Saturday 16th December 2017

Resource Clips


June, 2014

June 30th, 2014

Greg McCoach’s golden strategy Streetwise Reports
African mining sector needs diplomacy and transparency to attract investors Industrial Minerals
Koos Jansen: Shanghai exchange chief confirms WGC badly underestimates gold demand GoldSeek
Former Canaccord broker sanctioned by IIROC, agrees to pay $35,000 Stockhouse
Elephants in the Nevada desert: Carlin-type gold deposits Geology for Investors
The beginning of bank seizures Equedia
Gold investors: Let this cycle be your guide VantageWire

Athabasca Basin and beyond

June 28th, 2014

Uranium news from Saskatchewan and elsewhere for June 21 to 27, 2014

by Greg Klein

Next Page 1 | 2

Fission about to start $12-million summer program, targets December resource

Apparently hoping to get something really big for Christmas, Fission Uranium TSXV:FCU has yet more delineation drilling planned for Patterson Lake South this summer. Some 63 holes totalling about 20,330 metres are scheduled to start imminently, with 43 closely spaced holes sunk from barges over the lake. The campaign calls for up to four rigs to help produce a maiden resource for December. The focus is R780E, which merged with three other zones last winter to become by far the biggest of five PLS zones along a 2.24-kilometre potential strike.

Uranium news from Saskatchewan and elsewhere for June 21 to 27, 2014

Twenty holes will test electromagnetic conductors prioritized by geophysical and radon-in-water surveys. Fission stated its 31,039-hectare property “remains highly prospective for several kilometres both in the immediate area of known mineralization and along strike in both the WSW and ENE directions.”

The company also plans metallurgical and petrographic studies “to evaluate important characteristics of uranium recovery and rock characteristics, including work on gold recovery.” Back in June 2013 the former Fission Energy/Alpha Minerals joint venture reported gold results from PLS.

A batch of assays released June 16 left 48 holes to report from last winter’s 92. Was that number a fluke?

Lakeland Resources expands exploration prospects with another Athabasca Basin acquisition

With the Fond du Lac project announced June 25, the Lakeland Resources TSXV:LK portfolio now totals 17 properties in and around the Athabasca Basin. The 2,827-hectare newcomer straddles the rim of the northeastern Basin in the vicinity of the company’s Small Lake, Karen Lake and Hidden Bay properties.

Featuring relatively shallow depth to the unconformity, Fond du Lac underwent regional airborne and geochemical surveys, ground EM, magnetic and gravity surveys, and one drill hole by 1984. More recent work confirmed a conductive target and roughly coincident uranium and pathfinder element geochemical anomalies.

“Over the last 30 years there’s been a lot of improvement in how you assess these properties,” corporate communications manager Roger Leschuk tells ResourceClips.com. “Back in the ’70s and ’80s they worked to the best of their knowledge and technology of the time. Now people like Neil McCallum and Jody Dahrouge [of Dahrouge Geological Consulting] can come along and look at it in a different light. So the historic data is just a starting point.”

Subject to TSXV approval, Lakeland gets the 100% interest by issuing 200,000 shares to Anthem Resources TSXV:AYN, which retains a 1.5% NSR.

“The property comes with a $50,000 work commitment by year-end, but we’ll likely spend more on a program that would include a radon survey and boulder-sampling,” Leschuk says. “We want to get it to the drill-ready stage.”

We’re well-financed, we have more cash than we had a year ago and we intend to continue advancing our projects and looking for good partners. We have a busy summer ahead with more news coming.—Roger Leschuk, corporate
communications manager
for Lakeland Resources

Lakeland’s 17 properties now cover 164,316 hectares. In April the company expanded its Lazy Edward Bay project. Two weeks before that Lakeland picked up five other acquisitions. Gibbon’s Creek, the company’s joint venture with Declan Resources TSXV:LAN, has shown surface boulders grading up to 4.28% U3O8 and some of the Basin’s highest radon readings.

“We’re well-financed, we have more cash than we had a year ago and we intend to continue advancing our projects and looking for good partners,” Leschuk adds. “We have a busy summer ahead with more news coming.”

Lakeland also announced its May 30 trading debut on the OTCQX under the symbol LRESF. “The OTCQX is a highly visible trading platform that has emerged as the world’s leading, premier cross-listing venture for international issuers that wish to benefit from U.S. trading and investor demand without diluting their current shareholder base,” the company stated.

Paladin boosts Michelin M&I to 84.1 million pounds U3O8

Although low uranium prices have forced Paladin Energy TSX:PDN to cut back on production, the company continues to build resources for the future. On June 26 Paladin released a substantial upgrade to its Michelin deposit in Labrador, boasting a 25% increase to the measured and indicated categories. The open pit portion uses a cutoff of 0.025% U3O8 to show:

  • measured:10.46 million tonnes averaging 0.0938% for 21.63 million pounds U3O8

  • indicated:5.93 million tonnes averaging 0.0937% for 12.26 million pounds

  • measured and indicated:16.4 million tonnes averaging 0.0938% for 33.89 million pounds

  • inferred:1.64 million tonnes averaging 0.1343% for 4.86 million pounds

Beginning 230 metres below surface, the underground portion uses a 0.05% cutoff to show:

  • measured:5.11 million tonnes averaging 0.1104% for 12.45 million pounds

  • indicated:16 million tonnes averaging 0.1072% for 37.8 million pounds

  • measured and indicated:21.11 million tonnes averaging 0.108% for 50.24 million pounds

  • inferred:7.17 million tonnes averaging 0.114% for 18.02 million pounds

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Towards Canadian REE R&D

June 27th, 2014

Industry calls on government to support a Canadian rare earths supply chain

by Greg Klein

Free markets supposedly work free of government meddling. But what capitalist would refer to free money, even from government, as “meddling”? Anyway, as a number of industry and academic spokespeople told a Canadian parliamentary committee, other governments do it. Canada lags far behind not only China, but also the U.S. and Australia, in funding research and development for a national rare earths industry.

Industry calls on government to support a Canadian rare earths supply chain

That was among the salient points of a 30-page summary of evidence that the House of Commons Standing Committee on Natural Resources released earlier this month. The challenge, of course, is to develop Canadian expertise that can diminish some of China’s near-monopoly on supply, demand and the various stages of processing commonly considered inscrutable to non-Chinese.

With light and heavy rare earths considered critical minerals for their economic importance and supply risk, the urgency becomes greater. All the more so because China’s “costs of producing ‘cheap’ rare earths are becoming increasingly unsustainable in terms of the environment, the availability of reserves, the health of its communities and the political ramifications,” according to a Secutor Capital Management report about Commerce Resources’ (TSXV:CCE) Ashram deposit in Quebec.

Other governments are putting up money. The U.S. has invested nearly $120 million to REE R&D over five years, the inquiry heard. Australia has committed $80 million over three years. But during a three-year period ending in March, Canada doled out a mere $1 million.

Canadian industry, on the other hand, matched every federal dollar given to Natural Resources Canada’s CanmetMINING research agency with $5 of its own. Most of it went to R&D.

“Canada is in a race with Australia, the U.S. and others to develop an industry,” Avalon Rare Metals TSX:AVL VP of sales and marketing Pierre Neatby told the committee. “Canada’s opportunity is now.”

There are other contenders too. Urging the feds on, Matamec Explorations TSXV:MAT president/CEO Andre Gauthier said, “Other countries, such as Brazil and Vietnam, are planning the development of their own rare earths industry and they are making it a priority.”

The inquiry also heard that Korea, Japan, the UK, Belgium, Germany and the EU “have created institutions and research programs that aim at diversifying the existing rare earth supply sources, recycling existing products and developing substitute materials to minimize the use of rare earth metals.”

According to Pele Mountain Resources TSXV:GEM president Al Shefsky, Canada “can lead and win, but [it] must act decisively…. If Canada does not adopt a national strategy, it will lose an extraordinary opportunity for economic growth and employment to foreign competitors who are investing heavily to seize this opportunity.”

A national rare earth supply chain “is essential to Canada’s strategic and economic security,” he added. “With world-class deposits of its own, Canada is in a unique position not only to produce rare earths, but to create its own rare earth supply chain, thereby creating billions of dollars of economic activity along with thousands of high-paying jobs.”

That potential comes from Canada’s deposits, roughly 40% to 50% of the world’s known rare earths resources, witnesses told the inquiry. Another advantage lies in Canada’s stability compared to countries like South Africa and Kyrgyzstan.

[The Canadian Rare Earth Elements Research Network wants to] establish a Canadian-based rare earths production and secure 20% of critical REE global supply by 2018.

But “no two REE deposits are the same,” pointed out representatives of the Canadian Rare Earth Elements Research Network. “Each deposit requires unique, costly and innovative engineering on front-end processing.”

Yet CREEN’s ambition expresses considerable optimism. The organization wants to “establish a Canadian-based rare earths production and secure 20% of critical REE global supply by 2018,” the committee stated. “CREEN is comprised of mining companies, academia, government, research centres, consulting firms and other organizations that are working together to develop innovative solutions to the various challenges faced by this sector.” By press time CREEN chairperson Ian London had not responded to a ResourceClips.com interview request. (Update: Read an interview with Ian London here.)

What becomes of the committee’s work isn’t clear. A House of Commons committees directorate clerk tells ResourceClips.com, “There’s no recommendations to the government in the summary evidence and no request to the government to answer back.”

Download the committee’s 30-page summary.

Read more about China’s control of the rare earths supply chain.

Disclaimer: Commerce Resources Corp is a client of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in Commerce Resources.

June 27th, 2014

African mining sector needs diplomacy and transparency to attract investors Industrial Minerals
Koos Jansen: Shanghai exchange chief confirms WGC badly underestimates gold demand GoldSeek
Former Canaccord broker sanctioned by IIROC, agrees to pay $35,000 Stockhouse
Elephants in the Nevada desert: Carlin-type gold deposits Geology for Investors
The beginning of bank seizures Equedia
Simon Moores: Tesla gigafactory could be boon for graphite, lithium, cobalt Streetwise Reports
Gold investors: Let this cycle be your guide VantageWire

Taseko says land claims ruling shows New Prosperity outside aboriginal territory

June 26th, 2014

by Greg Klein | June 26, 2014

While the June 26 Supreme Court of Canada land claims ruling has been described as a setback for some resource projects, one British Columbia mining company welcomes it. Taseko Mines TSX:TKO says the decision removes “any doubt about aboriginal title in the area” of its New Prosperity copper-gold project.

New Prosperity is the only proposed mine in B.C. that people know for sure is not in an area of aboriginal title.—Taseko Mines president/CEO
Russell Hallbauer

The proposed mine has been bitterly opposed by leaders of the six-band Tsilhqot’in National Government, the beneficiaries of what’s been described as Canada’s most important native rights case. The decision grants the Tsihqot’in title to 1,750 square kilometres in central B.C. But, according to a statement from Taseko president/CEO Russell Hallbauer, the ruling confirms that his company’s proposal “is located in an area where aboriginal title does not exist. As such, New Prosperity is the only proposed mine in B.C. that people know for sure is not in an area of aboriginal title.”

“Now that these matters have been settled, the opportunity exists for a constructive and mutually beneficial way forward for the New Prosperity project,” he added. “We welcome and look forward to the opportunity to re-establish a positive dialogue with the six Tsilhqot’in bands represented by the Tsilhqot’in National Government about New Prosperity and its potential to assist them with advancing community priorities.”

In the past Tsilhqot’in leaders have said the company has not consulted them properly, while Taseko countered that the chiefs were unwilling to talk. Last February the federal government rejected the $1.1-billion proposal following a negative environmental review. Taseko then requested a federal judicial review, claiming the environmental panel studied a tailings model that differed radically from that proposed by the company.

The rejection was Taseko’s second. The company’s original mine plan met federal rejection in November 2010. Taseko returned with a $300-million revision that would prevent draining the 118-hectare Fish Lake, the focus of native opposition.

North of New Prosperity, Taseko operates the Gibraltar copper-molybdenum mine, the second-largest copper open pit in Canada and the largest employer in B.C.’s Cariboo region.

While the Supreme Court ruling gives the Tsilhqot’in greater control over their 1,750-square-kilometre territory, the natives lack absolute power to reject resource projects that show “a compelling and substantial public interest,” according to the decision. The Association for Mineral Exploration British Columbia emphasized the decision “confirmed that provincial laws and regulations will continue to apply in the Tsilhqot’in Nation aboriginal title area, subject to section 35 of the Constitution Act.” AME BC called the ruling “a complex and precedent-setting case that will require further review.”

Likewise the Mining Association of B.C. said it’s reviewing the decision, which “provides certainty and clarification around aboriginal title and the application of provincial law and regulation on the land base.”

Pointing out that mining comprises B.C.’s largest private sector employer of natives, MABC president/CEO Karina Briño added that “numerous aboriginal-owned suppliers and contractors work collaboratively with, and benefit from, the mining industry. In addition to employment opportunities, the mining industry also recognizes the importance of revenue sharing agreements between the provincial government and aboriginal communities.”

Other commentators have suggested, however, that the ruling can bolster native opposition to development.

Read more about New Prosperity here and here.

June 26th, 2014

African mining sector needs diplomacy and transparency to attract investors Industrial Minerals
Koos Jansen: Shanghai exchange chief confirms WGC badly underestimates gold demand GoldSeek
Former Canaccord broker sanctioned by IIROC, agrees to pay $35,000 Stockhouse
Elephants in the Nevada desert: Carlin-type gold deposits Geology for Investors
The beginning of bank seizures Equedia
Simon Moores: Tesla gigafactory could be boon for graphite, lithium, cobalt Streetwise Reports
Gold investors: Let this cycle be your guide VantageWire

Acquisition expands Lakeland Resources’ search for Athabasca Basin uranium

June 25th, 2014

by Greg Klein | June 25, 2014

Acquisition expands Lakeland Resources’ search for Athabasca Basin uranium

With 17 properties totalling 164,316 hectares,
Lakeland Resources looks forward to a busy summer of exploration.

 

An additional property now gives the acquisitive Lakeland Resources TSXV:LK a portfolio of 17 uranium prospects in and around Saskatchewan’s Athabasca Basin. Announced June 25, the 2,827-hectare Fond du Lac project straddles the northeastern Basin’s margin in the vicinity of the company’s Small Lake, Karen Lake and Hidden Bay properties.

With relatively shallow depth to the unconformity, Fond du Lac underwent regional airborne and geochemical surveys, ground electromagnetics, magnetic and gravity surveys and one drill hole by 1984. More recent work confirmed a conductive target and roughly coincident uranium and pathfinder element geochemical anomalies.

“Over the last 30 years there’s been a lot of improvement in how you assess these properties,” corporate communications manager Roger Leschuk tells ResourceClips.com. “Back in the ’70s and ’80s they worked to the best of their knowledge and technology of the time. Now people like Neil McCallum and Jody Dahrouge [of Dahrouge Geological Consulting] can come along and look at it in a different light. So the historic data is just a starting point.”

Subject to TSXV approval, Lakeland gets the 100% interest by issuing 200,000 shares to Anthem Resources TSXV:AYN, which retains a 1.5% NSR.

“The property comes with a $50,000 work commitment by year-end, but we’ll likely spend more on a program that would include a radon survey and boulder-sampling,” says Leschuk. “We want to get it to the drill-ready stage.”

Lakeland’s 17-property portfolio totals 164,316 hectares. In April the company expanded its Lazy Edward Bay project, an act preceded by five other acquisitions two weeks earlier. Gibbon’s Creek, the company’s joint venture with Declan Resources TSXV:LAN, has shown surface boulders grading up to 4.28% U3O8 and some of the Basin’s highest radon readings.

“We’re well-financed, we have more cash than we had a year ago and we intend to continue advancing our projects and looking for good partners,” Leschuk adds. “We have a busy summer ahead with more news coming.”

Lakeland also announced its May 30 trading debut on the OTCQX under the symbol LRESF. “The OTCQX is a highly visible trading platform that has emerged as the world’s leading, premier cross-listing venture for international issuers that wish to benefit from U.S. trading and investor demand without diluting their current shareholder base,” the company stated.

Disclaimer: Lakeland Resources Inc is a client of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in Lakeland Resources.

Visual Capitalist releases Part 4 of the Gold Series

June 25th, 2014

by Greg Klein | June 25, 2014

The latest of a five-part series by Visual Capitalist, Gold and the Best Reasons to Own It presents the yellow metal’s case in words and images. Even gold skeptics might find some of the information intriguing, such as this example of the metal’s staying power:

“In Roman times, an ounce of gold was enough to buy a quality tailored toga, sandals and accessories. During the Depression, an ounce of gold was enough to buy a quality tailor-made suit, shoes and accessories. Still today, an ounce of gold buys a great tailor-made suit, shoes and accessories.”

The infographic appears below. Sponsored by Goldcorp TSX:G and other mining/exploration companies, the series’ first three releases are available here:

Read about Matthew Hart’s book Gold: The Race for the World’s Most Seductive Metal

Visual Capitalist releases Part 4 of the Gold Series

 

Posted by permission of Visual Capitalist.

June 25th, 2014

Koos Jansen: Shanghai exchange chief confirms WGC badly underestimates gold demand GoldSeek
Former Canaccord broker sanctioned by IIROC, agrees to pay $35,000 Stockhouse
Elephants in the Nevada desert: Carlin-type gold deposits Geology for Investors
The beginning of bank seizures Equedia
Simon Moores: Tesla gigafactory could be boon for graphite, lithium, cobalt Streetwise Reports
Gold investors: Let this cycle be your guide VantageWire
Political change in India could prove a shot in the arm for the mineral industry
Industrial Minerals

Copper: Its long-term outlook and the potential for junior explorers

June 24th, 2014

by Greg Klein | June 24, 2014

After iron and aluminum, copper comprises the world’s largest metal market. A newly released report by Derek Hamill, head of research and communications for Zimtu Capital TSXV:ZC, examines the commodity, its short-term and long-term prospects, and its potential “upside for investors in well-managed exploration companies who are willing to be patient.”

Hamill finds that the substantial production growth that began in 2012 should cause a surplus of refined copper over the next several years. But increasing demand, falling grades and the failure of some large-scale projects could reverse the trend by 2019 or 2020.

“Expectations for the copper mining sector suggest there is little value in defining and proving up low-grade, large tonnage copper deposits in the current market, especially where environmental concerns are forefront,” he writes. Hamill suggests that smaller operations emphasizing grade over tonnage and featuring manageable capital costs can help pick up the slack. As an example he points to Pasinex Resources CSE:PSE, a Zimtu core holding that’s pursuing copper, zinc, lead, silver and gold in Turkey, a mining jurisdiction of increasing importance.

Download the 16-page research and opinion report.

Disclaimer: Zimtu Capital Corp is a client of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in Zimtu Capital.