Murchison’s Betty Zone getting ready to show us what she’s made of
There is absolutely no doubt that as the world moves towards achieving a lower carbon footprint the metals that go into creating the building blocks for EVs, battery storage, and other infrastructure will continue to see growing demand. It can also be said that the pandemic has shone a giant spotlight on the security of supply for just about everything. Compounding this, global positioning amongst the most powerful nations has further emphasized the importance of supply chains and domestic capabilities.
Well, Canada is here to help, both ourselves and our many allies. We are blessed with an abundance of natural resources of every shape and color, including pretty much everything critical to the green revolution (plus a lot of the resources that have already gotten us to this place in time). One Canadian company is developing numerous projects that provide exposure to globally important minerals including Cobalt, Copper, Nickel, Zinc and Silver in two of the best mining jurisdictions in Canada and arguably the world. Murchison Minerals Ltd. (TSXV: MUR) is an exploration company focused on the exploration and development of the 100% owned Brabant Lake zinc‐copper‐silver project in north‐central Saskatchewan. The Company also owns 100% of the HPM nickel‐copper‐cobalt project in Quebec and holds an option to earn 100% interest in the Barraute VMS exploration project also located in Quebec, north of Val d’Or.
Although the Company has been active at its HPM project, including news last week about the identification of significant sulphide mineralization on surface at the PYC showing over a strike length in excess of 1.7 km. Today we’ll focus on Brabant Lake because that’s where I believe the most material news is likely to come from in the next several weeks. Close to infrastructure, the Brabant Lake project is located 175 kilometres northeast of La Ronge, Saskatchewan, accessed year-round via highway #102 with direct access to the power grid. The Brabant-McKenzie VMS deposit contains indicated and inferred resources of almost 10 million tonnes and is open to expansion. The surrounding 626.9 km2 land package is highly prospective for additional VMS deposits, which tend to occur in clusters. This is a solid starting point on the road to completing a Preliminary Economic Assessment (PEA). But what has me most interested in the near term is the prospective new play approximately 1 km to the northeast and along trend of the existing Brabant-McKenzie deposit called the Betty Zone.
Murchison drilled two holes into the Betty Zone showing in the winter of 2021 and intersected VMS- style massive-sulphide mineralization in both holes. The best assay was in hole BZ21-002, which intersected 4.40% zinc, 1.33% copper, 12.95 g/t silver from 280.73 to 281.65 metres (0.92 m), including 0.42 m at 3.76% zinc, 2.40% copper, 21.70 g/t silver and 0.12 g/t gold. The observed mineralization and corresponding metamorphosed VMS-type alteration in these 2021 winter drill holes appear similar to what is observed at the Brabant-McKenzie Deposit. But critically, a borehole electromagnetic survey was conducted in these two holes at the conclusion of the 2021 winter drill program. The resulting data indicates that the holes narrowly missed a large conductive body located immediately down dip of the observed mineralization and is approximately 100 to 300 metres below surface. Initial modeling suggests the anomaly has a 700-metre strike length. This anomaly is considered highly prospective, and drilling has just commenced on two new holes into the heart of this anomaly.
With roughly 109 million shares outstanding, Murchison has a market cap of approximately $8.2 million based on yesterday’s closing price of $0.075. With an already high-grade VMS deposit hosting a NI43-101 compliant resource of 2.1 Mt @ 10% ZnEq (Indicated) and 7.6 Mt @ 6.3% ZnEq (Inferred) and an active drilling program this could be an inexpensive option for exposure to materials essential for the build out of the green energy revolution. Murchison has assembled an impressive set of prospect rich assets. Now they have to prove up an economic resource that they can share (for profit of course) with the world.
Dean Bristow has been involved in the North American Crude Oil business for 30 years including Energy Trading, Infrastructure Development, Transportation, and Refining. During that ... <Read more about Dean Bristow>