Friday 17th November 2017

Resource Clips


July, 2017

Neil McCallum of Dahrouge Geological Consulting looks at the closeology of Zimtu Capital’s 50%-held Munn Lake diamond project

July 31st, 2017

…Read more

July 31st, 2017

Three potential black swans that could trigger a global recession Equities.com
Have China’s environmental inspections changed the magnesia industry? Industrial Minerals
Veteran trader says there’s no “fat finger” but plenty of gold and silver manipulation GoldSeek
BoC raises interest rate, TSX shrugs it off Stockhouse
Cobalt’s shift to battery grade needed an independent price to reflect it Benchmark Mineral Intelligence
Could Blockchain end gold price suppression? 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

Robert Friedland’s favourites

July 28th, 2017

Unprecedented demand calls for unparalleled grades, the industry legend says

by Greg Klein

For all that’s being said about lithium and cobalt, Robert Friedland argues that the energy revolution also depends on copper and platinum group elements. Of course he has a stake in them himself, with Kamoa-Kakula and Platreef among his current enthusiasms. Still, whether motivated by self-interest or not, the mining titan whom Rick Rule calls “serially successful” presented a compelling case for his favourite metals at the Sprott Natural Resource Symposium in Vancouver on July 25.

We’re living in “an era of unprecedented change,” said Ivanhoe Mines’ TSX:IVN founding chairperson. China’s the main cause. That country’s “breeding mega-cities prodigiously.” But one result is “incredibly toxic air… with a whole suite of health effects” from heart attacks to stroke, asthma to Alzheimer’s.

Unprecedented demand calls for unparalleled grades, the industry legend says

A crew operates jumbo rigs to bring
Ivanhoe’s Platreef mine into PGM production.

China’s not alone. Friedland pegs current global population growth at 83 million a year, with a projected 8.5 billion people populating the planet by 2030. Five billion will inhabit urban areas. Forecasts for 2050 show 6.3 billion city-dwellers. But China, notorious for its poisoned atmosphere, “is on an air pollution jihad.” It’s an all-out effort to turn back the “airpocalypse” and, with a command economy, a goal that shall be achieved.

The main target will be the internal combustion engine, responsible for about 60% of urban air pollution, Friedland said. China now manufactures 19 million cars annually, he adds. The country plans to increase output to 60 million, a goal obviously contrary to the war on pollution unless it emphasizes electric vehicles.

Like others, Friedland sees massive disruption as the economics of EVs overtake those of internal combustion engines, a scenario he expects by 2022 or 2023.

Demand for lithium-ion batteries (comprising 4% lithium, 80% nickel sulphate and 15% cobalt) has sent cobalt prices soaring. But bigger EVs will likely rely on hydrogen fuel cells, he pointed out. They’re already used in electric SUVs, pickup trucks, double-decker buses in London, trains in Germany and China, and, expected imminently, autonomous air taxis in Dubai.

Hydrogen fuel cells need PGMs. If only one-tenth of China’s planned EV output used the technology, demand would call for the world’s entire platinum supply, Friedland said.

“I would rather own platinum than gold,” he declared. Additionally, “there’s no platinum central reserve bank to puke out platinum.”

Ivanhoe just happens to have PGMs, about 42 million ounces indicated and 52.8 million ounces inferred, at its 64%-held Platreef project in South Africa.

Unprecedented demand calls for unparalleled grades, the industry legend says

Underground development progresses at the Kansoko mine,
part of the Kamoa copper deposit and adjacent to Kakula.

Electricity for the grid also ranks high among China’s airpocalyptic priorities. A study produced for the United Nations Environment Programme credits the country with a 17% increase in renewable electricity investment last year, most of it going to wind and solar. Almost $103 billion, China’s renewables investment comes to 36% of the world total.

Just as EVs remain more copper-dependent than internal combustion, wind and solar call for much more of the conductive commodity than do other types of electricity generation. Friedland sees additional disruptive demand in easily cleaned copper surfaces now increasingly used in hospitals, care homes, cruise ships and other places where infectious diseases might lurk.

He sees a modest copper supply deficit now, with a crisis possibly starting as soon as 2019. The world needs a new generation of copper mines, he said, repeating his unkind comparison of today’s low-grade, depleting mines to “little old ladies waiting to die.” The world’s largest producer, the BHP Billiton NYSE:BHP/Rio Tinto NYSE:RIO Escondida mine in Chile, is down to a 0.52% grade.

Copper recently hit a two-year high of about $6,400 a tonne. But, citing Bernstein data, Friedland said new mines would require a $12,000 price.

Not Kamoa-Kakula, though. He proudly noted that, with an indicated resource grading 6.09%, it hosts “the richest conceivable copper deposit on this planet.”

I’ve never been as bullish in my 35 years on a project.—Robert Friedland

A JV with Ivanhoe and Zjin Mining Group each holding 39.6% and the DRC 20%, Kamoa-Kakula inspires “a plethora of superlatives.” The veteran of Voisey’s Bay and Oyu Tolgoi added, “I’ve never been as bullish in my 35 years on a project.”

The zillionaire likes zinc too, which his company also has in the DRC at the 68%-held Kipushi project. With a measured and indicated grade of 34.89%, the Big Zinc zone more than doubles the world’s next-highest-grade zinc project, according to Ivanhoe. There’s copper too, with three other zones averaging an M&I grade of 4.01%.

“Everything good in the Congo starts with a ‘K’,” he said enthusiastically.

But recklessly, in light of the DRC’s controversial Kabila family. In June Ivanhoe was hit by reports that the company has done deals with businesses held by the president’s brother, Zoe Kabila, although no allegations were made of wrongdoing.

The family has run the country, one of Africa’s poorest, since 1997. Current president Joseph Kabila has been ruling unconstitutionally since November, a cause of sometimes violent protest that threatens to further destabilize the DRC.

As the New York Times reported earlier this month:

An implosion of the Democratic Republic of Congo, a country almost the size of western Europe, could spill into and involve some of the nine countries it borders. In the late 1990s, neighbouring countries were sucked into what became known as the Great War of Africa, which resulted in several million deaths.

Friedland’s nearly hour-long address made no mention of jurisdictional risk. But the audience of hundreds, presumably most of them retail investors, responded warmly to the serial success story. He’s the one who, after Ivanhoe languished at five-year lows in early 2016, propelled the stock more than 300% over the last 12 months.

July 28th, 2017

Veteran trader says there’s no “fat finger” but plenty of gold and silver manipulation GoldSeek
Central bankers have hit a brick wall of their own making Equities.com
BoC raises interest rate, TSX shrugs it off Stockhouse
Cobalt’s shift to battery grade needed an independent price to reflect it Benchmark Mineral Intelligence
Could Blockchain end gold price suppression? Streetwise Reports
Tesla wins contract for world’s largest battery system 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

Aurvista Gold names technical advisory committee for Abitibi advancement

July 27th, 2017

by Greg Klein | July 27, 2017

Flush with $10.1 million in recent financings and data from an extensive drill campaign, Aurvista Gold TSXV:AVA continues to beef up its personnel. Three days after announcing nominees for an expanded board of directors, the company named its appointees to a newly created technical advisory committee to help further the Douay gold project in Quebec’s Abitibi.

Aurvista Gold names technical advisory committee for Abitibi advancement

“We are in a period of growth and transition and will continue putting the best people, processes and systems in place,” said president/CEO Matthew Hornor, himself a newcomer as of last May. “We are going to take a hard look at all of the project data and results to date and complete the necessary exploration and preparation work to ensure our technical decision-makers have the information and resources required to succeed.”

Just nominated to the board of directors, David Broughton and Maurice Tagami join the advisory committee as well.

Mining engineer R. Dennis Bergen’s 40-plus years of experience include managing the Golden Bear gold mine in northern British Columbia, the Cantung tungsten mine in the Northwest Territories and the Ketza River gold mine in the Yukon.

Electrical engineer John Casson specializes in infrastructure design, project evaluation and implementation analysis in world class mining and beneficiation projects. He has held senior positions on major projects including Voisey’s Bay, Mary River and the El Aouj iron ore project in Mauritania.

Previously Aurvista’s president/CEO, Jean Lafleur now moves from his current position as VP of exploration into the advisory committee. He was instrumental in discovering new reserves for McWatters Mining gold projects in the Val-d’Or and Malartic camps, as well as developing a bulk gold exploration program at the Canadian Malartic property.

Thanking Lafleur for his service, Hornor said, “He has done an admirable job leading exploration and will continue to be a key contributor as we shift to a committee approach to integrate some of the brightest minds in the industry into our exploration planning and strategy going forward.”

Aurvista’s 30,500-hectare Douay project has a highway and transmission lines crossing the property and benefits from the Abitibi region’s labour, supplies and services. A March resource update, using a 0.5 g/t cutoff, calculated an inferred category for seven zones totalling 83.3 million tonnes averaging 1.05 g/t for 2.81 million gold ounces.

The recently completed spring/summer drill program totalled 59 holes and 23,965 metres.

Far Resources’ Manitoba lithium project reveals additional spodumene-bearing pegmatite

July 27th, 2017

by Greg Klein | July 27, 2017

Far Resources CSE:FAT has identified spodumene-bearing pegmatite dykes at its Zoro project in Manitoba to a greater extent than previously understood, enhancing the property’s lithium potential. The company confirmed the presence of a dyke swarm following a field visit to the Snow Lake region property, which was originally known to host seven spodumene-bearing dykes. Far Resources announced the discovery of additional dykes earlier this month.

Far Resources’ Manitoba lithium project reveals additional spodumene-bearing pegmatite

A drill program would be necessary to determine their full dimensions, the company stated. Eighteen chip samples have been sent for assays.

Prospecting found dyke 7 exposed over 220 metres before it trends beneath a swamp. Dyke 7 has two smaller pegmatite dykes associated with it, both mineralized with spodumene and possible tantalite. One has a strike of about 80 metres and width up to 13 metres. The other shows about 75 metres in strike and two to three metres in width. Twenty-one pits and trenches have been documented from dyke 7, the company reported.

Dyke 6 outcrop was identified for about 100 metres in strike and widths of 0.5 to two metres. “It has not been exposed by trenches or pits and remains untested although spodumene is present in the dyke,” Far Resources added.

Dyke 5 extends for a 250-metre strike with widths from two to 12 metres at surface. Nineteen pits or trenches have revealed spodumene and possible tantalite.

“With the success of this field program we are looking forward to completing further work to assess dykes 2, 3 and 4 for additional mineralized pegmatites,” said president/CEO Keith Anderson. “This field work will lay the ground work for further drilling in the winter of 2017.”

In late June the company closed its acquisition of the Winston gold project in New Mexico. Last week Far Resources announced it would propose to shareholders that a new company be created to manage the project.

July 27th, 2017

Veteran trader says there’s no “fat finger” but plenty of gold and silver manipulation GoldSeek
Central bankers have hit a brick wall of their own making Equities.com
BoC raises interest rate, TSX shrugs it off Stockhouse
Cobalt’s shift to battery grade needed an independent price to reflect it Benchmark Mineral Intelligence
Could Blockchain end gold price suppression? Streetwise Reports
Tesla wins contract for world’s largest battery system 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

New assays on old core reveal more diamonds on Arctic Star Exploration’s new Finnish acquisition

July 26th, 2017

by Greg Klein | July 26, 2017

Just weeks after announcing plans to take on a diamond project in Finland, Arctic Star Exploration TSXV:ADD has found further encouragement by reanalyzing previous work. Recent assays on 48.65 kilograms of historically extracted split core showed 111 microdiamonds. The results represent approximately 52.7 metres of core from the Timantti property’s White Wolf kimberlite.

New assays on old core reveal more diamonds on Arctic Star Exploration’s new Finnish acquisition

A due diligence program reported earlier this month confirmed 58 microdiamonds from an 18.9-kilogram White Wolf sample.

With most of the world’s diamond-bearing kimberlites showing an exponential relationship between small and large stones, the company plans to gather enough caustic fusion samples to evaluate the property’s diamond size distribution. Following ground geophysics, Arctic Star hopes to drill Timantti for additional samples, delineating the kimberlites’ size and shape.

Looking at an entirely different range of commodities, the company last week sent a drill crew to the Cap project in east-central British Columbia’s Rocky Mountain Rare Metal Belt. Tantalum, niobium and rare earths are among the targets on the 2,825-hectare property. In 2010 sampling results included 0.14% Nb2O5, 3,191 ppm zirconium and 547 ppm total rare earth elements. More sampling the following year brought grades including 0.27% Nb2O5 and 773 ppm TREE, while two historic, non-43-101 samples showed 0.13% and 0.1% TREE.

Arctic Star also holds a 40% interest in the Northwest Territories’ Diagras diamond project, where JV partner Margaret Lake Diamonds TSXV:DIA conducted a short geophysical program last May.

King’s Bay prepares for Newfoundland copper-cobalt field program

July 26th, 2017

by Greg Klein | July 26, 2017

Update: Effective August 14, 2017, King’s Bay Gold begins trading as King’s Bay Resources TSXV:KBG.

Copper-cobalt findings dating to the 19th century have King’s Bay Gold TSXV:KBG about to begin Phase I exploration on its Trump Island project off Newfoundland’s northern coast. The company has a team ready to study historic data prior to geophysics and grab sampling on the 200-hectare property. Depending on results, Phase II could incorporate drilling.

King’s Bay prepares for Newfoundland copper-cobalt field program

The property’s exploration history dates to 1863, when a Cornish miner sunk a six-metre shaft to follow a zone of massive chalcopyrite. Mineralization reportedly expanded with depth but the technology of the time prevented further excavation. Nevertheless the Cousin Jack reportedly shipped to Wales high-grade copper-cobalt material archaically recorded as “40 pounds per fathom.”

Grab samples collected near the shaft in 1999 showed historic, non-43-101 results up to 3.8% copper, 0.3% cobalt, 2.9 g/t gold and 10.9 g/t silver.

Located seven miles south of the town of Twillingate, Trump Island has boat access to a highway 1.5 kilometres away.

Last month King’s Bay reported geophysical results from another copper-cobalt project, this one along a provincial highway in Labrador. Airborne VTEM over the 24,000-hectare Lynx Lake property revealed a shallow anomaly of high resistivity about 400 metres in diameter and 50 to 300 metres in depth. The results came from the project’s West Pit, where historic, non-43-101 grab samples showed up to 1.03% copper, 0.566% cobalt, 0.1% nickel, 5 g/t silver, 0.36% chromium, 0.39% molybdenum and 0.23% vanadium.

Lynx Lake’s summer agenda includes higher-resolution ground geophysics, possible stripping to expose bedrock south of the pit and follow-up work on historic soil samples on the property’s southeastern area, along with mapping and sampling over both areas.

The company’s portfolio also includes three Quebec properties with historic, non-43-101 cobalt results.

Earlier this month King’s Bay closed a first tranche totalling $316,250 of a private placement offered up to $725,000. The company expects to close the second tranche by the end of August. King’s Bay closed a previous financing of $938,752 in January.

Read about cobalt supply and demand.

See an infographic about cobalt.

July 26th, 2017

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Central bankers have hit a brick wall of their own making Equities.com
BoC raises interest rate, TSX shrugs it off Stockhouse
Cobalt’s shift to battery grade needed an independent price to reflect it Benchmark Mineral Intelligence
Could Blockchain end gold price suppression? Streetwise Reports
Tesla wins contract for world’s largest battery system 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