IM October 2024 – Gold projects lift drilling to a rebound MOM

Drilling metrics showed a significant month-over-month increase in September. The total number of drillholes rose 65% to 3,976, driven by a 98% increase in gold reporting and a 50% rise in specialty metals. Additionally, the number of drilled projects increased 10% to 203, owing to a surge in gold reporting. Consequently, the total number of companies reporting rose to 192. In terms of drilling stages, minesite projects remained stagnant at 33, while early-stage and late-stage projects increased 16% and 10%, respectively.

Access September drill results data in the accompanying Excel spreadsheet.

Drilling activity jumped 10% in September, reaching 203 projects reported, led by a 14% increase in gold projects to 116. Copper, lead-zinc, nickel and platinum group metals (PGM) projects also increased, though none exceeded five projects reported. In contrast, silver, minor base metals and specialty metals modestly declined. The number of drillholes reported soared 65% month over month — the largest increase since January 2023 — primarily attributed to a near doubling of gold drillholes. Specialty metals also rebounded with a 50% increase, though still below the year-high in July 2024. Nickel, PGMs and silver minorly increased, while copper, lead-zinc and minor base metals declined month over month.

Australia, Canada and the US remained at the forefront in total drilled projects reported, with a month-over-month increase after experiencing declines in August. Australia recorded the largest increase in September, rising by 15 to 68 projects. Meanwhile, projects in the US and Canada marginally increased to three and two projects, respectively. In contrast, Peru, Mexico and Chile reported month-over-month declines.

September's top result came from TSX Venture Exchange-listed Minsud Resources Corp.'s Chita Valley project in Argentina. The company reported an intersect of 372 meters grading 27% zinc, 0.07 grams of gold per metric ton, 9.3 g/t silver, 0.14% copper, 7% lead and 0.0049% molybdenum. The company anticipates the completion of a maiden mineral resource estimate for the Chinchillones deposit by the end of the 2024 December quarter.

The second-best result also came from TSX Venture Exchange-listed CanAlaska Uranium Ltd.'s West McArthur early-stage uranium project in Saskatchewan that reported an intersect of 16.20 meters grading 9.30% uranium. The company is focused on developing its 2025 exploration program and budget to follow up its drilling results.

Toronto Stock Exchange-listed Dundee Precious Metals Inc.'s Coka Rakita gold project in Serbia rounded out September's top-third result with an intersect of 80 meters grading 53.18 g/t gold and 0.15% copper. The company announced that the prefeasibility study has advanced and is on track for completion in the March quarter of 2025.

Australian Securities Exchange-listed Deep Yellow Ltd. reported the most drillholes in September, with 396 holes drilled at its Omahola uranium project in Namibia. The company announced that based on the established measured mineral resources from the successful drill program for the Tumas deposit, the updated reserves will extend the operating life of Tumas to over 35 years. Detailed engineering for the project is currently underway and is expected to provide a control capital estimate and a detailed execution schedule.

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.