McWatters Mines acquired two major assets in the Val-d’Or/Malartic area from Placer Dome - the Sigma Mine and the Kiena Mine Complex.
In 2004 McWatters went bankrupt - all their land became open for acquisition.
Osisko Mining Corp. (TSX: T.OSK, Stock Forum) purchased the Canadian Malartic Project, Wesdome Gold Mines Ltd. (TSX: T.WDO, Stock Forum) purchased the Kiena Mine Complex, and NioGold Mining Corp. (TSX: V.NOX, Stock Forum) purchased (for $10,000 and right in the heart of the Val-d’Or/Malartic mining camp), three large claim blocks that were relatively underexplored compared to the rest of the area.
Then, in early 2006, NioGold signed a deal with Aur Resources to acquire the other 50% interest in Marban it did not already own, and 100% interest in two other properties (First Canadian and Norlartic). Between these three properties (which include three past producing mines) there was 585,000 ounces of past gold production and a lot of upside according to NOX’s due diligence.
Over a period of several years NioGold has managed to consolidate a large 130 square kilometer land package right in the heart of the Malartic and Val-d’Or gold mining camps – an impressive feat. Since the 1930s the Cadillac, Malartic, and Val d’Or (French for - “valley of gold”) camps have produced upwards of 45 million ounces of gold.
NioGold’s Malartic-Val d’Or properties are divided into six projects: the Marban Block (Aurizon JV), the Malartic Block, the Malartic H, Val-d’Or, Héva and Siscoe East.
There are a number of important facts to understand about NioGold’s projects:
- NioGold has one of the largest land holdings (130 square kilometers) in the Malartic/Val d’Or mining camps. The properties are located along the Trans Canada Highway 117 - a stretch of pavement called the Golden Highway as it links a large number of current and historic gold mines, gold development projects and gold milling facilities. In total 45 million ounces of gold has already been produced along this section of the highway and there are known to be a further 15 million ounces of reserves.
- The Marban block contains 3 previously producing gold mines, and NioGold has delineated 959,000 oz gold as of a 43-101 report in January 2010. Since then, Aurizon Mines is earning-in to a potential joint venture (JV) by spending $20,000,000 on drilling and then is required to make a resource payment estimated at $35,000,000+ to become a 50/50 partner on this 10% part of NioGold’s properties. An additional 84,000 meters have been drilled on these deposits in the past 2 years and an updated 43-101 resource report is pending.
- The contiguous Marban Block, Malartic H and the Malartic Block are on a major gold mineralized structural zone known as the Norbenite-Marbanite. To date NioGold Mining has only explored a small portion of their 20 kilometer piece of the Norbenite-Marbanite fault zone.
- The Malartic Block Property covers a seven kilometer stretch of land that Niogold feels is under-explored plus another five kilometer stretch of unexplored land adjacent to the past producing Camflo Mine. In 2006 NioGold completed geophysical surveys and drilled eleven widely spaced holes testing the sediment/volcanic contact. The drilling uncovered high level intrusives and significant alteration similar to those associated with gold mineralization at the Malartic camp. Recent drilling has discovered the Ludovick zone with 8.16 g/t gold over 3.1 meters and 3.6 g/t gold over 6.5 meters. More assay results are pending.
- Northwest of the Marban Block, Niogold owns the Heva Property. The Heva Property is on trend with the Marban Block
- NOX is in a proven and historic gold camp with existing excellent infrastructure - full service towns, nearby access to road, rail, power, water, telecommunications, gold milling facilities and an experienced labor force.
- The properties are in Quebec and Quebec is consistently rated among the best places in the world for mining investment by the Fraser Institute, an independent research organization.
- NioGold receives up to 35% in tax credits for work performed in the field; this allows the company to use tax credits for refinancing with no dilution to the share structure.
- NioGold has attracted the attention of a deep pocketed partner committed to building shareholder value, for both companies, through the drill bit.
- NOX’s 100% owned Malartic block, which adjoins the Marban Block to the West, is on trend with Marban and is easily three to four times the size of Marban.
- Management is highly skilled, well known and respected industry veterans.
Malartic Block
Niogold has committed $2.5 million to exploring it’s 100% owned Malartic Block. The Malartic is between Osisko Resources 11 million ounce gold resource and NOX’s Marban Block which is host to a NI 43-101 compliant resource estimate of Indicated resources of 598,000 ounces gold in addition to Inferred resources of 361,000 ounces gold.
NioGold started drilling in the southern portion of its Malartic Block (next to the boundary with Osisko) in April 2011 and discovered two major shear zones in the sediments. The Ludovick Zone is 8-10 meters wide with lots of sulfides, is recognized over 200 meters and in some holes has visible gold. One intersection had 3.6 grams gold over 6.5 meters. NioGold has plans to try and extend the Ludovick laterally and at depth because it’s open in all directions.
To view the rest of this article, please click on the link:
https://aheadoftheherd.com/Newsletter/2012/NioGold-Mining.htm