Monday 27th March 2017

Resource Clips


All posts by Greg Klein - Resource Clips

March 24th, 2017

Lithium suppliers can’t keep up with skyrocketing demand Stockhouse
How solid are Canada’s big banks? GoldSeek
Fission’s Ross McElroy discusses Patterson Lake South Streetwise Reports
Anarcho Capital’s Jayant Bhandari blasts India SmallCapPower
PDAC 2017: Growing confidence seen in global minerals sector Industrial Minerals
Fed hikes key rate for second time in three months Equities.com
Mining methods: Block caving Geology for Investors
The Donald Trump/Elon Musk alliance Benchmark Mineral Intelligence
Lithium and the great reflation The Disruptive Discoveries Journal

Washington defence lobbyist Jeff Green watches rival Chinese and American assertion in the South China Sea with a sense of déjà vu

March 23rd, 2017

…Read more

March 23rd, 2017

How solid are Canada’s big banks? GoldSeek
Fission’s Ross McElroy discusses Patterson Lake South Streetwise Reports
Anarcho Capital’s Jayant Bhandari blasts India SmallCapPower
PDAC 2017: Growing confidence seen in global minerals sector Industrial Minerals
Fed hikes key rate for second time in three months Equities.com
Mining methods: Block caving Geology for Investors
Why commodities could be on the verge of a massive surge Stockhouse
The Donald Trump/Elon Musk alliance Benchmark Mineral Intelligence
Lithium and the great reflation The Disruptive Discoveries Journal

Pistol Bay expands Confederation Lake package, adding gold to base metals potential

March 22nd, 2017

by Greg Klein | March 22, 2017

The largest portfolio in western Ontario’s Confederation Lake greenstone belt just got larger as Pistol Bay Mining TSXV:PST increased its holdings to about 9,450 hectares. Two claim groups, Lucky 7 and Moth, cover “a 53-kilometre length of favourable volcanic geology,” the company stated.

Pistol Bay expands Confederation Lake package, adding gold to base metals potential

Neighbouring Pistol Bay’s Garnet Lake and Garnet East properties, the 640-hectare Lucky 7 hosts a copper-gold sulphide zone that was drilled in 1980 and 2002. A zone of massive to disseminated sulphides, the Hilltop copper-gold zone, was trenched but apparently never drilled. One of two Hilltop grab samples taken last year assayed 13.84 g/t gold and 3.21% copper.

Five kilometres from Lucky 7, the 1,360-hectare Moth claims underwent at least 14 holes between 1970 and the mid-1990s, revealing widespread hydrothermal alteration and numerous cases of zinc and/or copper mineralization, Pistol Bay stated. One interval graded 2.86 g/t gold over 0.3 metres. Located two kilometres from the former South Bay zinc-copper-silver mine, Moth sits near the Confederation belt’s most accessible area.

[Assays] suggest that we might be getting into an area with a potential for gold as well as base metals. This is something that hasn’t been widely recognized before in the Confederation Lake belt.—Charles Desjardins,
CEO of Pistol Bay Mining

Assays from both properties “suggest that we might be getting into an area with a potential for gold as well as base metals,” said CEO Charles Desjardins. “This is something that hasn’t been widely recognized before in the Confederation Lake belt.”

Together, the two properties will cost $72,000 and 2.3 million shares over three years. Pistol Bay may buy half of the 1.5% NSR for $400,000.

Last month the company acquired an historic data set for its recently optioned Joy North copper-zinc project. Mostly consisting of drill logs and ground geophysics maps, the info will go into a digital database including drill information, geology, assays, rock chemistry, petrology and geophysics. Now under consideration is an airborne EM and mag survey to penetrate deeper than earlier systems and better discriminate bedrock from overburden conductivity.

Pistol Bay’s overall strategy is to apply modern methods and a regional approach to properties that had previously been explored individually by different companies using earlier techniques.

The company also holds the C4, C5 and C6 uranium properties in Saskatchewan’s Athabasca Basin, where a Rio Tinto NYSE:RIO subsidiary advances towards a 100% interest.

On March 20 Pistol Bay closed a private placement totalling $548,436.

Read more about Pistol Bay Mining.

March 22nd, 2017

Don’t hide your gold coins where your thermostat can see GoldSeek
Anarcho Capital’s Jayant Bhandari expresses increasing pessimism about India SmallCapPower
PDAC 2017: Growing confidence seen in global minerals sector Industrial Minerals
Fed hikes key rate for second time in three months Equities.com
Mining methods: Block caving Geology for Investors
Why commodities could be on the verge of a massive surge Stockhouse
Investors are becoming bullish on commodities Streetwise Reports
The Donald Trump/Elon Musk alliance Benchmark Mineral Intelligence
Lithium and the great reflation The Disruptive Discoveries Journal

Update: BonTerra Resources’ high gold grades bring big money and Kinross to Urban Barry

March 21st, 2017

by Greg Klein | March 22, 2017

Update: On March 22 BonTerra Resources TSXV:BTR announced a $5.2-million private placement by Kinross Gold TSX:K, giving the global miner around 9.5% of BonTerra’s issued and outstanding shares. The parties expect to close by March 24. The news follows $15 million of BonTerra financings raised in February and March with strong participation from Sprott Capital Partners.

Kinross’ “entry into the Urban Barry gold camp further validates our ongoing progress and success at the Gladiator deposit and surrounding properties,” said BonTerra president/CEO Nav Dhaliwal. “The depth of technical expertise that Kinross offers will be of great value to BonTerra’s development going forward.”

The previous day BonTerra released assays up to 41 g/t gold over 6 metres, showing further progress as the company works to bring continuity to a 1.2-kilometre potential strike. Part of an effort to bridge the gap between the Gladiator deposit and the Rivage zone to the east, hole BA-17-05 encountered five zones, two of them new, as well as a western extension of the project’s Footwall zone. Highlights show:

  • 1.1 g/t gold over 12 metres, starting at 19 metres in downhole depth
BonTerra Resources’ Quebec Gladiator hits 41 g/t gold over 6 metres

Backed by over $20 million in recent financings,
BonTerra has three rigs busy at Gladiator.

  • 23.6 g/t over 5 metres, starting at 45 metres

  • 41 g/t over 6 metres, starting at 72 metres
  • (including 147.9 g/t over 1.6 metres)

  • 36.6 g/t over 1 metre, starting at 152 metres

  • 2.2 g/t over 6.8 metres, starting at 527 metres

True widths weren’t available.

Last year’s final assays came from the project’s East Side, with highlights showing:

BA-16-41

  • 5.5 g/t over 1.5 metres, starting at 786.5 metres

  • 2.3 g/t over 3 metres, starting at 831 metres

  • 6.8 g/t over 2.4 metres, starting at 944.6 metres

[Kinross’] entry into the Urban Barry gold camp further validates our ongoing progress and success at the Gladiator deposit and surrounding properties. The depth of technical expertise that Kinross offers will be of great value to BonTerra’s development going forward.—Nav Dhaliwal, president/CEO
of BonTerra Resources

BA-16-43

  • 1 g/t over 13.3 metres, starting at 726 metres

  • 2 g/t over 3 metres, starting at 816 metres

BA-16-49

  • 4.8 g/t over 3 metres, starting at 855 metres

Again, true widths weren’t available.

While additional assays are pending, three rigs focus on the Deep East zone, the Rivage Gap western side and Rivage Gap infill. The company has a fourth rig under consideration to explore the on-trend Coliseum property.

Last week BonTerra announced property acquisitions in the Urban Barry area play that’s home to Gladiator, as well as new turf near the company’s Larder Lake project in Ontario’s Cadillac-Larder Lake Break camp.

Read more about BonTerra Resources.

Aurvista Gold completes initial met tests for Abitibi project

March 21st, 2017

by Greg Klein | March 21, 2017

Aurvista Gold TSXV:AVA declared preliminary metallurgical results for its Douay deposit “in line with the recoveries achieved elsewhere in the Abitibi belt at projects with comparable mineralization styles and similar or lower gold grades.” Ten composite samples totalling 311 kilograms and averaging 1.89 g/t gold from seven zones underwent the tests.

Aurvista Gold completes initial met tests for Abitibi project

Visible gold enhances Aurvista’s
confidence in its Abitibi deposit.

With consistent results, gold recovery averaged 26% from gravity and 66% from flotation, for an average total of 92%. The correlation between gold and sulphur recovery suggested the metal’s association with sulphide minerals.

Cyanidation leaching of a gravity and flotation concentrate averaged 85% recovery. The process improved recovery of samples from the project’s North West zone, characterized by a felsic volcanic host rock, but other composites did better. Excluding the North West samples, recovery averaged 88.9% for material from mafic volcanic and porphyry host rocks.

Results suggest capex and opex advantages to gravity-flotation-leach over an entirely leach process. The company has further tests planned later this year to optimize results and lower costs.

Earlier this month Aurvista issued a clarifying news release with an amended resource estimate. Using a 0.5 g/t cutoff within a conceptual pit shell, Douay’s eight zones total:

  • inferred: 83.3 million tonnes averaging 1.05 g/t for 2.81 million gold ounces

Last month Aurvista released assays up to 2.2 g/t over 23.1 metres. Backed by $7.5 million raised in 2016, the company has about 30,000 metres of additional drilling planned this year.

Douay consists of 14,520 hectares along a 20-kilometre segment of the Casa Berardi deformation zone in Quebec’s Abitibi region. Aurvista holds a 100% interest in 13,310 hectares, a 90% interest in 20 hectares and a 75% interest in the 1,190-hectare North West zone, a JV with 25% partner SOQUEM, the mineral exploration branch of the provincial government’s Investissement Québec.

Read more about Aurvista Gold.

March 21st, 2017

Angst in America: Aimless men GoldSeek
Anarcho Capital’s Jayant Bhandari expresses increasing pessimism about India SmallCapPower
PDAC 2017: Growing confidence seen in global minerals sector Industrial Minerals
Fed hikes key rate for second time in three months Equities.com
Mining methods: Block caving Geology for Investors
Why commodities could be on the verge of a massive surge Stockhouse
Investors are becoming bullish on commodities Streetwise Reports
The Donald Trump/Elon Musk alliance Benchmark Mineral Intelligence
Lithium and the great reflation The Disruptive Discoveries Journal

Infographic visualizes the world’s deepest oil well

March 20th, 2017

Infographic by Fuel Fighter | text by Jeff Desjardins | posted with permission of Visual Capitalist | March 20, 2017

In the world’s deepest gold mine, workers venture four kilometres below the Earth’s surface to extract gold from a 0.8-metre-wide vein of ore.

While these depths are impressive, mining is limited by the frailty of the human body. Going much deeper would be incredibly dangerous, as limitations such as heat, humidity, logistics and potential seismic activity all become more intense.

Luckily, the oil industry does not have such human restrictions and drilling deep into the Earth’s crust is instead limited by a different set of circumstances—how deep can the machinery and technology go before the unfathomable heat and pressure renders it inoperable?

The world’s deepest oil well

This infographic comes to us from Fuel Fighter and it helps visualize the mind-boggling depths of the world’s deepest oil well, which is located in a remote corner of eastern Russia.

 

Visualizing the world’s deepest oil well

 

The world’s deepest oil well, known as Z-44 Chayvo, goes over 12 kilometres into the ground—equal to 15 Burj Khalifas (the tallest skyscraper) stacked on top of each other. That’s also equal to twice the record height for air balloon flight.

Perhaps more importantly to the operator, Exxon Neftegas Ltd, the wells on this shelf are expected to produce a total of 2.3 billion barrels of oil.

That’s some serious depth

But even before the Z-44 Chayvo Well and other holes like it were drilled on the eastern side of Russia, the famous Kola Superdeep Borehole set the record for drill depth.

Located in western Russia, this time just 10 kilometres from the border with Norway, the Kola Superdeep Borehole was rumoured to have been discontinued in 1992 because it actually reached “hell” itself. At its most extreme depth, the drill had pierced a super-hot cavity and scientists thought they heard the screams of damned souls.

All folklore aside, the Kola Superdeep Borehole is super interesting in its own right. It revealed many important things about our planet and it still holds the record for depth below the surface.

Read more about deep underground mining.

Emerita Resources signs LOI for Spanish zinc project

March 20th, 2017

by Greg Klein | March 20, 2017

Set to resume trading on March 22, Emerita Resources TSXV:EMO has due diligence planned for a VMS property in an infrastructure-rich region of southern Spain. The non-binding letter of intent concerns the 1,400-hectare Masa Valverde zinc project in Andalusia’s Iberian pyrite belt.

Emerita Resources signs LOI for Spanish zinc project

The property “hosts a classic, polymetallic, volcanogenic massive sulphide deposit that is locally enriched in gold and contains zinc-rich massive sulphide zones and a copper-rich zone as is characteristic for VMS deposits,” Emerita stated. “Drilling to date has outlined a sulphide body that is greater than 1,200 metres long and greater than 200 metres wide.” Mineralization remains open, the company added.

Subject to approvals and a 60-day due diligence period, the property would cost Emerita €4.5 million over two years plus a 2.5% NSR. The vendor also retains an offtake option.

Located in a region active in base metals mining, local infrastructure includes paved roads, rail, power, water and ports.

Following a March 10 halt, Emerita resumes trading on March 22.

The company also reiterated its commitment to another Andalusian project, the Aznalcollar zinc-lead-copper project. Emerita’s acquisition of the asset was confirmed in an October court ruling.

Additionally, the company holds the Sierra Alta gold project in northwestern Spain, Las Morras gold project in western Spain and the Falcon Litio MG lithium project in Brazil.