Maritime Resources (TSXV: MAE) has completed 37 holes of definition drilling within the conceptual open pit shell at its Hammerdown gold project in Newfoundland. The results confirm the interpretation and continuity of the mineralization for resource modelling, with the M08 zone returning the highest grades: 40 g/t gold over 2.1 metres, including 140.2 g/t over 0.2 metre in hole MP-21-188.
Hole MP-21-185 intersected 15 separate veins in the core of the deposit, including high grades of 12.7 g/t gold over 1.4 metres, 6.93 g/t over 2.3 metres and 6 g/t over 1.8 metre.
The company also plans to drill 150 metres from the eastern edge of Hammerdown where the deposit is open along strike and at depth. Drilling in the area last year returned 6.9 g/t gold over 6 metres, including 19.9 g/t and 24.1 g/t over 2 metres in hole GA-20-35.
The Hammerdown project is in the Baie Verte mining district of Newfoundland. A preliminary economic assessment produced in February 2020 gave the project an after-tax net present value (5% discount) of C$111.3 million and 50.5% internal rate of return using a gold price of $1,375 per oz. Preproduction capital requirements are C$57.2 million, and payback after taxes would occur over 1.5 years. The mine would produce 521,500 oz. of gold over its lifetime at an all-in sustaining cost of $938.80 per oz. gold.
The PEA estimated pit constrained measured and indicated resources for both the Hammerdown and Orion deposits using a 1 g/t cut-off of 1.7 million tonnes grading 6.65 g/t gold. The inferred resource at the same cut-off is 1.3 million tonnes grading 4.77 g/t gold.
There is also an underground component using a 2 g/t cut-off containing 1.2 million measured and indicated tonnes at 4.13 g/t gold, and 1.9 million inferred tonnes at 4.29 g/t gold.
The Hammerdown mine produced 291,400 oz. of gold between 2000 and 2004 when it was operated by Richmont Mines.
(This article first appeared in the Canadian Mining Journal)