Radisson mining resources (TSX.V: RDS, OTCQB: RMRDF) is a gold exploration company focused on the O’Brien gold project located in Northwestern Quebec, Canada. The project hosts the richest mine by grade in the province with historical production of 587k oz at an average grade of 15.25 g/t Au1. Back in 2019, based on ≈140,000 m of drilling, the Company developed a new structural interpretation for the O’Brien gold project and with an Indicated grade of 9.48 g/t Au it positioned O’Brien as one of the highest-grade undeveloped assets in Canada…but the resource needed to grow to possibly establish O’Brien as a stand-alone project.
In the last 3 years Radisson invested more than $ 30,000,000 in exploration, land expansion, infrastructures while completing 127,600 m of drilling on the asset. In comparison, Radisson’s current market capitalization is around $52,000,000.2 Results have been impressive, out of 256 drill holes, 117 visible gold intercepts were obtained, a common signature from the old O’Brien mine.
3 mineralized veins out of 14 returned 90% of the production in the old O’Brien, including vein #4 having returned 50% of the production. While there is more potential within the old mine, the hypothesis was that high-grade enrichment vectors like vein #4 could be replicated approximately every 300 m along strike and to the East of the old mine. Results from the drilling program have been spectacular on sectors that are now named Trend #0, 1, 2, 3 and 4. Trend #0 was drilled down to 750 m vertical depth, 1 and 2 to roughly 950 m and both trend #3 and 4 remain open below 500 m. The property is almost unexplored for another 750 m moving to the east of the resource area.
Results have been even more impressive in areas where the density of drilling was higher back in 2019. On Trend #1 for example where 77 drill holes returned 60 intercepts above 5 g/t Au and Trend #2 where 51 drill holes returned 40 intercepts above the cut-off is used in 20193.
11 of the top 20 drill intercepts on the property have been obtained within the program completed in 2022…either at the boundary or outside the 2019 resource outline. These include 92.3 g/t Au over 2.6 m on Trend #0, 110.2 g/t Au over 2.5 m on Trend #1 and 13.5 g/t Au over 8.2 m on Trend #2 and 33.0 g/t Au over 3.0 m on Trend #3.
In March 2023, the Company published a Mineral resource update doubling resources and reaffirming the O’Brien gold project status as one of the highest-grade gold project owned by an exploration Company in Canada!
Table 1. O’Brien gold project March 2023 Resource Estimate Compared to July 2019
| Cut-off Grade | O'Brien deposit Resource date | Indicated resources | Inferred resources | ||||
|---|---|---|---|---|---|---|---|
| Tonnage (t) | Grade (g/t Au) | Metal (oz Au) | Tonnage (t) | Grade (g/t Au) | Metal (oz Au) | ||
| 4.5 g/t Au | July 20191 | 1,115,000 | 8.85 | 318,000 | 777,000 | 6.73 | 168,000 |
| March 2023 | 1,517,000 | 10.26 | 501,000 | 1,616,000 | 8.64 | 449,000 | |
| Increase | +402,000 | +1.41 | +183,000 | +839,000 | +1.91 | +281,000 | |
| +36% | +16% | +58% | +108% | +28% | +167% | ||
| 3.0 g/t Au | July 20191 | 1,906,000 | 6.67 | 409,000 | 1,500,000 | 5.29 | 255,000 |
| March 2023 | 2,118,000 | 8.46 | 576,000 | 3,668,000 | 5.79 | 683,000 | |
| Increase | +212,000 | +1.79 | +167,000 | +2,168,000 | +0.51 | +428,000 | |
| +11% | +27% | +41% | +144% | +10% | +168% | ||
“This announcement represents a significant milestone for Radisson, and we are extremely pleased to share the results of 4 years of dedicated and focused work. Getting close to 1 M Oz in Indicated and Inferred resources while improving an already enviable gold grade is truly an accomplishment that we are proud to share today. As we say, grade is “King” as it provides margin which is the most critical differentiator of our business. Truly, the new geological interpretation has been validated and allowed us to expand the footprint of the O’Brien gold project. Furthermore, we also need to note that our successful drilling rate is providing us the confidence that we will be able to grow our resources even further.
Globally, there are very few gold projects located in a world-class jurisdiction like the Abitibi, Quebec that have the scale, untapped potential, and the high-grade profile of O’Brien. Results from the MRE have confirmed the geological and growth potential our model was predicting. The geological model is robust and the strong continuity of the high-grade zones at O’Brien has been demonstrated.
The historic O’Brien was already the highest gold grade mine in the province of Quebec, today, with all our high-grade zones open at depth, a strong model supported by our successful drilling rate, and a largely untested 5.2 km strike potential on the Larder-Lake-Cadillac Break, we firmly believe we have yet to see the real potential of the O’Brien project.
Our team is actively planning the next phase of growth for the asset while concurrently evaluating all options that can deliver significant value for our shareholders” Commented Denis V. Lachance, Interim President and Chief Executive Officer.
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1. See NI 43-101 Technical report for the O’Brien project, Northwestern Quebec, Canada, SLR Consulting LTD, March 2, 2023.
2. As at May 25, 2023.
3. Reference to a 5 g/t Au cut-off used in NI 43-101 Technical report for the O’Brien project, Abitibi, Québec, 3D Geo-solution, July 15, 2019.