Thursday 27th October 2016

Resource Clips

Posts tagged ‘Canamex Resources Corp (CSQ)’

Gwen Preston looks back on PDAC and an exciting week

March 15th, 2016

by Gwen Preston | | March 15, 2016

What a week it was! Another PDAC is in the books. And a good one. It was undoubtedly small—fewer booths, attendance of just 22,000 compared to an average of 29,000 over the last five years—but the buzz was inarguably better than last year.

Gwen Preston looks back on PDAC and an exciting week

Mining deals flowed with PDAC buzzing in the background.

I comment on my PDAC impressions after going through the mining news events of the week. As usual, news flow ramped up during the world’s biggest mining conference so there was lots to talk about, and all I got to were the four biggest stories.

Others also deserve comment. Canamex Resources (TSXV:CSQ), for example, published a PEA showing how they could turn their Bruner gold project into a 46,500-ounce-per-year producer for a capital cost of just US$33.4 million. If built, the mine should be able to generate a 39% after-tax internal rate of return and operate for six years. It would be a simple oxide heap leach operating on patented land, which eases permitting considerably.

Those are pretty good numbers. The asset and company are small for my tastes but Canamex deserves credit: it not only survived the bear market but advanced its asset to the point where it supports an economic PEA. If the team can now establish a path to production, starting with accessing the cash needed to take the next step, its share price may well respond. This is, after all, a simple gold project in Nevada, one of the most desirable mining jurisdictions in the world.

That’s one example of interesting news. There was no shortage: companies arrived at PDAC armed with new drill results, property deals, exploration plans, financings and resource estimates.

Deal flow was the most exciting part. I go through three new deals below (Silver Standard buying Claude, Endeavour buying True Gold and Lundin moving on Timok), but financings were also hot. Pretium raised US$130 million, Franco pulled in an oversubscribed US$920 million and Kinross raised US$250 million. I like to see money moving. This sector seizes up otherwise.

No wonder PDAC-ers were pumped. Or cautiously optimistic, in the very least…. Continue reading this article on

Vancouver explorer rockets on Nevada gold drilling results

November 5th, 2013

by Frik Els | November 5, 2013 | Reprinted by permission of

Canamex Resources TSXV:CSQ shot up 28% on November 5 after announcing a set of excellent drill results at its Bruner gold project, Nye county, Nevada.

The Vancouver-based explorer said in a statement its final round of reverse circulation drilling in 2013 at drill hole B-1340 intersected 57.9 metres of gold grading 5.23 grams per tonne between 79.3 metres and 137.25 metres in depth, and was lost at 140.3 metres in a fracture zone while still in gold mineralization.

Vancouver explorer rockets on Nevada gold drilling results

Photo: Canamex

The intercept included a clay-rich and silicified interval at 83.87 metres to 85.4 metres containing 121 g/t gold. Canamex pointed out the entire length of the hole is oxidized and it is located in the heart of the historic resource area.

Canamex’s Bruner project is located in central Nevada near the Paradise Peak, Round Mountain and Rawhide mines with historical production of 100,000 ounces.

In early afternoon dealings the micro cap was trading up 28.6% at $0.09 on the Toronto Venture board, in huge volumes. More than 770,000 shares versus usual daily volume of 80,000 shares had changed hands by 1:30 p.m. EST on November 5.

The $8.7-million company did not escape the carnage in the junior mining sector, which has been decimated this year.

Canamex, which is also drilling for gold in Guyana, is down 58% since the start of the year.

Reprinted by permission of

Caribbean calling

April 10th, 2013

Sandspring’s pre-feas moves another Guyana gold project forward

by Greg Klein

Next Page 1 | 2

A revised development plan has reduced initial capital expenditures for Sandspring Resources’ TSXV:SSP Toroparu gold-copper project in Guyana. A pre-feasibility study released late April 9 laid out the economics for a 16-year open pit operation.

Using a 5% discount rate, the base case forecasts a pre-tax net present value of US$992 million and a 27.2% internal rate of return. After taxes the numbers show a $691-million NPV and a 23.1% IRR.

Sandspring’s pre-feas moves another Guyana gold project forward

Sandspring incorporated last year’s discovery of a
satellite gold deposit into Toroparu’s pre-feasibility study.

The study cut the initial capex to $464 million from the $482 million estimated by the January 2012 preliminary economic assessment update. Contributing to the more optimistic figures is an estimated $37 million that would come from cyanide leach processing of saprolite gold ore prior to commercial production. By year three, cash flow should fund the $50-million expansion to a 22,500-tonne-per-day operation. Payback would come in 2.6 years. Average annual production over 16 years would be 228,000 gold ounces at a cash cost of $700 an ounce, with copper credits factored in. About 78% of production would go into doré bars, with the rest in concentrate.

The project’s reserves include a satellite pit 1.2 kilometres from Toroparu that was discovered in May 2012. Combining three types of ore—saprolite gold, fresh gold and fresh gold-copper—the reserves show:

  • a proven category of 29.78 million tonnes averaging 1.1 grams per tonne gold and 0.13% copper for 1.05 million gold ounces and 64 million copper pounds
  • a probable category of 97.33 million tonnes averaging 0.98 g/t gold and 0.1% copper for 3.06 million gold ounces and 147 million copper pounds.

Within the pit shell but outside the reserves are resources that use a 0.3 g/t gold cutoff to show:

  • measured and indicated categories totalling 90.24 million tonnes averaging 0.83 g/t gold and 0.06% copper for 2.42 million gold ounces and 112 million copper pounds
  • an inferred category of 124.34 million tonnes averaging 0.74 g/t gold and 0.04% copper for 2.97 million gold ounces and 111 million copper pounds.

In a statement accompanying the announcement, Sandspring CEO Rich Munson said, “We are encouraged by recent approaches from third parties expressing interest in developing Toroparu jointly with Sandspring. Despite the expressions of interest, we recognize that funding a project of this scale is challenging in the current environment. We have therefore engaged Cutfield Freeman & Co, a leading independent advisory firm in the mining sector, to conduct a process to determine the options available for financing.”

Next Page 1 | 2