Provenance Gold's Eldorado Discovery: A Game Changer for the Mining Sector

Provenance Gold Corp. (CSE: PAU) (OTCQB: PVGDF) has made a significant discovery at its Eldorado Gold Project in Malheur County, Eastern Oregon. The company announced assay results from the first core hole drilled by Provenance (EC-01), which intersected an extensive breccia zone containing strong gold mineralization. The hole returned 2.01 g/t Au over 288.34m from surface, including 3.07 g/t Au over 175.26m, and discovered a new high-grade zone below previously known mineralization that yielded 13.18 g/t Au over 13.69m, including 21.70 g/t Au over 6.10m.

This discovery has the potential to significantly enhance the resource estimate and extend the mine life for the Eldorado project. The broad, strongly mineralized zone that stretches across the property, along with the new high-grade zone below previously known mineralization, suggests a larger, more robust deposit. With the mineralized corridor remaining open below 200m and along the strike, there is potential for additional resource growth through further drilling.

The metallurgical implications of this high-grade gold discovery are also significant. Provenance's recent metallurgical testing program demonstrated excellent gold recoveries from unoxidized sulfide samples. An overall average of 88.1% of the gold was recovered by gravity concentration followed by bulk sulfide flotation of the gravity tailings. This suggests that much of the gold at Eldorado could be recovered without the use of cyanide, which could reduce processing costs and environmental impact. Additionally, the presence of liberated free milling gold in all samples tested indicates that the gold is easily recoverable, further enhancing the economic viability of the deposit.



The presence of sulfides and oxidation significantly impacts gold recovery methods. At Provenance Gold's Eldorado Project, metallurgical testing by FLSmidth Dawson revealed that gold recoveries were excellent in unoxidized sulfide samples, with an overall average of 88.1% recovered by gravity concentration followed by bulk sulfide flotation. However, in oxidized samples like ED01, recoveries were lower at 46.1%. This suggests that gold recovery methods should be tailored to the specific mineralogy of the ore, with gravity and flotation methods being effective for unoxidized sulfides, while other standard techniques may be required for oxidized gold.

Gravity concentration and flotation can significantly enhance gold recovery from the Eldorado deposit. Recent metallurgical testing by FLSmidth Dawson Laboratories on bulk samples from Provenance's RC drilling program showed an overall average gold recovery of 88.1% using these methods. The unoxidized sulfide samples had recoveries ranging from 77.9% to 97.1%, demonstrating the effectiveness of gravity concentration followed by bulk sulfide flotation in recovering free gold and sulfides. This approach can help maximize gold recovery, even in the absence of cyanide, making it an attractive option for sustainable and efficient mining operations.



In conclusion, Provenance Gold's Eldorado discovery has the potential to significantly enhance the resource estimate and extend the mine life for the project. The metallurgical implications of this high-grade gold discovery are also significant, with potential impacts on recovery rates and processing costs. The presence of sulfides and oxidation significantly impacts gold recovery methods, and gravity concentration and flotation can significantly enhance gold recovery from the deposit. As Provenance continues to explore and develop the Eldorado project, investors should closely monitor the company's progress and the potential implications for the mining sector.