Friday 24th January 2020

Resource Clips


Posts tagged ‘b.c.’

Kendra Johnston of the Association for Mineral Exploration acknowledges the work of Geoscience BC

January 22nd, 2020

…Read more

Teck gets brownfields green energy project with re-acquisition of legendary mine

January 16th, 2020

by Greg Klein | January 16, 2020

Teck gets brownfields green energy project with re-acquisition of legendary mine

The SunMine sits atop reclaimed land over a onetime world leader in zinc-lead production.
(Photo: Teck Resources)

 

A former mine that’s been regenerated to generate clean electricity has come back to a former owner. A recent purchase returns the surface site of southeastern British Columbia’s legendary Sullivan mine to Teck Resources TSX:TECK.A/TSX:TECK.B, bringing with the property a 1.05 MW solar farm.

Built by the city of Kimberley on land provided by Teck after Sullivan’s 2001 shutdown, SunMine began operation in 2015 as B.C.’s first grid source of solar electricity. But declining revenues in recent years prodded the municipality into negotiations with the company, resulting in a $2-million payment that meets Kimberley’s SunMine-related debt.

Teck gets brownfields green energy project with re-acquisition of legendary mine

Affluent travelers can lap up luxury at
a former open pit near Shanghai airport.
(Photo: InterContinental Hotels and Resorts)

An 1892 discovery that became a major zinc-lead-silver producer, Sullivan was taken over in 1910 by Cominco, which merged with Teck in 2001. During Kimberley’s tourist season, visitors can take an open air train ride into the former underground operation.

Numerous former industrial sites have been refashioned into green energy production, notably the solar farm that opened at Chernobyl in 2018. In other cases reclaimed land hosts recreational facilities, such as the ski resort on the surface area of North Star, another Kimberley silver-lead mine.

Former open pits and underground workings have also been put to new uses. Billed as the world’s first underground hotel when it opened in 2018, the Shanghai Wonderland rises just two storeys above a former andesite quarry that contains the other 16 floors.

Some underground examples reported by the Smithsonian consist of cycling, zip-lining and ATV riding. More fanciful uses, however, include a onetime Polish salt mine that’s now a resort offering a “subterraneotherapy” spa as well as “religious services, adventure tours, art galleries, a museum and two underground hotels.”

A former Romanian salt mine now features “a surreal theme park complete with a Ferris wheel, mini-golf course, a lake with paddle boats, a bowling alley, an amphitheater, sports fields and ping pong tables.”

Apart from supplying grid power, Teck gets 81% of its own electricity consumption from renewable sources, the company stated. “Our involvement with SunMine is part of our commitment to taking action on climate change, advancing renewable energy development and supporting the global transition to a low-carbon economy,” said president/CEO Don Lindsay.

More contentiously, the company now has its proposed $20.6-billion Frontier oilsands mine awaiting a federal decision. In July a joint federal/provincial environmental review recommended approval but Environment and Climate Change Minister Jonathan Wilkinson has suggested his cabinet might reject the Alberta project.

 

A 1993 episode of Gold Trails and Ghost Towns discusses the Sullivan mine.

Native participation, technical innovation to be highlighted at AME Roundup 2020

January 13th, 2020

by Greg Klein | January 13, 2020

Reconciliation’s sudden prominence sometimes gives the issue a flavour-of-the-month aspect. But it’s a commitment that’s hardly new to the Association for Mineral Exploration. Continuing the work of past years, Roundup 2020 presents an example of native engagement through several presentations, discussions and speakers. That’s one of the topics that bring together indigenous communities, geoscience professionals, company executives, government reps, academics, students and something like 6,500 attendees from 37 countries at one of the industry’s most significant global events.

Native participation, technical innovation to be highlighted at AME Roundup 2020

Native music and ceremonies help
set the ambience for AME Roundup.

Roundup also places precious metals, base metals and energy minerals under scrutiny, both from geological and market perspectives. Recognizing the utility of good hard cash, the challenges of finance and capital markets come up for discussion.

Popular features like the Core Shack, Prospectors’ Tent and Project Generators’ Hub return, as does the annual AME Awards Gala that celebrates some standout success stories. Social events bring networking opportunities while the Exhibit Hall showcases miners, explorers, support industries and the new technology that’s taking mining into the future.

Over 650 companies involved in exploration, development and mining operations will take part, along with over 100 reps from governments, geological surveys and first nations.

Innovation is the emphasis of this year’s theme, Lens on Discovery. Artificial intelligence and machine learning provide some of the tools and techniques opening new opportunities in discovery, development and production.

Among many native-related events will be Tahltan: A History. Mining Hall of Fame inductee Jerry Asp and Tahltan central government president Chad Day will relate the band’s experience with mining and exploration, including the “trials and tribulations encountered along the way” as the Tahltan became industry leaders.

And Gathering Place returns, once again promising the exchange of a wide range of views on native issues.

Another priority will be youth, with several events intended to interest kids, teens and young adults in mining-related careers.

Two days of short courses precede Roundup, while the event ends with a TMX live market close.

Roundup 2020 takes place from January 20 to 23 at the Vancouver Convention Centre East. Click here for more info.

Open and shut cases: West

December 20th, 2019

A look at the western provinces’ mine openings and closures for 2019 and 2020

by Greg Klein

A look at the western provinces’ mine openings and closures for 2019 and 2020

Western Potash began Saskatchewan’s first solution mining operation for this commodity in July.
(Photo: Western Potash)

 

This is Part 2 of a four-part series.

The Exxon Valdez of Canadian mining went into dry dock at the end of May, as Imperial Metals TSX:III put its Mount Polley copper-gold operation on care and maintenance. The company that traded above $16.50 prior to the August 2014 tailings dam failure spent most of 2019 well below $3. Now holding two suspended mines, the company’s operational portfolio has dwindled to a 30% stake in B.C.’s Red Chris copper-gold open pits. In August Imperial sold the other 70% to ASX-listed Newcrest Mining for US$775 million.

But if human error can dump eight million cubic metres of tailings muck into the waterways, human ingenuity can respond. As the five-year anniversary approached, Geoscience BC founding president/CEO and Imperial’s former chief scientific officer ’Lyn Anglin offered her perspective on the $70-million clean-up program, which continues during the mine’s suspension.

 

Maybe its status as Canada’s largest diversified miner leaves Teck Resources TSX:TECK.A/TSX:TECK.B open to greater diversity in downturns. The company blamed global economic uncertainties for “a significant negative effect on the prices for our products, particularly steelmaking coal.” But the company attributes its most recent coal mine closures not to market forces but to depletion. That was the verdict for the mid-year shutdown of B.C.’s Coal Mountain and for Alberta’s Cardinal River, scheduled to follow in mid-2020.

A look at the western provinces’ mine openings and closures for 2019 and 2020

Some depleted mines notwithstanding, Teck Resources
has over four decades of B.C. coal reserves.
(Photo: Teck Resources)

Although Teck warned employees in September of layoffs, noting a price drop from about $210 to about $130 per tonne over the previous weeks, further mine closures weren’t specified. Depletion hardly concerns Teck’s four remaining Kootenay-region coal operations. The company says there’s enough steelmaking stuff to keep Line Creek, Greenhills, Elkview and Fording River busy for 18, 28, 38 and 43 years respectively.

While the company now focuses on its Quebrada Blanca Phase 2 copper development project in Chile and its JV at the port of Vancouver’s Neptune terminal, Teck’s $20-billion proposal for Alberta might serve as an affront to the great cause of our time. In July Teck managed to get a recommendation of approval from a joint federal/provincial environmental review panel for its Frontier oilsands project. Media reports, however, suggest Environment and Climate Change Minister Jonathan Wilkinson and his cabinet might reject the panel’s recommendation.

 

Whether it brought relief or astonishment to local supporters, in July Western Potash finally began building its long-delayed Milestone potash project in southern Saskatchewan.

A look at the western provinces’ mine openings and closures for 2019 and 2020

A determined-looking Western Potash group
celebrates a milestone in Saskatchewan mining.
(Photo: Western Potash)

Expectations had risen and fallen a few too many times since at least 2015, when the company announced it had secured funds sufficient for a scaled-down capex. But in October Western began solution mining, the first application of this method for potash in Saskatchewan. The innovative operation will also be “the first potash mine in the world that will leave no salt tailings on the surface, thereby significantly reducing water consumption.”

Now a subsidiary of Western Resources TSX:WRX, the company plans “hot mining” early in the new year to pump brine containing potassium chloride into a crystallization pond at surface, leaving unwanted sodium chloride underground. By Q3 2020 a newly built plant will process the potash for an off-take agreement covering all Phase I production. Phase II calls for expanded operations to support an average 146,000 tpa output over a 12-year life.

 

Yet the mine starts up amid cutbacks and shutdowns elsewhere. The province’s big three potash producers, Nutrien TSX:NTR, Mosaic NYSE:MOS and K+S Potash Canada, all reduced output in 2019. Between them, Nutrien and Mosaic suspended four operations, at least one indefinitely.

In August workers at Mosaic’s Colonsay operation learned of an indefinite layoff, reportedly to last anywhere from six months to a matter of years. Further discouragement came in November when the United Steelworkers confirmed that the company was moving equipment from Colonsay to its Esterhazy operation, itself subject to reduced output.

A look at the western provinces’ mine openings and closures for 2019 and 2020

Saskatchewan’s tallest structure stands over a shaft reaching
more than a kilometre underground at Mosaic’s Esterhazy K3.
(Photo: Mosaic)

Esterhazy’s ambitious K3 expansion project, however, continues unfazed by current market conditions. With construction started in 2011, commissioning begun in December 2018 and full production not scheduled until 2024, the new underground operation will replace Esterhazy’s K1 and K2 mines, keeping the K1 and K2 mills busy at the world’s largest potash mining complex.

In September Nutrien announced it would “proactively” suspend its Allan, Lanigan and Vanscoy potash mines. Workers at the first two got December 29 recall notices, but Vanscoy’s resumption has yet to be revealed.

Nevertheless, company bosses expressed optimistic 2020 foresight. It will be “a strong year for crop input demand for which we are well-positioned to benefit,” predicted Nutrien president/CEO Chuck Magro. His Mosaic counterpart Joc O’Rourke expects “a very strong application season in Brazil and North America, and a better supply and demand balance in 2020.” .

 

That year or the next just might be momentous for Saskatchewan potash. BHP Group NYSE:BHP’s board of directors has until February 2021 to decide whether to complete Jansen, a $17-billion project that would challenge the province’s potash protocol.

The threat of competition might take an unexpected turn, however. As reported in the Financial Post, at least two analysts say rival companies could attack pre-emptively by boosting production to lower prices and discourage new mine development.

 

Holding top positions globally are Saskatchewan as potash-producing jurisdiction and Saskatoon-headquartered Nutrien as potash miner. The province also boasts world stature for uranium but has no new U3O8 operations expected during this survey’s time frame. Even so, industry and investors watch with interest as Denison Mines TSX:DML, NexGen Energy TSX:NXE and Fission Uranium TSX:FCU each proceed with advanced large-scale projects.

This is Part 2 of a four-part series.

Gaia Metals applies new geophysical analysis to Quebec polymetallic project

December 11th, 2019

by Greg Klein | December 11, 2019

This type of geophysical survey hasn’t changed much in two decades, but the technology of evaluation has. With that in mind, Gaia Metals TSXV:GMC (formerly 92 Resources) plans an up-to-date re-analysis of existing IP-resistivity data from its Corvette-FCI property. The process should offer a cost-effective method of gaining new insight into the project.

Gaia Metals applies new geophysical analysis to Quebec polymetallic project

Gaia Metals’ Corvette-FCI project has already shown
impressive sample results for gold, copper and lithium.

The James Bay-region property has so far yielded high-grade samples of gold, copper-gold-silver and lithium-tantalum. Now the company plans to apply new technology to data collected up to 2000.

IP-resistivity surveys have proven “well-suited to detect near-surface disseminated sulphide mineralization (IP anomalies), as well as areas of alteration and/or silicification (resistivity anomalies),” Gaia stated. “This geophysical tool is commonly used in greenstone-hosted gold and base metal exploration and is often effective at qualifying drill targets initially developed from surface mapping and sampling. With the mineralization styles identified at Corvette-FCI, coupled with the thin overburden cover in the area, IP-resistivity offers an efficient sub-surface scan at good resolution and reasonable cost.”

The original survey covered two grids: Golden Gap (now known as FCI West) and Island Lake (FCI East), which includes the Lac Bruno boulder field. IP targets from the original evaluation have yet to be drilled, “further highlighting the value in modern re-processing to prioritize the targets,” Gaia added.

The company expects to conduct new surveying along the property’s Maven trend, extending east across the Lac Smokycat-SO, Lorraine and Elsass showings, where historic sampling brought impressive copper-gold-silver grades. Expected for completion next spring, the survey will precede ground mapping and sampling scheduled for June and July.

Emphasizing the project’s polymetallic promise were surface samples released in September from last summer’s field program. Lithium grades from six newly found pegmatites reached up to 4.72% Li2O, while tantalum numbers included 564 ppm Ta2O5. Gold samples included a Lac Bruno boulder assay as high as 11.9 g/t. A Lorraine outcrop featured 8.15% copper, 1.33 g/t gold and 171 g/t silver.

The project consists of Gaia’s 100%-held Corvette claims and a 75% earn-in from Osisko Mining TSX:OSK spinout O3 Mining TSXV:OIII on the FCI-East and FCI-West blocks.

Among other assets, Gaia’s portfolio includes the Pontax lithium-gold property in Quebec, the Golden silica property in British Columbia and a 40% stake in the Northwest Territories’ Hidden Lake lithium property.

Last week the company closed a private placement of $412,199.

Geoscience BC seeks to put “hidden” copper-gold resources into the public domain

December 6th, 2019

by Greg Klein | December 6, 2019

Additional base and precious metals could be waiting for discovery in a region already hosting some of British Columbia’s largest mines. A new program by Geoscience BC plans a number of measures to search for potential deposits hidden beneath glacial till.

Under scrutiny will be a 50,700-kilometre swath of Quesnel terrane between Centerra Gold’s (TSX:CG) Mount Milligan gold-copper mine to the northwest and, to the southeast, Taseko Mines’ (TSX:TKO) 75%-held Gibraltar copper-molybdenum operation and Imperial Metals’ (TSX:III) Mount Polley project, now on care and maintenance. Backed by $2.9 million in funding, the Central Interior Copper-Gold Research project begins with two programs. One will analyze new and existing till samples with satellite imagery to trace samples and geochemical anomalies to their source. Another program will use existing geophysical data to identify, map and model potential copper-gold deposits.

Geoscience BC seeks to put “hidden” copper-gold resources into public domain

Receding glaciers may have helped hide valuable resources.
(Photo: Geoscience BC)

Results are scheduled for 2021, when drilling is anticipated and additional related projects may take place. Data will be made public for the benefit of communities, governments and academia, as well as the mining sector.

Consequently, support for the program came from communities as well as industry. At a December 5 open house North Central Local Government Association president Lara Beckett said, “The communities of the NCLGA benefit from the valuable public data on water, energy and minerals that these initiatives provide. NCLGA members have passed resolutions in support of the work of Geoscience BC and look forward to working together on future opportunities to strengthen communities throughout north-central British Columbia.”

Association for Mineral Exploration president/CEO Kendra Johnston called the work “important to AME members because the data and information that they provide inspire new mineral exploration and attract new investment to British Columbia. We look forward to seeing the results from the first two projects, and to learning more about future phases.”

Other recently announced Geoscience BC programs include Porphyry Vectoring Techniques in Advanced Argillic Altered Rocks, a study of three known porphyry copper-gold deposits in the province’s northwest and north-central regions.

Earlier last month Geoscience BC published a report on mineral deposit types in the Toodoggone area of B.C.’s north-central region. Among several other projects, the non-profit group is also studying methods of extracting rare earth elements from B.C. coal deposits.

Learn more about the Central Interior Copper-Gold Research project.

International Montoro Resources finds greater massive sulphide potential at Elliot Lake, Ontario

December 3rd, 2019

by Greg Klein | December 3, 2019

After adding results from a ZTEM MVI inversion magnetic survey, estimates of the Pecors anomaly double in size.

 

The Serpent River property shows enhanced prospects for nickel, copper, gold, platinum and palladium, according to a recent compilation and analysis of geophysical data. International Montoro Resources TSXV:IMT reported two likely massive sulphide targets over the project’s Pecors anomaly. Now measured to about 5.7 kilometres by 4.2 kilometres by 2.2 kilometres, the anomaly extends to twice the size of a previous estimate.

International Montoro Resources finds greater massive sulphide potential at Elliot Lake, Ontario

A 2015 drill program tested the property’s magnetic anomaly.

The findings come from Mira Geoscience, considered a pioneer of advanced geological and geophysical modelling. The firm analyzed data using its Geoscience Analyst 3D visualization and exploration platform.

Following a 2007 VTEM survey, Montoro sunk two holes totalling 2,322 metres in 2015. One hole intersected a magnetic anomaly’s source, a gabbro body with minor sulphides showing nickel, copper and PGE values near the base. The other hole also intersected the gabbro, finding low-grade gold, platinum, palladium, copper and nickel values, the company stated.

“In essence we are exploring for a massive sulphide nickel-copper-PGE-gold deposit,” said president/CEO Gary Musil.

Last October the company announced a 51% earn-in on the 2,250-hectare Camping Lake property in Ontario’s Red Lake district. In British Columbia’s Cariboo region, Montoro completed rock and soil sampling last July on its 2,138-hectare property bordering Defense Metals’ TSXV:DEFN Wicheeda rare earths project.

Montoro’s portfolio also includes two northern Saskatchewan uranium properties held 50/50 with Belmont Resources TSXV:BEA.

Conrad Black to address the Vancouver Resource Investment Conference in January

November 29th, 2019

by Greg Klein | November 29, 2019

Conrad Black to speak at the Vancouver Resource Investment Conference in January

Conrad Black

He was born rich, made himself richer, built a media empire, lost a media empire, wrote history, made history, disrupted Canadian journalism, got thrown into prison and returned as one of Canada’s most compelling social and political commentators.

That’s his short-form CV in one long sentence. But Conrad Black’s a writer who likes long sentences. He’s also a public speaker who’ll be appearing at the Vancouver Resource Investment Conference, held January 19 and 20.

This will be an opportunity to hear an uncategorizable voice in Canadian public discourse, with perspectives on a number of issues that affect resource industries. He’ll head a lineup of over 60 speakers including Rick Rule, Frank Holmes, Marin Katusa and Brent Cook, among others. Over 350 exhibitors and 9,000 investors are expected to attend.

The conference takes place at the Vancouver Convention Centre West from January 19 to 20. Click here for more info on VRIC 2020.

VRIC conveniently overlaps the Association for Mineral Exploration’s Roundup 2020, held next door at the Vancouver Convention Centre East from January 20 to 23. Click here for more info on AME Roundup 2020.

Read Conscription, colonization, a gold-backed buck: Some Conrad Black remedies for Canada.

Commerce Resources reports high grades over wide intervals at Quebec rare earths-fluorspar project

November 28th, 2019

by Greg Klein | November 28, 2019

With core moved from the storage vault to the lab, new assays further confidence in a resource update anticipated for next year as the Ashram deposit advances towards pre-feasibility. The results come from a 14-hole, 2,014-metre program sunk in 2016 but only recently assayed for budgetary reasons. Now cashed-up Commerce Resources TSXV:CCE unveils an impressive batch of near-surface rare earths and fluorspar intercepts from the northern Quebec property.

Commerce Resources reports high grades over wide intervals at Quebec rare earths-fluorspar project

Among the highlights are one of the project’s best-yet intercepts: 2.38% rare earth oxides over 64.54 metres, with sub-intervals including 3.02% over 28.35 metres. Another standout shows 1.71% over 221.95 metres, including 2.18% over 36.16 metres. Yet another hole boasts 2.16% over 53.55 metres. (True widths were unavailable.)

These are near-surface results, starting at downhole depths of 66.5 metres, 2.69 metres and 1.54 metres respectively.

Another critical mineral and one not factored into Ashram’s previous PEA, fluorspar also comes through in impressive grades, such as 7.2% calcium fluoride over 221.95 metres, including 11.5% CaF2 over 36.16 metres. Metallurgical studies currently underway work on upgrading the fluorspar to higher-priced acid grade in a flowsheet that would provide both rare earths and fluorspar concentrates, improve RE extraction and reduce tailings. The Colorado lab will also produce samples to meet requests from potential customers.

This round of definition drilling targeted the deposit’s northern, western and southern margins with holes spaced 50 metres apart, and in some cases 25 metres apart. Additional drilling at 25-metre centres may take place.

Using a 1.25% cutoff, Ashram’s 2012 resource estimate showed:

  • measured: 1.59 million tonnes averaging 1.77% total rare earth oxides

  • indicated: 27.67 million tonnes averaging 1.9% TREO

  • inferred: 219.8 million tonnes averaging 1.88% TREO

The carbonatite-hosted deposit features relatively simple monazite, bastnasite and xenotime mineralogy, familiar to conventional rare earths processing

Anticipated for the coming year is Ashram’s first resource update since 2012, factoring in 9,625 metres of drilling since then. Previous drilling followed mineralization from near-surface to depths beyond 600 metres where mineralization remains open, as evidenced by 4.13% REO over 0.6 metres beginning at 599.9 metres’ depth.

Work continues as the United States and other allied countries show increasing concern about China’s domination of several critical minerals with a special focus on rare earths but also including fluorspar, tantalum and niobium. Commerce also holds the advanced-stage Blue River tantalum-niobium deposit in southern British Columbia.

About two kilometres from Ashram, Saville Resources TSXV:SRE operates the Niobium Claim Group under a 75% earn-in from Commerce. After releasing niobium-tantalum-phosphate results last June, Saville now has the project’s fluorspar potential under evaluation.

Earlier this month Commerce closed the final tranche of a private placement totalling $2.51 million. Another placement in August garnered $413,749.

Read more about Commerce Resources.

Updated: Belmont Resources’ Greenwood expansion continues with new acquisitions

November 21st, 2019

Update: On November 21, 2019, the company announced two more Greenwood-area acquisitions totalling 45 hectares in the Pride of the West and Great Bear claims.

by Greg Klein | October 30, 2019

Newly acquired turf shows continued interest in an historic southern British Columbia mining camp. On October 30 Belmont Resources TSXV:BEA announced 127 hectares of new claims to add to its existing holdings in the area.

The Glenora acquisition sits adjacent to Golden Dawn Minerals’ (TSXV:GOM) Golden Crown project, about three kilometres from Golden Dawn’s processing plant and one kilometre from the former Phoenix mine.

Belmont Resources expands its presence in B.C.’s Greenwood camp

Although neighbouring deposits don’t necessarily reflect on the potential of other properties, an idea of Greenwood activity can be gleaned from historic production at Phoenix. The open pit reportedly produced over one million ounces of gold and 500 million pounds of copper up to 1978. Golden Crown reached PEA in 2017 with a resource that uses a 3.5 g/t gold-equivalent cutoff:

Indicated: 163,000 tonnes averaging 11.09 g/t gold and 0.56% copper for 11.93 g/t gold-equivalent containing 62,500 gold-equivalent ounces

Inferred: 42,000 tonnes averaging 9.04 g/t gold and 0.43% copper for 9.68 g/t gold-equivalent containing 13,100 gold-equivalent ounces

Belmont plans further assessment of Glenora while considering other possible acquisitions in the camp.

The new claims will cost the company 420,000 units on TSXV approval, with each unit containing one share and one warrant. Another 420,000 shares are payable within a year and a 1.5% NSR will apply.

Earlier this month Belmont reported sample results from its Greenwood-area Pathfinder project, with grades up to 4.999 ppm gold, 35.86 ppm silver, 20700 ppm copper and 45.1 ppm cobalt. The autumn campaign followed a summer program that returned sample assays up to 29.2 g/t gold, along with silver, copper and lead. The company currently has contract proposals under review for an airborne VTEM survey over the property.

Belmont’s portfolio also includes a 75% interest in Nevada’s Kibby Basin lithium project, where drill results have graded up to 393 ppm lithium over 42.4 metres and 415 ppm over 30.5 metres. In northern Saskatchewan the company shares a 50/50 stake with International Montoro Resources TSXV:IMT in two uranium properties.

Belmont currently has private placements on offer totalling up to $300,000. The company closed a $252,000 private placement last June and arranged two loans totalling $50,000 in August.