Wednesday 19th December 2018

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Posts tagged ‘british columbia’

92 Resources expands Quebec lithium potential with new pegmatite discovery

October 25th, 2018

by Greg Klein | October 25, 2018

While remaining focused on its flagship Corvette project, 92 Resources TSXV:NTY announced surface exploration results from another Quebec lithium property. A week of field work at the James Bay-region Pontax project found pegmatite hosting lithium along with tantalum. One outcrop grab sample graded 0.94% Li2O and 520 ppm Ta2O5, while another taken 600 metres away assayed 0.72% Li2O and 87 ppm Ta2O5. A third sample taken another 1.3 kilometres along strike revealed 631 ppm Ta2O5 and an anomalous 0.02% Li2O.

92 Resources expands Quebec lithium potential with new pegmatite discovery

Last summer’s field program found lithium-bearing pegmatite
at surface on 92 Resources’ Pontax property in northern Quebec.

The program followed a review of historic work, satellite imagery and last spring’s tightly spaced airborne magnetic survey. Satellite imagery suggests the presence of several outcrops which might indicate a larger body under thin overburden, the company stated.

Further prospecting brought samples grading up to 141 ppb gold. Forest fires limited work, leaving some geophysical targets yet to be assessed.

The 5,536-hectare property sits in a region hosting other lithium projects including Nemaska Lithium’s (TSX:NMX) Whabouchi mine now under construction about 90 kilometres east.

Last month 92 Resources announced channel sample results from Corvette, another James Bay-region project and the company’s flagship. Forty samples taken from the property’s CV1 pegmatite ranged between 0.02% and 3.85% Li2O, averaging 1.35%. CV1 samples also averaged 109 ppm Ta2O5, while CV2 pegmatite samples averaged 138 ppm Ta2O5.

CV3 and CV4, two recently discovered spodumene-bearing pegmatites, showed grab samples grading 1.61% Li2O and 0.74% Li2O respectively. The company has permitting underway for an initial drill program on CV1 and CV2, and plans follow-up surface work on CV3 and CV4.

Earlier last month 92 Resources signed a 75% option on adjoining claims that make up the eastern area of Osisko Mining’s (TSX:OSK) FCI property. The acquisition would place the entire pegmatite trend currently defined by Corvette’s four known pegmatites in one project.

In April 92 Resources filed a 43-101 technical report on the Golden silica property in eastern British Columbia.  The company has optioned its Hidden Lake lithium project in the Northwest Territories to Far Resources CSE:FAT, which earned an initial 60% on completing last summer’s 10-hole drill campaign.

Conuma Coal Resources president Mark Bartkoski discusses his company’s hire-local policy

October 23rd, 2018

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The new colonialists

October 19th, 2018

China’s overseas expansion raises concerns of influence and arrogance

by Greg Klein

The country boosts its domestic industries through state-sanctioned dumping along with lax environmental, health and safety standards. Aggressive overseas expansion provides money and infrastructure to struggling nations in return for resources and acquiescence. Espionage, counterfeit exports, currency manipulation, economic warfare, intellectual theft—“particularly the systematic theft of U.S. weapons systems”—that’s all part of China’s goal to gain “veto authority over other nations’ economic, diplomatic and security decisions,” according to a recent U.S. study ordered by President Donald Trump.

So it seems a bit anti-climactic to accuse the Red Dragon of arrogance.

But could that become China’s undoing, especially when the arrogance reflects racism? Examples from Kenya reveal a steady stream of racially charged incidents. Among the most recent was ongoing racist abuse from the manager of a Chinese-owned assembly plant. A Chinese company running a much bigger Kenyan operation, the Standard Gauge Railway, faces accusations of practising racial preferences and segregation. Further accounts relay instances of demeaning treatment, even assaults, on African workers in their own countries by Chinese bosses.

China’s overseas expansion brings allegations of influence and arrogance

That might be more a side effect than part of the official agenda, which is alarming in itself. According to Globe and Mail Africa correspondent Geoffrey York, Chinese influence “is sharply increasing in African media, academia, politics and diplomacy.” Earlier this month he reported that a South African newspaper chain backed by Chinese investors fired a columnist who denounced their country’s treatment of Muslims.

“In Zambia, heavily dependent on Chinese loans, a prominent Kenyan scholar was prevented from entering the country to deliver a speech critical of China. In Namibia, a Chinese diplomat publicly advised the country’s president to use pro-China wording in a coming speech. And a scholar at a South African university was told that he would not receive a visa to enter China until his classroom lectures contain more praise for Beijing.”

York pointed to “the huge number of African leaders who flock to the summit of China’s main African organization, the Forum on China-Africa Cooperation (FOCAC),” an annual conference featuring announcements of Chinese financial aid. At last month’s event, President Xi Jinping promised grants, loans and investments totalling $60 billion, equaling an amount pledged three years earlier.

China’s massive African infrastructure projects, built by Chinese companies that often enjoy Chinese government financial support, include railways and hydro-electric power. But Chinese interests also get their hands on Africa’s mineral resources as well as oil and gas reserves, not to mention new markets for Chinese exports. Chinese loans have been criticized for overwhelming African countries with debt.

In the values that it promotes, in the manner that it operates and in the impact that it has on African countries, FOCAC refutes the view that a new colonialism is taking hold in Africa, as our detractors would have us believe.—South African
President Cyril Ramaphosa

Then there’s the political influence. The spectacle of African leaders singing China’s praises has provoked cynicism that South African President and FOCAC co-chairperson Cyril Ramaphosa tried to dispel: “In the values that it promotes, in the manner that it operates and in the impact that it has on African countries, FOCAC refutes the view that a new colonialism is taking hold in Africa, as our detractors would have us believe.”

Those remarks might alternately challenge or support allegations of sycophancy. But York notes China’s success in convincing African countries to drop their support for Taiwan, promoting Chinese language and culture, increasing media ownership with attendant interference, and—laughably, considering the communist state’s journalistic standards—providing “‘training’ for 1,000 African media professionals annually.”

Such are the challenges faced by the developing world. And others too.

From Australia come additional examples. “The hubris of the Chinese Communist Party has reached a great and giddy high,” the Sidney Morning Herald declared last month. International editor Peter Hartcher recounted a meeting between Chinese finance minister Lou Jiwei and Australian treasurer Joe Hockey in which Lou lit a cigarette without asking permission, then badgered the Aussie with big talk that included offers to take over Rio Tinto, buy 15% of the top 200 ASX-listed companies or grab multi-billion-dollar positions in Australian banks.

Hartcher mentioned another incident a few years ago, when “a Chinese minister walked into the Parliament House office of an Australian Liberal Party minister in the course of a negotiation.

“The visitor sat on the sofa, reclined with his hands locked behind his head, and put his feet up on the coffee table. He crossed his ankles casually, the soles of his shoes pointed towards his Australian host. A mere detail, yes, but a telling one. It infuriated the Australian, who was still steaming as he recounted the story years later.”

Then there’s the threats. In a Sydney meeting last year, Hartcher writes, Labor opposition leader Bill Shorten and two of his key people heard Chinese Communist Party official Meng Jianzhu demand their party support an extradition treaty. They objected, largely due to China’s death penalty.

“To get his way, Meng threatened to mobilize the Chinese diaspora living in Australia to vote against the Labor party. The Labor leaders were unbowed and unimpressed. ‘We cannot let these bastards push us around,’ one later remarked to a colleague. Labor continued to oppose the extradition treaty.”

Score one for Down Under determination. Hartcher warns that China could meet its comeuppance once the country’s economic growth stops, possibly in a decade or so. Still, that gives the Middle Kingdom considerable time to expand its influence in acquiescent countries, which need not be limited to the developing world.

Like Canada, for example. Do our politicians match Australian Labor’s resolve? Do our media match the Sidney Morning Herald’s candour? Or would the example of HD Mining International, which planned to staff underground operations at a British Columbia mine exclusively with Chinese workers, typify Canada’s response?

Depending on the enemy

October 10th, 2018

The U.S. calls for new supply strategies to meet economic and defence risks

by Greg Klein

The goal might be summed up by a new slogan: Make America Self-Reliant Again. Or, with a tad less concision: Let’s Stop Relying on an Economic Rival that’s a Potential Military Threat for the Stuff We Need to Compete with an Economic Rival that’s a Potential Military Threat.

A newly released study from the U.S. Secretary of Defense illustrates that absurd dilemma. The dependency runs the gamut from sourcing raw materials to refining them, manufacturing key components, developing R&D, training workers, even setting prices. As the report says, “The central challenge to U.S. prosperity and security is the reemergence of long-term, strategic competition by what the National Security Strategy classifies as revisionist powers. It is increasingly clear that China and Russia want to shape a world consistent with their authoritarian model—gaining veto authority over other nations’ economic, diplomatic, and security decisions.”

The U.S. calls for new supply chain strategies to meet economic and defence risks

But Russia merits little mention in the 146-page document. China comes up again and again as the pre-eminent economic and military threat with a long-term hegemonic strategy.

That strategy’s been very successful, leaving the U.S. sorely unprepared for the resulting risks. Ordered by President Donald Trump in July 2017, the report urges a government-wide program to address the entire range of supply chain challenges.

The 2010 Senkaku incident, dramatic as it was, can be seen as a mere microcosm of a much bigger threat.

“China’s domination of the rare earth element market illustrates the potentially dangerous interaction between Chinese economic aggression guided by its strategic industrial policies and vulnerabilities and gaps in America’s manufacturing and defense industrial base,” the report warns. “China has strategically flooded the global market with rare earths at subsidized prices, driven out competitors, and deterred new market entrants. When China needs to flex its soft power muscles by embargoing rare earths, it does not hesitate, as Japan learned in a 2010 maritime dispute.”

It was a lesson learned by other countries too. The report describes rare earths as “critical elements used across many of the major weapons systems the U.S. relies on for national security, including lasers, radar, sonar, night vision systems, missile guidance, jet engines, and even alloys for armored vehicles.”

Rare earths figure prominently in the U.S. list of 35 critical minerals drafted last February and confirmed in May. American dependency was further highlighted when the country dropped rare earths from a revised list of tariffs on Chinese imports announced in September.

China’s soft power hardball has targeted other American allies as well, waging “aggressive economic warfare” against South Korea after the country installed an American air defence system. Other examples of “economic coercion” include “a ban on Philippine bananas over territorial disputes in the South China Sea; the aforementioned restriction of rare earth exports to Japan following the Senkaku Islands dispute in 2010; persistent economic intimidation against Taiwan; and the recent ceding of a Sri Lankan port.”

China can play nice too. But at a price. The country invests heavily in developing countries, often building infrastructure “in exchange for an encumbrance on their natural resources and access to their markets.”

As for Chinese electronics exports, they “lack the level of scrutiny placed on U.S. manufacturers, driving lower yields and higher rates of failures in downstream production, and raising the risk of ‘Trojan’ chips and viruses infiltrating U.S. defense systems.”

Technological expertise becomes a strategic weapon too. “As part of its industrial policy aggression, China has forced many American companies to offshore their R&D in exchange for access to the Chinese market.”

With an advanced-stage rare earths project in northern Quebec as well as advanced-stage tantalum-niobium in southern British Columbia, Commerce Resources TSXV:CCE president Chris Grove keeps tabs on Canada’s neighbour. “People in Washington tell me the anxiety level on these issues has never been higher,” he notes.

Here’s the world’s biggest military and they’re saying, ‘We need Chinese stuff to make it all work?’ That’s really for most Americans an absolutely untenable and unbelievable position of weakness.—Chris Grove,
president of Commerce Resources

“Apart from the trade imbalance between the U.S. and China, there’s the vulnerability of the U.S. military. Here’s the world’s biggest military and they’re saying, ‘We need Chinese stuff to make it all work?’ That’s really for most Americans an absolutely untenable and unbelievable position of weakness.”

Sources in Washington encouraged Grove to apply for a research grant from the U.S. Defense Logistics Agency. If successful, the application would bring up to $3 million to further metallurgical progress on his company’s Ashram rare earths project, advancing a potential source in a stable and allied country.

That would complement one of the report’s key recommendations, to “diversify away from complete dependency on sources of supply in politically unstable countries who may cut off U.S. access; diversification strategies may include re-engineering, expanded use of the National Defense Stockpile program, or qualification of new suppliers.”

Other recommendations include creating an industrial policy that supports national security, working with allies and partners on industrial development, expanding industrial investment, addressing manufacturing and industrial risk within the energy and nuclear sectors, encouraging home-grown scientific expertise and occupational skills, and exploring next generation technology for future threats.

In ordering the study, Trump stated the loss of key companies, over 60,000 American factories and almost five million manufacturing jobs since 2000 “threatens to undermine the capacity and capabilities of United States manufacturers to meet national defense requirements and raises concerns about the health of the manufacturing and defense industrial base.”

Cross-country events mark Investor Education Month

October 2nd, 2018

by Greg Klein | October 2, 2018

Following the ounce-of-prevention principle, securities commissions across Canada plan a number of initiatives to encourage smarter, safer investment strategies. A month of events begins with World Investor Week, in which Canadian regulators join the International Organization of Securities Commissions from October 1 to 7. Here’s an outline of this country’s events from province to province.

British Columbia
The B.C. Securities Commission will release new research on millennials this month, along with new tools to help people understand their investment returns. The BCSC also plans design updates to InvestRight.org to improve its efficacy.

Cross-country events mark Investor Education Month

Alberta
A digital education campaign called Spot the Odd will raise awareness of the Alberta Securities Commission’s free resources as well as encourage financial literacy and fraud awareness. A number of activities across the province will include Don’t Get Tricked, to be held in Calgary on October 17.  The ASC provides other resources on CheckFirst.ca.  

Saskatchewan
The province’s Financial and Consumer Affairs Authority has a cryptocurrency awareness campaign slated for Facebook, Twitter, the FCAA website and YouTube. In addition, businesses planning to use cryptocurrencies are invited to discuss their project with the FCAA to learn whether it falls under securities legislation.

Manitoba
The Manitoba Securities Commission will formally launch MoneySmartManitoba.ca to promote financial literacy and planning. The MSC will also take to the Twittersphere with news, tips and strategies for investors.

Ontario
The Ontario Securities Commission plans social media chats on Twitter and Facebook with the hashtag #IEM2018. The OSC also hosts GetSmarterAboutMoney.ca, plans a telephone townhall for October 10, presents public events around the province with OSC in the Community and further encourages awareness through an investor newsletter.

Participating in World Investor Week helps promote investor education and protection both locally and globally.—Tyler Fleming,
Ontario Securities Commission

Quebec
L’Autorité des marchés financiers will release results of its fourth Financial Awareness Index, measuring the public’s knowledge and use of financial products and services. The AMF will also present the third edition of its Talking Money in Class! contest for high school teachers and take part in the Quebec Seniors’ Fair.

New Brunswick
The Financial and Consumer Services Commission will present online info with special emphasis on initial coin offerings. For more tips on fraud, investors may visit fcnb.ca and follow the commission on Facebook and Twitter. The Fortune online trivia game allows investors to compete with others across the province to learn more and win prizes.

In addition to all that, the Canadian Securities Administrators umbrella group offers its own online tools and resources. The CSA invites the public to take advantage of Investor Education Month and World Investor Week by following @CSA_News on Twitter and @CSA.ACVM on Facebook.

Read: Regulators emphasize innovation and deterrence as financial sanctions fail.

Overwhelming majority puts Quebec in new hands, New Brunswick still deadlocked

October 1st, 2018

by Greg Klein | October 1, 2018

Overwhelming majority puts Quebec government in new hands

CAQ incoming premier Francois Legault argued against unacculturated immigrants,
made popular funding promises and vowed to cut taxes. (Photo: Coalition Avenir Québec)

 

Updated Quebec results (with 2014 figures in parentheses)

  • Coalition Avenir Québec: 74 seats, 37.4% of the popular vote (21 seats, 23%)
  • Quebec Liberal Party: 32 seats, 24.8% (68 seats, 41.5%)
  • Québec Solidaire: 10 seats, 16.1% (3 seats, 7.6%)
  • Parti Québécois: 9 seats, 17% (28 seats, 25.4%)
  • Others: 0 seats, 4.6% (5 seats, 2.4%)

 

A seven-year-old party jumped from third place to government status as the Coalition Avenir Québec won the October 1 provincial election. Leading in a majority of seats half an hour after polls closed, the CAQ pushed the incumbent Liberals to second place, leaving the former official opposition Parti Québécois struggling to stay above fourth spot. Easily winning his riding of L’Assomption was incoming premier Francois Legault, a CAQ co-founder who previously created Air Transat and served as a PQ government minister. His CAQ has attracted disaffected Liberals as well as Péquistes.

PQ leader Jean-Francois Lisee lost his seat to a Québec Solidaire challenger.

Overwhelming majority puts Quebec government in new hands

Mining issues held little prominence as debate focused heavily on immigration but sidelined independence. Spending promises flowed freely with health care, education and child care giveaways coinciding with CAQ promises to cut taxes.

But just one week before the campaign’s official start date, the Liberal government announced $185 million of provincial money for the privately held BlackRock Metals’ iron ore-vanadium-titanium open pit development in the northern riding of Ungava. The money consisted of $100 million in loans and an $85-million investment, part of a total package of $1.3 billion attracted to the project. The Liberals also promised $63 million to build energy infrastructure in the Chicoutimi riding that would host BlackRock’s secondary processing facility.

Ungava’s Liberal incumbent placed third while the CAQ narrowly beat the PQ in a very tight three-way contest. In Chicoutimi, the CAQ won a strong victory over the PQ incumbent.

Last May Premier Philippe Couillard joined Prime Minister Justin Trudeau to announce $60 million in federal funding for an Alcoa NYSE:AA/Rio Tinto NYSE:RIO aluminum smelter to be built in the overlapping federal riding of Chicoutimi-Le Fjord. Three days later Trudeau called a by-election, only to see a Conservative defeat his Liberal incumbent.

The Quebec government invests heavily in projects ranging from junior exploration to operating mines through the Ressources Québec subsidiary of Investissement Québec. In August Legault said he would cut bureaucracy at Investissement Québec.

Quebec’s March budget posted a $1.3-billion surplus, but the province receives equalization payments that came to $11.8 billion this year and will rise to $13.3 billion in 2019. Currently the entire amount comes from the western provinces. Legault opposed the Energy East pipeline proposal from Alberta to New Brunswick.

Pundits might wonder to what extent the CAQ’s success depended on its proposal to expel unacculturated immigrants. But any criticism of la province spéciale will have to be muted, even if the plan calls for unwanted foreigners to be packed off to Anglo Canada.

The PQ’s demotion hardly spells the end of separatism now that the party shares the independence vote with QS and possibly the CAQ, which has equivocated on the subject.

As for last week’s New Brunswick election, results remain in limbo. With 22 seats, the Conservatives edged out the incumbent Liberals by a single riding. Speculation focuses on either party making a deal with the People’s Alliance or the Greens, which won three seats each.

The Green result triples its N.B. legislative standing, continuing the party’s progress in Canada. Last June the Ontario riding of Guelph elected that province’s first Green. Canada now has eight Greens elected provincially (three in N.B., three in B.C., and one each in Ontario and Prince Edward Island), along with one elected federally in B.C. In B.C.’s legislature, the party holds the balance of power under an agreement with the New Democratic Party minority government.

Geoscience BC maps Greenwood’s mineral potential

September 28th, 2018

by Greg Klein | September 28, 2018

An historic British Columbia mining camp comes under additional scrutiny with new research released September 28. Geoscience BC’s latest report and 1:50,000-scale map focus on the province’s south-central Greenwood district, about 500 kilometres east of Vancouver.

Mining on the 800-square-kilometre area dates back to the late 1880s. Some 26 past-producers have given up more than 1.2 million ounces of gold and over 270,000 tonnes of copper, along with silver, lead and zinc, according to the independent non-profit organization. With a number of juniors currently working to find more mineralization, this research “should bolster the recent revival of mineral exploration activity in the Greenwood area,” said Geoscience BC VP of minerals and mining Bruce Madu.

Geoscience BC maps Greenwood’s mineral potential

Mining may one day return to the once-busy Greenwood camp.
(Photo: Geoscience BC)

Among the active companies is Grizzly Discoveries TSXV:GZD, which holds about 72,840 hectares of Greenwood turf. Under a 75% earn-in, Kinross Gold TSX:K has been drilling for gold in the Midway area of Grizzly’s holdings. Grizzly has been conducting geophysics and surface exploration on its Robocop cobalt-copper-silver claims and plans drilling for three other Greenwood targets.

Just across the international border, Kinross operated the Kettle River-Buckhorn gold mine until last year, extracting 1.3 million ounces over nine years.

Another of Greenwood’s large landholders is Golden Dawn Minerals TSXV:GOM, which attributes 31 historic mines to its 15,400-hectare portfolio.

The Greenwood report might help illuminate other parts of B.C. as well. “This area could hold the key to a better understanding of mineral deposits that formed during key geological events that span almost 200 million years,” Madu added.

Working with First Nations, local communities, governments, academia and the resource sector, Geoscience BC opens its research to the public “with the aim of encouraging exploration, economic activity and informed land use decisions.” Most funding comes from the provincial government.

The organization’s other mapping projects in the area include:

See Geoscience BC’s Earth Science Viewer.

Digital addictions reach new dimensions in British Columbia

September 27th, 2018

by Greg Klein | September 27, 2018

Maybe this represents a distinctly West Coast weirdness inapplicable to the real world. If not and the trend grows, however, the engagement diamond trade looks doomed, as does procreation. But while waiting for our species to die out, we should be heartened by increased demand for rare earths, tantalum and other necessities of the electronic age.

Digital addictions reach new dimensions in British Columbia

B.C. has long been liberal on issues of sexual preference.

A BC Hydro study found its customers devote an average of 4.7 hours a day, 33 hours a week and 132 hours a month—about a third of their waking time—with the electronic love of their lives, smartphones and tablets. So strong is the passion for smartphones that it can take precedence over human relationships.

“Over a quarter of British Columbians aged 25 to 54 would rather give up seeing their spouse or partner for a day than give up their smartphone or tablet for 24 hours,” the provincial utility reports. “This jumps to one-third for those aged 55 to 64.”

Nor does the preference preclude intimacy. “One-fifth of British Columbians admit to sleeping with their smartphone in bed—and 70% of those aged 18 to 24 at least occasionally sleep with their device.”

Not surprisingly, then, nearly a third of the province between 18 and 24 would give up home heating on a cold winter day rather than their smartphone. Same thing for a day’s pay in the 18-to-34 age bracket.

Maybe most startling of all, “two-thirds of British Columbians would be willing to forgo their morning coffee for two days than their smartphone or tablet for the same time frame.”

Although the BC Hydro report focuses on the implications of electronic devices for electricity consumption, there’s no mention of even greater demand from electric vehicles.

A separate subject, of course, concerns supply of the materials that make up electronic devices. Last year the U.S. Geological Survey broke down the smartphone’s ingredients to demonstrate society’s dependency on wide-ranging and often insecure supply chains. Among them are rare earths from China and tantalum from Rwanda and the Democratic Republic of Congo, both sources of conflict metals. Heightened supply concern has brought an increasing American government focus on critical minerals, while the potential effects of a U.S.-China trade war threaten to exacerbate the situation.

Tsilhqot’in chairperson Joe Alphonse reacts to a court decision allowing work on B.C.’s New Prosperity project

September 26th, 2018

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Russell Hallbauer of Taseko Mines comments on a court decision allowing an exploration permit for B.C.’s New Prosperity project

September 24th, 2018

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