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Posts tagged ‘Chieftain Metals Inc (CFB)’

MOU offers Americans scrutiny over B.C. mining projects

November 25th, 2015

by Greg Klein | November 25, 2015

British Columbians and Alaskans will seek involvement in each other’s mining proposals following a memorandum of understanding signed November 25. The MOU calls for governments and natives to take part in environmental assessment and permitting processes in their neighbour’s jurisdiction. But with an emphasis on trans-boundary waters, which mostly would consist of rivers and streams originating in B.C., Canadian projects might get more scrutiny than those next door.

B.C.-Alaska MOU pledges cross-border co-operation on mining and environment

The memo follows visits by B.C. mines minister Bill Bennett and Alaska lieutenant-governor Byron Mallott to each other’s turf. Bennett’s trips, following the tailings dam collapse at Imperial Metals’ (TSX:III) Mount Polley mine, tried to reassure Alaskans about B.C. environmental practices.

In August 2014, just weeks after the disaster, Alaska’s Department of Natural Resources asked Canada’s Environmental Assessment Agency for participation in the approval process for Seabridge Gold’s (TSX:SEA) KSM gold-copper project near the state border. Provincial approval had already been granted the previous month. The federal permit came through last December.

Other prominent projects in B.C.’s northwestern corner include:

  • Galore Creek, a NovaGold Resources TSX:NG/Teck Resources TSX:TCK.A and TCK.B copper-gold-silver project that reached pre-feasibility in 2011

  • Schaft Creek, a Copper Fox Metals TSXV:CUU/Teck copper-gold-molybdenum-silver project that achieved feasibility in 2013

  • Chieftain Metals’ (TSXV:CFB) Tulsequah Chief zinc-copper-gold project, now permitted for construction

  • Pretium Resources’ (TSX:PVG) Brucejack gold-silver project, slated for 2017 commercial production

  • Imperial’s Red Chris copper mine, which achieved commercial production in July

The MOU sets no timeframe for achieving its goals. Money for the cross-border initiative would come from existing government budgets, with the possibility of additional “alternate public or private sector funding.”

Bucking the trend

November 6th, 2012

Brixton Metals finds market favour for its B.C. silver-gold-base-metals project

by Greg Klein

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Equity financing plunged 41%. Market caps plummeted 43%. Those were the dismal numbers released November 5 by PricewaterhouseCoopers LLP for the top 100 TSX Venture mining juniors for the year ending June 30. Of course, the Junior Mine 2012 report surprised no one. Instead—and despite its cautiously optimistic outlook for 2013—PwC merely confirmed the word on the street and the mood in the boardrooms.

Brixton Metals finds market favour for its B.C. silver-gold-base-metals project

Phase II drill results released November 5 boosted Brixton Metals’ stock price considerably.

But not for all companies. The same day an announcement by Brixton Metals TSXV:BBB sent its stock from a November 5 open of $0.15 to a close of $0.20. The next day the price hit $0.26 before settling back at $0.20. Brixton’s news came from its Thorn Property, a 28,000-hectare silver-gold-polymetallic project in northwestern British Columbia.

“What we’re showing is evidence of a system that has significant scale potential from what most people previously thought was a small, narrow, high-grade system,” says chairman/CEO Gary Thompson. “I think it’s clear now that we’re dealing with about a 150-metre zone, about 100 metres of true width, which is quite substantial.”

Assays from hole THN 12-83 show:

  • 165.3 grams per tonne silver, 1.37 g/t gold, 0.11% copper, 0.92% lead and 1.25% zinc for a gold-equivalent of 5.67 g/t or a silver-equivalent of 314.59 g/t over 150.5 metres
  • (including 284.15 g/t silver, 1.49 g/t gold, 0.12% copper, 1.31% lead and 1.78% zinc for a gold-equivalent of 8.41 g/t or a silver-equivalent of 466.28 g/t over 73.7 metres)
  • (including 725.55 g/t silver, 2.01 g/t gold, 0.13% copper, 3.33% lead and 3.68% zinc for a gold-equivalent of 18.89 g/t or a silver-equivalent of 1,047.54 g/t over 13 metres)

The intercept starts at 24 metres and ends at 174.5 metres, with true width estimated at approximately 100 metres. Grades are uncut.

Hole 12-80 showed these results:

  • 162.94 g/t silver, 0.34 g/t gold, 1.24% copper, 0.07% lead and 0.14% zinc for a gold-equivalent of 5.89 g/t or a silver-equivalent of 326.71 g/t over 7 metres
  • (including 500 g/t silver, 0.69 g/t gold, 4.03% copper, 0.11% lead and 0.22% zinc for a gold-equivalent of 18.01 g/t or a silver-equivalent of 998.58 g/t over 2 metres)

This intercept runs from 104.5 metres to 111.5 metres, with true width yet to be determined. Still pending are results for six additional holes, as well as 362 soil samples that might indicate the original location of a rock that graded 265 g/t gold and 631 g/t silver.

Brixton Metals finds market favour for its B.C. silver-gold-base-metals project

A cross-section of recent drilling showing hole THN 12-83.

The company states that the project’s Oban zone remains open in several directions, with recent drilling expanding high-grade mineralization at depth to the south-southeast by 70 metres.

As a geologist, Thompson finds hole THN 12-83 especially remarkable. “I think the interesting point is that the mineralization is actually hosted within the Thorn porphyry stock unit, which is a little unusual because most of the mineralization that we’ve seen is hosted within the Oban breccia zone. So my gut’s telling me there’s some structural control to the system that’s probably propagating structures into the Thorn stock, allowing for the associated mineralizing fluids to drive into the stock. I think this zone is under-explored and we’re learning new things each time we work on the system.”

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Chieftain signs US$60M Gold and Silver Purchase Agreement with Royal Gold

December 23rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningChieftain Metals Inc TSX:CFB announced the sale of 12.5% of payable gold and 22.5% of payable silver from its Tulsequah Chief Project in northwest BC to Royal Gold Inc TSX:RGL. The $60-million deal includes an initial $10-million payment on closing, with the rest paid over the development period of the project.

The agreement allows Royal to purchase 12.5% of payable gold for $450 an ounce up to 48,000 ounces and 22.5% of payable silver for $5 an ounce up to 2.78 million ounces. Once those amounts have been delivered, the interests will convert to 7.5% of payable gold for $500 an ounce and 9.75% of payable silver for $7.50 an ounce, or the prevailing market price of the metals, for the remainder of the mine life.

Conditions include the securing of financing and permitting. Royal Gold also receives right of first refusal on any future gold or silver production-based interests.

Chieftain President/CEO Victor Wyprysky commented, “We are pleased to enter into this transaction with Royal Gold on the first anniversary of our IPO. Royal Gold’s commitment to the company highlights the value of the Tulsequah Chief Deposit. This financing does not dilute shareholders and increases the project NAV. The purchase amount, achieved by monetization of a portion of our precious metals, demonstrates the value inherent in the project. This transaction is an important first component in the project financing for Tulsequah Chief development as we plan for mine construction commencement in 2012.”

Royal Gold President/CEO Tony Jensen remarked, “We are pleased to add the high-grade Tulsequah Chief Deposit to our portfolio, which is another asset with good exploration potential in an attractive geographical region. It will also fit well into our development pipeline with an estimated start-up in 2015, following Pascua-Lama and Mt. Milligan in the second half of calendar 2013.”

View Company Profile

Contact:
Chieftain Metals Inc
Victor Wyprysky
President/CEO
416.479.5411
or Jamie Frawley
Director of Corporate Communications
416.479.5415

Royal Gold Inc
Karen Gross
VP and Corporate Secretary
303.575.6504

Read feature story on Chieftain Metals Inc.

by Greg Klein

Chieftain reports BC Assays of 16.23 g/t Gold, 200.34 g/t Silver over 12.9m

December 5th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningChieftain Metals Inc TSX:CFB announced assay results from the Tulsequah Chief deposit of the Tulsequah project in northwestern BC. Highlights include

5.28 g/t gold, 79.25 g/t silver, 2.49% copper and 15.48% zinc over 4 metres
16.23 g/t gold, 200.34 g/t silver and 1.55% copper over 12.9 metres
2.96 g/t gold, 75.71 g/t silver and 13.6% zinc over 15.2 metres
1.05 g/t gold, 55.88 g/t silver, 2.08% copper and 6.05% zinc over 12.7 metres
37.32 g/t silver and 11.89% zinc over 30.9 metres
1.2 g/t gold, 48.97 g/t silver, 2.35% copper and 8.94% zinc over 21.9 metres
1.95 g/t gold, 157.21 g/t silver, 1.68% copper and 16.09% zinc over 9.8 metres
1.99 g/t gold, 305.38 g/t silver, 5.01% copper and 16.02% zinc over 17.9 metres

The Tulsequah project has an NI 43-101 indicated mineral resource estimate of 190.8 million pounds copper, 169.7 million pounds lead, 873.1 million pounds zinc, 532,000 ounces gold and 19.76 million ounces silver. The project has inferred resources of 28.1 million pounds copper, 61.2 million pounds lead, 211 million pounds zinc, 149,000 ounces gold and 6.86 million ounces silver.

View Company Profile

Read more about Chieftain Metals

Contact:
Victor Wyprysky
President/CEO
416.479.5411

or Jamie Frawley
Director, Corporate Communications
416.479.5415

by Ted Niles

Tulsequah Revived

October 24th, 2011

Chieftain plans 2014 BC polymetallic production

By Greg Klein

Progress is now rapid at Chieftain Metals’ TSX:CFB Tulsequah polymetallic project, located 100 kilometres south of Atlin, BC, and 65 kilometres northeast of Juneau, Alaska. “We have pretty much all the major permits, licences and authorizations to move forward,” says Jamie Frawley, Chieftain’s Director of Corporate Communications. “We can start construction any day now.”

Gold-silver-zinc-copper-lead production is slated to begin in 2014. This will be the culmination of a long struggle. Plunging metal prices in 1957 shut down Cominco’s northern BC polymetallic operation after six years of operation. Resuscitation attempts by Redcorp Ventures a half-century later were dogged by local and environmental opposition. As a result, the company gave up on a plan to build a 160-kilometre road to Atlin. An alternate plan, to ship concentrate by barge to Juneau, also faced resistance. Environment Canada ordered the company to build a water treatment plant to clean up toxins left flowing since 1957.

Chieftain plans 2014 BC polymetallic production

Finances faltered during 2007. Mine construction did begin, but the 2008 Christmas shutdown became a permanent layoff. Redcorp went into receivership in 2009.

Christmas 2010, however, was kinder. Just three days earlier, Chieftain, a new company announced a $17.5-million IPO, quickly raising the amount to over $20 million. Tulsequah, a property Chieftain bought out of bankruptcy the previous September, was its raison d’être.

Chieftain brought together President/CEO/Director Victor Wyprysky, an investment banker focused on exploration and mining, and Executive VP Terrance Chandler, Redcorp’s former President/CEO. They put together a seasoned team of financiers, geologists and engineers and added Phil Fontaine, formerly Chief of Canada’s Assembly of First Nations, to their board.

Tulsequah will bring big changes to a remote area of northwest BC that lacks power and is accessible only by boat, barge or light plane.

An interim water treatment plant should see completion next month, a key step before construction begins in spring 2012. One permit remains—the road to Atlin, which would allow truckers to haul concentrate to the ice-free port at Skagway, Alaska, approximately eight hours from Tulsequah. Frawley sounds confident the road will be approved, although the exact route is still under negotiation. The mine is on the property of the Taku River Tlingit First Nation group. “We’re working very closely with them to ensure both sides are happy and making mutual decisions,” Frawley says.

The ultimate goal is an underground mine below the Cominco workings. Last June’s PEA forecast an initial $310.1-million CAPEX with a $277-million pre-tax NPV and a 25% IRR. Polymetallic projections came to 2,000 tonnes per day over a 9-year lifespan for 69,400 gold-equivalent ounces annually. The CAPEX includes $65 million for the all-weather road.

There’s about 20 kilometres of strike between those two past-producing mines, and there’s a very good indication that deposits exist between there. It’s early days right now, but we feel very confident that there’s good exploration potential —Jamie Frawley

The PEA was based on a November 2010 resource with an indicated estimate of 188.9 million pounds copper, 163.6 million pounds lead, 856.7 million pounds zinc, 510,000 ounces gold and 18.63 million ounces silver. The inferred category shows 22.7 million pounds copper, 22.4 million pounds lead, 121 million pounds zinc, 57,000 ounces gold and 2.53 million ounces silver.

That estimate doesn’t include the Big Bull Deposit, another 1950s Cominco operation. “There’s about 20 kilometres of strike between those two past-producing mines, and there’s a very good indication that deposits exist between there,” Frawley says. “It’s early days right now, but we feel very confident that there’s good exploration potential.”

The company awaits results on field magnetics and helicopter-borne Vertical Time-domain Electromagnetic surveys conducted last spring on the 14,220-hectare property encompassing both deposits. This year Chieftain drilled approximately 15,000 metres at Big Bull and another 15,000 at Tulsequah.

June 28 results from Big Bull include

  • 2 grams per tonne gold, 167.1 g/t silver, 0.41% copper, 2.15% lead and 4.19% zinc over 9.5 metres
  • 4.07 g/t gold, 81.37 g/t silver, 0.94% copper, 1.15% lead and 6.38% zinc over 2.3 metres
  • 3.4 g/t gold, 274 g/t silver, 0.19% copper, 8.25% lead and 19.8% zinc over 0.7 metres
  • 0.73 g/t gold, 23.69 g/t silver, 0.12% copper, 1.06% lead and 3.33% zinc over 10.7 metres
  • (including 1.1 g/t gold, 46.87 g/t silver, 0.41% copper, 1.68% lead and 5.91% zinc over 1.6 metres)

October 5 results from the Tulsequah Deposit include

  • 4.51 g/t gold, 133.13 g/t silver and 1.16% copper over 24.4 metres
  • 3.07 g/t gold, 100.52 g/t silver and 1.47% copper over 18.7 metres
  • 2.43 g/t gold, 54.43 g/t silver and 0.71% copper over 10.1 metres
  • 2.13 g/t gold, 72.85 g/t silver and 1.33% copper over 9.2 metres
  • 3.45 g/t gold, 120.48 g/t silver and 1.3% copper over 3.9 metres

Additional 2011 results are forthcoming.

A feasibility study began in September and will be published around March 2012, Frawley reports. That’s one of the ways Chieftain hopes to raise the PEA’s $277-million NAV to $413 million. That 67% enhancement would come from upgraded resources, improved metallurgy and run-of-river hydro (the PEA considered diesel-generated electricity).

At press time, Chieftain had 12 million shares trading at $3.70 for a $44.5 million market cap.

“Right now Chieftain is trading at roughly 20% NAV,” Frawley adds. “Once we start hitting some of our key milestones, once we finish out the year and start next year, we expect a lot of movement. I think we’re undervalued right now, and we’re a great investment opportunity.”

Chieftain reports BC Results of 4.51 g/t Gold, 133.13 g/t Silver, 1.16% Copper over 24.4m

October 6th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningChieftain Metals Inc TSX:CFB announced assays from its Tulsequah Chief Polymetallic Project in northwestern BC. Results include

4.51 g/t gold, 133.13 g/t silver and 1.16% copper over 24.4 metres
3.07 g/t gold, 100.52 g/t silver and 1.47% copper over 18.7 metres
2.43 g/t gold, 54.43 g/t silver and 0.71% copper over 10.1 metres
2.13 g/t gold, 72.85 g/t silver and 1.33% copper over 9.2 metres
3.45 g/t gold, 120.48 g/t silver and 1.3% copper over 3.9 metres

The project has a November 2010 resource with an indicated estimate of 188.9 million pounds copper, 163.6 million pounds lead, 856.7 million pounds zinc, 510,000 ounces gold and 18.63 million ounces silver. The inferred category shows 22.7 million pounds copper, 22.4 million pounds lead, 121 million pounds zinc, 57,000 ounces gold and 2.53 million ounces silver.

View Company Profile

Contact:
Victor Wyprysky
President/CEO
416.479.5411

or Jamie Frawley
Director of Corporate Communications
416.479.5415

by Greg Klein