Friday 17th November 2017

Resource Clips


June, 2017

A cornucopia in B.C.

June 30th, 2017

Isabel Belger discusses precious and base metals, industrial commodities with René Bernard of Mountain Boy Minerals

 

Isabel Belger discusses precious and base metals, industrial minerals with Rene Bernard of Mountain Boy Minerals

Isabel Belger

Isabel: I would like to introduce the new chairman of Mountain Boy Minerals TSXV:MTB, René Bernard. Hi René, it is a pleasure to talk to you again and congratulations on becoming chairman. Tell us a little bit about your background, and the decision for you to become chairman of Mountain Boy Minerals.

René: Thank you Isabel, it is always a pleasure to talk to you. Several years ago, I researched a number of junior exploration companies to invest in. I came across Mountain Boy Minerals and was attracted by their 20% carried interest in the Silver Coin property, a 43-101 resource next to a mature mining camp, and their ownership in several other properties with high-grade gold and silver mineralization. After my initial investment, I started talking to management and had an opportunity to visit the properties. As my share position grew over time I offered the company experience I had gained as CEO, president and director of several listed companies in the mineral resource sector. When I agreed to be a director, I was asked by the board to be chair and to actively help with their vision to advance the company’s mining assets.

Isabel: Mountain Boy Minerals projects are all in British Columbia. Could you give a little overview of your properties?

René: Ed [Kruchkowski], our president and CEO, has worked as a geologist in the Golden Triangle of northwestern B.C. for decades. This has allowed him to acquire over time some of the most promising properties. All of our properties, from the gold-rich Silver Coin and Red Cliff claim blocks to the MB Silver, which hosts Bonanza-grade silver mineralization, to the two large VMS zones present on the BA and Surprise Creek properties, have the potential to be operating mines. Not to take away from our precious and base metal assets, we also find industrial metals in our properties which could be profitably mined due to the proximity of roads, power and a deep water port within 30 to 40 kilometres. Earlier this year, we acquired a zeolite property in southern B.C. which is also close to the markets this mineral targets for its use.

Isabel: What have been the highlights so far?

René: There are many, but what comes to mind is the 43-101 report on the Silver Coin showing a large gold resource, our continued success in drilling into high-grade gold mineralization at Red Cliff, and our recent acquisition of the 50% interest in the BA and Surprise Creek properties.

Isabel: Cobalt and lithium have gained a lot of attention within the last year or so. MTB owns properties with the interesting commodities barite and zeolite. Could you explain to the readers what these two (maybe not so well known) commodities are used for and shed some light on why they are interesting?

Isabel Belger discusses precious and base metals, industrial minerals with Rene Bernard of Mountain Boy Minerals

René Bernard took up Mountain Boy
Minerals’ board leadership in May.

René: There would be no oil and gas exploration as we know it today without barite. It is a heavy non-metal mineral which is used as a weighing agent in drilling fluids to control pressure. There are no real alternatives to the use of this mineral. It is deemed a critical mineral as there is not enough local supply to meet demand. As per USGS, 78% of the North American demand was met through imports in 2016, mostly from China, India and Morocco. The USGS quotes the average value per ton as $198 f.o.b. mill. Our situation is unique in that we identified … barite within a large VMS system. The embedded barite zones also carry significant base and precious metal values, as observed by surface sampling and drilling, which adds value in the processing stage. The property is within eight kilometres of a B.C. Hydro transmission line and within 30 minutes’ trucking distance to the deep water port of Stewart.

At our zeolite property we have large zeolite beds with similar favourable infrastructure. Zeolite is called the mineral of a thousand uses. You will see its application in agriculture, water filtration, municipal wastewater treatment, oil spill and soil remediation, and much more.

Isabel: What‘s your strategy and your next steps with the two projects, maybe relating to how much easier it is to produce these in comparison to gold, and how that could help to make revenue—which could be used for developing the other projects?

René: On the barite project, we need to establish a 43-101 resource through systematic drilling. We have submitted material to an analytical lab to show metal recovery and barite specification through gravity and flotation treatment. Later in the year we will have to perform larger-scale testing to show that the process will work in a large operation. We will soon seek to engage industry partners in this exciting discovery.

At the zeolite property we are in the process of conducting several studies which will help us to get the support of the provincial government and local First Nations stakeholders in applying for a quarry licence in the future. We will also need to block out significant volumes through drilling and trenching, and submit samples for testing. The idea has been floating within the company to engage an engineering firm to test for processes to create a slow-release fertilizer. A value-added product like this could be marketed in large quantities and add great value for the company.

Isabel: What is the most exciting thing happening right now at Mountain Boy?

Isabel Belger discusses precious and base metals, industrial minerals with Rene Bernard of Mountain Boy Minerals

An intercept from late last year on the Ataman zone of Mountain Boy’s
50%-held Surprise Creek project showed 4.31% zinc, 44.75 g/t silver,
0.33% copper and 67% barite over 4.58 metres.

René: Our current drill program on the Red Cliff property, which started a couple of weeks ago, and getting ready to do work on the Ataman zone, a 600-metre-wide VMS system we discovered recently on the Surprise Creek property.

Isabel: What are the plans for the rest of 2017?

René: To do good work in advancing our properties with a focus on near-production opportunities. On the corporate side, we will focus on showing our shareholders and potential shareholders the value we see in our different properties. We will reach out to the mining and petroleum industry to attract potential equity partners. These partners would offer more to us than just money; their experience with commodities such as gold, silver, zinc, as well as barite and zeolite, and how to mine them and bring them to market. The company will be in early consultation with provincial and local government and the representatives of First Nations communities.

Isabel: How much money do you have in the bank?

René: Money is always a rare commodity with junior mineral explorers as we are tasked to spend it in developing our properties as soon as we receive it. We are contacting potential industry partners for financial participation and will work with the investment industry and individual shareholders to secure the funds necessary.

Isabel: How much of Mountain Boy is held by the management?

René: Management owns approximately 40% of the outstanding shares. We want to show our investors and co-owners that we truly believe in the value of our assets.

Isabel: What do you like about the mineral exploration business?

René: It is exciting and highly rewarding once an economic resource has been discovered and developed.

Isabel: What is your favourite commodity and why?

René: I like gold; though we all like gold (laughs). I favour silver and zinc to be champions due to depleting stockpiles and ever-increasing uses. I like the practical applications industrial minerals such as barite and zeolite are sought for and how fast they can be brought into production with minimal investments, creating much-desired cash flow.

Isabel: Where do you see the gold price?

René: Somewhere within $1,100 and $1,400 from the understanding I have about the markets and what drives supply and demand.

Read more about Mountain Boy Minerals here and here.

See an infographic about B.C.’s Golden Triangle.

Another $20 million boosts BonTerra Resources as multiple drills target Gladiator

June 30th, 2017

by Greg Klein | June 30, 2017

Obviously some people like what they see in BonTerra Resources’ (TSXV:BTR) Gladiator gold project in Quebec. Raising an amount just $120 shy of $20 million, the company announced the closing of its most recent private placement on June 30. This financing began with a $12.9-million bought deal earlier in the month. Eleven days later BonTerra increased the offer to $19,999,880.

Another $20 million boosts BonTerra Resources as multiple drills target Gladiator

Results from Gladiator’s aggressive drill campaign
brought BonTerra another large cash infusion.

With Sprott Capital Partners acting as lead underwriter, Eric Sprott came in for another $2.3 million, building his indirect ownership of BonTerra from 8.9% to approximately 10.04% of outstanding shares.

In a nearly $14-million placement that closed in early March, Sprott participated to the tune of $3.89 million. Later that month another private placement brought in $1.02 million. March didn’t end until the company attracted another $5.2 million in a strategic investment by Kinross Gold TSX:K.

The main attraction is BonTerra’s 8,126-hectare property in Quebec’s Urban-Barry camp, host to Osisko Mining’s (TSX:OSK) Windfall project and an area that Osisko believes has district potential. BonTerra has multiple rigs working on a 40,000-metre campaign, focusing on resource expansion and especially targeting a 600-metre gap separating the Gladiator deposit from the Rivage zone to the west.

Assays for three holes released in early June included one hole that confirmed the project’s new South zone, while other intercepts extended other zones west of the deposit. The project has been drilled to 850 metres in depth and 1.2 kilometres in strike, leaving it open in all directions.

The results build anticipation for an update to the 2012 resource which, using a 4 g/t cutoff, showed an inferred 905,000 tonnes averaging 9.37 g/t for 273,000 ounces gold.

In Ontario’s Cadillac/Larder Lake break, meanwhile, BonTerra intends to bring two historic estimates from 2011 up to 43-101 standards. The Larder Lake project’s Bear Lake deposit has a non-43-101 inferred resource of 3.7 million tonnes averaging 5.7 g/t for 683,000 gold ounces. The Cheminis deposit hosts a non-43-101 estimate with an indicated category of 335,000 tonnes averaging 4.1 g/t for 43,800 gold ounces and an inferred 1.39 million tonnes averaging 5.2 g/t for 233,400 ounces.

Read more about BonTerra Resources.

June 30th, 2017

Environmental tax to end era of cheap Chinese minerals Industrial Minerals
Canada: 150 years of innovation Equities.com
Has gold production peaked and would it matter? GoldSeek
Time to ban short selling? Stockhouse
Part 2 of King’s Wealth: Gold Stocks Playbook Streetwise Reports
A look at Ivanhoe’s Kamoa-Kakula project Geology for Investors
Cobalt supply is in a “death spiral”: Jack Lifton SmallCapPower
Takeaways from the recent Industrial Minerals lithium conference in Montreal The Disruptive Discoveries Journal
Lithium-ion batteries now sell for less than $140 per kWh Benchmark Mineral Intelligence

June 29th, 2017

Time to ban short selling? Stockhouse
Are central banks going to intentionally crash the system? GoldSeek
Part 2 of King’s Wealth: Gold Stocks Playbook Streetwise Reports
The famous 10 rules of investing—which most investors don’t follow Equities.com
Qatar freight embargo raises fears of a barite squeeze Industrial Minerals
A look at Ivanhoe’s Kamoa-Kakula project Geology for Investors
Cobalt supply is in a “death spiral”: Jack Lifton SmallCapPower
Takeaways from the recent Industrial Minerals lithium conference in Montreal The Disruptive Discoveries Journal
Lithium-ion batteries now sell for less than $140 per kWh Benchmark Mineral Intelligence

Rick Rule notes a common remark among “serially successful” mining entrepreneurs

June 28th, 2017

…Read more

Equitorial Exploration to drill for NWT lithium

June 28th, 2017

by Greg Klein | June 28, 2017

The rig returns to a Northwest Territories hardrock lithium project for the first time in a decade as Equitorial Exploration TSXV:EXX heads to the field in July. About 30 kilometres from the former Cantung tungsten mine in the territory’s southwest, the Little Nahanni Pegmatite Group project will also undergo mapping, channel sampling and resampling of drill core from 2007 when two holes struck intervals of 1.2% Li2O over 10.94 metres and 0.92% over 18.27 metres.

Equitorial Exploration to drill for NWT lithium

Red paint marks a channel sample
interval from last year’s field work at LNPG.

Summer drilling will test the vertical extent of lithium-cesium-tantalum-type pegmatite dyke swarms now identified at about 300 metres in depth and 13 kilometres in strike. The dykes are well exposed on cirque walls of the mountainous terrain, the company stated.

Channel sampling last year brought assays up to 1.13% Li2O, 71.1 g/t Ta2O5 and 0.03% SnO2 over 10.35 metres. That included a sub-interval of 1.86% Li2O, 116.7 g/t Ta2O5 and 0.05% SnO2 over 6.3 metres.

Three specimen samples released in October brought results up to 2.85% Li2O, 28.1 g/t Ta2O5 and 0.05% SnO2.

Equitorial filed a 43-101 technical report on the LNPG project in March.

In Utah last May, the company staked another 1,092 hectares, expanding its Tule Valley lithium project to about 2,792 hectares. That gives Equitorial the entire Tule Valley Basin, which the company describes as a closed basin which could be similar to Nevada’s Clayton Valley. Equitorial also sees Clayton Valley similarities in the company’s Gerlach property in Nevada.

June 28th, 2017

Brexit one year later, in five charts Stockhouse
Part 2 of King’s Wealth: Gold Stocks Playbook Streetwise Reports
The famous 10 rules of investing—which most investors don’t follow Equities.com
For mainstream news agencies, gold’s flash crash must be somebody’s “mistake” GoldSeek
Qatar freight embargo raises fears of a barite squeeze Industrial Minerals
A look at Ivanhoe’s Kamoa-Kakula project Geology for Investors
Cobalt supply is in a “death spiral”: Jack Lifton SmallCapPower
Takeaways from the recent Industrial Minerals lithium conference in Montreal The Disruptive Discoveries Journal
Lithium-ion batteries now sell for less than $140 per kWh Benchmark Mineral Intelligence

Canada’s “second currency” celebrates Canada’s 150th birthday

June 27th, 2017

by Greg Klein | June 27, 2017

Canada’s “second currency” celebrates Canada’s 150th birthday

“Deeply rooted in Canadian heritage.”

 

Having issued lots of commemorative coins marking this special year, the Royal Canadian Mint now faces competition from another national institution—Canadian Tire. From June 30 to July 2, customers may pick up a “redesigned, limited-edition 10-cent bill of its iconic Canadian Tire ‘money’,” the retail chain announced.

What started as a type of store coupon, and evolved into a customer loyalty program, became along the way “such an iconic part of Canadian culture that it’s considered Canada’s second currency,” the store modestly states. True, some small businesses have accepted the notes and they’ve changed hands in private transactions between regular customers, giving the scrip some measure of legitimacy.

Canada’s “second currency” celebrates Canada’s 150th birthday

Canada’s “second currency”
comes to a store near you.

In fact, the chain has put over $1 billion of its money into circulation since its debut in 1958.

Collectors take the stuff seriously too, sometimes paying almost exponentially above face value for nice, clean, crisp notes.

Reflecting either ostentation or genuine concern about counterfeiting, the new release employs unique gold foil elements and a watermark produced by the Canadian Bank Note Company.

Not quite as early or in the same manner as Bitcoin, Canadian Tire money went digital in 2014. But the “paper money is still in circulation, and this initiative is a way to celebrate the past and look to the future,” the chain adds.

Eschewing Canadian currency regulars such as the Queen, a canoe or a loon, the commemorative notes do display some nice scenery, maple leaves and that curiously cheerful-looking Scot. (He must have saved a bundle on that portrait.) Yet Canadian Tire ad writers pulled out the patriotic stops, calling the money “iconic,” “quintessentially Canadian,” a “beloved Canadian classic,” “deeply rooted in Canadian heritage.”

Canada’s “second currency” celebrates Canada’s 150th birthday

As for the Mint, it’s put commemorative coins into collectors’ editions as well as circulation. The toonie at right is described as “the world’s first coloured bimetallic coin and the first circulation coin to feature glow-in-the-dark technology.”

At Canadian Tire, meanwhile, two million 10-cent bills, roughly one for every 18 Canadians, will hit cashiers’ desks this Canada Day weekend. And if confidence in money reflects faith more than intrinsic value, Canada might be fortunate to have a backup currency.

Numismatic news: Loonie turns 30, Rio Tinto unveils precious metal/diamond coins.

June 27th, 2017

Brexit one year later, in five charts Stockhouse
Part 2 of King’s Wealth: Gold Stocks Playbook Streetwise Reports
The famous 10 rules of investing—which most investors don’t follow Equities.com
For mainstream news agencies, gold’s flash crash must be somebody’s “mistake” GoldSeek
Qatar freight embargo raises fears of a barite squeeze Industrial Minerals
A look at Ivanhoe’s Kamoa-Kakula project Geology for Investors
Cobalt supply is in a “death spiral”: Jack Lifton SmallCapPower
Takeaways from the recent Industrial Minerals lithium conference in Montreal The Disruptive Discoveries Journal
Lithium-ion batteries now sell for less than $140 per kWh Benchmark Mineral Intelligence

Newfoundland newly found

June 26th, 2017

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

 

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

Isabel Belger

Isabel: I would like to introduce Jon Armes, the president and CEO of Kapuskasing Gold TSXV:KAP. Jon, good to see you again. Tell us something about your background to start with.

Jon: Hi Isabel, good to see you too. I started in the mineral exploration business back in 1993 as an investor relations consultant. I spent the better part of 10 years working for various companies exploring for gold and precious metals as well as base metals and diamonds.

In the mid-2000s I ended up working in the field alongside a couple of different geologists and spent time managing drill programs, splitting drill core, prospecting and assisting in the staking of claims. I also helped structure some companies—bringing project opportunities and public companies together.

In 2010 I was given the opportunity to run a junior exploration company called Lakeland Resources. That company merged with Alpha Exploration in late 2015 and became ALX Uranium [TSXV:AL]. I remained as president until October of 2016 after concluding a transaction with Denison [TSX:DML] on behalf of ALX.

I was appointed president of Kapuskasing Gold in February of 2016. We carried out some drilling last summer on a gold project in Timmins, Ontario, but unfortunately did not intersect anything of significance in that campaign. Since that time I have been looking for the right opportunity or opportunities to bring in to the Kapuskasing property portfolio. The Newfoundland property package seemed like the right fit, and since then we have done some consolidating to the original acquisitions announced on March 1, 2017, and then more recently added the Daniel’s Harbour zinc property to the property portfolio. The copper-cobalt projects are the Lady Pond property and the King’s Court property. The lack of systematic testing for cobalt gave rise to these properties being so interesting because, the few times cobalt was tested for, there were several anomalous values. I particularly like the short- and longer-term outlook for both copper and zinc, and these copper-cobalt projects also provide a polymetallic exposure that includes cobalt, gold and silver.

Isabel: Congratulations on your recent zinc property acquisition in Newfoundland, the Daniel’s Harbour property. What intrigued you about this project?

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

With breathtaking geography and bountiful geology, the Rock
and neighbouring Labrador hold potential for Kapuskasing.

Jon: The opportunity to acquire a project that was a past-producer is always an interesting one. There is an old saying in the mining business that the best place to look for a mine or a deposit is in the “shadow of a headframe.” The Mississippi Valley-type nature of these zinc deposits is also intriguing because of the difficulty in finding them. Typically they are found in an outcrop as was the case for the majority of the lenses that were mined out between 1975 and 1990. I am of the belief that there is an opportunity to find more of these lenses within the boundary of the current Daniel’s Harbour zinc property. The fact that Altius [TSX:ALS] has acquired a significant land position within the immediate area of this project only helps to reaffirm my belief. We will do some compilation of the historic work and more recent exploration on the property and incorporate some out-of-the-box thinking on how to employ some geophysics that have either not been used before or perhaps some re-interpretation. Another aspect could be a ground prospecting program that may identify an outcrop or showing on the property that has yet to be found.

Isabel: What are your exploration plans for the coming months?

Jon: Kapuskasing is currently undertaking a small financing to assist in getting things going both on the Daniel’s Harbour property and the Lady Pond copper-cobalt project. As mentioned, the first things for Daniel’s Harbour would be some data compilation and to identify some geophysical techniques to help identify some drill targets.

The Lady Pond copper-cobalt property has a drill-ready target area called the Twin Pond prospect, recently acquired to complete the consolidation of the original Lady Pond property package. We have also staked several claims to cover additional historic showings of copper-cobalt-gold and silver. The Twin Pond prospect has a non-43-101 resource of approximately one million tonnes grading 1% copper, and looks to be open in all directions. [We hope to increase this resource] with a properly designed drill program—ideally in the coming months with the right funding and availability of service companies to carry out the work.

In the immediate area of Lady Pond, there are several past-producing mines and undeveloped prospects that could turn into economic deposits…. Rambler Metals [TSXV:RAB] has several projects and properties in this area, including the Little Deer project contiguous to our Lady Pond property. There is potential with the right combination of funding and exploration success for Kapuskasing to find more than one of these deposits within the Lady Pond property, having had a good start with the Twin Pond prospect.

Isabel: How much of Kapuskasing is held by the management?

Jon: Currently insiders and parties close to the company own approximately 20% of the issued and outstanding shares. Typically the insiders participate in the financings, as will be the case in this one. We are currently looking to raise up to $750,000 in a combination of flow-through and common shares. We hope to close a first tranche financing in the coming weeks to begin deploying exploration capital.

Isabel: What is your favourite commodity besides the ones in your company?

Kapuskasing will be in a great position to take advantage of not just one but several commodity price spikes, the first of which I think will be in both copper and zinc. —Jon Armes

Jon: I do like both copper and zinc, as evidenced by the recent acquisitions. The battery technology metals are also interesting—with cobalt and lithium leading the latest charge. People forget that electricity needs copper. Wires transport the electricity from batteries and generators to the tool or outlet. I consider copper to be the most important metal for the energy metal sector. We have cobalt as a possible byproduct of the two main polymetallic projects in the Lady Pond and King’s Court projects, along with gold, silver and zinc. Kapuskasing will be in a great position to take advantage of not just one but several commodity price spikes, the first of which I think will be in both copper and zinc.

Isabel: What do you like most about your job?

Jon: I like the multifaceted aspects of running a junior exploration program; there never seems to be a dull moment. I get to meet a lot of different people in the mining and finance industry, the prospectors that generate the project ideas, and the service people that ultimately carry out the exploration of the projects with our team of geologists and technicians. The most exciting times are when we are actually carrying out a drill program. It is drilling that ultimately leads to discovery.

Isabel: That is right. Good talking to you Jon, and good luck with the drill program.

Jon: Thank you.

 

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

Jon Armes
president/CEO of
Kapuskasing Gold

Bio

Jonathan Armes, also known as Jon, has been the CEO and president of Kapuskasing Gold since February 9, 2016, and a director since October 8, 2014. Jon Armes has been a consultant of ALX Uranium since October 2016. Jon Armes served as the president/CEO of ALX Uranium (formerly, Lakeland Resources) from August 12, 2010, until October 2016. He has provided corporate development and investor relations services to mining exploration companies for over 15 years including Band-Ore Resources (which became part of Lake Shore Gold, which in turn joined Tahoe Resources TSX:THO) and Trelawney Mining and Exploration, an IAMGOLD TSX:IMG takeover. He graduated from the University of Guelph in 1993 with a Bachelor of Applied Science degree.

Fun facts

My hobbies: Fishing, hockey and music
Sources of news I use: News apps on my phone
My favourite airport: Vancouver
My favourite commodities: Copper, gold, zinc, cobalt
My favourite tradeshow: PDAC
With this person I would like to have dinner: Warren Buffet (talking about philanthropy, investing and life)
If I could have a superpower, it would be: Seeing into the future


Read more about Kapuskasing Gold.