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Posts tagged ‘Gold-Ore Resources Ltd (GOZ)’

Gold-Ore reports Sweden Gold Assays including 39.15 g/t over 3.9m

April 12th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningGold-Ore Resources Ltd TSX:GOZ announced assays from its Bjorkdal Gold Mine in Sweden. Results include

39.15 g/t gold over 3.9 metres
5.6 g/t over 4 metres
6.93 g/t over 4.9 metres
9.08 g/t over 3 metres
7.08 g/t over 3 metres
6.6 g/t over 3 metres
72.49 g/t over 4 metres (including 277 g/t over 1 metre)
23.99 g/t over 6 metres (including 127.5 g/t over 1 metre)
27.59 g/t over 4 metres
12.82 g/t over 2.5 metres
14.37 g/t over 4 metres
9.55 g/t over 4 metres
13.78 g/t over 3.9 metres
7.78 g/t over 4 metres
16.6 g/t over 4 metres

President Bob Wasylyshyn said, “Late last year, we dedicated one underground drill rig to test beyond the northern end of known mineralization. Since that time, 14 holes totalling 2,990 metres were completed and all holes intersected multiple quartz veins with economic gold grades over mineable widths. This entirely new area has the potential to add several years to the underground mine life.”

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Contact:
Gold-Ore Resources Ltd
604.687.8884

by Ted Niles

Northern Persistence

March 12th, 2012

Challenges Notwithstanding, Nunavut Explorers Persevere

By Greg Klein

See Part I of this story.

Nunavut’s mining future might have seemed grim indeed when Agnico-Eagle TSX:AEM applied a $644.9-million write-down to Meadowbank, the territory’s sole operating mine. Newmont’s TSX:NMC $1.61-billion write-down of its Hope Bay Gold Project would seem to validate pessimism. Yet Nunavut mining has flourished in the past, and rising commodity prices have brought renewed interest in past-producing operations. Meanwhile, a new strategic alliance offers hope for largely unexplored lands.

Undeterred by its Meadowbank disappointment, Agnico is pushing its Meliadine Gold Project towards 2017 production. But if Elgin Mining TSXV:ELG keeps to its timeline, it will re-open the Lupin Gold Mine by Spring 2014. Located 400 kilometres north of Yellowknife, the mine was shut down by Kinross TSX:K in 2005 after producing 3.34 million ounces. Production, however, was sporadic. The mine was opened October 1982, shut down January 1998, re-opened April 2000, shut down again August 2003, re-opened March 2004 and shut down yet again in February 2005.

Challenges Notwithstanding, Nunavut Explorers Persevere

Despite its high grade, Lupin’s resource estimate isn’t huge. The June 2011 43-101 shows 720,000 tonnes grading 11.7 grams per tonne for 271,000 gold ounces indicated and 410,000 tonnes grading 10.73 g/t for 141,000 ounces inferred.

The company maintains, however, that existing infrastructure means the mine “does not require a multimillion-ounce deposit to justify a production decision,” putting the project in a “unique position” compared to other Northern projects.

Results from Lupin’s WZSOS Zone released March 6 include

  • 5.89 g/t gold over 8.9 metres
  • 9.56 g/t over 5.3 metres
  • 9.5 g/t over 4.4 metres

Along with Lupin, Elgin picked up the Ulu Gold Project 155 kilometres further north. Another high-grade project, Ulu’s June 2011 resource estimate shows 751,000 tonnes grading 11.37 g/t for 275,200 gold ounces indicated and 418,000 tonnes grading 10.61 g/t for 142,900 ounces inferred, using a 2.5 g/t cutoff. The deposit remains open below the 360-metre level, and drilling is scheduled to resume this month.

Next month Elgin shareholders vote on a proposed merger with Gold-Ore Resources TSX:GOZ, which owns the Bjorkdal Gold Mine in northeast Sweden. Among the merger’s proposed advantages, Elgin states the Bjorkdal team “has Arctic underground and open-pit mining operating experience that will benefit the combined company.”

New to the neighbourhood is HTX Minerals, a privately held project generator that last week announced a strategic alliance with Nunavut Resources Corp, described as Canada’s first Inuit-owned mining development company. HTX already holds a three-year, $3.9-million strategic alliance with Implats, the giant platinum producer, to explore northern Ontario. Under the five-year NRC agreement, the Inuit company is expected to raise at least $18 million to fund exploration.

The alliance hopes to create joint ventures to develop projects which then might be optioned to a third party or sold to a new corporation. The agreement covers the Kitikmeot region of western Nunavut. Kitikmeot consists of 450,000 square kilometres populated by about 5,400 people, 88% of whom are Inuit. The region includes Hope Bay, subject of last month’s write-down.

The NRC was founded by the Kitikmeot Inuit Association which, according to some sources, played a role in the demise of Hope Bay. The February 16 edition of the Nunatsiaq News reports that Kitikmeot Corp, the KIA business arm, received at least $60 million a year from the Hope Bay Project for the last four years.

According to the report, “KIA President Charlie Evalik says money was not a sticking point, but, according to a person who was not authorized to speak publicly and who spoke on condition of anonymity, the KIA may have asked for too much before the mine had even reached production.” Evalik is also Chairman of the NRC.

The newspaper added, “‘KIA played a role in a complex decision,’ is all [Chris Hanks, VP of Newmont's Hope Bay Mining subsidiary] had to say about that issue.”

Evalik was travelling, and another NRC spokesman didn’t respond to a ResourceClips.com interview request by press time.

The HTX-NRC alliance will explore three separately defined land packages: federally owned Crown lands, Inuit Owned Lands and Article 41 lands. The last are actually in the Northwest Territories but were granted to the KIA as part of the boundary negotiations leading to Nunavut’s creation in 1999.

We’re going to see more and more infrastructure, and a lot of these resources will become more and more accessible —Scott McLean

Speaking from Sudbury, HTX President/CEO Scott McLean says, “The alliance helps accelerate the path to discovery. It gives us a social licence because we’re working directly with the people of the region. We’ll be mentoring and training the Inuit so they can become self-sufficient with respect to mineral exploration. We’ll have access to funds without diluting our shareholders’ equity.”

He points out, “It’s a multi-commodity alliance, although if you try to focus on everything everywhere you probably won’t be too successful. But there are some obvious targets that jump off the page—gold targets, nickel-copper targets, VMS targets and diamond targets. However our main drive, at least in the first year, will be in the gold space and the nickel-copper space.”

A number of former mines dot the region, including the Ekati and Diavik diamond mines just south of the Article 41 lands and Lupin to the north. “There’s no reason why we wouldn’t consider taking on a past-producer, particularly if it offered some upside beyond what was done before,” McLean adds.

But even with climate, isolation and lack of infrastructure already ganging up on Northern enterprise, the Fraser Institute’s most recent Survey of Mining Companies found another problem—corruption. The institute pins Nunavut with the third-highest level of graft among high-income jurisdictions. The NWT comes in fourth. Eight percent of respondents said they would not invest in Nunavut for that reason. The survey is based on industry polls and doesn’t provide details or examples.

McLean says he hadn’t heard of concerns about corruption. Newmont’s Hope Bay write-down, on the other hand, “was a concern for everybody working up there. That came out towards the end of our negotiations [with the NRC]. However, this is an area that’s going to be opening up over the next few decades. We’re going to see more and more infrastructure, and a lot of these resources will become more and more accessible. It’s not something that discourages us; it just heightens our awareness of the challenges of working in that area.”

Chief among them, he says, is “the high cost associated with any exploration or development. We’ll wait and see how environmental change progresses and see how all these challenges present themselves as we go forward.”

Other companies working in Nunavut include Advanced Explorations Inc TSXV:AXI, ArcelorMittal, Diamonds North Resources Ltd TSXV:DDN, Minmetals Resources Ltd, Peregrine Diamonds Ltd TSX:PGD, Sabina Gold & Silver Corp TSX:SBB, Shear Diamonds Ltd TSXV:SRM and Xstrata.

Elgin, Gold-Ore announce Merger

February 3rd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningElgin Mining Inc TSXV:ELG and Gold-Ore Resources Ltd TSX:GOZ announced Elgin’s intention to acquire Gold-Ore. Under the agreement, Gold-Ore shareholders will receive one Elgin common share and one-half of one Elgin common share purchase warrant at a strike price of $1.30 per Elgin share with a two-year term. The transaction values Gold-Ore at $1.22 per common share, a premium of 66.5% based on the volume-weighted average prices of both companies for the 10 trading days ending January 31, 2012. Management of both companies support the transaction unanimously.

The combined company will have approximately $35 million in cash, the Bjorkdal Gold Mine in Sweden, which produced a cash flow of $12.1 million in 2011, as well as the past-producing Lupin Gold Mine and the Ulu Gold Project in Nunavut.

The transaction terminates an arrangement announced December 19, 2011, in which Gold-Ore was to acquire Astur Gold Corp TSXV:AST. Gold-Ore will pay Astur a break fee of $2.5 million.

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Contact:
Elgin Mining Inc
Patrick Downey
President/CEO
604.682.3366

Gold-Ore Resources Ltd
Glen Dickson
Chairman/CEO
604.687.8884

by Greg Klein

Astur Gold, Gold-Ore announce Merger

December 19th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningGold-Ore Resources Ltd TSX:GOZ and Astur Gold Corp TSXV:AST announced a plan of arrangement in which Gold-Ore will acquire all Astur shares to form a combined company to be called Astur Gold Corp. Under the agreement, each Astur shareholder will receive 2.35 common shares of Gold-Ore for each common share of Astur and the combined company will implement a 3-for-1 rollback of its issued and outstanding shares.

The transaction will be subject to at least 66.66% approval vote by Astur shareholders and 50% plus one vote by Gold-Ore shareholders, execution of the definitive agreement, approval of the TSX and TSXV and other customary closing conditions. The new company will have a portfolio of production and near-term production assets in Sweden and Spain.

Gold-Ore Chairman/CEO Glen Dickson remarked, “The merger with Astur Gold provides Gold-Ore shareholders the opportunity to participate in the near-term development of western Europe’s most promising gold deposit. Astur Gold shareholders will benefit from Gold-Ore’s cash and cash-flow to fund the Salave Deposit through feasibility and into initial development with no further dilution. We are certain that shareholders of both companies will truly benefit from the merger.”

Astur CEO/Director Cary Pinkowski stated, “The combination of Astur Gold and Gold-Ore is truly a complementary transaction bringing together a strong platform of technical, operational and financial management. Our new company will have a first-mover advantage on consolidating the European gold space and presents a strong growth profile focused on enhancing shareholder value with the singular objective of becoming a major European gold producer.”

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Contact:
Gold-Ore Resources Ltd
Glen Dickson
Chairman/CEO
604.687.8884

Astur Gold Corp
Cary Pinkowski
CEO/Director
604.694.1600

Read feature story on Astur Gold Corp.

by Greg Klein

Gold-Ore CEO Glen Dickson on Sweden gold assays of 77.95 g/t over 5.9m

May 30th, 2011

“The Bjorkdal gold mine was discovered in 1985 as a result of geochemical sampling and was put into production in 1988. It ran quite well until the price of gold collapsed in 1998-99. Then it went into receivership. After a year, the plant started operating, processing low-grade stockpile material. As the price of gold went up, this material became valuable. We looked at it in 2005, and it was pretty much a salvage operation at that point. But we felt that the ore body could be extended underground. So we signed an option to purchase the project in 2006. Then we undertook about $6.5 million to $7 million in investment to follow the ore body underground, develop resources and reserves. At the same time, the price of gold kept going up so that we found that we had residual resources and reserves in the open pit. So currently it’s mined from underground and from open pit at the rate of about 3,200 to 3,400 tonnes per day.

“The main lessons of this press release, are the so-called off-section holes which reach out into the hinterland—for lack of a better term—where we had spotty intersections previously. We’re not really deep, but we’re still about 200 to 300 metres below surface. We refer to these holes as off-section because they cut the ore zones at an oblique angle. We discovered that the mineralized system—which is a sheeted vein complex within a granodiorite—continues out well beyond where our resources/reserves are from the underground. What that does is it gives us the added confidence that we have a long mine life there. So, if we want, for example, to start purchasing more of our own equipment and developing that part of our business, we know that there’s going to be a long mine life at the current gold price.

“It’s ongoing drilling in the mine site. We continually develop resource drilling. It’s kind of a mine-a-tonne, find-a-tonne operation. So, we’ll continually drill underground. And there’s an area in the open pit that, historically, was left untouched because there was some waste rock on top of it. We’re currently drilling under that waste rock to see if we can justify removing that limestone cap. Then we’ll process that. So we’re drilling in the pit as well.

“As soon as you get into production you realize that you’re always trying to reduce costs and increase production. So what we’re targeting is incrementally increasing production at Bjorkdal and incrementally decreasing costs. We are suffering a little bit because we’re working in the Swedish krona—which is all our operating costs—and it’s been very strong against the US dollar. But production-wise, I believe that Bjorkdal has a long future ahead, and we’ll incrementally increase production as we move forward.”

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