Monday 11th December 2017

Resource Clips


April, 2013

April 30th, 2013

Should you worry about high-frequency trading? by Stockboard
A look at Big North Graphite by the Grandich Report
Portfolio manager Greg Orrell: “My belief in gold has not wavered” by the Gold Report
Gold buyers get physical as coin and jewellery sales surge: Frank Holmes by VantageWire
“We’re going to be courting exhibitors and writing cheques” at WRIC: Rick Rule by GoldSeek

From Flin Flon to Timmins

April 29th, 2013

Great Northern and Temex report gold news from Manitoba and Ontario

by Greg Klein

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Great Northern Gold Exploration’s TSXV:GGE Wekusko property hasn’t always delivered the grade. But four holes reported April 29 have ended a 2,133-metre Phase I program on a high-grade note, extending the McCafferty zone at depth and offering encouragement to the project in northern Manitoba’s Flin Flon greenstone belt. The results show:

  • 14.6 grams per tonne gold over 1.5 metres, starting at 49 metres in vertical depth
  • 1.52 g/t over 1.25 metres, starting at 92 metres
  • 9.19 g/t over 1.15 metres, starting at 56 metres
  • 5.98 g/t over 1.2 metres, starting at 90.5 metres.

True widths were estimated around 80%. The company labelled the second result a poor sample recovery due to broken and ground-up core.

Another five exploration holes, however, failed to find expansion potential. Of 11 previous holes reported March 13 from the same one-kilometre by three-kilometre grid, 10 didn’t show significant gold but one hole produced intervals of:

Great Northern and Temex report gold news from Manitoba and Ontario

Great Northern Gold’s winter drill campaign extended
its McCafferty zone at depth with high-grade assays.

  • 131.1 g/t gold over 0.3 metres, starting at 85.5 metres
  • 3.73 g/t over 0.5 metres, starting at 85 metres.

True widths weren’t available.

A non-43-101 in-house estimate by a previous operator suggested McCafferty holds 16,761 tonnes averaging 13.89 g/t for 7,483 gold ounces. An historic, non-43-101 estimate for Wekusko’s Gold Dust zone suggested 58,356 tonnes averaging 14.06 g/t for 26,361 gold ounces. Another non-43-101 estimate for the project’s past-producing Ferro mine suggested 73,760 tonnes averaging 15.31 g/t for 36,111 gold ounces.

While the estimate “is modest in size,” concedes Great Northern’s May 2012 technical report, “the grade is relatively high and, in aggregate, the tonnage and contained ounces exceed [what] was mined successfully from the adjacent Rex-Laguna past-producer. It should also be noted that the erratic distribution of gold in these zones as indicated in drill intercepts makes ore resource estimation difficult.”

Summer exploration will venture beyond the McCafferty grid to include soil sampling, mapping and prospecting on other parts of the property.

The company holds an option to earn 100% of the 8,880-hectare Wekusko as well as a separate 100% option on the nearby 60-hectare Ferro mine. The package lies 23 kilometres southeast of Snow Lake, home to HudBay Minerals’ TSX:HBM Lalor mine and QMX Gold’s TSX:QMX Snow Lake mine, a past-producer that QMX plans to re-open.

Great Northern opened April 29 at $0.06, half a cent over its previous close, then ended the day at $0.065. The stock’s 52-week high and low were $0.18 and $0.05. With 20.22 million shares outstanding, the company’s market cap came to $1.31 million.

In other April 29 gold news, an option adjacent to its 100%-held Juby property allowed Temex Resources TSXV:TME to substantially increase its resource estimate.

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April 29th, 2013

A look at Big North Graphite by the Grandich Report
Portfolio manager Greg Orrell: “My belief in gold has not wavered” by the Gold Report
Gold buyers get physical as coin and jewellery sales surge: Frank Holmes by VantageWire
“We’re going to be courting exhibitors and writing cheques” at WRIC: Rick Rule by GoldSeek
Rob McEwen says sell-off probability “out into infinity,” still expects $5,000 gold by Stockboard

Athabasca Basin report

April 27th, 2013

Who’s doing what in the super-charged Saskatchewan uranium play

by Greg Klein

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Denison gets Fission Energy, spinco Fission Uranium gets Patterson Lake South

It’s a done deal, both companies announced April 26. Denison Mines TSX:DML closed its acquisition of Fission Energy TSXV:FIS. The latter company stops trading at the close of April 29 but a new outfit, Fission Uranium Corp TSXV:FCU, is expected to begin trading on May 1. (Update: Fission Uranium Corp TSXV:FCU began trading on April 30, 2013.) Fission Uranium will retain the Fission Energy team and their most celebrated asset, a 50% interest in Patterson Lake South.

For each Fission Energy share, holders get 0.355 of a Denison share, a full Fission Uranium share and, for good measure, one ten-thousandth of a penny. The new company also gets about $17 million from Denison, a handy sum to continue its share of PLS drilling while shopping for other properties.

The acquisition went much as planned except for a late decision to change the new company’s stock ticker to FCU. It was originally registered as FUC.

Read more about the Denison/Fission acquisition here.

Patterson Lake South rolls out the results

Patterson Lake South, meanwhile, continues to shock and awe the market with near-surface results showing off-scale scintillometer readings and high-grade assays about every week—at least.

Athabasca Basin report

Just a couple of examples: An April 22 announcement reported assays of 6.57% U3O8 over 53 metres, including 29.26% over 10.5 metres. The intercept started at a downhole depth of 95 metres. Only two days later came assays of 6.26% over 49.5 metres, including 35% over 6 metres, starting at 66 metres in downhole depth.

A 50/50 joint venture between Fission Energy and Alpha Minerals TSXV:AMW, the PLS discovery sparked the current staking rush around the Athabasca Basin’s southwestern rim. Alpha filed an NI 43-101 technical report for the property on April 14.

Read more about the Patterson Lake South discovery here and here.

Read more about the Athabasca Basin staking rush here.

Alpha private placement closes at $12.28 million

While Fission Uranium starts off with about $17 million from Denison, its JV partner-to-be, Alpha Minerals, has just picked up $12.28 million. On April 25 the company announced completion of 1.2 million flow-through shares at $4.40 each and 1.75 million units at $4. Each unit consists of one non-flow-through share and half of a warrant. Each whole warrant will be exercisable at $5 for 24 months.

The private placement was originally offered up to $7.28 million, but was increased by $5 million on April 9.

NexGen now on the TSXV

Its reverse takeover with Clermont Capital complete, NexGen Energy Ltd TSXV:NXE made its Venture debut on April 23. NexGen interprets its flagship Radio property to be on the same structural trend as Rio Tinto’s Roughrider deposit and Denison’s Waterbury Lake J-zone. NexGen holds an option to acquire an initial 70%, then the remaining 30% subject to a 2% NSR.

Another NexGen standout is Rook 1, immediately northeast of Patterson Lake South.

Under a JV within a JV, NexGen and Forum Uranium TSXV:FDC have an option to earn 30% each of the Northwest Athabasca project, currently held 87.5% by Cameco Corp TSX:CCO and 12.5% by AREVA Resources. On April 10 project operator Forum announced completion of a 3,500-metre program that hit uranium mineralization in eight of 17 holes.

Last November NexGen picked up 10 Canadian uranium properties from Mega Uranium TSXV:MGA. On April 22 Mega acquired an approximately 25.2% interest in NexGen, which currently has about $6 million on hand.

Read more about NexGen here and here.

As for Waterbury and the J-zone …

In the eastside Basin neighbourhood of Radio and Roughrider, Waterbury Lake is now held 60% by Denison, a result of its Fission Energy acquisition. A consortium headed by the Korean power utility Kepco holds the remaining 40%.

Last winter Fission Energy sunk 68 holes totalling over 21,000 metres to define and expand the project’s J-zone. Scintillometer results announced April 5 showed mineralization in 35 holes. Assays are pending for this final stage of a three-year, $30-million campaign.

Forum to fly Clearwater

In addition to its NexGen collaboration, Forum plans an airborne magnetic and electromagnetic survey over its 100%-held, 9,910-hectare Clearwater property immediately southwest of Patterson Lake South. Funding comes from a $500,000 private placement that closed April 23.

Denison drills turn Wheeler River

On the Basin’s east side, winter drilling at Denison’s 60% Wheeler River project completed 14,577 metres in 27 holes. On April 24 the company announced it had extended the new 489 zone along strike by 65 metres. The zone lies 2.1 kilometres from the project’s Phoenix deposits, which Denison calls “the most significant new uranium discovery in the Athabasca Basin in many years.”

Denison acts as project operator for partners Cameco, which holds a 30% interest, and JCU (Japan-Canada Uranium) Exploration, which holds 10%.

Lakeland stakes more land

Now a “pure play uranium exploration company focused on the Athabasca Basin,” Lakeland Resources TSXV:LK announced on April 25 it had staked three more properties. The Small Lake, Hawkrock Rapids and Circle Lake properties total 54,745 hectares in the northern and northeastern Basin.

The news followed an April 2 announcement that Lakeland staked two other northern Basin properties, the 9,645-hectare Otherside and 35,429-hectare Riou Lake. All five properties, totalling nearly 100,000 hectares, were chosen on the basis of previous work by former operators. Lakeland intends to study historic data prior to planning a work program.

The company has also signed a non-binding letter of intent for eight other Basin properties totalling about 190,000 hectares.

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Prima Fluorspar president/CEO Robert Bick on his company’s Liard project in B.C.

April 26th, 2013

…Read More

Beyond Monster Lake

April 25th, 2013

Can TomaGold repeat its success without Quinto Real?

by Greg Klein

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Will fortune treat this company so favourably a second time? David Grondin thinks it might. As president/CEO of TomaGold Corp TSXV:LOT, he’s already seen spectacular success at Quebec’s Monster Lake, a repetitive source of high-grade gold assays bankrolled by joint venture partner Quinto Real Capital TSXV:QIT. Now he’s planning a simultaneous drill campaign on TomaGold’s adjacent, 100%-held Winchester property.

A mining and exploration retrospect

Lying on the same trend, the two properties have similarities, Grondin says. Like the 3,336-hectare Monster, the 1,070-hectare Winchester had originally been drilled at shallow depths. It wasn’t until Monster was drilled deeper that the big discovery was found. But Winchester’s mineralized corridor, “instead of being five to 15 metres wide like Monster, is 60 to 100 metres wide.” Historic results show base metals potential too, he points out. “So we think Winchester can be a big driver for the company too. We’ll start drilling the same time as Monster, so it’ll be highly cost-effective. It should create a lot of new interest in the company, so we’re excited about that.”

As if TomaGold really needs new interest. Monster Lake first grabbed the market’s attention back in April 2012, with an assay of 237.6 grams per tonne gold over 5.7 metres. But relative calm set in while the company tested other targets at shallow depths. Then, in November, TomaGold met Quinto, a well-heeled company looking for a qualifying transaction. The two companies consummated their JV with a winter campaign focusing on the 325 zone, site of the April 2012 discovery, and going beyond 125 metres’ depth for the first time in Monster Lake’s drilling history. Another outburst of market enthusiasm greeted assays from three holes announced on February 20:

  • 33.6 g/t gold over 5.85 metres, at a vertical depth of 217 metres
  • 11.5 g/t over 5.3 metres, at a depth of 187 metres
  • 42 g/t over 7.2 metres, at a depth of 278 metres.

Highlights from three more holes released March 8 showed:

  • 42 g/t gold over 7.2 metres, at a vertical depth of 278 metres
  • 33.6 g/t over 5.85 metres, at a depth of 217 metres
  • 32.6 g/t over 6 metres, at a depth of 170 metres.

An April 22 batch included:

  • 37.1 g/t gold over 4.8 metres, at a vertical depth of 235 metres
  • 8.65 g/t over 11.3 metres, at a depth of 325 metres
  • 7.3 g/t over 2.55 metres, at a depth of 330 metres.

True widths were estimated at 70% to 85%. Topcuts weren’t applied.

The February 20 assays shot TomaGold from $0.115 to $0.205. By March 8 the stock hit $0.41. Even more dramatic was Quinto. Previously flat at $0.04, its shares soared to $0.25 on February 20 and, on February 28, $0.98.

Grondin now plans another 4,000 metres beginning mid-May. But despite a short pause, the company’s capable of year-round drilling thanks to a “really brilliant” crew, he says. He also plans a surface bulk sample, pending permitting. As the maiden resource approaches Grondin expects to calculate a topcut to compensate for the high-grade nugget effect.

Meanwhile the next 4,000 metres will target the zone at depth and its extensions along strike, he says. “Then we’ll probably do some infill to classify some of the resource as indicated. If it’s still open at depth, we might then do another 2,000 or 3,000 metres. One way or another, the resource is going to be done by year-end.”

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April 25th, 2013

Portfolio manager Greg Orrell: “My belief in gold has not wavered” by the Gold Report
Gold buyers get physical as coin and jewellery sales surge: Frank Holmes by VantageWire
“We’re going to be courting exhibitors and writing cheques” at WRIC: Rick Rule by GoldSeek
Rob McEwen says sell-off probability “out into infinity,” still expects $5,000 gold by Stockboard
Update: U.S. stocks/bonds/dollar, gold, mining/exploration by the Grandich Report

QMX Gold president/CEO Francois Perron on gold’s sudden sell-off

April 24th, 2013

…Read More

In times like these

April 23rd, 2013

QMX Gold searches for Snow Lake financing, watches Lac Herbin output

by Greg Klein

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Maybe as much as anyone, QMX Gold TSX:QMX president/CEO Francois Perron knows the challenges of the industry today. His company’s Lac Herbin gold mine in Val-d’Or has yet to meet expectations. A “broken market” has stalled plans to re-open the Snow Lake past-producer in Manitoba. The yellow metal’s sudden price plunge has only added anguish to angst. Still he soldiers on, with a confidence born of long-term perspective.

“People are freaked out by short-term factors,” he insists. “I think the longer term is amazingly bullish for gold. I’m still in the gold business and I’m glad to be there.”

QMX Gold searches for Snow Lake financing, watches Lac Herbin output

After a disappointing 2011, QMX Gold’s Lac Herbin
operation reached its 2012 production target.

He bases much of his optimism on Snow Lake, a northern Manitoba operation that gave up 1.44 million gold ounces up to 2005. With surface infrastructure including a mill, the mine still has gold to offer, according to 2010 figures that show a proven reserve of 900 gold ounces and a probable reserve of 451,000 ounces.

Those reserves are included in the measured and indicated categories of a resource estimate that shows 1,000 ounces measured, 727,000 ounces indicated and 336,700 ounces inferred. Snow Lake exploration continued throughout 2011, totalling over 42,000 metres of drilling.

A 2010 feasibility study used a 7% discount rate to project a pre-tax net present value of $100.8 million and an impressive 80% internal rate of return. Initial capital costs came to $39.7 million for a reactivated underground mine that would produce 415,600 gold ounces over a five-year lifespan. Payback was set at 1.7 years.

Now, nearly three years later, QMX estimates the initial capex closer to $45 million. “Some of the numbers have moved around but some of that is pure inflation,” says Perron. “We have been optimizing the feasibility study. The initial study had cash costs of $640 an ounce. With a larger camp and a different format for financing equipment, we expect $825 an ounce.”

Snow Lake remains on care and maintenance, with a closure plan in place and dormant but renewable permits. It could be pouring gold in 12 to 14 months and ramp up to commercial production within 21 months. All that’s holding it up is a currently very elusive commodity—money.

“The initial approach was to finance through the public markets,” explains Perron. “By now we all agree that the public markets are broken. We have the advantage of having a project that’s been through the bankable feasibility process. On that basis I’m looking at private equity partners or some kind of strategic alternative like that.”

In May 2012 Credit Suisse agreed to lend the company, then known as Alexis Minerals, $45 million over 4.5 years for Snow Lake development. Contingent on the loan is a requirement that the company raise additional equity. The actual figure, says Perron, “depends on the amount of hedging that we put into it. I’d say they’re probably looking for $10 million to $15 million to backstop the project.”

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April 23rd, 2013

Gold buyers get physical as coin and jewellery sales surge: Frank Holmes by VantageWire
“We’re going to be courting exhibitors and writing cheques” at WRIC: Rick Rule by GoldSeek
Rob McEwen says sell-off probability “out into infinity,” still expects $5,000 gold by Stockboard
Update: U.S. stocks/bonds/dollar, gold, mining/exploration by the Grandich Report
Peter Rose: Can equities cushion the blow of falling gold prices? by the Gold Report