Wednesday 13th December 2017

Resource Clips


July, 2013

Territorial ambitions

July 31st, 2013

Four Northwest Territories projects reach regulatory milestones

by Greg Klein

It might be called a blip, a surge, a spike or a spurt but it more likely resulted from long periods of painstaking work. Just recently four Northwest Territories projects moved closer to development thanks to regulatory advancements. Fortune Minerals TSX:FT, De Beers Canada/Mountain Province Diamonds TSX:MPV, Avalon Rare Metals TSX:AVL and Canadian Zinc Corp TSX:CZN all reported significant progress over a three-week period.

On July 19 Fortune announced its proposed NICO gold-cobalt-bismuth-copper mine and mill received federal, territorial and native approval. By accepting the positive environmental assessment released by the Mackenzie Valley Review Board in January, three levels of government have allowed NICO to move towards water licensing, as well as land use and construction permitting. Given further approvals, not to mention financing, Fortune hopes to start construction next year on an open pit/underground operation 160 kilometres north of Yellowknife that could last nearly 20 years.

Four Northwest Territories projects reach regulatory milestones

Although surrounded by a wildlife reserve, Canadian Zinc’s development
has progressed through the NWT’s regulatory regimen.

Also recommended for approval by the Mackenzie Valley Environmental Impact Review Board was Gahcho Kué, described by its proponents as “the world’s largest and richest new diamond mine development.” Located 280 kilometres northeast of Yellowknife, it’s a 51%/49% joint venture of De Beers Canada and Mountain Province. The board’s recommendation, however, comes with conditions to prevent potentially adverse environmental effects. The federal minister of Aboriginal Affairs and Northern Development makes the final decision. In a statement accompanying the JV’s July 22 news release, De Beers COO Glen Koropchuk said his company’s reviewing the measures and follow-up programs recommended by the board. “We look forward to proceeding to the next stages in the regulatory approval process,” he added.

One week later Avalon announced it too received the MVEIRB’s recommendation, again subject to certain conditions “to mitigate the predicted impacts so that they are no longer significant.” In April the company’s Nechalacho rare earth elements project, about 100 kilometres southeast of Yellowknife, achieved the “first feasibility-level study to be completed on a major heavy rare earth project outside of China,” the company stated. Avalon maintained its resources might support 90 years of production “if the mining rate is unchanged and mineral resources are converted to mineral reserves at the same conversion rate experienced” in the feasibility. Applications for a water licence and land use permits continue, as do “efforts to finalize its aboriginal agreements, secure product off-take agreements, identify strategic partners and secure project financing.”

On July 8 Canadian Zinc announced the Mackenzie Valley Land and Water Board had recommended approval of a Type A water licence, “the key regulatory permit needed for the construction, development and operation” of its Prairie Creek zinc-lead-silver mine. Located about 500 kilometres west of Yellowknife, the project has been surrounded by the Nahanni National Park Reserve since the park’s six-fold expansion in 2009. Prairie Creek received environmental approval in June 2012. Already in place are a 1,000-tonne-per-day mill, five kilometres of underground workings, a surface fleet and an airstrip.

The four announcements were welcomed by the NWT & Nunavut Chamber of Mines. In a July 27 statement chamber president and De Beers director of external and corporate affairs Cathie Bolstad said, “While the minerals industry is currently facing significant financial and commodity price challenges globally, the continued advancement of these and other significant northern projects helps invite investment to the Northwest Territories and Nunavut. This will help sustain and grow our industry, which is a significant provider of economic opportunities and benefits to northern residents and Canada.”

Effective April 2014, responsibility for NWT onshore resource development will shift from the federal to the territorial government. Public land ownership will also be transferred, while resource royalties will be shared. At last count the territory’s population stood at 43,407.

July 31st, 2013

Chris Berry: Rare earth stocks show signs of life, but will the uptrend persist? by the Gold Report
The greatest gold rush by VantageWire
How the commodities market is manipulated by Equedia
Grandich on Big North Graphite by the Grandich Report
No conspiracies in gold? by GoldSeek

July 30th, 2013

Ron Struthers: Are gold equities on the cusp of an upswing? by the Gold Report
The greatest gold rush by VantageWire
How the commodities market is manipulated by Equedia
Grandich on Big North Graphite by the Grandich Report
No conspiracies in gold? by GoldSeek

Norm Miller, Ontario Progressive Conservative MPP and official opposition critic for Northern Development and Mines

July 29th, 2013

…Read More

July 29th, 2013

How the commodities market is manipulated by Equedia
Grandich on Big North Graphite by the Grandich Report
No conspiracies in gold? by GoldSeek
U.S. Global Investors’ secret: “Keep calm and invest on” by the Gold Report
Mike Kachanovsky: The best cure for low prices is low prices by VantageWire

Athabasca Basin and beyond

July 28th, 2013

Uranium news from Saskatchewan and elsewhere for July 20 to 26, 2013

by Greg Klein

Next Page 1 | 2

Denison reports best grade/interval result from high-grade Wheeler River

A radiometric probe has found the most impressive result so far from Denison Mines’ TSX:DML Wheeler River project in the eastern Athabasca Basin. Of four holes reported July 24, one showed the project’s highest grade-times-thickness calculation.

Three holes at the Phoenix A deposit showed:

  • 43.2% uranium oxide-equivalent (eU3O8) over 10.3 metres, starting at 401.6 metres in vertical depth
  • 16.4% over 1.7 metres, starting at 403.5 metres
  • 13% over 3.1 metres, starting at 403.7 metres.

Roughly 2.1 kilometres from the Phoenix deposits, one hole at the 489 zone showed:

  • 0.3% over 3.2 metres, starting at 411.1 metres.

Intercepts are approximate true widths. The company explained eU3O8 as “radiometric equivalent uranium oxide calculated from a total gamma downhole probe.” Radiometric probes are not chemical assays.

The Phoenix A drill holes tested for possible extensions of the deposit’s higher-grade domain, defined as approximately 20% U3O8. Using a 0.8% cutoff, the December 2012 resource estimate for Phoenix A showed:

  • an indicated category of 133,500 tonnes averaging 15.8% for 46.5 million pounds U3O8
  • an inferred category of 6,300 tonnes averaging 51.7% for 7.2 million pounds.

With the same 0.8% cutoff, the Phoenix B deposit showed:

  • an indicated category of 19,000 tonnes averaging 14.1% for 5.9 million pounds
  • an inferred category of 5,300 tonnes averaging 3.5% for 400,000 pounds.
Uranium news from Saskatchewan and elsewhere for July 20 to 26, 2013

With continued drilling, Denison hopes to expand
Wheeler River’s high-grade resource.

Combined, Wheeler River’s resource comes to 52.4 million pounds indicated and 7.6 million pounds inferred.

With 15 of 23 holes in three areas now complete, drilling continues. Wheeler is held 60% by project operator Denison, 30% by Cameco Corp TSX:CCO and 10% by JCU (Japan-Canada Uranium) Exploration.

This summer will also see Denison busy at seven other Basin properties: Waterbury Lake (held 40% by the Korea Electric Power Corp), Packrat, South Dufferin, Johnston Lake and Moon Lake (held 45% by Uranium One TSX:UUU, which is expected to be taken private by the Russian state-owned company ARMZ in Q3).

WASP extends VTEM-Plus, advances radiometrics on PLS-area’s largest package

A four-company strategic alliance announced progress on its airborne surveys over the Patterson Lake South-area’s largest land package. Jointly funded by Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC, Lucky Strike Resources TSXV:LKY and Noka Resources TSXV:NX, the Western Athabasca Syndicate Project totals 287,130 hectares, with 275,361 hectares in the vicinity of the near-surface, high-grade PLS discovery of Alpha Minerals TSXV:AMW and Fission Uranium TSXV:FCU.

A VTEM-Plus survey has flown 720 line-kilometres in addition to the original 4,120-line-kilometre survey. The additional coverage consisted of infill and extension of conductive anomalies and structural features identified in preliminary data, the syndicate reported on July 23. Meanwhile Goldak Airborne Surveys is wrapping up a 4,400-line-kilometre radiometric program at 200-metre line spacing to measure radioactivity in outcrops and boulder trains. Goldak compiles the data using a proprietary digital acquisition system.

“We should have complete interpretation done by [geophysicist] Phil Robertshaw in early or mid-August,” Skyharbour president/CEO Jordan Trimble tells ResourceClips.com. “That will delineate the highest-priority targets for fieldwork but we’ve already had boots on the ground doing some preliminary surveying and prospecting. We plan to have a small team back there in early August and that will lead to the full-fledged field program that will commence probably in late August.”

With the four companies earning 25% each, the alliance plans to spend $6 million over two years. “The syndicate is a real advantage to budget,” Trimble points out. “Skyharbour’s obligation is just one-sixth of that. The same with Athabasca Nuclear and then Lucky Strike and Noka pay just one-third each, so it’s not onerous for any one company. It makes the project a lot more viable, especially in these tough markets. And we’re really starting to see the synergies pay off here with the different geologists and their contact base. Their networks are open too.”

Read more about the Western Athabasca Syndicate Project.

VTEM-Plus, radiometric collaboration flies Aldrin’s Triple M

The VTEM-Plus and radiometric surveys also cover PLS-area properties held by Aldrin Resource TSXV:ALN and Forum Uranium TSXV:FDC, a money-saving collaboration announced in May. On July 24 Aldrin also reported the program completed VTEM-Plus infill lines and began radiometrics using 100-metre line spacing over its Triple M property.

Scheduled for August is radon sampling as well as follow-up work on any anomalies found by the radiometrics. The company hopes to start drilling next January to test basement conductors reported in June.

NexGen expands PLS-adjacent Rook 1 drill campaign

NexGen Energy TSXV:NXE has doubled its drill plans for Rook 1, the company announced July 24. With two rigs scheduled to start in mid-August, the campaign now calls for approximately 20 holes totalling 3,000 metres, twice the amount announced in May. Land-based, shallow drilling will test targets identified by airborne VTEM and ground gravity and DC resistivity surveys in the property’s southwestern section, immediately northeast of PLS. NexGen interprets a conductor to extend from the Fission/Alpha discovery into southwestern Rook 1.

In June NexGen began a 4,000-metre campaign on its Radio project, part of a 70% earn-in on the property adjacent to Rio Tinto’s Roughrider deposit.

Fission, Azincourt announce summer program for Patterson Lake North

Immediately north of Patterson Lake South lies, of course, Patterson Lake North. On July 22 joint venture partners Fission and Azincourt Uranium TSXV:AAZ announced a $530,000 summer program to start in early August.

Following up on “conductive areas of interest” found by a previous survey, an airborne VTEM max will fly 303 line-kilometres at 400-metre line spacing over the approximately 25,000-hectare property’s northern half. That will be followed by a single-line 6.3-line-kilometre ground magnetotellurics survey. The property’s southern portion will get a ground TDEM survey. The partners hope results will help identify targets for a drill campaign anticipated for next winter.

The companies say PLN sits within a large gravity low structural corridor that incorporates PLS, the former Cluff Lake mine and the Shea Creek deposits of UEX Corp TSX:UEX and AREVA Resources Canada. Additionally PLN shows EM anomalies that might be interpreted as an extension of the Saskatoon Lake EM conductor associated with Shea Creek.

Azincourt may earn 50% of PLN by paying $4.75 million in cash or shares and spending $12 million by April 2017. Fission gets a 2% NSR and acts as project operator. Fission has already spent about $4.7 million exploring PLN. Earlier this month the company applied for a patent on its “System and Method for Aerial Surveying or Mapping of Radioactive Deposits.”

Next Page 1 | 2

July 26th, 2013

Grandich on Big North Graphite by the Grandich Report
Behind Odyssey Marine Exploration’s recovery of $36 million in silver bullion by Equedia
No conspiracies in gold? by GoldSeek
U.S. Global Investors’ secret: “Keep calm and invest on” by the Gold Report
Mike Kachanovsky: The best cure for low prices is low prices by VantageWire

Focused on Fox

July 25th, 2013

Happy Creek Minerals drills high-grade, near-surface tungsten in B.C.

by Greg Klein

Next Page 1 | 2

“It’s not often that a junior delivers the best drill result in the Western world, at least in recent memory.” That bold statement comes from David Blann, president/CEO of Happy Creek Minerals TSXV:HPY. He’s referring to just one of the assays that show near-surface, high-grade tungsten at his company’s Fox project in central British Columbia. But for all tungsten’s importance as a critical mineral, “no one I know of in Australia, South America, North America or Europe has found anything new,” Blann tells ResourceClips.com. “This is a brand new, from-scratch discovery.”

As pointed out by Core Consultants managing director Lara Smith, both the European Union and the U.S. Department of Defense rate tungsten in their top three list of critical minerals. Speaking at Vancouver’s World Resource Investment Conference in May, House Mountain Partners founder and Morning Notes co-editor Chris Berry called tungsten one of four critical metals on which he’s now focusing.

Happy Creek Minerals drills high-grade, near-surface tungsten in B.C.

Happy Creek Minerals says its near-surface tungsten grades
compare favourably with high-grade underground mines.

Among its refractory metal qualities, tungsten combines special strength, hardness and density, along with the highest melting point of any metal (3,422 degrees C). That gives tungsten a range of vital uses from light filaments, ballpoint pens, electronics, blades, drills, saws and munitions to fishing lures and strings for musical instruments.

As for its critical mineral status, the tungsten story is a familiar one. Mining Weekly quoted Smith saying that China accounted for most of the world’s supply as well as demand. “This has placed an unprecedented threat on the tungsten sector outside of China, which presents enormous opportunities for the development of tungsten ores, concentrates and intermediary products outside of China,” she said.

Naturally that draws attention to tungsten in reliable jurisdictions and, Blann maintains, further emphasizes Fox’s significance. Consisting of four zones along a three-kilometre north-south axis, as well as a fifth zone about four kilometres south, the 16,491-hectare Fox has been showing strong results since late 2011. The “best drill result in the Western world” that Blann speaks of was released in November 2012 from the BN zone, where hole F12-27 showed:

  • 4.04% tungsten trioxide (WO3), 0.91% zinc, 4.51 grams per tonne indium and 4.1 g/t silver over 14.8 metres, starting at 83.2 metres in downhole depth.

(True width wasn’t available.)

The same hole also showed:

  • 1.78% WO3, 0.36% zinc and 1.56 g/t indium over 4.1 metres, starting at 1.9 metres
  • 0.79% WO3 over 24 metres, starting at 136 metres
  • (including 2.01% WO3, 0.84% zinc, 3.9 g/t indium and 9 g/t silver over 5.8 metres).

Tungsten highlights from the RC zone showed:

  • 0.74% WO3 over 12.4 metres, starting at 8.3 metres
  • 0.82% over 19.4 metres, starting at 14 metres
  • 0.8% over 11 metres, starting at 15 metres
  • 0.68% over 14 metres, starting at 27 metres.

Blann maintains Fox’s grades stand up to those of North American Tungsten’s TSXV:NTC Cantung mine, a diesel-operated, fly-in/fly-out underground producer in the Northwest Territories that’s “probably considered the highest-grade tungsten mine in the Western world.” Fox’s location, however, makes infrastructure more accessible.

A power line to the former Boss Mountain molybdenum mine (under option to NMC Resource TSXV:NRC) passes within 17 kilometres of Fox. A logging road links Nightcrawler, Fox’s most southerly zone, to the community of Forest Grove, about 45 minutes away. From there it’s another 20 minutes to highway and rail at the town of 100 Mile House. Helicopter-supported drilling now takes place about four kilometres north of Nightcrawler, at about 1,800 metres in altitude. That could eventually require Happy Creek to extend the road. “A logging company already has a plan and permit to build a road halfway there anyway,” Blann says.

Next Page 1 | 2

July 25th, 2013

No conspiracies in gold? by GoldSeek
U.S. Global Investors’ secret: “Keep calm and invest on” by the Gold Report
What big U.S. banks are suddenly buying by Equedia
Mike Kachanovsky: The best cure for low prices is low prices by VantageWire
Grandich on U.S. markets, bonds, gold, U.S. dollar by the Grandich Report

Northern Graphite CEO Gregory Bowes on dealing with Ontario bureaucracy

July 24th, 2013

…Read More