Wednesday 13th December 2017

Resource Clips


July, 2011

Pacific Ridge President John Brock on Yukon gold assays of 2.44 g/t over 38.9m

July 30th, 2011

Pacific Ridge Exploration Ltd TSXV:PEX announced results from its Mariposa Property in the White Gold District of Yukon. Highlights include 2.44 g/t gold over 38.9 metres (including 6.44 g/t over 11.1 metres), 0.63 g/t over 45.3 metres (including 1.01 g/t over 8.3 metres) and 1.13 g/t over 19.8 metres (including 2.79 g/t over 3 metres).

President/CEO John Brock tells ResourceClips.com, “We originally called the project Klondike Kate, as it then encompassed four properties in the White Gold area held by Pacific Ridge. We still hold the four properties, but Mariposa is by far and away the furthest advanced. The Mariposa claims were staked some years ago by a geologist called Gordon Richards. He had placer mined Scroggie Creek—which runs through the central part of the claims—and it was, and continues to be a very productive placer gold creek. Richards’ experience as a hard-rock geologist led him to prospect the area surrounding the creek, and he came up with indications of hard-rock exploration potential for gold. When the White Gold area in 2009 was becoming recognized as perhaps being a new area play based on results coming from Underworld Resources, I contacted Richards—who actually used to work for me many years ago—and asked him about his property. We subsequently entered into an agreement whereby Pacific Ridge optioned the property and has the right to earn a 100% interest.

“Soil geochemical sampling for gold remains a primary tool for outlining areas of interest that should be tested by drilling. We carried out a soil sampling during the latter part of the 2009 season and throughout the 2010 season, and we were getting very well-defined gold-in-soil anomalies. There are five of them.

We’re encouraged by these results. They suggest that testing gold-in-soil anomalies is a valid way to explore—John Brock

“The Skookum Jim anomaly, to date, is the longest and strongest. It has anomalous gold that runs over a distance of about 3.5 kilometres. Last year, we were able to trench part of Skookum Jim, and we were getting decent assays in the trenches: in the order of 1.25 g/t over 30 metres. This year we’ve been concentrating mainly on the very first drilling that the Mariposa property has ever seen. So, the results that we’re starting to get now—in this news release—are the very beginning of somewhere around 20 holes that we’ve already drilled to date. We’re encouraged by these results. They suggest that testing gold-in-soil anomalies is a valid way to explore. The type of geology that we’re seeing that’s hosting gold is quite similar to the geological characteristics of Kaminak‘s Coffee Creek.

“Our drilling continues. As mentioned in the news release, we’ve expanded the original 4,000-metre program to 6,000 metres. Continuation obviously will be result-contingent, but we’re certainly very optimistic.

“We will not have a resource estimate out this year,” continues Brock. “By the end of this year—and this is ‘Brock’s guess’—we’ll probably have plus-40 holes drilled. They’ll be very widely spaced, and that’s not sufficient to get any sort of a resource estimate. An optimistic idea would be to pattern what we’re doing after Kaminak. We’re running about a year behind them. They plan to have a resource estimate by the end of this year, early next. That’s based on two seasons of drilling. I think that we too would have to have two seasons of drilling (being 2011 and 2012) before we could look at a resource estimate.

“We’re exploration people. We’re quite experienced at the exploration end of things; we’re quite capable of taking projects to a preliminary feasibility stage. But at the end of the day, we would look to be taken out. Or, alternatively, a more major entity with mining experience would take on a significant share position.

“The Yukon’s fine. I’ve been working there since about 1964, and it still enjoys a good reputation. We could go on for 15 minutes with respect to additional rules and regulations that are somewhat inhibiting, but they’re possible to manage.”

Brock concludes, “We’re very optimistic. The results that we’ve been generating are certainly indicative of good prospectivity. It looks as though, by virtue of the very few holes that we’ve released so far, we’re justified in making comparisons to the likes of the former Underworld Resources’ White Gold deposit and the Kaminak deposit. We’re producing similar sorts of results.

“I’m heading to the property myself in a few hours,” he adds. “That’s my idea of a good time on a long weekend.”

View Company Profile

Contact:
John S. Brock
President/CEO
604.687.4951

by Greg Klein and Ted Niles

American Manganese President Larry Reaugh on Arizona manganese assays of 4.61% over 15.2m

July 28th, 2011

American Manganese Inc TSXV:AMY announced results from its Artillery Peak Deposit in Mohave County, Arizona. Highlights include 4.61% manganese over 15.2 metres (including 6.74% over 6.1 metres), 2.47% over 27.4 metres (including 4.31% over 1.5 metres), 3.1% over 21.3 metres (including 6.89% over 1.5 metres), 2.25% over 24.4 metres (including 4.25% over 1.5 metres) and 3.86% over 13.72 metres (including 5.83% over 6.1 metres). The deposit has a 2010 resource estimate of 92.8 million tonnes grading 3.27% for 6.7 billion pounds indicated and 107.2 million tonnes grading 3.76% for 8.9 billion pounds inferred.

President/CEO Larry Reaugh tells ResourceClips.com, “The Artillery Peak Deposit contains a 43-101 indicated resource of 6.7 billion pounds and an inferred resource of 8.9 billion pounds. We just completed a 10,700-metre drill program. Those results have been coming out now for several weeks and will continue to do so. I’m very happy with the most recent results. It looks like we’re going to have an increase in the indicated resource for sure. The area we’re earmarking for the initial open pit is pretty much where all these drill holes have come from, and it’s indicating a much thicker resource than we originally thought.

It depends on the permitting process, but we’re scheduling around mid-2014 for production.—Larry Reaugh

“We will have a resource study out as soon as all the assay reports are in. Our pilot plant testing is scheduled to begin next week; the prefeasibility will follow after that. And of course we have Tetra Tech on the project doing environmental studies and water studies at this moment. So there’s a lot happening.

“We’re looking forward to an exciting fall,” Reaugh continues. “It depends on the permitting process, but we’re scheduling around mid-2014 for production.”

“We’re very happy with the project’s progress. This is the best project I’ve ever worked on as far as the economics work out. It’s very robust. If you compared it to a gold deal, considering the size of the known mineralization, we’re undervalued. What’s happening with the metal itself, with the tightening supply in China—their supply is going to diminish. China is running out of carbonate ores within the country, and there have been some reports of losing up to a third to a half of production there. And of course that reflects on the supply side because they currently produce over 98% of all the electrolytic manganese in the world.”

He concludes, “Our preliminary economic assessment is saying $0.45 per pound. With inflation and everything, if it goes up to even $0.60 or $0.70 per pound that would still put us at half of what it costs China. So we’d be the lowest cost producer in the world.”

View Company Profile

Contact:
Larry W. Reaugh
President/CEO
604.531.9639

Disclaimer: American Manganese Inc is a Resource Clips advertiser.

by Greg Klein and Ted Niles

Esperanza President Bill Pincus on Mexico assays of 3.85 g/t gold over 15m

July 27th, 2011

Esperanza Resources Corp TSXV:EPZ announced results from its Cerro Jumil Project in Morelos State, Mexico. Highlights include 3.85 g/t gold over 15 metres, 1.3 g/t over 30 metres, 2.52 g/t over 15 metres, 3.07 g/t over 9 metres, 1.13 g/t over 22.5 metres and 1.14 g/t over 16.5 metres.

President/CEO Bill Pincus tells ResourceClips.com, “Cerro Jumil is a discovery made by Esperanza geologists in 2005. We’ve shepherded the project forward, and it’s evolving into a classic open-pit, bulk-tonnage gold deposit with silver credit. We have completed now approximately 45,000 metres of drilling, and we issued an updated resource last September of 1.2 million ounces in all categories. We’re drilling now to expand the resource, and in the current quarter we’ll be publishing the results of a PEA.

“We’re happy with today’s results. We’re expanding the known resource, and we look forward to continuing with the drill program.

“We’re 4,000 metres into a 15,000-metre program,” Pincus continues. “That will also include geotechnical drilling for determining pit-slope stability. Basically, we will continue collecting the information necessary to do a full feasibility study. We would hope to be commissioning that early next year.

“Mexico has been great for us. The Mexican personnel are great. Things have gone well. We understand there is a security issue in certain parts of the country, and we certainly take what we hope are prudent precautions. But we’ve never had any problems.”

Pincus concludes, “Cerro Jumil is a real project. We’ve got pilot-scale metallurgical testing and pretty good mine design. This project’s real. It’s going to be a mine.”

View Company Profile

Contact:
William Pincus
President/CEO
866.890.5509

by Greg Klein and Ted Niles

Peru’s President’s Prudence

July 27th, 2011

Sulliden’s Shahuindo Project is Safe For Now

By Ted Niles

Investors quailed when economic nationalist Ollanta Humala was elected President of Peru June 5. Peru ranks first in the world for production of silver—second for copper and zinc, sixth for gold—and Peruvian mining stocks were hit hard June 6. For example, the country’s largest precious metals producer, Compania de Minas Buenaventura, plunged 11.7%. However, Humala’s recent cabinet appointments of moderates, and his decision to retain economist Julio Velarde as Central Bank President would appear to have turned the tide of world opinion.

“Our stock price has been negatively affected by a lot of uncertainty with the new President,” says Scott Moore about Sulliden Gold Corporation’s flagship Shahuindo Gold and Silver Project. But, the VP of Corporate Development adds, “At the end of the day, the pro-leftist candidate has to fund the social agenda, and that means they have to have good economic drivers. In Peru mining is the economic driver.” He declares, “It would seem that Humala’s policies are trying to address the concerns of the market.”

Sulliden's Shahuindo Project is Safe For Now

That’s good news for Sulliden, as Shahuindo—located in Cajabamba Province and consisting of approximately 8,000 hectares—goes from strength to strength. In June, Sulliden announced an updated mineral resource estimate of 1.97 million ounces gold and 27.98 million ounces silver indicated, with inferred resources of 1.44 million ounces gold and 38.58 million ounces silver—increases to the original gold resource of 121% and 397% (in the indicated and inferred categories) respectively. But this isn’t surprising given the project’s neighbours. Thirty kilometres south of Shahuindo is Barrick Gold’s Lagunas Norte Mine, which produced 808,000 ounces gold in 2010. Newmont’s Yanacocha Mine is 80 kilometres to the north—it is the second largest gold mine in the world. Moore says of Shahuindo, “This is a mine. At the end of the day, it’s just a matter of how big it’s going to be.”

He continues, “We’re in the midst of a 70,000-metre drill program in 2011—we’re about half way through. We’ll do another 35,000 metres this year and probably another 70,000 or 80,000 metres in 2012. In conjunction with that, we’re doing all the engineering studies, and hopefully we’ll be in a position to have a mine permit and mine construction in 2012 with a one-year mine build.”

July 21 Shahuindo assays include 1.17 grams per tonne and 21.6 g/t silver over 104.6 metres, 1.2 g/t gold and 19 g/t silver over 52.5 metres, 1.55 g/t gold and 6.2 g/t silver over 34.5 metres and 1.52 g/t gold and 64.1 g/t silver over 12.9 metres. Moore comments, “The average grade of our deposit is 0.5 to 2 g/t. So 100 metres of 1.17 g/t is quite substantial and a nice big chunk, both in grade and in thickness. Also, we’re getting some exciting results in the East Zone, where we looked at lowering the oxidation front by about 50 metres deeper than we had originally interpreted the geology to be. That will, of course, bring more oxide mineralization into the resource, which will be positive for a mining scenario.” Moore says that the company is currently undertaking a feasibility study, which he expects to be released in late fall.

This is a mine. At the end of the day, it’s just a matter of how big it’s going to be —Scott Moore

Sulliden is currently the top holding of investment company Aberdeen International, whose COO David Stein recently told Mining Weekly that, in light of Shahuindo’s proximity to Barrick and Newmont, he believes the company “will most likely be taken out.” Be that as it may, Moore says that Sulliden is prepared to take the project to production itself: “Our team has built a number of mines around the world, and this would be a very simple mine. It’s going to be a good, low-cost, heap-leach gold project.”

He concludes, “Our management team has run mines in Brazil when Lula [da Silva] got elected and in Nicaragua when Daniel Ortega got elected. We think ultimately that this thing could be somewhere in the neighbourhood of 4 million to 6 million ounces of oxide. So it’s going to be a substantial project. Hopefully, we’ll start construction sometime in 2012. And we’re still expanding the resource. We’ve got targets outside of the central corridor that continue to be drilled, and it’s just going to continue to get bigger.”

Sulliden Gold has 212.5 million shares currently trading at $2.03 for a $431.3 market cap. Its other project—the East Sullivan Property—is located southeast of the city Val d’Or in Quebec’s Abitibi region and is still in the early stages of exploration.

Romarco President/CEO Diane Garrett on SC gold assays of 45.8 g/t gold over 23m

July 26th, 2011

Romarco Minerals Inc TSX:R announced assays from its Haile Property in South Carolina. Results include 45.8 g/t gold over 23 metres (including 111.5 g/t over 6.1 metres), 7.2 g/t over 3.6 metres and 0.8 g/t over 3 metres.

President/CEO Diane Garrett tells ResourceClips.com, “The Haile Gold Mine has been around for about 200 years, mined off and on over that time. Technology—specifically fine-grinding technology—is what has now made this area viable for gold production. Romarco picked up on that and came in here about four years ago and started drilling deeper and realized that this is a large system that’s very amenable to current technologies, particularly in a high gold-price environment. It’s an area that’s like Nevada was in the 80s and pretty much has been forgotten about in exploration plays for gold.

“Both sets of results [July 21 and July 25] were absolutely spectacular. Incredibly high grades, very shallow, long intercepts. Returning these kinds of assays is an indication to the market that there’s a lot of high-grade potential that exists at Haile, and after three years of drilling it hard, these holes rank in the five of the best we’ve ever drilled on the property. So we’re very excited about what we’re seeing.

Incredibly high grades, very shallow, long intercepts. Returning these kinds of assays is an indication to the market that there’s a lot of high-grade potential that exists at Haile.—Diane Garrett

“We’re drilling 172,000 metres this year and the intent of the drill program is to increase overall reserves and resources,” continues Garrett. “Haile’s still open in all directions and at depth, so we’re just going to keep drilling to make it bigger. We do have plans to put it into production and we’re in the midst of the permitting process right now.

“We’ve been beaten up a bit over the last few months. It’s mainly because we’ve been having delays in our permitting. We’ve been delayed a year, and that always tends to make the market nervous. We’ve had a couple of shareholders that have relinquished their positions, and that came on at a time when the markets were not really capable of absorbing it. Seventy to 75% of our institutional shareholders are still in, they have not reduced their positions. In fact they see this as a fine opportunity. And we’re still given a very high value per ounce of gold vis-a-vis our peers. But a lot of the gold stocks have come off 20% to 30% since just after the new year and we’ve been hit that way. Also, I think the market anticipates that we’re going to be doing a financing—they know we need to build the project—and it’s typical of the market to put a lid on your stock until you get the financing behind you.

“We expect to have our permits in hand by the end of 2012 and then we would start breaking ground and construction in early 2013. That would have us pouring gold in early 2014.

“South Carolina is a great environment to work in,” Garrett adds. “There are over 500 active mines today, but no metal mines—there’s been no metal mine production in almost 10 or 12 years. The state and the Corps of Engineers are very knowledgeable; they’ve expedited our drilling permits and we’ve got a good working relationship with them. It’s a great place to do business.”

She concludes, “The project has gone much faster than any of us would have thought four years ago! Coming in four years ago, if you had told me we’re going to be having over a million ounces a year—that’s almost unheard of. It’s a property that keeps giving back. It’s got tremendous potential and we’re just so excited to have been the first ones on the scene down here. And we think the work we’ve done will demonstrate that Haile is basically what Nevada was in the 80s, and it’s going to bring a lot of companies to this area. The Slate Belt is chock full of minerals and there’s a lot of potential waiting there.”

View Company Profile

Contact:
Diane Garrett
President/CEO
210.621.4200

or Dan Symons
IR Manager
416.367.5500

by Greg Klein and Ted Niles

Mana From Heaven

July 25th, 2011

SEMAFO Expands its Burkina Faso Flagship

By Greg Klein

According to the Book of Exodus, God’s provision of manna sustained the Israelites through their 40-year journey to the Promised Land. But there’s no final word on how long nature’s provision of gold will sustain SEMAFO’s Mana Mine. A $30-million exploration program expands the mine as it produces. That’s the surprising outcome of a charitable mission to Burkina Faso.

In 1994, Benoit La Salle travelled to West Africa on behalf of Plan, a charity dedicated to developing countries. He met Burkina President Blaise Compaore, who invited him to return and study the country’s gold-mining potential. La Salle was a chartered accountant with no mining background. “I knew nothing about it at all,” he told the Financial Post last year. Now he’s CEO of SEMAFO, a mid-tier producer with two other African producers—Samira Hill in Niger and Kiniero in Guinea—besides its flagship Mana. Talk with him, and it’s evident that mining’s gotten well into his blood.

SEMAFO Expands its Burkina Faso Flagship

“The Mana Mine is a very large district, 2,000 square kilometres in Burkina Faso,” La Salle says. “It’s a district that has a very strong magnetic signature and that has been normally a very good indicator of where the sediments are. We have over 200 kilometres of magnetic signatures that are very easy for us to identify with the new tools. So in early 2000 we discovered a structure which we call the Wona structure, which currently hosts over two million ounces [in reserves]. That’s where we built the first [open pit] mine.

“Last year, as we were following a similar signature south of the permit, we discovered the Fofina-Fobiri structures,” La Salle continues. “They were showing about a million ounces inferred. Fofina is more of a high-grade system and not as wide. It will go from a couple of metres up to sometimes 10 metres wide, but the grade will go from 3 grams up to 15 grams per tonne. Fobiri, which is a parallel zone to Fofina, a couple of kilometres to the east, is a longer system. It’s a lower grade but wider, and these are two very nice systems which currently show about one million ounces.”

Fofina assays released July 18 include 19.46 grams per tonne gold over 8 metres, 4.29 g/t over 25 metres, 7.49 g/t over 7 metres, 17.22 g/t over 2 metres and 7.49 g/t over 4 metres.

Assays from Mana’s Yaho Zone, 4.5 kilometers from Fofina and 20 kilometers from the Mana mill, were released June 28. Highlights include 1.56 g/t over 19 metres, 1.9 g/t over 14 metres (including 3.4 g/t over 5 metres), 1.16 g/t over 21 metres (including 1.72 g/t over 10 metres) and 1.19 g/t over 19 metres.
May 12 results from Wona’s SW Zone include 4.17 g/t over 32 metres, 4.45 g/t over 10 metres, 2.27 g/t over 51 metres (including 6.25 g/t over 6 metres), 3.49 g/t over 28 metres (including 3.6 g/t over 25 metres) and 2.41 g/t over 25 metres.

La Salle comments on the July 18 results, “They confirm the geology, the width and the grade. We’re extremely pleased because the original results were strong, and we’re pleased that with systematic and very tight drilling we’re able to see the inferred resource moving up into the category of reserve or measured and indicated, depending on the final work done by our geologists.”

The key thing about Mana is that in the past 10 years it’s never missed a beat. Every quarter it’s got good drill results, every quarter it’s got great production. —Benoit La Salle

SEMAFO currently budgets $30 million for its 15-rig drilling program and plans further expansion in 3Q. At 2010 year-end Mana’s reserve estimate showed 25.47 million tonnes grading 2.64 g/t for 2.16 million ounces proven and probable. Mana’s resource estimate showed 23.66 million tonnes grading 1.5 g/t for 1.13 million ounces measured and indicated. Total reserves and resources came to 49.13 million tonnes grading 2.1 g/t for 3.29 million ounces. The company lists its inferred resource separately: 36.47 million tonnes grading 2.28 g/t for 2.68 million ounces.

Mana’s 2Q figures, released July 6, show record production of 47,800 ounces, a 6% increase over 1Q and 75% of SEMAFO’s total gold production for the second quarter.
A feasibility study announced March 31 predicted an underground mine below Mana’s current open pit would produce 942,600 ounces at a cash operating cost of US$589 per ounce or US$42.25 per tonne processed over a nine-year lifespan. The mine would require initial capital expenditures of $140 million, with a pre-tax operating cash flow of $452 million bringing a 28% internal rate of return and a three-year payback period.

La Salle enthuses about Burkina Faso. “The people, the government really are pro-mining. The workforce is pro-mining; the unions are pro-mining. The ministry of mines and finance is open-minded about anything that needs to be done to accelerate the development of mines and projects.”

Last February, however, economic concerns set off a series of strikes and protests that were accompanied by army mutinies. As the unrest continued, SEMAFO announced April 18 that its operations were unaffected. Nevertheless the company’s stock fell close to its 52-week low of $6.54. At press time SEMAFO had 272.7 million shares outstanding at $8.77 a share, for a market cap of $2.39 billion.

La Salle concludes, “I think the key thing about Mana is that in the past 10 years it’s never missed a beat. Every quarter it’s got good drill results; every quarter it’s got great production. The construction of the plant was done in 14 months, the commissioning in 45 days. It just keeps giving the results we’re looking for.”

Golden Touch President Rob Murdoch on Albania gold assays of 3 g/t gold over 17m

July 25th, 2011

Golden Touch Resources Corp TSXV:GOT announced assays from its Rubik Gold Project in Albania. Results include 3 g/t gold over 17 metres (including 4 g/t over 7 metres), 1 g/t over 25 metres (including 8 g/t over 2 metres), 1.3 g/t over 30 metres (including 7 g/t over 6 metres) and 1.7 g/t over 30 metres (including 1.5 g/t over 14 metres).

President Rob Murdoch tells ResourceClips.com, “Basically Golden Touch Resources is a shell in Canada that’s been formed by merging with an Australian company that I started and ran called Jab Resources. Golden Touch holds four exploration permits in Albania on three different projects, one of which is a very nice gold project that we identified in 2009 and 2010. There was some drilling on it; it wasn’t very good drilling but the results were good. So we persevered, and now we’ve raised some money, so we’re charging ahead with the drilling program.

“The gold mineralization is contained within a pretty wide shear zone, 10-plus metres wide; in fact, some of our intersections are up to 30, 30-some metres. But, dipping away to the north, we don’t know yet. There have been a few surprises—it’s deeper in some places than we thought, shallower in other places. But obviously, as most gold-ore bodies are, it’s a bit complex, and we’ve got to sort that out as we go along. But it’s about 30 metres wide, that’s what we’re seeing on the drill intersections.

We’re not real estate people; we’re serious people who’ve put gold mines into production before.—Rob Murdoch

“There are two zones within the shear zone,” Murdoch explains. “There seem to be some very high grades along the hanging wall of the shear and also some high grades on the lower wall of the shear. Or you can bulk the whole lot together. The reason for bulking the whole lot together and having a grade averaging at the moment 1.6 to 1.7 over 30-odd metres is that the gold is associated with sulphides. We’ve done a little bit of preliminary testing which is encouraging. We haven’t finished that work yet. We’ll probably open-pit across the whole width.

“The results we just released confirm the mineralization over about 100 metres, but we obviously need to do much more than that. So we just keep working at it, stepping out and seeing how big this thing is. There are indications from gold and silver anomalies that it goes up to six kilometres along strike. So there’s a fair bit of potential; we’ve got a fair bit of work ahead of us.

“The plan is to drill up a resource and then take a feasibility study and get it into production,” Murdoch says. “I think we should have the resource within about 12 months. At the moment we’re only using one rig, largely because we don’t have an over-abundance of cash. As we get better results we’ll raise more cash, so we can put in more drill rigs and accelerate the project—a typical exploration scenario.

“Of course we’ll take it into production ourselves, why else would you do this?” the Australian laughs. “I know sometimes in Canada people do it the other way, but our typical way is to put it into production. But on the other side of the equation, if someone comes along and offers you a price your shareholders can’t refuse, then obviously you sell. But we’re not real estate people, we’re serious people who’ve put gold mines into production before.

“Most of the time, working in Albania is good,” Murdoch continues. “There’s no problem getting there, there’s no problem getting around. The people are friendly. The cost of operation is relatively low. I suppose our frustration sometimes comes from the bureaucratic side, but you have that everywhere in the world, I think. The local geos we’ve hired are outstanding. They do need a little bit of a push from someone who’s had a bit of worldly experience because a lot of them grew up during the Communist era, so they don’t think outside the box. But once you show them what to do they’ll do it absolutely perfect every time. They’re good. And we’re drilling for only about 100 bucks a metre, so that’s reasonably cheap. We don’t see it as an expensive place to operate.

“As far as we’re considered the infrastructure’s alright,” he adds. “It’s only an hour and a half from the capital. The first hour is on a beautiful highway, the last half hour on bush track. The track will have to be upgraded. There is water, although there’s no power where we are. But the infrastructure’s fine.

“We’ll head off and drill a few holes on our platinum project shortly, because we’ve only got one rig. Our platinum project is also outstanding. While the drill rig’s away we might do some IP and get a better idea of the dimensions of the ore body and where it goes.”

View Company Profile

Contact:
Golden Touch Resources Corp
604.248.5175

by Greg Klein

Magellan President Alan Carter on Brazil gold assays of 8.44 g/t gold over 7.8m

July 24th, 2011

Magellan Minerals Ltd TSXV:MNM announced results from its Cuiu Cuiu Project in Pará, Brazil. Highlights include 8.44 g/t gold over 7.8 metres, 58.7 g/t over 0.5 metres, 30.2 g/t over 0.5 metres, 0.51 g/t over 18.9 metres and 0.7 g/t over 10.3 metres.

President/CEO Alan Carter tells ResourceClips.com, “The Cuiu Cuiu project is located in the Tapajos region. The Tapajos region is the largest placer-gold field in Brazil and the third largest placer gold field in the world. Cuiu Cuiu itself is one of the two largest placer fields within that part of Brazil, so it’s produced an awful lot of placer gold. We have a current resource at Cuiu Cuiu of 1.3 million ounces. It is adjacent to Eldorado‘s Tocantinzinho project, which is at the feasibility stage now. Dennis Moore and I—the founders of Magellan—found Tocantinzinho, so we know this part of the world quite well.

“We’re pretty excited by these drill results. We’ve got three rigs turning on the property right now, and all the drilling we’re doing this year is step-out drilling. We’re looking for extensions and new deposits in the immediate vicinity of the existing deposits there, so these results are fairly significant for us. We’re hoping to update the resource in Q1 2012.

There were 20 million to 30 million ounces of placer gold that came out of the Tapajos region between 1978 and 1995. What we’re doing is looking for the source of that gold.—Alan Carter

“All options are on the table right now. Either we take the project all the way through to production, or at some point we might consider some sort of arrangement. But I think the short-term objectives are important, and those are to increase the ounces. It’s the same short-term objective that we’ve got at our other advanced project, Coringa, which is 200 kilometres from Cuiu Cuiu and where we’re also drilling with three rigs. So we’re doing a lot of work right now.

“Brazil’s a great place,” continues Carter. “It’s a country that’s growing at quite a clip. It’s resource rich, and there’s an amazing number of opportunities. It’s one of the world’s largest iron-ore producers, and in the 18th and 19th centuries, it was the largest gold producer in the world. So it’s got incredible potential. There were 20 million to 30 million ounces of placer gold that came out of the Tapajos region between 1978 and 1995. What we’re doing is looking for the source of that gold. It’s probably multiple sources, but we’ve got a couple of those in Coringa and Cuiu Cuiu, and we think we’re going to find other ones. It’s definitely a very exciting, emerging part of the world.

“Of the two projects, Coringa’s the more advanced. We already have a scoping study done at Coringa on a relatively small resource of about 370,000 ounces—but the average grade on that is 9 g/t. And the scoping study was very positive. It was done about 18 months ago, assuming a gold price of $950—so obviously things have changed a lot since then. The idea for Coringa next year is to update the resource and then complete a feasibility study by the end of 2012. We won’t get the feasibility study done on Cuiu Cuiu yet, but the idea there would be to at least start a scoping study in 2012. But the immediate objective for 1Q of next year for both projects is to update the resources.

“I think they’re very good quality projects,” Carter concludes. “We’ve spent a lot of time and energy and effort screening literally hundreds of gold prospects in Brazil, and these are two of the best that we’ve come across. The gold-in-soil anomaly at Cuiu Cuiu is now 12 kilometres long, and that’s based on 10,000 soil samples. And there’s large parts of that anomaly that have not been tested yet, so we expect to find additional deposits there. I think the potential of Cuiu Cuiu is that it could grow several times larger, ultimately, than the current resource. Similarly, at Coringa, the 370,000 ounces that we’ve got is almost two years out of date—a year and a half at least—and we have a mineralized shear zone there which is 10 kilometres long. Our resources are confined to three very small parts of that, and we keep finding new zones all the time. As I said, all the drilling now is step-out drilling, and we put out results last week from a brand new zone. I’d be very surprised if Coringa does not increase in size by several times. I’m not talking about a 20% or 30% increase, I’m talking several hundred percent larger than it already is.”

View Company Profile

Contact:
Alan Carter
President/CEO
604.676.5663

or Jennifer Duthie
Corporate Communications Manager
778.370.0519

by Greg Klein and Ted Niles

Oro President Darren Bahrey on Mexico gold assays of 4.07 g/t over 32m

July 23rd, 2011

Oro Mining Ltd TSXV:OGR announced results from the Taunus Gold Deposit of its Trinidad Property in Mexico. Highlights include 4.07 g/t gold over 32 metres, 8.07 g/t over 12.7 metres, 3.37 g/t over 25.6 metres, 0.83 g/t over 72.4 metres (including 1.03 g/t over 30.9 metres) and 1.91 g/t over 22.8 metres (including 3.45 g/t over 9.7 metres).

President Darren Bahrey tells ResourceClips.com, “We’re on to a discovery at the Trinidad Property. We’re drilling the Taunus Deposit, which was previously mined by Eldorado in the late 1990s. After they left, the ground became available, and we staked this abandoned open-pit mine. Essentially, Eldorado was just scratching the surface. They mined around 90,000 ounces, something like that. It was based on just vertical RC drilling, relatively shallow. We came in around 2006 or 2007 and staked it. We realized that there’s more there, especially when we made a major discovery below the zone they called the Eldorado Zone, the zone that they mined. They left some ore at the bottom of the pit. We made our discovery about 100 metres below that on the northeastern side. Drill hole number 12 showed 61.1 metres of 8.5 grams per tonne and there’s a lot more there. So we’re focusing on developing a mineable resource.

We’ve scheduled 2012 for a PEA and 2013 for breaking ground.—Darren Bahrey

“Geologically speaking, it’s one of the more complicated deposits I’ve come across,” he adds. “I’m a geologist with lots of experience in Mexico and central America, and I’m experienced with these types of deposits as well. And this one’s not just complicated geologically, but technically as well—try to drill this thing.

“We spent a couple of years trying to drill this deposit with RC and diamond, but it doesn’t work. You can’t recover the material. It’s all broken up and clay-rich. One of the issues that we had with RC and diamond drilling is that we were losing the gold. The gold is free and fine, so it’s washing away. What you see is not really what’s down there,” Bahrey says.

“So we came up with a couple of ideas. One is: ‘Let’s go mining.’ So last October we brought in John Brownlie as CEO. He was CEO with Capital Gold. Recruiting him was definitely part of the plan to move this thing into production.

“But we also came up with another idea, an innovative technique called sonic drilling. [For a demo video, click here and scroll to the bottom of the page.] We’re one of the first companies to use this as an exploration tool to drill down deeper. It’s just based on vibration, you’re not using any fluids. You’re vibrating the tube down and pulling up the material. This is the tool to use on this deposit because you’re not losing any of the gold. This has been our latest round of drilling, and we’re at the tail end of finishing. It will show what Taunus has in gold ounces. So we’re just about to show the market what Taunus has. John Brownlie and Marco Antonio Galindo [VP of Operations] are getting hungry to build this mine. We’ve got them moving forward as well.”

The property’s current resource estimate shows 3.87 million tonnes grading 1.51 g/t at a 0.3 g/t cut-off for 187,000 gold ounces indicated and 2.54 million tonnes grading 1.45 g/t at a 0.3 g/t cut-off for 118,000 gold ounces inferred. The estimate was released January 6, prior to the sonic drilling campaign.

“That’s the main focus of the company but we have other properties too; it’s just overwhelming. We have an extensive portfolio in Mexico, close to 3,000 square kilometres. So I guess we can be considered a land baron out there,” he quips.

“Our most recent results are good news—32 metres of 4.07 g/t. That’s pretty good grade. It will definitely add to the model. It just confirms that there’s more down there at depth, and that will just keep adding to what we’ve found already.

“We’re taking this into production ourselves,” he emphasizes. “We’ve scheduled 2012 for a PEA and 2013 for breaking ground. John Brownlie has a track record to make things happen pretty fast and at low cost.

“I think Mexico is an excellent place to do business. It’s a mining-friendly country; it’s in their culture. It’s certainly a place to be doing what we’re doing; there’s no question there.

“I think people should check out our management team,” Bahrey says. “And when I use the word ‘team,’ it really is a team. A lot of these juniors operate with consultants who come and go. This is a group that’s been involved in major discoveries, like over 10-million-ounce discoveries during the Placer Dome days in the 1990s, so we’ve got a team that’s done a lot of good things in the past. They’ve taken projects from discovery stage all the way to prefeasibility, so I think we’re unique in that way. Now that we’ve attracted John and Marco, we’re a complete package.”

Bahrey concludes, “I still think we’re one of the best-kept secrets in the market. The market doesn’t know us yet. That will soon change.”

View Company Profile

Contact:
John Brownlie
CEO
604.646.1580

by Greg Klein

Sulliden VP Scott Moore on Peru assays of 1.17 g/t gold and 21.6 g/t silver over 104.6m

July 22nd, 2011

Sulliden Gold Corporation Ltd TSX:SUE announced assays from its Shahuindo Gold and Silver Project in northern Peru. Results include 1.17 g/t gold and 21.6 g/t silver over 104.6 metres (including 3.15 g/t gold and 58.1 g/t silver over 14.9 metres), 1.2 g/t gold and 19 g/t silver over 52.5 metres (including 2.09 g/t gold and 35 g/t silver over 23.7 metres), 1.55 g/t gold and 6.2 g/t silver over 34.5 metres (including 2.59 g/t gold and 1.7 g/t silver over 16 metres) and 1.52 g/t gold and 64.1 g/t silver over 12.9 metres (including 2.92 g/t gold and 140.9 g/t silver over 7.7 metres).

VP Corporate Development Scott Moore tells ResourceClips.com, “The Shahuindo project has changed quite a bit since the new management came in. It is a large-tonnage, low-grade gold and silver deposit in northern Peru. We put out a new resource model in June of this year showing about 3.4 million ounces of gold, up from about 1.3 million ounces on the previous resource. We’re in the midst of a 70,000-metre drill program in 2011—we’re about half way through—and these results are part of that drill program. We’ll do another 35,000 metres this year and probably another 70,000 or 80,000 metres in 2012. In conjunction with that, we’re doing all the engineering studies, and hopefully we’ll be in a position to have a mine permit and mine construction in 2012.

“Our team has built a number of mines around the world,” continues Moore, “and this would be a very simple mine. We’re targeting on the current resource somewhere around greater than 150,000 ounces, and the ultimate size might be a little bit bigger than that. It’s going to be a good, low-cost, heap-leach gold project which, in the area where we are, is a very similar type of mine to Barrick’s and Newmont’s.

We think ultimately that this thing could be somewhere in the neighbourhood of 4 million to 6 million ounces.—Scott Moore

“The average grade of our deposit is 0.5 to 2 g/t. So 100 metres of 1.17 g/t is quite substantial and a nice big chunk, both in grade and in thickness. Also we’re getting some exciting results in the East Zone, where we looked at lowering the oxidation front by about 50 metres deeper than we had originally interpreted the geology to be. That will, of course, bring more oxide mineralization into the resource, which will be positive for a mining scenario.

“We are in the midst of a feasibility study right now. In fact, in conjunction with the June resource, we put out the metallurgical test work from the study, showing 89% recoveries from the heap leach. We’ll have that done sometime in late fall, probably.

“Our stock price has been negatively affected by a lot of uncertainty with the new President of Peru,” Moore adds. “But, we feel in the long term that it’s probably more beneficial for us than having a right-wing candidate win by a very small margin. Our management team has run mines in Brazil when Lula [da Silva] got elected and in Nicaragua when Daniel Ortega got elected. At the end of the day, the pro-leftist candidate has to fund the social agenda, and that means they have to have good economic drivers in the economy. In Peru mining is the economic driver. We have just seen announcements of cabinet postings of very centrist, very moderate individuals, and they’ll be keeping the central bank governor [Julio Velarde] in place for another 5 years. So we suspect that there will be very minimal impact on the economy. It would seem that Humala’s policies are trying to address the concerns of the market.

“This is a mine; at the end of the day, it’s just a matter of how big it’s going to be. We’re 2.2 million ounces of oxide right now, which is driving the feasibility. We think ultimately that this thing could be somewhere in the neighbourhood of 4 million to 6 million ounces of oxide, so it’s going to be a substantial project. Hopefully, we’ll start construction sometime in 2012, with a one-year mine build.”

Moore concludes, “We’ll continue to put out drill results every 4 to 6 weeks. We’re still expanding the resource. We’ve got targets outside of the central corridor that continue to be drilled, and it’s just going to continue to get bigger.”

View Company Profile

Contact:
Caroline Arsenault
Investor Relations Manager
416.861.5805

or G. Scott Moore
VP Corporate Development
416.861.5903

by Greg Klein and Ted Niles