Thursday 23rd November 2017

Resource Clips


Posts tagged ‘gold’

Murenbeeld & Co analyst Brian Bosse wonders how a bank could sell a counterfeit gold bar

November 22nd, 2017

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Resource update underway for Rockcliff Metals’ Talbot copper property in Manitoba

November 15th, 2017

by Greg Klein | November 15, 2017

One of a number of active projects in Rockcliff Metals’ (TSXV:RCLF) Flin Flon-Snow Lake portfolio, the Talbot copper property has an updated resource estimate in the works. The initiative follows Phase II drilling and will accompany a DPEM geophysical survey on the West Talbot deep conductive plate, below and west of the deposit. In April the company announced finding VMS mineralization within the plate.

Resource update underway for Rockcliff Metals’ Talbot copper property in Manitoba

While analyzing this year’s drilling data for a resource update,
Rockcliff will conduct geophysics to help identify 2018 targets.

Rockcliff holds a 51% option on Talbot from Hudbay Minerals TSX:HBM.

Last spring’s drill campaign “identified additional areas of high-grade enrichment in the hanging wall and along strike of the present resource,” said president/CEO Ken Lapierre. “The additional DPEM geophysical survey will help us vector in on the exact up-dip location of the West Talbot deep conductive plate. The Talbot copper deposit was originally identified as a smaller geophysical conductive plate so any new larger plates identified in this area are viewed as high-priority targets.”

Dating to January 2016, Talbot’s current resource shows an inferred category for three zones:

Main zone

  • 1.44 million tonnes averaging 3.4% copper, 2.6 g/t gold, 2.4% zinc and 61 g/t silver for 107 million pounds copper, 118,600 ounces gold, 76.4 million pounds zinc and 2.83 million ounces silver

Footwall zone

  • 443,900 tonnes averaging 2.2% copper, 2 g/t gold, 2.4% zinc and 55.6 g/t silver for 22 million pounds copper, 28.5 ounces gold, 23.2 million pounds zinc and 793,800 ounces silver

North lens

  • 283,400 tonnes averaging 0.7% copper, 2 g/t gold, 1.3% zinc and 20.6 g/t silver for 4.6 million pounds copper, 18,300 ounces gold, 7.9 million pounds zinc and 187,600 ounces silver

Total

  • 2.17 million tonnes averaging 2.8% copper, 2.4 g/t gold, 2.2% zinc and 54.6 g/t silver for 133.6 million pounds copper, 165,400 ounces gold, 107.4 million pounds zinc and 3.81 million ounces silver

Rockcliff expects work to be completed by year-end, with results to be released once analyzed. Talbot has more drilling planned for 2018.

Active on several Snow Lake assets, the company began another drill campaign last week at the Bur zinc-polymetallic property. See a roundup of recent Rockcliff news here.

Read more about Rockcliff Metals here and here.

Cambridge House International president Jay Martin looks forward to the San Francisco Silver and Gold Summit on November 20 and 21

November 14th, 2017

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Castle Silver Resources drills 1.55% cobalt over 0.65 metres with nickel, gold and silver in Ontario

November 13th, 2017

by Greg Klein | November 13, 2017

Last summer’s drilling at Ontario’s former Castle mine “intersected mineralization in each and every hole,” Castle Silver Resources TSXV:CSR reported November 13. The one assay released so far hit 1.55% cobalt, 0.65% nickel, 0.61 g/t gold and 8.8 g/t silver over 0.65 metres starting near surface at 3.85 metres in downhole depth. The company estimates true width between 65% and 85%.

Drilling finished in late August when an originally planned 1,500-metre program completed 22 holes totalling 2,405 metres.

Castle Silver Resources drills 1.55% cobalt over 0.65 metres with nickel, gold and silver in Ontario

Castle Silver expanded its summer campaign
from 1,500 metres to 2,405 metres.

“Once again we’ve demonstrated how historical operators overlooked the potential for cobalt, gold and base metals at the Castle mine as they focused exclusively on the extraction of high-grade silver,” said president/CEO Frank Basa.

“We will carry out trenching to follow up on an array of new near-surface targets generated by this drilling in the immediate vicinity of the Castle mine. But our priority now is to complete final preparations to carry out critical trenching and drilling of untested structures on the first level of the mine.”

With intermittent production between 1917 and 1989, the former mine has 11 levels totalling about 18 kilometres of underground workings. “This does not include an unknown extent of drilled vein structures which were never mined, typically due to silver grades below a certain high-grade threshold, for which CSR has records,” the company added.

Using XRF analysis, an independent firm has found potential for high-grade cobalt mineralization within unmined structures along first-level adit drifts and walls. In July Castle Silver released results from an 82-kilogram bulk sample of vein material that showed 1.48% cobalt as well as 5.7 g/t gold and 46.3 g/t silver. As a result, the company re-evaluated five previous chip samples for gold, with results averaging 3.7 g/t. The samples originally assayed 1.06% cobalt, 5.3% nickel and 17.5 g/t silver.

Earlier this month Castle Silver and Granada Gold Mine TSXV:GGM announced a provisional milling agreement for a plant that would be located on Castle Silver’s property in Gowganda, Ontario. About a 204-kilometre drive from Gowganda, Granada’s project reached pre-feas in 2014 and a resource update in June.

Castle Silver closed the final tranche of a private placement totalling $1.2 million in June.

Mining commentator Stan Sudol says undue emphasis on the gold rushes stifles Canadians’ understanding of a vital industry

November 10th, 2017

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Confidence resumes as junior mining market caps reach 2010 levels: PwC

November 8th, 2017

by Greg Klein | November 8, 2017

Cautioning that the market hasn’t fully returned, PricewaterhouseCoopers released data that quantifies the sector’s encouraging mood. As of June 30, TSXV-listed mining/exploration market caps, financings, M&A and IPOs all increased substantially over the previous 12-month period. Calling it a “delicate recovery,” PwC says the numbers show the second straight year of improvement and some of the best results since 2010. Commodity prices get much of the credit, although a more disciplined approach to spending contributed to the positive circumstances.

Junior Mine 2017: Confidence Rekindled examines data from TSXV mining/exploration companies, where almost 1,000 such firms dominate the Venture’s membership and make up 47% of the exchange’s total value and 59% of its trading volume.

The top 100 TSXV mining/exploration market caps totalled $12.2 billion, up 7% from the previous 12-month period. Overall, mining/exploration capitalization increased 18%.

But the numbers compared less impressively with other Venture sectors, where market caps for financial services rose almost 56%, oil and gas 43% and life sciences 95%. PwC attributed the under-performance partly to gold’s levelled-off price.

Treasuries for the Venture’s top 100 miners/explorers rose 74% to $1.57 billion. Those 100 companies raised a total of $2.04 billion in equities, up 174%, and $487 million in debt, up 20%. “But this windfall was unevenly spread, as many juniors continued to struggle to raise financing and more than one-quarter of the total funds went to just four companies”: Cobalt 27 Capital TSXV:KBLT, Leagold Mining (since graduated to the big board as TSX:LMC), Trek Mining TSXV:TREK (expected to merge with NewCastle Gold TSX:NCA and Anfield Gold TSXV:ANF to form an anticipated new company called Equinox Gold TSXV:EQX) and Bluestone Resources TSXV:BSR.

Still, 56 of the top 100 raised over $10 million, seven of them raking in over $50 million.

Spending for the top 100 hit $1.15 billion, compared with $268 million previously. Nevertheless “junior miners appear to be avoiding the temptation of rushing to spend,” the report stated.

PwC quoted Barkerville Gold Mines TSXV:BGM CFO Andres Tinajero saying, “Even though there are a lot of resources flowing around in terms of funding for the juniors, they’re not spending the money as fast as before. So probably, yes, we’ve learned our lesson from the past.”

M&A activity brought more encouragement, as did IPOs. Five of the latter raised $40.2 million. That compared with the previous period’s zero IPOs raising zero dollars.

“We’re not fully recovered from the downturn but we’re definitely on a slow but bumpy ride to recovery,” commented PwC Canada partner Rebecca Chan.

The report is the first of four planned PwC studies examining the industry.

‘The next world order’

November 7th, 2017

Gold’s our best preparation for a new global monetary system, says James Rickards

by Greg Klein

Gold’s our best preparation for the new global monetary system, says James Rickards

James Rickards

An economic crisis looms, ready to strike within a few years and maybe imminently. Exponentially worse than 2008, it will be a disaster “so large the system does not bounce back. The system ceases to exist.” That’s the bleak vision of James Rickards, lawyer, economist, portfolio manager, newsletter writer, author of four books and a keynote speaker at the Silver and Gold Summit to be hosted in San Francisco on November 20 and 21. He offers some advice on how to prepare for the impending peril.

The collapse will hardly leave a void, he maintains. World powers redesigned the international monetary system three times last century and will do it again. Among the first casualties will be bank deposits, investments and the rest of a digitized belief system that many people think guards their future security. As citizens react, “the money riots will begin.”

Sovereigns don’t go down without a fight. The response to money riots will be confiscation and brute force. Governing elites will be safe in their hollowed-out mountain command centers. Private elites will fend for themselves in their yachts, helicopters, and gated communities, which will be converted to armed fortresses.

Gold’s our best preparation for the new global monetary system, says James Rickards

There will be blood in the streets, not metaphorically, but literally. Neofascism will emerge, order responding to disorder, with liberty lost.

This is the “next world order” that Rickards describes in his two most recent books, The New Case for Gold and The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis. Published last year, the books share overlapping content, with the latter volume focusing on why and how Rickards believes such events will take place. The New Case for Gold emphasizes owning the stuff as a survival strategy.

Rickards says the too-big-to-fail banks that failed in 2008 are even bigger now and more bloated with leverage. As are derivatives, the Warren Buffett-labelled “weapons of mass destruction.” Moreover the complexity of markets goes beyond “interconnected.” They’re unfixable.

A watchmaker, he points out, can open the back of a timepiece, fix or replace a gear and put everything back together. “Now imagine you take the back off the same watch and instead of gears you find a metallic liquid soup. How do you change a gear now?” Old models of economic intervention won’t work.

Gold’s our best preparation for the new global monetary system, says James Rickards

And this time the crisis will accompany a worldwide lack of confidence in the U.S. debt-diminished dollar as a reserve currency. China, along with Russia and other countries, could hasten events by conducting international trade in other currencies, throwing the dollar into freefall. Countries that have been buying and hoarding gold (contrary to Canada’s selloff) will demand a say in the scrip’s replacement. Yellow metal will prevail, either as a gold-backed international special drawing right “or the oldest form of money, which is gold.”

“It’s not a ten-year forecast,” he insists. “Could it be five years? Maybe. Could it be one year? Yes.” Watch for the endgame when China’s gold-to-GDP ratio meets or exceeds that of the U.S.

Rickards expects $10,000 an ounce, maybe $50,000. Manipulation will end when powerful states have the price where they want it, nullifying the hustling ability of far less powerful players.

He recommends making gold 10% of an individual’s investible assets, excluding a principal residence and equity in one’s own business. Or 15% to 20% “if you’re somewhat more aggressive.” If he’s wrong and gold drops 20%, for example, the 10% allocation causes a 2% loss on the entire portfolio.

He believes the time to buy is now. “I know that when the crunch comes, the large players are going to get all the gold available. The institutions, the central banks, the hedge funds, and the customers with relationships with the refiners are the ones who are going to get all the gold. Small investors will find they can’t get any.”

Store it in a non-bank depository, he cautions. Americans might consider the Texas state bullion vault. “In an extreme situation, you should be able to drive down to Texas, pick up your gold, and drive home before the highways are closed. If the highways are clogged, use a motorcycle.”

Sweetness and light, he ain’t. But whether you’re seeking survival strategies or evaluating dystopian possibilities, he presents a compelling case.

Rickards delivers a keynote address and takes part in a panel discussion on the first day of the Silver and Gold Summit, to be held in San Francisco from November 20 to 21. To save 25% on admission click here and enter promo code RESOURCE25.

Update: Rockcliff Metals drills high-grade Manitoba zinc project

November 7th, 2017

Update: On November 7 Rockcliff Metals TSXV:RCLF (formerly Rockcliff Copper TSXV:RCU) announced drilling had begun at its Bur zinc project in northern Manitoba.

by Greg Klein | September 26, 2017

A high-grade zinc-polymetallic project gets some overdue rig attention as Rockcliff Copper TSXV:RCU returns to its Bur property in northern Manitoba’s Flin Flon-Snow Lake camp next month. Ten to 15 holes totalling around 3,000 metres will work on updating and expanding the VMS deposit along strike and at depth.

Using a zinc-equivalent cutoff of 5%, the historic, non-43-101 2007 estimate showed:

  • indicated: 1.05 million tonnes averaging 8.6% zinc, 1.9% copper, 12.1 g/t silver and 0.05 g/t gold

  • inferred: 302,000 tonnes averaging 9% zinc, 1.4% copper, 9.6 g/t silver and 0.08 g/t gold
Rockcliff Copper prepares to drill northern Manitoba zinc deposit

Part of the company’s Snow Lake project, a package of properties totalling over 45,000 hectares, Bur sits about 22 kilometres by road from Hudbay Minerals’ (TSX:HBM) copper-zinc concentrator. Rockcliff’s 100% earn-in on Bur calls for $3 million in spending over four years.

Earlier this month the company announced initial geophysical results from its Laguna property, site of a former mine that produced 60,000 ounces of gold averaging 18.7 g/t during intermittent production from a single vein. With very low frequency and induced polarization surveys still underway, an airborne magnetometer found “multiple, surface-exposed, high-grade gold-bearing quartz vein stockwork systems,” the company stated.

Last May Rockcliff announced plans for two other Snow Lake gold properties as well as Laguna. The previous month the company reported drilling had encountered a new VMS zone with copper-zinc-gold-silver results on the 51%-optioned Talbot property. A 2016 43-101 inferred resource for Talbot’s three zones totals 133.6 million pounds copper, 165,400 ounces gold, 107.4 million pounds zinc and 3.81 million ounces silver.

Rockcliff’s northern Manitoba package also includes the Rail deposit with a 43-101 copper-polymetallic resource, three zinc deposits with historic, non-43-101 estimates in addition to Bur, as well as the three gold properties. All sit within trucking distance of two Hudbay plants.

Late last month Rockcliff closed an oversubscribed private placement of $1.35 million.

Read more about Rockcliff Copper here and here.

Aurvista Gold readies winter drilling on Abitibi’s Casa Berardi deformation zone

November 6th, 2017

Update: On November 8, 2017, Aurvista announced a change of name and stock symbol to Maple Gold Mines Ltd TSXV:MGM, tentatively to take place November 20.

by Greg Klein | November 6, 2017

Preparations on and off the field continue as Aurvista Gold TSXV:AVA plans another winter drill campaign at its newly expanded Douay gold property. Now totalling over 37,000 hectares, the project will benefit from an extensive program of re-logging, geological modelling and data integration to target both greenfields and brownfields priorities. The work focuses on outlining clusters of higher-grade and broader gold intercepts.

Aurvista Gold readies winter drilling on Abitibi’s Casa Berardi deformation zone

Dating to the 1976 discovery, Douay houses over
220,000 metres of core with more to come this winter.

Out of more than 220,000 metres of core dating back to Douay’s 1976 discovery, about 27,000 metres had yet to be re-logged as fall began. Aurvista also has a property-scale remote spectral geology project underway “to help us better understand the scale of the Douay system and to focus our future field work in the central part of the property,” said VP of exploration Fred Speidel.

Helping guide the project are an expanded board of directors and new technical advisory committee that joined the company in July. Last month Jay Chmelauskas took on the chairperson role. Having held a number of positions with Western Lithium and Lithium Americas TSX:LAC, he had previously served as president/CEO of Jinshan Gold Mines, where he led development of China’s second-largest gold producer as well as exploration that has since resulted in the development of an additional Chinese gold mine.

Douay covers over 55 kilometres of strike along Quebec’s Casa Berardi deformation zone. Using a 0.5 g/t cutoff, an April resource update for seven zones gave an inferred total of 83.33 million tonnes averaging 1.05 g/t for 2.81 million gold ounces. The deposit remains open in multiple directions.

The project’s last drill program sunk 59 holes for 23,965 metres, with the final batch of assays released in July. The same month Aurvista closed private placements totalling $10.1 million.

Bullion buyers beware: Fake bars and coins hit the market

November 1st, 2017

by Greg Klein | November 1, 2017

Pssst… Wanna buy an ounce of gold for a buck? One Vancouver Craigslist vendor’s offering such a deal, to be transacted in a “safe spot for the both of our safety” [sic]. The merchandise consists of a bar supposedly produced by the Royal Canadian Mint. The seller claims to have other gold bars and maple leaf coins available.

Bullion buyers beware: Fake bars and coins hit the market

Although the Royal Canadian Mint safeguards
its products, at least one fake has surfaced.

While it’s not clear what the $1 ploy intends to accomplish (and the offer changed as this story was being written), the sales pitch comes after CBC revealed that an Ottawa branch of the Royal Bank sold a fake one-ounce bar attributed to the Mint. The Mint denied supplying the fake, saying that counterfeits of its bullion products are “extremely rare and this is an isolated case.”

But as a number of critics responded, bullion and currency counterfeiters don’t normally produce one-off fakes.

That was a point also emphasized by two U.S. congressmen who chastised their country’s mint and Secret Service for not investigating a batch of fake American Eagle gold coins. As reported in Goldseek, their letter included what appeared to be a 1995 example. “You are free to keep it, as it’s a worthless tungsten fake,” the congressmen stated.

They go on to ask what investigations have taken place into fake bullion and what anti-counterfeiting measures are being introduced “to protect the integrity of U.S. coins minted specifically of gold, silver, platinum and palladium.”

A statement from Canada’s mint emphasizes its world-class assay lab and “advanced anti-counterfeiting features … such as Bullion DNA technology and micro-engraved security marks.”

Kitco referred to a recent statement from the Professional Numismatists Guild calling fake bullion a multi-million-dollar business. By happy coincidence a news outlet and bullion dealer, Kitco emphasized the importance of buying from a reputable seller.

But as Murenbeeld & Co analyst Brian Bosse told CBC, “The real question is, how did this get into RBC’s inventory?” An RBC spokesperson said the bank has an internal investigation underway “but wouldn’t say if the bank is making changes to how it handles and verifies bullion,” CBC added.

Bosse warned the network that counterfeiting could place a chill on the bullion market.