Saturday 18th August 2018

Resource Clips


Posts tagged ‘Agnico Eagle Mines Ltd (AEM)’

Agnico Eagle CEO Sean Boyd remarks on the Arctic imagery of a collector’s coin minted from Nunavut gold

July 30th, 2018

…Read more

Canada’s six biggest miners boost exploration spending by 31%: PwC

July 5th, 2018

by Greg Klein | July 5, 2018

Canada’s six biggest miners boost exploration spending by 31%: PwC

(Photos: PricewaterhouseCoopers)

 

The half-dozen Canadian companies among the world’s top 40 miners increased exploration expenditures last year at twice the rate of the others. That info comes from the upbeat results found in PricewaterhouseCoopers’ Mine 2018, a study of the planet’s 40 biggest companies by market cap. The six Canadians spent C$620 million looking for new resources last year, compared with C$473 million in 2016. The report forecasts continued improvement throughout the current year.

Globally, exploration rose 15% in 2017 to US$8.4 billion, according to S&P Global Market Intelligence figures cited by PwC.

Not so impressive, though, was the equity raised on three key mining markets, which fell $1.7 billion last year for the industry as a whole. Especially hard-hit was Toronto, which plunged 36%. Australia slipped 9%, while London actually jumped 47%. However this year’s Q1 investing “reveals that activity in Toronto and Australia is starting to pick up and signals a renewed interest in exploration and early development projects.”

Overall, higher commodity prices propelled the top 40 companies’ revenues 23% to about US$600 billion, with cost-saving efficiencies contributing to a “sharp increase in profits.” The report sees several years of continued growth as global annual GDP increases about 4% for the next five years.

Meanwhile market caps for the top 40 soared 30% last year to US$926 billion.

The top 40 companies’ capex outlay, however, floundered at its lowest level in 10 years. But the authors “expect next year’s level to increase as companies press ahead with long-term strategies, be it growth through greenfield or brownfield investments, or new acquisitions.”

Should that investment fail to materialize, the report asks, “will there be a temptation to spend without sufficient capital discipline when demand outstrips supply?”

At a number of points PwC admonishes miners not to “give in to the impulses” engendered by the previous boom: “Perhaps the most significant risk currently facing the world’s top miners is the temptation to acquire mineral-producing assets in order to meet rising demand. In the previous cycle, many miners eschewed capital discipline in the pursuit of higher production levels, which set them up to suffer when the downturn came.”

Canadians among the 2017 top 40 consisted of the Potash Corporation of Saskatchewan (since merged with Agrium to create Nutrien TSX:NTR) in 13th place, Barrick Gold TSX:ABX (14th), Teck Resources TSX:TECK.A and TSX:TECK.B (16th), Goldcorp TSX:G (25th), Agnico Eagle Mines TSX:AEM (26th) and First Quantum Minerals TSX:FM (30th).

The top five companies, holding a top-heavy 47% of the top-40 combined market cap, were BHP Billiton NYSE:BHP, Rio Tinto NYSE:RIO, Glencore, China Shenhua Energy and Vale NYSE:VALE.

In addition to exploration spending, the half-dozen Canadian companies also got special mention for workplace safety, as “world leaders in digital transformation” and for boardroom diversity in which “women make up 25% of directors among Canadian miners, compared to 19% among their global peers.”

Download PwC’s Mine 2018 report.

More than just money

June 27th, 2018

The Royal Canadian Mint breaks the numismatic mould to cast creative coins

by Greg Klein

The Royal Canadian Mint breaks the numismatic mould to cast creative coins

Although often extending the bounds of traditional coinage, the Mint acknowledged its heritage
with a Colonial Currency of the Atlantic Provinces set that mimics the condition of used currency.
(All photos: Royal Canadian Mint)

 

Money’s appeal couldn’t be more obvious, yet coins specifically bring to mind values intrinsic, speculative or esthetic. By no means neglecting the first two, the Royal Canadian Mint has been emphasizing the third, and in ways increasingly innovative. Issuing over 200 such products each year, its “coins” have become more and more exotic. That shows in two recent releases, which can be said to source their materials from the end of the Earth and beyond.

“As a commercial Crown corporation, we don’t rely on any taxpayer funding to finance our operations,” explains communications officer Alex Reeves. “So we need to finance ourselves and that has led us to a number of competitive fields, collector coins being one, bullion being a big part of it as well, and foreign circulating coins also.”

Although this year’s Q1 results suggest more modest gains, the Mint reported a 2017 consolidated profit of $36.1 million, up from $24.5 million the previous year and buoyed partly by Canada 150 collectibles. Ottawa raked in $93.2 million in dividends last year.

While the Bank of Canada prints paper money, the Mint strikes currency coins for Canada as well as countries on every continent. Its bullion, especially the one-ounce Maple Leaf gold coin, is sought after by the world’s speculators and hoarders, as well as collectors.

But can the Mint’s increasingly creative collectibles still be considered coinage? Yes, according to Reeves. “They are coins by definition as legal tender, having a denomination and identifying country of origin,” he points out. That doesn’t mean they can’t be innovative.

“Collectors come to us from all over the world so innovation helps us stand out in a crowded marketplace. We use it to get people’s attention and increase the appeal of our products.”

The Royal Canadian Mint breaks the numismatic mould to cast creative coins

That’s illustrated in the two newest releases. Each commemorating a special date, one coin contains purely Nunavut-mined gold, the other a little chunk of meteorite.

The gold coin gets its yellow metal from TMAC Resources’ (TSX:TMR) Hope Bay and Agnico Eagle Mines’ (TSX:AEM) Meadowbank to present Andrew Qappik’s images of a walrus, ptarmigan, polar bear, bowhead whale and narwhal. In another innovation, the one-tenth-ounce piece has the same diameter as a quarter-ounce coin, providing a larger canvas for the Inuk artist’s work. Part of the Symbols of the North series, the coin anticipates Nunavut’s 20th anniversary next April.

“Our Inuit employees, suppliers and partners can all take great pride in knowing that they have participated in making this unique coin that celebrates their heritage and culture,” commented Agnico Eagle CEO Sean Boyd. With a face value of $20, the coin sells for $359 in a limited mintage of 1,500.

At a ceremony attended by former Canadian astronaut Dave Williams, the Mint used the Royal Astronomical Society of Canada’s 150th anniversary to unveil “a truly out-of-this-world collectible.” As if to make the one-ounce silver coin impractical for vending machines, a bit of rock from Campo del Cielo sticks out of the surface. The fragment fell to earth about 4,500 years ago when the Argentinian field underwent a meteorite bombardment.

The Royal Canadian Mint breaks the numismatic mould to cast creative coins

Using designs from Canadian artist Alexandra Lefort, the coin depicts the Eagle Nebula and its pillars of interstellar gas and dust along with the Moon, the Andromeda Galaxy and a blazing meteorite in addition to the genuine iron-enriched supplement.

Also with a $20 face value, 5,500 versions—each unique for the shape of its other-worldly content—went on the market for $149.95 each.

In April the Mint marked another extra-terrestrial event with an elliptical black-light-glowing piece portraying Manitoba’s 1967 Falcon Lake UFO sighting.

Last year’s glow-in-the-dark toonie was named Most Innovative Circulating Coin by the International Mint Directors Conference.

The Mint’s collectibles date back to a 1935 silver dollar commemorating King George V’s Silver Jubilee and portraying a voyageur paddling his canoe against a faint Northern Lights backdrop. “It gradually evolved to commemorative circulation coins, coin sets and then, with the advent of the Montreal Olympics, we started producing a higher volume of annual collector coins in silver and some in gold as well,” Reeves says. “We’ve continued to grow that part of our business.”

The Royal Canadian Mint breaks the numismatic mould to cast creative coins

Some other unusual creations this month included a six-ounce silver coin with a gold-plated miniature carousel that rotates with the help of a magnet. “Even the horses move up and down on this dazzling creation which is limited to a worldwide mintage of only 1,000,” states a promo.

But musical accompaniment, apparently, has thus far escaped the Mint’s R&D ingeniousness.

Still, last May Mint boffins announced one of their most complicated technical projects ever with a “coin” that’s half of a miniature Stanley Cup. “If you put two of them together, you would have an entire Stanley Cup replica, albeit a fraction of the size of the actual trophy,” the Mint quoted techie Michael Groves. He compared the project’s complexity to that of the Mint’s 100-kilo, million-dollar gold coin and the 2010 Vancouver Winter Olympics medals.

To keep the ideas flowing, the Mint maintains two R&D departments, one at the Winnipeg home of circulating coin production, the other in Ottawa, location of the head office, as well as bullion and collectible production.

“We do have a broad range of expertise in our staff and it’s something we take seriously and keep investing in,” Reeves says. “We see ourselves as industry leaders for innovation” with some examples including colouring processes and security features. “We’ve made security features on our bullion coins that can’t be found elsewhere, and we have a broad range of innovation on our collector products as well. It benefits the industry if you’re able to raise the bar, create something new and inspire others to look at their own ways of improving coin-making or coming up with something brand new.”

Whether others have been inspired to imitate the Mint’s ideas or steal them is a question currently before Australian courts. The Mint has demanded its Down Under counterpart turn over or destroy some $2 million worth of collectibles that allegedly appropriated a patented method of applying colour to metal. Australia responded with a counter-claim asking that Canada’s patent be declared invalid.

But high-tech expertise notwithstanding, Canada’s coin creator won’t be venturing into the world of cryptocurrencies, Reeves insists. “The Mint is a manufacturer of physical coins, of cash in other words, and for the foreseeable future we see cash continuing to play an important role in Canadian daily commerce. We’re going to continue innovating in that area in ways that increase the security and durability of our products.”

Learn more about the Royal Canadian Mint.

Royal Canadian Mint breaks the numismatic mould to cast creative coins

June 26th, 2018

This story has been expanded and moved here.

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.

Infographic: The Yukon, where mineral potential is coming of age

August 8th, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist | August 8, 2017

In a remote corner of Canada’s north lies the Yukon—a territory that is renowned for both its legendary mineral potential and its storied mining history.

But while the Yukon only produced 2.2% of Canada’s gold in 2016, the territory’s considerable potential may finally be getting realized in a big way. In the last few years globally significant discoveries have been made and now mining giants such as Barrick Gold TSX:ABX, Goldcorp TSX:G and Agnico Eagle TSX:AEM are making their moves into the Yukon to get in on the action.

A coming of age story

This infographic comes from Strikepoint Gold TSXV:SKP and it showcases some of the reasons why the most important chapter in the Yukon’s mining story may just be beginning.

The Yukon: Where mineral potential is coming of age

 

Although the Yukon has been known for a long time to possess incredible mineral potential, it is only in the last few years that signs have been pointing towards this being realized in the form of globally significant discoveries, investment from major players and mines being built.

A new era in the Yukon

For gold to be produced, it must first be discovered. The Yukon has been home to some of Canada’s most exciting discoveries in the last 10 years. The new project pipeline contains impressive deposits but, even more importantly, it contains some impressive names.

White Gold

Famously found by prospector Shawn Ryan and Underworld Resources in 2008, the White Gold discovery triggered much of the modern interest in the Yukon. Kinross Gold TSX:K purchased Underworld Resources for $139.2 million at the height of the gold market. More recently, major Agnico Eagle has bought into the district for $14.52 million.

Coffee project

Discovered in 2010, this project is just kilometres away from the White Gold project. It too is based on Shawn Ryan’s claims. Most recently, Goldcorp bought the project for $520 million through its acquisition of Kaminak Gold.

Casino project

Currently under environmental review, this massive porphyry deposit owned by Western Copper and Gold TSX:WRN could be the largest mine in Yukon history, if constructed. Right now the deposit has reserves of 4.5 billion pounds of copper and 8.9 million ounces of gold.

Rackla

The only Carlin-style district in Canada, this project is being advanced by ATAC Resources TSXV:ATC. Recently ATAC generated headlines with an investment from Barrick, which put in $8.3 million while also committing up to a further $55 million to earn 70% of the property’s Orion project.

Eagle Gold

Eagle Gold is on track to become the Yukon’s largest gold-only mine in history. Victoria Gold TSXV:VIT, the project’s owner, expects its first gold pour in 2019. Currently the property’s Eagle and Olive deposits have 2.66 million ounces of gold in reserves.

Major arrivals

In the last year or so some of the world’s most prolific gold miners such as Barrick, Goldcorp and Agnico Eagle have set up shop in the Yukon—and it could be a sign that the territory is close to reaching its ultimate potential as a top-tier mining destination.

Here are some of the other reasons that miners and investors are looking northwards:

1. Government support

The Yukon government is well known for supporting prospectors and miners developing projects. Current programs include the Yukon Mineral Exploration Program, which provides a portion of risk capital to help explorers locate and grow deposits, as well as the Fuel Tax Exemption, which makes miners and other off-road industries exempt from fuel taxes.

2. A rich mining history

From the placer mining of the famous Klondike gold rush to the mining today in the Yukon, the territory has always welcomed mining. In fact, mining is still the most important private industry today in the Yukon by GDP share (19%).

3. First Nations approach

First Nations and the Yukon government have recently championed a new “government-to-government” relationship to ensure that industry, the territorial government and First Nations are on the same page for mineral projects.

4. Momentum

From Shawn Ryan’s discoveries to the arrival of majors in the region, it has been an eventful decade for Yukon miners. Many expect the best is yet to come.

Posted with permission of Visual Capitalist.

Dunnedin Ventures doubles size of Nunavut diamond-gold project

December 7th, 2016

by Greg Klein | December 7, 2016

An additional 66,047 hectares brings Dunnedin Ventures’ (TSXV:DVI) Kahuna property to around 1,200 square kilometres, the company announced December 7. Acquired by staking, the ground now holds over 100 interpreted kimberlite targets, half of them already under scrutiny for diamond indicator minerals from till sampling. Drilling has confirmed 10 diamond-bearing dykes.

Dunnedin Ventures doubles size of Nunavut diamond-gold project

A macrodiamond from Kahuna’s PST kimberlite.

Till sampling has found anomalous gold in five metasedimentary belts, while drilling has found gold in an extension of the Aqpik and Aklak gold showings on Agnico Eagle Mines’ (TSX:AEM) adjacent, advanced-stage Meliadine project, Dunnedin stated. An all-season road links Meliadine with the Hudson Bay hamlet of Rankin Inlet.

Last month Dunnedin announced plans to spin out its non-diamond assets to a new company.

Kahuna has a 2015 inferred resource for near-surface deposits on the Notch and Kahuna dykes, 12 kilometres apart:

  • Kahuna (+0.85 mm cutoff): 3.06 million tonnes averaging 1.04 carats per tonne for 3.19 million carats
  • (+1.18 mm cutoff): 0.8 ct/t for 2.45 million carats

  • Notch (+0.85 mm cutoff): 921,000 tonnes averaging 0.9 ct/t for 829,000 carats
  • (+1.18 mm cutoff): 0.83 ct/t for 765,000 carats

  • Total (+0.85 mm cutoff): 3.99 million tonnes averaging 1.01 ct/t for 4.02 million carats
  • (+1.18 mm cutoff): 0.81 ct/t for 3.22 million carats

Both kimberlites remain open along strike and at depth.

Since then, an 820-kilogram sample from the property’s PST dyke revealed 526 diamonds. Ninety-six surpassed the commercial size of 0.85 millimetres, totalling 5.34 carats. A 2.32-tonne sample from Notch showed 85 commercial-sized stones totalling 1.95 carats.

While processing material from 1,100 till samples collected last summer, Dunnedin anticipates a 2017 program of drilling to test potential extensions of the resources, compile a 1,000-carat parcel for evaluation in Antwerp and try new targets identified by indicator minerals.

Read more about Dunnedin Ventures.

See Chris Berry’s report on long-term diamond demand.

Peregrine Diamonds outlines Nunavut spending plans as Chidliak moves to pre-feas

November 25th, 2016

by Greg Klein | November 25, 2016

Having poured about $23 million into Nunavut so far, Peregrine Diamonds TSX:PGD plans to spend another $15.5 million to $17 million next year on its Chidliak project, the Nunatsiaq News reported November 25. Most of the $23 million went to Iqaluit, home to an estimated 7,590 people. “It will cost between $50 and $75 million to go from here to where we need to get to,” the journal quoted president/CEO Tom Peregoodoff.

Peregrine Diamonds outlines Nunavut spending plans as Chidliak moves to pre-feas

Chidliak would have a 10-year lifespan,
according to last summer’s PEA.

The Baffin Island project reached PEA in July, calling for a capex of $434.9 million, an amount relatively modest for an isolated operation but considerable for a territory of about 37,082 people. The company hopes to reach feasibility by H2 2019, complete permitting by the end of that year and begin construction in H2 2019. Should hopes, financing and feasibility fall into place, Peregrine might be digging diamonds by 2021.

Brothers Robert and Eric Friedland own about 25% and 21% of the company respectively.

New infrastructure would include an all-season road to Iqaluit, about 120 kilometres southwest. The government of Nunavut hopes to have an $85-million deep sea port built there by 2020.

The territory currently has two other mines in production, Agnico Eagle’s (TSX:AEM) Meadowbank gold mine about 300 kilometres west of Hudson Bay and Baffinland Iron Mines’ Mary River iron ore operation roughly 800 kilometres north of Chidliak. Baffinland trucks ore to its own port, 100 kilometres north of the mine.

Peregoodoff said the company has yet to negotiate an Inuit Impact and Benefits Agreement, but stated such a deal would probably resemble agreements signed with Northwest Territories diamond producers, the News added.

In October the paper reported Nunavut’s 14,000-member Qikiqtani Inuit Association received more than $24 million over two years from Mary River.

Should Peregrine meet its goal, Chidliak wouldn’t be Nunavut’s first diamond operation. Just across the border from the NWT’s Lac de Gras camp, Nunavut’s Jericho mine produced gems between 2006 and 2008. Shear Minerals gave up on its restart attempt in 2012, leaving taxpayers with a large part of an estimated $10.5-million clean-up bill.

Yet diamond mining transformed the NWT economy. According to figures supplied by the NWT and Nunavut Chamber of Mines, between 1996 and 2015 the industry provided over 50,000 person-years of employment, 49% northern and 24% aboriginal. By far the territory’s largest private sector industry, diamond mining created 29% of the NWT’s GDP in 2014. Direct and indirect benefits bring the number up to 40%, according to chamber data.

Read how diamond mining supports the NWT economy.

Peregrine Diamonds outlines Nunavut spending plans as Chidliak moves to pre-feas

NWT Premier Bob McLeod, far right, celebrates aboriginal governments’ contributions to diamond mining
on the industry’s 25th anniversary in the territory. From left are Stanley Anablak (Kitikmeot Inuit Association),
Darryl Bohnet (Northwest Territory Métis Nation), Don Balsillie (Deninu Kué First Nation), Felix Lockhart
(Lutsel K’e and Kache Dene First Nation), Bill Enge (North Slave Métis Alliance), Chief Ernest Betsina and
Chief Edward Sangris (Yellowknives Dene First Nation), Chief Alfonz Nitsiza and Chief Clifford Daniels
(Tłı ̨chǫ Government), and Premier McLeod. (Photo: NWT and Nunavut Chamber of Mines)

Dunnedin Ventures finds gold synergies at its Nunavut diamond deposit

October 17th, 2016

by Greg Klein | October 17, 2016

Diamonds remain the focus of Dunnedin Ventures’ (TSXV:DVI) Kahuna project but evidence of gold offers additional potential, the company announced October 17. Recent till sampling on the Nunavut property brought positive gold results, as did historic rock samples.

Of 129 till samples taken last year, 84 showed anomalous results of 50 ppb gold or better. Twelve samples assayed greater than 1,000 ppb, with one sample reaching 5,930 ppb.

Dunnedin Ventures finds gold synergies at its Nunavut diamond deposit

Evaluation of gold grains suggests local bedrock sources, Dunnedin emphasized.

“One area of strong gold-in-till concentration occurs at the 10-square-kilometre hinge domain of a previously untested folded metasediment belt where a number of diamond-bearing kimberlites including PST, Notch and 07KD-24 are also located, suggesting proximal bedrock sources of gold and diamonds,” the company added.

Previous analysis of the till samples revealed diamond indicator minerals suggesting potential extensions to Kahuna’s known kimberlites, as well as additional kimberlite targets prospective for diamonds.

Historic work included 97 rock samples that assayed between 0.05 and 2.52 g/t gold.

The 60,000-hectare property sits about 25 kilometres from the Hudson Bay hamlet of Rankin Inlet and about 10 kilometres from Agnico Eagle Mines’ (TSX:AEM) Meliadine gold project, which could potentially begin production in 2020. An all-season trail under construction from Rankin Inlet to another Hudson Bay hamlet, Chesterfield Inlet, would pass within a few kilometres of Kahuna. Dunnedin has pledged $25,000 to the project. Longer-term plans would include a link to the current all-season road to Meliadine.

Kahuna has a January 2015 inferred resource for near-surface diamond deposits on the Notch and Kahuna kimberlites, 12 kilometres apart:

  • Kahuna (+0.85 mm cutoff): 3.06 million tonnes averaging 1.04 carats per tonne for 3.19 million carats
  • (+1.18 mm cutoff): 0.8 ct/t for 2.45 million carats

  • Notch (+0.85 mm cutoff): 921,000 tonnes averaging 0.9 ct/t for 829,000 carats
  • (+1.18 mm cutoff): 0.83 ct/t for 765,000 carats

  • Total (+0.85 mm cutoff): 3.99 million tonnes averaging 1.01 ct/t for 4.02 million carats
  • (+1.18 mm cutoff): 0.81 ct/t for 3.22 million carats

Both dykes remain open along strike and at depth.

Sample recovery from the project’s PST kimberlite showed 96 commercial-sized diamonds totalling 5.34 carats.

Read more about Dunnedin Ventures.

See Chris Berry’s report on long-term diamond demand.

Dunnedin Ventures wraps up summer field work, expands Nunavut diamond property

October 4th, 2016

by Greg Klein | October 4, 2016

Encouraged by last year’s success, Dunnedin Ventures TSXV:DVI expanded both its till sampling program and property size at the Kahuna diamond project in Nunavut. On October 4 the company announced completion of 1,111 till samples, approximately 10 times the amount taken in 2015. Dunnedin also staked another 25,000 hectares, bringing the property size to around 60,000 hectares and its border within about 10 kilometres of Meliadine, where Agnico Eagle Mines TSX:AEM sees gold production potentially starting in 2020.

Dunnedin Ventures wraps up summer field work, expands Nunavut diamond property

Some diamonds from the Notch kimberlite
between 0.6 and 0.85 millimetres.

“Last year’s program effectively identified several new potentially diamond-bearing kimberlite pipe and dyke targets,” commented CEO Chris Taylor. “The much larger 2016 program was implemented to expand upon existing diamond indicator mineral trains and to identify additional prospective diamond sources through testing the down-ice mineral signatures of geophysically interpreted kimberlite pipes and dykes across the property.”

Dunnedin uses sampling techniques and proprietary mineral chemistry filters pioneered by company adviser Charles Fipke at his Ekati discovery. Additionally, samples from the previous year are being re-examined for possible gold content.

Meanwhile work continues on diamond recoveries from mini-bulk samples taken last year at the project’s PST and Kahuna kimberlites. Early last month the company reported that a 2.32-tonne sample from the Notch kimberlite revealed 85 commercial-sized stones totalling 1.95 carats.

Last year’s resource estimate showed a near-surface inferred category for the Notch and Kahuna kimberlites, 12 kilometres apart:

  • Kahuna (+0.85 mm cutoff): 3.06 million tonnes averaging 1.04 carats per tonne for 3.19 million carats
  • (+1.18 mm cutoff): 0.8 ct/t for 2.45 million carats

  • Notch (+0.85 mm cutoff): 921,000 tonnes averaging 0.9 ct/t for 829,000 carats
  • (+1.18 mm cutoff): 0.83 ct/t for 765,000 carats

  • Total (+0.85 mm cutoff): 3.99 million tonnes averaging 1.01 ct/t for 4.02 million carats
  • (+1.18 mm cutoff): 0.81 ct/t for 3.22 million carats

Both dykes remain open along strike and at depth. The resource didn’t include the PST kimberlite, where sample recovery showed 96 commercial-sized diamonds totalling 5.34 carats.

The property’s located about 25 kilometres from the Hudson Bay town of Rankin Inlet.

Read more about Dunnedin Ventures.

See Chris Berry’s report on long-term diamond demand.