Wednesday 7th December 2016

Resource Clips


Posts tagged ‘british columbia’

Diamond explorer Dunnedin Ventures to create gold-copper spinco

November 23rd, 2016

by Greg Klein | November 23, 2016

With a gold-copper asset in British Columbia and a diamond project with gold prospects in Nunavut, Dunnedin Ventures TSXV:DVI proposes to distribute its portfolio between two companies. On November 23 Dunnedin announced plans to spin out the non-diamond assets into a new listing.

Diamond explorer Dunnedin Ventures to create gold-copper spinco

The company currently holds the 60,000-hectare Kahuna diamond project in Nunavut, where an inferred resource for two kimberlites totals 4.02 million carats, using a +0.85 mm cutoff. Till samples collected last year also showed anomalous gold of 50 ppb or more in 84 of 129 samples.

Meanwhile previous drill results from Dunnedin’s 4,000-hectare Trapper porphyry project in northwestern B.C. showed strong gold intercepts, with silver, lead and zinc showings as well.

“We believe that separate corporate vehicles for diamond and metal assets will yield the best long-term value to shareholders,” said CEO Chris Taylor.

Subject to approvals, Trapper and rights to gold at Kahuna would go to a newly created subsidiary with working capital for exploration. The new company’s shares would be distributed to Dunnedin shareholders on a pro rata basis. The new company would apply for a TSXV listing.

Dunnedin shareholders will vote on the proposed spinout early next year.

Dunnedin also plans to accelerate expiration of over six million warrants to December 23. Should all warrants be exercised, proceeds would come to about $632,708.

Read more about Dunnedin Ventures.

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

Conuma Coal Resources president Mark Bartkoski remarks on stakeholder support as a former Walter Energy mine re-opens in B.C.

October 28th, 2016

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Diamond explorer Dunnedin Ventures ponders its B.C. gold-copper porphyry project

October 26th, 2016

by Greg Klein | October 26, 2016

Diamond explorer Dunnedin Ventures ponders its B.C. gold-copper porphyry project

Primarily focused on Nunavut diamond exploration, Dunnedin Ventures TSXV:DVI has launched a technical and strategic review of its Trapper gold project in northwestern British Columbia.

The 40-square-kilometre property lies adjacent to Brixton Metals’ (TSXV:BBB) Thorn project and hosts the Ring zone “with over 10 kilometres of strike surrounding a porphyry centre, with gold-rich polymetallic mineralization drilled across 2.2 kilometres and associated surface copper porphyry showings,” Dunnedin stated.

Over $4 million of exploration included a 42-hole, 8,580-metre program completed in 2011. Some highlights showed:

Hole TG-11-011

  • 1.71 g/t gold, 5.6 g/t silver, 1.01% lead and 0.25% zinc over 34.11 metres, starting at 106.89 metres in downhole depth
  • (including 92.8 g/t gold, 18.8 g/t silver, 0.13% lead and 0.12% zinc over 0.41 metres)
  • (and including 3.9 g/t gold, 27 g/t silver, 9.11% lead and 0.91% zinc over 3.39 metres)

Hole TG-11-038

  • 1.68 g/t gold, 1.8 g/t silver, 0.02% lead and 0.07% zinc over 15 metres, starting at 122.5 metres
  • (including 5.08 g/t gold, 4.4 g/t silver, 0.05% lead and 0.13% zinc over 4.23 metres)
  • (which includes 21.8 g/t gold, 11.9 g/t silver, 0.15% lead and 0.36% zinc over 0.62 metres)

Hole TG-11-039

  • 1.01 g/t gold, 2.3 g/t silver, 0.02% lead and 0.13% zinc over 30 metres, starting at 67.5 metres
  • (including 2.19 g/t gold, 2.7 g/t silver, 0.06% lead and 0.3% zinc over 2.5 metres)
  • (and including 2.98 g/t gold, 4 g/t silver, 0.04% lead and 0.09% zinc over 2.5 metres)
  • (and including 2.64 g/t gold, 2.5 g/t silver and 0.35% zinc over 2.34 metres)

Hole TG-11-040

  • 1.19 g/t gold, 1.8 g/t silver, 0.01% lead and 0.07% zinc over 27.5 metres, starting at 132.5 metres
  • (including 11.15 g/t gold, 5.7 g/t silver, 0.03% lead and 0.17% zinc over 2.5 metres)

True widths weren’t available.

“The property overlies an unusually gold-rich porphyry copper complex including drill-ready copper porphyry and gold-rich semi-massive sulphide stockwork,” commented CEO Chris Taylor. “Dunnedin is conducting a comprehensive review of this 100%-owned project to determine how best to unlock its value for shareholders.”

The company has also been finding gold on its flagship Kahuna diamond project, with evidence from 2015 till sampling—just recently evaluated for gold—and from historic rock samples.

This year’s program collected 10 times as many till samples as 2015, gathering 1,111 samples to be analyzed for diamond indicator minerals and gold. The company also staked another 25,000 hectares, increasing Kahuna to about 60,000 hectares.

Read more about Dunnedin Ventures.

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

Commerce Resources announces successful close of 2016 field season

October 20th, 2016

by Greg Klein | October 20, 2016

A series of hydrogeological tests concluded the 2016 field season as Commerce Resources’ (TSXV:CCE) Ashram rare earths deposit moves towards pre-feasibility. Last month the company finished the year’s definition drilling and environmental data collection on the northeastern Quebec project.

“With the three main field objectives now completed, drill core processing and sample collection for analysis are the next steps,” the company stated.

Commerce Resources announces successful close of 2016 field season

Still to come are assays from the season’s
14-hole, 2,000-metre, near-surface drill campaign.

The hydrogeological data will help evaluate sub-surface water flow and slope stability of different pit shell configurations. The environmental program included surface water and groundwater samples for baseline data collection and related studies. Last June the Quebec government granted Commerce $300,000 towards studies to optimize tailings management.

The season’s drill program sunk 14 holes totalling about 2,000 metres on the deposit’s northern, western and southern margins. While assays are pending, “initial geologic review and portable XRF data indicates significant mineralization is present over appreciable widths in several holes,” Commerce added. The goal is to expand and upgrade the project’s 2012 high-grade, near-surface resource.

The company keeps busy on a number of fronts as the project advances. Metallurgical studies have simplified Ashram’s flowsheet and shown a potential byproduct in fluorspar. Ashram’s rare earth elements mostly appear in monazite and to a lesser extent bastnasite and xenotime, minerals that dominate commercial extraction processes. Ashram’s REE distribution shows enrichment in the critical and magnet feed elements neodymium, praseodymium, europium, terbium, dysprosium and yttrium.

While rare earths remain the company’s focus, a sampling program on the same property but one kilometre from the deposit brought a “spectacular” result of 5.9% niobium pentoxide last month. Forty out of 64 samples graded above 0.5% Nb2O5, with 16 surpassing 1%. Significant tantalum, phosphate and rare earth oxide grades were also found.

In August the company closed a private placement of $551,040 and the second tranche of a short-form prospectus that totalled nearly $1.45 million.

Commerce also holds the Blue River tantalum-niobium deposit in southeastern British Columbia, which reached PEA in 2011 and a resource update in 2013.

Read more about Commerce Resources.

Copper North Mining drills porphyry copper-gold in northern B.C.

October 20th, 2016

by Greg Klein | October 20, 2016

Having released a PEA for its Carmacks copper-gold-silver project in the Yukon the previous week, Copper North Mining TSXV:COL reported drill results from the northern British Columbia Thor project on October 20. After two previous holes on the 20,000-hectare property’s Thor West area came up dry, a Thor East hole did better:

Hole TH16-01

  • 0.14% copper and 0.045 g/t gold over 107.6 metres, starting at 11.65 metres in downhole depth
  • (including 0.23% copper and 0.069 g/t gold over 37.13 metres)
  • (which includes 0.28% copper and 0.087 g/t gold over 23.85 metres)

True widths were unavailable.

Copper North Mining drills porphyry copper-gold in northern BC

Samples from the property’s Thor East area
show oxide-weathered granodiorite.

Traces of copper continue beyond that intercept to the end of the hole at 169.16 metres, the company stated. “The transition from stronger mineralization and quartz-veining at the top of the hole to weaker copper mineralization and phyllic alteration at depth suggests that drill hole TH16-01 may flank a mineralized porphyry centre.”

Next steps would include ground surveys at Thor East and evaluating multiple geochemical targets and alteration zones, the company added. Field work has already identified multiple targets over a four-by-six-kilometre area southeast of TH16-01.

“The large area of porphyry alteration and gossan zones remain an attractive exploration target,” commented president/CEO Harlan Meade. “The Thor project provides Copper North with an opportunity to explore for porphyry copper-gold type mineralization in the slopes and valleys 20 kilometres to the south of the Kemess South mine and mill complex.”

The former mine now lies within AuRico Metals’ (TSX:AMI) Kemess Underground gold-copper-silver property.

Copper North holds a 100% option on Thor, which has a road and power line passing through the property.

The company closed private placements totalling $279,050 this month.

Read more about Copper North Mining.

Golden Dawn Minerals to expand southern B.C. portfolio of past-producers

October 18th, 2016

by Greg Klein | October 18, 2016

Golden Dawn Minerals to expand southern B.C. portfolio of past-producers

Several former mines dot southern B.C.’s Greenwood camp.

 

Another 10,400 hectares with former mines would increase Golden Dawn Minerals’ (TSXV:GOM) presence in southern British Columbia’s historic Greenwood mining camp. Under a binding letter of intent announced October 18, the company would acquire Kettle River Resources, a subsidiary of New Nadina Explorations TSXV:NNA. Golden Dawn already has a portfolio of former mines within a 15-kilometre radius of its 200-tpd Greenwood mill, about 500 kilometres east of Vancouver.

The new acquisition would include the Tam O’Shanter project, the Sylvester K zone, some tailings sites, the former Phoenix mine and the Bluebell/Oro Denoro Eholt properties.

Golden Dawn has previously explored Tam O’Shanter along with a contiguous property, identifying an inferred resource for both.

Phoenix was mined between 1900 and 1978, producing over a million ounces of gold, 18 million ounces of silver and 575 million pounds of copper. Golden Dawn sees potential for new copper-gold finds.

Golden Dawn Minerals to expand southern B.C. portfolio of past-producers

Golden Dawn’s current portfolio includes the Greenwood mill.

The Sylvester K zone has a strike length of about 150 metres, with thickness up to 12 metres. Mining in 1989 extracted a reported 5,090 tonnes of material averaging 5.1 g/t gold.

Three tailings sites are associated with Phoenix. Metallurgical studies suggest re-grinding and cleaner flotation might offer potential for a copper-gold concentrate.

The Bluebell/Oro Denoro Eholt property has undergone exploration and mining since the 1890s, with a number of recent showings. Among the results, trenching at the Minnie Moore area in 2007 found silver grading 414 g/t over 8.5 metres, 1,044 g/t over 6.2 metres and 432 g/t over 5.8 metres. A drill core assay showed 77.3 g/t silver over 5.3 metres.

The properties come with a database representing 120 years of mining and exploration records.

Subject to a 90-day due diligence period and approvals, the package would cost Golden Dawn a non-refundable $80,000 on signing and another $15,000 by November 26. Those deposits would form part of a $1-million payment due on closing. New Nadina would also get $600,000 in Golden Dawn shares and a 1% NSR, half of which may be bought back. The companies expect to consummate by about January 31.

Late last month Golden Dawn issued a progress report on its work to reactivate the former May Mac, Lexington and Golden Crown mines, along with the nearby Greenwood mill. Trial mining could begin at Lexington in Q2 or Q3 next year, the company reported. Golden Crown, another gold-copper past-producer, could re-open in Q2 2018.

Golden Dawn has also been drilling May Mac and the Amigo past-producer about a kilometre south. The company expects to close a metals streaming deal this month.

Roderick Haig-Brown: A legendary figure in conservation and resource education

October 11th, 2016

by Stewart Muir | posted with permission of Resource Works | October 11, 2016

Forty years ago, British Columbians lost a towering figure of resource wisdom with the passing of this author and educator. Could his example be helpful to those caught up in today’s resource culture conflicts?

October 9 marked the 40th anniversary of the death of Roderick Haig-Brown, a legendary British Columbia angler and conservationist who was a prolific author and television personality in the mid-20th century. His name remains well known because, among other reasons, it is on a provincial park and his home in Campbell River is a museum. He was also a logger, an administrator, a university chancellor and a member of the International Pacific Salmon Fisheries Commission.

Roderick Haig-Brown A legendary figure in conservation and resource education

Roderick Haig-Brown: 1908-1976

Here is what Haig-Brown said of his work in conservation:

I have been, all my life, what is known as a conservationist. It seems clear beyond possibility of argument that any given generation of men can have only a lease, not ownership, of the earth; and one essential term of the lease is that the earth be handed down on to the next generation with unimpaired potentialities. This is the conservationist’s concern.

Among a lifetime of legendary accomplishments, Haig-Brown’s 1961 book The Living Land: An Account of the Natural Resources of British Columbia might not stand out. Yet it is a remarkable work. In addition to documenting the natural wealth of the province, The Living Land also defined the conservation imperative in the context of meeting human needs through natural resources.

Haig-Brown was writing at a time when resource management as we know it today was being invented and British Columbia was on the cutting edge of developing responsible theory and practice.

Conservation is a dynamic, not a static, conception, he wrote:

It does not mean simply hanging onto things, like a miser to his gold. It means putting them to use, seeking a valuable return for them and at the same time ensuring future yields of at least equal value. It means having enough faith in the future to respect the future and the needs of future people; it means accepting moral and practical restraints that limit immediate self-interest; it means finding a measure of wisdom and understanding of natural things that few peoples have attained…

Haig-Brown had a reputation for tempering reason with passion. His approach was “infused with knowledge and tempered by responsibility, decency and fair play,” and this is the underpinning of The Living Land. Those with businesses, professions and trades in the resource sector are typically well aware of the need to take a responsible approach to their work, and they would be unlikely to find much to disagree with in Haig-Brown’s body of work. Issues like First Nations self-reliance and climate were, in their specifics, beyond the scope of his work and his times. The moral compass Haig-Brown possessed was a durable instrument that served him reliably on all the challenges he encountered. Those concerned with today’s resource issues can still find meaning in The Living Land.

Haig-Brown published The Living Land as a way to share his resource knowledge with the general public. Since Haig-Brown’s passing in 1976, conservation has been overshadowed by the very different influence of environmentalism.

Fear, distrust and a sustained attack on all of our democratic institutions are the primary tools of too much modern environmental activism. These tools are deployed with considerable success. Cynicism and subterfuge are routinely used to advance agendas that harm working people and do little if anything for the environment.

Haig-Brown would have rejected this strain of modern eco-activism just as passionately as he loved and conserved natural places.

Taking a conservationist’s approach is one way for resource people to engage constructively with the public. Haig-Brown pioneered an approach that we could do worse than learn from.

Resource Works is a non-profit society that encourages “respectful, fact-based dialogue on responsible resource development in British Columbia.” Executive director Stewart Muir is an award-winning author and journalist who contributed to The Sea Among Us: The Amazing Strait of Georgia. This book won the Vancouver Aquarium Coastal Ocean Award for Conservation and Research Communication, the Roderick Haig-Brown Regional Prize and the American Fisheries Society’s Haig-Brown Award, as well as being shortlisted for the Basil Stuart-Stubbs Book Prize and the Bill Duthie Booksellers’ Choice Award.

Golden Dawn Minerals updates program to revive historic B.C. camp

September 28th, 2016

by Greg Klein | September 28, 2016

A September 28 progress report shows Golden Dawn Minerals TSXV:GOM advancing plans to re-open three former mines and a mill in southern British Columbia. The company’s Greenwood precious metals project consists of the May Mac, Lexington and Golden Crown past-producers, all within 15 kilometres of the project’s 200-tpd Greenwood mill. Golden Dawn closed the acquisition of Lexington, Golden Crown and the gravity-flotation plant earlier this month.

Golden Dawn Minerals updates program to revive historic B.C. camp

Golden Dawn hopes to begin trial mining
at the Lexington past-producer next year.

Work has begun on the mill’s transition from eight years of care and maintenance to active service, with plans calling for bulk samples from May Mac, a former silver-gold mine, to be processed early next year. Should all go to schedule, trial mining would begin at Lexington in Q2 or Q3 next year and Golden Crown would re-open in Q2 2018. Both were gold-copper operations.

The company has a permit application pending to de-water Lexington. Rehab has begun on three adits at May Mac, prior to underground drilling. Surface drilling will also test May Mac’s historic Skomac vein system. On completion of surface and underground exploration, May Mac bulk sampling would begin in Q1.

At the company’s Amigo past-producer about a kilometre south of May Mac, drilling has been underway since the beginning of September, with assays pending. Those two mines should undergo around 2,500 metres by year-end.

The company expects to close a gold streaming deal for the Lexington and Golden Crown mines in late October. Under terms announced in a July LOI, the agreement would bring Golden Dawn US$3 million on signing and another US$1 million on reaching a production target.

Two weeks ago the company closed a private placement first tranche of $696,324. Earlier this month Golden Dawn announced a convertible security would net the company $2.4 million to help finance the project acquisition.

The assets are located near the town of Greenwood, about 500 kilometres east of Vancouver.

B.C. coal mine comes back as province and new owner fast-track restart

September 26th, 2016

by Greg Klein | September 26, 2016

More than two long years after shutting down and less than two short weeks after its acquisition closed, northeastern British Columbia’s Brule coal mine is moving from care and maintenance to production. The province’s Ministry of Energy and Mines confirmed the restart on September 23.

Along with Wolverine and Willow Creek, Brule’s one of three regional coal assets picked up by privately owned Conuma Coal Resources from Walter Energy Canada, a holding company for U.S.-based Walter Energy Inc. The latter entity shut down the Peace River-region projects in April 2014, throwing 695 people out of work. Walter Energy Inc was one of a number of coal giants that filed for bankruptcy the following year.

B.C. coal mine comes back as province, new owner fast-track restart

Conuma will act as a contract miner for Walter until permits can be transferred, according to the province. The re-start should eventually restore about 170 jobs. Plans call for the mine to be “fully staffed and operating at full production levels by December 2016,” the ministry stated. “The company estimates it will produce two million tons of metallurgical coal annually from the Brule mine.”

The open pit deposit has “proven to yield a very strong and highly sought-after metallurgical-quality coal,” added Conuma president Mark Bartkoski. “The co-operation between the previous owners, the local communities, numerous First Nations groups, the ministry and Conuma was unprecedented and will quickly result in blessing numerous families with employment opportunities.”

The company also proposes to bring Wolverine back to life. Timing depends on Conuma’s “ability to complete the necessary work to satisfy all its permit requirements,” the province stated.

A new company led by experienced coal miners, Conuma benefits from Walter’s debt and coal’s resurgence, co-owner Ken McCoy told the Tumbler Ridge News. “When Walter bought this property, they bought it right at the very top of the market. They paid over $3 billion for it, and as soon as they bought it, it started going down, down, down. If you look at the graph, we bought it right at what we think is the bottom. Now the market has turned up. In the last two months, the price of this coal has gone up significantly, which justifies us to come in and open these coal mines up.”

Conuma is a member of the ERP Group of Companies built around West Virginia-based ERP Compliant Fuels, which bundles reforestation carbon credits with coal sales “to produce a ‘compliance instrument’ effectively reducing carbon dioxide emissions.” But Conuma has no carbon offset plans for the time being, McCoy told the Tumbler Ridge News.

University of British Columbia research associate Murray Allan discusses the Yukon-Alaska Metallogeny project

September 23rd, 2016

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