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Posts tagged ‘Bluenose Gold Corp (BN.H)’

Albany’s area play continues

August 16th, 2013

More companies move in on Zenyatta’s Ontario graphite project

by Greg Klein

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In just over five weeks at least a dozen companies have picked up properties around Zenyatta Ventures’ TSXV:ZEN Albany graphite project in north-central Ontario. A steady source of encouraging news since its January 2012 discovery, Albany was bound to attract admirers—but why so late and suddenly so many? Little is being said, other than the properties became available and the timing couldn’t be better.

“It’s been great for the markets,” says Michael England, CEO/director of Cariboo King Resources TSXV:CKR. “All the juniors that have gone in have seen an increase in volume and even some financings. It’s been fantastic. It’s kind of what the doctor ordered for our markets. All of us were so dead but with the [Alpha Minerals TSXV:AMW/Fission Uranium TSXV:FCU] uranium play in the Athabasca Basin and this one—wow! What a change it’s made.”

More companies move in on Zenyatta’s Ontario graphite project

Among the earlier entrants reported by ResourceClips.com on July 17 were Brookemont Capital TSXV:BKT with its 416-hectare Albany East property, Cavan Ventures’ TSXV:CVN 768-hectare Cage claims, TAD Mineral Exploration’s TSXV:TJ 257-hectare Constance Lake property and Bluenose Gold’s TSXV:BN.H Zenyatta West project.

Other acquisitions include Weststar Resources’ TSXV:WER 304-hectare Albany South East property announced July 16, TAD’s second foray with the 386-hectare Constance Lake West property announced July 25 and Ashburton Ventures’ TSXV:ABR 16-claim, 256-hectare Page property announced the following day.

Cariboo King heralded its 256-hectare Nezen property July 29. The next day Alchemist Mining TSXV:AMS did the same for its 256-hectare Mondatta property and the day after that MPH Ventures TSXV:MPS got in on the act with its same-sized North Albany. On August 13 GTA Resources and Mining TSXV:GTA said it increased its Auden project to over 26,000 hectares, making it the area’s largest landholder.

Then the play moved farther afield with two August 15 announcements, Cariboo King’s 1,536-hectare Pito property 20 kilometres west of Albany’s drill holes and, about 25 kilometres east of Zenyatta, the 256-hectare Hearst project for Benton Resources TSXV:BEX—which passed it on to Alabama Graphite CNSX:ALP the very next day. Alabama IR officer Danny Gravelle tells ResourceClips.com, “The property became prospective to Benton not only because of the location but an historic report by Noranda which gave some really strong indicators that there’s potential for graphite.”

But what prompted so many companies to pour into the Albany area at this time? Gravelle responds that Zenyatta’s story obviously has investors compelled. After trading for less than $2 in May the stock hit a 52-week high of $5 on July 26. “For a stock to perform as it has in the worst market I’ve seen in my lifetime shows a significant amount of strength. I think investors are convinced that Zenyatta has great potential because they’ve shown they like this story even in the worst of markets. That’s what really generated the interest.”

Cariboo King, with projects close to a number of former graphite mines in Quebec and also to Timcal Graphite & Carbon’s operating Lac-des-Iles mine, evidently lets others lead the way. “I do play closeology a lot with my companies,” England tells ResourceClips.com. He saw the policy pay off when New Gold TSX:NGD took out Geo Minerals in December 2011. “That was something that we never even drilled but it was close to their Blackwater deposit.”

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Albany’s new neighbours

July 17th, 2013

Zenyatta Ventures gets company next to its Ontario graphite project

by Greg Klein

It might be ironic that a company named after a racehorse took so long to inspire nearby acquisitions. Zenyatta Ventures’ TSXV:ZEN Albany property in north-central Ontario has been one of the more prominent graphite projects since the discovery was announced in January 2012. Very wide intercepts and a distinctive type of high-purity graphite have made the company a market darling. Now, finally, other companies are moving in for a piece of the action.

Zenyatta Ventures gets company next to its Ontario graphite project

Recent acquisitions have brought more companies in the vicinity
of Zenyatta’s Albany graphite project.

On July 9 Brookemont Capital TSXV:BKT announced the acquisition of the 416-hectare Albany East property, contiguous to Zenyatta’s project. The next day Cavan Ventures TSXV:CVN said it nabbed another 768 hectares also contiguous to the east of Albany. TAD Mineral Exploration TSXV:TJ got in the act with the July 15 announcement of its 257-hectare Constance Lake acquisition. Two days later Bluenose Gold TSXV:BN.H announced its acquisition named, without excessive subtlety, the Zenyatta West graphite project.

Terms differ. Brookemont pays $10,000 and issues four million shares. Cavan pays $15,000, issues three million shares and must raise $400,000 in a private placement. Bluenose pays $20,000, issues 1.5 million shares and grants a 1% royalty. TAD got its property through staking.

Although Albany’s graphite has been known for over 18 months, the recent acquisitions might have been partly motivated by a flurry of Zenyatta news last spring. In April, the Northwest Ontario Prospectors Association named Albany its Discovery of the Year. The same month the TSXV named Zenyatta last year’s top-performing mining sector company. Zenyatta also announced that graphite beneficiation tests achieved over 99.97% carbon through a relatively inexpensive caustic baking leach process.

But maybe most noteworthy, the company began describing its find differently. No longer likening it to Sri Lankan vein or lump-type graphite, Zenyatta now ponders the potential of something much wider—a hydrothermal breccia pipe originating deep in the earth’s mantle, unlike the organic genesis of flake graphite.

TAD’s July 15 statement quotes company director Gregory Thomson describing the area’s geological setting as one in which “similar formations seem to occur in pod-like clusters.”

Obviously the newcomers want to find something. But why all the acquisitions just now? Cavan president Peter Swistak simply says, “Something came available and I got it…. I like Zenyatta’s project very much and I wish I was out there earlier. But better now than never.” With his company “aggressively focused” on its flagship Lake Pythonga rare earths project and additional graphite projects in Quebec, “we definitely plan to be aggressive in this one also,” he tells ResourceClips.com.

Already positioned in two area plays, last May TAD expanded its Iskut copper-gold prospect to more than 1,800 hectares in the vicinity of Colorado Resources’ TSXV:CXO North ROK project, which stunned the market last April when its very first assay showed 0.51% copper and 0.67 grams per tonne gold over 333 metres, starting at 2 metres in downhole depth. Predictably, other companies swarmed in. In April TAD joined the Patterson Lake South staking stampede sparked by the Alpha Minerals TSXV:AMW/Fission Uranium TSXV:FCU high-grade, near-surface discovery.

I really liked what Zenyatta was doing and investigated whether there was any open ground in the area. I was kind of shocked when I saw that there was.—Property vendor Tony Beruschi

Brookemont has a Yukon gold prospect and an aluminous clay and rare earths prospect in Quebec’s Gaspe region, as well as nearly 3,400 hectares of REE prospects in the vicinity of Commerce Resources’ TSXV:CCE Ashram REE deposit, which is advancing towards pre-feasibility.

TAD and Brookemont share the same president, CFO and two of three directors.

As the vendor who turned Zenyatta West over to Bluenose, Tony Beruschi answers the “why now” question by saying, “I guess a better question might be, ‘Why wasn’t it done earlier?’ In the old days, people would have been all over that thing,” he tells ResourceClips.com. “It seems a sign of the times that such a great opportunity as Zenyatta hasn’t been covered over with staking. There should have been a staking rush there.”

He says he began looking at the area last June, when he was offered a number of deals in different regions. “I really liked what Zenyatta was doing and investigated whether there was any open ground in the area. I was kind of shocked when I saw that there was.” Staking was stymied, however, by “brutal” terrain.

With Bluenose currently holding dot-H status on the TSXV’s NEX board, Beruschi says its new acquisition can help “reactivate” the company. To what extent any of the companies share in Zenyatta’s success remains to be seen. But Beruschi says Zenyatta “created a model for working there.” With a geologist who’s experienced in graphite, he says Bluenose “will do its exploration based in part on what Zenyatta’s saying.”

Albany’s maiden resource will follow Zenyatta’s current drill campaign, scheduled to end in late August.

Disclaimer: Commerce Resources is a client of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in Commerce Resources.