Does Mistango have Macassa potential?

Let's look at the similarities.

As we all know ‘area plays’ are a big part of many successful (and unsuccessful) new discoveries in the mining industry.  Anywhere there is a good discovery, companies start to gobble up land for tens, if not hundreds of kilometres in all directions. 

Given how gold deposits are formed, this is very often a solid strategy.  The definition of an area play is : “An area play is a region that has become a temporary hot zone for property acquisition and exploration because of a new discovery.” --

Reference:   https://resourceopportunities.com/geology-processes-explained/

Now, I have seen some posters refer to Mistango’s land package as an ‘area play’ (I believe I have done the same.) While the expression "area play" can be very broad, I have to point out what I consider a very significant difference. Most of Mistango’s land package is not 10 or 20 or 200 km away from Macassa $KL, like your typical area play. This is land that is JOINED to Macassa, in fact an extension of the Macassa property. They share an actual border, a man made line on a map or a stake in the ground. You could literally have one foot on Macassa property and the other on Mistango’s. So I don’t see this as a typical ‘area play.'

Furthermore;, the number one, most important geological feature responsible for the massive high grade gold deposits at Macassa, is the faults. More importantly, the The Main Break, and the Amalgamated Break -- both of which converge and run right through most of Mistango’s land. The Cadillac-Larder Break and The Kirana Break also run through Mistango's property.                                                        
https://cdn.ceo.ca/1fa14bf-MISsharedfaults.pdf


The following is from KL’s website :

“Current underground exploration programs at Macassa are focused on underground drilling and drifting (on the 5300 Level) and include the delineation and extension of the SMC to the east, west and to depth, testing of the Amalgamated Break from the 5300, 5600 and 5700 levels and testing of the Main Break near the former Kirkland Minerals property between the 600 and 6500 levels, proximal to the location of the new #4 shaft.”

Now it doesn't take a Geo, or an Engineer, to conclude that when land extends from one of the highest grade mines in the world, and hosts these four main faults, that it would be a good place to drill for gold.

Kirkland Lake Gold has quite clearly demonstrated this. In fact, there are 7 historic mines (5 owned by KL) adjacent to Macassa. And then there is Mistango (not “adjacent” to) but actually right beside, and directly extending to the west of Macassa.

It seems to me that you could not ask for a better address to sink a few dozen drills into. The Macassa mine, and land, has also shown prolific shallow high grade gold, so much so, that in their corporate presentation they actually have to include two separate numbers of ozs for Macassa. One referred to as “Macassa” and the other “Macassa Near Surface”. This is done for not only the Proven and probable categories, but also for the Measured and Indicated & Inferred categories as well.

Translation: this ore-body has a large amount of both shallow and deep high-grade deposits . This shallow gold is no doubt a very big part of their incredibly low AISC of $695 / oz for 2019. - As Eric Sprott is fond of saying, ‘some ozs are much more valuable than others’, and shallow high grade ounces are as valuable as they get.

Now, look at the limited exploration that has been done on Mistango’s Eby-Balwin property. Is it a coincidence that a historic, 4,600 tonne production had the same avg grade of Macassa @ 21.9 g/t? It could be, but I highly doubt it.  That, in itself, speaks volumes.

Perhaps even the best part of this, was that this production was also taken at a VERY shallow depth, (approx 50 m) - WOW - and the historic shaft only goes to 127 m. It is easy to see the similarities between the two with regard to very shallow high grade.

Even KL’s 2020 exploration targets (from their 2020 presentation) include moving west along The Amalgamated Break toward Mistango’s newly acquired property: “Key exploration targets: SMC (East and West) Amalgamated Break –Near surface zones (potential new source of production) Amalgamated Break –At depth Main/’04 Break.” 

With the acquisition of  Mistango’s newly acquired Teck-Kirkland property, their March 26, 2020, press release states:

The Teck-Kirkland property encompasses the western boundary of Kirkland Lake Gold (KL) and includes claims on the Amalgamated, Main, Cadillac and Kirana Faults. This expansion of Mistango’s Eby-Baldwin brings the property to a total of 4,300 hectares making the Company one of the largest landowners in the Kirkland Lake camp.

“This acquisition establishes Mistango as a major land holder in Kirkland Lake, particularly along with western extension of the Amalgamated and Main breaks which hosts excellent geology but has seen substantially less exploration due to its fragmented ownership. This Teck-Kirkland acquisition gives us additional coverage along the intersections of the major breaks in the area including the Amalgamated, Main, Cadillac and Kirana faults. The focus of our exploration going forward will be where these major structures crosscut,” said Stephen Stewart, Mistango’s Director.

You could ask, what's to the east of the Macassa property? Is there an extension of these faults? Did the gold travel that far?

To find your answer, all you have to do is look at Agnico Eagle $AEM, and you will find the answer is yes, yes and yes.


On February 28, 2020, Eric Sprott took a position in Mistango to the tune of $2,000,000, giving him 14% of the company. We all know his connection to Kirkland Lake, and that bodes well for the future of Mistango.   He also mentioned Mistango for the first time on his May 1st Weekly Wrap (Last Friday) and I anticipate many more mentions from him in the future.   https://soundcloud.com/sprottmoney/sprott-money-news-weekly-wrap-up-5120  - (at the 18 minute mark) 

With a successful drill campaign that proves continuation of the gold deposit along the shared faults, I see Mistango being a top tier target to be purchased by KL, or at the very least enter into a Joint Venture with them, as KL’s Geo’s are without doubt the leading experts on the geology of this area.   (* I would love to hear from KL / AEM holders & BB posters as to their thoughts on this).

For those who like junior exploration plays, how could you not like the following:

1.  AAA Location


2. The convergence of major faults with proven gold
3. Eric Sprott involved
4. Kirkland lake Gold and Agnico Eagle's properties butting up against Mistango
5. Just over 100 million shares outstanding with Sprott and Orefinders $ORX owning 38% of them.
6. The first drill program taking place in 2020
7. The share price under .20
8. Upon successful drilling & confirmation of extension of orebody, a top tier target for JV or acquisition by KL or AEM

I obviously took a position here, and enjoy giving my analysis on companies I have taken a position in. I have done many NR write-ups on the Wallbridge Mining page $WM, where I entered at .12. This feels vry much like deja vu.

I have attached some references. As always, please do your own DD.



https://s23.q4cdn.com/685814098/files/doc_presentations/2020/02/BMOFEB232020BMO.pdf
https://741fb271-027a-4988-8005-c057e353cea7.filesusr.com/ugd/a90f5b_17a70d2992bf4059be0a883454c82f62.pdf
https://741fb271-027a-4988-8005-c057e353cea7.filesusr.com/ugd/a90f5b_88900ec735cb4b22981d13a61c140230.pdf
https://741fb271-027a-4988-8005-c057e353cea7.filesusr.com/ugd/a90f5b_04c26d167cf64b57a464bb23af19ecbe.pdf
https://www.agnicoeagle.com/English/exploration/exploration-projects/Kirkland-Lake-project/default.aspx