Friday 17th November 2017

Resource Clips


August, 2017

Update: Berkwood Resources continues to drill visible graphite in Quebec

August 31st, 2017

by Greg Klein | updated August 31, 2017

Assays have yet to arrive, but two holes reported last week and another five on August 31 have all produced near-surface core with visible graphite from Berkwood Resources’ (TSXV:BKR) Lac Gueret South project. The Phase I program calls for nine more shallow holes between about 60 and 120 metres in depth.

The company cautioned that visible indications don’t necessarily coincide with significant grades. But the results do justify continuing the program as planned, Berkwood stated.

Lac Gueret South borders the property hosting Mason Graphite’s (TSXV:LLG) high-grade graphite deposit. A 2014 airborne EM survey over Berkwood’s land found several zones of high conductivity.

Last week’s news from the property’s Site #1 reported 3.1 metres and 38.29 metres of visible graphite from BK1-01-17, along with 2.7 metres and 9.9 metres from BK1-02-17. The depths corresponded with electromagnetic conductors.

Berkwood Resources continues to drill visible graphite in Quebec

The first seven holes have brought observable
encouragement to Berkwood Resources’ Lac Gueret South.

Among new findings from Site #2, about 110 metres north, BK1-03-17 displayed the right stuff in seven intervals ranging between 1.46 metres and 28.2 metres in width.

Another Site #2 hole, BK1-04-17 showed graphite “continuously from 26.7 metres to 79.24 metres in variable amounts and styles,” Berkwood stated.

At Site #3, another 65 kilometres north, BK1-05-17 revealed graphite over four intervals with thicknesses between 3.2 metres and 14.12 metres. BK1-06-17 brought intervals of 13.22 metres and 1.14 metres.

About 87 metres east, BK1-07-17 on Site #4 showed 5.94 metres of graphite.

True widths weren’t provided.

The company holds two land parcels adjacent to the Mason property, Berkwood’s 100%-optioned, 5,714-hectare Lac Gueret South and the 100%-held, 2,052-hectare Lac Gueret East. The properties sit about three hours by road from the deep-sea port of Baie-Comeau.

Last month the company announced acquisition of the Delbreuil property in Quebec’s Abitibi, where an historic, non-43-101 sample assayed 1,290 ppm lithium and 126 ppm tantalum. Historic drill results also showed zinc, nickel, copper, silver and cobalt.

In another energy mineral acquisition last June, Berkwood announced an agreement to take on the Cobalt Ford property, located about four hours’ driving time from Baie-Comeau. Historic, non-43-101 work suggests prospectivity for base metals as well as cobalt.

This week the company closed private placements totalling $985,180.

Castle Silver Resources assays more gold from Ontario cobalt-polymetallic project

August 31st, 2017

by Greg Klein | August 31, 2017

Phase I surface drilling originally planned for 1,500 metres has wrapped up on 22 holes totalling 2,405 metres as Castle Silver Resources TSXV:CSR sees new polymetallic potential from a former mine near Ontario’s Cobalt camp. Drill core assays are pending but re-evaluation of five chip samples ranged from 0.72 grams per tonne to 7.03 g/t gold, averaging 3.7 g/t. The original assays for the same samples, reported last June, averaged 1.06% cobalt, 5.3% nickel and 17.5 g/t silver. The samples were selected from 200 kilograms taken just inside the adit.

Castle Silver Resources assays more gold at Ontario cobalt-polymetallic project

An expanded drill program has Castle Silver Resources
anticipating results for precious, base and energy metals.

Castle Silver had the samples evaluated for gold after an 82-kilogram bulk sample of vein material showed 5.7 g/t gold, as well as 46.3 g/t silver and 1.48% cobalt in results reported last month.

More bulk sampling will follow now that IOS Services Géoscientifiques has tested the property’s vein structures with Niton portable XRF technology. The results will help identify targets for bulk sampling and underground drilling after the former mine’s drift has been rehabilitated.

Using a 14.8% cobalt concentrate produced from recently sampled material, Castle Silver plans tests with its proprietary Re-2OX hydrometallurgical process to produce cobalt hydroxide samples. The company also intends to gauge Re-2OX’s potential to recover lithium and cobalt from Li-ion batteries.

“We’re seeing the potential for a variety of mineralization types within the Castle mine, well beyond just the high-grade silver that was recovered intermittently during the 1900s,” said president/CEO Frank Basa. “CSR is well funded to carry out its plans for a strong operational finish to 2017.”

Last month the company closed a private placement of $897,500, bringing the total since March to nearly $2.6 million.

August 31st, 2017

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Arctic Star Exploration’s Patrick Power discusses the Timantti property in Finland

August 30th, 2017

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August 30th, 2017

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Geophysics show potential kimberlite expansion on Margaret Lake Diamonds/Arctic Star Exploration’s Lac de Gras JV

August 29th, 2017

by Greg Klein | August 29, 2017

Borrowing techniques that proved successful at Kennady North, Margaret Lake Diamonds TSXV:DIA and Arctic Star Exploration TSXV:ADD announced geophysical results that potentially expand their Diagras property’s known kimberlites. The partners hold 60% and 40% respectively of the joint venture in the Northwest Territories’ diamond-rich Lac de Gras region, where Margaret Lake acts as operator.

Geophysics show potential kimberlite expansion on Margaret Lake Diamonds/Arctic Star Exploration’s Lac de Gras JV

Last spring’s ground program of magnetics, gravity and electromagnetics targeted known kimberlites as well as “unresolved targets generated from public domain data,” the companies stated. Similar techniques have helped Kennady Diamonds TSXV:KDI further its understanding of the Kennady North property’s Kelvin and Faraday kimberlites.

Results dating to 2005 on Diagras’ Jack Pine kimberlite identified a north-south axis extending more than 500 metres, with about four to five hectares at surface. But recent work north of Jack Pine shows a possible new discovery that’s been named Sequoia. Although verification would call for more drilling, the new findings indicate an anomaly that doubles the geophysical footprint, potentially making this “the largest kimberlite complex in the Lac de Gras field,” according to the partners.

Geophysics around Diagras’ Black Spruce kimberlite show anomalous gravity lows up to about 200 metres south and east of a magnetic low and its corresponding diamondiferous drill results by a previous operator. Again, drilling will be necessary to confirm the presence of additional kimberlite.

The partners also reported other geophysical signatures that might indicate additional kimberlite in and around other known kimberlites on the 18,699-hectare property. Further geophysical evaluations are planned for next spring, along with a drill program.

In addition to its Diagras interest, Margaret Lake holds its namesake Margaret Lake project adjacent to Kennady North. In July, Arctic Star announced plans to acquire the Timantti project in Finland, where due diligence has confirmed the presence of micro-diamonds. Arctic Star also holds the CAP rare earths and rare metals prospect in east-central British Columbia. Early this month the company announced discovery of a carbonatite-syenite complex, an extremely rare occurrence potentially associated with “a plethora of commodities” and “the dominant source for niobium and rare earth elements,” the company stated.

Late last month Arctic Star offered a private placement up to $1.25 million.

Read Isabel Belger’s interview with Arctic Star president/CEO Patrick Power.

August 29th, 2017

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Robert Friedland talks copper, zinc, PGMs and China’s “airpocalypse”

August 28th, 2017

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Where grade meets market

August 25th, 2017

The Khorat Basin’s potash advantages attract Vatic Ventures to Thailand

by Isabel Belger

Isabel Belger

Isabel Belger

Isabel: I would like to introduce the president of Vatic Ventures Corp [NEX:VCV.H], Nasim Tyab. Hi Nasim, it is a pleasure to talk to you again. Thank you for taking the time.

Nasim: It is a pleasure to talk to you again, Isabel.

Isabel: To get started I’d like to ask you to tell a bit about your background and how you became president of Vatic Ventures Corp.

Nasim: Basically, I have been working in the capital markets since the early 1990s, and one of the earlier companies that I worked with was a company called Asia Pacific Resources, which was exploring for potash in Thailand, where it made a fantastic discovery. The market capitalization of the company, based on that discovery, went up to $1 billion and the company moved from the Vancouver Stock Exchange to full TSX listing. The CEO of the company at that time was Dr. Gerry Wright. Gerry and I kept in touch over the years, and in the meantime I was looking for a project for Vatic. Gerry wanted to return to Thailand because he thought the timing and the opportunity were optimal. Through his contacts we managed to acquire 80% of a Thai company called Saksrithai Development that had two potash concessions in Thailand in a highly prospective area.

Isabel: I was going to ask you next why you chose to develop projects in Thailand, but you have basically covered that already.

Nasim: I can certainly expand on my answer! Vatic Ventures is exploring for potash, which most people know as a mineral required to produce fertilizer. Most of the growing demand comes from Asia. We know that the potash in Thailand represents the largest undeveloped known deposits in Asia, if not the world.

Isabel: You said potash is mostly used as an ingredient for manufacturing fertilizer and the growing demand is in Asia. What do they use it for, for growing rice?

The Khorat Basin’s potash advantages attract Vatic Ventures to Thailand

Terraced rice fields in Chiang Mai province, Thailand.

Nasim: Yes, exactly, for growing rice, palm oil and a number of other crops. If you look at the southeast Asian market, where Vatic’s project is, you have essential crops like rice, with Thailand and Vietnam being very large rice producers. Then there is palm oil, and countries like Malaysia and Indonesia are the biggest producers of palm oil. About 70% of total potash imports into our market area are used for these two crops.

Isabel: So it is a very smart move to develop a project where demand for potash is mostly growing.

Nasim: Yes, because it is a bulk commodity which is sold by the tonne. Presently most of the world’s potash comes from Canada, especially Saskatchewan, or from Russia and Europe.

Isabel: So it is a transportation cost problem, right?

Nasim: Yes, there is arguably a lot of potash in the world. But that is not the issue. The issue with potash is transportation costs, as you point out. Being in Thailand, which is the market we are planning to sell to, we could have a US$60 per tonne transportation cost advantage.

Isabel: That is a significant advantage. How is it as a foreign exploration company to work in Thailand?

Nasim: Dr. Gerry Wright became the CEO of Vatic Ventures when we closed the transaction earlier this year, and as I mentioned Gerry has very strong contacts there. Operationally we have got great experience on the ground in Thailand and also great governmental contacts. The other thing that is very significant is that we are the only Western company in that basin.

The Khorat Basin’s potash advantages attract Vatic Ventures to Thailand

A map shows Vatic Ventures’ Saksrithai project,
along with known deposits in Thailand.

We shot seismic recently and the reason we did so is because there is a potash mine beside us that is going into production with very good grades. The seismic proof is the same proof that he used for Asia Pacific Resources. The seismic contractor is the same contractor he used in his earlier discovery in the ’90s, and that is the same with the drilling contractor.

Isabel: You say Gerry has great contacts with the government. Is Thailand generally very mining-friendly, or does it mostly work through relationships built over the years?

Nasim: He works through long-term contacts. First, you must remember that in Thailand potash is regarded as a very strategic resource and they give out very few licences, and only to parties that they have substantially vetted. Second, in terms of being mining-friendly, there was a steering committee recently set up which basically was mandated to develop Thailand´s potash resources. The thing with potash is it is like coal. It just keeps going on and on unless there is faulting. But based on the seismic, if you look at our last news release (July 26), it clearly indicates [structural] connectivity between us and the deposit next door. The other important fact about Thai potash is that it is relatively shallow. It is about 300 metres, compared with up to 1.7 kilometres or more down in Saskatchewan. This allows us great savings in capital and operating costs, not only when you are mining but also in exploration costs. So you could say one drill hole has maybe one-tenth of the cost compared to drilling costs in Canada. So two major competitive advantages Vatic enjoys in Thailand are shallow depth and proximity to the market.

Isabel: The shallowness and the proximity of the market give you already a big advantage. Is there something else that makes your project special?

Nasim: We anticipate similar grades to the adjoining project where reported grades are better than the majority of average potash grades held by most other potash juniors. Obviously, we will have to drill it to confirm the grade. One other aspect to consider is a number of these junior potash companies have compelling market caps. There is for example Danakali Resources in Eritrea, with a $186-million market cap, and Highfield Resources in Spain with a $347-million market cap. These are projects not yet in production, although drilled out…. So Vatic Ventures, which has a market cap of less than $2 million, has great leverage if the company is successful in its exploration.

Isabel: What are the highlights so far on the project? You mentioned the seismic survey.

Nasim: The highlight is that the seismic survey shows structural continuity with the project next door. And based on the tabular nature of potash, it greatly increases the prospectivity of what we are going to be drilling.

Isabel: So you are really happy about the outcome of the seismic survey.

Nasim: Absolutely. It is very positive.

Isabel: What will be your next steps on the project?

We have highlighted some areas for the initial drilling program. We may shoot a bit more seismic to further define those targets. We expect to commence drilling in early November, after the end of the rainy season in the area.—Nasim Tyab

Nasim: We have highlighted some areas for the initial drilling program. We may shoot a bit more seismic to further define those targets. We expect to commence drilling in early November, after the end of the rainy season in the area.

Isabel: How much money do you have in the bank right now? Do you plan to raise money soon?

Nasim: Yes, we will be conducting a share offering at some point in the near future to further develop the company´s assets.

Isabel: Do you know how much stock management owns?

Nasim: About 10%.

Isabel: Are you going to change your listing to the TSX Venture any time soon?

Nasim: Yes, that is our planning. Coincident to the upcoming financing, and the fact that we shot the seismic program, we will file the 43-101 report and we expect to move to the TSX Venture.

Isabel: This is going to be this year?

Nasim: Yes, our plan is for October.

Isabel: When will there be the next news, and can we expect a news flow within the upcoming months?

Nasim: Yes. There is the upcoming financing. We are expecting to file the technical report, going to TSX Venture, drilling and then the drilling results coming out.

Isabel: That sounds like a news flow to me. Thank you very much for your time and good luck with the drilling.

Nasim: Thank you for having me, Isabel.

The Khorat Basin’s potash advantages attract Vatic Ventures to Thailand

Nasim Tyab, president of
Vatic Ventures

 

Bio

Mr. Tyab is a businessman with a background in management, corporate development and public company finance. He has over 25 years of experience with public companies and has served as a director and senior officer of a number of public companies, principally in the minerals and energy sectors. He has been the president of Oracle Energy since 2000 and was the president of Senco Sensors from 1995 to 2001.

Mr. Tyab has also been a director of Mohave Exploration and Production from November 2006 to August 2010, an oil and gas company which amalgamated with Porto Energy. He served as a consultant to Asia Pacific Resources and, as a member of the corporate development team for the Udon Thani project, he is familiar with the regional potash industry. Mr. Tyab received a Bachelor of Arts degree from Simon Fraser University in 1995. He has been president of Vatic since 2011.

Fun facts

My hobbies: Hiking, practising on my instruments, spending time with my family
My favourite airport: Vancouver
My favourite tradeshow: PDAC
My favourite commodity: Potash and copper
With this person I would like to have dinner: Elon Musk
If I could have a superpower, it would be: To tell the future