Wednesday 21st August 2019

Resource Clips


All posts by Ted Niles - Resource Clips

Grayd VP Exploration Hans Smit on $275M acquisition by Agnico-Eagle

September 20th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAgnico-Eagle Mines Ltd TSX:AEM and Grayd Resource Corp TSXV:GYD announced Agnico-Eagle’s acquisition of Grayd. Under the agreement Agnico-Eagle will offer $2.80 per share for all of Grayd’s outstanding common shares. The transaction is valued at approximately $275 million on a fully-diluted basis. The offer of $2.80 per share represents a premium of 65.7% to the volume-weighted average price of Grayd shares for the 20-day period ending Sept. 16, 2011.

Grayd shareholders may receive either $2.80 in cash or 0.04039 of an Agnico-Eagle share and $0.05 in cash, in each case subject to pro-ration. The maximum amount of cash payable by Agnico-Eagle will equal one-third of the total consideration (approximately $92 million). The maximum number of shares issuable by Agnico-Eagle will be approximately 2.7 million (based on the number of Grayd shares outstanding on Sept. 19, 2011 on a fully-diluted basis) or approximately 1.4% of Agnico-Eagle’s outstanding shares on a fully diluted basis.

Grayd owns La India Project in Sonora State, Mexico, which has a 2010 resource estimate of 26.8 million tonnes grading 0.88 g/t gold measured and indicated and 19.7 million tonnes grading 0.8 g/t gold inferred. Grayd recently discovered the Tarachi Gold Prospect 10 kilometres from La India.

We think it’s excellent risk reward for our shareholders, and we think it benefits Agnico too. They’re a bigger company, and they can put this into production faster and with more horsepower than we can—Hans Smit

VP of Exploration Hans Smit tells ResourceClips.com, “La India certainly attracted Agnico. We’ve got both a potentially near-development resource there and lots of blue-sky potential. La India really isn’t that far from their existing mine, Pinos Altos. They know how to operate in Mexico; they like Mexico. We’ve got a resource with a solid scoping study and the start of feasibility, as well as potential to increase. Many components of our scoping were better investigated than a normal scoping study.

“Right now we have a month to get all the circulars out, and then the offer’s open for 35 business days after that. There are ways to extend the deadline.

“The directors and officers including myself are very much for this,” Smit emphasizes. “We think it’s excellent risk reward for our shareholders, and we think it benefits Agnico too. They’re a bigger company, and they can put this into production faster and with more horsepower than we can. So far the response from shareholders has been very positive.

“Our stock went up quite a bit. It’s now just slightly below the offer price, so people are obviously figuring it’s going to go ahead. They’re not leaving much difference between the stock price and the offer price,” he points out.

“It will take at least a couple of months for this to go through, so Grayd will keep operating. As they take over, assuming it all goes ahead, we’re going to make sure the hand-off goes smoothly. We’re not just going to say, ‘See you later, we’re out of here.’ We put a lot of effort into this, so we’re definitely going to make sure Agnico is completely up on everything. They were very complimentary about the work to date. But we’ll make sure they’re starting from where we left off, not having to re-do stuff.

“I think it’s a great deal for the shareholders,” Smit says. Referring to the management and directors, he adds, “That’s what we are too. We don’t have a lot of perks or anything. We’re just happy shareholders like everyone else.”

View Company Profile

Contact:
Agnico-Eagle Mines Ltd
Investor Relations
416.947.1212

Grayd Resource Corp
Marc A. Prefontaine
President/CEO
or Daniel G. McIntyre
Manager of Corporate Communications
604.681.7446

by Greg Klein

Carpathian reports Romania Assays including 0.83 g/t Gold over 438m

September 20th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningCarpathian Gold Inc TSX:CPN announced results from its Rovina Valley project in west-central Romania. Highlights include

0.83 g/t gold over 438 metres
0.71 g/t over 360 metres
0.68 g/t over 351 metres
0.67 g/t over 239 metres

CEO Dino Titaro stated, “We are pleased with the results of these perimetre drill holes which not only suggest that the Ciresata porphyry mineralization is still open to the west and southwest but that the RVP is truly becoming a world class project. The ongoing results of the resource definition drilling continue to support our belief that the size of this deposit will increase, thus contributing significantly to the results of our RVP prefeasibility study which is in progress. The larger step-out target exploration drill program, planned to start by the end of September, will test the west and southwest extension of the Ciresata mineral system as well as other satellite targets.”

View Company Profile

Contact:
Mike O’Brien
Investor Relations
416.368.7744

or Shobana Thaya
Investor Relations
416.368.7744

by Ted Niles

Endeavour reports Mexico Assays of 14 g/t Gold, 448 g/t Silver over 6.3m

September 20th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningEndeavour Silver Corp TSX:EDR announced drill results from the Lucero South area of its Guanajuato Mines project in Guanajuato State, Mexico. Assays include

2.34 g/t gold and 338 g/t silver over 4.3 metres
5.8 g/t gold and 311 g/t silver over 3.4 metres
(including 19.6 g/t gold and 884 g/t silver over 0.5 metres)
2.9 g/t gold and 302 g/t silver over 4.4 metres
5.68 g/t gold and 252 g/t silver over 5.6 metres
14.02 g/t gold and 448 g/t silver over 6.3 metres
3.98 g/t gold and 515 g/t silver over 2.6 metres
7.73 g/t gold and 170 g/t silver over 19.3 metres
(including 32.5 g/t gold and 1,195 g/t silver over 0.7 metres)

VP Exploration Barry Devlin commented, “Our exploration drilling at Guanajuato continues to extend the high-grade, gold-silver mineralization over substantial vein widths to the north within the Daniela vein. We currently have two drill rigs working in Guanajuato to continue drilling the northern extent of Daniela, and we have multiple drill targets still remaining to test this year.”

View Company Profile

Contact:
Hugh Clarke
VP Corporate Communications
604.685.9775

by Ted Niles

Sulliden reports Peru Gold Assays up to 0.97 g/t over 111m

September 19th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningSulliden Gold Corporation Ltd TSX:SUE announced assays from the Central Corridor of its Shahuindo gold and silver project in Peru. Highlights include

0.97 g/t gold and 12.6 g/t silver over 111 metres
(including 1.87 g/t gold and 15.8 g/t silver over 22.5 metres)
1.44 g/t gold and 13.6 g/t silver over 33 metres
(including 2.1 g/t gold and 23.7 g/t silver over 17.1 metres)
0.84 g/t gold and 17.7 g/t silver over 64.5 metres
(including 1.49 g/t gold and 58.2 g/t silver over 16.5 metres)

VP Exploration Stéphane Amireault stated, “We are pleased with the ongoing success of our drilling program on the Shahuindo property. Our exploration activities continue to define new mineral resources in the Central Corridor and the deeper drill holes that we are conducting are helping us validate the geological model of Shahuindo with confirmed extensions of mineralization in the sulphides at depth. We look forward to ongoing exploration success as we continue to drill our priority exploration targets in the Central Corridor, including deep sulphides, as well as the North Corridor.”

View Company Profile

Read More about Sulliden Gold

Contact:
Scott Moore
VP Corporate Development
416.861.5903

or Caroline Arsenault
Investor Relations Manager
416.861.5805

by Ted Niles

Lydian reports Armenia Gold Assays including 2 g/t over 63m

September 19th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningLydian International Limited TSX:LYD announced assays from its Amulsar gold project in Armenia. Results include

1 g/t gold over 33 metres
1.9 g/t over 20 metres
2 g/t over 63 metres
1 g/t over 28 metres
1 g/t over 27 metres
1 g/t over 28 metres
1 g/t over 42 metres
1.7 g/t over 156 metres
1.1 g/t over 54 metres
1.3 g/t over 53 metres.

President/CEO Tim Coughlin commented, “Resource conversion and resource extension drilling is proceeding well at Amulsar with our better understanding of the geometry leading to more efficient resource conversion drilling and to exciting intersections that systematically extend the resource beyond its current limits. We have a new insight now into the structures that host gold grade and can see them extending for some distance and away from the current resource in all directions. Most importantly, with the deeper drill holes we are drilling this year it is very clear that in some mineralized structures the gold grade remains strong at depth, meaning that eventually a high-grade underground resource accessible via decline from the bottom of the proposed pit or from an adit on the hillside may need to be considered.”

View Company Profile

Contact:
Steve Smith
Investor Relations Manager
+44 (0)1534 715472
or +44 (0)7829 848420


by Ted Niles

African Gold President Mike Nikiforuk on Mali assays of 1.02 g/t gold over 52m

September 16th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAfrican Gold Group Inc TSXV:AGG announced results from its Kobada Gold Project in Mali. Highlights include 1.02 g/t gold over 52 metres (including 10.14 g/t over 1 metre), 3.08 g/t over 14 metres (including 25.44 g/t over 1 metre), 0.77 g/t over 47 metres, 1.56 g/t over 24 metres (including 17.52 g/t over 1 metre), 0.9 g/t over 35 metres and 6.99 g/t over 3 metres (including 19.08 g/t over 1 metre).

President/Director Mike Nikiforuk tells ResourceClips.com, “We think the news is most encouraging. The simple fact of the matter is, as we compile and analyze the results, we are seeing a corridor evolve that is approximately 100-linear metres in width. Our program is focused entirely on the oxide profile which averages 100-vertical metres from surface, and you can see that several of these holes have ended in mineralization, so our depth potential remains open. To move 600 metres and be in mineralization is most encouraging. As we move south and north along strike the object of the exercise is to ultimately expand the extent of mineralization which would impact on the extent of tonnage and therefore ounces.

“We want to emphasize that those lines that were drilled were roughly 200 metres apart, so this is a fairly wide step-out. We’re probing here. We don’t know if we’re going to be successful, but we know we’re spending money. We’re not going to drill on a tight grid and increase that burden without knowing that the mineralization is there. So it is exceedingly rewarding to still be encountering this extent of mineralization so far away from the known deposit. One of the things that we attempted to convey in the corrected release this morning was that those holes should not be viewed in isolation. They are part of a larger package of holes, and there will be further holes coming from that same region. However, we were getting a very clear sense that the market was getting frustrated with our lack of follow-up drill holes, so we put out what we had.

I think I can state with a great degree of confidence that we should be breaking ground not more than 30 months from today—Mike Nikiforuk

“When we started with this project in 2006,” Nikiforuk continues, “we had a known strike length of 1.1 kilometres. We just published a preliminary economic assessment July 13, and that resource is calculated over 1.7 kilometres: an increase of 600 metres. The focus shifted from the initial resource of a deeper fresh-rock resource to primarily an oxide resource. The first resource went to a depth of 260 vertical metres. This resource is now to a depth of only 160 metres. The reason we did that is because there are troughs within the deposit that are in oxide as deep as 160 metres. So we’re quite excited about the project’s potential to grow. We just have no doubt in our minds that the project has the ability to grow.

“We announced in our August 23 press release that the Minister of Mines for Mali has granted us a one-year extension to complete our feasibility study. Based on the positive PEA, the feasibility process is underway. Bumigeme Inc—the engineering group who did the PEA—has been engaged to prepare the feasibility. Roche Ltd is going to be involved in the preparation of the environmental study and the mine planning. Through the engineering groups we will be speaking with rePlan to commence the move into the village and things of that nature.

“There is a bit of a reprieve in the work initiative for weather conditions—which is an annual event that hits all of West Africa. We closed camp on July 27 for the annual rains. Our senior geologists will be departing Toronto October 19 to get back to Mali. So we will be resuming late October, early November, depending on access and so forth. We have a second drill rig planned to come on site in January 2012. One rig will be dedicated to geotechnical drilling, the other rig will continue with the exploration initiative. But the goal is to push this thing through feasibility and have that study on the minister’s desk on or about June 2012 with an application for an exploitation or mining license.

“I think I can state with a great degree of confidence that we should be breaking ground not more than 30 months from today. I would venture that we can improve on that; that is the goal. I just want to be reasonably conservative now, because it is a target that is a bit out there, and there are things that need to be done. But I think 30 months is at the outside of that time frame.”

Nikiforuk concludes, “One thing that’s incredibly important to the entire process moving forward is that we are contracting to bring in a pilot plant that will be capable of processing up to one tonne per hour. Our goal is to increase the diameter of the RC holes that we are drilling to generate up to 100 kilograms of material per metre drilled. So we will hive off two kilograms of that for lab analysis using LeachWELL as the protocol, and the balance of 98 kilograms will be processed through the pilot plant. We are contending that the larger the sample size—the larger the aliquot that’s being processed—the higher the grade. This is a nuggety deposit. All the work we’ve done to date clearly indicates that if you are analyzing a bigger sample, you have a better shot at capturing that nugget effect, and your grade will go up. When we announced the PEA we said this is a bulk-mining model, and everything in the mineralized corridor is going through the gravity plant, even that which is defined currently as waste. Because we do not believe it is waste.”

View Company Profile

Contact:
Michael A.J. Nikiforuk
President/Director
416.644.8892 x 101

by Greg Klein and Ted Niles

Gold Bullion President Frank Basa on Quebec assays of 1.21 g/t gold over 98m

September 16th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningGold Bullion Development Corp TSXV:GBB announced results from its Granada Property near Rouyn-Noranda, Quebec. Highlights include 1.21 g/t gold over 98 metres (including 2.34 g/t over 29.5 metres), 0.5 g/t over 183.5 metres (including 1.12 g/t over 45.5 metres), 0.41 g/t over 220.3 metres (including 1.06 g/t over 70.9 metres), 0.4 g/t over 224.5 metres (including 0.85 g/t over 46.8 metres) and 0.47 g/t over 180.9 metres (including 53.11 g/t over 0.5 metres).

President/CEO Frank Basa tells ResourceClips.com, “We’re just drilling for structure; we’re trying to find out the extent of this mineralized envelope or zone. We still haven’t found its full extent. We’re trying to define it. We originally started with 2,800 metres; then we went to 25,000 metres, then 50,000 metres. I think we’ll just have to keep increasing the drill program until we find the extent of it. We might have a very large low-grade deposit, and I think we’ll lower the grade by design and then follow it up with a higher-grade mine going underground. This was historically a high-grade mine operating in the 1930s and 1930s, about 10 grams a tonne.

There are a lot of mines like this on the Cadillac Trend, and we worked on one when I was with Agnico-Eagle; it became the Don LaRonde—Frank Basa

“We keep on getting these high-grade zones but they’re a metre wide, a metre and a half wide. So we think these two structures called 1 and 2, trending east and west, about 60 degrees from horizontal, and another called number 5, keep on recurring. Usually these things disappear after a while and don’t reappear, but these seem to be in place for about 1.2 kilometres—actually we’re up to 1.5 kilometres on strike length right now. The width is a little over half a kilometre.

“We still haven’t found bottom to the structure,” Basa reports. “We’re down to 450 vertical. There are a lot of mines like this on the Cadillac Trend, and we worked on one when I was with Agnico-Eagle; it became the Don LaRonde. Those were near-surface, low-grade and then became very high-grade mines at depth with base-metal components. We might have the same thing. It’s kind of early to say what we have, but we are checking for copper and nickel. They both showed up in our bulk samples.

“I’ll think we’ll be finishing up our current 50,000-metre program within the next two to three weeks. Originally we didn’t think we’d have this potential for a high-grade mine at depth because usually these veins are shallow; they disappear. But one of the people at GENIVAR [Gold Bullion's geological consultant] is very good at following these structures, and it appears we might have a significantly high-grade mine at depth.”

The project’s initial resource estimate is scheduled for release this fall. “We’re debating which way to go with it,” Basa says. “Early on we did a very large bulk sample, 142,000 tonnes. Historically, they said whatever you drilled, you mined and milled 35% higher. In other words if you drilled one gram, when you mined and milled and poured a bar, you got 1.35 grams out. So we did a very large bulk sample, and it’s actually over 100% higher. It really changes the grade. You’ll see a lot of our grades are quite low. This is done by design. We controlled the grade by the width of the mineralized envelope. In other words, you could have 200 metres running 0.3 or I could bring it down to 70 metres and it’s 1.5 grams. So we thought we’d see what we can do with a lower-grade deposit and look at the economics, knowing that even half a gram when it’s mined and milled might end up being a one-gram deposit.”

He adds, “We re-did the mine’s permits; we just completed a hydrological study and a baseline study. We’re doing all kinds of site clean-up. There was a lot of stuff left from the 1930s, so should somebody wish to take this over it’ll be permitted; there’ll be a resource, and it’ll be clean.

“The project seems to be leaning towards both surface and underground mining. We did a few deep holes down to 450 vertical and we hit these zones. To consider a deep mine, we’ll need special drill rigs to go down 1,000 or 2,000 metres vertical.”

Asked whether Gold Bullion would take the mine into production, Basa replied, “If it’s very large, I don’t see it. If it’s a certain size, we do have the skill set in house to do it right now. We’ve already spoken to three separate groups last November. They came to us; I told them it’s still premature. There’s only about 100,000 metres of drilling in total. If you look at Osisko [which holds the 6.2-million-ounce Canadian Malartic Deposit 65 kilometres from Gold Bullion’s Granada Project] and Detour Lake [Detour’s 11.4-million-ounce reserve, also in the Abitibi Greenstone Belt], they did about 800,000 or 900,000 metres of drilling.

“We’re just exploring basically. We’re just having a very conservative look at what we think might be there.”

View Company Profile

Contact:
Frank J. Basa
President/CEO
416.625.2342

or Roger Thomas
Director
613.292.2438

Gold Bullion Development Corp is a Resource Clips advertiser.

by Greg Klein

Channel CFO Cyrus Ameli on Burkina Faso gold assays of 1.99 g/t over 70m

September 15th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningChannel Resources Ltd TSXV:CHU announced assays from its Tanlouka Gold Project in Burkina Faso. Results include 1.99 g/t gold over 70 metres (including 6.47 g/t over 13.5 metres), 1.1 g/t over 108 metres (including 2.32 g/t over 20 metres), 0.92 g/t over 98.7 metres (including 1.15 g/t over 30 metres), 1.2 g/t over 52.5 metres (including 5.67 g/t over 4.5 metres) and 0.77 g/t over 64.5 metres (including 1.32 g/t over 11.3 metres).

CFO Cyrus Ameli tells ResourceClips.com, “Tanlouka is actually a property that Channel has had for quite a number of years. We gradually did all the ground proofing that was necessary to delineate some drill targets on it during the market difficulties leading up to last year. Last year, we managed to raise enough money to do a very short drill program. That was enough to make our discovery at a number of different areas on the Tanlouka project, but principally on the Mankarga 5 zone, which is our main focus right now. We’ve been following that up and have been quite fortunate in being able quickly to delineate what is, right now, a 1.85-kilometre-long strike length. We haven’t yet completed any of our geological modelling on it, but we’re fairly confident that we have between a 150- and 200-metre-long width on it as well. That’s something that we’re starting to put together with this transition to the core drilling, the first results of which we put out this morning.

“We’ve done a lot of RC drilling previously to delineate the deposit, and that is very effective in determining if it’s mineralized; it’s more difficult to pin down the specific geology downhole. So that’s what we’re accomplishing right now with the core drilling. We’re doing some twins—there are a few in this morning’s news release—and we’re doing some infill drilling as well within the recognized strike length. So far in the program, we’ve drilled 32 holes, and a couple of those are extension holes as well to the south, along strike of the deposit. So with the holes already drilled there’s the potential of extending it by about 500 metres should they start to pan out.

We’ve been quite fortunate in being able quickly to delineate what is, right now, a 1.85-kilometre-long strike length—Cyrus Ameli

“Today’s results are quite positive on a number of levels,” continues Ameli. “First and foremost, they’re bearing out what we encountered with the RC program. We did some comparative holes—a comparison of similar intersections—and it showed by and large an increase in the grade. In some cases, not a lot; in, I think, one case it actually went down. But it’s showing that the RC grades that we encountered have been accurate or have been underestimating to a certain extent the true grade. It also shows that we received some of the strongest grades in Hole 17, to the south. That shows us as that the deposit is indeed still open, that we can extend it further down to the south, past the existing 1.8-kilometre strike length. This is all basically feeding into a resource estimate that we’re getting underway for publication in, we expect at this point, 1Q 2012.

“Right now we’re about we’re about 7,000 metres into the 15,000-metre core program. We’ve got two rigs running—they’re on a small hiatus right now, because it’s the rainy season in Burkina Faso. But we’re trying to get the 15,000 metres done as quickly as possible to feed into the resource estimate. From there on it will be additional drill programs to expand on the resource to feed into a preliminary economic assessment; we don’t have a timeline for that at this point. We will also be looking at the additional ground at Tanlouka. The Mankarga 5 area is a very small part of the project, and we’ve identified a number of different target areas within the Mankarga zone, as well as further to the north on the property that really require some follow up, both in terms of further ground proofing as well as drilling. That’ll be happening over the next several months as well.

“With regard to production, we’re basically looking at the best value for the company and for our shareholders, of which we’re significant ones. So I can’t say at this point whether we want to go into production ourselves. Obviously that requires a very different focus and skill set within the management and personnel of the company.

“Burkina Faso is a mining-friendly country. We’ve received a lot of support from the government, also from the Canadian government’s presence there. As to the infrastructure around the project—you’re working in Africa, so the level of development there is lower than working in Western countries. But we do have road access—there’s a main highway that runs very close to our project and our base of operations. It’s very easy to work in that area. But we do have to build some of our own infrastructure in terms of the drilling camps and access to water supplies and so forth. But it’s all well in hand in terms of our team on the ground there, in terms of what we’ve been able to pull together in the last year.

“The project is moving forward very quickly, and we’re quite pleased with the progress and all the assistance of the local communities and government. There’s a strong drive in Burkina to advance the gold industry as quickly as possible and get as much production going as quickly as possible. We’ve been able to very quickly pin down a deposit that’s holding together very well. There’s still a lot of work to be done it, but we’re making very good progress on it, and we’ve got a lot of results coming down the pipeline.

“If you look at our share price over the last two years, we’ve come a long way through this discovery,” Ameli concludes. “At this point, as a management team and as explorationists, we believe that there is a lot of exploration potential on the project for expansion of the recognized mineralized zones. We’re heading towards our first resource estimate on the project with which we’ll be able to actually have some figures to make some direct comparisons to our peers. But when you look at a direct comparison of other players in Burkina at or around the same level of development as we are, I think we’re still not as well valued as some of our peers. And that’s part of our job as well: to get the story out to the market as quickly as possible.”

View Company Profile

Contact:
Colin McAleenan
President/CEO
604.684.7098

or Cyrus Ameli
CFO/VP of Corporate Affairs
604.684.7098

by Greg Klein and Ted Niles

American Manganese President Larry Reaugh on updated Artillery Peak resource

September 12th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAmerican Manganese Inc TSXV:AMY announced an updated 43-101 resource for its Artillery Peak Manganese Project in Mohave County, Arizona. The report estimates 226.46 million tonnes grading 2.99% for 14.92 billion pounds manganese indicated and 56.42 million tonnes grading 2.84% for 3.54 billion pounds manganese inferred.

President/CEO Larry Reaugh tells ResourceClips.com, “We’re certainly happy. Most of the drilling was infill drilling, and it’s moved up the indicated resource, a much more confident resource, by 123%. We did a little drilling outside the boundaries, and overall the entire resource went up just under 20%. We now have almost 15 billion pounds of manganese indicated, where we had less than half of that amount of indicated previously. And of course we’ve only touched 20% to 25% of the property, so we expect further drilling will bring more increases.

We now have almost 15 billion pounds of manganese indicated, where we had less than half of that amount of indicated previously. And of course we’ve only touched 20% to 25% of the property—Larry Reaugh

“We’re not drilling at the moment,” he points out. “We may go back this fall. It all depends on the market, but we are completing our pilot plant testing. That got underway around August 18, and I expect that’ll be complete sometime this weekend. Everything we’re seeing there is looking really good. So we’re not expecting any surprises.

“Wardrop [Engineering] is working on prefeasibility. They’ll take the results from the pilot plant; they’ll model a pit from the latest resource study; and they’ll deliver a report hopefully at the end of October or early November.

“We hope to be in production by mid-2014. So far there’s nothing to say that we can’t, but it all depends on permitting and a few other things. Market conditions are always a factor, and permitting is a major factor. But Arizona is the largest mining state in the US, and our project, compared to some of the big copper, copper-moly projects that have gone ahead recently in Arizona, is miniscule in size.”

Reaugh adds, “China controls about 98% of manganese production. They are shutting down some production for environmental and efficiency reasons, plus they’re starting to police the border between China and Vietnam to hopefully stop the smuggling to the European market. All that will decrease the amount of supply, and I expect demand will increase as rapidly as it has in the past, so I can foresee shortages that would lead to higher prices.

“It’s not a luxury item; it’s a necessity. You can’t make steel without manganese. If you want to get into specialty stainless steels, you need the metal. Certainly the aluminium industry is about a third of the entire demand, so it’s a necessity. There’s no substitute for it.

“Our big advantage, according to our PEA, is that we could be the lowest-cost producer in the world,” he explains. “Right now we’re certainly looking at well under half what it costs to produce in China, and it’s all to do with the process. That’s what the pilot plant is all about. That’s looking excellent, so I’m very happy.

“Continuous operation at the pilot plant has been excellent. It’s performed 100%. But we won’t have the report about metallurgical recoveries, what’s in the tailings, what we might be losing in the system or water efficiencies for at least another month.

“I think the pilot plant is probably the turning point in the company’s progression,” Reaugh emphasizes. “We’ve had a process that we worked in batches, and it has performed. But on a continuous basis, that’s a different story. Now we’ve been running material for several days on a continuous basis, and the results, like liquid-solid separation and all those things, are performing as we want them to. I think we’re going to remove the big hurdle which a lot of companies, some of our competitors and other mining companies, would look at as a potential risk. We’re going to eliminate that within a month.”

View Company Profile

Contact:
American Manganese Inc
604.531.9639

Disclaimer: American Manganese Inc is a Resource Clips advertiser.

by Greg Klein

Roxgold Director Al Fabbro on Burkina Faso gold assays of 62.8 g/t over 16m

September 8th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningRoxgold Inc TSXV:ROG in joint venture with Riverstone Resources Inc TSXV:RVS announced results from their Yaramoko Gold Permit in Burkina Faso. Highlights include 62.8 g/t gold over 16 metres (including 226.9 g/t over 3 metres) 17.2 g/t over 12 metres (including 32.3 g/t over 6 metres), 14.1 g/t over 9 metres (including 42.6 g/t over 2 metres), 39 g/t over 2 metres, 5.4 g/t over 12 metres and 5.2 g/t over 12 metres.

Roxgold can earn a 60% interest in Yaramoko by spending $1.5 million, paying Riverstone $100,000 and issuing Riverstone 360,000 shares over three years.

Roxgold Director Al Fabbro tells ResourceClips.com, “Riverstone had the property in 2007, but they were getting heat from the government for not doing any exploration. They didn’t have anything budgeted for exploring Yaramoko, Bissa West or Solna [three nearby concessions] in the 2010 to 2011 season, and they decided it would be prudent to joint-venture and get other people’s money to spend on these concessions. So we came to a deal with them last year.

We’re very happy with the results we released today. We think they’re exceptional. It’s the first time we’ve seen a grade like this in Burkina—Al Fabbro

“Officially, we’re project operator now, but we agreed they would operate until the end of the drill program, so they’re still actually operating. Once we resume in October or the end of September, we’ll be the operator.

“We don’t have the accounting finished yet, but we’ve made all of our earn-in commitments,” Fabbro adds. “We’ve spent about $1.8 million on Yaramoko. Our commitment was $1.5 million. We’ve made all the cash payments and issued all the shares, so once we get the accounting complete they will have to start contributing 40% of the budget.

“We’re very happy with the results we released today. We think they’re exceptional. It’s the first time we’ve seen a grade like this in Burkina. We know you can expect that in these Greenstone Belts. You get it in Canada; you get it in South America, other parts of Africa. They’re all basically the same geology, so there was no reason why we wouldn’t see it in Burkina too. Burkina is an underexplored country, so I think we’ll see more of these high-grade ore shoots there.”

Fabbro continues, “We like this country; the people are friendly. They’re quite poor, so they appreciate the business. My colleague [President/CEO Robert Sibthorpe] spent a lot of time in Africa, and he says it’s one of the top three countries he’s worked in.

“The infrastructure’s not bad. We can do anything in there. The only problem is the labs are a little taxed; we’re finding a 12-week lag. That’s why we shipped the last batch of core out to Canada.”

Fabbro concludes, “Again, we’re really excited about today’s results. We’ve got more to come; there are another 31 holes in the pipeline, and we think some of them could be as good as the ones we’ve already released. So we’re really anxious to see this go further. It’s very early days in this discovery; we’ve got lots of work to do, and we’re very optimistic.”

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Contact:
Roxgold Inc
Robert Sibthorpe
President/CEO
604.689.2599

Riverstone Resources Inc
Michael D. McInnis
President
604.801.5020
or Raju Wani
Investor Relations
403.240.0555
or Ron Cooper
Investor Relations
604.986.0112
or Don Mosher
Corporate Development
604.685.6465

by Greg Klein