The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Mining Explorers 2024 - January 15, 2025
Results from roughly 50,000 meters of drilling completed in 2023 were incorporated into an updated resource estimate that served as the basis for an updated PEA for the Ranch and Lawyers gold properties.
Following the 2023 merger with Benchmark Metals Inc., Thesis Gold Inc. has focused on completing the exploration and engineering studies that will provide details of a mine that leverages the synergies offered by the neighboring Lawyers and Ranch gold-silver properties in Northern British Columbia's Toodoggone Mining District.
"Starting in 2023, we set an ambitious goal to focus our exploration and engineering efforts on optimizing our project establishing a low-cost future producer with a quick payback period and a projected mine life exceeding 10 years, while in parallel establishing substantial opportunities for future expansion. We are delivering on that promise," said Thesis Gold President and CEO Ewan Webster.
This ambitious goal was backed by an equally ambitious 50,000-meter drill program in 2023 that was started by Benchmark and Thesis prior to the finalization of the merger.
According to a calculation that incorporates the results from the 2023 drilling at Lawyers and Ranch, the merged properties host 82 million metric tons of measured and indicated resources averaging 1.11 grams per metric ton (2.92 million ounces) gold and 31.9 g/t (84 million oz silver), or 4 million oz gold-equivalent.
Based on this resource, a preliminary economic assessment outlined plans for a mining operation at Lawyers-Ranch that would produce 2.32 million oz of gold and 56.4 million oz of silver over 14 years.
At an average gold price of $1,930 per oz and silver price of $24/oz, the operation would generate an after-tax net present value (NPV) of C$1.28 billion ($950 million) and an after-tax internal rate of return (IRR) of 35.2%. This operation would pay back the estimated C$598.5 million ($442.9 million) initial capital expenditures in two years.
At $2,500/oz gold and $30/oz silver, the after-tax NPV jumps to C$2.25 billion ($1.67 billion), the IRR comes in at 52.8%, and the payback period drops to 1.3 years.
The PEA envisions a 12,600-metric-ton-per-day operation located on Lawyers that would process ore from four pits at the property and several small pits at the Ranch property, with a mining sequence intended to maximize grade in the early years, smooth stripping requirements, and provide enough ore to keep the processing facility fed at full production capacity.
At the same time, underground mining at the Duke's Ridge and Cliff Creek deposits on the Lawyers property would provide ore for the mill beginning in year two.
"The inclusion of the Lawyers underground brings high-grade, easily accessible ounces into the early stages of the mine life, significantly enhancing the project's economics compared to the 2022 PEA," said Thesis Gold Chairman Bill Lytle.
With the PEA complete, Thesis is advancing to a pre-feasibility study for the Lawyers-Ranch project. This included 9,510 meters of drilling last year focused on collecting data for engineering and environmental baseline studies, expanding and upgrading the resource, and exploration.
"This key work is in preparation for the Environmental Assessment process and positions us to swiftly transition into the PFS," said Webster.
Roughly 4,100 meters of Thesis' 2024 drilling focused on upgrading and expanding open-pit and underground resources within the connected Cliff Creek and Dukes Ridge deposits at Lawyers. Highlights from the drilling at Lawyers include:
• 22.6 meters averaging 1.16 g/t gold and 47.1 g/t silver (1.75 g/t gold-equivalent) in hole 24CCDD001.
• Eight meters averaging 7.29 g/t gold and 327.8 g/t silver (11.39 g/t gold-equivalent) in hole 24CCDD003.
• 4.89 meters averaging 3.82 g/t gold and 119.8 g/t silver (5.31 g/t gold-equivalent) in hole 24CCDD005.
The remaining 5,410 meters of drilling last year focused on collecting data for geotechnical and water monitoring studies, along with resource expansion and exploration, at Ranch.
In addition to drilling, the 2024 program at Ranch included the digging of test pits to assess ground qualities at proposed waste rock storage facility sites. This work complements the feasibility-level engineering already completed at Lawyers and will further support a combined mining scenario for both projects.
Thesis also reports that the minimum two-year environmental baseline data collection at Ranch is nearing completion. With the environmental baseline work at Lawyers already materially complete, the finalization of the baseline data collection at Ranch will provide the information to complete the PFS and enter permitting in 2025.
"With a strong PEA already in place and accelerated progress toward PFS and permitting, the Lawyers-Ranch Project stands out as a premier, advanced-stage asset with significant near-term production potential and considerable exploration upside," Webster said.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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