The KE Report Scottie Resources – Best Ever Drill Result At Project, Building Towards A PEA On DSO Strategy, Bulk Sample In Process, Ore Sorting Study
Brad Rourke, CEO of Scottie Resources (TSX.V:SCOT – OTCQB:SCTSF), joins me to review a number of key ongoing initiatives and newsflow including the best ever drill hole assay returned to kick off the largest ever drill program, further derisking work building towards an upcoming Preliminary Economic Assessment (PEA), a bulk sample in progress, and an ore sorting study underway at the Scottie Gold Mine Project; located in the Golden Triangle of British Columbia.
We start off reviewing the initial high-grade drill results returned from the ongoing planned 25,000-30,000 meters exploration program at the Blueberry Contact Zone.
Highlights:
- Blueberry Contact drillhole SR24-364 intersected 30.1 grams per tonne (g/t) gold over 23.65 metres (m), including 83.3 g/t gold over 4.4 m at the Fifi vein.
- Blueberry Contact drillhole SR24-362 intersected 9.18 g/t gold over 21.00 m and 5.19 g/t gold over 6.00 m at the Blueberry vein zone.
- Blueberry Contact drillhole SR24-360 intersected 23.1 g/t gold over 2.00 m at the Fifi vein zone.
- 3 of the 5 reported holes have discreet intercepts of greater than 5 g/t gold in the siltstone host rock, including 29.8 g/t gold over 1.05 m in SR25-364.
Brad highlights that 4 diamond drill rigs have been turned across the property at the high-priority Blueberry Contact Zone, around the past-producing Scottie Gold Mine, including at the Wolf Zone discovered last season, and at the C & D veins. Brad points out that about 14,000 meters has been drilled thus far, and that a big percentage of the will be focused on upgrading the resources from inferred to indicated categories as well as targeting resource growth at the Blueberry Contact Zone, with a focus on the open pit and upper portions of the underground resources at both Blueberry and Scottie, and detailed testing of the siltstone side of the contact zone. We also review follow-up step-out drilling on the Wolf Zone target discovered in 2024 at the Scottie Gold Mine area.
Ongoing geotechnical and hydrogeology drilling will also provide data to inform mine design and assist efforts with the recent initiation of Baseline Environmental Studies. With all this exploration and fieldwork now underway, the Company remains on track to deliver a low-capex PEA based on a Direct Shipment Ore (DSO) scenario in October. Brad reiterates that the management team and board believes this coming economics study will clearly highlight the significant, untapped value of the Scottie Gold Mine Project. The company then plans to springboard over the Pre-Feasibility Study and head straight into work streams for a Feasibility Study (FS) with actual cost estimates and more detailed economics as the next major economic study to be undertaken.
Next we touched on the ongoing 10,000-tonne surface bulk sampling program where they have been blasting and mucking mineralized material from the road-accessable outcropping Bend Vein located on the north end of the Scottie Gold Mine Project. This will be a nice opportunity to learn more about a number of metrics and provide a nice proof of concept, as well as generating some non-dilutive capital for the Company in the process.
When reviewing their direct-ship ore strategy, Brad highlighted that Scottie has one of the closest gold projects to a deep-sea shipping terminal, which based on its location is positioned in one of North America’s cheapest commercial shipping lanes to Asia. In addition to the ease of a proposed open-pit mine, which already has an existing mine permit, there is also key external infrastructure in place, such as power lines and hauling roads right to site. Ocean Partners recently participated in a financing for the company this summer, and has expressed interest in the offtake of this material in a development scenario.
Wrapping up we discussed the ongoing Phase 2 ore-sorting study underway, that will be a more advanced Feasibility Study level test of upgrading the ore, with the strategy to reduce the amount of waste rock before shipping. Ore sorting could significantly enhance the efficiencies of the overall DSO strategy, and those results are due out in Q4.
If you have any questions for Brad regarding Scottie Resources, then please email them in to me at Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Scottie Resources at the time of this recording and may choose to buy or sell shares at any time.