Crystal Lake Mining (CLM.V), announced it has managed to identify a new large target area – the so-called Chachi Corridor – with the high-grade gold potential on the eastern side of its Newmont Lake Project (Northwest B.C.’s Eskay Camp). Accordingly, the area is considered to be “notably underexplored”, and will act as one of the focus areas this upcoming summer.
“The newly exposed prospective ground makes the entire Chachi Corridor a high priority target”, the company said in a statement.
The Lake Country-based firm, which is engaged in the identification, acquisition and exploration of prospective mineral properties in Canada, continues to make steady progress in identifying and creating new mineral discoveries in Canada.
This news comes only a few weeks after the company announced it has successfully raised nearly $4.6 million from a private placement financing. In March, the company was forced to increase its private placement due to strong investor demand.
The majority of the raised funds, at least $3 million, will be used to complete the first phase of Crystal Lake’s 2019 drilling and exploration program at the Newmont Lake Project, while the rest is expected to be used mainly for general working capital purposes. As of today, Crystal Lake Mining has a market share of $33.3 million, which signifies a 38% increase compared to $24 million in February this year.
In order to acquire a 100% interest in the Newmont Lake Project, the firm must spend at least $8 million on exploration over the next three years; CLM pays Romios Gold Resources $2 million in installments and issue 12 million Crystal Lake shares to Romios over a three-year period.
Although the recently published “Risks and opportunities for mining – Outlook 2019” report published by KPMG still sees Canada as one of the major global hubs in the mining industry, its companies face great challenges in the context of regulation and scrutiny in order to get their key mining projects going. The Mining Association of Canada (MAC) has also warned that its companies are falling behind in the new global mining order.
“The value of total projects planned and under construction from 2018 to 2028 has been reduced by 55% since 2014, from $160 billion to $72 billion”, it is stated in the “Facts and Figures” annual report released by MAC.
For this exact reason, the new Chachi Corridor project is seen as a boost, not just for Crystal Lake Mining and its ambition to take a big step towards a more notable role in Canada’s crowded mining sector, but also for Canada’s entire mining industry.
Overall, Crystal Lake Mining is well-positioned to gain larger market share, particularly given the overall potential of the Newmont Lake Project, in addition to the expected higher demand for minerals given the global trend of a mass electrification.