Thursday 27th October 2016

Resource Clips

All posts by Will Roy - Resource Clips

Repeating history

September 26th, 2012

“If the past is anything to go by,” graphite’s future is strong

By Greg Klein

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Although graphite lost considerable market interest last April, exploration and development continued through the summer. That brought some companies a corresponding uptick in share price. Standard Graphite TSXV:SGH ranks among those with an historical advantage—a project with non-43-101 drill results and a resource estimate that were filed away when China flooded the world with the carbon commodity. The reports are non-compliant but, if recent drilling can confirm them, they’ll help push progress along.

On September 26 Standard announced completion of 12 confirmation drill holes at its Mousseau East Graphite Deposit in southwestern Quebec.

Some 62 holes totalling 4,996 metres had been drilled previously by Graphicor. A 1992 non-43-101 resource estimate showed 800,000 tonnes grading 8% carbon, using a 3% cutoff. The resource went to a vertical depth of only 40 metres but Standard says graphite continues deeper and along strike. With Phase I now complete, drilling continues to potentially expand the resource beyond the historic numbers.

Graphite One Resources has been releasing assays from its property 65 kilometres north of Nome, Alaska.

But Standard’s not the only one showing an historical interest in Graphicor. On September 20 Lomiko Metals TSXV:LMR announced completion of 23 holes totalling 1,600 metres on its Quatre Milles East Flake Graphite Property, also in southwestern Quebec. The company hopes assays will confirm 1992 results from Graphicor, which found impressive, albeit non-43-101 grades including 8.07% carbon over 28.6 metres, 8.07% over 8.7 metres and 5.88% over 11.2 metres.

Along with the Quatre Milles West Property acquired last May, Lomiko’s two Quatre Milles claim blocks total 3,780 hectares.

Standard and Lomiko obviously hope assays will repeat history. But in the case of Focus Graphite TSXV:FMS, history seems to have repeated itself—or at least, to have been repeated—the wrong way.

On September 25 Focus was slapped with a Management Cease Trade Order. According to a company statement issued that day, the Ontario Securities Commission decided some of the company’s disclosures about its Lac Knife Project in northeastern Quebec were based on historic, non-43-101 data.

The company first announced the OSC review on September 10, when Focus referred to previously released “information on the project’s capital cost, mine life, estimates on yearly production, production costs per ton and revenue potential. Most of this information was taken from historical reports prepared by previous owners of the project before the introduction of NI 43-101 and should not be relied upon.”

The MCTO holds until the company files a compliant technical report. Focus plans to file a PEA in the coming weeks.

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A hesitant market

September 25th, 2012

Good news leaves investors unimpressed

By Greg Klein

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Impressive drill results can do wonders for an exploration company’s stock. Or they can leave people wondering. A darling of the junior resource sector, GoldQuest Mining TSXV:GQC announced more gold results on September 25. But if a share price bump was going to happen, it didn’t happen immediately.

Here are highlights from three holes at the Romero Gold-Copper Discovery of the company’s Las Tres Palmas Trend in the Dominican Republic.

  • 2.64 grams per tonne gold (uncut) or 2.5 g/t gold (top cut) and 0.33% copper over 122.7 metres
  • (including 6.35 g/t gold (uncut) or 5.97 g/t gold (top cut) and 0.53% copper over 44 metres)
  • 0.59 g/t gold and 0.24% copper over 110 metres
  • (including 1 g/t gold and 0.32% copper over 50 metres)
  • 0.42 g/t gold and 0.74% copper over 146.5 metres
  • (including 0.54 g/t gold and 1.47% copper over 72 metres)
  • 0.53 g/t gold and 0.16% copper over 71.7 metres
Good news leaves investors unimpressed

Drill core samples from SnipGold Corp’s Bronson Slope in northwestern B.C.

An arbitrary top cut of 50 g/t gold was used pending further geostatistical data. The top cut was applied to all results, but affected only one interval. True widths were not provided. Depths extend to 476 metres.

With these results, GoldQuest has now reported assays from 10 holes at Romero. Still to come are results for five additional holes. Drilling continues.

Two years ago GoldQuest stock traded just over $0.20. Its price gradually doubled but then sunk all the way to $0.04 last May 16. But despite the market downturn, May 23 began the company’s rapid recovery. That’s when assays from the Romero Discovery first hit the market. GoldQuest shot up to an August 21 high of $2.03 before dropping back. It climbed again to $2.00 on September 20, then fell to a September 24 close of $1.83. Despite the September 25 assays, however, the stock opened the day at $1.35 before a press time close of $1.23.

GoldQuest’s closest Tres Palmas neighbour is Unigold’s TSXV:UGD 22,616-hectare flagship Candelones Project. On September 13 Unigold released assays including

  • 0.71 g/t gold, 1.2 g/t silver, 0.09% copper and 0.42% zinc over 165.65 metres
  • (including 1.38 g/t gold, 4.1 g/t silver, 0.06% copper and 1.25% zinc over 27.65 metres)
  • 0.56 g/t gold, 1.8 g/t silver, 0.06% copper and 0.08% zinc over 89 metres
  • (including 1 g/t gold, 5.1 g/t silver, 0.11% copper and 0.21% zinc over 25 metres)
  • (including 1.3 g/t gold, 2.1 g/t silver and 0.22% copper over 10 metres)
  • 0.49 g/t gold, 0.6 g/t silver, 0.07% copper and 0.01% zinc over 28 metres
  • 0.62 g/t gold, 0.5 g/t silver, 0.09% copper and 0.06% zinc over 12 metres

The company estimates intervals to be true widths. No top cut was applied. Depths extend to 476 metres.

Unigold says the results support its belief that the Candelones Extension Zone remains open in three directions. Data from 36 holes has been released so far, with assays pending for seven more from the Candelones Extension. The company states that mineralization shows a strong correlation with IP chargeability anomalies.

On September 13 Unigold also closed a $5-million private placement of 11.2 million shares at $0.45.

The little country’s biggest mining project is Pueblo Viejo, which began pouring gold on August 14. With proven and probable reserves totalling 25.3 million gold ounces, the project is a 60%-40% JV between Barrick TSX:ABX and Goldcorp TSX:G. Barrick operates the mine, which is expected to reach commercial production in Q4 this year.

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Meet the juniors

September 24th, 2012

Toronto Resource Investment Conference 2012 links investors with opportunities

By Ted Niles

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When market uncertainty prevails, perspective is one of the most valuable (and, needless to say, scarce) commodities an investor can hope for. And there will be perspective in abundance at Cambridge House’s Toronto Resource Investment Conference 2012 on September 27 and 28.

“It’s an anomaly right now,” says Cambridge House Owner and Founder Joe Martin. “You have record-setting prices for most of the mineral ore that we’re looking for, and yet the prices of the stocks are extremely depressed. That’s primarily because of the lack of available capital as a consequence of the world crisis, particularly in Europe. Looking at gold: companies are profitable at $800 gold, and yet we have clients who have more cash in the bank than their market cap. So it’s been a very tough period for these companies to raise money. You’re seeing financings at 10, 15, 20 cents when they should be in the 60-, 70-, 80-cent range.”

Martin notes that the last three months were particularly brutal for junior mining stocks, but he believes that August saw the bottom of the market. “We went through a very depressing summer, but the tempo of my sales force and the attitude of my whole staff in the last three weeks has been very upbeat. And we’re a good barometer of that, because we’re in touch with a wide variety of the exploration people. If you look at the TSX Venture index you’ll see that we’ve turned the corner.”

Toronto Resource Investment Conference 2012 links investors with opportunities

Investors, miners and explorers will converge on Toronto for one of the industry’s biggest annual events.

That said, it’s some indication of the strength of a number of Cambridge House’s exhibitors that they have remained reasonably unscathed despite the length and sharpness of this particular bear market’s claws. Most remarkable would be Argonaut Gold TSX:AR, whose share price has increased over 260% during the last two years, reporting in August record revenue and production from its La Colorada and El Castillo mines in Mexico. Not quite so dramatic but still noteworthy are GoldQuest Mining TSXV:GQC, Great Panther Silver TSX:GPR, Eurasian Minerals TSXV:EMX, Comstock Metals TSXV:CSL and Balmoral Resources TSXV:BAR, who have all performed well in recent months.

Martin says there is no shortage of opportunities for juniors moving forward. Consider that half the world’s population is living in countries whose economies are growing at 6% per year. Note too that central banks increased their gold purchases 571% in 2011. “Ore bodies run out, and it’s primarily up to the Canadian juniors to find new ones,” he declares. “Canadian juniors are very adept at doing this. Right now the big thing is the rush for battery-technology metals—lithium, graphite and, coming down the pipe, zinc. It’s the Canadian juniors that are meeting this demand.”

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Looking back at last week

September 21st, 2012

A round-up of exploration and mining news for September 15 to 21, 2012

By Greg Klein

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The elephant in B.C. boardrooms
On Thursday the long, long process of advancing Taseko Mines’ TSX:TKO $1.1-billion New Prosperity Gold-Copper Project crept forward—or, according to the company, reached a “major milestone”—when Taseko formally filed its Environmental Impact Statement to the Canadian Environmental Assessment Authority. A three-member panel will review the submission and conduct public hearings over the next year.

Although the project passed a British Columbia environmental review, a federal panel rejected it in November 2010, condemning a plan to convert Fish Lake into a tailings dump. Taseko then came up with a $300-million plan to preserve the 118-hectare lake by positioning the tailings two kilometres north.

In a Vancouver Sun op-ed on Friday, Taseko President/CEO Russell Hallbauer sells the project’s economic benefits. But no one in the industry seems willing to speak openly about the previous CEAA decision, which often used subjective and non-environmental reasoning to pan the proposal. The report described Fish Lake as “a place of spiritual power and healing” for the Tsilhqot’in native band, concluding that the mine would have “a significant adverse effect” on established native rights, potential rights, potential title, and traditional and cultural uses.

The controversy highlights the uncertainty resource companies face in B.C. In September 2011 Stewart Phillip, president of the Union of B.C. Indian Chiefs, stated Taseko’s plan “will trigger a province-wide and nation-wide backlash that will severely jeopardize relationships between First Nations and the mining industry for years to come.”

Read more about New Prosperity here, here and here.

Young miners make more than Harvard grads
“Harvard University’s graduates are earning less than those from the South Dakota School of Mines and Technology,” Bloomberg reported on Tuesday. The story adds, “Demand for mining-school graduates is exceptional in the U.S., where the unemployment rate for 20- to 24-year-olds with bachelor’s degrees was 11.8% in July.” The U.S. will need some 78,000 additional mining personnel by 2019 to replace retirees, while Australia will need 1,700 mine engineers, 3,000 geoscientists and 36,000 others by 2015, the report states.

A round-up of exploration and mining news

Last March Aurizon Mines TSX:ARZ President/CEO George Paspalas told ResourceClips, “Recruiting new employees is, I believe, one of the biggest issues facing the industry globally. A lot of development and operational plans hinge on the human resource, not the resource in the ground. There’s a lot of very experienced people coming up to retirement. There’s a gap where people didn’t go into the industry when metal prices were depressed in the mid- and late-1990s. That’s the age group from about 35 or 40 years to about 50 years. The industry was depressed, and the dot-com boom was on, so people wanted to get into the sexy stuff.”

Lack of expertise can subject projects to delays and disappointments. Bloomberg quotes Robin Adams, a managing consultant with research company CRU, who attributes setbacks to “haste, inexperience, lack of properly done mining studies [which reflect] the fact that mining is missing a generation. They are learning though, so that problem is going to go away in a few years.”

Honoured and pleased, despite the misunderstanding
For a few days this week Belo Sun Mining’s TSX:BSX stock hit enough turbulence to induce airsickness. The cause, according to President/CEO Mark Eaton, was a misunderstanding about what Brazilian public prosecutors mean by an “investigation.” As he suggested to the Globe and Mail, it’s more of a routine inquiry. Even if someone just wants to build “a cow shed, the federal prosecutor has to open an ‘investigation’,” Eaton told the G&M.

But when news reports stated that a federal prosecutor was “investigating” the company’s Volta Grande Gold Project, the misunderstanding almost sank a $50-million private placement.

Belo Sun opened at $1.50 on Monday, and that afternoon the company announced a bought deal of 35.72 million shares at $1.40. The stock closed that day at $1.54.

Come Tuesday morning, however, it opened at $1.40 and plummeted to $1.27, before closing at $1.37. That evening the company tried to clear things up: “The federal Public Prosecutor Office in the state of Pará opens an investigation proceeding for each and every environmental licensing process in the state. The investigation proceeding regarding the project does not imply any irregularity or particular concern regarding the environmental licensing process for the project.”

About 28 minutes later, the company cancelled the private placement.

By Wednesday the stock opened a bit higher at $1.40. That afternoon the company re-announced the private placement on the previous terms, including a share price of $1.40. The share closed the day at $1.39.

In his Tuesday statement, Eaton said he was “honoured and pleased with the participation and interest of the Public Prosecutor Office.” Should all go well, Volta Grande will begin its feasibility study in Q1 2013.

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Not without risk

September 21st, 2012

Mongolia offers huge resources but with political challenges

By Greg Klein

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Reputedly this company is used to weathering Asian storms. So a long wait that has just ended for Centerra Gold TSX:CG in Mongolia must have been borne with patience. On September 19 the company received approval to resume heap leap operations at its Boroo Mine. The facility operated from June 2008 to April 2009, when a temporary permit expired. Beginning in December, recommissioning should add around 2,000 gold ounces a month to the mill, which has been processing stockpiled ore since the mine closed in November 2010.

The news shot Centerra’s stock from a September 19 open of $10.40 to a high of $12.08 before closing at $11.95.

The $2.75-billion-cap company shows dogged determination in a country where giants tread carefully due to government interference. The Boroo mill was also intended to handle ore from Gatsuurt, just 55 kilometres away. Centerra was ready to develop an open-pit gold mine there after the Mongolian government approved a feasibility study in March 2008. The following year, however, the government brought in new environmental legislation that blocked the mine.

Mongolia offers huge resources but with political challenges

Tremendous mineral resources could bring big changes to Mongolian society.

Last November Centerra VP of Investor Relations John Pearson told ResourceClips, “The site is completely prepared. We have the admin buildings on site, the trucks fleet has been purchased, the road connecting the Gatsuurt mine site to the Boroo mill is complete. Everything is ready to go. Until the government and parliament resolve the issues with that particular piece of legislation, Gatsuurt is currently on hold waiting the final approval.”

According to an estimate completed in December 2010, Gatsuurt has probable reserves of 1.5 million gold ounces, measured and indicated resources of 426,000 ounces and inferred resources of 491,000 ounces.

But the company faces greater obstacles at its flagship Kumtor Mine in the Kyrgyz Republic, on China’s western border. Last month Centerra blamed a Q2 loss of $54.6 million largely on Kumtor’s “abnormal mining costs.” Over the last several months the operation has been hit by an illegal roadblock, a strike and technical problems, as well as government threats to revise its operating licence, change its tax regimen and increase the government’s own interest. The Kyrgyz Republic already holds 33% of the project. Centerra is the country’s largest investor.

Yet the company’s ability to overcome challenges hasn’t gone unnoticed.

Last June the Financial Post quoted Scotia Capital analyst Trevor Turnbull calling Centerra an “unusual buying opportunity.” He added, “Centerra is used to weathering political storms, including the 2010 coup d’e'tat, without impact to its Kumtor Mine, which has been in continuous operation since 1997 and a major component of the economy.”

Getting back to Mongolia, on September 19 Centerra also announced receipt of a mining licence for its Altan Tsagaan Ovoo Project, 800 kilometres from Boroo. ATO’s December 2011 resource shows 824,000 gold ounces measured and indicated, and 26,000 inferred. Exploration drilling continues.

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Geologist faces jail

September 18th, 2012

QP admits fraud, prosecutor wants 10 years

By Greg Klein

The former head of gold exploration company Southwestern Resources faces a possible 10-year prison term, the Vancouver Sun reports. John Gregory Paterson, who was the company’s president, CEO and largest shareholder, pleaded guilty to four counts of fraud involving false assay results from the Boka Gold Project in China. A sentencing hearing is underway in Vancouver.

But the process of justice has been slow. As Sun columnist David Baines reports, Paterson scammed shareholders from May 2003 to February 2007, when he issued 25 press releases reporting 446 assay results—of which 433 were fictional. Paterson was the qualified person who signed off on the phoney numbers.

He managed to continue his fraud during a 2005 PEA. His numbers were used to estimate a resource of 966,000 gold ounces indicated and four million ounces inferred.

QP admits fraud, prosecutor wants 10 years

A multi-million-dollar fraud involving false drill results could bring the former head of Southwestern Resources a lengthy prison term.

It was only in 2007 that Southwestern executives and board members became suspicious about persistent delays in completing a pre-feas. In June of that year they launched an internal investigation. Paterson resigned. A delegation to China failed to locate Project Manager John Zhang, who received half a million dollars from Paterson.

The Crown prosecutor told court that Southwestern paid its CEO over $1 million a year from 2003 to 2005, rising to over $2 million in 2006. In his final year Paterson made $372,500 in salary and severance. He gained another $5.6 million by trading Southwestern shares through five brokerage accounts, the Crown added.

A class action lawsuit was settled in September 2008 for $15.52 million. The company put up $8.32 million while Paterson and his wife paid $7.2 million.

In June 2009 the B.C. Securities Commission slapped Paterson with a lifetime ban on trading, acting as a QP or engaging in IR activities. Shortly afterwards the Australasian Institute of Mining and Metallurgy revoked his membership.

The commission stated that due to the lawsuit, Paterson “is unable to pay the approximately $3.5 million to the BCSC that would have been required in this matter.”

The BCSC also found that on July 16, 2007 Paterson dumped 50,000 Southwestern shares at $5.96, knowing the company was about to come clean. When the news broke two days later, Southwestern plunged to $2.90, reducing its market cap by $157.7 million.

In May 2009 Hochschild Mining HCHDF, a JV partner with Southwestern in a Peruvian gold-silver project, took over the company for $0.50 a share. The deal totalled $22.5 million.

RCMP laid charges in December 2010 and the case came to court last September 17.

The sentencing hearing continues in Vancouver where, the Sun reports, Paterson is expected to dispute Crown statements about the extent of damage his fraud inflicted.

Burkina bulletins

September 18th, 2012

A steady stream of gold news flows from west Africa

By Greg Klein

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A poor country rich in gold. That contradiction might someday correct itself if mining can improve life for the people of Burkina Faso. Over the last six years several Canadian companies have explored its potential, among them Riverstone Resources TSXV:RVS. (Update: On February 25, 2013, Riverstone Resources Inc began trading as True Gold Mining Inc TSXV:TGM.) In what’s almost a weekly event, the company announced drill results September 17 from its Karma Gold Project.

Assay highlights from the Kao Deposit include

  • 9.5 grams per tonne gold over 12 metres
  • (including 33.6 g/t over 2 metres)
  • 2.02 g/t over 30 metres
  • (including 2.54 g/t over 18 metres)
  • 2.97 g/t over 14 metres
  • 13.45 g/t over 2 metres
  • 1.73 g/t over 12 metres
  • 3.21 g/t over 6 metres
  • 3.19 g/t over 4 metres
A steady stream of gold news flows from west Africa

Adversity notwithstanding, wide-ranging gold exploration
continues in Burkina Faso.

True widths are estimated between 90% and 100%. Depths extend to 260 metres, but most were less than 54 metres. The company states that its resource update, scheduled for release later this month, is expected to show an increase in more easily recoverable oxide resources.

Karma’s current estimate, issued last January, shows an indicated resource of 54.1 million tonnes grading 1.02 g/t gold for 1.77 million gold ounces and an inferred resource of 37.4 million tonnes grading 0.8 g/t for 959,000 ounces. Over 80% of the resource falls within five Whittle open pit shells. Over 85,000 metres of additional drilling will be incorporated into this month’s update.

On September 17 the company also filed the technical report for Karma’s PEA, which was announced last month. The study projects an initial capex of $125 million, which might be cut to $96 million through contract mining. The study also shows a pre-tax net present value of $271 million and a 47% internal rate of return, or an after-tax NPV of $192 million and a 37% IRR. Payback is estimated at two years.

The study examined three processing options, favouring a heap leach operation that would process three million tonnes of oxide and transition mineralization annually to produce 70,000 to 90,000 gold ounces a year over a 10-year life. Cash costs would come to $525 an ounce. Calculations are based on a gold price of $1,350 an ounce.

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Just in from Colombia

September 15th, 2012

A flurry of gold-silver news from the northeast

By Greg Klein

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Since miners rediscovered Colombia a decade ago, explorers have adapted to what are now well-known challenges ranging from environmental concerns and indigenous rights to security. A flurry of recent news from neighbouring projects in the country’s northeastern Vetas-California-Surata gold region shows that interest continues unabated.

On September 14 Galway Resources Ltd TSXV:GWY announced assays from its Vetas Gold-Silver Project, location of the 400-year-old El Volcan Mine.

Underground drilling highlights include

A flurry of gold-silver news from the northeast

Visible gold keeps explorers coming back
to Colombia’s historic mining regions.

  • 157.4 grams per tonne gold and 76.9 g/t silver over 4.15 metres
    (including 470.2 g/t gold and 142 g/t silver over 1.33 metres)
  • 13.5 g/t gold and 129.1 g/t silver over 4.65 metres
    (including 25.6 g/t gold and 18.3 g/t silver over 1.38 metres)
  • 19.5 g/t gold and 16 g/t silver over 1.29 metres
  • 5.7 g/t gold and 42.4 g/t silver over 4.14 metres
    (including 12.8 g/t gold and 116 g/t silver over 1 metre)
  • 5.2 g/t gold over 3.9 metres
    (including 10.7 g/t gold over 1.36 metres)

True widths for underground holes reported so far range from 32% to 92%. A lower cutoff of 2 g/t gold was used for underground holes but no upper cutoff was applied. Intercept depths weren’t provided but the company states it has found gold mineralization nearly 700 metres below the lowest level of the historic mine, to 860 metres below surface.

Surface drilling highlights include

  • 3.6 g/t gold over 3.05 metres
    (including 7.7 g/t gold over 0.92 metres)
  • 4.2 g/t gold over 2.56 metres
    (including 5.3 g/t gold over 1.4 metres)
  • 6.1 g/t gold over 1.31 metres
  • 2.9 g/t gold over 1.43 metres
  • 4 g/t gold over 1 metre

True widths were not available. A cutoff of 0.5 g/t gold was applied to surface holes.

In a statement issued with the results, President/CEO Robert Hinchcliffe said the project might “ultimately be amenable to underground bulk mining methods.”

The company states that 31 of 35 underground holes reported since June 2011 have had at least one result over 10 g/t gold, with a total of 108 such assays. Assays of at least 5 g/t have resulted 171 times.

Galway says its first surface drill hole, reported last March, appears to have intersected the same structure that CB Gold TSXV:CBJ discovered 160 metres away, suggesting CBJ’s Real Minera stockwork zone connects both properties. Although the Galway surface holes reported above were collared on the same platform used for the March results, they were oriented in the opposite direction. Assays fell short of the previous surface holes but the company emphasizes that all recent holes show multiple mineralized intervals over 2 g/t gold. Assays are pending for 11 more surface holes.

Real Minera continues to bear fruit for CB Gold too, as results released September 4 show. Highlights include

  • 78.14 g/t gold (uncut) or 20.94 g/t (using a 60 g/t topcut) or 5.58 g/t (using a 15 g/t topcut) over 3.31 metres
    (including 227.56 g/t (uncut) or 60 g/t (60 g/t topcut) or 15 g/t (15 g/t topcut) over 1.13 metres)
  • 17.29 g/t (uncut) or 5.67 g/t (60 g/t topcut) or 2.68 g/t (15 g/t topcut) over 15.5 metres
    (including 52.05 g/t (uncut) or 16.8 g/t (60 g/t topcut) or 7.73 g/t (15 g/t topcut) over 5.11 metres)
  • 16.97 g/t or 7.23 g/t (15 g/t topcut) over 2.27 metres
    (including 35.86 g/t or 15 g/t (15 g/t topcut) over 1.06 metres)
  • 11.55 g/t or 8.63 g/t (15 g/t topcut) over 2.27 metres
    (including 20.15 g/t or 15 g/t (15 g/t topcut) over 1.29 metres)
  • 7.36 g/t gold or 4.85 g/t gold (15 g/t topcut) over 4.85 metres
    (including 9.02 g/t gold or 6.31 g/t gold (15 g/t topcut) over 3.89 metres)

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High gold grades

September 13th, 2012

Results from Golden Band’s Roy Lloyd Mine in Saskatchewan

By Greg Klein

Golden Band Resources Inc TSXV:GBN today released assays from its Roy Lloyd Mine in central Saskatchewan. The work is part of La Ronge Gold Project, which includes two operating mines and a near-term goal of bringing three additional deposits into commercial production.

All intercepts from today’s results are true widths. Highlights from shallow drilling on Roy Lloyd’s Bingo Structure include

Results from Golden Band’s Roy Lloyd Mine in Sask

Chairman/Director Ronald Netolitzky at the company’s first gold pour.

  • 15.06 grams per tonne gold over 3.3 metres
  • 9.15 g/t over 3.36 metres
  • 3.17 g/t over 7.56 metres
  • 2.88 g/t over 1.76 metres
  • 2.52 g/t over 1.07 metres
  • 2.31 g/t over 0.8 metres

Depths extend to 34 metres.

Bingo Structure deep-drilling from surface shows results including

  • 19.8 g/t gold over 11.73 metres(including 33.29 g/t over 5.93 metres)
    (including 99.13 g/t over 0.93 metres)
    (including 25.73 g/t over 2.07 metres)
  • 10.61 g/t over 2.13 metres
  • 4.95 g/t over 4.15 metres
  • 15.68 g/t over 1.89 metres

Depths extend to 418 metres.

An underground hole announced September 5 showed

  • 66.85 g/t over 5.32 metres(including 80.12 g/t over 4.42 metres)
    (including 128.37 g/t over 1.73 metres)

The company states that shallow drilling focused on defining near-surface open-pit mineralization for a surface mining operation. Deep drilling was conducted for mine planning and to explore continuity of the Roy Lloyd underground mine mineralization to depth.

The company adds that drilling confirms gold mineralization both laterally to the north and deeper within the Bingo Structure. With confirmation of near-surface mineralization, a small surface mine program is underway. Within the drilling area, Golden Band hopes to upgrade the underground resource inferred category to measured and indicated resources.

Golden Band’s La Ronge Gold Project is a past-producing gold camp with 12 known deposits. Commercial production from Roy Lloyd began in April 2011, with more limited production from the EP open pit starting in December 2011. Development of the Golden Heart open pit is scheduled for completion in mid-2013. Underground development and surface drilling are underway at the former Komis Mine.

The company’s near-term goal includes commercial production of its Bingo, Komis and EP deposits, with eventual production of at least 75,000 gold ounces over a 10-year life. Golden Band’s 700 tpd Jolu Mill sits within 75 kilometres of all the company’s deposits.

The Quebec election

September 5th, 2012

Does the new regime signal a new regimen for mining?

by Greg Klein

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Providence and politics have made Quebec one of the world’s most favourable mining jurisdictions. But yesterday’s provincial election might cause concern to industry players and investors alike. The new Parti Quebecois government wants to scale back a northern infrastructure program, curtail foreign takeovers and introduce an Australian-style royalty scheme.

The big question is whether the PQ can gain needed support for its agenda. The separatist party won 54 seats, nine shy of a majority government. The Liberals came close with 50 seats but lost their nine-year hold on power. A new party, Coalition Avenir Quebec (Coalition for Quebec’s Future), took the spoiler’s slot with 19 seats while Quebec Solidaire picked up just two seats.

Outside the province, media campaign coverage focused on the PQ’s dream of forming an independent country. Election night was marred by a man in a housecoat who shot two people at the PQ victory celebration, killing one of them.

Does the new regime signal a new regimen for mining?

Does the new regime signal a new regimen for mining?

Mineral exploration and mining figured strongly in the month-long election campaign.

The separatist issue, always present in Quebec, doesn’t look especially prominent now. During the campaign PQ leader Pauline Marois stated she won’t call a sovereignty referendum unless she’s sure of success. Two August polls showed support for separatism dropping from 40% to 28%, a far cry from the 49.4% who voted to leave Canada in a 1995 referendum. But Marois, a political veteran with 31 years’ experience who held 14 cabinet posts in the PQ government that ruled from 1994 to 2003, has other means of pushing the party’s left-wing nationalist policies.

She wants to “redo” Plan Nord. The massive northern infrastructure program was intended to be former Liberal premier Jean Charest’s legacy. Charest talked of spending $2.1 billion of public money on an economic dynamo that would attract a total of $80 billion in private and public investment over 25 years, creating 20,000 jobs in mining, hydro-electricity, forestry and tourism above the 49th parallel, an area covering 72% of Quebec’s territory. Marois, while not opposing Plan Nord, says $2.1 billion constitutes a giveaway to private companies.

If there were giveaways in Charest’s plan, however, they flowed in different directions. The Liberals’ Bill 65 would have designated 12% of the land north of 49 exempt from development by 2015. That percentage would have increased to 20% by 2020 and 50% by 2036. Quebec’s National Assembly didn’t find time to vote on the bill before the election.

A key economic plank of the PQ platform is Marois’ tax and royalty regimen. She wants a 5% royalty on all minerals extracted, regardless of a company’s profit. And speaking of profits, she’s following the Down Under example by proposing a 30% tax on all mining profits above 8%, which she estimates would extract an additional $388 million from miners over five years.

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