Galleon Gold is adding ounces to a proposed mine project, west of Timmins.
The Toronto exploration and mine developer released an updated gold resource estimate for a potential open-pit and underground mine at its West Cache project.
West Cache is considered an advanced-stage project that Galleon believes has open-ended potential with gold mineralization being found in all directions and deeper down.
The new indicated resource is 657,000 ounces of gold, at an average grade of 1.52 grams per tonne (g/t). The inferred resource of 640,000 ounces at a grade of 1.71 g/t. The estimate was based on the results of 557 holes and 210,000 metres of drilling.
This the gold resources that would be mined inside two proposed pits, dubbed East and West, combined with a new discovery made last year, Zone #9, to the south. Gold has also been found beneath the East Pit.
These new numbers will be folded into a preliminary economic assessment (PEA) for West Cache, due out this fall.
The 3,765-hectare property is 13 kilometres west of the city and seven kilometres from Pan American Silver's Timmins West Mine. Highway 101 runs across the property. The entire area has been well-explored ground since the 1920s.
In a news release, company president R. David Russell said the results from their drill campaign shows the potential to "generate value in the Timmins camp."
"The PEA, which is currently underway, will build upon the West Cache story and outline the design plan for a bulk sample of our Zone #9 high grade mineralized shoot along with stages of development for open pit and additional underground mining.
"Work will also continue to optimize our operational targets, including mining methods, toll processing availability and throughput. Our ultimate goal is to stand shoulder to shoulder with other mine operators in the Timmins camp," Russell said.
The plan next year is to build an underground ramp to take a bulk sample.
The company has been conducting metallurgical studies with samples to evaluate the gold recoveries and continues to explore the property as well as consult with area First Nations, carry out environmental base line studies, and work on its permitting applications for a mining operation.
According to Galleon's project timetable a next-stage prefeasibility study begins in late 2023.