Moneta Porcupine Mines has contracted Micon International to complete a preliminary economic assessment (PEA) on the South West deposit within its Golden Highway project, in Ontario, Canada.

The results of the PEA are due to be delivered later in 2020, with the study set to review several development scenarios for the deposit, the company said.

The South West deposit was recently the subject of a resource update, which resulted in a 58% increase in indicated resources to 472,000 oz within 3.24 Mt at a grade of 4.53 g/t Au, and a 40% increase in inferred resources to 1.06 Moz within 7.3 Mt at 4.37 g/t Au. This assumed underground extraction using a 3 g/t Au cutoff grade.

The company recently completed its 2019/2020 winter drill program early at Golden Highway in order to maintain a healthy and safe work environment for its employees and contractors, in support of efforts to stop the spread of the COVID-19 coronavirus. A total of 36 holes will have been completed, it said.

Drilling was scheduled to be completed by mid-April and has been successful in testing the resource extensions of the Windjammer South, West Block and 55 deposits as well as intersecting new mineralisation at the Westaway and Halfway targets, according to the company. The core will now be processed in isolation and the results will be released as they become available, Moneta said.

The data and assays from this program will be used for new resource updates for Windjammer South, South West and 55 deposits, plus an initial mineral resource estimate at Westaway.

Gary O’Connor, CEO and Chief Geologist, said: “We will continue the new resource expansion work, however at a slightly slower pace due to the physical distancing of employees.”

The Golden Highway project covers 12 km of prospective ground along the Destor-Porcupine Fault Zone in the Timmins Gold Camp, of which 4 km hosts the current NI 43-101 mineral resource.