Canamex Resources Corp. (TSX: V.CSQ, Stock Forum) shares were active Friday as investors continue to assess an initial resource estimate at the company’s Bruner gold project in Nevada.
The stock traded between 11 cents and 11.5 cents, leaving a market cap of 14.2 million, based on 129.3 million shares outstanding. The 52-week range is 25 cents and 7.5 cents.
The Bruner project covers 3,520 acres and is located in central Nevada near the Paradise Peak, Round Mountain and Rawhide Mines, which together have produced over 15 million ounces of gold. Historic production at Bruner includes approximately 100,000 ounces of gold at 19.2 grams gold per tonne.
The company’s two largest shareholders are strategic investors Gold Resource (NYSE: GORO, Stock Forum)
and Hecla Mining Co. (NYSE: HL, Stock Forum) .
On Thursday, the company said the Bruner project is estimated to contain an indicated mineral resource of 10.3 million tonnes at an average grade of 0.72 grams per tonne. That works out to 239,000 ounces in a region known as the Historic Resource Area (HRA) and the Penelas zones.
The company also announced an inferred mineral resource of 2.45 million tonnes at an average grade of 0.77 grams per tonne gold, containing 61,000 ounces of gold in the HRA, Penelas and Paymaster zones.
In order to establish a reasonable prospect of economic extraction in an open pit/heap-leach context, the mineral resources outlined above are reported within a constraining pit, generated at a gold price of US$1,350 per ounce gold, a silver price of US$15 per ounce.
It also takes into account metallurgical recoveries of 90% for gold and 10% for silver, the company said.
The estimated mining cost is US$2.40 per tonne of material mined, and process and G&A costs of US$4.67 per-tonne of material processed, the company said in a press release.
“We are very pleased to be able to report our initial resource estimate for the Bruner property, including the HRA zone, Penelas zone and new Paymaster zone,’’ said Canamex President Greg Hahn.
“We are excited by the evolving picture of the Penelas zone, about which little was previously known due to few historic drill holes and the lack of surface expression,’’ he said.
“This resource estimate and the enhanced understanding gained in its development will be the foundation for a continued exploration program designed to expand in open directions the three deposits identified and to upgrade the inferred resource to the level of indicated resource.’’
The company said it plans to file a technical report on SEDAR within 45 days of the resource estimate announcement.