Friday 24th January 2020

Resource Clips


Posts tagged ‘gold’

Kendra Johnston of the Association for Mineral Exploration acknowledges the work of Geoscience BC

January 22nd, 2020

…Read more

Zimtu Capital moves quickly to stake Lac Elmer East in Quebec’s James Bay region

January 17th, 2020

by Greg Klein | January 17, 2020

Hoping the geology proves similar, a prospect generator has claimed new turf near a new discovery. Zimtu Capital’s (TSXV:ZC) portfolio now includes the 1,840-hectare Lac Elmer East property, eight kilometres from the eastern edge of Azimut Exploration’s (TSXV:AZM) recent Elmer discovery.

Zimtu Capital moves quickly to stake Lac Elmer East in Quebec’s James Bay region

Acting promptly on Azimut’s January 14 announcement, Zimtu acquired the claims through a 50/50 staking arrangement with a local prospector.

Azimut’s maiden drill program hit a number of impressive intervals, including 3.15 g/t gold over 102 metres, starting at 34 metres in downhole depth. Although nearby results don’t indicate another property’s mineralization, Lac Elmer East trends along the same Archean Greenstone Belt in an area of high magnetic susceptibility.

Zimtu describes its new acquisition as “bounded to the southeast side by a regional dextral strike slip fault and to the north by a sinistral strike slip fault. The property is underlain by a diverse suite of Archean rocks including rhyolite, dacite, tonalite, diorite, gneiss, volcaniclastics and porphyritic felsic intrusions,” as mapped by the province’s ministry of energy and natural resources.

The property has vehicle access from the James Bay Road.

Open and shut cases: East

January 7th, 2020

Some 2019-2020 ups and downs for mining in Quebec and Atlantic Canada

by Greg Klein

Some 2019-2020 ups and downs for mining in Quebec and Atlantic Canada

Eldorado workers celebrate another endowment from Lamaque’s legacy.
(Photo: Eldorado Gold)

 

This is the final installment of a series on mine openings and closures across Canada for 2019 and 2020.

Quebec

Val-d’Or flaunted its abundance yet again as Eldorado Gold TSX:ELD reached commercial production at Lamaque in March. Pre-commercial mining and toll milling began the previous year, with the first gold pour from the project’s refurbished Sigma mill in December 2018. Guidance for 2019 was set at 100,000 to 110,000 ounces, with 125,000 to 135,000 initially expected for each of 2020 and 2021.

At least, that was the original plan. In September 2019 the company began a PEA to study an annual increase to 170,000 ounces. By November Eldorado announced an additional 19,000 ounces for Lamaque’s proven and probable reserves, along with 191,000 ounces for measured and indicated resources.

Some 2019-2020 ups and downs for mining in Quebec and Atlantic Canada

A drill operator probes the Triangle deposit at Lamaque.
(Photo: Eldorado Gold)

That gives the deposit reserves of 972,000 ounces within a measured and indicated 1.55 million ounces.

But until further feasibility states otherwise, Lamaque’s life expectancy ends in seven years.

Eldorado picked up the property with its 2017 buyout of Integra Gold. The Triangle deposit now under production wasn’t part of the historic Lamaque mines, one of which was Quebec’s biggest gold producer between 1952 and 1985. In 2016 Integra’s Gold Rush Challenge offered geo-boffins a half-million-dollar prize to apply cutting edge technology in search of additional auriferous riches on historic turf adjacent to the current operation.

 

Attributing its setbacks more to cost overruns than an overinflated bubble, Nemaska Lithium TSX:NMX ended 2019 by suspending mine construction and demo plant operations, laying off 64 staff, getting creditor protection and halting trades. Hanging in the balance is a possible $600-million investment that’s been under negotiation since July.

Just over a year ago Nemaska confidently spoke of steady construction progress, with concentrate production expected in H2 2019 and lithium salts production in H2 2020. But by February 2019 the company warned of a $375-million capex shortfall revealed by “detailed engineering work, revised site geo-technical data and updated equipment and installation costs” not foreseen in the previous year’s feasibility update.

That same month Livent Corp (previously FMC Corp) cancelled an 8,000-tpa lithium carbonate supply agreement that was to start in April 2019.

Some 2019-2020 ups and downs for mining in Quebec and Atlantic Canada

Until funders come to the rescue, Nemaska’s
Whabouchi camp will resemble an instant ghost town.
(Photo: Nemaska Lithium)

By September a US$75-million second tranche of a US$150-million stream agreement with Orion Mutual Funds fell into jeopardy. Bondholders called for repayment of US$350 million. The company had so far spent only $392 million towards a capex estimated at $1.269 billion.

Plan A calls for sealing a $600-million deal with the London-based Pallinghurst Group, which over the last 12 years has invested about US$2 billion in mining projects. But negotiation delays caused Nemaska to seek creditor protection, which was granted in December. Bracing for a possible fallout with Pallinghurst, Nemaska says it’s also considering other investment, debt or M&A alternatives.

Before suspending the Phase I plant at Shawinigan, however, the company did finish delivering samples to potential customers “ranging from cathode manufacturers to battery makers to industrial grease users, in addition to our existing offtake customers, which include LG Chemicals, Johnson Matthey and Northvolt” using proprietary methodology.

The mine plan calls for 24 years of open pit operation prior to nine years of underground mining, producing an annual 205,000 tonnes of 6.25% Li2O spodumene concentrate. On achieving commercial production, the Shawinigan plant’s annual capacity would reach 37,000 tonnes lithium hydroxide monohydrate.

Should funding allow, Nemaska would target Q3 2021 to begin spodumene concentrate production at Whabouchi and Q2 2022 to start producing lithium salts at Shawinigan.

The provincial government’s investment agency Ressources Québec holds about 12.5% of Nemaska.

 

Some 2019-2020 ups and downs for mining in Quebec and Atlantic Canada

Although Nyrstar has moved mining equipment
out of Langlois, the company says exploration
potential remains. (Photo: Nyrstar)

Another James Bay-region operation, the Langlois zinc-copper mine went back on care and maintenance in December. A short-lived operation between July 2007 and November 2008, Langlois was taken over by Zurich-headquartered Nyrstar in 2011. Mining resumed the following year. But by October 2018 the suspension was decided “due to rock conditions having deteriorated,” making the mine uneconomic. Some 240 staff lost their jobs.

But Langlois “has exploration potential for other metals such as gold,” Nyrstar stated. “The company is in active discussions with interested parties in the mine and its assets.”

Usable equipment was slated for transfer to other Nyrstar properties in Tennessee and on Vancouver Island, where the company’s Myra Falls zinc-copper-polymetallic mine suspended operations briefly in early 2019.

As part of a debt restructuring, in July Nyrstar came under majority ownership of the Trafigura Group, one of the world’s largest physical commodities traders.

 

Fear of closure came to another Quebec mine in September after Stornoway Diamond followed its application for creditor protection with this ominous declaration: “There is and will be no recoverable or residual value in either Stornoway’s common shares or convertible debentures.”

Such an admission made the company’s October delisting something of a formality. But if investors got wiped out, the Renard mine continues operations due to creditors led by Osisko Gold Royalties TSX:OR and including Ressources Québec. As of November 1, Osisko became the largest shareholder, with a 35.1% stake. The royalty company also holds a 9.6% stream.

Some 2019-2020 ups and downs for mining in Quebec and Atlantic Canada

Despite Stornoway’s failure, creditors keep Quebec’s only
diamond mine in operation. (Photo: Stornoway Diamond)

Under a September LOI, the lenders agreed to take over all of Stornoway’s assets and liabilities. An initial $20-million financing should ensure Renard operations continue “in an uninterrupted manner.”

Open pit mining began in 2015, with an official opening following in 2016 and commercial production in 2017. But Renard encountered technical problems while shifting to underground operations and also faced a disappointing initial underground grade as well as the global slump in diamond markets.

Nevertheless, Osisko suggested the mine remained on target to meet the 2019 guidance set by Stornoway of 1.8 million to 2.1 million carats, with sales expectations of $80 to $105 per carat. A 2016 resource update expected prices ranging from $106 per carat for the Renard 4 pipe to $197 for Renard 2. The technical study assumed a 2.5% annual increase in diamond prices to the end of 2026.

New Brunswick

A casualty of an earlier mine closure, Glencore’s Brunswick lead-silver smelter shut down permanently by the end of 2019. “Despite years of efforts by committed employees and a strong management team, the smelter has been uneconomic since the closure of the Brunswick mine in 2013,” said company spokesperson Chris Eskdale. “We have thoroughly assessed all our options and come to the unavoidable conclusion that the smelter is simply not sustainable, regardless of the recent labour dispute.”

Termed a lockout by the United Steelworkers and a strike by management, the dispute had left 280 union members of the 420-person workforce off the job since April. The company’s November announcement of the impending shutdown also coincided with a strike at the CEZinc refinery near Montreal, which ended December 3 after 10 months. That facility is owned by Noranda Income Fund TSX:NIF.UN but operated by Glencore, which holds 25% of NIF.

Glencore’s Alexis Segal emphasized that Brunswick plant losses averaged $30 million annually for the last three years, CBC reported. Premier Blaine Higgs and labour minister Trevor Holder expressed concern but couldn’t offer reassurances, the network added.

The facility opened in 1966 to process concentrate from the Brunswick zinc-lead-silver mine, at one point the world’s largest underground zinc operation. Following the mine’s 2013 closure, the company was transforming the smelter into a custom plant.

Labrador

Some 2019-2020 ups and downs for mining in Quebec and Atlantic Canada

Blasting began last June as Tacora brought new life
to the Scully iron ore operation. (Photo: Tacora Resources)

Western Labrador’s iron industry revived in May as production resumed at the Scully mine after nearly five years. Minnesota-based Tacora Resources bought the former Wabush Iron operation through a Companies’ Creditors Arrangement Act process in 2017, conducted a new feasibility study and recruited strategic investors that include the metals branch of Cargill, which also agreed to 100% offtake for 15 years.

The restart benefits Quebec too. The Iron Ore Company of Canada’s railway, the Quebec North Shore & Labrador line, carries Scully production to a pellet plant at Pointe Noire on the St. Lawrence. Nearby Sept-Isles provides deep sea docks from where the resuscitated mine’s first shipment left for Europe in late August.

With life expectancy currently set at 15 years, the company expects the open pit to produce 6.25 million tpa. Tacora hopes to upgrade the 65.9% Fe concentrate and also pull profits from the deposit’s manganese, considered problematic by the previous operator.

“The manganese content was a hurdle and an impediment before,” Tacora CEO/chairperson Larry Lehtinen told CBC. “We’re turning that into an advantage.”

The mine previously opened in 1965. The operation shut down completely in 2015 but most staff had already lost their jobs the previous year.

This is Part 4 of a series.

Open and shut cases: Ontario

January 3rd, 2020

2019-2020 brings new technology, new gold, possible cobalt but diamond depletion

by Greg Klein

2019-2020 brings new tech, new gold and possible cobalt but diamond depletion

Pure Gold’s plan to revive this Red Lake mine has deep-pocketed supporters.
(Photo: Pure Gold Mining)

 

Our survey of mine openings and closures for 2019 and 2020 continues with a look at Ontario. This is Part 3 of a series.

 

While mining sustains the electric vehicle revolution, EVs enhance sustainability at Newmont Goldcorp’s (TSX:NGT) “mine of the future.” The company announced Borden’s commercial production on October 1, eight days after an official inauguration attended by representatives from industry, government and natives. The new operation boasts “state-of-the-art health and safety controls, digital mining technologies and processes, and low-carbon-energy vehicles.” The latter distinguish Borden as Canada’s first underground mine to spurn diesel-fueled vehicles in favour of EVs.

2019-2020 brings new tech, new gold and possible cobalt but diamond depletion

Borden’s fleet of underground EVs includes
this battery-powered bolter. (Photo: Business Wire)

Borden now begins a projected 15 years of operation, although milling takes place at the company’s Timmins-region Porcupine facility, 180 diesel-burning kilometres east.

Even so, Ottawa and Queen’s Park each contributed $5 million to subsidize the environmentally correct underground vehicles.

Borden comprises one of four mines in as many continents that Newmont Goldcorp brought to commercial production in 2019—all on schedule, within budget and, the company already claims, making a profit.

Such technical prowess might make this mechanically impractical mixed metaphor surprising, but president/CEO Tom Palmer said Borden “leverages our leading land position to anchor this new gold district in Ontario.” Anchors and levers notwithstanding, he gave up other Ontario turf by selling Red Lake to ASX-listed Evolution Mining in November. Expressing no nostalgia for an operation that was once integral to Goldcorp’s existence, the deal nonetheless contributes US$375 million to a total US$1.435 billion from three recent divestitures by Newmont Goldcorp, one of 2019’s biggest merger stories.

 

2019-2020 brings new tech, new gold and possible cobalt but diamond depletion

Test mining readies Madsen for anticipated production in late 2020.
(Photo: Pure Gold Mining)

That’s not to say the company forsakes Red Lake altogether. As one of four entities together holding over 30% of Pure Gold Mining TSXV:PGM, Newmont Goldcorp backs the camp’s next miner-to-be. Other financial support comes from Rob McEwen, the man behind Goldcorp’s Red Lake success, AngloGold Ashanti NYSE:AU and especially Eric Sprott.

Having started construction in September, Pure Gold expects to start pouring yellow metal at Madsen by late 2020.

Lowering capex while speeding construction, refurbishable infrastructure from two former mines includes a 1,275-metre shaft, 27 levels of underground workings, a mill and a tailings facility.

The property gave up about 2.6 million ounces from 1938 to 1976 and 1997 to 1999. Madsen’s feasibility calls for 12.3 years to chew through a probable reserve of 3.5 million tonnes averaging 8.97 g/t for 1.01 million gold ounces. With the deposit open in all directions, Pure Gold continues exploration in hopes of extending the lifespan.

 

Ontario’s Cobalt camp, meanwhile, was much better known for silver but left a critical mineral legacy in North America’s only permitted primary cobalt refinery. With financial backing from global top cobalt producer Glencore, First Cobalt TSXV:FCC hopes to restart the facility by Q4 2020.

That depends, however, on findings of a pre-feasibility study that might get upgraded to full-feas for an initial 12-tpd operation.

2019-2020 brings new tech, new gold and possible cobalt but diamond depletion

Depending on feasibility and financing, First Cobalt
might reintroduce cobalt refining to North America.
(Photo: First Cobalt)

Commissioned in 1996 and on care and maintenance since 2015, the refinery was permitted for 12 tpd back in 2001. A possible advantage to the study’s economics might be the current improvement in cobalt prices, largely resulting from Glencore’s November suspension of its Mutanda mine in the Democratic Republic of Congo.

The shutdown erased about 20% of worldwide cobalt production, according to Benchmark Mineral Intelligence.

Should the 12-tpd scenario work out, First Cobalt plans another feasibility study for an expansion to 55 tpd in 2021, which would place the company fourth in cobalt refining outside China.

Glencore loaned US$5 million to fund the studies and could advance up to US$40 million for rehab work, to be repaid by processing Glencore feed. “The refinery will be an important strategic asset for the North American market and we look forward to working with First Cobalt to help the asset fulfill its potential,” said Nico Paraskevas, Glencore’s head of copper-cobalt marketing.

Faintly suggesting a possible North American supply chain, First Cobalt’s portfolio includes an inferred resource at the Iron Creek cobalt-copper project in Idaho. On its Ontario property, the company drilled some 23,300 metres in 2017 and 2018 around former operations which had historically been mined for silver with cobalt-copper byproducts.

 

Turning to the James Bay region, this diamond mine’s closure might have been preventable but Victor lived up to its name in a number of ways. The shutdown, for example, could have happened nearly six years earlier. Winter road blockades in 2013 almost prevented arrival of heavy crucial supplies that couldn’t be flown in. Some of the protesters from the Attawapiskat reserve 90 kilometres east wanted to renegotiate the Impact Benefit Agreement. Others reportedly wanted their dismissals rescinded.

2019-2020 brings new tech, new gold and possible cobalt but diamond depletion

As humans replant a surrounding forest,
nature converts this 11-year mine to a northern lake.
(Photo: De Beers)

As quoted in the Timmins Daily Press, De Beers’ external and corporate affairs director Tom Ormsby warned that “Victor is a very solid, steady mine but it can’t keep taking all of these financial hits.”

Ontario Provincial Police initially refused to enforce a court order against the blockade, then finally moved in after protesters left voluntarily. Transport resumed and Victor lived out the rest of its nearly 11-year lifespan. Mining ended in early March 2019, by which time the total output of 8.1 million carats far surpassed the company’s original estimate of six million. Processing continued on stockpiled ore until late May.

But Tango, a smaller, lower-grade kimberlite seven kilometres away, might have added another five or six years of mining. Attawapiskat representatives, however, declined De Beers’ efforts to consult.

Victor’s closure leaves De Beers with just one mine outside Africa. The company holds the majority of a 51%/49% JV with Mountain Province Diamonds TSX:MPVD on Gahcho Kué in the Northwest Territories. De Beers put its NWT Snap Lake mine on extended care and maintenance in late 2015 as construction of Gahcho Kué neared completion. Efforts to sell Snap Lake proved unsuccessful.

But the global giant reiterated its interest in Canada with the 2018 purchase of Eric Friedland’s Peregrine Diamonds. That brought De Beers the Chidliak project on Baffin Island, with two of 74 kimberlites currently hosting inferred resources.

As for Victor, a $15.4-million reclamation program that began years earlier had planted its millionth tree within weeks of closure.

This is Part 3 of a four-part series.

Open and shut cases: West

December 20th, 2019

A look at the western provinces’ mine openings and closures for 2019 and 2020

by Greg Klein

A look at the western provinces’ mine openings and closures for 2019 and 2020

Western Potash began Saskatchewan’s first solution mining operation for this commodity in July.
(Photo: Western Potash)

 

This is Part 2 of a four-part series.

The Exxon Valdez of Canadian mining went into dry dock at the end of May, as Imperial Metals TSX:III put its Mount Polley copper-gold operation on care and maintenance. The company that traded above $16.50 prior to the August 2014 tailings dam failure spent most of 2019 well below $3. Now holding two suspended mines, the company’s operational portfolio has dwindled to a 30% stake in B.C.’s Red Chris copper-gold open pits. In August Imperial sold the other 70% to ASX-listed Newcrest Mining for US$775 million.

But if human error can dump eight million cubic metres of tailings muck into the waterways, human ingenuity can respond. As the five-year anniversary approached, Geoscience BC founding president/CEO and Imperial’s former chief scientific officer ’Lyn Anglin offered her perspective on the $70-million clean-up program, which continues during the mine’s suspension.

 

Maybe its status as Canada’s largest diversified miner leaves Teck Resources TSX:TECK.A/TSX:TECK.B open to greater diversity in downturns. The company blamed global economic uncertainties for “a significant negative effect on the prices for our products, particularly steelmaking coal.” But the company attributes its most recent coal mine closures not to market forces but to depletion. That was the verdict for the mid-year shutdown of B.C.’s Coal Mountain and for Alberta’s Cardinal River, scheduled to follow in mid-2020.

A look at the western provinces’ mine openings and closures for 2019 and 2020

Some depleted mines notwithstanding, Teck Resources
has over four decades of B.C. coal reserves.
(Photo: Teck Resources)

Although Teck warned employees in September of layoffs, noting a price drop from about $210 to about $130 per tonne over the previous weeks, further mine closures weren’t specified. Depletion hardly concerns Teck’s four remaining Kootenay-region coal operations. The company says there’s enough steelmaking stuff to keep Line Creek, Greenhills, Elkview and Fording River busy for 18, 28, 38 and 43 years respectively.

While the company now focuses on its Quebrada Blanca Phase 2 copper development project in Chile and its JV at the port of Vancouver’s Neptune terminal, Teck’s $20-billion proposal for Alberta might serve as an affront to the great cause of our time. In July Teck managed to get a recommendation of approval from a joint federal/provincial environmental review panel for its Frontier oilsands project. Media reports, however, suggest Environment and Climate Change Minister Jonathan Wilkinson and his cabinet might reject the panel’s recommendation.

 

Whether it brought relief or astonishment to local supporters, in July Western Potash finally began building its long-delayed Milestone potash project in southern Saskatchewan.

A look at the western provinces’ mine openings and closures for 2019 and 2020

A determined-looking Western Potash group
celebrates a milestone in Saskatchewan mining.
(Photo: Western Potash)

Expectations had risen and fallen a few too many times since at least 2015, when the company announced it had secured funds sufficient for a scaled-down capex. But in October Western began solution mining, the first application of this method for potash in Saskatchewan. The innovative operation will also be “the first potash mine in the world that will leave no salt tailings on the surface, thereby significantly reducing water consumption.”

Now a subsidiary of Western Resources TSX:WRX, the company plans “hot mining” early in the new year to pump brine containing potassium chloride into a crystallization pond at surface, leaving unwanted sodium chloride underground. By Q3 2020 a newly built plant will process the potash for an off-take agreement covering all Phase I production. Phase II calls for expanded operations to support an average 146,000 tpa output over a 12-year life.

 

Yet the mine starts up amid cutbacks and shutdowns elsewhere. The province’s big three potash producers, Nutrien TSX:NTR, Mosaic NYSE:MOS and K+S Potash Canada, all reduced output in 2019. Between them, Nutrien and Mosaic suspended four operations, at least one indefinitely.

In August workers at Mosaic’s Colonsay operation learned of an indefinite layoff, reportedly to last anywhere from six months to a matter of years. Further discouragement came in November when the United Steelworkers confirmed that the company was moving equipment from Colonsay to its Esterhazy operation, itself subject to reduced output.

A look at the western provinces’ mine openings and closures for 2019 and 2020

Saskatchewan’s tallest structure stands over a shaft reaching
more than a kilometre underground at Mosaic’s Esterhazy K3.
(Photo: Mosaic)

Esterhazy’s ambitious K3 expansion project, however, continues unfazed by current market conditions. With construction started in 2011, commissioning begun in December 2018 and full production not scheduled until 2024, the new underground operation will replace Esterhazy’s K1 and K2 mines, keeping the K1 and K2 mills busy at the world’s largest potash mining complex.

In September Nutrien announced it would “proactively” suspend its Allan, Lanigan and Vanscoy potash mines. Workers at the first two got December 29 recall notices, but Vanscoy’s resumption has yet to be revealed.

Nevertheless, company bosses expressed optimistic 2020 foresight. It will be “a strong year for crop input demand for which we are well-positioned to benefit,” predicted Nutrien president/CEO Chuck Magro. His Mosaic counterpart Joc O’Rourke expects “a very strong application season in Brazil and North America, and a better supply and demand balance in 2020.” .

 

That year or the next just might be momentous for Saskatchewan potash. BHP Group NYSE:BHP’s board of directors has until February 2021 to decide whether to complete Jansen, a $17-billion project that would challenge the province’s potash protocol.

The threat of competition might take an unexpected turn, however. As reported in the Financial Post, at least two analysts say rival companies could attack pre-emptively by boosting production to lower prices and discourage new mine development.

 

Holding top positions globally are Saskatchewan as potash-producing jurisdiction and Saskatoon-headquartered Nutrien as potash miner. The province also boasts world stature for uranium but has no new U3O8 operations expected during this survey’s time frame. Even so, industry and investors watch with interest as Denison Mines TSX:DML, NexGen Energy TSX:NXE and Fission Uranium TSX:FCU each proceed with advanced large-scale projects.

This is Part 2 of a four-part series.

Open and shut cases: North

December 18th, 2019

How do the territories’ mine openings compare with closures for 2019 and 2020?

by Greg Klein

This is Part 1 of a four-part series.

  • See Part 2, covering the western provinces.
  • See Part 3, covering Ontario.
  • See Part 4, covering Quebec and Atlantic Canada.
  •  

    One indication of the state of mining involves the vital statistics of births and deaths—the new mines that arrived and the old mines that left. To that end we survey each Canadian region for some of the major gains and losses that occurred over the past year or are expected for the next. The first of this multi-part series looks at the country’s three northern territories, with each distinct jurisdiction contributing to a study in contrasts.

    Yukon

    Yukon without mining? That might surprise people better acquainted with the territory’s past than its present. But such was the case for nearly a year, following the suspension of Minto, Yukon’s sole remaining hardrock mine up to 2018. Nevertheless operations returned to this fabled mining region in September as Victoria Gold TSXV:VIT celebrated Eagle’s debut. By late November the company reported 10,400 ounces of gold and 1,600 ounces of silver from the heap leach operation.

    How do Canada’s mine openings compare with closures in 2019 and 2020?

    Victoria Gold finished construction a month early on
    Yukon’s largest-ever gold mine. (Photo: Victoria Gold)

    Less than two weeks later the company unveiled an updated feasibility study raising the annual production target for the territory’s largest-ever gold mine from 200,000 to 220,000 gold ounces, based on a 20% increase in proven and probable reserves for the Eagle and Olive deposits. Victoria expects to reach commercial production in Q2 2020.

    By mid-October Minto came back to life under LSE-listed Pembridge Resources. Capstone Mining TSX:CS had placed the underground mine on care and maintenance in 2018, after about 11 years of continuous operation, as acquisition negotiations with Pembridge stalled. But the companies sealed the deal last June. Within weeks of restart Pembridge reported 1,734 dry metric tonnes of copper-gold-silver concentrate. Proven and probable reserves totalling 40,000 tonnes copper, 420,000 ounces silver and 45,000 ounces gold give Minto an estimated four more years of production.

    Among the most advanced Yukon projects is BMC Minerals’ Kudz Ze Kayah, a zinc deposit with copper, lead, gold and silver. The privately owned UK-based company reached feasibility in June and hopes to begin at least nine years of mining in 2021.

    Environmental/socio-economic reviews continue into Newmont Goldcorp’s (TSX:NGT) Coffee gold project and Western Copper and Gold’s (TSX:WRN) Casino polymetallic project. Should Casino make it into operation, the copper-gold-silver-molybdenum operation would be by far the territory’s largest mine.

    Read more about Yukon mining.

    Northwest Territories

    Confidence in the territorial economy fell last October when Moody’s downgraded a $550-million bond issued by Dominion Diamond. “There’s no plan in place to extend the mine life at a time when the debt is coming closer and closer to coming due,” the credit ratings agency’s Jamie Koutsoukis told CBC. “We continue to see a contraction in the time they have to develop this mine plan.”

    Part of the Washington Group, Dominion holds a majority stake in Ekati and 40% of Diavik, where Rio Tinto NYSE:RIO holds the remaining 60%. Along with De Beers’/Mountain Province Diamonds’ (TSX:MPVD) Gahcho Kué, the three diamond operations comprise the territory’s largest private sector employer.

    How do Canada’s mine openings compare with closures in 2019 and 2020?

    Agnico Eagle once again laid claim to Arctic riches with the
    Amaruq satellite deposit, over 300 kilometres west of Hudson Bay.
    (Photo: Agnico Eagle)

    In an October presentation before the territory’s newly elected legislative assembly, the NWT and Nunavut Chamber of Mines urged the government to safeguard the economy by improving investor confidence in the mining industry.

    An election year in the NWT and Canada-wide, 2019 brought optimistic talk and initial funding for the NWT’s Slave Geological Province Corridor and Nunavut’s Grays Bay Road and Port, two transportation proposals that would offer enormous potential for mineral-rich regions in both territories.

    Nunavut

    “Whispers could be heard throughout the room as intervenors turned to their colleagues. Members of the audience turned their heads, looking for Baffinland’s reaction to what was unfolding. Baffinland officials sat stone-faced, sometimes crossing their arms and looking down at the table as [Nunavut Tunngavik Inc. president Aluki] Kotierk spelled out the motion.”

    That was the scene described by the Nunatsiaq News as the Nunavut Impact Review Board abruptly suspended hearings into Baffinland Iron Mines’ $900-million Phase II expansion plans for Mary River. The proposals, already accepted by Ottawa, include building a railway to replace a 100-kilometre road north to the company’s Milne Inlet port and doubling annual production to 12 million tonnes iron ore. The new railway proposal comes in addition to a previously approved but un-built 150-kilometre southern rail link to a harbour that had been planned for Steensby Inlet.

    The company maintains that expanded production and a northern rail line will be crucial to the existing operation’s viability. Responses at public hearings ranged from support to skepticism and outright opposition. Within weeks of the hearings’ suspension and a month ahead of a scheduled layoff, Baffinland let go 586 contractors who had been working on expansion preparations.

    How do Canada’s mine openings compare with closures in 2019 and 2020?

    About 290 kilometres southeast of Meadowbank, Agnico
    Eagle celebrated Meliadine’s first gold pour in February.
    (Photo: Agnico Eagle)

    Despite all that, operations continue at Mary River and Nunavut remains a bright spot in Canadian mining.

    That’s largely due to Agnico Eagle TSX:AEM, which brought two new operations to the territory. Meliadine began commercial production months ahead of schedule in mid-May, followed by Amaruq in late September.

    As a satellite deposit, Amaruq brings new life to the Meadowbank mine and mill complex 50 kilometres southeast. With the latter mine wrapping up its ninth and last year of operation, Amaruq’s open pit offers an estimated 2.5 million ounces up to 2025. Should hoped-for permitting come through in late 2020, a Phase II expansion could broaden the lifespan. Meanwhile drilling seeks to upgrade the project’s underground resource.

    Meliadine began with underground production but has an open pit scheduled to come online by 2023. Combined open pit and underground reserves of 3.75 million gold ounces give the operation a 14-year life.

    TMAC Resources’ (TSX:TMR) expansion plans moved forward in October as construction began on an underground portal to Madrid North, a fully permitted deposit that could enter production by late 2020. The new operation’s probable reserves of 2.17 million gold ounces far overshadow the company’s other three Hope Bay deposits, which total 3.59 million ounces proven and probable.

    By comparison, the current Doris operation hosts 479,000 ounces proven and probable. Hope Bay has updated resource/reserve and prefeas studies scheduled for Q1 2020.

    This is Part 1 of a four-part series.

  • See Part 2, covering the western provinces.
  • See Part 3, covering Ontario.
  • See Part 4, covering Quebec and Atlantic Canada.
  • Gaia Metals applies new geophysical analysis to Quebec polymetallic project

    December 11th, 2019

    by Greg Klein | December 11, 2019

    This type of geophysical survey hasn’t changed much in two decades, but the technology of evaluation has. With that in mind, Gaia Metals TSXV:GMC (formerly 92 Resources) plans an up-to-date re-analysis of existing IP-resistivity data from its Corvette-FCI property. The process should offer a cost-effective method of gaining new insight into the project.

    Gaia Metals applies new geophysical analysis to Quebec polymetallic project

    Gaia Metals’ Corvette-FCI project has already shown
    impressive sample results for gold, copper and lithium.

    The James Bay-region property has so far yielded high-grade samples of gold, copper-gold-silver and lithium-tantalum. Now the company plans to apply new technology to data collected up to 2000.

    IP-resistivity surveys have proven “well-suited to detect near-surface disseminated sulphide mineralization (IP anomalies), as well as areas of alteration and/or silicification (resistivity anomalies),” Gaia stated. “This geophysical tool is commonly used in greenstone-hosted gold and base metal exploration and is often effective at qualifying drill targets initially developed from surface mapping and sampling. With the mineralization styles identified at Corvette-FCI, coupled with the thin overburden cover in the area, IP-resistivity offers an efficient sub-surface scan at good resolution and reasonable cost.”

    The original survey covered two grids: Golden Gap (now known as FCI West) and Island Lake (FCI East), which includes the Lac Bruno boulder field. IP targets from the original evaluation have yet to be drilled, “further highlighting the value in modern re-processing to prioritize the targets,” Gaia added.

    The company expects to conduct new surveying along the property’s Maven trend, extending east across the Lac Smokycat-SO, Lorraine and Elsass showings, where historic sampling brought impressive copper-gold-silver grades. Expected for completion next spring, the survey will precede ground mapping and sampling scheduled for June and July.

    Emphasizing the project’s polymetallic promise were surface samples released in September from last summer’s field program. Lithium grades from six newly found pegmatites reached up to 4.72% Li2O, while tantalum numbers included 564 ppm Ta2O5. Gold samples included a Lac Bruno boulder assay as high as 11.9 g/t. A Lorraine outcrop featured 8.15% copper, 1.33 g/t gold and 171 g/t silver.

    The project consists of Gaia’s 100%-held Corvette claims and a 75% earn-in from Osisko Mining TSX:OSK spinout O3 Mining TSXV:OIII on the FCI-East and FCI-West blocks.

    Among other assets, Gaia’s portfolio includes the Pontax lithium-gold property in Quebec, the Golden silica property in British Columbia and a 40% stake in the Northwest Territories’ Hidden Lake lithium property.

    Last week the company closed a private placement of $412,199.

    Geoscience BC seeks to put “hidden” copper-gold resources into the public domain

    December 6th, 2019

    by Greg Klein | December 6, 2019

    Additional base and precious metals could be waiting for discovery in a region already hosting some of British Columbia’s largest mines. A new program by Geoscience BC plans a number of measures to search for potential deposits hidden beneath glacial till.

    Under scrutiny will be a 50,700-kilometre swath of Quesnel terrane between Centerra Gold’s (TSX:CG) Mount Milligan gold-copper mine to the northwest and, to the southeast, Taseko Mines’ (TSX:TKO) 75%-held Gibraltar copper-molybdenum operation and Imperial Metals’ (TSX:III) Mount Polley project, now on care and maintenance. Backed by $2.9 million in funding, the Central Interior Copper-Gold Research project begins with two programs. One will analyze new and existing till samples with satellite imagery to trace samples and geochemical anomalies to their source. Another program will use existing geophysical data to identify, map and model potential copper-gold deposits.

    Geoscience BC seeks to put “hidden” copper-gold resources into public domain

    Receding glaciers may have helped hide valuable resources.
    (Photo: Geoscience BC)

    Results are scheduled for 2021, when drilling is anticipated and additional related projects may take place. Data will be made public for the benefit of communities, governments and academia, as well as the mining sector.

    Consequently, support for the program came from communities as well as industry. At a December 5 open house North Central Local Government Association president Lara Beckett said, “The communities of the NCLGA benefit from the valuable public data on water, energy and minerals that these initiatives provide. NCLGA members have passed resolutions in support of the work of Geoscience BC and look forward to working together on future opportunities to strengthen communities throughout north-central British Columbia.”

    Association for Mineral Exploration president/CEO Kendra Johnston called the work “important to AME members because the data and information that they provide inspire new mineral exploration and attract new investment to British Columbia. We look forward to seeing the results from the first two projects, and to learning more about future phases.”

    Other recently announced Geoscience BC programs include Porphyry Vectoring Techniques in Advanced Argillic Altered Rocks, a study of three known porphyry copper-gold deposits in the province’s northwest and north-central regions.

    Earlier last month Geoscience BC published a report on mineral deposit types in the Toodoggone area of B.C.’s north-central region. Among several other projects, the non-profit group is also studying methods of extracting rare earth elements from B.C. coal deposits.

    Learn more about the Central Interior Copper-Gold Research project.

    Potosí’s legacy

    December 5th, 2019

    A renowned but notorious mountain of silver looms over Bolivia’s turmoil

    by Greg Klein

    Far overshadowed by the political violence plaguing Bolivia over the last several weeks was a slightly earlier series of protests in the country’s Potosí department. Arguing that a proposed lithium project offered insufficient local benefits, residents convinced then-president Evo Morales to cancel a partnership between the state-owned mining firm and a German company that intended to open up the country’s vast but unmined lithium resources.

    A renowned but notorious mountain of silver looms over Bolivia’s turmoil

    In the heart of the Andes, 4,000 metres above sea level,
    the city of Potosí sits beneath the infamous Cerro Rico.
    (Photo: Shutterstock.com)

    Other events overtook the dispute, sending Morales into exile and the country towards an uncertain future that could bring elections, military coup or civil war. Yet Potosí serves as a stark example of Bolivia’s plight: a mineral-rich land that’s one of South America’s poorest countries. That’s one of the contradictions related in Kris Lane’s recent book Potosí: The Silver City that Changed the World.

    Unlike so many other New World mineral rushes, the 1545 discovery held enduring global importance. More typically, and probably more dramatically, it was “rife with paradox from the start, a site of human depravity and ingenuity, oppression and opportunity, piety and profligacy, race mixture and ethnic retrenchment,” Lane recounts. “The list could go on.”

    Looming over a boom town both squalid and magnificent was the great mountain of silver, Cerro Rico. For their first century of operation its mines and mills churned out nearly half the world’s silver, and then about 20% up to 1825.

    The red mountain of Potosí is still producing silver, tin, zinc, lead, and other metals, and it never seems to have stopped doing so despite many cycles since its discovery in 1545. Current estimates range from 30,000 to 60,000 tons of silver produced to date, and geologists estimate that the Cerro Rico, easily the world’s richest silver deposit, contains an equivalent amount dispersed in low-grade, refractory ores that would require sophisticated processing.

    A renowned but notorious mountain of silver looms over Bolivia’s turmoil

    This huge supply came online just as Europe was suffering a “bullion famine,” Lane writes. More than gold, silver served as the world’s exchange medium. Globalization can be dated to 1571, when Spain launched trans-Pacific trade and Chinese demand for silver “reset the clock of the world’s commercial economy just as Potosí was hitting its stride.”

    Yet Spain served as little more than a transfer point for its share. With longstanding armed conflicts on a number of fronts, “the king’s fifth went to fund wars, which is to say it went to pay interest on debts to Charles V’s and Philip II’s foreign creditors in southern Germany, northern Italy, and Flanders.”

    As for the rest, “once taxed, most private silver went to rich merchants who had advanced funds to Potosí’s mine owners. They then settled their accounts with distant factors, moving massive mule-loads and shiploads of silver across mountains, plains, and oceans. Global commerce was the wholesale merchants’ forte, and most such merchants were junior factors linked to larger wholesalers in Lima, Seville, Lisbon, and elsewhere. Some had ties to Mexico City and later to Manila, Macao, and Goa; still others were tied to major European trading hubs such as Antwerp, Genoa, and Lyons.”

    But wealth wasn’t unknown near the source. Known for its “opulence and decadence, its piety and violence,” the boom town “was one of the most populous urban conglomerations on the planet, possibly the first great factory town of the modern world…. By the time its population topped 120,000 in the early seventeenth century, the Imperial Villa of Potosí had become a global phenomenon.”

    It was also a “violent, vice-ridden, and otherwise criminally prolific” contender for the world’s most notorious Sin City.

    By comparison the much-later Anglo-Saxon boom towns seem small time, only partly for their ephemeral nature. But the men (and later women) who moiled for Potosí silver weren’t the adventurous free spirits of gold rush legend. Slaves and, to a greater extent, conscripted Andean natives endured the inhumane conditions “perhaps exceeded only by work in the mercury mines of Huancavelica, located at a similarly punishing altitude in Peru.”

    Native Andeans and Europeans began a long process of negotiation and struggle that would last beyond the end of the colonial era. Potosí’s mineral treasure served as a fulcrum.

    At the same time some natives, like some foreigners, achieved affluence as merchants, contractors or traders in bootleg ore boosted by the conscripts. Andean innovation helped keep the mines going, for example by smelting with indigenous wind furnaces after European technology failed, and using a native method of cupellation.

    “Put another way, native Andeans and Europeans began a long process of negotiation and struggle that would last beyond the end of the colonial era. Potosí’s mineral treasure served as a fulcrum.”

    A “noisy, crushing, twenty-four-hour polluting killer, a monster that ate men and poisoned women and children” needed some rationale for its existence. Spain’s excuse was the money-burning responsibility of defending the faith. Still “the steady beat of Potosí’s mills and the clink of its newly minted coins hammered away at the Spanish conscience. Priests, headmen, and villagers, even some local elites denounced the mita [forced native labour] as immoral. As one priest put it, even if the king’s demand for treasure was righteous, [the] Potosí and Huancavelica mitas were effectively killing New World converts in the name of financing the struggle against Old World heresy. God’s imagination could not possibly be so limited.”

    More practical matters stained the empire’s reputation too, as the 1649 Potosí mint debasement scandal unfolded. World markets recoiled and Spain’s war efforts suffered as money lenders and suppliers refused the once-prized Spanish coins. “Indeed, the great mint fraud showed that when Potosí sneezed, the world caught a cold.”

    A renowned but notorious mountain of silver looms over Bolivia’s turmoil

    Potosí miners, seen here in 2017, work at
    surface with Cerro Rico in the background.
    (Photo: SL-Photography/Shutterstock.com)

    With the 1825 arrival of Simón Bolívar, “the Liberator symbolically proclaimed South American freedom from atop the Cerro Rico. Yet British investors were close on his heels.”

    Foreign owners brought new investment and infrastructure. But “the turn from silver to tin starting in the 1890s revolutionized Bolivian mining and also made revolutionaries of many miners. The fiercely militant political sensibility of the Potosí miner so evident today was largely forged in the struggles of the first half of the twentieth century.”

    Those clashes bring to mind events of recent weeks, in which dozens have been killed by police and military.

    Lane’s narrative continues to Morales’ “seeming ambivalence” toward miners and Potosí’s transformation into a “thriving metropolis” that hopes tourism will offset mineral depletion. Meanwhile underpaid, often under-age, miners continue to toil in woefully unhealthy conditions.

    The breadth of Lane’s work is tremendous. He covers Potosí’s history from global, colonial, economic and social perspectives, outlines different practices of mining and metallurgy, recites contemporary accounts and provides quick character studies of the people involved. All that gives the book wide-ranging Christmas gift potential. It also offers considerable context as the geologically bountiful country once again experiences troubled times.

    International Montoro Resources finds greater massive sulphide potential at Elliot Lake, Ontario

    December 3rd, 2019

    by Greg Klein | December 3, 2019

    After adding results from a ZTEM MVI inversion magnetic survey, estimates of the Pecors anomaly double in size.

     

    The Serpent River property shows enhanced prospects for nickel, copper, gold, platinum and palladium, according to a recent compilation and analysis of geophysical data. International Montoro Resources TSXV:IMT reported two likely massive sulphide targets over the project’s Pecors anomaly. Now measured to about 5.7 kilometres by 4.2 kilometres by 2.2 kilometres, the anomaly extends to twice the size of a previous estimate.

    International Montoro Resources finds greater massive sulphide potential at Elliot Lake, Ontario

    A 2015 drill program tested the property’s magnetic anomaly.

    The findings come from Mira Geoscience, considered a pioneer of advanced geological and geophysical modelling. The firm analyzed data using its Geoscience Analyst 3D visualization and exploration platform.

    Following a 2007 VTEM survey, Montoro sunk two holes totalling 2,322 metres in 2015. One hole intersected a magnetic anomaly’s source, a gabbro body with minor sulphides showing nickel, copper and PGE values near the base. The other hole also intersected the gabbro, finding low-grade gold, platinum, palladium, copper and nickel values, the company stated.

    “In essence we are exploring for a massive sulphide nickel-copper-PGE-gold deposit,” said president/CEO Gary Musil.

    Last October the company announced a 51% earn-in on the 2,250-hectare Camping Lake property in Ontario’s Red Lake district. In British Columbia’s Cariboo region, Montoro completed rock and soil sampling last July on its 2,138-hectare property bordering Defense Metals’ TSXV:DEFN Wicheeda rare earths project.

    Montoro’s portfolio also includes two northern Saskatchewan uranium properties held 50/50 with Belmont Resources TSXV:BEA.