Foundation Resources (FDN-V) and Alto Ventures (ATV-V) have released an initial compliant resource for their 60–40 split East Coldstream project in northwestern Ontario.
The resource outlines 3.5 million indicated tonnes grading 0.85 gram gold per tonne for 96,000 contained oz. gold, plus 30.5 million inferred tonnes grading 0.78 gram gold for a further 763,000 oz. gold.
Both categories are based on a cut-off of 0.4 gram gold and cover mineralization from surface to 400 metres depth, with data from 26,000 metres of drilling. The resource also assumes a 4-to-1 strip ratio, 95% gold recovery and operating costs of $14.3 per tonne at 10,000 tonnes per day.
The new resource is larger than the historic resource established by Noranda in the early 1990s that totalled 234,000 oz. gold, though the non-compliant resource was based on a grade of 1.43 grams gold. The joint venture added ounces with step-out drilling on the East, Main and North zones, and by including results from the Sanders zone, which was outside of Noranda’s land package.
The deposit is contained within two parallel gold horizons that are known to extend over a 1.5-km strike length.
The company reports that the deposit is hosted within mafic to intermediate metavolcanic rocks that have been intruded by bodies of quartz-feldspar porphyries and gabbro, with the rocks variably altered by the northeasterly striking shear zones.
The project falls within the western Shebandowan greenstone belt in the Wawa sub-province.
Foundation completed a 6,000-metre drill program to expand the East Coldstream deposit laterally and down-plunge. It also followed up on high-grade intercepts at the Iris Lake target 1.5 km north. Results from recent drilling at Iris Lake are not yet out, though earlier this year the company hit 11 metres grading 8.39 grams gold at the target.
Other targets on the property — including Iris Lake, Span Lake, the Goldie zone and Burchell West — were not incorporated into the resource estimate.
The 62-sq.-km Coldstream property is located 115 km west of Thunder Bay, just off the Trans-Canada Highway. The project is well served by rail and power lines.
Diversifying its holdings, Foundation entered into an option agreement in June for a 70% interest in the past-producing San Rafael gold-silver project in Mexico. To earn its share, the company has to pay US$400,000, issue 2.5 million shares and spend US$2 million on exploration over four years.
Foundation’s share price closed down half a penny at 18¢ on the latest news, while Alto’s was unchanged at 4¢. Foundation has 34.9 million shares out while Alto has just over 190 million.
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