Monday 24th September 2018

Resource Clips


February, 2018

February 28th, 2018

Consumers in surprising places are borrowing like crazy GoldSeek
The world’s cobalt supply is in jeopardy Stockhouse
Why you should not trust most economic data Equities.com
Stock market volatility attributed to “shenanigans” Streetwise Reports
Volatility in lithium: A gift or a curse? The Disruptive Discoveries Journal
China’s Qinghai targets mammoth lithium carbonate expansion Benchmark Mineral Intelligence
The potential for a resurgence in U.S. fluorspar production Industrial Minerals
Geology fundamentals—veins, dykes and sills Geology for Investors
As junior mining rebounds, so does “froth and hype,” says Rosseau Asset Management CEO Warren Irwin SmallCapPower

Saville Resources president Mike Hodge notes an exceptional grab sample assay from the newly acquired Miranna claims in northern Quebec

February 27th, 2018

…Read more

Underground mini-bulk sampling brings Canada Cobalt Works 2.47% cobalt in Ontario

February 27th, 2018

by Greg Klein | February 27, 2018

Eastern Ontario’s former Castle mine gave up more high-grade assays as Canada Cobalt Works TSXV:CCW takes initial permitting steps for dewatering the underground workings and building a processing facility for another project. A 13-kilogram sample showed 2.47% cobalt, 23.4 g/t silver, 0.68% nickel and 1.83 g/t gold. A 14-kilo sample brought 0.91% cobalt, 460 g/t silver and anomalous nickel and gold. The company, formerly Castle Silver Resources, warned that the samples are selective and not necessarily representative.

Underground mini-bulk sampling brings Canada Cobalt Works 2.47% cobalt in Ontario

Two mini-bulk samples released in early December graded 3.124% and 1.036% cobalt, along with silver and nickel. Assays are pending from last summer’s 2,405-metre surface drill campaign, from where a single intercept released so far graded 1.55% cobalt, along with nickel, gold and silver over 0.65 metres.

The company’s now preparing to apply for government permission to dewater levels two to 11 of the former mine, which operated intermittently between 1917 and 1989.

With plans to build a 600-tpd gravity flotation cyanidation mill, Canada Cobalt has retained an engineering firm to begin earthworks studies for permitting. The plant would be financed by Granada Gold Mine TSXV:GGM to process material from its project near Rouyn-Noranda, Quebec, about 200 road kilometres away. Granada’s gold project reached pre-feasibility in 2014 and a resource update in June.

Canada Cobalt also holds the former Beaver mine in Ontario’s Cobalt camp, about 80 kilometres southeast of the flagship Castle project. In December the company released assays for three composite samples that averaged 4.68% cobalt, 3.09% nickel, 46.9 g/t silver and 0.08 g/t gold.

A private placement that closed in mid-January brought the company $1.03 million.

February 27th, 2018

Stock market volatility attributed to “shenanigans” Streetwise Reports
State of inflationary confusion GoldSeek
Five things investors should know about China this New Year Stockhouse
Is a new gold bull market on the horizon? Equities.com
Volatility in lithium: A gift or a curse? The Disruptive Discoveries Journal
China’s Qinghai targets mammoth lithium carbonate expansion Benchmark Mineral Intelligence
The potential for a resurgence in U.S. fluorspar production Industrial Minerals
Geology fundamentals—veins, dykes and sills Geology for Investors
As junior mining rebounds, so does “froth and hype,” says Rosseau Asset Management CEO Warren Irwin SmallCapPower

Trans-Atlantic treasures

February 26th, 2018

Emerita Resources fast-tracks high-grade zinc in Brazil and Spain

by Greg Klein

Two years of escalating prices and several years of historic work have Emerita Resources TSXV:EMO in an exceptionally sanguine mood. Following December’s oversubscribed $4.24-million cash infusion and last month’s TSXV approval to close the Brazilian acquisition, the company announced a breathtakingly ambitious timeline for its Salobro zinc project. Should all go to a very optimistic plan, the company would advance from updating an historic resource to completing pre-feas and mine permitting within two to three years.

Emerita Resources fast-tracks high-grade zinc in Brazil and Spain

Should success reward optimism, Salobro
could reach pre-feasibility next year.

The 1,210-hectare former Vale NYSE:VALE project’s located in southeastern Brazil’s Minas Gerais state, where regional infrastructure includes a zinc smelter, paved roads, rail, water and power.

Salobro comes with an historic, non-43-101 Vale-compiled resource of 8.3 million tonnes averaging 7.12% zinc-equivalent lying at shallow depth and showing expansion potential along strike and down dip. The geology suggests either a Mississippi Valley-type or sedimentary exhalative deposit, Emerita says. A standout among historic intervals assayed 10.39% zinc and 2.13% lead over 13.92 metres.

The acquisition would give Emerita a 75% stake in Salobro and the right to pick up the remaining 25% from IMS Engenharia Mineral Ltda. Vale, meanwhile, has begun the process of withdrawing a civil claim against IMS concerning ownership of the property, Emerita stated. The company expects to close the deal by the end of March.

“Ambitious” might be an understatement for such an optimistic timeline. But the project “has consistently exceeded our expectations during our scoping and analysis phase,” says newly appointed CEO Michael Timmins. The veteran of Agnico Eagle Mines’ (TSX:AEM) expansion from one to nine operations adds, “We are encouraged by the outcome of this early mine study and are very excited to have the opportunity to utilize our award-winning mine-building team in Brazil to fast-track the development of Salobro.”

With that in mind the company foresees a 43-101 technical report filed by the end of March, a 43-101 resource by the end of Q2, 3,500 metres of exploration drilling to begin in early March, a PEA complete by the end of Q3, baseline enviro studies beginning in Q3, a pre-feas finished by Q3 2019 and mine development permits in hand by Q2 2020.

Obviously such an agenda depends on favourable outcomes at every stage. The company has already been resampling historic core for the new resource, which will also include upcoming step-out holes to expand the deposit’s shallow areas. A conceptual mine plan will build on info inherited from Vale.

Emerita credits its Brazilian team with significant involvement in projects including Belo Sun Mining’s (TSX:BSX) Volta Grande gold project and Aguia Resources’ (TSXV:AGRL) Tres Estradas phosphate deposit.

The deal calls for Emerita to pay Vale an initial US$350,000 after IMS turns Salobro over to a subsidiary held 75% by Emerita and 25% by IMS. Once Vale formally withdraws its claim against IMS, Emerita pays Vale legal costs of approximately 760,000 reals, about C$297,000. Further payments to Vale would cost Emerita US$1.65 million by July 14, US$1.5 million in 2020 and another US$3 million in 2024.

Emerita may buy out the IMS 25% for C$2 million and a million shares by 2021.

Emerita Resources fast-tracks high-grade zinc in Brazil and Spain

The Plaza Norte agenda aims for a late-
2019 preliminary economic assessment.

Helping on the financial side will be December’s oversubscribed $4.24-million private placement. But some of that cash will go to another Emerita zinc project—and for that, the focus shifts to northern Spain.

Situated next to the former Reocin mine that produced about 62 million tonnes averaging 11% zinc and 1.4% lead up to 2003, the 3,600-hectare Plaza Norte property sits amid regional infrastructure including rail, road and port facilities, along with a Glencore zinc smelter about 180 road kilometres away. The project is a 50/50 JV with the Aldesa Group, a specialized construction and infrastructure firm operating in Spain and internationally.

Emerita’s Spanish team now has permitting underway for a 5,000-metre campaign anticipated to start in May. The plan is to build a 43-101 resource over an area that’s already seen more than 300 holes totalling about 73,000 metres. Some historic intercepts include 9.72% zinc and 0.09% lead over 18.96 metres, along with 7.05% zinc and 0.3% lead over 8.2 metres. The company anticipates an initial resource in Q1 next year and a PEA by 2019 year-end.

Meanwhile Emerita awaits resolution of disputed ownership concerning two other Spanish zinc properties, Paymogo and Aznalcollar. The latter’s Los Frailes deposit hosts an historic, non-43-101 estimate showing 20 million tonnes averaging 6.65% zinc, 3.87% lead, 0.29% copper and 148 ppm silver. The company considers the project ready for feasibility studies.

Paymogo’s La Infanta deposit has another historic, non-43-101 estimate of 800,000 tonnes averaging 1.77% copper, 6.91% lead, 12.66% zinc and 148 g/t silver. About seven kilometres away, Paymogo’s Romanera deposit holds an historic, non-43-101 34 million tonnes averaging 0.42% copper, 1.1% lead, 2.3% zinc, 44 g/t silver and 0.8 g/t gold.

February 26th, 2018

Stock market volatility attributed to “shenanigans” Streetwise Reports
State of inflationary confusion GoldSeek
Five things investors should know about China this New Year Stockhouse
Is a new gold bull market on the horizon? Equities.com
Volatility in lithium: A gift or a curse? The Disruptive Discoveries Journal
China’s Qinghai targets mammoth lithium carbonate expansion Benchmark Mineral Intelligence
The potential for a resurgence in U.S. fluorspar production Industrial Minerals
Geology fundamentals—veins, dykes and sills Geology for Investors
As junior mining rebounds, so does “froth and hype,” says Rosseau Asset Management CEO Warren Irwin SmallCapPower

February 23rd, 2018

Bubbles everywhere GoldSeek
Five things investors should know about China this New Year Stockhouse
Is a new gold bull market on the horizon? Equities.com
Large speculators and the house of pain Streetwise Reports
Volatility in lithium: A gift or a curse? The Disruptive Discoveries Journal
China’s Qinghai targets mammoth lithium carbonate expansion Benchmark Mineral Intelligence
The potential for a resurgence in U.S. fluorspar production Industrial Minerals
Geology fundamentals—veins, dykes and sills Geology for Investors
As junior mining rebounds, so does “froth and hype,” says Rosseau Asset Management CEO Warren Irwin SmallCapPower

Miners rank jurisdictions in annual Fraser Institute report card

February 23rd, 2018

by Greg Klein | February 22, 2018

Although Finland edged Saskatchewan out of first place and Manitoba fell dramatically, Canada’s total provincial and territorial ratings held this country’s reputation as the world’s most mining-friendly nation. Those are among the findings of the Fraser Institute Annual Survey of Mining Companies 2017, released February 22. For this year’s edition the authors contacted 2,700 companies, getting 360 responses which were tabulated into several indices. Most prominent is the Investment Attractiveness Index, which combines ratings for each jurisdiction’s geology and policies. “Respondents consistently indicate that approximately 40% of their investment decision is determined by policy factors,” according to the report.

With that in mind, here’s the 2017 IAI top 10 out of 91 jurisdictions, with the previous year’s standings out of 104 jurisdictions in parenthesis:

  • 1 Finland (5)

  • 2 Saskatchewan (1)

  • 3 Nevada (4)

  • 4 Ireland (9)

  • 5 Western Australia (3)

  • 6 Quebec (6)

  • 7 Ontario (18)

  • 8 Chile (39)

  • 9 Arizona (7)

  • 10 Alaska (14)

Ontario demonstrated substantial improvement, but Chile showed a dramatic surge for the copper and lithium powerhouse.

As for Canadian runners-up, Manitoba plunged from second to 18th place while British Columbia and New Brunswick gained considerably:

Miners rank jurisdictions in annual Fraser Institute report card

  • 11 Newfoundland and Labrador (16)

  • 13 Yukon (15)

  • 18 Manitoba (2)

  • 20 B.C. (27)

  • 21 Northwest Territories (21)

  • 26 Nunavut (31)

  • 30 New Brunswick (40)

  • 49 Alberta (47)

  • 56 Nova Scotia (52)

Only two Argentinian provinces made the bottom 10, compared with five last year. Meanwhile China, although the world’s biggest consumer of minerals, isn’t such a great place to produce them:

Miners rank jurisdictions in annual Fraser Institute report card

(Images: Fraser Institute)

  • 82 Nicaragua (71)

  • 83 China (54)

  • 84 Romania (69)

  • 85 Venezuela (102)

  • 86 Bolivia (83)

  • 87 Mozambique (95)

  • 88 Chubut province, Argentina (101)

  • 89 Mendoza province, Argentina (98)

  • 90 Kenya (86)

  • 91 Guatemala (88)

Geology results from forces beyond our control but government policies have all-too human origins. So it might be worth looking at how Canada rates in the survey’s Policy Perception Index, which rates jurisdictions according to mining-friendliness:

  • 3 Saskatchewan (2)

  • 9 Quebec (17)

  • 10 Newfoundland and Labrador (18)

  • 13 New Brunswick (8)

  • 16 Alberta (28)

  • 20 Ontario (26)

  • 22 Yukon (25)

  • 24 Nova Scotia (11)

  • 27 Manitoba (6)

  • 36 B.C. (41)

  • 42 Northwest Territories (48)

  • 44 Nunavut (58)

Internationally, Ireland—now fourth place on the IAI list—held the PPI top spot for the fifth straight year. The Democratic Republic of Congo, a crucial supplier of copper and cobalt with significant gold and diamonds too, lurked just a few spots from last place at number 87 on the PPI. The DRC rated 51 on the IAI but 11 on the Best Practices Mineral Potential Index, which considers geology alone. Indonesia claimed first place on that index, although a nearly last-place Policy Perception standing held it to #35 on the IAI.

The 360 respondents spent a total of US$2.3 billion on exploration in 2017. Some 47% of replies came from exploration companies, another 29% from miners, 15% from consulting companies and 9% from other sources.

Download the Fraser Institute Annual Survey of Mining Companies 2017.

Kapuskasing Gold president/CEO Jon Armes discusses the company’s expansion into Newfoundland’s Gunners Cove area

February 22nd, 2018

…Read more

February 22nd, 2018

Bubbles everywhere GoldSeek
Five things investors should know about China this New Year Stockhouse
Is a new gold bull market on the horizon? Equities.com
Large speculators and the house of pain Streetwise Reports
Volatility in lithium: A gift or a curse? The Disruptive Discoveries Journal
China’s Qinghai targets mammoth lithium carbonate expansion Benchmark Mineral Intelligence
The potential for a resurgence in U.S. fluorspar production Industrial Minerals
Geology fundamentals—veins, dykes and sills Geology for Investors
As junior mining rebounds, so does “froth and hype,” says Rosseau Asset Management CEO Warren Irwin SmallCapPower