Sunday 19th November 2017

Resource Clips


Posts tagged ‘copper’

There’s skiing in them thar hills

October 23rd, 2017

by Greg Klein | October 23, 2017

Some appearances to the contrary, sliding downhill might not be the ambition of every mining company. But Barrick Gold TSX:ABX has a new ski resort under consideration around the site of a southern British Columbia past-producer. Although a local enthusiast says significant progress is imminent, PostMedia reports, a company spokesperson pegs the possible project “at a very, very early stage.”

There’s skiing in them thar hills

Recreational potential around a former underground
mine might offer Barrick an opportunity to diversify its assets.

That’s been the case since at least 2012. According to a Hope Standard account from that year, the miner had a feasibility study underway for an all-season resort around the former Giant Mascot underground mine about 10 kilometres from the town of Hope.

A 1974 B.C. Geological Survey report said Giant Mascot was mined briefly in the 1930s and 1958, then from 1959 to 1973. Production estimates vary, but a 1987 study commissioned for Mascot Gold Mines Ltd said Giant gave up 4.6 million tons containing 71 million pounds of nickel and 31.4 million pounds of copper, “with significant quantities of cobalt,” from 1959 to 1974.

“The mine closed in August of 1974 because of the loss of sales contracts for copper-nickel concentrate in Japan and because of the stringent policies towards the mining industry of the provincial NDP government,” the report stated. The study quoted a 1973 historic, non-43-101 estimate of 951,471 tons averaging 0.75% nickel and 0.3% copper. Operators had given only minimal attention to the mine’s gold, chrome, cobalt and PGM potential, the report added.

Barrick got the property through its 2001 merger with Homestake Mining, according to the Standard. By 2012 Barrick was considering a resort offering fishing, hiking and boating, along with possible ski facilities nearby, the paper noted. Consultations were underway with First Nations and other local communities.

Now PostMedia reports Dennis Adamson, an elected official of the Fraser Valley Regional District “and the project’s No. 1 booster,” says Barrick will soon file a notice of intent.

“I’ve been pushing this for years. It’s the No. 1 question I get,” he said of his 721 constituents. “Not a day goes by when I don’t get someone asking me when the ski hill will be open.”

But Andy Lloyd, spokesperson for the world’s top gold miner, cautioned that any such plan “is at a kind of conceptual stage … a very, very early stage … we wouldn’t want to create a false impression that Barrick is building a resort.”

Something of a higher priority might be Barrick’s relations with Tanzania, where the company holds a 63.9% stake in LSE-listed Acacia Mining, operator of three mines in the country. Barrick has proposed that the government get half the mines’ economic benefits, a 16% interest in the assets and US$300 million from Acacia towards unresolved tax claims.

Acacia says it doesn’t have the dough.

Meanwhile the Canada West Ski Areas Association, PostMedia reported, believes the province already has too many resorts chasing too few skiers.

High-grade sampling adds interest to Golden Dawn Minerals’ Greenwood revival

October 19th, 2017

by Greg Klein | October 19, 2017

A company hoping to restart former mines in southern British Columbia’s historic Greenwood camp, Golden Dawn Minerals TSXV:GOM announced high-grade sample results from new acquisitions. The news comes as the company drills one of its properties and prepares for trial mining on another of the past-producers in a group of nearby assets that includes a 212-tpd mill.

High-grade sampling adds interest to Golden Dawn Minerals’ Greenwood revival

The Phoenix open pit lies among a group of
prospects that includes the sampling area.

Focusing on properties acquired late last year, some 86 samples were taken, most of them chip samples from outcrop. Among the highlights was a 0.4-metre interval showing 85.9 g/t gold, 29.8 g/t silver and 0.01% copper from the Summit area. The Minnie Moore area came through with 2.68 g/t gold, 1,700 g/t silver, 0.07% copper, 0.41% lead and 0.22% zinc over one metre.

Three one-metre widths from the Silvester K prospect showed:

  • 4.68 g/t gold, 3.1 g/t silver and 0.11% copper

  • 25.5 g/t gold, 7.5 g/t silver, 0.14% copper and 0.01% zinc

  • 10.9 g/t gold, 5.1 g/t silver and 0.02% copper

The most numerous high-grade gold results came from the JD area, where one-metre intervals graded as high as 15.8 g/t, 14.9 g/t, 14.3 g/t, 8.26 g/t, 5.59 g/t and 4.59 g/t gold, along with silver, copper and some lead-zinc.

A grab sample from the Bay area showed 45.1 g/t gold, 7.7 g/t silver and 0.16% copper. An interesting polymetallic chip sample from the Mavis prospect graded 3.79 g/t gold, 503 g/t silver, 0.01% copper, 17.5% lead and 0.18% zinc over one metre.

Overall, the results call for additional exploration and surface drilling on six areas covered by the program, Golden Dawn stated. Meanwhile the company has dewatering underway at Lexington, a nearby past-producer that’s slated for rehab and trial mining. Having given up 5,486 ounces of gold, 3,247 ounces of silver and 860,259 pounds of copper from April to December 2008, the mine shows potential for new production without de-risking at the feasibility stage, Golden Dawn believes. The company plans to start wet commissioning of the mill as trial mining begins.

A concurrent drill program on the Golden Crown property has sunk 19 holes totalling 1,358 metres so far, with results pending.

Last month the company closed the final tranche of a private placement totalling $2.3 million.

Read more about Golden Dawn Minerals.

High-grade copper samples precede fall drilling at Kapuskasing Gold’s Newfoundland project

October 13th, 2017

by Greg Klein | October 13, 2017

A property with over a century of mining and exploration history has modern drilling about to begin as Kapuskasing Gold TSXV:KAP readies a rig for the Lady Pond project in Newfoundland. Heightening the company’s anticipation are recent grab samples showing cobalt, silver and high-grade copper.

High-grade copper samples precede fall drilling at Kapuskasing Gold’s Newfoundland project

Surface geology at Lady Pond’s Sterling prospect buoys
optimism in Kapuskasing’s upcoming drill campaign.

Two grab samples reported for Sterling, one of the 2,450-hectare property’s three known prospective areas, showed 2.75% copper and 7.19% copper. A Twin Pond grab sample returned 9.03% copper, while another from the Lady Pond prospect assayed 0.089% cobalt, 1.54% copper and 9.4 g/t silver.

With a drill permit now in hand, Kapuskasing has about 1,000 metres planned to confirm historic reports of copper and begin work on a 43-101 resource for the three prospects. All three have undergone extensive drilling in the past, with impressive, albeit historic, non-43-101, reports of copper. Sterling hosts an historic, non-43-101 estimate of approximately one million tonnes averaging 1% copper that remains open in all directions.

Adjacent to the northern Newfoundland town of Springdale, the Lady Pond property sits 94 kilometres by road from a Rambler Mining and Metals TSXV:RAB base metals mill. Rambler holds two historic, non-43-101 copper deposits contiguous to Lady Pond.

On the province’s Great Northern Peninsula, Kapuskasing closed its acquisition of the 1,050-hectare Daniel’s Harbour project last month. A former mine that produced around seven million tonnes averaging 7.8% zinc between 1975 and 1990, the property is considered prospective for additional Mississippi Valley-type zinc deposits.

The company’s portfolio also includes the King’s Court copper-cobalt property just south of the Great Northern Peninsula.

In August Kapuskasing closed private placements totalling $215,000, which followed a June private placement of $201,200.

Read Isabel Belger’s interview with Kapuskasing Gold president/CEO Jon Armes.

New acquisition expands Rockcliff Copper’s Snow Lake gold/VMS assets

October 5th, 2017

by Greg Klein | October 5, 2017

A 100% option would bring Rockcliff Copper TSXV:RCU its fourth gold property in a Manitoba VMS camp originally associated with yellow metal. Located within five kilometres’ trucking distance from a 2,000-tpd gold mill, Berry Creek joins the company’s extensive portfolio in the Flin Flon-Snow Lake region.

New acquisition expands Rockcliff Copper’s Snow Lake gold/VMS assets

The property comes with historic, non-43-101 assays, including grab samples grading up to 90 g/t gold, 2.48% zinc and 0.51% copper. Historic, non-43-101 drill results for three holes showed:

  • 3.8 g/t gold over 3.6 metres, starting at 6.6 metres

  • 4.7 g/t over 4.3 metres, starting at 37 metres
  • (including 19 g/t over 0.5 metres)

  • 3.5 g/t over 4 metres, starting at 17.5 metres
  • (including 13.4 g/t over 0.5 metres)

Apart from the near-surface high grades, the property shows “potential for a large low-grade gold environment,” Rockcliff stated. Berry Creek also hosts untested airborne geophysical anomalies and sits within an area better known for base metals production. The company plans geophysics and drilling next year.

A 100% interest would call for $140,000 over three years and $500,000 in spending over five years, with a minimum $75,000 of work in any year. A 2% NSR applies, up to half of which Rockcliff may buy for $500,000 per 0.5% NSR.

Rockcliff’s other regional gold projects include the former Laguna mine, which underwent airborne geophysics last summer, as well as the Dickstone North and Snow Lake properties.

Busy on a number of fronts, Rockcliff last month announced drill plans for its Bur zinc-polymetallic project, which gets about 3,000 metres to update and expand an historic, non-43-101 resource. The company also holds three other zinc deposits with historic, non-43-101 estimates.

Another drill program this year found a new VMS zone on the company’s 51%-optioned Talbot property. A 43-101 inferred resource from 2016 for the project’s three zones totals 133.6 million pounds copper, 165,400 ounces gold, 107.4 million pounds zinc and 3.81 million ounces silver.

The company’s Rail deposit hosts a 2010 43-101 resource with an indicated category containing 55.09 million pounds copper.

Known collectively as the Snow Lake project, Rockcliff’s entire package lies within trucking distance of two Hudbay Minerals TSX:HBM processing facilities.

In late August Rockcliff closed an over-subscribed private placement of $1.35 million.

Read more about Rockcliff Copper here and here.

Confederation Lake in focus

October 2nd, 2017

Regional geophysics bring expansion and JV potential to Pistol Bay’s quest for Ontario VMS zinc-copper

by Isabel Belger

Isabel Belger

Isabel Belger

Isabel: I would like to introduce the president and CEO of Pistol Bay Mining [TSXV:PST] Charles Desjardins. I am very glad you could find the time. Charles, tell us something about your background and how you got started in the mineral exploration industry.

Charles: I started in Vancouver as a stockbroker in the 1980s. Then you could say I got lured into the venture capital space, at that time the Vancouver stock exchange. The first thing that I worked on was actually a technology deal. Since then I have worked in a lot of different sectors: tech, biotech, oil and gas, diamonds, mining, etc.

This was a natural transition—I started more as a promoter and then I just became more hands-on because I wanted to get things done the way that I wanted to do them.

Isabel: How did you get involved with Pistol Bay?

Charles: Pistol Bay was actually in the Dave Hodge camp before as Solitaire Minerals and it came from somebody that kind of gave up. I wanted to take it over and one of the first things I acquired were the C3, C4, C5 and C6 uranium properties in Saskatchewan, which we are selling now to Rio Tinto [NYSE:RIO].

I got an e-mail from them last night. Basically I asked them if they were planning to pay the $1.5 million this year and they said probably. If they don’t pay it this year, then they’ll have to pay $2 million next year. It’s most likely that they will pay in 2017.

Isabel: Your principal properties are located in the Confederation Lake VMS greenstone belt in Ontario. Can you give me a little overview of what you have there and what makes your projects valuable?

Charles: Confederation Lake has been explored to some extent since the 1950s with only one producing mine, the South Bay mine. There are about nine historic occurrences there that we control.

Regional geophysics bring expansion and JV potential to Pistol Bay’s quest for Ontario VMS copper-zinc

The technology of exploration and mining has changed a lot just since 2000. I was recently in Toronto and I met the geophysicist who used to handle the area for Noranda. A lot of this ground was Noranda. Up until 2000 they couldn’t see anything beyond 200 metres in depth. Originally my plan two years ago was to tie up zinc and copper properties focusing on zinc. At that time zinc was at 62 cents per pound, now it is more like $1.40. Let’s call it prescience—I was able to tie up most of the belt, which is over 50 kilometres long and about 28 kilometres wide. The whole goal was to explore the belt using modern exploration methods, mostly with a deep-penetrating airborne study. Pistol Bay has just completed that.

I would also like to mention that there are about 800 historic drill holes in this belt and we have data on 600 of them. And we have access to a big geochemical study that was done, probably worth about $500,000 or even $600,000, that was never really followed up on or plotted in to any degree. That is very valuable because it went through all alteration zones and all the occurrences. Recently we did the airborne survey, as I have mentioned. I doubled the size of the survey area, ending up being about 2,100 line-kilometres. What that does, and what it has shown us, is that there are two trends in this belt. The first trend has stronger copper and zinc numbers and the lower trend is more zinc-dominated. The conductors we found are actually deeper in places. They have not been followed up before…. Keeping that in mind we have also staked another 14,500 acres [about 5,860 hectares] of conductors and IP anomalies. So there is a lot to follow up on.

Isabel: What is the plan for the rest of 2017 and where do you see more excitement?

We are talking right now to four companies about joint-venturing this. We don’t really have the capital to pay for our own drill program unless Rio Tinto writes us that cheque. I don’t want to dilute at this moment. I’d rather wait for the cheque if I have to or enter in joint ventures.—Charles Desjardins

Charles: We are talking right now to four companies about joint-venturing this. We don’t really have the capital to pay for our own drill program unless Rio Tinto writes us that cheque. I don’t want to dilute at this moment. I’d rather wait for the cheque if I have to or enter in joint ventures. I can say that we are permitting right now for drilling, but it might be a joint venture partner drilling. In the worst-case scenario we would drill in the first quarter of next year.

But I am pretty sure that Rio Tinto will write the cheque.

Isabel: You have a 5% NPI royalty on the Rio Tinto project, is that correct?

Charles: Yes, we have a 5% net profit interest after they paid the $1.5 million. I am rather confident that at some point they will come and try to buy that. If it is something that they think they are going to take to production—of course it is not even close to that—they would never leave us with 5% NPI.

Isabel: You said that you won’t be able to do a drill program yourself right now. How much money do you have in the bank right now?

Charles: A couple of hundred thousand.

Isabel: How much of Pistol Bay is held by the management?

Charles: Management, friends and family own about 35%.

Isabel: That is quite a bit. Interesting. Let’s talk a bit about zinc and copper. Recently a lot of articles were published on copper. It was Robert Friedland who recently noted that about 150 kilograms of copper is required for each electric vehicle manufactured, whereas people talk mostly about lithium and cobalt and EVs, but not so much about the increasing demand for copper. But I think many people are aware of rising copper prices and what copper is used for, being an interesting commodity in this “rechargeable” era. But maybe not everyone is as well-informed about zinc and what it is used for. Can you say a bit about the usage of zinc and also the zinc market?

Charles: One of the reasons that I got into zinc was that I was looking at all the commodities at a time when the resource market was quite depressed. I was looking for something that looked promising for a commodity shock. The zinc market is working in a production deficit. The prices have more than doubled, I wouldn’t call that a commodity shock, but it has gone well. And the fact that we hadn’t had that jump is probably the length of the bull zinc market.

About its usage, more than half of all zinc that is mined is used for galvanizing other metals, such as steel and iron. And significant amounts of zinc are also used to form alloys with other metals.

Isabel: What do you like most about your job?

Charles: I always like this kind of work. It is risky and can be stressful at times, but it doesn’t mean sitting behind a desk. I was up at the property in Ontario earlier this summer seeing first hand what everything looks like. How much infrastructure there is, which I was certainly quite surprised about, roads and even power lines as well. I love the variety that the job offers.

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

Charles: Probably gold though we do have some gold in our Confederation Lake. To me, in a world right now with the geopolitics that we are facing it is kind of a must-have. You have to have some gold.

Isabel: Thank you so much for the insights.

Charles: Thanks for having me, Isabel.

Isabel Belger

Charles Desjardins, president/CEO
of Pistol Bay Mining

Bio

Mr. Desjardins brings more than 25 years of experience in public company finance and management. He is president and CEO of Tandem Capital Group Inc, which was active in the investor relations field during the mid 1980s. Mr. Desjardins was also past president of numerous public mineral exploration and technology companies which traded on the TSXV.

Fun facts

My hobbies: Running marathons, biking, fishing
My favourite airport: JFK
My favourite tradeshow: Mines and Money Hong Kong, PDAC
My favourite commodities: Copper, zinc and gold
With this person I would like to have dinner: Elon Musk
If I could have a superpower, it would be: Extraordinary vision

Read more about Pistol Bay Mining here and here.

Spanish court decision a positive step for Emerita Resources’ proposed zinc acquisition

September 29th, 2017

by Greg Klein | September 29, 2017

A court ruling bodes well for Emerita Resources’ (TSXV:EMO) bid to acquire a Spanish zinc project with an historic deposit, the company says. In appealing a 2014 decision that awarded the Paymogo property to another bidder, Emerita argued that the process involved procedural errors and lacked impartiality. Now the Upper Court of Andalucia has declared the tender invalid and ordered that the bids be reassessed, the company reported on September 28. Emerita believes that if the reassessment “eliminates the illegal criteria and leaves the legal criteria as originally scored” the company’s bid will be accepted.

Emerita stated it didn’t know when the panel members would reconvene “or how they will approach the reassessment.”

Emerita has an exceptional technical team in Spain and a great depth of experience in delineating and developing these types of zinc deposits and is ready to advance the project quickly should it be awarded the tender.—David Gower,
chairperson of Emerita Resources

The ruling marks “a strong endorsement for the region as a place to conduct business to see that the rule of law is transparently and fairly administered,” said company chairperson David Gower. “Emerita has an exceptional technical team in Spain and a great depth of experience in delineating and developing these types of zinc deposits and is ready to advance the project quickly should it be awarded the tender.”

The company has also disputed Spain’s tender process for the Aznalcollar zinc project. In March Emerita stated that the Seventh Provincial Court of Seville rejected a request to dismiss a criminal case against a competing bidder, the Andalucian government panel responsible for awarding the project and Andalucia’s former director of mines.

Calling the decision a positive step in resolving the Aznalcollar dispute, Emerita CEO Joaquin Merino said the company “strongly believes that it is the only qualified bidder.”

Paymogo consists of two areas about seven kilometres apart that have seen extensive drilling, La Infanta and Romanera. The latter hosts an historic, non-43-101 estimate dating to the 1990s that showed 34 million tonnes averaging 0.42% copper, 1.1% lead, 2.3% zinc, 44 g/t silver and 0.8 g/t gold.

Aznalcollar also has an historic, non-43-101 estimate, this one showing 71 million tonnes averaging 3.86% zinc, 2.18% lead, 0.34% copper and 60 g/t silver.

In July Emerita announced plans to acquire the Salobro zinc project in Brazil, with its historic, non-43-101 estimate of 8.3 million tonnes averaging 7.12% zinc.

The company holds the Sierra Alta gold project in Spain.

Mountain Boy Minerals hits high-grade gold as drills turn on three B.C. properties

September 28th, 2017

by Greg Klein | September 28, 2017

With initial results in from one of Mountain Boy Minerals’ (TSXV:MTB) three current drill programs at British Columbia’s Golden Triangle, assays show some of the grades that make the region so attractive. So far 33 holes have been completed at the Red Cliff property, 28 on the Montrose zone and five on the Red Cliff zone. The first batch of assays covered five holes from each zone, with Montrose hitting as high as 19.9 g/t gold over 4.12 metres and 9.98 g/t over 3.35 metres. Drilling extended Montrose at depth and along strike, showing the campaign’s best results:

Hole DDH-MON-3

  • 1.53 g/t gold over 3.05 metres, starting at 227.44 metres in downhole depth
Mountain Boy Minerals hits high-grade gold as drills turn on three B.C. properties

  • 1.06 g/t over 0.46 metres, starting at 231.55 metres

  • 9.98 g/t over 3.35 metres, starting at 248.48 metres

DDH-MON-4

  • 2.61 g/t over 2.28 metres, starting at 244.97 metres

  • 19.5 g/t over 0.76 metres, starting at 256.25 metres

  • 5 g/t over 2.13 metres, starting at 264.33 metres

DDH-MON-5

  • 2 g/t over 5.74 metres, starting at 279.73 metres

  • 1.07 g/t over 0.74 metres, starting at 310.52 metres

  • 19.9 g/t over 4.12 metres, starting at 311.28 metres

True widths weren’t provided. Two selected chip samples from Lower Montrose excelled with grades of 390 g/t and 35.7 g/t gold.

Five other holes targeted the Red Cliff zone, about 1.2 kilometres south. Highlights showed:

RC-17-3

  • 6.4 g/t gold and 3.37% copper over 0.61 metres, starting at 53.23 metres

RC-17-4

  • 1.6 g/t gold and 4.89% copper over 0.46 metres, starting at 37.01 metres

Again, true widths weren’t provided. Two other Red Cliff zone holes showed low values, the company stated.

At the project’s Waterpump zone, meanwhile, a grab sample returned 11.6 g/t gold and a chip sample graded 19.2 g/t.

Mountain Boy considers Montrose, Lower Montrose and Waterpump to be a single zone that was displaced by faulting. Expected to continue another six weeks, the Red Cliff program has several holes slated at depth on Montrose and to the west, as well as six to eight others for Waterpump.

Mountain Boy holds a 35% interest in Red Cliff in a joint venture that has recently acquired additional claims.

The Silver Coin project’s current drill program calls for about 2,000 metres to extend and upgrade lenses of high-grade gold mineralization within the Main Breccia zone to the northwest and to test targets along strike to the south and east.

Using a 2 g/t gold cutoff, a 2013 resource for Silver Coin’s four zones totals:

  • indicated: 702,000 tonnes averaging 4.46 g/t gold, 17.89 g/t silver, 0.88% zinc, 0.33% lead and 0.07% copper

  • inferred: 967,000 tonnes averaging 4.39 g/t gold, 18.98 g/t silver, 0.64% zinc, 0.25% lead and 0.04% copper

Mountain Boy holds a 20% interest in Silver Coin, with the remainder held by JV partner Jayden Resources TSXV:JDN.

And the third drill program has just begun, as the Ataman zone on Mountain Boy’s 100%-held Surprise Creek undergoes 500 to 600 metres to test and sample barite, a mineral essential to oil and gas exploration. Last July the company announced production of a barite concentrate exceeding American Petroleum Institute standards.

Earlier this week Mountain Boy closed a private placement of $586,400.

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

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

Golden Dawn Minerals to refurbish former B.C. gold-silver-copper mine and mill for trial operation

September 28th, 2017

by Greg Klein | September 28, 2017

Slated to begin imminently, a dewatering and rehab program could help Golden Dawn Minerals TSXV:GOM bring new life to a southern British Columbia past producer. Under a previous operator the former Lexington mine produced 5,486 ounces of gold, 3,247 ounces of silver and 860,259 pounds of copper from April to December 2008. Processing took place about 17 kilometres away at the Greenwood mill. With a 212-tpd capacity expandable to 400 tpd, the mill now comprises an important asset in Golden Dawn’s portfolio of nearby former mines.

Golden Dawn Minerals to refurbish former B.C. gold-silver-copper mine and mill for trial operation

Built in 2007 only to be shuttered months later by the downturn,
the Greenwood mill holds a key position in Golden Dawn’s plans.

Lexington’s rehab will focus on two declines prior to installing electrical service and ventilation. The agenda then calls for mapping, sampling and definition drilling to support test mining.

A 2016 resource used a base case 3.5 g/t gold-equivalent cutoff, giving Lexington:

  • 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

Although Lexington remains the company’s current priority, surface drilling continues on the company’s Golden Crown property, host to the Greenwood mill. Fifteen holes have been completed so far, with a plan to further delineate and extend the project’s 2016 resource. Using a 3.5 g/t gold-equivalent cutoff, the estimate 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

Another summer drill program at May Mac, another past producer, wrapped up with eight surface holes totalling 1,886 metres. One interval found 1.13 g/t gold, 23 g/t silver and 0.7% lead over 0.36 metres starting at 204.34 metres in downhole depth. Another intersection revealed previously unknown copper, grading 0.24% over 0.79 metres starting at 45 metres in depth.

Following up on a spring campaign, the program showed May Mac’s Skomac vein system extending at least 215 metres beyond the former mine’s workings. Golden Dawn now has permitting underway for underground drilling to avoid the topographical challenges encountered over the extension.

As for the mill, contractors agree the 2007-built facility “is in excellent shape,” Golden Dawn stated. Estimates call for about $270,000 and three to five weeks to put the plant back into operation. The company anticipates that happening as feed becomes available from the Lexington mine.

Golden Dawn also spent the summer prospecting additional former mine sites and mineral showings on other holdings within an approximately 15-kilometre radius of the mill.

Given the portfolio’s existing resources, infrastructure and potential, Golden Dawn hopes to enter production without de-risking at the feasibility level. The properties lie approximately 500 kilometres by highway east of Vancouver.

Earlier this month the company closed a $2-million private placement first tranche. Subject to approvals, Golden Dawn expects to close an additional $640,000.

Read more about Golden Dawn Minerals.

Update: Pistol Bay Mining announces 43-101 resource, JV discussions and—again—newly staked land

September 20th, 2017

by Greg Klein | Updated September 20, 2017

Update: With staking announced on September 14 and 20, Pistol Bay Mining has added more than 5,860 hectares to its property package, bringing the total to about 17,000 hectares.

Results from Confederation Lake’s first regional state-of-the-art geophysics have prompted Pistol Bay Mining TSXV:PST to expand its presence in the VMS-rich northwestern Ontario greenstone belt. Two acquisition announcements came within eight days after the company reported initial findings from the 2,100-line-kilometre VTEM-Plus survey. Those results accompanied announcements of a new resource estimate for one of the portfolio’s projects as well as potential joint venture interest.

Pistol Bay Mining announces VTEM-inspired acquisition, resource update and JV discussions

“We are seeing lots of new anomalies in the survey data, not just conductors but the IP effect anomalies as well, and Pistol Bay is going to have a busy few years exploring them all,” said CEO Charles Desjardins.

The new claims cover multiple conductors and IP-effect anomalies, some of which have had previous drilling with results showing zinc or copper, the company stated. The new data also shows parallel conductors or extensions of known conductors.

New claims between Pistol Bay’s Fredart and Joy claim groups host four conductors of 400, 850, 900 and 950 metres that appear not to have undergone drilling. Fredart A holds an historic, non-43-101 copper estimate. Like the four newly found anomalies, the Joy North anomaly hasn’t been drilled.

The airborne survey confirmed conductivity at all of the portfolio’s historic showings, zones and mineralized drill intercepts, Pistol Bay added. While analysis continues, data so far shows conductivity extending beyond known zones, along strike and in new clusters apart from known mineralization.

Once we’ve got our targets finalized, we will be entertaining proposals for joint ventures to advance this highly prospective property.—Charles Desjardins,
CEO of Pistol Bay Mining

“Because of the large number of potential targets generated by the VTEM survey, we are considering inviting joint venture partners for all or parts of the Confederation Lake project,” Desjardins noted. “We have had early-stage discussions with potential joint venture partners. Once we’ve got our targets finalized, we will be entertaining proposals for joint ventures to advance this highly prospective property.”

Pistol Bay also filed a technical report for Garnet Lake, a Confederation Lake property that hosts the Fredart A zone. Updating an historic 2007 estimate for the Arrow zone, the 43-101 incorporates 20 additional holes. Using a base case 3% zinc-equivalent cutoff, an inferred category shows:

  • 2.1 million tonnes averaging 0.72% copper, 5.78% zinc, 19.5 g/t silver and 0.6 g/t gold, for a zinc-equivalent grade of 8.5%

Contained amounts come to:

  • 34.3 million pounds copper, 274 million pounds zinc, 1.33 million ounces silver and 41,000 ounces gold

Contingent on favourable geophysical and other data, the 43-101 recommends two 1,000-metre holes at Arrow to test for possible down-plunge extensions of the resource. The report also calls for another 3,000 metres on targets to be identified elsewhere on the Garnet property.

Last May the company signed an LOI to acquire the 496-hectare Copperlode property, about four kilometres along strike from Arrow.

Visual Capitalist: One chart shows EVs’ potential impact on commodities

September 15th, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist | September 15, 2017

 

One chart shows EVs’ potential impact on commodities

The Chart of the Week is a Friday feature from Visual Capitalist.

 

How demand could change in a 100% EV world

What would happen if you flipped a switch and suddenly every new car that came off assembly lines was electric?

It’s obviously a thought experiment, since right now EVs have close to just 1% market share worldwide. We’re still years away from EVs even hitting double-digit demand on a global basis, and the entire supply chain is built around the internal combustion engine, anyways.

At the same time, however, the scenario is interesting to consider. One recent projection, for example, put EVs at a 16% penetration by 2030 and then 51% by 2040. This could be conservative depending on the changing regulatory environment for manufacturers—after all, big markets like China, France and the UK have recently announced that they plan on banning gas-powered vehicles in the near future.

The thought experiment

We discovered this “100% EV world” thought experiment in a UBS report that everyone should read. As a part of their UBS Evidence Lab initiative, they tore down a Chevy Bolt to see exactly what is inside, and then had 39 of the bank’s analysts weigh in on the results.

After breaking down the metals and other materials used in the vehicle, they noticed a considerable amount of variance from what gets used in a standard gas-powered car. It wasn’t just the battery pack that made a difference—it was also the body and the permanent-magnet synchronous motor that had big implications.

As a part of their analysis, they extrapolated the data for a potential scenario where 100% of the world’s auto demand came from Chevy Bolts, instead of the current auto mix.

The implications

If global demand suddenly flipped in this fashion, here’s what would happen:

Material Demand increase Notes
Lithium 2,898% Needed in all lithium-ion batteries
Cobalt 1,928% Used in the Bolt’s NMC cathode
Rare Earths 655% Bolt uses neodymium in permanent magnet motor
Graphite 524% Used in the anode of lithium-ion batteries
Nickel 105% Used in the Bolt’s NMC cathode
Copper 22% Used in permanent magnet motor and wiring
Manganese 14% Used in the Bolt’s NMC cathode
Aluminum 13% Used to reduce weight of vehicle
Silicon 0% Bolt uses six to 10 times more semiconductors
Steel -1% Uses 7% less steel, but fairly minimal impact on market
PGMs -53% Catalytic converters not needed in EVs

Some caveats we think are worth noting:

The Bolt is not a Tesla

The Bolt uses an NMC cathode formulation (nickel, manganese and cobalt in a 1:1:1 ratio), versus Tesla vehicles which use NCA cathodes (nickel, cobalt and aluminum, in an estimated 16:3:1 ratio). Further, the Bolt uses a permanent-magnet synchronous motor, which is different from Tesla’s AC induction motor—the key difference being rare earth usage.

Big markets, small markets

Lithium, cobalt and graphite have tiny markets, and they will explode in size with any notable increase in EV demand. The nickel market, which is more than $20 billion per year, will also more than double in this scenario. It’s also worth noting that the Bolt uses low amounts of nickel in comparison to Tesla cathodes, which are 80% nickel.

Meanwhile, the 100% EV scenario barely impacts the steel market, which is monstrous to begin with. The same can be said for silicon, even though the Bolt uses six to 10 times more semiconductors than a regular car. The market for PGMs like platinum and palladium, however, gets decimated in this hypothetical scenario—that’s because their use as catalysts in combustion engines are a primary source of demand.

Posted with permission of Visual Capitalist.