Wednesday 7th December 2016

Resource Clips


2010 Year In Review Part 1

By Ted Niles and Kevin Michael Grace

ResourceClips.com featured a number of companies in 2010. Here’s an update on five of them:

Golden Hope Mines Ltd GNH:CA
(click for original article)

Though the Bellechase-Timmins area of Quebec’s southeast Beauce region was, as Golden Hope President Frank Candido observes, the site of “the first Canadian gold rush,” the following 150 years saw it largely untouched. Until now. In September Golden Hope reported assays from its Bellechase Gold Project up to 7.19 g/t gold over 10 metres and 3.68 g/t over 34 metres (including 103 g/t over 1 metre). Candido commented, “We believe that what we have is not just a deposit but an entire belt. Where we’re drilling represents less than 5% of that belt—it’s probably around 1%. We have a nuggety deposit. By that, we know for a fact, that no matter what the assay results are, the average grade will forever be around 2 grams. When we did an 800-tonne bulk sample this year, we came out with an average grade of 3 grams. The grade is probably even better than that — between 3 and 4 grams.”

Golden Hope continues to drill at Bellechase to achieve its objective of proving the first gold resource estimate for southeastern Quebec. Having recently completed a private placement financing of $3.7 million, Golden Hope could be well-positioned to do so.

2010 Year In Review I

Romarco Minerals Inc R:CA
(click for original article)

Not quite 40 years before Canada was having its first gold rush in Bellechase-Timmins, South Carolina was in the throes of its own. This led to the Haile Gold Mine—just outside of Kershaw, SC—which, by 1900, was one of the largest gold producers in the eastern United States. As with so many of these historic mines, there was a strong sense that Haile’s surface was only scratched. Romarco Minerals bought the property in 2007, and since January 2008 has been, in President/CEO Diane Garrett’s words, “drilling 24 hours a day: about 800 holes over 200,000 metres.” In September Garrett told ResourceClips.com that the Haile Gold Mine is “one of the most significant discoveries in our industry in the last 10 years.”

Drill results continue to bear out Garrett’s words, with Romarco reporting most recently (October 28) assays including 4.1 g/t gold over 51.2 metres, 1.3 g/t over 68.6 metres, 4.2 g/t over 33.4 metres and 10.9 g/t over 66 metres. More important is what these near-surface, high-grade results mean: the possibilty of an open-pit scenario. As Garrett explained, “If we can do that, then we can move it up into the mine plant quicker. Which will add more to the economics and the production profile.” Romarco’s graduation in November from the TSXV to the TSX further confirms that its star is on the rise.

Queenston Mining Inc QMI:CA
(click for original article)

Ontario’s Kirkland Lake Camp presents yet another example of an historic mining area that appeared spent by the end of the twentieth century but is now revitalized. Next door to the Lake Shore Mine—once the second biggest gold producer in the world—Queenston’s Upper Canada Mine historically produced more than 3 million ounces gold. In November Queenston President/CEO Charles Page told ResourceClips.com, “This project wouldn’t make any sense at $400 an ounce gold. Typically, production costs in this area are going to be on the order of $500 an ounce. But here we are at $1,300 an ounce, and that’s a huge profit margin.” And you can add to that Upper Canada’s drill results: most recently (November 30) including 10.43 g/t gold over 17.3 metres, 2.37 g/t over 68 metres, 1.65 g/t over 60.4 metres and 1.29 g/t over 55.6 metres.

Page faces an agreeable dilemma—with the investment in October of $35-million by Agnico-Eagle Mines Ltd AEM:CA, “Queenston could become a significant producer on its own, or Agnico-Eagle could say, ‘We’re going to take you out at a premium and make all your shareholders happy.’” While Page’s ambition of building a milling facility capable of producing 250,000 ounces a year is bold, Queenston’s closing (November 23) of a $20-million private placement—in addition to the $70-million in cash it already had on hand—suggests that it might go it alone.

Moneta Porcupine Mines Inc ME:CA
(click for original article)

Moneta Porcupine President/CEO Ian Peres is in no way conflicted over the future of his company’s Golden Highway Project. “We are exploring to continue to build gold resources,” he told us in November. “And when we bring the gold resources up to critical scale … the objective is to undertake a pre-feasibility study and, ideally, to do a deal with a mid-tier or major.” Situated on the Destor Porcupine Fault Zone—one of the Abitibi region’s most prolific gold-bearing structures—the Golden Highway Project represents the largest land-holding on the Belt (10%) after neighbouring “elephants” Goldcorp, Lake Shore Gold and St Andrew Goldfields. No mean feat for a company with a $50 million market cap.

Moneta has been completely revamped under Peres’ leadership, with a new board and a thrifty, drill-focused agenda. The Golden Highway continues to yield solid grades, most recently (December 17) 2.83 g/t gold over 49.4 metres, including 3.9 g/t over 11.5 metres. According to Peres, “There is no big nugget driving the interval. This is strong continuity of mineralization.”

Alderon Resource Corp ADV:CA
(click for original article)

In a refreshingly candid moment Moneta’s Ian Peres told ResourceClips.com, “It is a risky and frankly stupid proposition to go into production.” In November, Alderon Resource Corp President and CEO Mark Morabito, equally candid, countered, “Running your company as though you’re going to be bought out is a mug’s game, a recipe for failure.” Perhaps the difference of opinion is explained by this—Alderon is looking for iron ore. And all indications are that the company has found it on the Kami Iron Property in Labrador, reporting since August grades as high as 30% over 207 metres, 28% over 691 metres, 30% over 429 metres, 31% over 468 metres and 30% over 604.5 metres.

A number of factors are working in Alderon’s favour. Demand for iron ore is rising 10% annually. The price is also likely to increase. And while iron ore can be found in relative abundance the world over, because it is a high-volume business it is highly cost-sensitive. Morabito explained, “Brazil, Africa and Canada’s subarctic are not connected to infrastructure, which means the capital expenditures required are in the billions … They will be mined, because the deposits are very good, but the timeline to raise the necessary funds and build the infrastructure will be 10 years. We can be in production in three to four.”

Anyone who might doubt Morabito’s seriousness should look at the company’s activity since we spoke with them: a $20-million bought-deal private placement closed December 16 and, on December 8, completion of a 100% interest in the Kami Ore Property.

(Part 2 of Year in Review)

(Part 3 of Year in Review)


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