Tuesday 12th December 2017

Resource Clips


December, 2011

SLAM reports NB results up to 34 g/t Silver, 5.03% Zinc over 11.2m

December 29th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningSLAM Exploration Ltd TSXV:SXL announced results from its Nepisguit project in New Brunswick. Assays include

57 g/t silver, 1.03% copper and 3.31% zinc over 5.6 metres
12 g/t silver and 1.74% zinc over 21.4 metres
(including 27 g/t silver and 7.91% zinc over 2 metres)
17 g/t silver and 2.01% zinc over 2.3 metres
137 g/t silver and 6.53% zinc over 0.6 metres
10% zinc over 0.6 metres
37 g/t silver and 4.87% zinc over 3.1 metres
34 g/t silver and 5.03% zinc over 11.2 metres

The Nepisguit project consists of 78 claims and is located roughly 15 kilometres southwest of Xstrata’s Brunswick 12 mine.

View Company Profile

Contact:
Brian Jones
Investor Relations
855.800.6109

by Ted Niles

Canada Zinc reports BC results of 3.98% Zinc, 6.84 g/t Silver over 12.7m

December 29th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningCanada Zinc Metals Corp TSXV:CZX announced assays from its Akie project in northeastern BC. Results include

3.98% Zinc and 6.84 g/t Silver over 12.7 metres
(including 7.4% zinc and 10.13 g/t silver over 3.1 metres)
4.8% zinc and 7.7 g/t silver over 26.1 metres
(including 8.59% zinc and 12.43 g/t silver over 5.3 metres)

The Akie project is located approximately 260 kilometres north-northwest of the town of Mackenzie and has NI 43-101 inferred resources of 23.6 million tonnes grading 7.6% zinc, 1.5% lead and 13 g/t silver.

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Contact:
Canada Zinc Metals Corp
Investor Relations
604.684.2181

by Ted Niles

Northern Freegold reports Yukon Results including 0.26 g/t Gold over 138.6m

December 29th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningNorthern Freegold Resources Ltd TSXV:NFR announced drill results from the Revenue zone of its Freegold Mountain project in Yukon. Highlights include

0.26 g/t gold over 138.6 metres (including 2.16 g/t over 7.4 metres)
0.24 g/t over 157.6 metres (including 0.74 g/t over 38.7 metres)
1.82 g/t over 15 metres
0.2 g/t over 79 metres
0.53 g/t over 12 metres

The Freegold Mountain project is located 70 kilometres west of Carmacks, Yukon. An inferred resource estimate for the Revenue zone is expected 1Q 2012.

View Company Profile

Contact:
Julie Hajduk
Investor Relations Manager
604.893.8757

by Ted Niles

Prodigy CEO Brian Maher on updated Magino Project PEA

December 29th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningProdigy Gold Inc TSXV:PDG announced an updated preliminary economic assessment for its Magino Gold Project in northern Ontario. The report assumes a gold price of $1,200 an ounce and estimates resources to be 74.23 million tonnes grading 1.15 g/t gold with a strip ratio of 2.1:1. The pre-production capital cost is estimated at $405.6 million. The mine life is estimated at 11 years averaging 249,300 ounces gold annually, totalling over 2.61 million ounces at an average cash cost of $461 an ounce. At a 5% discount rate, the project is calculated to have a pre-tax net present value of $939 million. At an 8% discount rate, the NPV comes to $709 million. In the base case scenario the internal rate of return is 36% with a payback period of 1.9 years.

President/CEO Brian Maher tells ResourceClips.com, “We’re looking at having full feasibility done about the middle of the year, so it’ll be late 2Q, early 3Q. It’s absolutely our intention to take this into production ourselves.

It’s absolutely our intention to take this into production ourselves—Brian Maher

“Our new VP of Operations, Fred Mason, has been in the industry over 40 years building and operating gold mines and milling facilities globally. So we’ll have no problem with the next stages,” Maher adds.

“We’re always looking to add to our properties package in the district. We think very highly of that particular greenstone belt, so if an opportunity presents itself, we’ll certainly add to our ground.

“We have some land up in the Beardmore-Geraldton area, but by and large our focus now is on the Magino Project,” he says. “We’ve spun out some of our assets into a new company called Goldstream Exploration. It’s a private company right now, but it’ll be going public in Q1 of 2012. We’ve done that so we could focus our personnel as well as our financial resources on Magino.

“We have about $30 million in the bank right now, so our treasury is very well set. We can be patient with financing and do so if and when we feel market conditions are appropriate,” Maher emphasizes.

“I would encourage investors to look at the scope of this project,” he concludes. “As we go through the process of de-risking it by taking it to feasibility, I think it’s a clear pathway to share price appreciation and, given the fact that we’re located in the mining-friendly jurisdiction of Ontario, the fact that the project has very robust economics, there’s excellent infrastructure, an active mining district—when you add together all those incremental attributes you start to see why this is such a compelling project.”

View Company Profile

Contact:
Prodigy Gold Inc
604.688.9006

by Greg Klein

Paramount reports Mexico Silver-Gold Resource Updates

December 28th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningParamount Gold and Silver Corp TSX:PZG announced resource remodelling for the La Union and San Antonio deposits of its San Miguel project in northern Mexico. At a 25 g/t silver-equivalent cut-off, La Union now has resources of 807,000 ounces silver and 8,800 ounces gold indicated, and 9.03 million ounces silver and 147,000 ounces gold inferred. At the same cut-off, San Antonio has resources of 7.02 million ounces silver and 3,000 ounces gold indicated, and 12.42 million ounces silver and 7,700 ounces gold inferred.

Resources for all of San Miguel’s deposits will be re-estimated in 2Q 2012 to incorporate 2011 and early 2012 drilling. The updated estimate will be used in the preliminary economic assessment.

View Company Profile

Contact:
Glen Van Treek
VP Exploration
866.481.2233

or Chris Theodossiou
Investor Relations
866.481.2233

by Ted Niles

Chalice, Zara report Eritrea Gold Results up to 39.25 g/t over 3m

December 23rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningChalice Gold Mines Ltd TSX:CXN and Zara Mining Share Company announced assays from the Koka South discovery adjacent to their Zara Gold Project in Eritrea. Results include

39.25 g/t gold over 3 metres
(including 115.33 g/t over 1 metre)
21.38 g/t over 5 metres
9.73 g/t over 7 metres
(including 49.64 g/t over 1 metre)
6.06 g/t over 5 metres

The project is a joint venture under Zara Mining SC, the operating company. Under the agreement, the Eritrean National Mining Corp will pay Chalice US$32 million for a 30% interest. ENAMCO will also pay Chalice approximately $2 million towards exploration costs on the Zara licences outside the Koka licence. Following completion of the agreement, the Zara Project’s ownership structure will be 60% Chalice, 30% ENAMCO and 10% free carried interest. Chalice and ENAMCO will pay development costs for Koka and exploration costs for the Zara licences on a two-thirds/one-third basis.

Managing Director Doug Jones tells ResourceClips.com, “They’re pretty encouraging results. Koka South is immediately adjacent to the Koka open pit, where we’ve got 760,000 ounces mineable at five grams. It looks like Koka South is a continuation of that system, whereas the Koka Main mineralization tends to be over a width of 15 to 20 metres. It seems to extend down into the Koka South area, but you’re getting significantly higher results, as you can see from these results and the previous results in early November.

The Chinese are already heavily invested in Eritrea. It’s not a surprise that they’re quite keen on acquiring additional assets there. And there’s quite a strong political link between Eritrea and China—Doug Jones

“We’ve got assays from three more holes to come for this season. Holes 236 and 237 look fairly promising because they have visible mineralization, and that does seem to confirm that mineralization continues to the south, at depth. It seems that close to surface at Koka South we’re not seeing the mineralization in the surface geochemistry. There were a couple of holes that had no significant intersections near surface. But certainly the deeper holes have good-looking visible mineralization.

“We’re continuing to expand; 760,000 ounces, even at five grams, is not a big reserve. We’d like to get that over a million ounces. Given that Koka South is so close to the pit, it could be a significant material addition to the Koka operation. It’ll probably be underground, though. I think the strip ratio there would preclude an open pit.

“About two and a half kilometres further south we’ve got the Debre Konate prospect, where we had some pretty interesting results that we released December 15. That’s a pretty exciting prospect too, with very robust soil anomalies. The Debre Tsaeda prospect looks interesting too. So we’ve got a big drill program planned for next year,” Jones says.

Chalice announced December 12 it had signed a non-binding letter of intent proposing terms to sell its 60% share in Zara. Jones acknowledges widespread speculation that a Chinese company was involved. But he declined to elaborate publicly.

“The Chinese are already heavily invested in Eritrea,” he points out. “It’s not a surprise that they’re quite keen on acquiring additional assets there. And there’s quite a strong political link between Eritrea and China.

“The UN sanctions on Eritrea have had a limited effect on exploration and mining so far,” he reports. “It’s been suggested in some circles that the sale of this project results from the sanctions. But it has nothing to do with the sanctions. The press release from Nevsun TSX:NSU [December 6] pointed out that the wording of the sanctions has virtually no impact on the mining industry. I think that it just reinforces aversion in people who are already risk-averse. But I don’t think people who were prepared to fund projects in Eritrea six months ago are going to change their minds because of renewed or extended sanctions. Certainly in terms of our day-to-day activities, it’s not going to affect us at all.

“If the sale goes through, we’ll be looking for a new project,” Jones says. “I think there’ll be a lot of opportunity next year. The way the market is, I think it’s going to be difficult for a lot of juniors to fund their projects. If we have something in the order of $80 million to $100 million, that gives us the ability to leverage it into new projects. We’d be looking for relatively advanced projects.

“We were planning to take Koka into production. We put everything into place except the funding, then this offer came through. We were already transitioning from a purely exploration company towards development with the addition of a couple of mining engineers, and more additions of that sort were planned.

“We’d like to diversify our political risk. Regardless of whether we think Eritrea is a good country to work in, the market has its own view. Along with Nevsun, we’ve been hammered fairly hard through that perception. We’ll certainly look at opportunities inside Eritrea, but we’ll look at others as well, to diversify our political risk.”

Jones concludes, “We’re in an interesting position at the moment. We have a good project which we could take through to production. We’re in the process of being made an offer. If we go through with that, it should leave us with a significant amount of money which will open up a lot of opportunities going into the new year. With the market the way it is, I think a lot of the juniors are going to be starved for funds. So if we have cash in the kitty, we’ll be able to take on some new projects.”

View Company Profile

Contact:
Chalice Gold Mines Ltd
Joanne Jobin
North American IR Manager
647.964.0292

or Tim Goyder
Executive Chairman
or Doug Jones
Managing Director
61.9322.3960

by Greg Klein

Banro reports updated Congo Gold Resource

December 23rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningBanro Corporation TSX:BAA announced an updated NI 43-101 resource estimate for its Namoya project, located on the Twangiza-Namoya gold belt in Congo. Namoya now has measured and indicated resources of 1.58 million ounces gold and inferred resources of 443,000 ounces. This represents a 39% increase to the project’s resources since the last estimate, released January 2011.

CEO Simon Village commented, “A 39% increase in Namoya’s measured and indicated mineral resource signifies tremendous momentum in Banro’s drive towards increasing its future production profile. This increase in both size and confidence of the mineral resource represents a larger overall resource than we had originally envisioned for Namoya. We expect these newly-defined resources to generate an increase in the life of mine operations and total gold recovered from the Namoya project. Indications are strong that the Namoya ore body is open at depth. Next year’s program will focus on increasing the resources further through extension drilling.”

View Company Profile

Contact:
Arnold T. Kondrat
Executive VP
416.366.2221

or Naomi Nemeth
Investor Relations
416.366.2221 x 2802

by Ted Niles

Chieftain signs US$60M Gold and Silver Purchase Agreement with Royal Gold

December 23rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningChieftain Metals Inc TSX:CFB announced the sale of 12.5% of payable gold and 22.5% of payable silver from its Tulsequah Chief Project in northwest BC to Royal Gold Inc TSX:RGL. The $60-million deal includes an initial $10-million payment on closing, with the rest paid over the development period of the project.

The agreement allows Royal to purchase 12.5% of payable gold for $450 an ounce up to 48,000 ounces and 22.5% of payable silver for $5 an ounce up to 2.78 million ounces. Once those amounts have been delivered, the interests will convert to 7.5% of payable gold for $500 an ounce and 9.75% of payable silver for $7.50 an ounce, or the prevailing market price of the metals, for the remainder of the mine life.

Conditions include the securing of financing and permitting. Royal Gold also receives right of first refusal on any future gold or silver production-based interests.

Chieftain President/CEO Victor Wyprysky commented, “We are pleased to enter into this transaction with Royal Gold on the first anniversary of our IPO. Royal Gold’s commitment to the company highlights the value of the Tulsequah Chief Deposit. This financing does not dilute shareholders and increases the project NAV. The purchase amount, achieved by monetization of a portion of our precious metals, demonstrates the value inherent in the project. This transaction is an important first component in the project financing for Tulsequah Chief development as we plan for mine construction commencement in 2012.”

Royal Gold President/CEO Tony Jensen remarked, “We are pleased to add the high-grade Tulsequah Chief Deposit to our portfolio, which is another asset with good exploration potential in an attractive geographical region. It will also fit well into our development pipeline with an estimated start-up in 2015, following Pascua-Lama and Mt. Milligan in the second half of calendar 2013.”

View Company Profile

Contact:
Chieftain Metals Inc
Victor Wyprysky
President/CEO
416.479.5411
or Jamie Frawley
Director of Corporate Communications
416.479.5415

Royal Gold Inc
Karen Gross
VP and Corporate Secretary
303.575.6504

Read feature story on Chieftain Metals Inc.

by Greg Klein

PMI reports Ghana Gold Assays as high as 47.79 g/t over 3m

December 23rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningPMI Gold Corporation TSXV:PMV announced drill results from its Obotan gold project in Ghana, West Africa. Highlights include

7.45 g/t gold over 16 metres
3.08 g/t over 37 metres
1.88 g/t over 68 metres
47.79 g/t over 3 metres
5.4 g/t over 23 metres
20.27 g/t over 5 metres

The Obotan project has an NI 43-101 resource estimate of 3.22 million onces gold in the measured and indicated categories and 1.29 million ounces inferred. A prefeasibility study is scheduled to be completed by the end of 2011.

View Company Profile

Contact:
Marion McGrath
Corporate Secretary
604.684.6264

by Ted Niles

Prodigy reports Ontario Magino Gold PEA with $939M NPV, 36% IRR

December 22nd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningProdigy Gold Inc TSXV:PDG announced an updated preliminary economic assessment for its Magino Gold Project in northern Ontario. The report assumes a gold price of $1,200 an ounce and estimates resources to be 74.23 million tonnes grading 1.15 g/t gold with a strip ratio of 2.1:1. The pre-production capital cost is estimated at $405.6 million. The mine life is estimated at 11 years averaging 249,300 ounces gold annually, totalling over 2.61 million ounces at an average cash cost of $461 an ounce. At a 5% discount rate, the project is calculated to have a pre-tax net present value of $939 million. At an 8% discount rate, the NPV comes to $709 million. In the base case scenario the internal rate of return is 36% with a payback period of 1.9 years.

President/CEO Brian Maher tells ResourceClips.com, “We’re looking at having full feasibility done about the middle of the year, so it’ll be late 2Q, early 3Q. It’s absolutely our intention to take this into production ourselves.

It’s absolutely our intention to take this into production ourselves—Brian Maher

“Our new VP of Operations, Fred Mason, has been in the industry over 40 years building and operating gold mines and milling facilities globally. So we’ll have no problem with the next stages,” Maher adds.

“We’re always looking to add to our properties package in the district. We think very highly of that particular greenstone belt, so if an opportunity presents itself, we’ll certainly add to our ground.

“We have some land up in the Beardmore-Geraldton area, but by and large our focus now is on the Magino Project,” he says. “We’ve spun out some of our assets into a new company called Goldstream Exploration. It’s a private company right now, but it’ll be going public in Q1 of 2012. We’ve done that so we could focus our personnel as well as our financial resources on Magino.

“We have about $30 million in the bank right now, so our treasury is very well set. We can be patient with financing and do so if and when we feel market conditions are appropriate,” Maher emphasizes.

“I would encourage investors to look at the scope of this project,” he concludes. “As we go through the process of de-risking it by taking it to feasibility, I think it’s a clear pathway to share price appreciation and, given the fact that we’re located in the mining-friendly jurisdiction of Ontario, the fact that the project has very robust economics, there’s excellent infrastructure, an active mining district—when you add together all those incremental attributes you start to see why this is such a compelling project.”

View Company Profile

Contact:
Prodigy Gold Inc
604.688.9006

by Greg Klein