Wednesday 26th October 2016

Resource Clips

Year in Review Part 2

By Ted Niles and Kevin Michael Grace featured a number of companies in 2010. Here’s an update on five of them:

Evolving Gold Corp EVG:CA
(click for original article)

The “underappreciation”—to use CEO Bob Barker’s word—of Evolving Gold Corp’s Rattlesnake Hills Project is perhaps explained by the fact that gold isn’t generally associated with Wyoming. Oil, yes. Coal and natural gas? Certainly. But gold? It is now. The news flow from Rattlesnake has been thick and fast since we spoke with them in October, with assays reported as high as 1.31 g/t gold over 405.4 metres (December 1), 1.28 g/t over 332.2 metres (December 13) and 1.5 g/t over 251 metres. The sort of results that confirm the wisdom of Goldcorp’s July purchase of 15% of EVG.

To the question of how far Rattlesnake is from production, Barker replied, “We are getting to the stage of looking at doing a more serious economic evaluation this coming year. We’re going to look in more detail at the metallurgical issues, but we think we’re at a point where we can start to take serious steps in that direction.” Evolving has taken an important step in another direction, graduating December 7 to the TSX from the TSXV.

Disclaimer: The principals of OnPage Media Corp are contractors to, and hold options in, Evolving Gold Corp.

Year in Review Part 2

Sable Resources Ltd SAE:CA
(click for original article)

From Wyoming, we move to another underappreciated project, Sable Resources Ltd’s Baker Mill in British Columbia. President and CEO Mel Rahal told us in December that his company’s share price—currently around $0.24—was “ridiculous.” He explained, “If you had to build that mill now, it would cost you $80 million, and it would take you five years to get approvals.”

But Rahal is quick to admit that, until recently, Sable was almost a one man show, preventing him “from doing the other part of the business: promotion and getting the facts out.” In order to fill that gap Rahal has recently hired an IR firm to get the facts out—which it has been doing monthly since September. This would appear to be a step in the right direction considering what’s been reported thus far: 750 ounces gold equivalent produced in September (announced October 26), 700 ounces gold equivalent in October (announced November 16) and another 700 ounces in November (announced December 17). In addition, Rahal promises “a major exploration program next year.”

Copper Mountain Mining Corporation CUM:CA
(click for original article)

The Copper Mountain Mine—located 15 kilometres south of Princeton, BC, with an NI 43-101 resource estimate of 3.2 billion pounds copper measured and indicated, 1.8 billion inferred—is scheduled to go into production in 2011. That’s good news, and not something one hears as much as one might like to. In October, CEO Jim O’Rourke explained to the factors governing Copper Mountain’s success: 1) Low political risk, 2) low technical risk, 3) a saleable product, 4) existing permits, good management and skilled labour and 5) that most elusive of quantities, “good luck.” O’Rourke summed up, “Everything’s fallen into place favourably and allowed us to move forward quickly.”

In addition to the current 17-year mine plan—estimated to produce in the area of 105 million pounds of copper in the first 12 years—Copper Mountain has, according to O’Rourke, “good growth potential. We have a claim block of about 18,000 acres, and we have excellent exploration potential on site.” And they are following up on that potential, announcing December 13 that the Oriole Area below Copper Mountain‘s Pit 3 yielded grades allowing for additional near-surface extraction with assays including 0.58% copper over 27.6 metres, 1.69% over 7.5 metres and 1.99% over 13.6 metres.

Redstar Gold Corp RGC:CA
(click for original article)

Redstar Gold Corp is a small-cap company with a big advantage: a database acquired six years ago from AngloGold Ashanti containing over 1,600 property files in Nevada. As a result, Redstar has acquired a number of projects in Nevada, on the Cortez and Carlin trends and, most recently (December 14), the Long Island Project, 20 kilometres southeast of the Round Mountain Gold Deposit. Weekes told in October, “Redstar has been generating projects using that database. We’ve got 12 in Nevada now. We just added one on the Cortez trend, and it’s a perfect example of the value of the database: to point to a project that has gold values within one of the major trends in Nevada. It’s very unusual for a junior to be able to do this.”

In addition to Redstar’s Nevada properties, it has the Newman Todd Project in Ontario’s Red Lake Mining District, which has revealed results as high as 24.89 g/t gold over 3 metres, including 69 g/t over 1 metre. Since our interview, Redstar announced (November 17) that it has regained a 100% interest in Newman Todd. “I think we’re a significantly undervalued company,” Weekes explained in October, “because we haven’t had much news flow. But I think over the next 12 to 18 months we’re going to have a lot of news flow.”

MAX Resource Corp MXR:CA
(click for original article)

The government-ordered cancellation of a project drilling 19 g/t gold over 6.1 metres might have broken lesser companies. But not MAX Resource Corp. In September, President Stuart Rogers told regarding the loss of its BC Crowsnest Project, “You can’t fight the government; so we’re just going to get our money and move on.” And so MAX has refocused its efforts on its Nevada properties: Diamond Peak, Table Top and East Manhattan Wash. Diamond Peak is of particular interest as, Rogers noted, it is “at the south end of the Carlin Trend, 32 miles north of Eureka and the Archimedes Mine run by Barrick.” This property also has some notable zinc grades.

MAX operates on Rogers’ philosophy that it is the job of the junior mining sector to take the risk for the majors, recognizing that no junior is going to get the attention of a large cap with anything less than a major resource. MAX continues to work towards that end, with extensive drilling at all three Nevada properties. Its most recent results (December 16) revealed grades including as 1.1 g/t gold over 9.1 metres at Table Top. “We’re getting critical mass; we’ve got three good shots,” Rogers said, “and we’ve got $2.3 million in the bank now. We’ve got the expertise; we’ve got the contacts with the majors and the access to properties; and Nevada’s a mining-friendly jurisdiction.”

(Part 1 of Year in Review)

(Part 3 of Year in Review)

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