Tuesday 25th July 2017

Resource Clips


Posts tagged ‘copper’

Barite concentrate from Mountain Boy Minerals’ B.C. project surpasses industry standards

July 18th, 2017

by Greg Klein | July 18, 2017

It’s a commodity essential to oil and gas drilling and one that the North American industry relies mostly on imports. But Mountain Boy Minerals TSXV:MTB has found barite on its Surprise Creek property in northwestern British Columbia’s Golden Triangle. Now metallurgical tests have produced a concentrate that far exceeds standards of the American Petroleum Institute, the company announced July 18.

Barite concentrate from Mountain Boy Minerals’ B.C. project surpasses industry standards

Mountain Boy explores the Golden Triangle for base
and precious metals, as well as industrial minerals.

“We are talking about a mineral which, according to the 2016 USGS report on barite, sells for an average of $198 f.o.b. mill with industry relying on imports for 78% of its needs,” said chairperson René Bernard. “With this knowledge in hand we can now promote our location within short trucking distance to deep water port, infrastructure, metal credits and proximity to key markets to attract industry partnerships. Our goal is to have a 43-101 industrial mineral resource later this year after all drilling is completed.”

Flotation tests were applied to a VMS-mineralized intercept that assayed 0.12 g/t gold, 28 g/t silver, 1.21% zinc, 0.03% lead, 0.31% copper and 46.73% barite over 18.94 metres. The hole remained open as drilling was suspended due to bad weather.

Flotation first separated copper and zinc, producing a concentrate of 26.2% copper at 70.5% recovery and 53.8% zinc at 89.1% recovery in an open cycle batch test. Higher recovery would be anticipated in a closed circuit test, the lab reported.

The tailings then underwent open circuit flotation, producing 91.6% BaSO4 at 83.2% recovery. The lab estimated that locked cycle tests could bring barite recovery closer to 90%.

The core comes from a drill hole on the Ataman zone, which extends over 1,200 metres of strike and comprises one of a number of the 100%-optioned property’s VMS zones. Last year’s surface work found a 25-metre-wide barite zone with significant base metals values 120 metres west of the hole, Mountain Boy stated. “Surface work also indicated barite zones extending to the mountaintop.”

This year’s Surprise Creek plans include further definition of sulphide/sulphide-barite zones and natural barite veins, along with additional metallurgical work on 2017 drill core, as well as the 43-101 resource.

Reporting on another northwestern B.C. project earlier this month, Mountain Boy announced the third hole in a row showing visible gold from its 35%-held Red Cliff property.

The company’s Golden Triangle portfolio also includes a 100% option on the BA project; a 20% stake in Silver Coin, a gold-silver-base metals project with a resource estimate; the MB property, with historic, non-43-101 polymetallic estimates; a 50% stake in the George property, with non-43-101 copper-silver-gold estimates; the American Creek and Bear Valley silver-base metals projects; as well as copper-gold claims. In southern B.C., Mountain Boy plans to begin PEA studies on its Manuel Creek zeolite project.

Read Isabel Belger’s interview with Mountain Boy Minerals chairperson René Bernard.

See an infographic about B.C.’s Golden Triangle.

Ken Lapierre discusses Rockcliff Copper’s Flin Flon-Snow Lake portfolio of projects

July 17th, 2017

…Read more

Emerita Resources targets high-grade Brazilian zinc project drilled by Vale

July 14th, 2017

by Greg Klein | July 14, 2017

Historic high zinc grades amid regional infrastructure have Emerita Resources TSXV:EMO planning to take on a new acquisition in east-central Brazil. Backed by 40 holes totalling 13,885 metres of drilling, the 1,210-hectare Salobro zinc project in Minas Gerais state comes with an historic, non-43-101 estimate of 8.3 million tonnes averaging 7.12% zinc. One historic intercept graded 10.39% zinc and 2.13% lead over 13.92 metres.

Emerita Resources targets high-grade Brazilian zinc project drilled by Vale

Mineralization occurs in three lenses, all remaining open, the company stated. Emerita has already commissioned a 43-101 technical report.

The project’s mineralization “was delineated by the highly respected technical group of Vale [NYSE:VALE] and remains open for future expansion,” said Emerita chairperson David Gower. “The project is located in an area with excellent infrastructure and a supportive environment for responsible mine development. Emerita has an exceptional technical team in Brazil and is ready to advance the project quickly.”

Local infrastructure includes paved roads, rail, water, power and cell phone reception, the company added.

The deal would resolve a legal dispute over Salobro between Vale and IMS Engenharia Mineral. Under a definitive agreement with Emerita, Vale would withdraw its ownership claim against IMS in return for US$6.5 million over seven years from Emerita, which would also cover Vale’s legal costs of about US$245,000.

Emerita and IMS have signed a binding LOI to create a subsidy to be held 75% by Emerita and 25% by IMS. IMS would then transfer its Salobro rights to the new entity in return for one million Emerita shares. The subsidiary would hold Salobro until Emerita completes its schedule of payments to Vale. Emerita would have the right to acquire the 25% IMS stake for C$2 million and one million shares. Emerita and IMS expect to sign a definitive agreement within 90 days.

Emerita also announced the termination of a non-binding LOI to acquire the Masa Valverde zinc project in Spain. But the company remains committed to another Spanish project, Aznalcollar, which hosts an historic, non-43-101 estimate of 71 million tonnes averaging 3.86% zinc, 2.18% lead, 0.34% copper and 60 ppm silver. The property is subject to a legal dispute in which Emerita alleges another company was wrongfully granted ownership. In an update last March, Emerita said a Seville court “has indicated that this result is highly irregular, inconsistent with the laws and regulations governing public tenders in Spain and further investigations need to be made to determine if there were any criminal acts committed in connection therewith.”

Visual Capitalist: How commodities performed in H1 and why they’re very cheap

July 5th, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist | July 5, 2017

If you’re looking for action, the commodities sector has traditionally been a good place to find it.

With wild price swings, massive up-cycles, exciting resource discoveries and extreme weather events all playing into things, there’s rarely a dull day in the sector. That being said, it’s hard to remember a more lacklustre period for commodities than the last couple of years.

For commodity bulls, the good news is that the sector is no longer tanking. The bad news, however, is that all the recent action has been in relatively niche sectors, as metals like cobalt, zinc and lithium all have their day in the sun.

At the same time, the big commodities (gold, oil, copper) have all slid sideways, having yet to revisit their former periods of glory.

Commodity winners so far

Before we highlight why commodities could still be cheap, let’s look at recent performance to get some context. Here are the commodities that have positive returns in H1 2017 so far:

How commodities performed in H1 and why they’re very cheap

 

Palladium is the best performer in 2017 so far, and it has now almost passed platinum in price. That would be the first time since 2001 that this has happened, and for the stretch of 2007 to 2012 it was even true that palladium traded at a $1,000 deficit to platinum.

Agricultural goods like rough rice, lean hogs, oats and wheat have also gotten more expensive so far this year. Meanwhile, metals like gold, copper and silver have seen modest gains—but only after dismal performances in the last part of 2016.

The losers so far

Here is the scoreboard for the commodities in negative territory, with the most noticeable losses in sugar and energy.

How commodities performed in H1 and why they’re very cheap

 

Are commodities cheap?

From the post-crisis bottom in 2009 until today, the S&P 500 is up a staggering 215.4%.

During that same timeframe, most major commodities crashed and then went sideways. The Goldman Sachs Commodity Index (GSCI) is down roughly 31.2%, which is a strong juxtaposition to how equities have done.

This extreme divergence can be best seen in this long-term chart, which compares the two indices since 1971.

How commodities performed in H1 and why they’re very cheap

 

In other words: Despite the lack of action in commodities that we noted earlier, the sector has never been cheaper relative to equities, even going back 45 years.

That means that there could be some much-needed action soon.

Posted with permission of Visual Capitalist.

Three in a row as another hole hits visible gold for Mountain Boy Minerals

July 5th, 2017

by Greg Klein | July 5, 2017

The first three holes testing the Montrose zone of Mountain Boy Minerals’ (TSXV:MTB) Red Cliff project have all revealed yellow-tinged core. With assays still to come, the company announced visible gold in galena-sphalerite stringers at depths lower than expected, showing up at core lengths of 163 metres, 227 metres and 229 metres in a wide mineralized intrusive. Two weeks earlier Mountain Boy reported similar results for the second hole of the Phase I underground program in northwestern British Columbia’s Golden Triangle.

Three in a row as another hole hits visible gold for Mountain Boy Minerals

While assays are pending, the core looks
pleasing to Mountain Boy Minerals.

Another three holes have been completed on the property’s Red Cliff zone, about 900 metres south of Montrose. Findings so far indicate a mineralized zone five to six metres wide with strong chalcopyrite-pyrite within quartz veins and silicified intrusive, Mountain Boy stated.

Mountain Boy has a 35% interest in the joint venture, while Decade Resources TSXV:DEC holds the rest. Adjacently north, Decade works towards a 100% interest on the Silver Crown 6 claim. North of Silver Crown 6, Mountain Boy holds a 100% interest in the MB property, with historic, non-43-101 polymetallic estimates. Decade’s 100%-held Red Cliff Extension claim sits along the east side of Silver Crown 6.

Mountain Boy’s other Golden Triangle interests include a 20% stake in Silver Coin, with a 2011 gold-silver-zinc resource; 100% options on the Surprise Creek base metal-silver-barite project and BA silver-lead-zinc project; a 50% stake in the George property, with non-43-101 copper-silver-gold estimates; the American Creek and Bear Valley silver-base metals projects; as well as copper-gold claims. In southern B.C., meanwhile, the company’s Manuel Creek zeolite project has PEA studies slated to begin.

Read Isabel Belger’s interview with Mountain Boy Minerals chairperson René Bernard.

See an infographic about B.C.’s Golden Triangle.

A cornucopia in B.C.

June 30th, 2017

Isabel Belger discusses precious and base metals, industrial commodities with René Bernard of Mountain Boy Minerals

 

Isabel Belger discusses precious and base metals, industrial minerals with Rene Bernard of Mountain Boy Minerals

Isabel Belger

Isabel: I would like to introduce the new chairman of Mountain Boy Minerals TSXV:MTB, René Bernard. Hi René, it is a pleasure to talk to you again and congratulations on becoming chairman. Tell us a little bit about your background, and the decision for you to become chairman of Mountain Boy Minerals.

René: Thank you Isabel, it is always a pleasure to talk to you. Several years ago, I researched a number of junior exploration companies to invest in. I came across Mountain Boy Minerals and was attracted by their 20% carried interest in the Silver Coin property, a 43-101 resource next to a mature mining camp, and their ownership in several other properties with high-grade gold and silver mineralization. After my initial investment, I started talking to management and had an opportunity to visit the properties. As my share position grew over time I offered the company experience I had gained as CEO, president and director of several listed companies in the mineral resource sector. When I agreed to be a director, I was asked by the board to be chair and to actively help with their vision to advance the company’s mining assets.

Isabel: Mountain Boy Minerals projects are all in British Columbia. Could you give a little overview of your properties?

René: Ed [Kruchkowski], our president and CEO, has worked as a geologist in the Golden Triangle of northwestern B.C. for decades. This has allowed him to acquire over time some of the most promising properties. All of our properties, from the gold-rich Silver Coin and Red Cliff claim blocks to the MB Silver, which hosts Bonanza-grade silver mineralization, to the two large VMS zones present on the BA and Surprise Creek properties, have the potential to be operating mines. Not to take away from our precious and base metal assets, we also find industrial metals in our properties which could be profitably mined due to the proximity of roads, power and a deep water port within 30 to 40 kilometres. Earlier this year, we acquired a zeolite property in southern B.C. which is also close to the markets this mineral targets for its use.

Isabel: What have been the highlights so far?

René: There are many, but what comes to mind is the 43-101 report on the Silver Coin showing a large gold resource, our continued success in drilling into high-grade gold mineralization at Red Cliff, and our recent acquisition of the 50% interest in the BA and Surprise Creek properties.

Isabel: Cobalt and lithium have gained a lot of attention within the last year or so. MTB owns properties with the interesting commodities barite and zeolite. Could you explain to the readers what these two (maybe not so well known) commodities are used for and shed some light on why they are interesting?

Isabel Belger discusses precious and base metals, industrial minerals with Rene Bernard of Mountain Boy Minerals

René Bernard took up Mountain Boy
Minerals’ board leadership in May.

René: There would be no oil and gas exploration as we know it today without barite. It is a heavy non-metal mineral which is used as a weighing agent in drilling fluids to control pressure. There are no real alternatives to the use of this mineral. It is deemed a critical mineral as there is not enough local supply to meet demand. As per USGS, 78% of the North American demand was met through imports in 2016, mostly from China, India and Morocco. The USGS quotes the average value per ton as $198 f.o.b. mill. Our situation is unique in that we identified … barite within a large VMS system. The embedded barite zones also carry significant base and precious metal values, as observed by surface sampling and drilling, which adds value in the processing stage. The property is within eight kilometres of a B.C. Hydro transmission line and within 30 minutes’ trucking distance to the deep water port of Stewart.

At our zeolite property we have large zeolite beds with similar favourable infrastructure. Zeolite is called the mineral of a thousand uses. You will see its application in agriculture, water filtration, municipal wastewater treatment, oil spill and soil remediation, and much more.

Isabel: What‘s your strategy and your next steps with the two projects, maybe relating to how much easier it is to produce these in comparison to gold, and how that could help to make revenue—which could be used for developing the other projects?

René: On the barite project, we need to establish a 43-101 resource through systematic drilling. We have submitted material to an analytical lab to show metal recovery and barite specification through gravity and flotation treatment. Later in the year we will have to perform larger-scale testing to show that the process will work in a large operation. We will soon seek to engage industry partners in this exciting discovery.

At the zeolite property we are in the process of conducting several studies which will help us to get the support of the provincial government and local First Nations stakeholders in applying for a quarry licence in the future. We will also need to block out significant volumes through drilling and trenching, and submit samples for testing. The idea has been floating within the company to engage an engineering firm to test for processes to create a slow-release fertilizer. A value-added product like this could be marketed in large quantities and add great value for the company.

Isabel: What is the most exciting thing happening right now at Mountain Boy?

Isabel Belger discusses precious and base metals, industrial minerals with Rene Bernard of Mountain Boy Minerals

An intercept from late last year on the Ataman zone of Mountain Boy’s
50%-held Surprise Creek project showed 4.31% zinc, 44.75 g/t silver,
0.33% copper and 67% barite over 4.58 metres.

René: Our current drill program on the Red Cliff property, which started a couple of weeks ago, and getting ready to do work on the Ataman zone, a 600-metre-wide VMS system we discovered recently on the Surprise Creek property.

Isabel: What are the plans for the rest of 2017?

René: To do good work in advancing our properties with a focus on near-production opportunities. On the corporate side, we will focus on showing our shareholders and potential shareholders the value we see in our different properties. We will reach out to the mining and petroleum industry to attract potential equity partners. These partners would offer more to us than just money; their experience with commodities such as gold, silver, zinc, as well as barite and zeolite, and how to mine them and bring them to market. The company will be in early consultation with provincial and local government and the representatives of First Nations communities.

Isabel: How much money do you have in the bank?

René: Money is always a rare commodity with junior mineral explorers as we are tasked to spend it in developing our properties as soon as we receive it. We are contacting potential industry partners for financial participation and will work with the investment industry and individual shareholders to secure the funds necessary.

Isabel: How much of Mountain Boy is held by the management?

René: Management owns approximately 40% of the outstanding shares. We want to show our investors and co-owners that we truly believe in the value of our assets.

Isabel: What do you like about the mineral exploration business?

René: It is exciting and highly rewarding once an economic resource has been discovered and developed.

Isabel: What is your favourite commodity and why?

René: I like gold; though we all like gold (laughs). I favour silver and zinc to be champions due to depleting stockpiles and ever-increasing uses. I like the practical applications industrial minerals such as barite and zeolite are sought for and how fast they can be brought into production with minimal investments, creating much-desired cash flow.

Isabel: Where do you see the gold price?

René: Somewhere within $1,100 and $1,400 from the understanding I have about the markets and what drives supply and demand.

Read more about Mountain Boy Minerals here and here.

See an infographic about B.C.’s Golden Triangle.

Newfoundland newly found

June 26th, 2017

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

 

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

Isabel Belger

Isabel: I would like to introduce Jon Armes, the president and CEO of Kapuskasing Gold TSXV:KAP. Jon, good to see you again. Tell us something about your background to start with.

Jon: Hi Isabel, good to see you too. I started in the mineral exploration business back in 1993 as an investor relations consultant. I spent the better part of 10 years working for various companies exploring for gold and precious metals as well as base metals and diamonds.

In the mid-2000s I ended up working in the field alongside a couple of different geologists and spent time managing drill programs, splitting drill core, prospecting and assisting in the staking of claims. I also helped structure some companies—bringing project opportunities and public companies together.

In 2010 I was given the opportunity to run a junior exploration company called Lakeland Resources. That company merged with Alpha Exploration in late 2015 and became ALX Uranium [TSXV:AL]. I remained as president until October of 2016 after concluding a transaction with Denison [TSX:DML] on behalf of ALX.

I was appointed president of Kapuskasing Gold in February of 2016. We carried out some drilling last summer on a gold project in Timmins, Ontario, but unfortunately did not intersect anything of significance in that campaign. Since that time I have been looking for the right opportunity or opportunities to bring in to the Kapuskasing property portfolio. The Newfoundland property package seemed like the right fit, and since then we have done some consolidating to the original acquisitions announced on March 1, 2017, and then more recently added the Daniel’s Harbour zinc property to the property portfolio. The copper-cobalt projects are the Lady Pond property and the King’s Court property. The lack of systematic testing for cobalt gave rise to these properties being so interesting because, the few times cobalt was tested for, there were several anomalous values. I particularly like the short- and longer-term outlook for both copper and zinc, and these copper-cobalt projects also provide a polymetallic exposure that includes cobalt, gold and silver.

Isabel: Congratulations on your recent zinc property acquisition in Newfoundland, the Daniel’s Harbour property. What intrigued you about this project?

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

With breathtaking geography and bountiful geology, the Rock
and neighbouring Labrador hold potential for Kapuskasing.

Jon: The opportunity to acquire a project that was a past-producer is always an interesting one. There is an old saying in the mining business that the best place to look for a mine or a deposit is in the “shadow of a headframe.” The Mississippi Valley-type nature of these zinc deposits is also intriguing because of the difficulty in finding them. Typically they are found in an outcrop as was the case for the majority of the lenses that were mined out between 1975 and 1990. I am of the belief that there is an opportunity to find more of these lenses within the boundary of the current Daniel’s Harbour zinc property. The fact that Altius [TSX:ALS] has acquired a significant land position within the immediate area of this project only helps to reaffirm my belief. We will do some compilation of the historic work and more recent exploration on the property and incorporate some out-of-the-box thinking on how to employ some geophysics that have either not been used before or perhaps some re-interpretation. Another aspect could be a ground prospecting program that may identify an outcrop or showing on the property that has yet to be found.

Isabel: What are your exploration plans for the coming months?

Jon: Kapuskasing is currently undertaking a small financing to assist in getting things going both on the Daniel’s Harbour property and the Lady Pond copper-cobalt project. As mentioned, the first things for Daniel’s Harbour would be some data compilation and to identify some geophysical techniques to help identify some drill targets.

The Lady Pond copper-cobalt property has a drill-ready target area called the Twin Pond prospect, recently acquired to complete the consolidation of the original Lady Pond property package. We have also staked several claims to cover additional historic showings of copper-cobalt-gold and silver. The Twin Pond prospect has a non-43-101 resource of approximately one million tonnes grading 1% copper, and looks to be open in all directions. [We hope to increase this resource] with a properly designed drill program—ideally in the coming months with the right funding and availability of service companies to carry out the work.

In the immediate area of Lady Pond, there are several past-producing mines and undeveloped prospects that could turn into economic deposits…. Rambler Metals [TSXV:RAB] has several projects and properties in this area, including the Little Deer project contiguous to our Lady Pond property. There is potential with the right combination of funding and exploration success for Kapuskasing to find more than one of these deposits within the Lady Pond property, having had a good start with the Twin Pond prospect.

Isabel: How much of Kapuskasing is held by the management?

Jon: Currently insiders and parties close to the company own approximately 20% of the issued and outstanding shares. Typically the insiders participate in the financings, as will be the case in this one. We are currently looking to raise up to $750,000 in a combination of flow-through and common shares. We hope to close a first tranche financing in the coming weeks to begin deploying exploration capital.

Isabel: What is your favourite commodity besides the ones in your company?

Kapuskasing will be in a great position to take advantage of not just one but several commodity price spikes, the first of which I think will be in both copper and zinc. —Jon Armes

Jon: I do like both copper and zinc, as evidenced by the recent acquisitions. The battery technology metals are also interesting—with cobalt and lithium leading the latest charge. People forget that electricity needs copper. Wires transport the electricity from batteries and generators to the tool or outlet. I consider copper to be the most important metal for the energy metal sector. We have cobalt as a possible byproduct of the two main polymetallic projects in the Lady Pond and King’s Court projects, along with gold, silver and zinc. Kapuskasing will be in a great position to take advantage of not just one but several commodity price spikes, the first of which I think will be in both copper and zinc.

Isabel: What do you like most about your job?

Jon: I like the multifaceted aspects of running a junior exploration program; there never seems to be a dull moment. I get to meet a lot of different people in the mining and finance industry, the prospectors that generate the project ideas, and the service people that ultimately carry out the exploration of the projects with our team of geologists and technicians. The most exciting times are when we are actually carrying out a drill program. It is drilling that ultimately leads to discovery.

Isabel: That is right. Good talking to you Jon, and good luck with the drill program.

Jon: Thank you.

 

Jon Armes of Kapuskasing Gold talks with Isabel Belger about zinc, copper and cobalt

Jon Armes
president/CEO of
Kapuskasing Gold

Bio

Jonathan Armes, also known as Jon, has been the CEO and president of Kapuskasing Gold since February 9, 2016, and a director since October 8, 2014. Jon Armes has been a consultant of ALX Uranium since October 2016. Jon Armes served as the president/CEO of ALX Uranium (formerly, Lakeland Resources) from August 12, 2010, until October 2016. He has provided corporate development and investor relations services to mining exploration companies for over 15 years including Band-Ore Resources (which became part of Lake Shore Gold, which in turn joined Tahoe Resources TSX:THO) and Trelawney Mining and Exploration, an IAMGOLD TSX:IMG takeover. He graduated from the University of Guelph in 1993 with a Bachelor of Applied Science degree.

Fun facts

My hobbies: Fishing, hockey and music
Sources of news I use: News apps on my phone
My favourite airport: Vancouver
My favourite commodities: Copper, gold, zinc, cobalt
My favourite tradeshow: PDAC
With this person I would like to have dinner: Warren Buffet (talking about philanthropy, investing and life)
If I could have a superpower, it would be: Seeing into the future


Read more about Kapuskasing Gold.

The Greenwood renaissance

June 23rd, 2017

Golden Dawn Minerals moves to revive the historic B.C. mining camp

by Greg Klein

It’s a case of one bold decision leading to another. Among the companies that saw opportunity during the downturn, Golden Dawn Minerals TSXV:GOM began picking up past-producers, assembling a cluster of properties radiating around a mill in south-central British Columbia’s fabled Greenwood mining district. Now, with a recently released PEA and some of the permits in place, the company’s ready to boldly venture into trial mining sans feasibility.

Company adviser George Sookochoff credits president/CEO Wolf Wiese with being “very aggressive in making deals, acquiring properties and putting together this fantastic package. Now that markets are looking better, he’s already got his projects and financing lined up.”

Golden Dawn Minerals moves to revive the historic B.C. mining camp

Golden Dawn’s mill plays a vital role in the
company’s plans to re-activate the past-producing mines.

So extensive is Golden Dawn’s portfolio that it reads more like a catalogue. But the initial focal points constitute a mill with three nearby past-producers: the Lexington-Grenoble gold-copper, Golden Crown gold-copper and May Mac gold-silver-lead-zinc mines. The company’s crushing-grinding-gravity-flotation mill and tailings facility has a 212-tpd capacity expandable to 400 tpd. Built in 2007, it’s been on care and maintenance since the end of 2008.

“The mill is key to the potential success of this economic model,” Sookochoff explains. “It enables us to mine and process smaller deposits. We’ll find bigger deposits if they’re there but we could keep feeding the mill with these smaller deposits. All these projects are within 15 kilometres of the mill.”

With the advantages of refurbishable infrastructure straddling a highway 500 kilometres east of Vancouver, the PEA calculates a very high after-tax IRR of 103.4% and NPV of $19.7 million. Capex would come to $27.2 million, including pre-production costs of $3.4 million spent over six months. Payback would come in 1.4 years, while the life of mine would be 4.6 years.

The limited lifespan, of course, highlights the importance of resource expansion, Sookochoff emphasizes.

This week the company announced provincial approval to re-activate Lexington and the mill. The 2,020-hectare Lexington property had its underground infrastructure expanded by a previous operator that mined the project from April to December 2008, producing 5,486 ounces of gold, 3,247 ounces of silver and 860,259 pounds of copper that was processed at the Greenwood mill. Using a 3.5 g/t gold-equivalent cutoff, Lexington has a 2016 resource showing:

  • measured: 58,000 tonnes averaging 6.98 g/t gold, 1.1% copper and 8.63 g/t gold-equivalent for 16,100 gold-equivalent ounces

  • indicated: 314,000 tonnes averaging 6.38 g/t gold, 1.04% copper and 7.94 g/t gold-equivalent for 80,200 gold-equivalent ounces

  • inferred: 12,000 tonnes averaging 4.42 g/t gold, 1.03% copper and 5.96 g/t gold-equivalent for 2,300 gold-equivalent ounces

At Golden Crown, meanwhile, permitting is in process for surface drilling to upgrade the resource and test for extensions. The 1,017-hectare property underwent small-scale underground gold-copper mining early last century and extensive exploration on and off since then. Using a 3.5 g/t gold-equivalent cutoff, Golden Crown’s 2016 resource shows:

  • indicated: 163,000 tonnes averaging 11.09 g/t gold, 0.56% copper and 11.93 g/t gold-equivalent for 62,500 gold-equivalent ounces

  • inferred: 42,000 tonnes averaging 9.04 g/t gold, 0.43% copper and 9.68 g/t gold-equivalent for 13,100 gold-equivalent ounces

May Mac also has permit applications under review, these ones for underground drifting, drilling and bulk sampling. A previous round of underground drilling wrapped up in spring, resulting in high-grade silver-gold-base metals assays. Surface drilling continues.

But Golden Dawn’s very extensive assets—again, all proximal to the mill—offer additional potential to keep the facility busy beyond the PEA’s timespan. Among them are 29 former mines covering 11,000 hectares that came with the January acquisition of Kettle River Resources. One focus is the former Phoenix mine that reportedly gave up around 500 million pounds of copper and nearly one million ounces of gold. Sookochoff, a database specialist, has been poring over something like a century’s worth of files including approximately 3,000 maps and 500 reports.

In the last few years especially, junior companies have been able to acquire so much data that it’s a challenge to handle it efficiently.—George Sookochoff
Golden Dawn Minerals adviser

“In the last few years especially, junior companies have been able to acquire so much data that it’s a challenge to handle it efficiently,” he says. Nevertheless, after compiling the archives and incorporating new exploration data, he hopes to see some “deeper-seated feeder systems” underlying the shallow former mines.

Phoenix has deep-penetration airborne VTEM planned for September, he says. “If we get a strong anomaly coincident with a former mine, we’ll know that’s a mineralized geophysical signature and we’ll look for similar signatures around the property. This should be extremely valuable to identify larger systems deeper down, or even smaller ones closer to surface.”

Additional potential, not covered by the PEA, could come from Washington state. Earlier this month Golden Dawn announced an LOI for the Lone Star copper-gold property just across the border and contiguous with Lexington. With “material that looks very suitable to our mill,” the 234-hectare property would come with a 2007 estimate that the company considers non-43-101:

  • indicated: 63,000 tonnes averaging 1.28 g/t gold and 2.3% copper for 2,600 ounces gold and 3.19 million pounds copper

  • inferred: 682,000 tonnes averaging 1.46 g/t gold and 2% copper for 32,000 ounces gold and 30.07 million pounds copper

Big plans notwithstanding, Golden Dawn’s not immune to the typical junior hope that a senior might come knocking. The Greenwood camp’s largest landholder is Kinross Gold TSX:K. As the company’s Buckhorn mine close to the B.C. border in Washington state nears depletion, Kinross might look for other convenient assets to keep its Kettle River mill in operation, Sookochoff suggests. That might make some of Golden Dawn’s primarily gold assets attractive, although the high-grade copper projects would be more suitable for the Greenwood mill, he says.

As a native of Grand Forks, about a half-hour drive east, Sookochoff says the region shows strong community support for mining. A packed open house held in December went very well, he adds, and the company enjoys “very positive relations with the Osoyoos Indian Band. They’re very supportive, very pro-business.”

Earlier this month Golden Dawn closed the final tranche of a private placement totalling $1.76 million. In February the company closed a gold purchase agreement that brought in US$4 million. That same month the company received a US$1-million increase in a convertible security that began the previous August at US$2.4 million. Even with the caveat that the company intends to proceed without feasibility-level de-risking, the PEA allows Golden Dawn to return to the market “with a stronger story now,” says Sookochoff.

Visual Capitalist: How copper riches helped shape Chile’s economic story

June 21st, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist | June 21, 2017

Although Chile has always been noted for its abundant mineral wealth, the country was actually not a notable copper producer even at the beginning of the 20th century.

In 1907, for example, the United States was able to produce nearly 14 times as much copper as Chile. The reality was that shortages in capital, organization and water kept the country’s massive, low-grade deposits from being developed at any significant scale.

The copper standard

Things would change dramatically for Chile. The country has been the world’s top copper producer now for over 30 years, and today close to 50% of the country’s exports come from copper-related products.

This infographic comes from Altiplano Minerals TSXV:APN and it tells the story of how Chile tapped into its copper wealth to become the richest and freest economy in Latin America.

 

How copper riches helped shape Chile’s economic story

 

New milling technology, economic reforms and increasing investment attractiveness were catalysts that turned Chile into a copper powerhouse. In turn, copper exports helped propel the Chilean economy to new heights.

“The miracle of Chile”

This incredible leap can be summed up aptly with two facts:

1) Copper production went from under one million tonnes per year (late 1970s) to over five million tonnes per year (2000s).

2) Despite this massive rise, copper as a percentage of exports fell. It went from a peak of 80% of exports to more like 50% today.

Over this time, as the economy diversified, Chilean GDP per capita (PPP) gained massive ground on the Latin American average and passed it in the early 1990s.

Chile’s GDP per capita today is the highest in Latin America of major economies:

 

  GDP per capita (2015, PPP)
Chile $24,170
Argentina $22,459
Mexico $18,370
Venezuela $17,430
Brazil $15,941
Colombia $14,164
Peru $12,639
Ecuador $11,839
Guatemala $7,704

 

That said, critics of Chile’s economy will point to its inequality. The country’s Gini Coefficient, according to the World Bank, is higher (less equal) than only a handful of Latin American and Caribbean economies: Panama, Belize, Haiti, Suriname, Honduras and Colombia.

Mining in Chile today

Today, Chile’s mines produce copper, gold, molybdenum, iron and silver. The country also produces more lithium than any country from its salars.

The country is the world’s undisputed copper heavyweight champion—it’s been the top producer for 30-plus years and holds an impressive seven of the world’s top 14 copper mines. The biggest mine, Escondida, produces over a million tonnes of the red metal each year, equal to 5% of the world’s annual copper supply.

The copper crown is likely to be held by Chile in the future, as well. According to the Chilean Copper Commission (Cochilco), between 2000 and 2015 about 35 copper deposits and three gold deposits were discovered in central-north Chile. They increased the country’s resources by 208.6 million tons of copper and 34.3 million ounces of gold.

The new copper discovered is roughly equal to 30% of global discoveries over the same time period.

Posted with permission of Visual Capitalist.

Mountain Boy Minerals drills more visible gold at B.C.’s Golden Triangle

June 21st, 2017

by Greg Klein | June 21, 2017

With two rigs busy, Mountain Boy Minerals TSXV:MTB intersected visible gold above historic underground workings on northwestern British Columbia’s Red Cliff property. Assays are still pending, but one of the holes that intersected a sheared, mineralized intrusive on the Montrose zone showed the welcome sight of yellow within numerous galena stringers. The company added that mineralization within the two most recent holes resembles a previously reported hole from the same zone that graded 14.53 g/t gold and 0.27% copper over 30.64 metres.

Mountain Boy Minerals drills more visible gold at B.C.’s Golden Triangle

The sight of gold attracts Mountain Boy Minerals
more than Red Cliff’s rugged scenery.

Work continues to test an approximately 200-metre vertical distance between the previous holes and the past-producer’s workings.

About 900 metres south of Montrose, meanwhile, the other rig targets the Red Cliff zone, where quartz with chalcopyrite, pyrite and sphalerite has been found in zones up to five metres in width.

The program also intends to confirm previous results from the property’s Waterpump zone, a goal that will require a drone and possibly climbers to find a 1988 mountainside drill collar.

Mountain Boy has a 35% stake in the project, with JV partner Decade Resources TSXV:DEC holding the remainder.

In deals re-negotiated with Great Bear Resources TSXV:GBR earlier this month, Mountain Boy increased its options on two other Golden Triangle properties, Surprise Creek and BA, from 50% to 100%. Other northwestern B.C. interests include a 100% stake in the MB project, with historic, non-43-101 polymetallic estimates; a 50% stake in the George property, with non-43-101 copper-silver-gold estimates; a 20% stake in Silver Coin, with a gold-silver-base metals resource; the American Creek and Bear Valley silver-base metals projects; as well as copper-gold claims. In southern B.C., Mountain Boy prepares to begin PEA studies on its Manuel Creek zeolite project.

Read more about Mountain Boy Minerals.

See an infographic about B.C.’s Golden Triangle.