Wallbridge Mining (WM) - Updated Resource Will Delight Market

Wallbridge Mining Company Limited is currently advancing the exploration and development of its 100%-owned Fenelon Gold property located along the Detour-Fenelon Gold Trend, an emerging gold belt in northwestern Quebec. Within three years of the discovery of Area 51 and Tabasco/Cayenne Zones, through drill programs totaling 300,000m, Wallbridge reached an important milestone by announcing a maiden MRE (Mineral Resource Estimate) for Fenelon and an updated MRE for the Martiniere Gold Property totaling 2.67Moz gold in the indicated category and 1.72Moz gold in the inferred category. Wallbridge is also the operator, and a 17.8% shareholder in Lonmin Canada Inc., a privately held company with a portfolio of nickel, copper, and PGM (Platinum Group Metals) projects in Ontario’s Sudbury Basin.

Matt Gordon caught up with Marz Kord, President, CEO, and Director, Wallbridge Mining Company Limited. Mr. Kord is a professional mining engineer with over 3 decades of progressive experience in mining operations and project management. Prior to joining Wallbridge in 2011, he held the position of Executive Vice President at Global Mining (now WSP Global) for Genivar Inc., a large Canadian firm, where he led the development and growth of the company’s domestic and international mining profile. During the early part of his career with Falconbridge Ltd., Mr. Kord was involved in mining operations in both Sudbury and Timmins. His expertise includes managing large, multidisciplinary teams of engineers and operators as well as extensive experience in developing strategic growth plans and in M&A (Mergers and Acquisitions).

Company Overview

Wallbridge Mining Company Limited is an advanced exploration-development company driven by a strategic and targeted approach. The company’s Fenelon Gold property and Martiniere Gold property are located on its 910 square kilometres land package along the Detour-Fenelon Gold Trend in Northern Abitibi, Quebec, with significant potential for further discoveries over a 97-kilometre strike length of this under-explored belt. The company was founded in 1996 and is headquartered in Ontario, Canada. It is listed on the Toronto Stock Exchange (TSX-V: WM), and the OTC Markets (OTCQX: WLBMF).

Wallbridge Mining is focused on its flagship projects along the Detour-Fenelon Gold trend with Fenelon Gold being the most advanced asset. The company’s second most-advanced asset is the Martiniere deposit. It is a large-scale land package spread over a 900 square kilometre area and is located about 97km from the Detour Lake Mine along the Sunday Lake deformation zone towards the east. The company has identified 3 gold systems on the trend, namely Detour, Fenelon, and Martiniere. As per the company, the land package is highly under-explored and is highly prospective. The company has carried out regional exploration and has identified areas that haven’t been drilled.

The company continues to hit visible gold and mineralization, which can lead to potential discoveries in the future. The company released its maiden resource estimate in November 2021. This year, the company is looking to drill about 150,000m with a focus on expansion at Fenelon and Martiniere and limited regional exploration.

Through the drill program, the company is looking to bring the Martiniere deposit to its next milestone with an updated MRE (Mineral Resource Estimate), which will be followed by an Economic Study. Over time, the company is looking to expand the Martinere deposit as an additional project in the pipeline.

Wallbridge Mining is cognizant that mining is a cyclical business. The company has already demonstrated that its projects won’t be marginal. In the current cycle, the company is comfortable with its position. It is looking to showcase the value of the project with an updated MRE and a planned Economic Study.

Cash Position

Wallbridge Mining has $40M in current cash flow and is expecting an additional $20M from the Quebec government as part of its 2021 tax credit. The company has planned an aggressive exploration program in 2022, following which it will have between $20M-$30M in cash flow that will be carried into 2023.

The company has a highly diverse group of shareholders. Agnico Eagle is a 10% stakeholder, while Eric Sprott has a little under 20% stake. The company also has backing from William Day Construction and other funds.

Every company that is looking to enter the development and production stage requires additional funding from institutions. This is because institutional investors have the capacity to finance and advance the project. Liquidity also comes from retail investors.

The company anticipates that the next updated resource will be the first milestone in creating value for the shareholders in Q4. The company is looking to update the resource estimate by Q1 2023. This will be followed by an Economic Study.

Targets 2022 and Beyond

Wallbridge Mining is looking to achieve a project milestone before raising additional capital. As an exploration company, capital raises are necessary for cash flow generation, however, the company isn’t looking to raise additional funds in the near future. It anticipates that this year’s drill program will bring better evaluation for the company.

The November 2021 resource estimate disappointed the market from the purview of grades and the understanding of resource optimization. In the updated resource, the company is looking to demonstrate the primary underground bulk mineable deposit. It anticipates that this deposit would also have mineralization at the surface similar to the Area 51 Zone and the Tabasco-Cayenne Zone, however, the majority of the material is expected to be underground.

Following the Economic Study, the company is anticipating a higher-grade reserve. This will enable it to demonstrate the project’s robust features. Internally, the company is looking at the deposit as a bulk mining underground operation. The average cut-off grade for the resource estimate is 1.5g/t. In terms of a bulk-mining operation, the indicated and inferred resource collectively accounts for about 2.7Moz of 3.3g/t. The company is looking to improve and expand the deposit through the 2022 drill program.

As per the company, the deposit has a significant expansion potential in the surrounding area. The Fenelon and Martiniere deposits are constrained by the amount of drilling rather than the geology. The company is yet to find the end of the deposit and has plans to continue drilling. 1km south of the Fenelon deposit is the Ripley Zone. The company is looking at the Ripley Zone as an addition to the deposit. Any satellite deposit found around Fenelon would help improve the project economics.

A project cannot achieve production within a 2-3 year period unless it's a very small-scale operation. A large project such as Fenelon requires time in order to demonstrate the size and potential of the deposit. The company is looking to further refine the project so that it can be carried into an Economic Study. Once the Study is complete, a project description is established and the permitting process is initiated. In Canada, different provinces have different permitting timelines. However, Quebec is one of the jurisdictions which is really good in terms of the permitting process. This is because the First Nation consultations have established well-defined procedures that need to be followed.

If the company is successful in conducting an Economic Study in 2023, it will be able to enter production within the next 3-4 years. It would need to raise additional funds in order to bring the project into production.

Wallbridge Mining had put forward this year’s drill program in early 2022. Here, the company had plans to drill between 150,000m to 160,000m. Notably, the company has spent 60% of its efforts on Fenelon, 30% on Martiniere, and 10% on regional exploration. The company realised that under the current market conditions, it needs to be prudent with spending in order to reach the milestone.

Currently, the company is looking to focus its efforts on the Fenelon property as it’s the most advanced project. Reaching the first milestone will enable the company to create additional value, improve the share price and carry out the program for the balances.

Following this year’s drill program, the company will have between $20M-$30M in cash flow. In case the market conditions are unfavourable, the funds will provide flexibility for the company to sustain itself for a good portion of 2023.

Wallbridge Mining was able to deliver the maiden resource within 3 years of the discoveries. As per the company, it is still ahead in terms of project advancement. Given the size of the Fenelon and Martiniere project, the timelines have been on par or better than the industry standards.

To find out more, go to the Wallbridge Mining website