Friday 21st October 2016

Resource Clips

August, 2010

The Price is Right: A rising silver market suggests rich takings from the Crescent Mine

August 25th, 2010

Interview with Greg Stewart, President, CEO and Chairman of the Board of United Mining Group

The Coeur d’Alene Mountains are world-renowned for their beauty. Tourists flock to its beaches and trails every summer and to its ski runs every winter. Long before northern Idaho became famous as an Alpine playground, it was famous for the wealth taken from its hills. Since prospecting began in the 1880s, the Silver Valley has yielded over one billion ounces of the white metal, making it the second-greatest source in history.

Today, with silver trading around $18.50, northern Idaho stands on the brink of a new silver age.

By 1991, when silver was trading at $3.90 an ounce, the Valley was thought to be almost played out. Mining had become uneconomic, and the area had been subjected to profound environmental degradation. Today, with silver trading around $18.50, northern Idaho stands on the brink of a new silver age. And Greg Stewart, whose company controls the Crescent Mine, is looking forward to a future rich in takings but also environmentally responsible.

Stewart, President, CEO and Chairman of the Board of the United Mining Group (UMG), was born and bred in the Valley. The 44-year-old got his start in reclamation. He founded Stewart Contracting in 1992. “Because this is such a rich mining area, the area suffered from what you might call the sins of fathers.” Stewart explains. “The Idaho Department of Environmental Quality does the sampling and testing, and we go forward with the actual construction. We remove soils out of the contaminated areas and replace them with clean soil.”

Stewart Contracting evolved into United Mining Services, which recently began trading as a public company as the United Mining Group (CNSX:UMG): “In 2006, we started branching out into other areas. We acquired a fabrication company and an underground mining company, and we still do our environmental construction work.”

Stewart calls UMG “a one-stop shop.” He explains, “Right now we have a pretty good-sized crew working for U.S. Silver, doing underground mining, doing the actual drift work, raise mining, the whole spectrum. We repair and rebuild mining equipment and actually manufacture parts for that equipment.”

As befits his history, Stewart first got involved with the historic Crescent site on the environmental side. “Initially, SNS Silver purchased the Crescent Mine, and they hired us to do rehab on the existing buildings there. Then we started work on underground rehabilitation.”

What persuaded Stewart to move from contracting to ownership? Two reasons. First, “SNS spent around $12 million drilling out a reserve. Originally the lower workings of the Crescent had been flooded for some time. Their idea was that this vein extended out from the existing workings, so they launched a drill program up there proving up about a 10-million ounce reserve. That money had already been spent, so that was money we wouldn’t need to spend to find the reserve.”

We have the Sunshine Mine on one side and Bunker Hill on the other. We’re sandwiched between the two. It’s just sitting there waiting, basically

The second reason? Location, location, location. “If you look at each side of us, you have the Sunshine Mine on one side and Bunker Hill on the other. We’re sandwiched between the two. It’s just sitting there waiting, basically. To the west of us, Bunker Hill mine has produced 161 million ounces. To the east of us, practically a stone’s throw away, is Sunshine, and it’s produced 328 million ounces. Crescent in the past has produced 25 million ounces. Out of those three, it’s definitely the one that’s had the least amount of exploration with the most potential.”

What’s more, “One of the things that sets us apart from other exploration companies is that we’re close to production, about a year away. Plus we’ve got the backbone of our services company which generated a profit about $3 million a year, which certainly helps.”

Given the geography and the history, Greg Stewart thinks Crescent’s upside could be huge. He concludes, “It’s not out of the question to say there could be 100 million ounces there.”

crescent silver mine

Marathon PGM drilling confirms gold deposits in Nfld

August 16th, 2010

MAR:CA New drilling results have confirmed high-grade intercepts (as high as 88.5 grams per tonne) at its Leprechaun Gold Deposit in Newfoundland. Previous exploration revealed gold content as high as 38.3 g/t. VP Exploration David Good commented, “Hole 205 is a very important hole because it was drilled into the heart of the Leprechaun Gold Deposit where high grade intersections (greater than 15 g/t gold) from 15 drill holes, including holes 160 and 165 have partially defined a continuous zone that is currently 200 metres in strike length.”

Marathon PGM is exploring the area under an option and joint venture agreement between Marathon and Mountain Lake Resources Inc. (MOA:CA) in order to expand the life of its planned open-pit mining operation.

View Company Profile

Contact: David Leng, P.Geo. 416.849.3432, Mobile 905.537.5377

CGA Mining and Ratel spin-off African assets and float IPO

August 6th, 2010

CGA Mining Ltd (TSX:CGA) and Ratel Gold Ltd (TSX:RTL) announced today that Ratel’s IPO, a spin-off of CGA’s African properties, has closed and that 70,000,000 common shares on the TSX have been issued at 20 cents, for a total of $14 million. CGA maintains a 20% holding in Ratel. The funds will be used to finance exploration at its Segilola Gold Project in Nigeria, its Mkushi Copper Project in Zambia and for administrative costs. At Segilola, Ratel has a NI43-101 indicated resource of 520,000 ounces of gold at a grade of 4.4 grams per tonne.


Contact: Independent Chairman Mark Savage, 505.344.2822

Wildcat Exploration private placement closes

August 6th, 2010

WEL:CA of Winnipeg announced today that it has completed its $250,000 private placement of 3,571,428 units at .07 cents. Each unit comprises a common share and one-half of a common share purchase warrant, which entitles the holder to buy another common share at .14 cents in the next 18 months.
The private placement funds will be used to pay for the costs of exploration at its Rice Lake gold project and its Reed Lake copper-platinum project in Manitoba and its Foster River zinc-lead-silver project in Saskatchewan.

View Company Profile
President and CEO John Knowles

Tarsis verifies gold find in Yukon

August 4th, 2010

Tarsis Resources Ltd. (TSX VENURE:TCC) announced today that its optionee Silver Quest Resources Ltd. has confirmed the presence of high-grade gold and copper at its Prospector Mountain project in the Yukon. Silver Quest select samples returned rock samples with gold as high as 109 and 53 grams per tonne. The sampling also returned silver samples as high as 543, 509 and 470 g/t and copper samples as high as 3.16% and 2.20%. In November 2009, Tarsis announced that assays with gold values as high as 82.8 g/t had been returned.

Commenting on the results, Tarsis President and CEO Marc Blythe said, “We are very happy that Silver Quest have confirmed and built on our 2009 success and we look forward to a successful drill program next month.”


Contact person: Marc Blythe: 604-689-7644