Wednesday 13th December 2017

Resource Clips


May, 2012

The Contender

May 31st, 2012

Commerce Releases Quebec REE PEA, Moves to Prefeas

Robert Owen

Next Page 1 | 2

The bubble burst with such force that it blew away dozens of fledgling projects. That’s what happened to rare earths in 2011. Since then, the sector has seen a race to production which further separates the contenders from the pretenders. Last week’s preliminary economic assessment from Commerce Resources TSXV:CCE puts the Ashram Deposit at its northeast Quebec Eldor Project “in an advantageous position,” says Chris Grove, Corporate Communications.

Grove continues, “We have been rapidly advancing exploration at the project to be able to demonstrate this resource. Now, with this PEA, we have shown the robust economics of the Ashram Deposit, and we are excited about the next stages of development of it.”

Commerce Releases Quebec REE PEA, Moves to Prefeas

Commerce's Eldor Project: Mineralization from surface.

The study focuses solely on Eldor’s Ashram Deposit, projecting a 4,000-tonne-per-day open pit with a waste-to-ore strip ratio of 0.19:1, a pretax/prefinance payback period of 2.25 years, a CAPEX of $763 million (including a 25% contingency amount), a pretax/prefinance internal rate of return (IRR) of 44% and a pretax/prefinance net present value (NPV) of $2.32 billion (at a 10% discount rate).

Operating costs come to $95.20 per tonne treated or around $7.91 per kilogram of rare earth oxide produced. Production would average 16,850 tonnes REO per year over a 25-year mine life.

Some 3,538 tonnes of that annual total represent the five critical elements of the 17 rare earths: 2,870 tonnes neodymium oxide, 96 tonnes europium oxide, 26 tonnes terbium oxide, 106 tonnes dysprosium oxide and 440 tonnes yttrium oxide. That quintet is crucial to manufacturing phosphors and the high-powered permanent magnets prevalent in electric and hybrid drive systems.

Ashram’s March 2012 resource estimate results from 45 holes totalling 15,692 metres. The measured category comprises 1.59 million tonnes grading 1.77 total rare earth oxides (comprising 1.6% light rare earth oxides, 0.089% middle rare earth oxides and 0.085% heavy rare earth oxides). The indicated category comprises 27.67 million tonnes grading 1.9% TREO (comprising 1.77% LREO, 0.073% MREO and 0.056% HREO). The inferred category comprises 219.8 million tonnes grading 1.88% TREO (comprising 1.77% LREO, 0.068% MREO and 0.045% HREO). The estimate uses a cutoff of 1.25% TREO.

The medium and heavy rare-earths zone starts at surface and shows a resource of 6.55 million tonnes grading 1.63% TREO measured and indicated and 2.79 million tonnes grading 1.57% inferred.

Ashram’s mineralization extends about 700 metres along strike, over 500 metres across and over 600 metres at depth, remaining open at depth and on three sides.

“One of the most significant things about the deposit is that the rare-earths occur in well-understood mineralogy, being primarily in the minerals monazite, bastnaesite and xenotime,” Grove says. “Those three minerals have all been commercially processed before and are processed now. We will continue to advance our metallurgical investigations and look forward to the next set of results.”

Next Page 1 | 2

May 30th, 2012

Gold Reserves are Going to Play an Increased Role in the New Economic Order by GoldSeek
Gold’s “Contrarian Moment” by Equedia
The Case of the Vanishing Equities by the Financial Post
Retirement: Reality and Myth by the Grandich Report
Argentina Juniors Go on Sale: Limited Time Offer by VantageWire
Will ‘Peak Gold’ Exploration Continue to Grow?: USGS by the Gold Report

May 29th, 2012

Gold’s “Contrarian Moment” by Equedia
The Case of the Vanishing Equities by the Financial Post
Retirement: Reality and Myth by the Grandich Report
Argentina Juniors Go on Sale: Limited Time Offer by VantageWire
Will ‘Peak Gold’ Exploration Continue to Grow?: USGS by the Gold Report
What is Volume Telling Us about Gold Stocks? by GoldSeek

May 28th, 2012

Gold and Silver Stocks are in Deep Value Territory by the Gold Report
More Upside for Gold—or Gold Miners? by GoldSeek
Retirement: Reality and Myth by the Grandich Report
Argentina Juniors Go on Sale: Limited Time Offer by VantageWire
China Vows to Reverse Economic Slowdown, Encourage Private Investment by the Financial Post
Gold Will Rebound if Euro Crisis Worsens by Equedia

South of Klondike

May 28th, 2012

Prophecy adds PGEs to its Yukon Nickel-Copper-Gold Project

By Greg Klein

Next Page 1 | 2

Long after the Gold Rush that such inspired characters as Sam McGee, Blasphemous Bill and Dangerous Dan McGrew, Yukon is again coming to international prominence as a new gold play matures. In the territory’s southwest, Prophecy Platinum Corp TSXV:NKL is developing one of the world’s largest undeveloped resources of nickel-copper-platinum group elements towards PEA and prefeasibility.

Unlike Russia and South Africa, producers of 85% of world PGE supply, Robert Service’s old stomping ground has settled into a stable, mining-friendly jurisdiction. That bodes well for Prophecy‘s Wellgreen Project and its newly found potential to host a rare PGE resource in addition to nickel, copper and gold.

Prophecy adds PGEs to its Yukon Nickel-Copper-Gold Project

The company has just released 90 additional assays from a 2011 hole which show an average 28% increase in the full spectrum of six PGEs. Results from the hole released September 26, 2011, reported nickel-copper-gold assays in addition to platinum-palladium, but didn’t include results for the other four PGEs. The September assays showed

0.29% nickel, 0.18% copper, 0.34 g/t platinum, 0.33 g/t palladium and 0.05 g/t gold over 457.4 metres
(including 0.36% nickel, 0.3% copper, 0.63 g/t platinum, 0.54 g/t palladium and 0.08 g/t gold over 120.9 metres)
(and including 1.03% nickel, 0.75% copper, 1.33 g/t platinum, 1.64 g/t palladium and 0.17 g/t gold over 17.8 metres)

The hole started 7.1 metres from surface, extending to 263.8 metres. Ninety sample assays from the same hole released May 25 included the missing PGE quartet. Highlights include

0.023 g/t osmium, 0.019 g/t iridium, 0.054 g/t ruthenium and 0.024 g/t rhodium
0.022 g/t osmium, 0.013 g/t iridium, 0.038 g/t ruthenium and 0.018 g/t rhodium
0.023 g/t osmium, 0.021 g/t iridium, 0.055 g/t ruthenium and 0.025 g/t rhodium
0.05 g/t osmium, 0.03 g/t iridium, 0.078 g/t ruthenium and 0.035 g/t rhodium
0.018 g/t osmium, 0.016 g/t iridium, 0.042 g/t ruthenium and 0.02 g/t rhodium

Rhodium, platinum and palladium are the most important of the six PGEs, with some 80% to 85% going into auto-catalyst manufacture. Prophecy cites a 1997 Geological Survey of Canada bulletin stating that only Russia’s Norilsk ores have nickel-copper cores with comparable values of rhodium. As Prophecy Head Geologist Danniel Oosterman says, “A lot of nickel-copper-PGE deposits around the world don’t have appreciable values of PGEs beyond platinum and palladium.”

Assays are pending for an additional 260 samples from the same hole. Meanwhile, drilling continues. About 30% of a 9,000-metre underground program has been completed so far, with results to come. Surface drilling will resume within the next two weeks, with 7,000 metres planned. The plan is to upgrade the July 2011 resource.

As it stands now, the indicated category shows 220 million pounds nickel, 200 million pounds copper, 15.8 million pounds cobalt, 460,000 ounces platinum, 340,000 ounces palladium and 240,000 ounces gold. The inferred category shows 2.4 billion pounds nickel, 2.2 billion pounds copper, 191.3 million pounds cobalt, 4.9 million ounces platinum, 3.9 million ounces palladium and 2.1 million ounces gold. The estimate uses a 0.4% nickel-equivalent cutoff.

Prophecy‘s timeline calls for a preliminary economic assessment for possible release as early as June and a resource update in 1Q 2013, to be followed by prefeasibility.

Next Page 1 | 2

Graphite Digest — May 25, 2012

May 25th, 2012

May 25, 2012

Industrial Minerals reports 12% Drop in Graphite Prices

Natural graphite prices have fallen for the first time since March 2009, according to a May 23 Industrial Minerals article by Simon Moores. Large-flake graphite of +80 mesh grading 94% to 97% carbon fluctuated between $2,500 and $2,700 a tonne during 18 months of strong demand. Now prices have fallen as much as 12%, to between $2,200 to $2,700 per tonne. The smaller flake of -100 mesh, grading 94% to 97% C, fell by $100 to the $1,900-to-$2,300 range.

Slowing economies in China and Europe caused the decline, observers say. Moores reports that traders in the European market point to an industrial slowdown in the continent’s biggest consumer, Germany. Graphite demand is closely tied to the steel industry, which suffers from economic uncertainty, particularly in Eurozone countries, he writes.

Nevertheless a past-producing German graphite mine will reopen on June 21, according to a May 24 Industrial Minerals article by Jessica Roberts. Graphit Kropfmühl projects eventual production of 5,000 tonnes a year at its Kropfmühl Mine.

Watch excerpts from Simon Moores’ presentation at the Toronto Graphite-Express Conference.

Focus Metals now Focus Graphite

Effective May 25 Focus Metals Inc began trading as Focus Graphite Inc TSXV:FMS. The stock symbol remains the same. The new name was approved by shareholders on May 3 and formally announced May 24. The company describes its flagship Lac Knife Property in northeast Quebec as the world’s highest-grade technology graphite resource.

Lac Knife’s PEA is scheduled for release June 7. In cooperation with L’institut de recherche d’Hydro-Québec, Focus plans to open a production facility for battery-grade spherical graphite by the end of 2013, producing about 10,000 tonnes of 95% material for the first 12 months. The goal for 2015 is 15,000 tonnes. Focus also holds a 40% interest in Grafoid Inc, a JV created to find proprietary methods of manufacturing graphene using unprocessed graphite ore from Lac Knife.

Read more about the Hydro-Québec agreement and an interview with Focus President/CEO Gary Economo.

Read an interview about Focus’ Kwyjibo REE-Copper Project.

Read a feature story about Focus Metals.

Zenyatta reports North Ontario Graphite Assays of 6.6% C over 170m

Zenyatta Ventures Ltd TSXV:ZEN announced May 24 assays from its Albany Graphite Deposit in north Ontario. Results show

  • 6.6% carbon over 170 metres
    (including 6.5% over 88 metres)
    (and including 7.1% over 76 metres)

Individual samples assayed as high as 13.1%. Results are pending for another hole collared at the same location but drilled in the opposite direction. The collar is 450 metres from the project’s original discovery hole, which intersected eight separate and extensive breccia zones. Albany is 30 kilometres from the Trans-Canada Highway, a powerline and natural gas pipeline, 70 kilometres from rail and about five kilometres from an all-weather road.

Read a feature story about Zenyatta Ventures.

Energizer, Malagasy report Madagascar Graphite Results of 8.44% C over 106m, select Molo Deposit for Production, announce Appointments

Energizer Resources Inc TSX:EGZ and Malagasy Minerals Ltd announced May 24 assays from the Molo Graphite Deposit of their Joint Venture Property in south Madagascar. Results show

  • 8.44% carbon over 106 metres(including 11.17% over 37 metres)
  • 7.25% over 27 metres
  • 5.42% over 41 metres
  • 5.77% over 28.6 metres

Energizer holds a 75% interest and acts as project operator on the Joint Venture Property, which surrounds Energizer‘s wholly owned Green Giant Graphite-Vanadium Property on three sides.

Following airborne surveys, ground geophysics, mapping, trenching and 29 drill holes on a number of potential graphite deposits, Energizer chose the JV Property’s Molo Deposit for a graphite-resource estimate and to begin open-pit mine construction with production targeted for 2014 or 2015. The company’s evaluation includes metallurgical analysis, which confirms that jumbo-flake (+50 mesh) graphite at an average purity of 93% C can be liberated through simple crushing of graphite.

Energizer also announced the appointment of Albert A Thiess Jr as Director and Chair of Capital Projects and Mine Development Committee. Thiess brings over 35 years of accounting, finance and management experience to the company. Also appointed to the committee is Peter D. Liabotis, a chartered accountant with over 15 years experience.

Read an interview with Energizer Resources VP Business Development Brent Nykoliation.

Read feature stories about Energizer Resources’ vanadium deposit and its graphite deposits.

Uragold seeks Shareholder Approval for Reverse Stock Split

Uragold Bay Resources Inc TSXV:UBR announced May 24 that its directors propose to consolidate issued and outstanding common shares. Under the resolution, every four existing common shares would be consolidated into one new common share. The resolution will be submitted to shareholders at the June 19 AGM and is subject to TSXV approval. The resolution would allow, but not compel, the board to consolidate stock up to nine months after shareholder approval. The board’s decision will be based on market conditions. The company stated that consolidation would enhance the its liquidity, share marketability and shareholder profitability.

Uragold holds gold properties in south Quebec’s Appalachian belt and the Asbury Graphite Property in southwest Quebec. The properties have extensive historic exploration and well-established infrastructure. Uragold‘s business model focuses on developing a series of potential small-scale low-cost mining operations for potential cashflow while exploring other properties.

Graphite One drops Alaska Gold Project, begins Graphite Exploration

Graphite One Resources Inc TSXV:GPH announced May 24 it has relinquished its option on the Kelly Creek Gold Property in Alaska. The company will instead focus on its 3,108-hectare Graphite Creek Property, 65 kilometres north of Nome on Alaska’s Seward Peninsula.

The company has begun a helicopter-borne TDEM survey comprising both magnetics and electromagnetics of approximately 690 line-kilometres flown at 50-metre-spaced lines. The $4.5-million program will consist of prospecting, geological mapping, sampling and drilling along conductors delineated from the survey and previously defined graphite-bearing schist. The goal is to move the project towards a resource estimate. Graphite Creek is three kilometres from intertidal waters at Windy Cove, approximately 20 kilometres from roads and three kilometres from an airstrip.

Flinders reports Sweden Graphite Results including 11.8% C over 13.6m

Flinders Resources Ltd TSXV:FDR announced May 24 assays from its Kringel Deposit in east-central Sweden. Highlights include

  • 11.8% carbon over 13.6 metres
  • 7.6% over 18.3 metres
  • 7.9% over 15.8 metres
  • 8.9% over 14 metres
  • 8.2% over 14.3 metres
  • 7.6% over 15.3 metres
  • 9.5% over 11.3 metres
  • 7.6% over 12.6 metres

The Kringel Mine operated from 1996 to 2001, when production stopped due to falling graphite prices. The project has been on care and maintenance since. The Kringel Graphite Project has an historic, non-43-101 resource estimate of 6.9 million tonnes grading 8.8% in four separate deposits. The mine site has a non-43-101 estimate of 1.3 million tonnes grading 11.3%. Flinders intends to bring historic resource estimates into 43-101 compliance and test for extensions of the deposit below 50 metres and along strike. The resource estimates are scheduled for completion around the end of July.

Bolero appoints Paul Ogilvie CEO, grants Options, announces Intention to change Name

Bolero Resources Corp TSXV:BRU announced May 23 the appointment of Paul Ogilvie as CEO. R. Bruce Duncan has resigned as President/CEO and has been appointed Executive Chairman. Ogilvie has been granted one million options at $0.20 per share, which are subject to vesting over a six-month period and exercisable for five years. In 2007, he led a private investment group in the redevelopment of Industrial Minerals Inc, now known as Northern Graphite Corp TSXV:NGC. Starting in 2009, Ogilvie served as CEO/Director/Founder of MEGA Graphite Inc. The company also announced its intention to change its name to Canada Carbon Inc. (Update: On October 5, 2012, Bolero Resources Corp began trading as Canada Carbon Inc TSXV:CCB.)

Bolero‘s Maria Graphite Claims cover approximately 2,000 hectares in east Ontario, 17 kilometres from the Trans-Canada Highway and completely surrounding Northern Graphite‘s Bissett Creek Deposit. The company plans to begin work shortly.

Lomiko announces Drill Program, Resource Estimate Target Date

Lomiko Metals Inc TSXV:LMR announced May 22 a drill program of up to 70 holes on its Quatre Milles Graphite Property in south Quebec. Drilling will focus on verifying the areas of historic, non-43-101 high-grade results reported by Graphicor Resources. Lomiko plans to complete Phase I and II, followed by a flake-graphite resource estimate, by December.

The company’s 1,600-hectare Quatre Milles Property and 2,180-hectare Quatre Milles West Property are approximately one hour’s drive from the mining centre of Val-d’Or and 26 kilometres by paved road from the Trans-Canada Highway. Lomiko also has a zinc discovery on its 5,407-hectare Vines Lake Property in the Cassiar Gold Camp in the Liard Mining District of northwest BC. Further exploration is planned for this summer. The property has year-round paved road access via Highway 37N.

Read a feature story about Lomiko Metals.

Berkwood options Quebec Graphite Property

Berkwood Resources Ltd TSXV:BKR announced May 22 an option to earn a 100% interest in the Lac Gueret East Graphite Property in north-central Quebec. Under the agreement, Berkwood pays three prospectors a total of $25,000 on signing, $35,000 and 750,000 units (consisting of one share and one warrant exercisable for 24 months at $0.15) within seven days of TSXV approval, $75,000 and 500,000 shares six months after TSXV approval, $75,000 and 375,000 shares 12 months after TSXV approval and $75,000 and 375,000 shares 18 months after TSXV approval. The vendors share a 2% NSR, half of which Berkwood may buy for $1,000,000.

The 3,186-hectare property borders the eastern boundary of Mason Graphite’s Lac Gueret Property, about three hours by road from the deep-sea port of Baie-Comeau. Graphite in the area is present in marbles and in contact with or within paragneisses and ranges from 3% to 40% carbon, with flakes up to 5 mm in diameter, Berkwood stated. The company’s program includes compilation of historic work, an airborne electromagnetic survey, surface follow-up, stripping, trenching and drilling.

Disclaimer: Focus Graphite Inc and Lomiko Metals Inc are clients of OnPage Media, and the principals of OnPage Media may hold shares in those companies.

By Greg Klein

Read previous Graphite Digests here

May 24th, 2012

Retirement: Reality and Myth by the Grandich Report
Argentina Juniors Go on Sale: Limited Time Offer by VantageWire
Will ‘Peak Gold’ Exploration Continue to Grow?: USGS by the Gold Report
China Vows to Reverse Economic Slowdown, Encourage Private Investment by the Financial Post
What is Volume Telling Us about Gold Stocks? by GoldSeek
Gold Will Rebound if Euro Crisis Worsens by Equedia

Commerce reports Quebec REE PEA of $763M CAPEX, 44% IRR, $2.32B NPV, 10% Discount Rate, 2.25-yr Payback, 25-yr Life

May 24th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningCommerce Resources Corp TSXV:CCE announced a preliminary economic assessment for the Ashram Rare Earth Element Deposit on its Eldor Property in the Labrador Trough of northeast Quebec. The study projects a 4,000-tonne-per-day open-pit mine with a pretax/pre-finance payback period of 2.25 years, a CAPEX of $763 million (including a 25% contingency amount), a pretax/pre-finance internal rate of return of 44%, a pretax and pre-finance net present value of $2.32 billion (at a 10% discount rate) and a 25-year mine life.

The operating cost is estimated at $95.20 per tonne treated or approximately $7.91 per kilogram of rare earth oxide produced. Annual production is estimated at an average of 16,850 tonnes REO over the life of the mine, including 2,870 tonnes neodymium oxide, 96 tonnes europium oxide, 26 tonnes terbium oxide, 106 tonnes dysprosium oxide and 440 tonnes yttrium oxide.

President/CEO David Hodge commented, “The PEA displays robust economics for the Ashram Deposit and recommends the next steps for the economic evaluation of this very large and highly strategic resource. The high NPV derives partly from the value of the Ashram material in that it is enriched with all five of the critical REEs, namely neodymium, europium, dysprosium, terbium and yttrium. Management believes that significant benefits will be further realized during the next phase of metallurgy based on the test work completed to date, given the deposit’s simple mineralogy and history of successful commercial processing of Ashram’s three host minerals. We look forward to initiating the prefeasibility study to demonstrate this.”

View Company Profile

Contact:
David Hodge
President/Director
866.484.2700
604.484.2700

Read a feature story about Commerce Resources

Read an interview with David Hodge.

Disclaimer: Commerce Resources Corp is part of Zimtu Capital Corp TSXV:ZC. Zimtu is a client of OnPage Media, and the principals of OnPage Media may hold shares in Zimtu.

by Greg Klein

May 23rd, 2012

Will ‘Peak Gold’ Exploration Continue to Grow?: USGS by the Gold Report
China Vows to Reverse Economic Slowdown, Encourage Private Investment by the Financial Post
What is Volume Telling Us about Gold Stocks? by GoldSeek
Gold: The World’s Friend for 5,000 Years
Gold Will Rebound if Euro Crisis Worsens by Equedia
Gold Bear Baiting by the Grandich Report

May 22nd, 2012

What is Volume Telling Us about Gold Stocks? by GoldSeek
Gold: The World’s Friend for 5,000 Years
“Resources are an Essential Component for any Investor’s Portfolio” by the Gold Report
Gold Will Rebound if Euro Crisis Worsens by Equedia
Gold Bear Baiting by the Grandich Report
Miners can Raise Debt to Boost Returns and Dividends by the Financial Post