Inomin Mines Intercepts 169m @ 23% Magnesium And 0.19% Nickel At Beaver South

The South zone is one of six mineral zones identified at Beaver, prospective for hosting critical mineral deposits. Previous drilling by the company in 2021 intersected mineralization in the Spur and North Lobe zones over a strike length of 5.7 kilometres. All holes encountered significant intervals of mineralization, with drill-hole B21-02 intersecting 252.1m grading 20.6% magnesium, 0.16% nickel, and 0.33% chromium, which generated quite a bit of excitement last year when the results were announced. Preliminary met work indicated excellent recoveries for magnesium (up to 99%) and average recoveries for nickel (58%).

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Please note: the views, opinions, estimates, forecasts or predictions regarding Inomin Mines’ resource potential are those of the author alone and do not represent views, opinions, estimates, forecasts or predictions of Inomin or Inomin’s management. Inomin Mines has not in any way endorsed the views, opinions, estimates, forecasts or predictions provided by the author.

The recently completed drill program consisted of 4 holes (968m), and targeted the South and Ring zones, located approximately 6km and 4.5km respectively of the discovery zone drilled in 2021. The assays of two holes were reported in the September 6, 2023 news release:

The South Zone is a 500 x 500 metre strongly magnetic zone as defined by ground magnetics. Drilling confirmed mineralization occurs in two parallel shallow dipping serpentinized bodies with an estimated true thickness of 160 metres. The mineralization appears to be increasing in thickness toward the north. The location of the drill collars can be seen on the following map:

If I was to estimate very roughly based on just these two holes, and extrapolating the magnetic highs, we could be looking at another mineralized envelope of 800x500x130x2.75(density) = 143Mt, which would add to the earlier estimated 400Mt for the northern targets drilled before. CEO Gomez was pleased with the results so far:

"Our initial drilling in the South Zone has generated additional outstanding results at Beaver. South Zone drilling was designed to test a prominent mag target located 2 – 4 kilometres south of the Spur and North Zones where our maiden discovery hit long intervals of mineralization. To date, five high magnetic zones hosting significant mineralization have been identified at Beaver. Remarkably, high-grade magnesium, sulphide nickel and other metals, including gold, have also been discovered in moderately magnetic areas, specifically the North Bear Creek Zone. Beaver’s exceptional drill results demonstrate the property’s excellent potential for multiple, bulk-tonnage, critical mineral deposits. We look forward to reporting analytical results for the balance of the summer drilling program as results become available."

I have no doubt the remaining two drill holes will provide equally good results. In the meantime, the project also contains the Lynx property, and I have high hopes for this claim package. Sampling and an airborne magnetics survey showed excellent results, perhaps even better compared to Beaver. The following map shows magnetics:

The next map represents stream sediment sampling for nickel:

As a reminder, the regional stream sediment (RGS) nickel data at Beaver-Lynx is among the highest in British Columbia. Furthermore, the project is located between two of the largest polymetallic mines in the province – Taseko’s Gibraltar mine and Imperial Metal’s Mount Polley operation, in other words “elephant country. Also keep in mind: the current magnesium price would generate a gross metal value of US$656/t at drill grades of about 20% Mg, which is equivalent to a 7.7% copper grade, so really robust. The Gibraltar mine by comparison grades only 0.27% copper equivalent –

copper and other metals mined, an average grade which isn’t uncommon for BC operations. 

As all-in drill costs per meter at Beaver-Lynx are about C$300/m, this program cost about C$300k so there must be cash left for more drilling as the treasury contained about C$700k in June. It seemed impatient investors, waiting for Lynx drilling, used the good news as a liquidity event. CEO John Gomez responded with the following: “We’re delighted with the latest drill results which confirms the discovery of a sixth substantial mineral zone. As we continue to advance the project, by finding more mineralized areas and/or delineating resources, we will increase the project’s value and ultimately our company’s valuation.” 

I’m also curious what follow-up strategy CEO Gomez has in mind after all results will be in from Beaver, as the big target seems to be at Lynx. He stated, “Going forward we want to continue drilling at Beaver as well as complete inaugural drilling at the larger Lynx area. If we find similar mineralization at Lynx, we’ll confirm a district-scale critical mineral system.” 

The company is also working hard on the 100% owned 494 hectare La Gitana project in Oaxaca State in southwestern Mexico with 8,230m of drilling over 38 holes completed in 2005-2006 on the property by former co-owners Chesapeake Gold and Goldcorp. About half of the holes hit significant gold and silver mineralization, most starting close to surface, including the first hole that intersected an impressive 133.5m of 1.78 g/t gold and 100.7 g/t silver.

Given available drilling data, just 20% verification drilling (about 6 holes) would be needed for a NI43-101 compliant resource. I estimated the mineralized potential at 500-600koz Au for now, and management thinks there is even potential for 1Moz Au as the deposit is open to expansion in all directions. As Inomin management is busy renewing the discussions with the local communities, I wondered what the status update is for the moment. CEO Gomez had this to disclose: “We’re pleased to continue to interact with community officials about the project, and we hopefully see soon how working together can be beneficial to all stakeholders.”

Conclusion

The initial drilling results at Beaver South were fully in line with the 2021 results, adding another estimated 140Mt to an already impressive estimated 400Mt mineralized envelope. Two more results are pending in the coming weeks, and Inomin is busy designing the right strategy to advance Beaver-Lynx further. Lynx especially has my attention, as the magnetics and sampling indicate more compelling targets compared to Beaver. At the current very low share price Inomin remains an interesting opportunity. Stay tuned!      

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Disclaimer:

The author is not a registered investment advisor, and currently has a position in this stock. Inomin Mines is a sponsoring company. All facts are to be checked by the reader. For more information go to www.inominmines.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.