BTU Metals Corp.: Kinross to Commence Extensive Core Drilling Program on BTU Dixie Halo Project
BTU Metals Corp. (“BTU” or the “Company”), a prominent player in the mining exploration sector, has announced significant updates regarding its Dixie Halo (“DH”) project as well as Kinross Gold Corporation’s plans to kickstart a comprehensive core drilling program. Kinross holds strategic interests in the area through its wholly-owned subsidiary, Great Bear Resources Ltd. (“GBR”). The project is situated adjacent to the renowned Great Bear gold deposits in the Red Lake Gold camp area of northwestern Ontario, Canada.
Earlier this month, Kinross revealed a shift in its exploration focus from deep underground resource drilling to regional exploration. The aim is to identify new open pit and underground gold deposits on its Great Bear project. Kinross has acquired the necessary exploration permit for the DH option property and plans to commence approximately 8,000 metres of core drilling come May.
Dixie Halo and Its Strategic Position
The Dixie Halo Project occupies a pivotal position adjacent to Kinross’s Great Bear project, where exploration and development continue to unfold. GBR has made considerable strides by expanding the known gold mineralization envelope on the LP Zone up to depths of 1,600 metres. Their focus is now on exploring areas beyond the primary known mineralization zones.
Exploration Efforts and Future Plans
Throughout 2024, GBR diligently worked under the option agreement on the DH project. This endeavor involved a comprehensive program of re-logging and sampling of nearly all the BTU drill core. GBR leveraged its extensive experience and geological acumen, honed over years of involvement with the GBR gold mineralization, to undertake these tasks. Matching the geochemical sampling protocols utilized on the Great Bear project provided clarity regarding the geology and alteration on the DH project, facilitating informed correlation of regional geological units.
The results from geophysical compilations, geological reviews, relogging, and sampling have prompted the upcoming drill program. The initial core drilling schedule has been meticulously planned and permitted, with commencement anticipated in the spring to optimize costs relating to local logistical considerations.
Option Agreement Overview
Under the option agreement, GBR is committed to spending a minimum of $2.7 million within the first three years and potentially a cumulative total of $4.7 million to secure a 70% interest in the Dixie Halo property. The option agreement between BTU and GBR was finalized in February 2023.
Paul Wood, CEO of BTU Metals Corp., expressed enthusiasm over Kinross’s readiness to launch a significant core drilling venture on the Dixie Halo project. With the data gathering and interpretation phase complete, Kinross is prepared to target numerous promising sites in hope of discovering new gold mineralization areas. Wood emphasized the unparalleled expertise of the Kinross geological team, highlighting their comprehensive knowledge of the Great Bear deposit and local gold mineralization controls as invaluable for the project’s progression.
Conclusion
The partnership between BTU Metals Corp. and Kinross, underscored by the upcoming drilling initiative, represents a remarkable advancement in regional exploration aimed at unearthing new gold deposits. BTU is optimistic that the expertise and insights of Kinross’s team will lead to significant mineral discoveries, rallying behind the endeavor with high expectations. The decision to proceed with this extensive core drilling program marks a pivotal step in refining and testing gold targets critically essential to maximizing the potential of the Dixie Halo project.
