Hemlo Mining Corp. (TSXV: HMMC), a new Canadian mid-tier gold producer, has kicked off an ambitious 130,000-metre exploration drilling program at its Hemlo Gold Mine near Marathon, Ontario. The program is designed to extend mine life, de-risk near-term production plans, and identify new near-mine growth opportunities.
This drilling campaign represents a major step in Hemlo’s strategy to unlock additional value from one of Canada’s most prolific gold deposits. The results are expected to form the basis for an updated technical report, scheduled for release in the second half of 2027.
Drilling Program Breakdown
Hemlo’s 2026 program consists of three main components:
- Resource Conversion Drilling (70,000 metres): Targeting the conversion of Inferred resources to Indicated status, supporting future mineral reserve growth.
- High-Definition Drilling (30,000 metres): Focused on short-term mine plan de-risking to improve geological confidence and operational predictability over the next two years.
- Growth Drilling (30,000 metres): Testing new mineralized zones beyond the current resource footprint, aiming to demonstrate the broader scale and long-term potential of the Hemlo system.
“This 130,000-metre drilling program represents a step-change in ambition for Hemlo,” said Jason Kosec, President and CEO. “With a strong mineral reserve base, robust economics, and existing infrastructure, we believe this program positions us to extend mine life, grow reserves, and create long-term value in a supportive gold price environment.”
Strong Existing Resource Base
The Hemlo Gold Mine has a robust foundation of mineral resources and reserves:
- Probable mineral reserves: 2,321 koz contained gold
- Open-Pit: 781 koz at 0.85 g/t
- Underground: 1,540 koz at 3.74 g/t
- Measured & Indicated resources: 3,626 koz contained gold
- Inferred resources: 624 koz contained gold
A recent Pre-Feasibility Study (PFS) indicated an after-tax NPV5% of approximately US$1.1 billion at a long-term gold price of US$2,610/oz, increasing to US$1.6 billion under higher gold price assumptions. The study highlights Hemlo’s leverage to gold prices, making the current drilling program an attractive investment for growth.
Target Zones and Growth Potential
Key targets for the 2026 drilling campaign include:
- B-Zone Footwall: Footwall-hosted mineralization with potential for extensions beyond the current footprint.
- South Rim: Gold-quartz-carbonate veins along the southern contact of the Moose Lake Porphyry.
- E-Zone and Horizon Zone: Newly-defined zones west of the C-Zone, open at depth and along strike.
- Highway Zone: Shallow mineralization between historic Golden Giant and David Bell shafts, potentially convertible to Indicated resources.
Successful drilling in these areas could increase Indicated resources, support mine life extension, and improve operational flexibility and economics.
Investor Perspective
Hemlo Mining is positioning itself as a mid-tier Canadian gold producer with growth upside. The combination of a proven resource base, infrastructure-ready mine, and an aggressive exploration strategy creates potential for near-term value creation. For investors, Hemlo’s leverage to gold prices and focus on brownfields exploration at a historically productive asset offers a compelling growth story in the gold sector.
The 2026 program demonstrates Hemlo’s commitment to extending mine life, converting resources, and exploring high-potential near-mine zones. Investors should monitor results as drill data is released, which may provide insights into both reserve growth and long-term expansion potential at Hemlo.
Forward-looking information is subject to risks and uncertainties. Please read our full DISCLAIMER.
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