Provenance Gold Corp. (CSE: PAU | OTCQB: PVGDF) has announced that its NI 43-101 technical report has been filed on SEDAR for its Eldorado gold property in Malheur County, Oregon.
The purpose of the report was for Provenance to form a baseline for the property, which will be expanded further in 2023 following a confirmation drilling programme planned by the company. Eldorado has a historic drill hole database consisting of 242 drill holes that have outlined a large shallow open-ended gold system. This historical database is currently not sufficient as the basis for developing a current mineral resource, but work is underway to verify and bring current the historical data.
In 1990 the first mineral inventory was calculated by Pincock, Alan and Holt (PAH) a reputable engineering firm that was used industry wide for this type of work. PAH modelled 158 of the historic drill holes which identified approximately 52,896,000t that graded 0.578g/t gold (0.0169oz/t gold) at a cut-off of 0.274g/t (0.008oz/t) in the completely open-ended gold system.
Provenance has stated that it is aware of a second historical resource estimate that was calculated by ICAN Minerals and a further projected resource estimate by ICAN from work completed between 1989 and 1997 where the tonnage and grade were substantially higher. The company is not treating any of these estimates as current mineral resources and a qualified person has not done sufficient work to classify the estimates as current mineral resources.
The estimates were prepared prior to the enactment of National Instrument 43-101 and should not be relied upon for investment decisions. The purpose of presenting this information is to show that the Eldorado property has potential to hold a large mineral inventory. Provenance plans to update these historical estimates into a current resource model.
Near term work includes confirmation drilling by twinning several the historic holes, certifying, and comparing assays between the old and new holes, validating all historic holes in the field with a GPS, and confirming historic metallurgical test results. When the company is comfortable with these upgrades in compliance, then a new stand-alone current resource can be calculated. Other than these, Provenance has said it is not aware of any more recent estimates prepared for the property.
The report shows that within the Eldorado mineralized area there are many higher-grade zones. For example, as quoted from the NI 43-101 report, ICAN Minerals’ hole R-96-C-1 intersected 1.51g/t gold (0.0441oz/t gold) over 196.9m. The estimate predates and does not comply with current CIM Definition Standards but illustrates that the gold system is large and extends to depth, not just in area.
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