Gold Co.'s Early Drilling Intersects High-Grade Gold

This morning December 12, 2022, McFarlane Lake Mining Ltd. (MLM:NEO;MLMLF:OTCQB) announced drilling results from its High Lake property in Ontario, near the Ontario-Manitoba Border.

McFarlane Lake is a Canadian gold exploration and development company located in Ontario. The company has six 100%-owned properties, all of which have previously identified gold mineralization. Half of these properties are past-producing gold properties, with, according to the company, the initial metallurgical test showing promising results on the Purdex with 89% recovery. 

Why Gold?

Prices have risen substantially over the past year. As the U.S. Bureau of Labor Statistics' Consumer Price Index reports, urban consumer prices have increased by more than 8% this year. Yet, gold is a commodity that seems to stand the test of time. No matter the market's weather, investors lean on the precious metal as a hedge against inflation.

According to Reuters, "gold remains the ultimate store of wealth which can help investors achieve their portfolio objectives."

Last year, the Federal Reserve Bank of Chicago tested this in a November publication to see whether gold truly did protect against difficult economic times. They found  that two of their three specifications underpinned the idea "that gold is an inflation hedge and that this effect is quantitatively larger than the real interest rate effect."

According to Reuters, "gold remains the ultimate store of wealth which can help investors achieve their portfolio objectives."

The Reserve also concluded that "the two specifications that can be used to evaluate the proposition that gold prices also reflect protection against bad economic times are highly supportive of it."

Last month, technical analyst Clive Maund commented on the gold sector, saying, "Gold’s COT chart is certainly conducive to a major rally, for as we can see on it, the Large Specs have little enthusiasm for it now, which is what we want to see as collectively they are always wrong."

Expert Adrian Day also threw his opinion into the ring today when he said, "It is an anomaly for gold miners to be less expensive, have better balance sheets, and pay higher dividends than the broad market, and investors should take advantage of the opportunities in bullion and in the stocks before the crowd starts buying."

Gold exploration companies are on many expert's radars, and according to McFarlane Lake Mining, exploration companies like it "provide an opportunity to get exposure to gold, while delivering the possibility for significant upside as gold mineralization is discovered and mineable resources are defined."

Early Drilling Intersects High-Grade Gold

Amidst early drilling of its High Lake property, McFarlane Lake announced it had intersected high-grade gold within 20 meters of surface, 9.82 grams per tonne (g/t) gold intersected over 9.75 meters.

In this intersection, the company found two distinct visible gold occurrences in the diamond drill core. This discovery was made at hole MLHL-22-28, a near-surface hole drilled to a depth of 63.0 meters. This hole was unplanned but drilled as a follow-up to MLHL-22-01 after gold mineralization was intersected.

Significant intersects so far can be seen in the table below.

McFarlane's Vice President of Geology, Bob Kusins, commented, “We are pleased that the early part of the drilling program has returned some significant gold intercepts. Our plan is to continue to drill off the Purdex Zone where we believe more opportunity exists to intersect additional gold mineralization."

Multiple Upcoming Catalysts 

McFarlane Lake Mining has multiple upcoming catalysts with plans through 2024. The company is actively exploring. Specifically, it is focused on its High Lake and West Hawk Lake property.

The full drilling campaign is expected to finish next year, with assay results released throughout the campaign and final results given in late 2023.

As for 2024, the company plans to execute a bulk sample program. Then beyond 2024, it will move to a feasibility study. 

In January of this year, drilling at West Hawk Lake expanded mineralization in two zones and confirmed the existence of high-grade intersects. The first five holes of McFarlane Lake's 8,000 to 10,000-meter drill program began this November and have since intersected high grade at the Purdex Zone in MLHL-22-01, MLHL-22-02, MLHL-22-03, MLHL22-16, and MLHL-22-28. The company believes that this affirms the expected high grade based on the existing historical resources.

Now, results are pending from its High Lake property to be revealed. The full drilling campaign is expected to finish next year, with assay results released throughout the campaign and final results given in late 2023.

As for 2024, the company plans to execute a bulk sample program. Then beyond 2024, it will move to a feasibility study. 

Ownership and Share Structure

Approximately 28.3% of the company's stock is owned by management. According to Reuters, President and CEO Mark Trevisiol has 13.42% with 10.83 million shares. Director Perry Nicholas Dellelce has 9.98% with 8.05 million shares. COO Roger John Emdin has 3.78% with 3.05 million shares, and CFO Charles James Lilly has 0.02% with 0.01 million shares 

56.7% of shares are in retail. Canadian Star Minerals Ltd. is the largest shareholder, with 15.65% at 12.63 million shares.

As of October 30, 2022, McFarlane has US$2.25 million in cash and cash equivalents and a burn rate of $100,000 a month outside exploration costs.

The company is currently drilling in short campaigns at this stage, with two drills on the High Lake property drilling at a combined rate of just over 200 meters daily.

McFarlane Lake has a market cap of US$8.0 million, with 100,571,813 shares outstanding,11,778,731 warrants, and 9,325,000 options.

Disclosures:
1) Katherine DeGilio wrote this article for Streetwise Reports LLC. They members of their household own securities of the following companies mentioned in the article: None. They or members of their household are paid by the following companies mentioned in this article: None.

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