Heritage Mining: Advancing a Gold Project in Northern Ontario
Heritage Mining (CSE: HML), is a newly listed Vancouver-based junior exploration company developing its flagship 14,221 hectare Drayton-Black Lake project in northwestern Ontario. The Drayton-Black Lake project is located on a trend and adjacent to the Treasury Metals Inc. (TSX: TML) Goliath Gold Project, which has measured and indicated resources of 1,124,000 ounces of gold and inferred resources of 74,800 ounces of gold.
The northeast portion of the Goliath Axis spans the Drayton-Black Lake property, which itself has had 100 years of exploration history for high-grade gold and copper. The area has well-established infrastructure that has been built to support all aspects of exploration and mining, including direct road access to the Drayton-Black Lake property. Major projects in the district include the New Gold (TSX: NGD) the Rainy River gold-silver mine which went into production in 2013, and Hammond Reef, an open pit deposit with estimated reserves of 3.3 million ounces of gold which Agnico Eagle Mines Ltd. (TSX: AEM) getting ready for production.
Heritage Mining is well capitalized due to the recent completion of its $2.63 million IPO financing, which consisted of both common stock and flow-through units. The company issued 7,973,581 units at $0.25 each and 2,320,210 flow-through units at $0.275 each. Each unit consists of one common share and one common share purchase warrant exercisable at $0.40 at any time before August 25, 2025. Heritage Mining has approximately $3 million in cash, which will be used to carry out its exploration activities in order to advance the Drayton-Black Lake project. Project.
There have been over 100 years of exploration activity on the Drayton-Black Lake property, but much of the historical exploration data that has been accumulated over this period has only recently been compiled digitally in an effective usable form. The main types of underlying mineralization are orogenic vein gold, volcanogenic massive sulphides (VMS) and base metals. Over 176 holes have been drilled on the property, which have identified four priority zones of high-grade gold mineralization:
- Moretti Space consists of 18 prospects with polymetallic veins and stockworks. Trenching, drilling and mapping have identified high grade visible gold within the quartz veins. The samples returned values of up to 1,212 g/t gold. The host structure is estimated to be 10-30 meters wide, with gold and copper anomalies over a strike length of 6 km. There are multiple veins on a northeast mineralized trend with gold found in quartz-carbonate veins and stockworks. Only 20 shallow, widely spaced holes were drilled, with open mineralization along strike and at depth.
- Split lake area has several gold veins, with a 1991 result showing 0.7 m of 14.8 g/t gold. Trenching, drilling and mapping have identified visible gold in quartz veins similar in style to the Goliath deposit.
- Pit area samples returned up to 318 g/t gold, including an 2005 result of 2 meters of 14.5 g/t gold. In 1961 Rio Tinto dug two trenches and channeled through mineralized zones, showing sheared andesite with chalcopyrite and minor pyrite along the length of the trenches. Chalcopyrite, a form of copper, is found in the veins. Highlights of the trenching program included 1.0 meters of 14.3 g/t gold and the best copper sample was 3.0 meters of 1.85% copper. Drilling highlights included 13.5 meters of 0.57% copper and 1.24 g/t gold.
- West area has several gold showings, including samples with results up to 150.86 g/t gold
Heritage Mining also has its exploration-stage Contact Bay project, a 4,700-hectare polymetallic land package located southwest of the Goliath Gold project and adjacent to the property. Pure Gold (TSXV: PGM) option of Kinross Gold (TSX:K) subsidiary, KG Exploration. The highly prospective Contact Bay property hosts a number of zones of high grade gold, copper, nickel, platinum and palladium mineralization.
Previous historic drilling has identified three high-priority, high-grade targets. The underlying geology consists of Archean orogenic vein gold, VMS and magmatic base metal mineralization systems, with magmatic shear hosted precious minerals and base metal deposits, veins and stockworks. A rock sample taken from the northeast zone returned assay results of 0.40 g/t gold and 0.7% copper, which were found in sheared and altered gabbro. A 1.2 meter northeast chip channel returned assay results of 4.2 g/t gold, with platinum and palladium values up to 0.28 g/t.
With the completion of the IPO financing process, Heritage Mining is now engaged in preparing and planning for the implementation of its exploration strategy. The company will conduct an airborne EM and magnetic geophysical survey, initiating ground-based EM, magnetic and IP geophysics, as well as line cutting. The exploration team will also carry out geological evaluations with prospecting and mapping, geochemical analysis, till and band sampling. The data will be reviewed and evaluated to determine the optimal priority targets for a 40,000 meter diamond drill program.
With 18.2 million shares outstanding, a tight capital structure and a small market capitalization of $4.15 million, HML represents a new name and an opportunity for junior gold investors to participate in a project in the prolific Abitibi greenstone belt in northwestern Ontario adjacent to Treasury Metals’ Goliath gold project, the mineralized trend of which extends well into the HML property. Any significant exploration success on the Drayton-Black Lake project would not only add value to the project, but could potentially lead to a potential joint venture or takeover opportunity for Heritage Mining shareholders.
FULL DISCLOSURE: Heritage Mining is a client of Canacom Group, the parent company of The Deep Dive. The author has been paid to cover Heritage Mining on The Deep Dive, with The Deep Dive having full editorial control. Not a buy or sell recommendation. Always do additional research and consult a professional before purchasing a title.
As founder of The deep dive, Jay focuses on all aspects of the business. This includes operations, as well as serving as lead writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay writes freelance for a number of companies and has been published on Stockhouse.com and Canna Investor Magazine among others.