Monday 28th September 2020

Resource Clips

Probe President David Palmer on Ontario gold assays of 1 g/t over 95.6m

Resource Clips - essential news on junior gold mining and junior silver miningProbe Mines Ltd TSXV:PRB announced results from its Borden Lake Gold Project in northern Ontario. Assays include

0.8 g/t gold over 126 metres
(including 1.4 g/t over 16.5 metres)
1 g/t over 95.6 metres
(including 2.4 g/t over 19 metres)
1 g/t over 94.7 metres
(including 3.8 g/t over 9.1 metres)
0.8 g/t over 81 metres
(including 1.6 g/t over 24 metres)
0.6 g/t over 102 metres
(including 1.3 g/t over 14 metres)
0.7 g/t over 87 metres
(including 1.4 g/t over 17 metres)

President David Palmer tells, “The company has always been very technically focused, so we’ve been systematically testing Borden Lake [to] increase our comfort level in the deposit. A lot of these holes are actually step-outs—where we’re testing it deeper—but we’re also testing it along strike. Interestingly enough, as we move from the discovery zone to the southeast, what we’re finding is that the zone is actually improving with depth. We are getting thicker, higher-grade sections at depth. So a lot of those step-out holes have improved the deposit.

Borden Lake has pleasantly surprised me at every turn. It always seems to do what it needs to do to move forward—David Palmer

“I think the results were actually really good. Our program to increase confidence and increase the quality of the deposit by basically taking a very methodical approach is paying off for us. The updated resource is going to be out before the end of the month, and we’re expecting [it] to show that we have upgraded a lot of the deposit from inferred to indicated, basically increased the confidence in it, as well as expanding it to look at that high-grade core. You can see in today’s results that we do have this very consistent high-grade zone that we still see as we move to the southeast. Overall, they were really positive drill results.

“Last month we submitted for the second-phase metallurgical testing,” Palmer continues. “We’re probably going to start to optimize the flow sheet; we’re increasing the spectrum of samples we’re looking at. I would say that probably towards the end of summer we’ll be looking at something like that. The updated resource is going to be interesting because we’re going to be much more rigorous. We’re going to look a lot at grade distribution and at the high-grade core, so it’s going to start to point us in a direction of potential development scenarios. Borden Lake is interesting because it does have that higher-grade centre all along the deposit. It lends itself to, potentially, looking at it as in the low-grade space, but at the higher end of the low-grade space. So the updated resource is really going to help point the way towards the preliminary economic assessment and what kind of scenario is more economically robust for Borden Lake. It might be surprising. It might be something where we are looking at a smaller operation—25,000 to 30,000 tonnes a day—but at higher grades, [so] potentially less sensitive to a lot of the things that the low-grade deposits are sensitive to.”

Does Probe intend to take Borden Lake to production? “To me, the value is in the ground,” Palmer replies. “To unlock that value, the only direction to push this thing is towards development. So my focus is eventually producing Borden Lake.”

Palmer reports that the company has $33 million in the treasury and that the budget for 2012 is $15 million. “So we’re doing well.”

“The market has its fluctuations, but given the updated resource, and especially if you’re looking at a lot of our peers, I would say we’re severely undervalued.”

Palmer concludes, “Borden Lake has pleasantly surprised me at every turn. It always seems to do what it needs to do to move forward. From the orientation of it, from its proximity to infrastructure, and we just keep showing positive results from new drilling. It’s expanding, in some cases I would say improving in quality, so I’m really pleased. It’s one of these things that makes you nervous because you’re always on the edge of your seat waiting for something bad to happen, but Borden Lake has always come up very well in everything it does.”

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David Palmer

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Investor Relations

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