6 minute read
Gatling Exploration
PROJECT DIRECTED BY Gary Smith
WRITTEN BY Romana Moares
Jason Billan, Preisdent & CEO, Gatling Exploration
Promising Prospects
Gatling Exploration is a junior Canadian gold exploration company focused on advancing its flagship Larder gold project, located in the prolific Abitibi greenstone belt in Northern Ontario. March 2022 marked a new era for the business as the company announced it had been acquired by MAG Silver, a primary precious metals mining company.
Gatling Exploration is facing a new future as the business was acquired by MAG Silver in an all-share deal, an event that will positive impact the future of both companies.
MAG Silver Corp is a Canadian development and exploration company focused on becoming a top-tier primary precious metals mining company by exploring and advancing high-grade, district-scale, silver-gold dominant projects in the Americas.
MAG Silver is run by an exceptional, technically-inclined team, with a strong balance sheet and access to capital, providing shareholders with increased liquidity and asset diversification. The transaction provides certainty of value to Gatling’s shareholders while limiting future dilution risk.
Gatling Exploration
Jason Billan, President and CEO for Gatling, said: “This important event marks the culmination of several months’ effort to evaluate financing alternatives at Gatling, which has led to an all-share acquisition by leading mid-tier miner, MAG Silver, at a highly robust premium. In combination with the premium delivered, this transaction offers our shareholders compelling upside potential in our acquirer, which is well-positioned to re-rate as its world-class Juanicipio silver project in Mexico advances towards commercial production.”
“MAG Silver is also bolstered by a strong balance sheet and access to capital, mitigating risk of further dilution. Furthermore, Gatling’s shareholders will continue to be exposed to further upside at Larder as well as MAG’s highly prospective Deer Trail project in Utah. “
access to capital. “
He continued: “Attracting a group with the technical capability and industry reputation of MAG both validates several years of quality technical work at the Larder project by our team and underscores the growth potential of the project. We would like to thank all key stakeholders, including the Matachewan and Wahgoshig First Nations, for their ongoing support and look forward to introducing these parties to their new partner shortly.”
Unique position in prime jurisdiction
The Larder property hosts three high-grade gold deposits, Cheminis, Bear and Fernland, on the Cadillac-Larder fault, in the heart of Canada’s Abitibi greenstone belt, just 35 kilometres east of Kirkland Lake, and is adjacent to Agnico Eagle’s top-ranked growth project in Upper Beaver (targeted to be in production by 2027, producing 180 – 240k ozs per annum). The Larder property has a global Mineral Resource Estimate (2021) of 388,000 Au Indicated and 933,000 Au Inferred gold ounces from both open pit and underground resources. In 2020, an aggressive but also highly targeted exploration programme proved that the three deposits are part of a single mineralised system stretching for over 4.5 kilometres. The mineralised footprint for all three deposits has been expanded in every direction and the company is now sitting on more than 150 kilometres of successful drill results outside of the historical estimate.
The project is 100% owned by Gatling and is comprised of patented and unpatented claims, leases and mining licenses of occupation within the McVittie and McGarry Townships. The 3,370 ha project area is positioned 7 km west of the Kerr Addison Mine, which has produced 11 million ounces of gold. All parts of the Larder property are accessible by truck or all-terrain vehicles on non-serviced roads and trails.
SURFACE DIAMOND DRILLING
22 drills in Quebec and Ontario 175 specialist employees www.nordikdrilling.com
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Collaboration with First Nations
Gatling commenced drilling within its Larder project in 2019 with an initial 10,000 m programme that was successful in connecting all of the project’s 3 deposits and has continued into 2021. The 25,000 m drill programme planned for 2021 was completed and its programme expanded in scope beyond the original programme.
Also last year, Gatling Exploration entered into a new exploration agreement with the Matachewan and Wahgoshig First Nations. The aim was to establish a cooperative and collaborative working arrangement between Gatling and the First Nations communities, promoting timely dialogue and communication to foster an open, direct and respectful relationship among the parties.
The focus has been on building a relationship through which the First Nations communities can identify opportunities for their businesses and citizens to participate in Gatling’s activities, as well as enhancing the First Nations communities’ capacity to participate in opportunities related to the exploration activities, which may include training during the life of the project.
Jason Billan commented: “The agreement was a major milestone for Gatling that marked the culmination of more than two years of relationship building and discussions between the company and the Matachewan and Wahgoshig First Nations, and lays down a solid foundation for continued cooperation as the Larder project advances further along the value chain.”
“We are pleased to have the Matachewan and Wahgoshig First Nations groups as positive supporters and key stakeholders of the Larder gold project, with strong alignment to our shareholders.”
Gatling Exploration’s Larder Lake gold project
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Going for gold
In December 2021, Gatling Exploration announced the completion of Phase II drilling at the Kir Vit prospect which totalled 5,330 m and identification of significant gold intersections within new host target at the Kir Vit prospect of the Larder Gold Project. Three mineralisation styles have been identified at Kir Vit, indicating a large gold system is present in the area with multiple structural controls. Intersecting new mineralised horizons within the brecciated conglomerate also merit a follow-up programme, since they are the largest geological unit at Kir Vit striking over 1 km, with widths up to 600 m. Gatling expects to expand all mineralized envelopes with Phase III exploration and drilling in 2022. “The results of the recently completed 5,000 m drill programme have completely redefined the gold potential of the Kir Vit prospect at the Larder Gold Project,” said Jason Billan.
“Initial drilling at Kir Vit outlined promising near-surface gold intercepts near syenitic intrusions and shear-hosted structures in mafic volcanic rocks. The Phase II drilling was partially designed to probe a large, 1 km long by 600 m wide, package of Timiskaming Conglomerates containing hydrothermal breccia structures. The drill intersections in the shear structures yielded high-grade over shorter intervals, while hole KV-21-30 in the conglomerate zone suggests that Kir Vit has more to offer by exhibiting much larger widespread zones than recently discovered.”
“This new mineralised unit, still heavily unexplored, is volumetrically large and will be the focus of our Phase III 2022 drilling at the Kir Vit prospect,” he added.
The Larder Project is to transition into MAG’s capable hands in the coming months, with work to continue as planned.
www.gatlingexploration.com
Gatling Exploration
