Fokus Mining Has A Growing Resource Of Gold And A High-Grade Target In Quebec
Quebec is one of the top jurisdictions in the world for exploration, mine development and mining. Fokus has an excellent project with a gold resource that can get a lot bigger.
Over the years that I’ve been doing research and reporting on the mining sector I’ve always promoted how important it is for investors to do their homework. Several times I’ve been asked what my process is for doing my homework.
It starts with looking at a company’s website to read their news releases and corporate presentations. Then I get on the phone and talk with management and it never ceases to surprise me how the information jumps off the page when I talk with those leading the companies I’m interested in.
Recently, Fokus Mining (FKM.V) came to my attention, so I did my usual homework process of looking at their news releases and corporate presentations and then calling their CEO Jean Rainvillle. I was very happy that I did because it brought their news and presentations to life. As I was talking to Jean, and looking over their information it stood out to me that they are similar to another Quebec based company that I picked early in their exploration and talked about them many times through to their ultimate success of being bought out.
I was very fortunate to recognize the potential of Osisko Mining early in their drilling. I remember all the milestones they went through very well and the knocks against them along the way. The first questions were related to grade and how big it could be. Then the questions were how would they mine it because part of the deposit was under a small town that would need to be moved in order to open pit mine Malartic. Then it was could they get the permits and whether it was economically worth mining it and how would they fund it.
They had a doggedly determined team that kept ignoring the knocks against them and passed all the tests, built the mine which is the largest mine in Canada and they were ultimately bought out making their shareholders a lot of money.
The first thing that stood out to me from Fokus Mining was the image below from their corporate presentation. In it, you can see widespread gold mineralization that is over 2 km along strike. With a lot of gold in the first 200 metres below the surface.
It is clear to see a lot of the near surface gold mineralization that would make it into a conceptual pit outline. Starting at the top of the Hendrick zone, over to the GP zone where there is the most near the surface drilling, then room for it to continue over to RB and Hurd zones which are open to add significant size. Beyond the 2 km of strike it remains open to increase that strike.
Another thing that stands out in this image are a series of zones in cream and red colours that are all pointing in the same direction. They could be pointing toward the source of all the gold mineralization at depth.
In addition to the Hendrick, GP, RB and Hurd zones, the Morris zone which can be seen in the next image shows a lot of potential.
What stands out at Moriss is that coarse gold has been found at the Moriss showing. Several assays are over 30 g/t gold with a highlight hole of 59.51 g/t gold over 6.2 m, with a subinterval of 285.93 g/t gold over 1 m. This high-grade zone complements the bulk tonnage target and looks to be a key zone to chase high-grade gold with additional drilling.
On March 23/2023, Fokus announced their maiden resource from the Galloway project.
Maiden resources are a snapshot in time that are often used as a launch point to then further expand on, which is the case here. Future drilling can infill drill to grow the confidence and size of the resource and expand in the well known zones and on the less drilled zones.
They are off to a good start with close to 1.5 million ounces of gold and room to grow. Another interesting aspect is it also reveals interesting statistics based on price sensitivity that can be seen in the next image.
As you can see depending on the gold value used, it can significantly change the ounces as the higher the gold price the lower the cutoff grade and therefore more material makes it into the resource estimate.
There is a very good quote in the maiden resource news release that helps put things into context. Jean Rainville, President and CEO, stated: “We are delighted to cross this initial milestone and demonstrate the potential for a multi-million once resource on the western portion of the Galloway property. While this MRE was completed with underground mining assumptions, there exist areas of gold mineralization on GP, RB and the Hurd sector that may have open pit potential. (Hurd is located north-east of RB). Hence, although timing is uncertain, a revisited MRE is in the cards as we now have a better understanding of the three mineralized zones included in the MRE where more drilling is required: 1) to get a better handle on the gold grade to find out if infill drilling can support an increase in the MRE; and 2) to examine the potential for lateral extensions and depth potential on those same mineralized zones (Figure 2). As well, other areas such as the RB zone have only received limited work to date but our planned exploration program aims to leverage all the information we now have for maximum impact on continuing to advance the Galloway project.“
So far, it is clear that they have a big gold mineralizing system with room to get significantly bigger with future drilling and a high-grade component at Moriss to chase high-grade. They are also working with ALS Goldspot to compile a property wide review of all geological information. ALS Goldspot is a company that uses big datasets and algorithms to refine drill targets which Fokus Mining believes will identify more targets for drilling on the Galloway project.
In Closing
I see a lot of similarities between the early days of Osisko’s Malartic project and what Fokus Mining has at their Galloway project. Next I will do an initial interview with their CEO Jean Rainville. I’m very pleased to have them join my report sponsorship program at Rocks And Stocks News, so we can keep a close eye on their progress as they do additional drilling.
As always, my reports are for information purposes only, they are not investment advice, it is important for you to speak with your financial advisors to determine if the companies I report on are suitable for you.
I’m a big promoter of investors doing their homework. Ultimately, well informed shareholders that understand the companies they invest in, and have reasonable time frames for companies to reach their success, are prone to make logical investment decisions not emotional ones. This is a recipe for success investing in any sector.
All the best,
Allan
Disclosure
Fokus Mining is a sponsor of Rocks And Stocks News. This article was issued on behalf of Fokus Mining. This article was read and approved by Gilles Laverdière, P. Geo. Mr. Laverdière is a director of Fokus and a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Properties (“NI 43-101”).
Rocks And Stocks News does not make buying or selling recommendations. The reports are for information purposes only. Sponsors pay a fee to Rocks And Stocks News for content creation. This funding helps cover the costs of research and reporting on the sponsors and picks that aren’t sponsors. Before making any investment decision it is important for you to speak with your financial advisors to consider your risk profile. It is also important to do your homework. To help in that process, Rocks And Stocks News means to be a gateway by doing reports and interviews of management of sponsors and picks. The reports and interviews should not be considered investment advice. Allan Barry Laboucan is the founder and owner of Rocks And Stocks News, he has worked in the mining sector since 1993 and has been reporting on the sector since 2005. He has worked with and been mentored by very talented geoscientists in geology, geochemistry and geophysics. He uses the skills he has picked up during his career to assess sponsors and picks in the reports. Whether a company is a pick or a sponsor they go through the same filter and are reported on when important news is made that Allan Barry Laboucan wants to discuss on the Rocks And Stocks News platform. He may own shares in sponsors and picks for investment purposes.
Focus and patience is what this is all about.