Mining Company Finds New Copper-Gold Vein, Considers Use of AI in Exploration

McFarlane Lake Mining (MLM:NEO; MLMLF:OTCQB) has announced the results of its surface sampling in the Purdex Zone of the High Lake Property in Ontario. These findings include a potential copper-gold vein in the Porphyry Zone.

Sample Results and Potential New Vein

McFarlane Lake Mining Ltd. has announced the initial results of its surface field work program on the Purdex Zone of its High Lake Property in Ontario. A previous report established a Mineral Resource Estimate for the Purdex Zone of 96,200 inferred ounces and 45,800 indicated ounces of gold at a grade of 10.32 g/t gold and 9.38g/t gold.

The program outlined numerous anomalous areas, with 12 samples returning values containing gold. Gold samples were returned in 4 target areas identified by the most recent geophysical survey, with the highest grade samples coming from the recently drilled Purdex Zone with values of 15.9g/t gold. Significant values also came from the east of the Purdex Zone with values of 9.35 g/t gold. The samples from these areas were in elevated areas of conductivity supporting geophysical data as having the potential to contain gold mineralization. Sampling also found copper values exceeding 1,500ppb copper in the Porphyry Zone.

"We bought McFarlane Lake early in February which turned out to be a good time as it has continued to creep higher ever since, so that we now have useful gains. However, as we will proceed to see, by far the best gains still lie ahead."

The copper findings in the Porphyry Zone may indicate a potential copper zone. Over 22m of historical trenching from the 1950s graded 0.95% copper, with gold values of up to 1.5g/t. Recently the prospecting and sampling program in this area produced a number of elevated gold and copper values, including 1.55g/t, 1.46g/t, and 0.96g/t gold associated with 0.87%, 0.78%, and 0.59% copper. This wide vein system has been tracked for over 600m along surface, and may be the result of a porphyry system within the area.

Gold: On the Path Upwards?

Gold has taken a hit this June as investors shifted towards critical metals, such as lithium, nickel, and copper. According to Stockhead, "what the gold sector needs to claw back some attention is an almighty surge in the gold price, one that leaves the record US$2,075/oz set during the pandemic in its wake." While the current price of US$1,960/oz is still good, gold is not living up to expectations. However, Evolution executive chair Jake Klein believes that this will be short lived, and that gold will make a comeback defined by the "three D's." These factors are debt defaults, which is liable to stress the economy, debt ceiling, which puts the United State's economy on shaky ground, dedollarization, which defines the dollar's increasing instability, and decarbonization, which sees a large portion of national spending moving towards environmental factors and contributing to inflation. Given that gold does well when the economy does not, gold could still be in the running.

McFarlane Planning for the Future, Considering AI

Analyst Clive Maund recently reviewed McFarlane on June 12, 2023, where he said "we bought McFarlane Lake early in February which turned out to be a good time as it has continued to creep higher ever since, so that we now have useful gains. However, as we will proceed to see, by far the best gains still lie ahead."

McFarlane has three defining factors that distinguish it from other companies: it is focused on finding gold where it has already been found, it seeks out infrastructure for future mines, and it has experienced management. McFarlane has a portfolio of six 100% owned properties, all of which have previously identified gold mineralization. All six properties are located in mining friendly districts of Canada. Lastly, the company's management is made up of former mining executives with experience in exploration, operation, and development.

McFarlane is exploring its strongest prospects, which are High Lake and West Hawk Lake. Drilling in January of last year at West Hawk Lake expanded gold mineralization at depth in two zones, established continuity in gold mineralization, and confirmed the existence of high grade intersections. The company has also begun drilling at High Lake, where previous operations identified multiple high grade intersections in the Purdex Zone that include a panel sample of 9.8 g/t over 10m in a surface trench. Soil Samples also showed up to 12.2g/t gold in a newly acquired claim. The results of the High Lake exploration program will form part of a NI43-101 technical report on both properties.

McFarlane is also reviewing the potential applications of artificial intelligence in the mining sector, and is currently in communication with consultants who employ AI for exploration. Using AI to review and compile current and historical data may lead to the identification of other targets for exploration in the development of the High Lake Property.

Ownership and Share Structure

Mark Tevisiol owns 14.17% of the company with 11.43 million shares, Perry Nicholas Dellelce owns 11.35% with 9.15 million shares, Roger John Emdin owns 3.93% with 3.17 million shares, Dario Sulich owns 3.10% with 2.50 million shares, Fergus P. Kerr owns 0.37% with 0.30 million shares, and Charles James Lilly owns 0.02% with 0.01 million shares.

Canadian Star Minerals Ltd owns 16.03% with 12.93 million shares. The company reports no strategic investors.

McFarlane has CA$2.25 million as of October 30, 2022, with a monthly burn rate of $100,000 per month outside of exploration costs. The company has not reported monthly drilling costs.

McFarlane reports no potential sellers or warrants overhang.

There are 80.65 million shares outstanding, with 41.16 million free float traded shares. The company has a market cap of CA$8.54 million. It trades in the 52 week period between 0.01 and 0.00.

Important Disclosures:

1. McFarlane Lake Mining Ltd. are billboard sponsor(s) of Streetwise Reports and has paid SWR a sponsorship fee between US$3,000 and US$5,000. In addition, McFarlane Lake Mining Ltd. is an affiliate of has a consulting relationship with Streetwise Reports and has paid a consulting fee between US$8,000 and US$20,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of McFarlane Lake Mining Ltd.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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