Wednesday 13th December 2017

Resource Clips


February, 2012

Sienna reports Peru Assays of 2.28 g/t Gold, 1,024.6 g/t Silver over 55.5m

February 29th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningSienna Gold Inc TSXV:SGP announced assays from the Callanquitas structure of its Igor project in the La Libertad region, Peru. Results include

1.33 g/t gold over 8.1 metres
(including 6.5 g/t gold over 1.5 metres)
2.16 g/t gold and 122.9 g/t silver over 7.3 metres
(including 4.22 g/t gold and 241.4 g/t silver over 3.5 metres)
2.28 g/t gold and 1,024.6 g/t silver over 55.5 metres
(including 5.58 g/t gold and 5,465 g/t silver over 1.2 metres)
50.7 g/t silver over 15.2 metres
56.2 g/t silver over 15.7 metres
1.87 g/t gold and 29.8 g/t silver over 13.5 metres
(including 3.41 g/t gold and 51.4 g/t silver over 6 metres)
1.7 g/t gold and 110.1 g/t silver over 74.5 metres
(including 4.67 g/t gold and 403 g/t silver over 17.6 metres)

President John Rucci tells ResourceClips.com, “We acquired Igor in 2005 along with 11 other projects. We dropped all of them but Igor. We’ve expanded Igor since then, adding another 300 hectares immediately adjacent to it on the southeast corner. It has been mined all the way from the Incas through the Spaniards to today. So it’s a very rich mountain. We have three targets that we’re chasing; we’ve identified two, which have a 43-101 resource of approximately 200,000 gold-equivalent ounces in the inferred category. Now our major discovery, Callanquitas, is to the northwest and looks very rich. It extends probably over a one-kilometre length, is open at depth and at strike, and is open to the north and south. We feel we have a major discovery here, with bonanza-type grades of silver, and even the gold values are very high as well.

These are huge grades. The company is targetting a million ounces of resource after this drilling program, and I think we’re going to achieve it—John Rucci

“In 2010 and 2011, we started out with a five-hole drill program. We found some very interesting stuff, and we were able to add another three holes to that which returned big grades again. That gave us the information which started the drilling program this year. We’re drilling infill holes and some step-out holes. So we’re going to close it in, get it down to a 50-metre grid, if we can, for better resource definition. We’ve got another 5,000 metres to drill on Callanquitas, and we’ve got another 3,000 metres to drill up in the Domo and Tesoros areas.

“These are huge grades,” Rucci exclaims. “These are phenomenal values. The company is targeting a million ounces of resource after this drilling program, and I think we’re going to achieve it. We are planning to have a 43-101-compliant resource—albeit in the inferred category—by the end of this year.”

He continues, “We had started a prefeasibility-type study for the small mine at Domo and Tesoros, and part of the drilling there was to close in the ounces that we have in the resource in that area. So that’s moving forward, but now in light of what’s coming out of Callanquitas, the design would have to be much different than what we’d planned. If in fact it provides what we need, we’ll start investigating opportunities to put the whole thing in production—Callanquitas, Domo and Tesoros.”

Rucci notes that the company was aiming to bring the Domo and Tesoros areas into production by late 2013, early 2014. However, if Sienna decides to include Callanquitas, “You’re talking a much bigger development.”

“The infrastructure is excellent in Peru,” he reports. “We have a lot of local workers up there, and equipment is readily available. Our manager of exploration is an expat, but the remainder are all Peruvians—Senior Geologist, field geologists. A good professional staff. We’ve got roads; we’ve got power; we’ve got water.”

Regarding funding, Rucci says, “At the present time we have about $3 million to $3.5 million in the treasury. That will take us through this drilling program. We are looking at raising funds possibly in September. However, if this news continues, and the stock rises to about $0.60, we do have warrants that will bring in about $11 million to the treasury.

“I’m very happy with the project,” he concludes. “We’ve had about five different drill programs on it. We have a resource on the property, and if we found nothing else we’d still generate about $1 million net a month for the company with these prices. Now we have this huge find and the question is, how big is it? I think it could be very large. So I’m very excited, and I think the future’s very bright for Sienna.”

View Company Profile

Contact:
John Rucci
President
403.508.2061

by Ted Niles

Two Strategic Minerals

February 29th, 2012

Energizer Fast-tracks Vanadium and Graphite in Madagascar

By Greg Klein

According to Brent Nykoliation, Energizer Resources TSX:EGZ faces a question of identity. “Are we a vanadium company with a graphite credit or a graphite company with a vanadium credit?” the VP of Business Development asks. “The answer is, we don’t know yet.”

A January 2011 resource estimate had already established Energizer’s Green Giant Property in Madagascar as one of the world’s largest known vanadium deposits. On that note, a PEA was initiated. Then the discovery of graphite put a whole new perspective on the project. Further exploration identified five graphitic trends apart from the vanadium zones. Those findings prompted the company to negotiate a joint venture with Malagasy Minerals MGY, in which Energizer holds a 75% interest and acts as project operator on a property that surrounds Green Giant on three sides.

Energizer Fast-tracks Vanadium and Graphite in Madagascar

Although they are rarely found together, Energizer’s Madagascar properties host both graphite and vanadium.

“The JV Property is significant for two reasons,” Nykoliation says. “First, we knew the vanadium was going to travel south of our border, so we made the deal to secure the extension of the vanadium. But second, we also found that graphite was in our vanadium trend. So in our 100%-owned property we have about 3.8% graphitic carbon with the vanadium. At that point, we understood that we had graphite on the property and much higher grades in areas that were exclusively graphite and no vanadium.

“Our property went from 21 kilometres to 120 kilometres long, and we have tied up about 75% to 80% of a very significant zone in southern Madagascar which is known for very rich graphite and vanadium. There’s no other company and no other place we know of that has a graphite discovery of this magnitude—a cumulative 320 kilometres. As our VP of Exploration Craig Scherba says, it’s very rare to find those two together. So we have two strategic minerals in one source.”

Traditionally associated with the steel industry, both vanadium and graphite are considered crucial to a cleaner, greener future. A 2009 report from investment banker Piper Jaffray predicts energy storage to be a $600-billion industry by 2020, with 51% of that devoted to battery technologies. Among the contenders are lithium vanadium phosphate batteries for electric vehicles and vanadium flow batteries for power grid storage. VFBs require vanadium over 98.4%, an especially costly grade. Energizer says its deposit, “one of the largest and purest in the world,” is especially well-suited to make the grade.

Graphite’s share of the green economy inspires even headier projections. Predicted demand from lithium-ion batteries, pebble-bed nuclear reactors, fuel cells, solar panels and other new technologies has triggered an exploration boom. Graphene, an ultra-thin, flexible derivative 200 times stronger than steel, inspires a whole new world of technological marvels. These new uses call for high-purity flake graphite. While metallurgical analysis continues on Energizer’s graphite, the company states that it is “comfortable in identifying the graphite as flake, based on visual observation and cursory testing.”

Green Giant has a January 2011 vanadium resource estimate of 49.5 million tonnes grading 0.69% for 756.3 million pounds vanadium pentoxide indicated and 9.7 million tonnes grading 0.63% for 134.5 million pounds vanadium pentoxide inferred.

The resource, Nykoliation explains, “was in our original property of 21 kilometres and that vanadium represents only about 20% of our 21-kilometre trend. Then on top of that we increased our vanadium trend by about 50 kilometres.”

Energizer released Green Giant drill and trench graphite carbon assays. Results from the Fondrana Zone include

  • 7.01% carbon over 41.5 metres
  • 5.63% over 24 metres
  • 5.18% over 18 metres
  • 4.73% over 12 metres
  • 5.88% over 5.9 metres

Fotsy Zone results include

  • 5% carbon over 15 metres
  • 4.39% over 11 metres
  • 4.64% over 8 metres
  • 5.18% over 5 metres

With the JV Property included, Energizer has identified 17 distinct graphitic zones, supporting its belief that the property constitutes a graphite camp. “We’ve drilled seven of those zones, and the assays will be coming back over the next few weeks,” Nykoliation adds.

In 18 to 24 months, assuming we hit all our timelines, we could have a mine —Brent Nykoliation

“We’re moving very quickly to delineate a 43-101 resource on the graphite,” he says. “We need to determine where in the 17 zones we’ll delineate that resource…. We expect to have a 43-101 resource by July or August of this year. We expect to have a PEA completed probably by September or October, and then we’ll be in a position to have a bankable feasibility, along with a pilot plant project that would start earlier, by December of this year.”

Nykoliation explains, “The reason we can fast track this is our partnership with DRA Mineral Projects, Africa’s leading mine development firm. DRA runs 29 mines around the world. They run mines for Xstrata XSRAF, Rio Tinto RIO, Vale VALE, and now they’re partnering with us. They’re the ones who’ll do our PEA and our bankable. In 18 to 24 months, assuming we hit all our timelines, we could have a mine open up. DRA could be our total engineering, construction, procurement and management solution for mines.”

Getting back to the question of identity, it’s a matter of economics. “The capex on a graphite mine is much lower than on a vanadium mine. So graphite might be the springboard to get the mine open. Then the revenue from that would help fund our vanadium operation,” Nykoliation says.

Offtake discussions are already underway, and the suitors could come from a number of countries. “We’re close to the Chinese market,” he says. “We’re perfectly situated for South Africa, one of the largest vanadium consumers in the world. We are ideally situated for Europe. Madagascar is an extremely mining-friendly jurisdiction. But it also has location, location, location.”

It’s well-positioned in other ways as well. Nykoliation concludes, “We have a dual offering—two strategic minerals, one source. We have a very large project, and we’re fast-tracking it. We have a great partner in DRA and a great location in Madagascar. We’re uniquely situated.”

At press time, Energizer had 153.7 million shares outstanding at $0.29 a share for a market cap of $44.6 million.

Read previous feature on Energizer Resources.

Read feature story about graphite.

February 29th, 2012

“You Can Make a Lot of Money in Exploration”by Equedia
Small Cap Gold Stocks Successfully Retest 2010 Breakoutby GoldSeek
Gold, Silver Juniors Should Shine in 2012by The Gold Report
Exploring Graphite’s Role in a Green Economyby VantageWire
Demographic Change and Holistic Investmentby The Grandich Letter

Gold Canyon reports Ontario Springpole Project Resource Estimate

February 29th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningGold Canyon Resources Inc TSXV:GCU announced that it has updated the NI 43-101 resource estimate for its Springpole gold project northeast of Red Lake, Ontario. Springpole now has indicated resources of 30 million tonnes grading 1.26 g/t gold and 5 g/t silver for contained ounces of 1.22 million gold and 4.82 million silver. The project has inferred resources of 60 million tonnes at 1.27 g/t gold and 6 g/t silver for 2.45 million ounces gold and 11.58 million ounces silver.

Director Quinton Hennigh commented, “The very positive news announced today is a testament to careful geological modelling, the hard work of project management and staff, and to the tenacity of Gold Canyon’s management. Although the large size of this resource is impressive, we feel that the gold and silver grades are an equally important reflection of the high quality of the Springpole Project. This resource gives us a solid foundation upon which we believe we can quickly build significant upside through ongoing drilling in near-surface areas proximal to this resource, along the strike of the Portage Zone to the southeast, and at depth where drilling has recently encountered higher-grade mineralization.”

View Company Profile

Contact:
Akiko Levinson
President/Director
604.682.3234

or Leo Karabelas
Investor Relations
416.543.3120

by Ted Niles

Teranga VP Kathy Sipos on Senegal gold assays of 3 g/t over 85m

February 29th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningTeranga Gold Corporation TSX:TGZ announced results from the Mine License area of the Sabodala Gold Mine in Senegal, West Africa. Assays include

3 g/t gold over 85 metres (including 6.5 g/t over 19 metres)
2.4 g/t over 10 metres
7.2 g/t over 11 metres
1.8 g/t over 15 metres
1.3 g/t over 99 metres
4.2 g/t over 11 metres
1.4 g/t over 29 metres
14.7 g/t over 6 metres
1.8 g/t over 43 metres (including 5.3 g/t over 6 metres)
2.5 g/t over 19 metres (including 6.1 g/t over 4 metres)

VP Investor Relations Kathy Sipos tells ResourceClips.com, “We have two distinct exploration programs, one being on our Regional Land Package—which is just over 1,500 square kilometres—the other on our Mine License, which is the 33-square-kilometre package around our mill. We’re spending $20 million on each program. All of those are permitted ounces on the Mine License, so it’s obviously advantageous to us when we do have good holes there because it’s all truckable to the mill; there’s no permitting required, etc. We’ve done a lot of drilling to the north of the current Sabodala pit, and we’re getting very good results that make it quite likely that we will be extending the current pit both to the north and to depth. We see adding potentially 250,000 to 500,000 ounces in this area as well as below this area.

We are very much looking forward to a good year ahead with both an increase in production and a significant reduction in our cash cost [per ounce gold] to $600 to $650 this year—Kathy Sipos

“We’re very excited that we’re getting a lot of great results which are outside of the current pit. Really this program is meant to find both new ounces altogether as well as take the ounces we have in the inferred category and get them into the measured and indicated and, ultimately, into the reserve category.”

Regarding the production schedule at Sabodala, Sipos says, “Through the course of last year we’ve worked on doubling our mill capacity from 2 million tonnes per annum to 4 million tonnes per annum. That [expansion] should be completed at the end of this quarter. They’ve just finished doing all the tie-ins—where they have to do the big shutdown in order to get everything hooked up—so everything’s online and on schedule, and the mill should be fully operational by the end of 1Q. That will allow us to have a base going through that mill of 200,000 ounces [gold] per year. We expect to produce between 210,000 and 225,000 ounces this calendar year, which is about a 60% increase from last year.”

Sipos updates the status of the hedge book which it inherited from Mineral Deposits TSX:MDM in 2010: “We had 174,000 ounces at the end of 2011. We have a specific delivery schedule, and we have announced that we will defer 1Q deliveries into the second half of the year, strictly as a cash-management tool. We do plan on delivering all the anticipated ounces that are in the schedule for this year, and I believe that means we’ll have about 66,000 ounces left at the end of 2012. We will have the program completely extinguished by August 2013, unless we speed up deliveries within this calendar year—which we very well could. We are very conscious of getting rid of the book as quickly and prudently as possible.

“We are very much looking forward to a good year ahead with both an increase in production and a significant reduction in our cash cost [per ounce] to $600 to $650 this year,” Sipos concludes. “We will see significant margin expansion this year, with cash costs coming down. When the hedge book has been eliminated next year we could get another doubling of our margins. With good drill results coming through, it’s certainly setting itself up to be a good year for us.”

View Company Profile

Read more about Teranga Gold

Contact:
Kathy Sipos
VP Investor Relations
416.594.0000

by Ted Niles

Rare Element reports Wyoming Gold Assays including 1.21 g/t over 176.8m

February 29th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningRare Element Resources Ltd TSX:RES announced assay results from its Sundance gold project in Wyoming. Highlights include

0.49 g/t gold over 18.3 metres
1.21 g/t over 176.8 metres
1.35 g/t over 12.2 metres
1.24 g/t over 12.2 metres
0.61 g/t over 9.1 metres
0.45 g/t over 12.2 metres
0.61 g/t over 9.1 metres
0.64 g/t over 6.1 metres
0.45 g/t over 15.2 metres

Exploration Manager John Ray commented, “[Hole] SUN-116 located at the Smith target area has the highest gold grades and thickest interval of plus 1 g/t gold ever reported for the entire district and is open in two directions. We are excited about the discovery of this new prospect and anticipate determining the size and orientation of its high-grade nucleus. Most of the holes in the East Taylor area have significant near-surface intercepts of +1 g/t gold. Our goal of the 2011 drilling, to find areas of higher-grade gold mineralization, was achieved. Over the next few years additional drilling will be needed to determine the extent of this mineralization.”

View Company Profile

Contact:
Anne Hite
Director of Investor Relations
720.278.2466

by Ted Niles

Premier reports Ontario Gold Assays as high as 10.68 g/t over 16m

February 29th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningPremier Gold Mines Limited TSX:PG announced drill results from its Trans-Canada project in northwestern Ontario. Highlights include

15.77 g/t gold over 9 metres (including 109 g/t over 1 metre)
10.68 g/t over 16 metres (including 102 g/t over 1.5 metres)
255 g/t over 1 metre
74.2 g/t over 1.5 metres
94.5 g/t over 1.3 metres

VP Exploration Brian Morris said, “Drilling has now extended multiple high-grade horizons over plunge lengths that measure in kilometres. The ongoing program continues to see frequent sightings of visible gold demonstrating the robust nature and consistent down-plunge continuity of mineralization which should allow us to improve the economics of the project.”

View Company Profile

Contact:
Ewan Downie
President/CEO
807.346.1390

by Ted Niles

Sandspring reports Guyana Gold Assays including 1.41 g/t over 165m

February 29th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningSandspring Resources Ltd TSXV:SSP announced assays from its Toroparu gold deposit in Guyana, South America. Results include

1.23 g/t gold over 118.5 metres
1.41 g/t over 165 metres
1.96 g/t over 21 metres
1.97 g/t over 24 metres
1 g/t over 73.5 metres
1.32 g/t over 28 metres
1.14 g/t over 57 metres
1.46 g/t over 115.5 metres
1.55 g/t over 126 metres
2.15 g/t over 87 metres
1.86 g/t over 23.5 metres
0.97 g/t over 107 metres (including 1.09 g/t over 80 metres)

VP Exploration Werner Claessens commented, “The recently released updates of the mineral resource estimate and PEA for Toroparu reflect a solid project based on a world-class resource with robust project economics. The reported results from our ongoing infill drill program continue to contribute to the growth potential of the measured and indicated resources within the project. I believe that step-out drilling along strike of the deposit zone in both directions and the RC exploration drilling further to the northwest will reveal more mineralization systems, which will be developed to additional resources.”

View Company Profile

Contact:
Investor Relations
720.854.0104

by Ted Niles

Teranga reports Senegal Gold Assays up to 3 g/t over 85m

February 28th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningTeranga Gold Corporation TSX:TGZ announced results from the Mine License area of the Sabodala Gold Mine in Senegal, West Africa. Assays include

3 g/t gold over 85 metres (including 6.5 g/t over 19 metres)
2.4 g/t over 10 metres
7.2 g/t over 11 metres
1.8 g/t over 15 metres
1.3 g/t over 99 metres
4.2 g/t over 11 metres
1.4 g/t over 29 metres
14.7 g/t over 6 metres
1.8 g/t over 43 metres (including 5.3 g/t over 6 metres)
2.5 g/t over 19 metres (including 6.1 g/t over 4 metres)

VP Investor Relations Kathy Sipos tells ResourceClips.com, “We have two distinct exploration programs, one being on our Regional Land Package—which is just over 1,500 square kilometres—the other on our Mine License, which is the 33-square-kilometre package around our mill. We’re spending $20 million on each program. All of those are permitted ounces on the Mine License, so it’s obviously advantageous to us when we do have good holes there because it’s all truckable to the mill; there’s no permitting required, etc. We’ve done a lot of drilling to the north of the current Sabodala pit, and we’re getting very good results that make it quite likely that we will be extending the current pit both to the north and to depth. We see adding potentially 250,000 to 500,000 ounces in this area as well as below this area.

We are very much looking forward to a good year ahead with both an increase in production and a significant reduction in our cash cost [per ounce gold] to $600 to $650 this year—Kathy Sipos

“We’re very excited that we’re getting a lot of great results which are outside of the current pit. Really this program is meant to find both new ounces altogether as well as take the ounces we have in the inferred category and get them into the measured and indicated and, ultimately, into the reserve category.”

Regarding the production schedule at Sabodala, Sipos says, “Through the course of last year we’ve worked on doubling our mill capacity from 2 million tonnes per annum to 4 million tonnes per annum. That [expansion] should be completed at the end of this quarter. They’ve just finished doing all the tie-ins—where they have to do the big shutdown in order to get everything hooked up—so everything’s online and on schedule, and the mill should be fully operational by the end of 1Q. That will allow us to have a base going through that mill of 200,000 ounces [gold] per year. We expect to produce between 210,000 and 225,000 ounces this calendar year, which is about a 60% increase from last year.”

Sipos updates the status of the hedge book which it inherited from Mineral Deposits TSX:MDM in 2010: “We had 174,000 ounces at the end of 2011. We have a specific delivery schedule, and we have announced that we will defer 1Q deliveries into the second half of the year, strictly as a cash-management tool. We do plan on delivering all the anticipated ounces that are in the schedule for this year, and I believe that means we’ll have about 66,000 ounces left at the end of 2012. We will have the program completely extinguished by August 2013, unless we speed up deliveries within this calendar year—which we very well could. We are very conscious of getting rid of the book as quickly and prudently as possible.

“We are very much looking forward to a good year ahead with both an increase in production and a significant reduction in our cash cost [per ounce] to $600 to $650 this year,” Sipos concludes. “We will see significant margin expansion this year, with cash costs coming down. When the hedge book has been eliminated next year we could get another doubling of our margins. With good drill results coming through, it’s certainly setting itself up to be a good year for us.”

View Company Profile

Read more about Teranga Gold

Contact:
Kathy Sipos
VP Investor Relations
416.594.0000

by Ted Niles

February 28th, 2012

Small Cap Gold Stocks Successfully Retest 2010 Breakoutby GoldSeek
Gold, Silver Juniors Should Shine in 2012by The Gold Report
Investing in Mongolia’s Mining Boomby Equedia
Exploring Graphite’s Role in a Green Economyby VantageWire
Demographic Change and Holistic Investmentby The Grandich Letter