Alamos Gold buys Trillium Mining for £14.4m
Alamos Gold has completed an agreement to acquire Trillium Mining Corporation for cash consideration of £14.4 million.
In a statement, Alamos says that Trillium holds a large land package comprising of 5,418 hectares directly adjacent to, and along strike, from the Island Gold Deposit within the Michipicoten Greenstone Belt.
The acquisition has significantly expanded Alamos’ land package around the Island Gold mine to 14,929 hectares, a 57 percent increase that includes significant exploration potential in proximity to existing high-grade mineral resources.
Based on the current geological interpretation of the E1E structure which hosts the Island Gold Deposit, there is strong potential for the structure to extend onto the Trillium mineral tenure, the statement says.
This is further supported by recent drilling, including the best surface exploration hole to date, MH25-04 grading 28.97 grams per tonne of gold (“g/t Au”) (26.89 g/t cut) over 21.76 metres true width, and MH25-03 grading 15.38 g/t Au (14.19 g/t cut) over 15.02m.
These intercepts extended high-grade gold mineralisation over significantly greater widths up to 100m down-plunge from the nearest Inferred Mineral Resource block in Island East. The deposit remains open laterally and down-plunge, it says.
“The acquisition of Trillium is consistent with our strategy of consolidating prospective land in proximity to our Island Gold mine where we have had tremendous exploration success over the last several years. Island Gold’s Mineral Reserve and Resource base has more than doubled since 2017.
"We see excellent potential for this growth to continue given ongoing exploration success. The acquisition of these claims ensure we maintain full ownership over future growth of the existing deposit and regionally where there have been a number of high-grade gold occurrences including two past producing mines," said John A. McCluskey, President and Chief Executive Officer.
The Trillium land package also provides significant regional exploration potential, adding 10 kilometres of strike extent within the Goudreau Lake Deformation Zone (GLDZ), a primary control on gold mineralisation within the Goudreau-Lochalsh segment of the Michipicoten Greenstone Belt.
Alamos’ consolidated land package now covers a total of 17 kilometres of highly prospective structures and stratigraphy within the GLDZ. In addition to the Island Gold and Kremzar Deposits, this now includes two past producing gold mines (Cline and Edwards), as well as several historic high-grade gold showings, including the Markes and Vega Zones.
The larger consolidated land package will allow for Alamos to apply a systematic, district scale approach to exploration with targeting based on greenstone belt scale structural and stratigraphic controls on gold mineralisation.
Included within the Trillium land package is the Highland Property which is in the final year of a five-year option agreement. Following the exercise of the option, expected on February 26, Alamos will own 100 percent of the Highland Property.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.