Probe ups Quebec gold resources by 30%, shares advance

Probe Gold Inc. [PRB-TSXV, PROBF-OTCQB] has released an updated mineral resource estimate for its Val-d’Or project properties in Quebec.

The company said total gold mineral resources stand at 3.8 million ounces in the measured and indicated category and 1.41 million ounces in the inferred category along all trends and deposits.

The company attributed the increase to an aggressive drilling program that converted over 76% of Probe’s gold resources to the measured and indicated categories while expanding the resources in the Monique deposit by over one million ounces. The company has said it will update its 2021 preliminary economic assessment (PEA) to reflect the increase in estimated resources.

Probe shares advanced on the news, rising 0.61% or $0.01 to $1.64. The shares are currently trading in a 52-week range of $1.90 and $1.09.

Probe’s asset portfolio includes the Novador project, a district-scale land package consisting of 436 square kilometres. It represents one of the largest land holdings in the Val-d’Or mining camp. A 2021 preliminary economic assessment envisages annual gold production of 207,000 ounces over a 12.5-year life span. The initial capital expenditure for the project is pegged at $353 million.

Novador project gold mineral resources, slated for development, currently stand at 3.8 million ounces, measured and indicated and 1.17 million ounces of inferred material along the Monique, Pascalis, and Courvan gold trends deposits. That amounts to a 30% increase from an earlier estimate released in 2021.

Mineral resources at other Val-d’Or properties now stand at 239,200 ounces inferred, including the Lapaska, and Sleepy deposits.

The company said Novador, Monique, and Pascalis gold trend deposits represent 83% of the pit-constrained resource estimate.

“As a result of the successful expansion drilling program and the increased Monique mineral resources, we will be updating the 2021 PEA in order to better capture this growth and value in a new development model,” said Probe President and CEO David Palmer.

Palmer is an award-winning geologist with 25 years of management and exploration experience in the Canadian and international mining industry. He was CEO of Probe’s predecessor company when the discovery of the multi-million-ounce Borden Gold deposit led to the sale of Probe to Goldcorp in 2015 for $526 million.

Meanwhile, drills are currently active on a significant expansion and exploration program at Novador with drilling increased by 15,000 metres to a total of 68,000 metres.

Probe recently increased its landholdings in the Val-d’Or area to 600 square kilometres by striking a deal with Monarch Mining Corp.’s [GBAR-TSX]  to acquire 100% interest in the Croinor Gold property. Croinor is located immediately to the east of Probe’s Novador project and hosts a high-grade measured and indicated gold resource of 187,900 ounces of gold at 6.47 g/t and an inferred resource of 39,800 ounces of gold at 6.19 g/t.

The property falls within the scope of the Novador Development project and has the potential to contribute to its central mill design. Probe agreed to pay $4.5 million in cash and shares for the asset.

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