Yorbeau Resources Inc. (YRB-T) Drilling results from the Rouyn Gold Project

Event: Yorbeau announced drill results from IAMGOLD’s 2019-2020 drill program on the Rouyn Gold Property.  

Impact: Generally positive. Results and likely pace of work suggest that IAMGOLD should maintain the option agreement. Strong results from Lac Gamble suggest potential for initial quality mineral resource. Given the shallow depth of the gold mineralization, in a conceptual scenario, this zone could be accessible via ramp starting from Yorbeau’s Astoria mining concession located < 2 km from Gamble.

Analysis

?      On May 13, 2020, Yorbeau reported drill results from IAMGOLD Corporation (IMG-T) on the Astoria area and on the Lac Gamble Zone at its Rouyn Gold Project. Assay results are from 20 diamond drill holes (6,298 m) completed on Lac Gamble Zone and 18 diamond drill holes (6,585m) drilled on the Astoria area, located ~2 km east of the Lac Gamble Zone. The Rouyn property covers a 12-km stretch of the Cadillac-Larder Lake Break and contains 4 known gold deposits along the 6-km Augmitto-Astoria corridor situated on the western portion of the property. Two of the 4 deposits, Astoria and Augmitto, benefit from established underground infrastructure. The Lac Gamble Zone is located between the Augmito and the Astoria deposits.

?      Assay results are from infill and evaluation drilling programs that may lead to an updated mineral resource estimate. Both drilling programs successfully intersected the targeted sheared Cadillac-Piché corridor which hosts the mineralized zones. Results are pending from an additional 12 diamond drill holes (4,062 m). The objective of the diamond drilling program on the Lac Gamble Zone was to continue a systematic infill drilling program at nominal 50 x 50 metre drill centres in the upperpart of the zone to support a future resource estimation. In addition, lateral extensions were also targeted to evaluate the potential to expand the zone. Salient results are up to 9.8m @ 10.4 g/t Au (including: 3m @ 22.8 g/t Au – DDH GA-19-709W2); 6.8m @ 5.9 g/t Au (including 0.9m @ 32.7 g/t Au – DDH GA-20-747); 5.8m @ 4.7 g/t Au (including 2.6m @ 7.7 g/t Au – DDH GA-20-748) and 9.8m @ 27.8 g/t Au (including 4.4m @ 58.4 g/t Au - DDH GA-20-750). We estimate the grade x true thickness metric at 23.89 g/t Au x meter for the Lac Gamble Zone. The objective of the diamond drilling program in the area of the historic Astoria deposit was to test selected exploration targets to evaluate continuity of mineralization for the potential to outline a resource. Results include up to 5m @ 4.6 g/t Au (including 1m @ 14.4 g/t Au - DDH AS-19-732); 4m @ 5.5 g/t Au (including 1m @ 13.3 g/t Au – DDH AS-19-733) and 3.5m @ 5.7 g/t Au (DDH AS-19-739) on the Astoria Area - Upper Zone. With also 9m @ 5.8 g/t Au (including 1m @ 39.2 g/t Au (DDH AS-19-741) and 2.2m @ 7.9 g/t Au (including 1.2m @ 12.3 g/t Au - DDH AS-19-738) in the Astoria Area - Lower Piché Zone. We estimate the grade x true thickness metric at 6.05 g/t x meter for the drilling in the Astoria Zone.

?      The Rouyn Gold project is located ~4 km south of Rouyn-Noranda, Québec, and ~45 km SW of IAMGOLD's Westwood mine. The town of Rouyn-Noranda has a long history of mining and is versed with political and social stability, good access and infrastructure, skilled mining personnel, within a mining-friendly jurisdiction. The Rouyn Gold project could provide IAMGOLD with an opportunity to delineate satellite resources with the objective of supplementing production at its Westwood operation. IAMGOLD likely has expertise, existing infrastructure and excess mill capacity. Recall on December 11, 2019, Yorbeau disclosed that IAMGOLD Corporation (IMG-T) had made a cash payment of $0.5M corresponding to the first of a series of interim cash payments to be made to Yorbeau in order to maintain its option to purchase a 100% interest in the Rouyn property. The December 17, 2018, definitive option agreement allowed IAMGOLD to acquire 100% of the Rouyn property (see : https://www.dhirubhai.net/pulse/yorbeau-resources-inc-yrb-t-rouyn-project-progressing-eric-lemieux/). IAMGOLD, in the second year of the option agreement, is the operator and project manager during the option period with Yorbeau having representation on a technical committee that oversees the work programs.

?      To be revisited: In response to the global COVID-19 crisis, all exploration drilling and field activities were temporarily suspended as directed by the government of Québec and shall resume subject to the guidelines and approval of the required government authorities and when judged safe to do so. Consistent with IAMGOLD's culture of "Zero Harm", IAMGOLD and Yorbeau shall implement all necessary steps to protect the health and safety of employees, contractors and local communities before resuming exploration activities. Timing for the resumption of the planned 2020 Lac Gamble drilling program shall be assessed as conditions allow. The 2020 exploration program was designed to also evaluate other selected exploration targets in the area of the historic Astoria deposit and other identified satellite targets with up to a further 5,000 m of diamond drilling planned. Current assay results from the drilling program are being compiled and integrated with the existing geological, geochemical and structural information to support the development and refinement of a preliminary deposit model. This work should also be used to support the completion of a mineral resource estimation of the Lac Gamble zone which we estimate at 0.25M oz. Au accessible by conceptual ramp.

Important Disclosures

Yorbeau Resources Inc                          

B            The Mining Analyst, in his own account or in a family related account, owns securities in excess of 10,000 shares of the issued and outstanding equity securities of this issuer.

V           The Mining Analyst has visited material operations of this issuer, namely company headquarters in Montréal. 

R            This issuer has indirectly paid the Mining Analyst. 

Update - June 11, 2020:

 IAMGOLD Maintains its Option on the Rouyn Property

https://www.yorbeauresources.com/wp-content/uploads/2020/06/2020-06-11-news-release.pdf

Yorbeau announced that in order to maintain its option to purchase a 100% interest in the Rouyn property, IAMGOLD Corporation made a cash payment to Yorbeau in the amount of $0.5M consequent to the definitive option agreement of December 17, 2018.  IAMGOLD maintains its option on the Rouyn Property and has already exceeded the minimum drilling commitment of 20,000 m of diamond drilling within the first two-years. IAMGOLD has drilled to date >30,000 m of infill and evaluation drilling programs on the Rouyn property and should resume drilling activities on Astoria in the coming weeks. Again, we highlight that the Rouyn project is located ~45 km SW of IAMGOLD's Westwood mine.