 0.46 g/t gold over 12.0 metres from a depth of 223.0 metres at Bottenfield
- 25-KAZ-003: 1.37 g/t gold over 4.4 metres from a depth of 26.7 metres at Karl Zeemal
“These results validate our investment thesis for Musselwhite – this is a rare, high-quality asset with the geological continuity to support decades of additional production. We’ve confirmed high-grade mineralization extends far beyond current resources, positioning us for significant resource growth,” commented Sylvain Guerard, SVP of Exploration for Orla Mining.
Exploration in 2025 consists of a $25 million program, which has seen 11,000 metres dedicated to test mine trend extensions, 38,000 metres earmarked for underground drilling to replace and expand reserves, and 6,500 metres of drilling to identify potential satellite deposits. The program is an estimated 65% complete so far to date.
Orla Mining last traded at $14.31 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
