Sunday 17th December 2017

Resource Clips


September, 2017

Norman B. Keevil book reveals tactics of 1970s B.C. flirtation with resource nationalism

September 29th, 2017

by Greg Klein | September 29, 2017

The year was 1973. No sooner had Teck Resources transplanted its HQ to Vancouver than British Columbia premier W.A.C. Bennett’s 20-year reign fell to defeat at NDP hands. Resource nationalism proved to be one of new premier Dave Barrett’s earliest enthusiasms. But the guy who bragged about his commitment to doing “what was needed and right” showed a peculiar modus operandi.

That’s just one of the stories related by Norman B. Keevil in a history of Teck to be released next week, Never Rest on Your Ores: Building a Mining Company, One Stone at a Time.

Norman B Keevil book reveals tactics of 1970s B.C. flirtation with resource nationalism

Norman B. Keevil
(Photo: Teck)

Keevil relates that on summoning him and Bob Hallbauer into the premier’s Victoria office, Barrett’s first words were, “I want your coal.”

Interest had been growing in northeastern B.C.’s deposits, among them Teck’s Sukunka. “Well, at least he did call it our coal,” Keevil notes. “That would become questionable as the situation evolved.”

The duo declined but Barrett wouldn’t give up. He kept calling them back to Victoria on an almost weekly basis.

At about the seventh such meeting, a very strange thing happened. Barrett had a curtain angled across a corner in his office. We’d never paid much attention to it, but in that seventh meeting the curtain rustled a bit, and a thin, sepulchral, white-haired professorial type jumped out from behind it. It was almost as though he was wearing a superhero cape, or super-villain. I think Dave must have gotten him out of Marvel Comics. Was there a door to another room behind the curtain, or had this strange figure just been hiding behind it, taking it all in? I never did find out.

It turned out this was the patrician Alex Macdonald, Barrett’s attorney general and the upholder of law and order—the NDP way. The honourable gentleman said to us: ‘I want you to understand just one thing. I guarantee that you will never be able to put that coal property into production. All you have is an exploration licence and, if you don’t sell to us right now, I’ll cancel it tomorrow.’

Calling it an “unseemly ultimatum from the upholder of justice,” Keevil states the company reluctantly agreed on a $20-million sale that would close in June, a few months away.

But when June arrived, the government announced it had “dropped its option,” writes Keevil—who insists that it wasn’t an option but a firm deal.

Musing over the new government’s equivocation, Keevil wonders if it just came down to money: “Certainly they had been spending like drunken sailors on redecorating some of the higher-profile, cabinet ministers’ offices.

“As to Alex Macdonald, a quote of his survives all of this: ‘In politics, your opponents are on the other side of the legislature, but your enemies are all around you.’ With him, I’m not too surprised.”

Viewing that vignette in a wider context, Keevil sees much of the mining world as chaotic for much of the 1970s and early ’80s, whether it was in B.C., Panama, Chile, El Salvador or Saskatchewan. Compounding the mess were peripheral problems ranging from the OPEC oil embargo to Trudeauvian taxes.

But as for Sukunka, it never did go into production. Teck lost interest and, with intercession from pre-prime ministerial Jean Chretien, unloaded it on BP, which eventually abandoned the project.

Yet the BP deal let Teck retain 100% of the adjacent Bullmoose project. Partly thanks to new infrastructure from a new B.C. government, Bullmoose became Teck’s first coal mine. Now Canada’s largest diversified resource company is also the world’s second-largest supplier of seaborne steelmaking coal.

Read more about Never Rest on Your Ores.

Spanish court decision a positive step for Emerita Resources’ proposed zinc acquisition

September 29th, 2017

by Greg Klein | September 29, 2017

A court ruling bodes well for Emerita Resources’ (TSXV:EMO) bid to acquire a Spanish zinc project with an historic deposit, the company says. In appealing a 2014 decision that awarded the Paymogo property to another bidder, Emerita argued that the process involved procedural errors and lacked impartiality. Now the Upper Court of Andalucia has declared the tender invalid and ordered that the bids be reassessed, the company reported on September 28. Emerita believes that if the reassessment “eliminates the illegal criteria and leaves the legal criteria as originally scored” the company’s bid will be accepted.

Emerita stated it didn’t know when the panel members would reconvene “or how they will approach the reassessment.”

Emerita has an exceptional technical team in Spain and a great depth of experience in delineating and developing these types of zinc deposits and is ready to advance the project quickly should it be awarded the tender.—David Gower,
chairperson of Emerita Resources

The ruling marks “a strong endorsement for the region as a place to conduct business to see that the rule of law is transparently and fairly administered,” said company chairperson David Gower. “Emerita has an exceptional technical team in Spain and a great depth of experience in delineating and developing these types of zinc deposits and is ready to advance the project quickly should it be awarded the tender.”

The company has also disputed Spain’s tender process for the Aznalcollar zinc project. In March Emerita stated that the Seventh Provincial Court of Seville rejected a request to dismiss a criminal case against a competing bidder, the Andalucian government panel responsible for awarding the project and Andalucia’s former director of mines.

Calling the decision a positive step in resolving the Aznalcollar dispute, Emerita CEO Joaquin Merino said the company “strongly believes that it is the only qualified bidder.”

Paymogo consists of two areas about seven kilometres apart that have seen extensive drilling, La Infanta and Romanera. The latter hosts an historic, non-43-101 estimate dating to the 1990s that showed 34 million tonnes averaging 0.42% copper, 1.1% lead, 2.3% zinc, 44 g/t silver and 0.8 g/t gold.

Aznalcollar also has an historic, non-43-101 estimate, this one showing 71 million tonnes averaging 3.86% zinc, 2.18% lead, 0.34% copper and 60 g/t silver.

In July Emerita announced plans to acquire the Salobro zinc project in Brazil, with its historic, non-43-101 estimate of 8.3 million tonnes averaging 7.12% zinc.

The company holds the Sierra Alta gold project in Spain.

September 29th, 2017

Castle Silver Resources president/CEO Frank Basa discusses the cobalt boom and Ontario’s Cobalt camp SmallCapPower
What will electric vehicles do for zircon demand? Industrial Minerals
Market crashes should be embraced and not feared GoldSeek
Price chart: Cobalt, lithium-ion batteries and EVs Benchmark Mineral Intelligence
The U.S. debt bubble will soon warrant serious measures Equities.com
Gold and bitcoin surge on North Korea fears Stockhouse
Looking at Vatic Ventures’ potash project in Thailand Geology for Investors
Copper: Good news for Chile, bad news for the U.S. Streetwise Reports
Q2 energy metals earnings review—crunch time for the lithium majors The Disruptive Discoveries Journal

Mountain Boy Minerals hits high-grade gold as drills turn on three B.C. properties

September 28th, 2017

by Greg Klein | September 28, 2017

With initial results in from one of Mountain Boy Minerals’ (TSXV:MTB) three current drill programs at British Columbia’s Golden Triangle, assays show some of the grades that make the region so attractive. So far 33 holes have been completed at the Red Cliff property, 28 on the Montrose zone and five on the Red Cliff zone. The first batch of assays covered five holes from each zone, with Montrose hitting as high as 19.9 g/t gold over 4.12 metres and 9.98 g/t over 3.35 metres. Drilling extended Montrose at depth and along strike, showing the campaign’s best results:

Hole DDH-MON-3

  • 1.53 g/t gold over 3.05 metres, starting at 227.44 metres in downhole depth
Mountain Boy Minerals hits high-grade gold as drills turn on three B.C. properties

  • 1.06 g/t over 0.46 metres, starting at 231.55 metres

  • 9.98 g/t over 3.35 metres, starting at 248.48 metres

DDH-MON-4

  • 2.61 g/t over 2.28 metres, starting at 244.97 metres

  • 19.5 g/t over 0.76 metres, starting at 256.25 metres

  • 5 g/t over 2.13 metres, starting at 264.33 metres

DDH-MON-5

  • 2 g/t over 5.74 metres, starting at 279.73 metres

  • 1.07 g/t over 0.74 metres, starting at 310.52 metres

  • 19.9 g/t over 4.12 metres, starting at 311.28 metres

True widths weren’t provided. Two selected chip samples from Lower Montrose excelled with grades of 390 g/t and 35.7 g/t gold.

Five other holes targeted the Red Cliff zone, about 1.2 kilometres south. Highlights showed:

RC-17-3

  • 6.4 g/t gold and 3.37% copper over 0.61 metres, starting at 53.23 metres

RC-17-4

  • 1.6 g/t gold and 4.89% copper over 0.46 metres, starting at 37.01 metres

Again, true widths weren’t provided. Two other Red Cliff zone holes showed low values, the company stated.

At the project’s Waterpump zone, meanwhile, a grab sample returned 11.6 g/t gold and a chip sample graded 19.2 g/t.

Mountain Boy considers Montrose, Lower Montrose and Waterpump to be a single zone that was displaced by faulting. Expected to continue another six weeks, the Red Cliff program has several holes slated at depth on Montrose and to the west, as well as six to eight others for Waterpump.

Mountain Boy holds a 35% interest in Red Cliff in a joint venture that has recently acquired additional claims.

The Silver Coin project’s current drill program calls for about 2,000 metres to extend and upgrade lenses of high-grade gold mineralization within the Main Breccia zone to the northwest and to test targets along strike to the south and east.

Using a 2 g/t gold cutoff, a 2013 resource for Silver Coin’s four zones totals:

  • indicated: 702,000 tonnes averaging 4.46 g/t gold, 17.89 g/t silver, 0.88% zinc, 0.33% lead and 0.07% copper

  • inferred: 967,000 tonnes averaging 4.39 g/t gold, 18.98 g/t silver, 0.64% zinc, 0.25% lead and 0.04% copper

Mountain Boy holds a 20% interest in Silver Coin, with the remainder held by JV partner Jayden Resources TSXV:JDN.

And the third drill program has just begun, as the Ataman zone on Mountain Boy’s 100%-held Surprise Creek undergoes 500 to 600 metres to test and sample barite, a mineral essential to oil and gas exploration. Last July the company announced production of a barite concentrate exceeding American Petroleum Institute standards.

Earlier this week Mountain Boy closed a private placement of $586,400.

Read Isabel Belger’s interview with Mountain Boy Minerals chairperson René Bernard.

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

Golden Dawn Minerals to refurbish former B.C. gold-silver-copper mine and mill for trial operation

September 28th, 2017

by Greg Klein | September 28, 2017

Slated to begin imminently, a dewatering and rehab program could help Golden Dawn Minerals TSXV:GOM bring new life to a southern British Columbia past producer. Under a previous operator the former Lexington mine produced 5,486 ounces of gold, 3,247 ounces of silver and 860,259 pounds of copper from April to December 2008. Processing took place about 17 kilometres away at the Greenwood mill. With a 212-tpd capacity expandable to 400 tpd, the mill now comprises an important asset in Golden Dawn’s portfolio of nearby former mines.

Golden Dawn Minerals to refurbish former B.C. gold-silver-copper mine and mill for trial operation

Built in 2007 only to be shuttered months later by the downturn,
the Greenwood mill holds a key position in Golden Dawn’s plans.

Lexington’s rehab will focus on two declines prior to installing electrical service and ventilation. The agenda then calls for mapping, sampling and definition drilling to support test mining.

A 2016 resource used a base case 3.5 g/t gold-equivalent cutoff, giving Lexington:

  • measured: 58,000 tonnes averaging 6.98 g/t gold, 1.1% copper and 8.63 g/t gold-equivalent for 16,100 gold-equivalent ounces

  • indicated: 314,000 tonnes averaging 6.38 g/t gold, 1.04% copper and 7.94 g/t gold-equivalent for 80,200 gold-equivalent ounces

  • inferred: 12,000 tonnes averaging 4.42 g/t gold, 1.03% copper and 5.96 g/t gold-equivalent for 2,300 gold-equivalent ounces

Although Lexington remains the company’s current priority, surface drilling continues on the company’s Golden Crown property, host to the Greenwood mill. Fifteen holes have been completed so far, with a plan to further delineate and extend the project’s 2016 resource. Using a 3.5 g/t gold-equivalent cutoff, the estimate shows:

  • indicated: 163,000 tonnes averaging 11.09 g/t gold, 0.56% copper and 11.93 g/t gold-equivalent for 62,500 gold-equivalent ounces

  • inferred: 42,000 tonnes averaging 9.04 g/t gold, 0.43% copper and 9.68 g/t gold-equivalent for 13,100 gold-equivalent ounces

Another summer drill program at May Mac, another past producer, wrapped up with eight surface holes totalling 1,886 metres. One interval found 1.13 g/t gold, 23 g/t silver and 0.7% lead over 0.36 metres starting at 204.34 metres in downhole depth. Another intersection revealed previously unknown copper, grading 0.24% over 0.79 metres starting at 45 metres in depth.

Following up on a spring campaign, the program showed May Mac’s Skomac vein system extending at least 215 metres beyond the former mine’s workings. Golden Dawn now has permitting underway for underground drilling to avoid the topographical challenges encountered over the extension.

As for the mill, contractors agree the 2007-built facility “is in excellent shape,” Golden Dawn stated. Estimates call for about $270,000 and three to five weeks to put the plant back into operation. The company anticipates that happening as feed becomes available from the Lexington mine.

Golden Dawn also spent the summer prospecting additional former mine sites and mineral showings on other holdings within an approximately 15-kilometre radius of the mill.

Given the portfolio’s existing resources, infrastructure and potential, Golden Dawn hopes to enter production without de-risking at the feasibility level. The properties lie approximately 500 kilometres by highway east of Vancouver.

Earlier this month the company closed a $2-million private placement first tranche. Subject to approvals, Golden Dawn expects to close an additional $640,000.

Read more about Golden Dawn Minerals.

Far Resources expands Manitoba lithium property as drilling continues

September 28th, 2017

by Greg Klein | September 28, 2017

Far Resources expands Manitoba lithium property as drilling continues

New ground brings Far Resources a new neighbour.

An additional 2,200 hectares extends Far Resources’ (CSE:FAT) Zoro project towards Thompson Brothers, a lithium project held by Ashburton Ventures TSXV:ABR. Both of the properties in northern Manitoba’s Snow Lake camp have historic, non-43-101 resources and current drill programs. Far Resources has field work planned for its new turf.

The 100% option calls for $25,000 and the same amount in shares on signing. Further commitments would add $225,000 and the same in shares, along with $500,000 in spending over 84 months. A 2% NSR applies, half of which Far Resources may buy for $1 million.

Last week the company began Zoro’s first modern drill campaign with a planned 700 metres focusing on the property’s dyke 1. The program follows soil sampling as well as sampling from historic trenches and pits elsewhere on the property that brought high-grade results.

Far Resources also holds the Winston gold project in New Mexico.

September 28th, 2017

The demise of the dollar? Don’t hold your breath GoldSeek
Price chart: Cobalt, lithium-ion batteries and EVs Benchmark Mineral Intelligence
The U.S. debt bubble will soon warrant serious measures Equities.com
Gold and bitcoin surge on North Korea fears Stockhouse
Looking at Vatic Ventures’ potash project in Thailand Geology for Investors
Chinese magnesia projects get government and academic support Industrial Minerals
Copper: Good news for Chile, bad news for the U.S. Streetwise Reports
“Democracy is truly the worst form of government”: Jayant Bhandari SmallCapPower
Q2 energy metals earnings review—crunch time for the lithium majors The Disruptive Discoveries Journal

September 27th, 2017

The demise of the dollar? Don’t hold your breath GoldSeek
Price chart: Cobalt, lithium-ion batteries and EVs Benchmark Mineral Intelligence
The U.S. debt bubble will soon warrant serious measures Equities.com
Gold and bitcoin surge on North Korea fears Stockhouse
Looking at Vatic Ventures’ potash project in Thailand Geology for Investors
Chinese magnesia projects get government and academic support Industrial Minerals
Copper: Good news for Chile, bad news for the U.S. Streetwise Reports
“Democracy is truly the worst form of government”: Jayant Bhandari SmallCapPower
Q2 energy metals earnings review—crunch time for the lithium majors The Disruptive Discoveries Journal

Rockcliff Copper prepares to drill northern Manitoba zinc deposit

September 26th, 2017

This story has been updated and moved here.

September 26th, 2017

The demise of the dollar? Don’t hold your breath GoldSeek
Price chart: Cobalt, lithium-ion batteries and EVs Benchmark Mineral Intelligence
The U.S. debt bubble will soon warrant serious measures Equities.com
Gold and bitcoin surge on North Korea fears Stockhouse
Looking at Vatic Ventures’ potash project in Thailand Geology for Investors
Chinese magnesia projects get government and academic support Industrial Minerals
Copper: Good news for Chile, bad news for the U.S. Streetwise Reports
“Democracy is truly the worst form of government”: Jayant Bhandari SmallCapPower
Q2 energy metals earnings review—crunch time for the lithium majors The Disruptive Discoveries Journal