Wednesday 13th December 2017

Resource Clips


September, 2014

Mountain Province offers $100-million placement to mine NWT diamonds

September 30th, 2014

by Greg Klein | September 30, 2014

With a $100-million private placement announced September 30, “the world’s largest and richest new diamond mine” should get a very considerable cash infusion. Mountain Province Diamonds TSX:MPV, which holds a 49% stake in Gahcho Kué, stated $75 million will come from a bought deal. The full amount is expected to close around October 16.

The joint venture with De Beers has production scheduled for the second half of 2016, making it the fourth diamond mine to open in the Northwest Territories’ Lac de Gras region. Canada also hosts De Beers’ Victor diamond operation in northern Ontario and Stornoway Diamond’s (TSX:SWY) Renard project in Quebec, like Gahcho Kué due for production in 2016.

Mountain Province offers $100-million private placement to mine NWT diamonds

A selection of diamonds already recovered from Gahcho Kué.

Gahcho Kué marked another milestone with last week’s receipt of a water licence. Mountain Province’s latest private placement follows a July announcement that the company appointed three banks to arrange and underwrite a loan up to US$370 million, expected to close by year-end.

A revised feasibility study released in April gave the JV a 32.6% after-tax internal rate of return. Using a 10% discount rate, the net present value came to $1.005 billion. Capital costs, in unescalated 2013 dollars, came to $858.5 million. The report estimated a 12-year mine life producing a total of 53.4 million carats selling for an average $149.66 per carat.

The mine would employ nearly 700 people during the two-year construction phase and about 400 people when in operation.

In other private placements this year, Mountain Province raised $45.5 million in June and $28.24 million in March.

The 4,189-hectare property lies about 280 kilometres northeast of Yellowknife.

Diamond pioneer Fipke’s alma mater donations top $17 million

September 30th, 2014

by Greg Klein | September 30, 2014

A $9.1-million contribution for Alzheimer’s research pushes Chuck Fipke’s total donations and pledges to the University of British Columbia past $17 million. The latest commitment, announced by UBC on September 30, will endow a professorship and buy “cutting-edge equipment” along with “the most novel and coveted brain-imaging technology.” The legendary geologist had already given the university $8.7 million, mostly for buildings and equipment at its Okanagan campus.

Diamond pioneer Fipke’s alma mater donations surpass $17 million

Fipke, left, goes over his maps with UBC professor Haakon Nygaard.
(Photo: UBC News)

Fipke’s fortune comes from Canada’s first big diamond discovery. A 1973 UBC grad with a bachelor in geology, Fipke explored Papua New Guinea, South America, Australia and South Africa before returning to Canada. Along the way, his experience led him to believe diamonds were to be found in Canada’s North. While global giant De Beers spent considerable sums in its increasingly frustrating failure to find Canadian diamonds, a determined Fipke fine-tuned his expertise in indicator minerals and glacial movements, eventually drawing him and co-discoverer Stewart Blusson to the Northwest Territories’ Lac de Gras region and the historic 1992 Ekati discovery.

Fipke’s adventures, including the cloak-and-dagger schemes to keep his anticipated discovery hidden from rivals, have been recounted in books like Treasure Under the Tundra by L.D. Cross and Matthew Hart’s Diamond: The History of a Cold-Blooded Love Affair.

Although nicknamed Captain Chaos by his field crew, Fipke’s approach was described as systematic by Robert Gannicott, CEO of Dominion Diamond TSX:DDC, now Ekati’s majority owner: “The history of Canadian mining is full of stories of accidents of fate leading to discoveries, but the discovery of diamonds in the Slave Geological Province is a story of years of dedicated technical work led by a focused technical expert with unwavering belief in the outcome.”

The discovery led to four other mines in the Lac de Gras area—the Jericho past-producer, De Beers’ Snap Lake mine, the Rio Tinto NYE:RIO/Dominion Diavik operation and Gahcho Kué, a De Beers/Mountain Province Diamonds TSX:MPV joint venture described as “the world’s largest and richest new diamond development project.” Lac de Gras is now undergoing a revival of junior exploration.

September 30th, 2014

Video: Flinders CEO discusses new graphite mine, Big North acquisition Industrial Minerals
Why stocks will do better than bonds as interest rates rise VantageWire
China defies predictions with an encouraging PMI Stockhouse
An introduction to alteration Geology for Investors
Can gold act as a safe haven again? Streetwise Reports
The last resort when monetary policy fails Equedia
Of course the gold price is manipulated, that’s the point—The London Gold Pool 1961 to 1968 GoldSeek

Lakeland Resources regains Gibbon’s Creek uranium project

September 29th, 2014

This story has been updated and moved here.

Update: Commerce Resources offers $4.5-million private placement, proceeds with hydrometallurgical rare earths processing

September 29th, 2014

by Greg Klein | September 29, 2014

A company with advanced Canadian projects featuring industrial metals announced a $4.5-million private placement on September 29. Commerce Resources TSXV:CCE stated proceeds will go to its Ashram rare earth deposit in Quebec and its Blue River tantalum-niobium project in British Columbia, as well as working capital.

The previous week Commerce reported that a program of hydrometallurgical testing had begun at Ashram, bringing the project closer to pre-feasibility. The company intends to complete bench testing and produce a mixed rare earth carbonate with cerium and lanthanum removed. The product could then be evaluated by potential joint venture or off-take partners.

Commerce Resources offers $4.5-million private placement, proceeds with hydrometallurgical rare earths processing

Commerce Resources’ Blue River tantalum-niobium property in B.C. is one
of two advanced projects to benefit from a $4.5-million private placement.

Ashram has already produced a total rare earth oxide concentrate grading over 40%, surpassing the 30% baseline met by all major rare earth mines outside southern China. Commerce plans to focus on increased TREO recovery as well as hydrochloric acid regeneration to further cut acid consumption, the company stated.

The plan calls for a mini pilot plant “to confirm the process on a larger scale and to generate feed for full demonstration of the hydrometallurgical flowsheet through to production” of cerium- and lanthanum-depleted, mixed rare earth carbonates.

Part of the 19,000-hectare Eldor property in the Labrador Trough, Ashram is distinguished by quantities of the critical rare earth oxides neodymium, europium, terbium, dysprosium and yttrium that are “unusual in carbonatite deposits and especially those of such tonnage and grade,” according to a 2012 preliminary economic assessment.

The company’s Blue River tantalum-niobium project in southeastern B.C. reached PEA in 2011 and a resource update the following year.

Read more about Commerce Resources here and here.

Read more about rare earths in Canada.

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.

September 29th, 2014

Video: Flinders CEO discusses new graphite mine, Big North acquisition Industrial Minerals
Why stocks will do better than bonds as interest rates rise VantageWire
China defies predictions with an encouraging PMI Stockhouse
An introduction to alteration Geology for Investors
Can gold act as a safe haven again? Streetwise Reports
The last resort when monetary policy fails Equedia
Of course the gold price is manipulated, that’s the point—The London Gold Pool 1961 to 1968 GoldSeek

Athabasca Basin and beyond

September 26th, 2014

Uranium news from Saskatchewan and elsewhere for September 20 to 26, 2014

by Greg Klein

Next Page 1 | 2

As Fission’s $14.4-million placement closes, regional drilling expands PLS horizons

Seventeen exploration holes didn’t do so well but Fission Uranium TSXV:FCU thinks four others show potential well away from the four zones that have been Patterson Lake South’s focus. In a September 25 statement the company identified the Far East area, 17 kilometres east of the discovery, and the PL Corridor, 750 metres east of the discovery, as targets “for aggressive follow-up.”

The drill results come from a hand-held scintillometer that measures core for radioactivity. They’re no substitute for assays, which will follow.

Uranium news from Saskatchewan and elsewhere for September 20 to 26, 2014

A $14-million infusion helps fund Patterson Lake South,
where Fission Uranium prepares for a December resource.

Of six new holes in the Far East area, three showed anomalous radioactivity on two conductors in the vicinity of PLS14-255, an exploration hole released last month.

One of nine holes on the PL Corridor went radioactive. With another hole still to report, the regional work totalled 5,895 metres in 22 holes over five areas testing 11 electromagnetic targets. The company noted that this program brings activity closer to a Fission Energy spinout, the Clearwater West joint venture of Fission 3.0 TSXV:FUU and Brades Resource TSXV:BRA.

Fission Uranium has also slated its Forrest Lake area for future exploration drilling. Overall, PLS features more than 105 separate conductors.

On September 23 the company announced the closing of a private placement which, with the exercise of an over-allotment option, hit $14.4 million. Radiometric measurements released two weeks earlier indicated a widening of the project’s main zone.

Gryphon gives up good grades for Denison

Denison Mines TSX:DML marked summer’s end with a September 24 batch of drill results from its Wheeler River flagship. Of 20 holes totalling 14,937 metres, eight showed weak or no significant mineralization. But, more optimistically, the company provided radiometric results for the program’s newest holes as well as assays for those holes with previously released radiometric readings.

The campaign targeted the project’s Gryphon zone, where mineralization ranges from 100 to 250 metres below the unconformity within a 350-metre strike and 60-metre lateral width.

Assays are still pending for the latest holes. These results were measured in uranium oxide-equivalent from a downhole probe. Highlights include:

WR-571

  • 1.5% eU3O8 over 2.9 metres, starting at 649.4 metres in downhole depth

  • 4.2% over 1.4 metres, starting at 675.8 metres

  • 1.3% over 1 metre, starting at 714.7 metres

WR-573D1

  • 15.8% over 2.3 metres, starting at 767.2 metres

  • 1.8% over 1 metre, starting at 778.3 metres

WR-574

  • 7% over 2 metres, starting at 664.8 metres

  • 1.5% over 1 metre, starting at 674.8 metres

  • 9.8% over 2.5 metres, starting at 695.8 metres

  • 1.2% over 1 metre, starting at 709.4 metres

WR-575

  • 0.2% over 4.1 metres, starting at 630.7 metres

WR-578

  • 0.4% over 4.6 metres, starting at 772.3 metres

WR-580

  • 1.8% over 2 metres, starting at 625.6 metres

True widths were estimated at about 75%.

For the other holes, Denison provided assays which exceed the previously reported radiometric results. Some highlights include:

Hole WR-564

  • 6.6% U3O8 over 2 metres, starting at 744 metres in downhole depth

  • 3.4% over 1 metre, starting at 752 metres

  • 2.1% over 1 metre, starting at 757 metres

WR-567

  • 1.6% over 3 metres, starting at 728 metres

WR-569A

  • 2.4% over 1 metre, starting at 653.5 metres

  • 3.8% over 3 metres, starting at 662.9 metres

  • 13.2% over 3.5 metres, starting at 680 metres

  • 12.4% over 1 metre, starting at 693 metres

  • 4.9% over 9 metres, starting at 702.5 metres

  • 3.6% over 2 metres, starting at 724.6 metres

WR-570

  • 0.3% over 10.5 metres, starting at 742.5 metres

  • 0.3% over 3 metres, starting at 777 metres

Again, true widths were estimated at 75%.

With a 60% interest in Wheeler River, Denison acts as operator. Cameco Corp TSX:CCO holds 30% and JCU (Canada) Exploration the rest.

Denison updated two wholly owned projects, also near the Athabasca Basin’s southeastern corner. Two holes totalling 1,194 metres at Bachman Lake failed to find significant mineralization. Ditto for five holes totalling 2,995 metres at Crawford Lake. But the latter program extended “a large zone of sandstone and basement alteration on the CR-2 and CR-5 conductors, roughly along trend to the south of the Millennium deposit,” the company stated. Denison expects Crawford to hold high priority in 2015.

That year’s budget was taken care of by a $14.99-million private placement that closed last month.

Next Page 1 | 2

September 26th, 2014

Frac sands ’14: Permitting in Wisconsin and Minnesota Industrial Minerals
Why stocks will do better than bonds as interest rates rise VantageWire
China defies predictions with an encouraging PMI Stockhouse
An introduction to alteration Geology for Investors
Can gold act as a safe haven again? Streetwise Reports
The last resort when monetary policy fails Equedia
Of course the gold price is manipulated, that’s the point—The London Gold Pool 1961 to 1968 GoldSeek

Equitas Resources moves into Voisey’s Bay

September 25th, 2014

by Greg Klein | September 25, 2014

It was back in 1993 that diamond prospectors at Voisey’s Bay found nickel instead—so much of it that they made mining history. But, according to Equitas Resources TSXV:EQT, the Labrador region remains in a “very early stage of exploration and discovery.” Now a 100% option on the Garland project puts the company 30 kilometres from Vale’s (NYE:VALE) Voisey’s Bay mine, onto a property that’s lacked regional exploration with modern methods. Equitas believes the 25,050-hectare acquisition, announced September 25, is prospective for nickel, copper, cobalt and platinum group elements.

Equitas Resources moves into Voisey’s Bay

A ship takes Vale’s concentrate at
the Labrador port of Edward’s Cove.

Fragmented ownership of relatively small claim blocks hindered work that took place on the property by 10 companies during the late 1990s. Outdated electromagnetic surveys could penetrate to only about 75 metres. Sampling and mapping covered only a fraction of the property, Equitas stated.

Vale and its predecessors explored parts of the property between 2000 and 2007, finding several localized targets. But only one hole was sunk. “Despite the absence of significant nickel-copper-cobalt mineralization, the drill hole verified the suitability of the region to host a Voisey’s Bay-style deposit,” Equitas added.

The company plans to fly a VTEM-max survey to be interpreted along with earlier airborne gravity and magnetic data. Ground geophysics, mapping and sampling will follow to identify drill targets.

Subject to TSXV approval, the deal calls for Equitas to issue just under eight million shares over three years and pay $80,000 within one year. One of the vendors gets a 2% gross overriding royalty.

As Fission’s $14.4-million placement closes, regional drilling expands PLS horizons

September 25th, 2014

This story has been moved here.