Hemlo Mining Corp. Announces Increased Mineral Resource Estimate for the Hemlo Gold Mine
Hemlo’s resource growth fuels optimism as the company navigates the critical challenges of execution and cost creep in its transition to an owner-operator.
Hemlo Mining Corp. announced an updated Mineral Resource Estimate effective December 31, 2025. Measured and Indicated resources increased 34% to 4.8 Moz Au, driven by 254 new drill holes, geological reinterpretation, lower cut-off grades, and a higher long-term gold price assumption of $2,500/oz, up from $1,900/oz. Inferred resources increased 39% to 0.9 Moz Au.
The company identified a new A-Zone extension containing 0.07 Moz Au Inferred, extending from surface to approximately 120m depth. The 130,000m 2026 exploration drilling program is approximately 35% complete, with ~45,000m drilled year-to-date. A comprehensive Mineral Resource and Mine Reserve update and Technical Report are targeted for the second half of 2027.
Sensitivity analysis shows Measured and Indicated resources range from approximately 4.1 Moz at $1,900/oz to approximately 5.5 Moz at $3,000/oz.
Hemlo Mining Corp. (HMMC) reported a 34% increase in measured and indicated resources, a growth figure that is partially driven by price assumptions. Sensitivity analysis indicates that at the prior gold price assumption of $1,900/oz, the resource increase would have been approximately 16%.
Following the news, the market reacted negatively, with the stock price falling from $6.70 on June 15 to $5.49 on June 24. This decline suggests investors are discounting the impact of the price assumption and focusing on execution risks, particularly regarding delayed cost guidance and an increase in all-in sustaining costs (AISC).
The update reinforces Hemlo Mining’s brownfield growth narrative but does not materially alter the company's near-term financial profile or resolve the execution uncertainty that has weighed on the stock since its February peak.
Hemlo Mining Corp. is a Canadian gold producer focused on the Hemlo Gold Mine in northwestern Ontario. The company acquired the asset from Barrick Mining Corp. in November 2025 for approximately $1.1 billion. The camp has produced approximately 25 million ounces of gold since 1985.
Hemlo Mining’s current strategy focuses on maximizing asset value through improved operating efficiency, production growth, and mine life extension via brownfield exploration. The company successfully transitioned to an owner-operator model in Q1 2026.