Probe Mines Sets Up Shop in ‘Ontario’s Newest Gold Camp’

Canada’s Probe Mines (TSXV:PRB) ended Wednesday with some good news, announcing that it has signed a definitive agreement and concurrently closed the acquisition of Scierie Landrienne subsidiary Boises Landrienne. 

To make the purchase Probe paid Scierie Landrienne C$25 million and issued 6 million shares. Probe now owns 100 percent of the mineral rights to 486 patented claims in and around the Ontario-based Borden gold deposit, while Scierie Landrienne holds about 6.6 percent of Probe.

As Probe highlights in its press release, Wednesday’s move is important because it represents the consolidation of its interest in the Borden deposit. That’s exciting in itself, but according to Chairman Jamie Sokalsky — former president, CEO and CFO of Barrick Gold (TSX:ABX,NYSE:ABX) — it’s even more significant because the deposit is in what Probe believes is “Ontario’s newest gold camp.”

Expanding, he said, “[t]o own a district-sized property surrounding a new multi-million ounce deposit with all of its untapped exploration potential is a unique situation that adds considerable value to our Shareholders. We are delighted to have worked with our partner, [Scierie Landrienne], to settle this transaction and we welcome them as shareholders of Probe.”

David Palmer, the company’s president and CEO, concurred and said that the next step for Probe will be to start an infill drill program in the middle of the High-grade Zone over the “wedge” claim. It is expected to have a “significant impact” on Probe’s current resource estimate for Borden.

That estimate, which was updated this past June, points to a high-grade underground resource containing a constrained indicated resource of 1.6 million ounces of gold averaging 5.39 grams per tonne (g/t) gold, as well as a constrained inferred resource of 0.43 million ounces of gold averaging 4.37 g/t gold; that’s at a cut off of 2.5 g/t gold. Borden is also estimated to contain an open-pit constrained resource of 2.32 million ounces of gold averaging 1.03 g/t gold at a cut off of 0.5 g/t gold.

The new resource estimate will ultimately form the basis of a preliminary economic assessment for Borden. Its release is expected in the first half of next year. Moving forward, investors can also look forward to the release of summer and fall drill results from the deposit.

At close of day Wednesday, shares of Probe were selling for $2.76 each, up 2.6 percent. As the acquisition announcement came after market close, Thursday may bring more share price action.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.