Cassiar Gold (GLDC.V) has released an updated resource estimate on its flagship Taurus project in British Columbia. The updated pit-constrained resource now hosts 410,000 ounces in the indicated resource category at an average grade of 1.43 g/t and an additional 1.93 million ounces of gold at an average grade of 0.95 g/t in the inferred resource category. As the gold price has increased, the company used a lower cutoff grade of 0.4 g/t versus the 0.5 g/t that was used in the previous resource calculation. Although the maximum pit depth is 307 meters, about 81% of the ounces are located within 100 meters from surface. As the table below shows, even if Cassiar would use a higher cutoff grade of 0.70 g/t, the project would still host almost 1.7 million ounces of gold across all categories.
The company also provided a sensitivity analysis which uses the same 0.5 g/t cutoff grade as last time, and in that scenario, the resource hosts 380,000 ounces of gold in the indicated resource category as well as 1.7 million ounces in the inferred category; and that’s a strong increase from the 1.4 million ounce all-inferred resource estimate from 2022.
Cassiar Gold thinks the project has the potential to be expanded in most directions as the previous exploration programs have detected areas of mineralization beyond the current pit shell.
The company is currently raising C$5M in flow-through funds on the back of the resource update. The flow-through units are priced at C$0.36 and contain a flow-through share and a full warrant with an exercise price of C$0.50, valid for a period of two years. The back-end of the flow-through financing is priced at C$0.25.
Disclosure: The author has no position in Cassiar Gold. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
