Radisson Mining releases “high-grade” drill results from O’Brien project

Radisson Mining (TSXV: RDS; US-OTC: RMRDF) has reported high-grade gold intercepts from its 100% owned O’Brien gold project located along the Larder-Lake-Cadillac Break in Quebec, between the mining towns of Rouyn-Noranda and Val-d’Or. 

Highlights from the latest batch of drill results included two metres grading 38.34 grams gold per tonne starting from 264 metres in hole OB-21-250 and 5.30 metres grading 5.20 grams gold per tonne starting from 356 metres in hole OB-21-186.  

The drill results are from an initial 5,700 metres of drilling to the west of the historic O’Brien mine, which produced some of the highest-grade gold in Quebec. Between 1926 and 1957 the mine churned out 587,121 oz. gold at average grades of about 15.25 grams gold per tonne.  

“We view the initial results as very significant,” Rahul Paul, the company’s CEO told the Northern Miner. “They reaffirm the upside potential from approximately 2.5 km of largely untested prospective strike along the prolific Larder-Lake-Cadillac break. With initial drilling significantly exceeding our expectations, our team will be working on generating new high-priority exploration targets.”  

The company has completed nearly 70% of a 130,000-metre drill program it began in August 2019.  

The O’Brien gold project hosts the New Alger and Kewagama deposits and the old O’Brien mine. Radisson has owned O’Brien and Kewagama since the early 2000s but acquired the adjacent New Alger property in August 2020. 

The 5,800-hectare O’Brien project is surrounded by producing gold mines. Agnico Eagle Mines’ (TSX: AEM; NYSE: AEM) La Ronde mine is 7 km from the project and Iamgold’s (TSX: IMG; NYSE: IAG) Westwood mine is 21 km away. 

Radisson has identified a 5-km strike length at the O’Brien project including over 2.5 km of strike to the east and west of the past-producing O’Brien mine. 

At a cut-off grade of 5 grams gold per tonne, the project has indicated resources of 949,700 tonnes grading 9.48 grams gold per tonne for 289,400 oz. gold. Inferred resources add 617,400 tonnes grading 7.31 grams gold per tonne for 145,000 ounces.  

 “There is a saying, the best place to find a mine is in the shadow of an old shaft. Well, our property hosts the old O’Brien mine,” said Paul. “Power-grid is directly onsite, we were recently able to bring potable water directly onsite from the Cadillac township and all workers can go home at night.”  

Paul says he has “no doubts” about a mine being built here in the future and aims to expand the project’s resources and de-risk the asset through “studies and permitting for future phase of growth.”  

At presstime, Radisson Mining was trading at 24¢ per share within a 52-week trading range of 18.5¢ and 34.5¢. The company has 274.1 million common shares outstanding for a market cap of $65.7 million.  

Ryan Hanley, a mining analyst who covers Radisson for Laurentian Bank Securities has a buy recommendation on the company and a target price of 55¢ per share. 

“As a reminder, almost all of the drilling completed to date has focused on three mineralized trends to the east, along a strike length of ~1,200 metres,” he wrote in a research note after the latest drill results were released.  

“This area represents only a portion of the 5,200 metres overall strike length that Radisson controls along the Cadillac break. As a result, we see the area to the west of the O’Brien mine where limited historical drilling has been completed, as well as additional targets farther to the east along strike, as blue-sky exploration potential.” 

Hanley also pointed out that the company has completed 115,900 metres of its 130,000 metre drill program, and said the remaining 14,000 metres will “focus on the first two mineralized trends” and should be completed during the first quarter of the year.