Wednesday 13th December 2017

Resource Clips


November, 2012

Week in review

November 30th, 2012

A mining and exploration retrospect for November 24 to 30, 2012

by Greg Klein

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Amalgamation, acquisitions bring big news to Canada’s uranium play

Friday’s announcement from Clermont Capital Inc TSXV:XYZ.P and NexGen Energy Ltd shows companies joining forces to combine money, projects and expertise in uranium exploration. Clermont announced a letter of intent to acquire NexGen in a three-cornered amalgamation in which a Clermont subsidiary amalgamates with NexGen to create a new Clermont subsidiary. The capital pool company intends the acquisition as a qualifying transaction to become a TSXV Tier-2 issuer.

So there’s good money and a good technical team coming behind the deal. And it’s happening when the market’s clearly hungry for a discovery. It sure looks like Fission and Alpha have something to be excited about. We hope that we can be part of that ride as well.—Clermont Capital president/CEO/director Arlen Hansen on a planned amalgamation with NexGen Energy and properties acquisition

Currently NexGen’s key asset is the Radio uranium project in northern Saskatchewan’s Athabasca Basin. NexGen holds an option to acquire an initial 70%, then the remaining 30% subject to a 2% NSR. Exploration has identified drill targets that are interpreted to be on the same structural trend as Rio Tinto’s Roughrider deposits and Fission Energy’s TSXV:FIS J-Zone. Roughrider holds resources of 17.2 million pounds U3O8 indicated and 40.7 million pounds inferred, while the J-Zone holds 7.37 million pounds indicated and 1.51 million pounds inferred. NexGen plans drilling in Q1 2013.

NexGen’s wholly-owned Rook 1 property sits directly northeast of the near-surface Patterson Lake South uranium project, a JV of Fission and Alpha Minerals TSXV:AMW.

On November 15 NexGen announced a definitive agreement to purchase the majority of Mega Uranium’s TSX:MGA Canadian projects in the Athabasca Basin and Nunavut’s Thelon Basin. As a result, Mega is anticipated to acquire up to a 38% interest in NexGen.

Among the conditions for the Clermont-NexGen acquisition, NexGen would close a private placement of at least $6.6 million. Prior to closing the acquisition, Clermont would consolidate its shares on a 2.35-for-one basis. On closing, NexGen shareholders would receive one post-consolidation Clermont share for each NexGen share.

Speaking to ResourceClips Friday afternoon, Clermont president/CEO/director Arlen Hansen said, “It’s a very large land package and uranium exploration takes a lot of time and money, so we’re getting the NexGen operational team, which includes some ex-Rio Tinto guys and Leigh Curyer, who raised hundreds of millions of dollars for Southern Cross before it was taken out in the uranium sector as well.

“So there’s good money and a good technical team coming behind the deal. And it’s happening when the market’s clearly hungry for a discovery. It sure looks like Fission and Alpha have something to be excited about. We hope that we can be part of that ride as well.”

U3082014 apologizes. Now VMS goes after axeman#, tamerackerdown and nttg2005

A mining and exploration retrospect

VMS Ventures TSXV:VMS greeted Friday by announcing progress in its battle against anonymous posters on the Stockhouse bullboard. Following what the company alleges to have been “false and malicious posts” between November 2, 2010 and May 10, 2012, VMS has now received court orders requiring internet service providers to identify three more commentators. The company had already obtained court orders requiring Stockhouse to divulge their internet protocol addresses. VMS said it “intends to pursue all legal options available against these posters in order to protect its reputation.”

The company also announced a settlement with a poster identified as U3082014 regarding statements uploaded between April 15, 2011 and August 27, 2012. Details are confidential, apart from the apology U3082014 submitted to VMS’ lawyers in September and posted on Wednesday.

Richmont closes Francoeur Mine, suspends Wasamac exploration

Francoeur had been struggling but, just the same, the news seemed sudden. Richmont Mines TSX:RIC announced Thursday the immediate shutdown of its 20-year-old gold mine in Quebec’s Rouyn-Noranda region. President/CEO Paul Carmel blamed the decision on high costs due to “low realized grades, difficult mining conditions and a tight labour pool for the experienced miners required for the challenging mining conditions at Francoeur.” As recently as November 8, however, Carmel sounded fairly optimistic as he spoke of “ramping up the Francoeur Mine to full production levels.”

The company’s pre-tax write-off will range between $11 million and $13 million. Immediate layoffs hit 115 workers, while another 35 will stay on for four months of decommissioning. Richmont is holding to its 2012 guidance of 65,000 ounces but 2013 is estimated between 65,000 and 70,000 ounces, down from a previous projection of 85,000 to 95,000 ounces. The company also operates the Beaufor Mine near Val d’Or, Quebec and the Island Gold Mine in northern Ontario.

Exploration at Richmont’s Wasamac gold project near Rouyn-Noranda has been suspended until next year.

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Clermont, NexGen amalgamation LOI follows NexGen, Mega Uranium property acquisition definitive agreement

November 30th, 2012

Resource Clips - essential news on junior gold mining and junior silver mining(Update: With the reverse takeover of Clermont Capital complete, NexGen Energy Ltd TSXV:NXE began trading on April 23, 2013.)

Clermont Capital Inc TSXV:XYZ.P announced a letter of intent on November 30 to acquire NexGen Energy Ltd. The arrangement would involve a three-cornered amalgamation in which a Clermont subsidiary amalgamates with NexGen to create a new Clermont subsidiary. The capital pool company intends the acquisition as a qualifying transaction to become a TSXV Tier-2 issuer.

Currently NexGen’s key asset is the Radio uranium project in northern Saskatchewan’s Athabasca Basin. NexGen holds an option to acquire an initial 70%, then the remaining 30% subject to a 2% NSR. Exploration has identified drill targets that are interpreted to be on the same structural trend as Rio Tinto’s Roughrider deposits and Fission Energy’s TSXV:FIS J-Zone. Roughrider holds resources of 17.2 million pounds U3O8 indicated and 40.7 million pounds inferred, while the J-Zone holds 7.37 million pounds indicated and 1.51 million pounds inferred. (Update: The J-Zone’s December 6, 2012 resource now shows 10.28 million pounds indicated and 2.74 million pounds inferred.) NexGen plans drilling in Q1 2013.

NexGen’s wholly-owned Rook 1 property sits directly northeast of the near-surface Patterson Lake South uranium project, a JV of Fission and Alpha Minerals TSXV:AMW.

On November 15 NexGen announced a definitive agreement to purchase the majority of Mega Uranium’s TSX:MGA Canadian projects in the Athabasca Basin and Nunavut’s Thelon Basin. As a result, Mega is anticipated to acquire up to a 38% interest in NexGen.

Among the conditions for the Clermont-NexGen acquisition, NexGen would close a private placement of at least $6.6 million. Prior to closing the acquisition, Clermont would consolidate its shares on a 2.35-for-one basis. On closing, NexGen shareholders would receive one post-consolidation Clermont share for each NexGen share.

Clermont president/CEO/director Arlen Hansen tells ResourceClips, “It’s a very large land package and uranium exploration takes a lot of time and money, so we’re getting the NexGen operational team, which includes some ex-Rio Tinto guys and Leigh Curyer, who raised hundreds of millions of dollars for Southern Cross before it was taken out in the uranium sector as well.

“So there’s good money and a good technical team coming behind the deal. And it’s happening when the market’s clearly hungry for a discovery. It sure looks like Fission and Alpha have something to be excited about. We hope that we can be part of that ride as well.”

by Greg Klein

A portrait of AME BC

November 29th, 2012

Visual Capitalist commemorates 100 years of the Association for Mineral Exploration British Columbia

by Greg Klein

Using a striking interplay of facts, figures and illustrations, Visual Capitalist commemorated a milestone in B.C. mining history—the 100th anniversary of the Association for Mineral Exploration British Columbia.

When AME BC started out back in 1912, the province boasted 86 mines employing 3,837 people. Now B.C.’s down to 21 mines but the industry employs some 32,000 workers in everything from mineral exploration to quarrying. In 1912 B.C. mines produced commodities worth $771.4 million, adjusted for inflation. Last year the number came to $8.747 billion.

Yet the B.C. organization is hardly limited to B.C. This year’s AME BC Mineral Exploration Roundup brought 8,320 participants from 38 countries. The world’s premier technical mineral exploration conference next takes place January 28 to 31, 2013.

Visual Capitalist points out another aspect of B.C.’s influence on the global mining scene. Thirty-five countries have now adopted B.C.’s health, safety and reclamation code. Just recently, the province’s international stature has been further enhanced with a $25-million federal grant to create a Vancouver-based Canadian International Institute for Extractive Industries and Development. The project includes AME BC as a strategic partner, along with the University of British Columbia and Simon Fraser University. “The new institute will offer developing countries knowledge of best practices in extractive technology, public policy and regulations, and health and education outreach in order to empower industry, governments and non-governmental organizations to reduce poverty while protecting the environment,” according to a November 23 AME BC statement.

AME BC president/CEO Gavin Dirom added, “Having this new institute based in Vancouver reflects the fact that British Columbia is the global centre of excellence in mineral exploration and development. Along with being the headquarters of many major international mining companies, there are 1,000 junior exploration and intermediate mining companies that are exploring, discovering and developing mineral resources around the globe. On top of that, there are approximately 2,400 international service consultants and supplier companies supporting the sector in technical, legal and financial affairs.”

The announcement came just days before AME BC’s hundredth-birthday bash, which drew over 500 people to the November 27 celebration.

Read more about AME BC’s past, present and future here. And, courtesy of Visual Capitalist, here’s a visual celebration of AME BC’s hundred years.

 

Visual Capitalist commemorates 100 years of the Association for Mineral Exploration British Columbia

Infographic courtesy of Visual Capitalist.

Disclaimer: Zimtu Capital Corp TSXV:ZC is a client of OnPage Media.

Gavin Dirom, president/CEO of the Association for Mineral Exploration British Columbia, on the organization’s 100th anniversary

November 29th, 2012

…Read More

November 28th, 2012

Top 10 reasons to invest in mining stocks by GoldSeek
Crimex at its best by the Grandich Report
Will China’s trade agenda squeeze fluorspar supply? by Equedia
Fund managers face off in the quest for mining profits by the Gold Report
Rick Rule: Be a risk manager, not a reward-chaser by VantageWire
Bank of Canada near comatose as Mark Carney tackles British infighting by the Financial Post

Not today, thank you

November 27th, 2012

Investors remain aloof despite news from gold and silver producers

by Greg Klein

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Encouraging drill results and profitable production aren’t always enough to impress investors, as Claude Resources TSX:CRJ and SilverCrest Mines TSXV:SVL saw on November 27. Claude’s Saskatchewan gold assays and SilverCrest’s Mexican silver-gold-copper results each brought a slight but perceptible stock pullback.

Claude’s November 27 results came from its Santoy Gap deposit on the Seabee Gold Project, which includes two operating mines, Seabee and Santoy 8, in the La Ronge mining district of northeastern Saskatchewan. The assays show:

  • 8.16 grams per tonne gold over 5.93 metres
  • 5.07 g/t over 6 metres
  • 3.51 g/t over 4.53 metres
  • 5.03 g/t over 1.58 metres
  • 4.68 g/t over 1.41 metres
News from gold and silver producers

Claude Resources’ Seabee Gold Project in northeastern Saskatchewan features two operating mines as well as resource expansion.

True widths are estimated between 75% and 95%. A 3 g/t lower cutoff was applied, but no top cut. The deepest interval stopped at 649 metres’ depth.

These three holes extend the Santoy Gap mineralized system down dip and along strike toward Santoy 8, suggesting possible continuity, the company stated.

Results from this year’s 71-hole, 35,100-metre program will be used to update Santoy Gap’s December 2011 resource estimate, which sits at 2.32 million tonnes averaging 6.63 g/t for 495,000 ounces gold. The resource update, as well as an updated life-of-mine plan, comes due by year-end. Claude is now building an 850-metre-long exploration drift for further drilling.

The 14,400-hectare Seabee Gold Project’s five deposits come to:

  • proven and probable reserves totalling 2.1 million tonnes with an average 5.37 g/t for 355,600 gold ounces
  • indicated resources totalling 410,900 tonnes with an average 5.35 g/t for 70,700 ounces
  • inferred resources totalling 4.19 million tonnes with an average 6.48 g/t for 873,400 ounces.

In Ontario’s Red Lake mining camp, Claude’s 4,000-hectare Madsen gold project includes four past-producing mines, along with some modern infrastructure intact. The high-grade estimate for Madsen’s four zones shows:

  • indicated resources totalling 3.24 million tonnes averaging 8.93 g/t gold for 928,000 ounces gold
  • inferred resources totalling 788,000 tonnes averaging 11.74 g/t for 297,000 ounces.

A 16-hole, 19,100-metre program using one surface and two underground rigs wrapped up in September. The company plans further drilling, along with a PEA study, next year. Infrastructure includes a permitted tailings facility, 500 tpd mill and a 1,250-metre shaft.

Claude’s other northeastern Saskatchewan project, the 40,373-hectare Amisk Lake property, comes with resources that show:

  • an indicated category of 30 million tonnes averaging 0.85 g/t gold and 6.17 g/t silver for 827,000 ounces gold and 5.98 million ounces silver
  • an inferred category of 28.65 million tonnes averaging 0.64 g/t gold and 4.01 g/t silver for 589,000 ounces gold and 3.7 million ounces silver.

Amisk is slated for a resource update and PEA to be released next year.

Seabee’s November 27 drill results followed closely on Claude’s Q3 report, which announced a net profit of $3 million or $0.02 a share and 15,073 ounces of gold production with cash costs of $920 an ounce. The company projects increasing production and decreasing costs reaching an estimated 90,000 ounces annually at about $800 an ounce by 2017.

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November 27th, 2012

Will China’s trade agenda squeeze fluorspar supply? by Equedia
Fund managers face off in the quest for mining profits by the Gold Report
Rick Rule: Be a risk manager, not a reward-chaser by VantageWire
Mark Carney’s appointment means big changes for England, not Canada by the Financial Post
Grandich update: U.S. stocks, gold, mining/exploration—plus anticipating good riddance to 2012 by the Grandich Report
Bourbon Street parade of low-paid college grads by GoldSeek

November 26th, 2012

Fund managers face off in the quest for mining profits by the Gold Report
Rick Rule: Be a risk manager, not a reward-chaser by VantageWire
Greece, Gaza unrest pushing gold higher by Equedia
Mark Carney’s appointment means big changes for England, not Canada by the Financial Post
Grandich update: U.S. stocks, gold, mining/exploration—plus anticipating good riddance to 2012 by the Grandich Report
Bourbon Street parade of low-paid college grads by GoldSeek

Pretium Resources president/CEO Bob Quartermain on the Valley of the Kings resource update for the Brucejack Project

November 26th, 2012

…Read More

Week in review

November 23rd, 2012

A mining and exploration retrospect for November 17 to 23, 2012

by Greg Klein

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Quebec’s new royalty regimen “in a matter of months”

The new Parti Quebecois government unveiled its first budget this week without changing the royalty or tax code for miners. But, the Globe and Mail reported Wednesday, that could change early next year. The PQ wants to extract another $388 million from the industry. “We started working on a new framework and this regime will come into force in a matter of months,” the G&M quoted Finance Minister Nicolas Marceau.

During last summer’s election campaign, Marceau’s party talked of imposing a 5% royalty on all minerals extracted, regardless of a company’s profit. The PQ also proposed a 30% tax on all mining profits above 8%, to rake in the $388 million over five years.

A mining and exploration retrospect

Jean-Marc Lulin, president/CEO of Azimut Exploration TSXV:AZM and outgoing president of the Quebec Mineral Exploration Association, told the G&M, “Our competitive advantage in the world lies in our legal, political and fiscal regime. You can’t toy with that without putting investments at risk.”

The government said it will consult with the industry prior to implementing changes.

The PQ also campaigned on revisions to the previous Liberal government’s Plan Nord infrastructure program. Last week’s news about how the government and Stornoway Diamond TSX:SWY will divide costs to built a road to the company’s Renard project, however, shows no real change to the plan so far.

Nuclear defence

“More people die from coal pollution each day than have been killed by 50 years of nuclear power operations—and that’s just from lung disease. If you include future deaths from global warming due to burning fossil fuels, closing down nuclear power stations is sheer madness.”

So concluded Gwynne Dyer’s column in Wednesday’s Georgia Straight, a left-wing Vancouver weekly. Nuclear energy, he said, “is a kind of witchcraft” that scares people “at least in the developed countries. [The Greens’ anti-nuclear campaign] cannot be logically reconciled with their concern for the environment, given that abandoning nuclear will lead to a big rise in fossil fuel use, but they have never managed to make a clear distinction between the nuclear weapons they feared and the peaceful use of nuclear power…. Fortunately, their superstitious fears are largely absent in more sophisticated parts of the world. Only four new nuclear reactors are under construction in the European Union, and only one in the United States, but there are 61 being built elsewhere. Over two-thirds of them are being built in the BRICs (Brazil, Russia, India and China), where economies are growing fast and governments are increasingly concerned about both pollution and climate change.”

Read more about nuclear energy, and uranium supply and demand, here.

Yet coal continues its breathtaking expansion

Nearly 1,200 new coal plants worldwide are in the planning stages, MarketWatch reported on Wednesday. China and India account for about 76%. The global top five coal burners are China, U.S., India, Germany and Japan.

MarketWatch cited a report from the World Resources Institute that listed Japan, China and South Korea as the world’s biggest importers. “In Japan, as pressure mounts to phase out nuclear power after the 2011 Fukushima Daiichi disaster, coal imports are likely to continue to grow.”

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