A resource update for Hemlo Mining’s (TSX: HMMC) namesake mine in northwestern Ontario has lifted measured and indicated resources by 34%, underscoring the growth potential of one of Canada’s longest-running gold camps.
Hemlo is now estimated to hold 96.9 million measured and indicated tonnes grading 1.55 grams gold per tonne for 4.84 million oz. gold of contained metal, the Toronto-based company said Thursday in a statement. That’s about 1.2 million more contained ounces compared with the resource that was outlined in a 2025 technical report.
Inferred resources rose 39% to 12.1 million tonnes grading 2.22 grams gold for 866,000 oz. gold, Hemlo also said. The update, which is dated Dec. 31, reflects drilling completed since the previous estimate, improved geological modeling and a higher gold price. Hemlo now assumes that gold will average $2,500 per oz. over the long term, up from $1,900 previously.
The resource update “reinforces our thesis of unlocking value through reinvestment,” TD Securities mining analyst Steven Green said Thursday in a note. It also “demonstrates the continued scalability of the Hemlo system,” he said.
Hemlo shares rose 3.8% to C$5.70 Thursday morning in Toronto, valuing the company at about C$1.7 billion ($1.2 billion). The stock has traded between C$3.63 and C$8.05 in the past year.
Resource conversion
Much of the resource growth should translate into reserves in the company’s upcoming technical report, Green added. Slated for release in the second half of 2027, the study will incorporate ongoing drill results, open pit optimization and updated mine plans.
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.
Hemlo is in the midst of a 130,000-metre drilling program that focuses on resource conversion and testing multiple near-mine growth targets such as the E-Zone, Horizon Zone, B-Zone Deep, South Rim and A-Zone. About 45,000 metres have been completed so far this year.
Underground measured and indicated resources climbed 40% to 24.9 million tonnes grading 3.53 grams gold for 2.83 million oz., Hemlo said Thursday. Open-pit resources increased 25% to 2.01 million oz. gold.
The updated estimate incorporates the newly identified A-Zone, which hosts 635,000 inferred tonnes grading 3.43 grams gold for 70,000 oz. gold of contained metal. It remains open in all directions.
Near-mine growth
“With nearly 5 million oz. in the measured and indicated category and a 130,000-metre drill program underway, we are encouraged by the multiple near-mine growth opportunities across the camp,” CEO Jason Kosec said in Thursday’s statement.
“Following decades of production at lower gold prices and periods of underinvestment, we continue to believe significant potential remains within multiple parallel mineralized structures located near existing infrastructure.”
Located near Marathon, about 800 km northwest of Toronto and 350 km east of Thunder Bay, the Hemlo mine has churned out about 25 million oz. of gold from both underground and open-pit operations since production began in 1985.
The camp was discovered in 1981 after prospectors found gold-bearing boulders. Over the following decades, the area hosted three operating mines: Williams, David Bell and Golden Giant – the last two of which are now closed. Mining continues today from the Williams operation and associated underground zones.
