This report is based on public company disclosures, filings and announcements reviewed by GSN; figures are as stated by the company and have not been independently verified.

Dundee Corporation (TSX: DC.A) released a news update on September 22, 2026, detailing the latest assay results from its ongoing resource infill drilling program at the Shovelnose gold property. The property is located in southern British Columbia and is operated by Westhaven Gold Corp, a company in which Dundee holds a joint venture interest. The announcement highlights new high-grade gold and silver intersections as the drilling campaign approaches its scheduled completion.

According to the company, the sixth batch of assay results from the South Zone deposit shows continued high-grade mineralization. Dundee reported that the 35,000-meter infill drilling program is on track to finish by the end of September. The company stated that field activities have expanded to include a CDN$4,000,000 sonic drilling program designed to support geotechnical and hydrogeology investigations. These investigations are intended to advance the pre-feasibility study for the South Zone, which the company targets to complete in the second half of 2027.

The primary source document lists several specific drill hole intersections. Dundee reported that hole SNR26-108 returned 37.89 meters grading 5.29 grams per tonne of gold and 32 grams per tonne of silver. Another highlight, hole SNR26-129, returned 14.00 meters grading 13.09 grams per tonne of gold and 106 grams per tonne of silver. The company noted that these results contribute to a total of 72 reported drill holes for the South Zone mineral resource drilling program. Dundee stated that the consistency of these results supports its view of the deposit quality.

Jonathan Goodman, President and CEO of Dundee Corporation, said in the release that the program is transitioning from resource definition to exploration and technical work required for mine development. The company indicated that its capital is intended to accelerate this progression. Dundee completed a strategic earn-in agreement with Westhaven on February 23, 2026. Under this agreement, Dundee may earn up to a 60 percent interest in Westhaven’s four Spences Bridge Gold Belt properties through staged expenditures totaling up to CDN$85,000,000. The current activities are funded under the first phase, which commits a minimum of CDN$30,000,000.

Key terms

Resource infill drilling is a method used by mining companies to increase the density of drill holes within a known mineral deposit. This process reduces geological uncertainty and allows for a more accurate estimation of the quantity and grade of the mineral resource. It is a standard step before a company can define a reserve that is economically mineable.

A pre-feasibility study is a comprehensive technical and economic analysis of a mining project. It evaluates the viability of the project at a more detailed level than a preliminary study. The study assesses mining methods, processing techniques, infrastructure requirements, and financial projections to determine if the project can proceed to final feasibility and construction.

Mineral resource estimates are calculations of the tonnage and grade of identified mineralization. These estimates are categorized based on the level of geological confidence, ranging from inferred to measured. Updated resource estimates are critical for supporting economic studies like pre-feasibility studies and for determining the potential scale of a future mine.

Why it matters

High-grade drill results in an infill program typically reduce the risk associated with resource estimation. When a company successfully infills a deposit with high-grade intersections, it may justify a larger resource estimate or a higher grade classification. This can improve the economic modeling for a project. However, resource estimates are not guarantees of future production. They represent geological data that must be converted into reserves through further engineering and economic studies. The completion of a pre-feasibility study is a significant milestone, but it does not constitute a final investment decision. Mining projects require substantial capital and regulatory approvals before production begins.

What to watch

Dundee stated that the resource infill drilling program is expected to be completed by the end of September 2026. The company also indicated that the exploration drilling program will increase from one to four drills following the completion of the infill work. Dundee targets the completion of the South Zone pre-feasibility study in the second half of 2027. The documents reviewed do not give a timetable for the final decision on mine construction.

Sources