Ex-Barrick Hemlo logs high-grade gold in new zone

[Ben Graham]

A view of the Hemlo mine in Ontario. Credit: Barrick Mining.

Hemlo Mining (TSXV: HMMC) said new drilling at its namesake mine in Ontario yielded high-grade gold in a new area of the property.

Highlight hole 6702503 cut almost 11 metres grading 4.65 grams gold from 165 metres downhole and 5 metres grading 15.79 grams gold from 534 metres depth, Hemlo said Monday in a statement. Another hole, 6702502, cut 10 metres grading 2.24 grams gold from 545 metres downhole.

Toronto-based Hemlo was created late last year when Calgary-based Carcetti Capital (TSXV/NEX: CART.H) acquired Barrick Mining’s (NYSE: B; TSX: ABX) last operating gold mine in Canada for up to $1.1 billion in cash and stock. The new company has stepped up exploration on the property to identify additional deposits.

“We view the results as positive for HMMC shares as they support extending exploration work on this zone into 2026,” Scotia Capital mining analyst Ovais Habib said in a note.

“With mineralized intercepts returned proximal to existing underground development but outside of the current resource estimate, we expect the latest results could have positive implications on the company’s next mineral resource update,” which should be released later this quarter, he added.

Hemlo shares rose 5.3% to C$6.95 Monday morning in Toronto, boosting the company’s market value to about C$2.1 billion ($1.5 billion). The stock has doubled since it began trading last month.

Open at depth

The E-Zone is a newly defined mineralized area at the Williams property, which is located about 300 metres west of existing underground infrastructure at Hemlo. Crews drilled six holes in the E-Zone last year covering about 4,240 metres.

Current drilling indicates the E-Zone extends about 1,000 metres vertically and about 500 metres east–west, Hemlo said. The zone remains open at depth, offering potential to add future mineral resources.

“Despite more than 40 years of mining history at Hemlo, the 2025 drilling program, initiated by Barrick Mining, continues to demonstrate that additional mineralized zones remain to be discovered within the camp,” CEO Jason Kosec said.

“The E-Zone, located near surface and close to existing underground development, represents an attractive opportunity to potentially increase future mineral resources and reserves at Hemlo. Advancing this zone has the potential to simplify mining sequences and provide optionality for increased mining rates in the future.”

Other highlights released Monday include hole 6702501, which cut 10 metres of 2.26 grams gold per tonne from 206 metres downhole, as well as 5 metres grading 19.11 grams gold from 505 metres depth. Hole 6702505, meanwhile, intersected 12 metres of 7.08 grams gold from 599 metres depth.

Volcanic rocks

Gold in the E-Zone is mainly found in volcanic and sedimentary rocks, where several overlapping, branching quartz-carbonate veins contain the yellow metal. The shape, structure and size potential of these veins are similar to those of the long-producing C-Zone.

Some 3.7 million oz. of gold have historically been producedfrom underground and open pit operations in the C-Zone. Mineralization in the area extends about 2 km deep and is still open.

Hemlo plans to advance development this year by driving an exploration drift of about 300 metres to access the E-Zone. It will also conduct additional drilling aimed at testing the continuity of mineralization along strike and at depth.

Located near Marathon, about 800 km northwest of Toronto, the Hemlo mine has produced about 25 million oz. of gold from both underground and open pit operations since production began in 1985.