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Posts tagged ‘Brigus Gold Corp (BRD)’

Q3 winning streak over: “Considerable underperformance” among Canadian miners in Q4

February 6th, 2014

by Ana Komnenic | February 6, 2014 | Reprinted by permission of MINING.com

Canadian mining stocks experienced a 45% decrease in market capitalization in 2013, with the last quarter alone showing a 9% drop, according to Ernst & Young’s Canadian Mining Eye Q4 2013 report.

It’s well known that concerns over global economic growth and uncertainty over what the U.S. Federal Reserve would do next dragged down commodity prices, leading companies to write down assets and cut costs.

But, despite some mild improvements in the third quarter, last quarter of 2013 unfolded much like the rest of the year—poorly.

The Canadian Mining Eye index—which tracks the performance of 100 TSX and TSXV mid-tier and junior companies with market capitalizations between $1.4 billion and $55 million in Q3—shed 9%. The preceding quarter the index rose by 5%.

“This indicated a considerable underperformance relative to the S&P/TSX Composite index that gained 7% in the fourth quarter,” according to the report.

Q3 winning streak over: “Considerable underperformance” among Canadian miners in Q4

Chart from Canadian Mining Eye Q4 2013, Ernst & Young

 

By commodity group, the only winners were among the diamond, platinum group metals, and coal and consumable fuels sectors.

The gold and fertilizer minerals sectors were hit the hardest; gold dropped 27% over the year and the potash industry was crushed by the breakup of the Russian-Belarusian potash cartel in July.

As for individual companies, Colossus Minerals TSX:CSI is the index’s biggest loser; the company experienced a net share price decline of 91% during the quarter.

One-third of the companies tracked by the Canadian Mining Eye index realized a net gain in the fourth quarter, compared with more than half in the third quarter.

Lucara Diamond TSX:LUC came out on top, gaining 66% on its share price. Brigus Gold TSX:BRD gained 42% throughout the quarter after its flagship Black Fox mine achieved record gold production.

But miners can take solace in the fact that 2013 is over and, at least according to Ernst & Young, 2014 will provide growth opportunities for companies across the sector.

“We note that a new year has brought some transactional activity for companies with good quality projects and lower valuations,” researchers wrote.

“Investors are likely to view the current underperformance as a buying opportunity as projects are de-risked. We expect companies to continue to adopt a disciplined approach to capital management and to seek creative financing options to withstand the downturn.”

Reprinted by permission of MINING.com

Sandstorm announces $130M Bought-Deal Financing

August 23rd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningSandstorm Gold Ltd TSXV:SSL announced it has increased its previously announced bought-deal financing from C$75 million to C$130 million. Lead underwriter Cormark Securities Inc along with National Bank Financial Inc, Paradigm Capital Inc, BMO Capital Markets Inc, Casimir Capital Ltd, Canaccord Genuity Corp and TD Securities Inc have agreed to buy, on a bought deal basis, 13,050,000 units at C$10 for gross proceeds of approximately C$130 million. Sandstorm has granted to the underwriters an option to buy up to an additional 15% of the number of units. If that option is wholly exercised, the aggregate gross proceeds will be approximately C$150 million. Each unit consists of one common share of Sandstorm and one-third of one common share purchase warrant, which will entitle the holder to acquire one common share of Sandstorm at a price of US$14 up to five years following completion of the offering.

Sandstorm provides upfront financing for gold-mining companies seeking capital in return for agreements giving it the right to buy percentages of life-of-mine gold produced at fixed prices. Sandstorm has completed gold purchase or royalty agreements with Luna Gold Corp TSXV:LGC, SilverCrest Mines Inc TSXV:SVL, Rambler Metals and Mining plc TSXV:RAB, Brigus Gold Corp TSX:BRD, Metanor Resources Inc TSXV:MTO, Donner Metals Ltd TSXV:DON, Magellan Minerals Ltd TSXV:MNM, Solitario Exploration & Royalty Corp TSX:SLR and Ely Gold & Minerals Inc TSXV:ELY. The net proceeds of the offering will be used for general corporate purposes including potential future purchases of precious-metal streams and working capital.

View Company Profile

Nolan Watson
President/CEO
604.689.0234

by Kevin Michael Grace

Mexican Focus

March 28th, 2012

Cangold Pushes Ixhuatan Gold Project toward Prefeasibility

By Greg Klein

Now this is a testament to the lure of gold—and of Mexico. Two producing silver mines, a silver development project and a silver exploration project, all south of the Rio Grande, didn’t quite satisfy the management of Great Panther Silver TSX:GPR. Hence the existence of Cangold TSXV:CLD, a company whose management and board are almost identical to Great Panther’s. Having picked up a 75% option on the Ixhuatan Project in the same country, Cangold has a gold project moving toward prefeasibility.

“The beauty of this is that it’s an advanced-stage project with a compliant resource of 1.7 million gold ounces,” says President/CEO Bob Archer. “And because it’s the same management team as Great Panther, we can move it into production, if that’s the case.”

Cangold Pushes Ixhuatan Gold Project toward Prefeasibility

Cangold’s Ixhuatan Project came with a 1.7-million-ounce gold resource

Located in the southern state of Chiapas, the 4,176-hectare property had already seen 89,000 metres of drilling in 342 holes. “That’s a huge amount, and the deposit itself is fairly well defined,” says Archer. “So there’s really no need to update the resource. We’ve made it current from a regulatory standpoint, and any additional drilling will come at the prefeasibility stage, mostly a few fill-in holes, if there are any gaps in the model, or a couple of additional holes for a more detailed metallurgical study.”

Included in the project’s May 2011 43-101 technical report is a 2006 resource estimate for the Campamento Deposit, one of nine mineralized zones. The measured category shows 1.95 million tonnes grading 3.49 grams per tonne gold and 15.84 g/t silver for 219,000 gold ounces and 990,000 silver ounces. The indicated category shows 15.62 million tonnes grading 1.64 g/t gold and 6.79 g/t silver for 823,000 gold ounces and 3.41 million silver ounces. Inferred resources come to 21.75 million tonnes grading 1.01 g/t gold and 3.23 g/t silver for 703,000 gold ounces and 2.26 million silver ounces. These numbers use a 0.5 g/t gold cutoff.

Under last September’s option agreement—labelled a reverse takeover by the TSXV—Cangold may acquire 75% of Linear Gold, the project’s owner and a subsidiary of Brigus Gold Corp TSX:BRD, by paying Brigus a total of $10 million and 20 million Cangold shares over two years and completing feasibility within three years. Following production, Brigus would get $5 per gold ounce in the proven and probable reserves shown in the feasibility study as well as a 2% net smelter royalty.

Brigus did the deal with us because of our management team,” Archer declares. “They were focused on their Black Fox Gold Mine near Timmins, so Ixhuatan was a bit of an orphan for them. They had no team in Mexico, and they weren’t getting any value for it in their share price. So they decided to do the deal with a group that was already well established in Mexico, knew how to operate there and was ready to move the project forward.”

Metallurgical testing is already underway, part of an internal scoping study that will likely lead to an independent prefeasibility for an open pit mine by late summer or early fall. The metallurgy gets a bit fussy because southern Mexico’s rainfall rules out heap-leach processing. “We’d like to use a contained process that would avoid any requirement for cyanide or anything like that. That would lead to a more environmentally friendly operation,” Archer says.

The beauty of this is that it’s an advanced-stage project with a compliant resource of 1.7 million gold ounces. And because it’s the same management team as Great Panther, we can move it into production —Bob Archer

As for infrastructure, “It’s great,” Archer says. “There’s a relatively short gravel road that leads right onto the property and paved roads leading to a number of nearby towns.”

While the scoping study takes place, the company works on community relations. “Again, one of the beauties of this project is that we don’t have to go in with a big drill program. We have the luxury of time, which allows us to engage the local communities and find out what their concerns might be. There are far too many projects that have been stopped in their tracks because companies didn’t communicate properly.”

At the opposite end of the country, in Sonora State, Cangold has the early-stage Plomo Project. “It’s very close to a major regional structure that comes through northwestern Mexico,” Archer reports. “Most of the deposits in that region are related to the structure, both spatially and geologically. It’s only about 25 kilometres from La Herradura [44% owned by Newmont TSX:NMC], one of Mexico’s largest gold mines. We’ve defined an area that’s about five kilometres long and three kilometres wide with a number of gold-bearing zones. We’ll be going back to start mapping and sampling and ultimately resume drilling later this year.”

Cangold is earning 100% of Plomo subject to a 2% NSR with a private owner. Cangold also owns the Argosy Project, a past-producing gold mine in Ontario’s Red Lake District. But that one’s up for grabs, according to Archer. He wants to stay focused on Mexico.

“I love working there,” he says. “I had worked there back in the late 1990s, when I started Great Panther with a friend who’s a Mexican mining engineer. We wanted to build a Mexican mining company. The governments at all levels are very supportive of mining in general, and there’s a good mining act. The geology is fantastic, and there are still lots of discoveries to be made.”

At press time Cangold, had 33.9 million shares trading at $0.20 for a market cap of $6.8 million. “Yet we’re earning 75% of a 1.7-million-ounce gold deposit,” Archer concludes. “The share price doesn’t reflect the potential of the project whatsoever. I think there’s a huge upside there.”

Everton, Brigus reports Dom Rep Assays up to 85.98 g/t Silver over 6m

March 3rd, 2011

Everton Resources Inc TSXV:EVR in joint venture with Brigus Gold Corp TSX:BRD announced assays from the La Lechoza VMS Project on the Ampliacion Pueblo Viejo Property in central Dominican Republic. Results include 1.44 g/t gold and 85.98 g/t silver over 6 metres, 1.72% zinc over 10 metres, 1.35 g/t gold, 31.66 g/t silver and 6.59% copper over 7.5 metres and 22.94 g/t gold over 7.5 metres. Everton has an option to earn an initial 50% interest in the property.

Everton President/CEO Andre Audet commented, “Our discovery efforts continue to reward us and our shareholders. Today’s results show these are some of the best holes we’ve seen yet. Combined with our previous results, our geologists’ growing understanding of La Lechoza Prospect has led to a more targeted drilling program intent on discovering higher grades and thicker intercepts. Ultimately, the value of our decision to focus our business activities almost entirely in the Central Dominican Republic has been endorsed by Everton stakeholders. The assays appear to support our decision too.”

View Company Profile

Contact:
Andre Audet
Chairman/CEO
613.241.2332

or Wendy Pemberton
Manager, Corporate Communications
613.241.2332

by Ted Niles

Brigus Gold reports Ontario Gold Assays up to 12.6 g/t over 9.8m

February 28th, 2011

Brigus Gold Corp TSX:BRD announced results from the Contact Zone of its Black Fox Complex in the Timmins Mining District, Ontario. Assays include 12.6 g/t gold over 9.8 metres (including 20.43 g/t over 3.4 metres), 9.04 g/t over 18 metres (19.27 g/t over 7 metres), 3.1 g/t over 9.7 metres, 4.4 g/t over 4.3 metres, 2.97 g/t over 7.4 metres (including 6.45 g/t over 2.2 metres), 11.8 g/t over 5.5 metres (including 24.16 g/t over 2.6 metres) and 3.14 g/t over 10.8 metres.

VP Exploration Howard Bird remarked, “These are some of the best drill results to date from the Contact Zone at the Black Fox Complex. We are particularly encouraged by the high grade gold mineralization over wide intervals. Over the past year, drilling has tripled the strike length of the Contact Zone to 1.2 kilometres with the deepest gold mineralization to date intersected at approximately 350 metres from surface. Significantly, the Contact Zone remains open along strike and at depth. The proximity of the Contact Zone to the company’s operating Black Fox Mine provides an opportunity for rapid project advancement and production growth leveraging the company’s existing infrastructure.”

View Company Profile

Contact:
Wendy Yang
VP Investor Relations
303.524.3203

by Ted Niles

Everton, Brigus report Dom Rep Assays up to 2.46 g/t Gold over 27m

February 2nd, 2011

Everton Resources Inc TSXV:EVR in joint venture with Brigus Gold Corp TSX:BRD announced assay results from the La Lechoza Prospect on the Ampliacion Pueblo Viejo Property in central Dominican Republic. Highlights include 2.46 g/t gold, and 26.73 g/t silver over 27 metres, 2.89 g/t gold and 28.58 g/t silver over 17.5 metres, 0.34 g/t gold, 7.69 g/t silver, 0.45% copper and 0.26% zinc over 33 metres. Everton has an option to earn an initial 50% interest in the property.

President/CEO Andre Audet said, “The ongoing drill program continues to confirm the mineralization discovered at La Lechoza, and points towards new and significant targets defined on the basis of geological, geochemical and geophysical surveys completed in the previous years.”

View Company Profile

Contact:
Andre Audet
Chairman/CEO
613.241.2332

or Wendy Pemberton
Manager, Corporate Communications
613.241.2332

by Ted Niles

Everton, Brigus reports Dom Rep Gold Assays up to 4.76 g/t over 23.4m

January 27th, 2011

Everton Resources Inc TSXV:EVR in joint venture with Brigus Gold Corp TSX:BRD announced results from the La Lechoza Prospect on the Ampliacion Pueblo Viejo Property in central Dominican Republic. Assays include 4.76 g/t gold and 23.07 g/t silver over 23.4 metres, 1.81 g/t gold and 99 g/t silver over 26 metres, and 8.34 g/t silver over 129 metres. Everton has an option to earn an initial 50% interest in the property.

Everton President/CEO Andre Audet commented, “We continue to be very encouraged by the drill results at La Lechoza. We are now achieving some of our best gold, silver and copper drill results on this developing VMS target. We plan to continue drilling this prospect and test at least eight new targets in the next four months.”

View Company Profile

Contact:
Everton Resources Inc
Andre Audet
Chairman/CEO
613.241.2332

or Wendy Pemberton
Manager, Corporate Communications
613.241.2332

by Ted Niles