Canadian Exploration Snapshot: Eight companies to watch

From the Canadian Malartic mine in Quebec to the Diavik diamond mine in the Northwest Territories, Canada is home to some of the world’s largest mining operations and most valuable resources. Here are eight companies advancing the next generation of projects in the Great White North.

American Eagle Gold

Toronto-based explorer, American Eagle Gold (TSXV: AE), is focused on advancing its flagship NAK copper-gold project in central British Columbia.

The company shared results from its 2022 drilling program in a Jan. 25 news release. Highlights include 527 metres grading 0.11 gram gold per tonne, 1.55 grams silver, and 0.32% copper (0.45% copper equivalent) starting from 20.2 metres in drill hole NAK22-04. The intercept included a shorter 88.8-metre section grading 0.27 gram gold, 4.5 grams silver, and 0.69% copper (0.98% copper equivalent) from 439.2 metres.

“This fourth drill hole is our best intercept to date [at NAK] and encountered a new higher-grade copper-rich zone 500 metres from our discovery hole,” CEO Anthony Moreau said in a news release.

He added that holes NAK22-06 and 07 “successfully intersected the continuation of the same zone at depth and hit similar mineralization.”

Located 85 km northeast of Smithers, B.C. in the Babine copper-gold porphyry district, NAK has a 730-metre strike length and comprises five mineral claims.

The property was first explored in the 1960s and has changed hands several times. However, past drilling was shallow and American Eagle believes there is high potential for a new discovery at NAK.

In December, the company closed an exploration option agreement with Orefinders Resources (TSXV: ORX), which acquired a 20% interest in NAK after completing $1 million in exploration work obligations. Orefinders completed the work on Dec. 21, 2022, which included drilling, geophysics, reports and sampling conducted mainly by third-party contractors.

American Eagle is planning a follow-up 2023 drilling program that will focus on further delineating the near-surface high-grade zones to show additional continuity and finding the potential source of the high-grade bornite mineralized dykes encountered in drilling last year.

American Eagle Gold has a market capitalization of $6.5 million.

Benz Mining

Benz Mining (TSXV: BZ; ASX: BNZ) is working to expand the resource at its Eastmain project in northwestern Quebec with the goal of establishing a multi-million-ounce, high-grade gold deposit. Consisting of 152 mineral claims, the 80-sq.-km property is located 800 km north of Montreal in the Upper Eastmain greenstone belt.

Past drill highlights from the project’s E zone include hole EM21-229, which cut 1 metre at 365.5 grams gold per tonne from 81 metres, the highest grade to date for the company, it said in a Jun. 7, 2022 news release. Another hole, EM21-230 in the D zone cut 6.6 metres at 9.8 grams gold from 643.9 metres, including 1.1 metres at 36.7 grams; and 6.2 metres at 9.7 grams gold from 674.3 metres including 1 metre at 23.4 grams gold in EM21-182 in D zone.

Eastmain is a past-producing mine that was originally discovered by Placer Development Ltd. in 1969. The mine produced 40,000 oz. at an average grade of 10.58 grams gold per tonne from 1994 to 1995.

Benz signed an option agreement in 2019 to acquire a 100% interest in the property. Eastmain hosts indicated resources of 899,000 tonnes grading 8.19 grams gold per tonne and 8 grams silver, and inferred resources of 579,000 tonnes grading 7.48 grams gold and 8.2 grams silver using a cut-off grade of 2.5 grams gold, according to a 2019 estimate.

Benz also owns Ruby Hill West, a lithium outcrop located 25 km west of Eastmain and Windy Mountain, a sulphide deposit adjacent to Ruby Hill West.

Benz announced in October that it had identified 12 new pegmatite zones at Ruby Hill. High-grade lithium mineralization was previously confirmed at this discovery after hole RHW22-006 returned 1.01% lithium oxide (Li₂O) over 26.4 metres.

With a fully funded drilling program, the company is continuing to explore for gold and critical minerals.

Benz Mining has a market capitalization of $52 million.

EV Nickel

Toronto-based EV Nickel (TSXV: EVNI) is focused on developing zero-carbon nickel production at its Shaw Dome project located 25 km southeast of Timmins, Ont.

On Feb. 28, the company announced an initial resource estimate for the A zone, part of the Carman-Langmuir (CarLang) property situated in the northeast area of the project. It pegged indicated resources at 510 million tonnes grading 0.25% nickel and 0.01 parts per million (ppm) cobalt for 2.8 billion lb. of contained nickel. Inferred resources add 497 million tonnes grading 0.23% nickel and 0.01 ppm cobalt for 2.6 billion tonnes of contained nickel.

The contained nickel is the approximate amount that would be needed in 34 million electric vehicles, the company notes.

EV Nickel acquired the property in April 2022 and has since drilled 8,295 metres across 28 holes.

Assay results from the A zone include hole EV22-47, which cut 297.5 metres grading 0.28% nickel starting from 2.5 metres and hole EV2248, which cut 234 metres grading 0.27% nickel from 1 metre.

With a strike length of 1.6 km and a width between 350 and 550 metres, the A zone represents just the first 20% of the 10-km CarLang area trend.

“If we consider the full potential of the CarLang trend, this is the type of generational opportunity… that the world needs for a supply of Clean Nickel to help fuel the energy transition,” said CEO and president Sean Samson, referring to the company’s research and development into zero-carbon nickel production, for which it is seeking trademark status. The provincial government recently invested $500,000 in the company’s Clean Nickel strategy.

“We are excited to support emerging, innovative mining companies like EVNi that are at the forefront of what will be a robust, domestic supply chain for electric vehicle and battery production in the province,” said George Pirie, Ontario minister of mines, in a release in early March.

Shaw Dome also hosts the W4 nickel deposit, located south of CarLang. Results from the 2022 drill campaign included grades of 1.23% nickel over 20.6 metres and 0.9% nickel over 15.7 metres.

An updated resource for W4 is planned for later this year.

EV Nickel has a market capitalization of $8.2 million.

Fury Gold Mines

Fury Gold Mines (TSX: FURY; NYSE-AM: FURY) is advancing gold projects in Quebec and Nunavut.

In 2022, the company drilled more than 17,500 metres at its Eau Claire deposit, located about 800 km north of Montreal.

Fury Gold shared assay results from its Hinge target in a Jan. 23 news release. Hole 22EC-059, which was drilled oblique to the other holes at a 150-degree angle, returned 22.77 grams gold per tonne over 1.5 metres from 181.5 metres and 15.3 grams gold over 1.5 metres from 380 metres.

All 11 holes drilled to date at Hinge have a hit ratio of over 80% above the underground cut-off grade of 2.5 grams gold per tonne.

These results confirm that Eau Claire “is open for significant expansion,” said CEO Tim Clark in a release. More specifically, the mineralized footprint has been extended at Hinge, the Gap Zone, and the eastern expansion. In addition, substantial gold grades were intercepted at the Percival Main zone, located 14 km from Eau Claire.

Eau Claire, which covers 240 sq. km in the James Bay region of Quebec, hosts open pit measured and indicated resources totalling 1.2 million tonnes grading 5.86 grams gold per tonne (228,000 oz. contained) and inferred resources of 43,000 tonnes grading 5.06 grams gold (7,000 oz. contained) according to a February 2018 estimate.

Total open pit and underground resources are 808,000 oz. gold in the measured and indicated category (3.7 million tonnes grading 6.65 grams gold) and 458,000 oz. gold inferred (1.8 million tonnes grading 7.48 grams gold). Open pit resources were calculated using a 0.5 gram gold per tonne cutoff grade and underground using a 3 grams gold cutoff grade.

Fury also owns Committee Bay, an advanced exploration-stage project in the Kitikmeot Region of Nunavut and Éléonore South, a joint venture with Newmont (NYSE: NEM; TSX: NGT), which owns 49.98% of the project located 5 km south of its Éléonore mine in Quebec.

Fury Gold’s 2023 exploration program will include testing of nine discrete gold anomalies at Éléonore South that were found in 2021. 

The company also holds a 23.5% interest in Dolly Varden Silver (TSXV: DV), which acquired 100% of Fury’s Homestake Ridge silver project in British Columbia’s Golden Triangle back in 2021.

Fury Gold Mines has a market capitalization of $106 million.

Giga Metals

Giga Metals (TSXV: GIGA) is working on developing the world’s first carbon-neutral nickel mine. With a focus on battery metals, the junior is advancing its Turnagain nickel and cobalt project in north-central British Columbia in a joint venture with Mitsubishi Corp.

Last year, the two companies formed the joint venture Hard Creek Nickel Corp. in which Giga has an 85% interest and Mitsubishi 15%.

Located about 1,350 km northwest of Vancouver, where the company is headquartered, Turnagain is one of the largest undeveloped sulphide nickel deposits in the world. It hosts measured and indicated resources totalling 1.5 million tonnes grading 0.2% nickel and 0.013% cobalt for 7 billion lb. contained nickel and 433 million lb. cobalt. Inferred resources add 1.2 million tonnes grading 0.2% nickel and 0.012% cobalt for 5.5 billion lb. nickel and 325.3 million lb. cobalt.

In the wider Canadian context, while there are multiple nickel mines in Canada, the total production of refined nickel in the country in 2020 was only 124,000 tonnes, according to Natural Resources Canada. The global demand for the metal is projected to be 6.2 million tonnes by 2030, according to a September 2022 Reuters report.

In order to achieve its low-carbon goals, Giga plans to use hydroelectric power, and electric equipment (shovels, drills, and mine fleet) where possible. It also plans to sequester carbon through mineral carbonation.

Fleet electrification alone has the potential to reduce carbon emissions from 74,428 tonnes of carbon dioxide equivalent (tCO2e) to 23,080 tCO2e per year, according to an updated preliminary economic assessment (PEA) dated February 2021. The greenhouse gas reduction assumes that mining trucks and loaders would run on hydrogen and the support fleet would be fully battery electric.

The PEA also outlines initial capital costs for Turnagain at $1 billion for a 37-year operation that would produce an average of 33,000 tonnes of nickel per year.

In addition, the deposit is the only large project to publish an engineering study modelling sale to battery-grade Class 1 nickel, according to Giga.

The company plans to complete a prefeasibility study in the second quarter of 2023.

Giga Metals has a market capitalization of $25.9 million.

Moneta Gold

Moneta Gold (TSX: ME; US-OTC: MEAUF) is focused on advancing its flagship Tower gold project, located 100 km east of Timmins, Ont. where the company is based.

On Mar. 2, Moneta announced assay results from 43 resource infill and step-out drill holes (totalling 10,057 metres) on the project’s 903 deposit. These holes were part of the company’s 76,000-metre drilling program completed in 2022.

Highlights include hole MGA22-097, which cut 24.8 metres grading 4.6 grams gold per tonne starting from 81.3 metres, including 14.9 metres grading 5.9 grams gold and 9 metres grading 8.04 grams gold.

The latest results “continue to confirm the continuity and extensions of the current mineral resource estimate at the Tower gold project…[and] support wide widths of mineralization containing significant gold grades within the economic open pit mineral resources at 903,” president and CEO Gary O’Connor said in a release.

The company announced an updated resource estimate last September. The project holds 150.6 million indicated tonnes grading 0.92 gram gold for 4.5 million contained ounces. Inferred resources add 235.6 million tonnes grading 1.09 grams gold for 8.3 million ounces.

“As we continue to grow, de-risk, and advance [Tower], we look forward to completing the current resource infill drill program in preparation of a mineral resource estimate update for the planned prefeasibility study,” O’Connor added.

Moneta’s portfolio consists of several other gold projects in the Timmins area, including North Tisdale, Nighthawk Lake, and Kayorum. Its base metals properties include Loveland Nickel located 45 km northwest of Timmins and Fripp, a copper property just south of the city. Additionally, Moneta owns 50% of its six Matheson area projects in a joint venture with Agnico Eagle Mines (TSX: AEM; NYSE: AEM).

Moneta Gold has a market capitalization of $141.7 million.

Scottie Resources

Vancouver-based Scottie Resources (TSXV: SCOT) has gold and copper-gold porphyry projects in northwestern British Columbia within a land package that spans more than 600 sq. km in the province’s Golden Triangle.

The company announced on Mar. 2 the final results from its 2022 drill program at the Blueberry zone on its Scottie gold mine project, a past producer located 32 km north of Stewart, B.C. and 27 km south of Newcrest Mining’s (TSX: NCM; ASX: NCM) Brucejack mine.

Highlights include hole SR22-217, which returned 17.4 grams gold per tonne over 6.6 metres starting from 375.9 metres, including 56.6 grams gold over 1.6 metres. Another hole, SR22-227, returned 2.88 grams gold over 21.8 metres, including 7.1 grams gold over 6.1 metres.

In January, the company announced the highest-grade intercept it has ever drilled. Hole SR22-156 cut 2.4 metres grading 194 grams gold from 148 metres downhole.

Scottie made significant advancements on the Blueberry zone in 2019 when it cut 34.8 metres grading 7.44 grams gold in a new splay zone off of the main Blueberry vein. The company found that this splay appears to be a major north-south mineralizing structure.

The target has a strike length of more than 1,550 metres and a depth of 400 metres.

“Drilling in 2023 will pick up where we left off last year and continue to expand the boundaries of the system, as well as follow up on numerous peripheral targets like the C and D zones,” said Thomas Mumford, vice-president exploration, in a release.

Between 1981 and 1985, the Scottie mine produced 95,426 oz. of gold at an average grade of 16.2 grams gold.

The company also owns the Cambria project located just outside of Stewart and the Georgia project, which surrounds the high-grade past-producing Georgia River mine and sits 16 km south of Stewart.

Scottie Resources has a market capitalization of $63.8 million.

York Harbour Metals

York Harbour Metals (TSXV: YORK; US-OTC: YORKF) is focused on advancing its flagship York Harbour copper-zinc-silver project in Newfoundland. Located 27 km west of Corner Brook, the project will undergo its fifth phase of drilling, the company announced in February.

York Harbour will test four targets — A zone North, K zone, Pinnacle Lake, and No. 4 Brook — across an area measuring 2.5 by 2 km.

With a lack of historic drill-testing in this area, York Harbour believes that there is a high potential for discovering new copper-zinc-silver mineralization. This would increase the footprint of high-grade volcanogenic massive sulphide (VMS) mineralization that occurs along an 18-km contact within the property.

York Harbour plans to drill between 13 and 20 holes for up to 3,500 metres of diamond drilling.

Highlights from the 2022 drill campaign shared in a Jan. 24 news release include hole YH22-107 in the A zone, which cut 8.9 metres grading 4.7 27% copper, 10.195% zinc, 22.69 grams silver per tonne, and 91.49 grams cobalt starting from 124.1 metres. This is the highest-grade copper-zinc intercept to date in this zone and it was intersected above and parallel to the old mine workings near where the historic mineralization was mined between 1897 and 1913, the company said in a release.

Additionally, hole YH22-072 cut 9.4 metres grading 3.325% copper, 0.078% zinc, 2.04 grams silver, and 244.8 grams cobalt from 181.9 metres, including a 2.1-metre interval grading 10.089% copper, 0.154% zinc, 5.21 grams silver, and 670.03 grams cobalt from 185.1 metres.

The Vancouver-based exploration and development company has the option to acquire 100% interest in the York Harbour mine property in exchange for completing $3 million worth of work by March 2024. The project is also subject to a 2% net smelter royalty.

York Harbour also owns the Phoenix gold project in Battle Mountain, Nev., and is in the process of acquiring Bottom Brook, a 130-sq.-km rare earth elements mineral property located in western Newfoundland. York Harbour Metals has a market capitalization of $35.6 million.