Wednesday 26th October 2016

Resource Clips

Posts tagged ‘GTA Resources and Mining Inc (GTA)’

GTA sells Ivanhoe property to focus on Northshore gold

April 29th, 2016

by Greg Klein | April 29, 2016

An option on the Ivanhoe gold project passes from GTA Resources and Mining TSXV:GTA to Probe Metals TSXV:PRB, allowing GTA to concentrate on its Northshore flagship. Announced April 29, the deal costs Probe $234,000 and 350,000 shares, out of which GTA gets $134,000, 200,000 shares and a 1% NSR. GTA will issue 200,000 shares to the northern Ontario property’s original vendors. The acquisition increases Probe’s West Porcupine project by about 130 square kilometres, to total over 180 square kilometres.

GTA sells Ivanhoe property to focus on Northshore gold

That leaves GTA with a stronger focus on its Northshore gold property in the Hemlo greenstone belt, where the company has additional drilling planned. GTA holds a 51% interest in Northshore and acts as operator in a JV with Balmoral Resources TSX:BAR. GTA has been examining the potential for low-cost mining on a near-surface, high-grade area of the project’s Afric zone.

The Ivanhoe sale “allows GTA to recover much of its expenditures over the last two years while maintaining an upside by receiving shares of Probe, and by retaining an NSR on any future production,” commented president/CEO Wayne Reid. “The company can now concentrate its immediate efforts on evaluating the economics of the open pit potential of the Afric zone. We believe capital requirements would be minimal if contract mining, hauling and milling can be utilized.”

GTA also holds the Auden graphite project in central Ontario and the Burnt Pond copper-zinc project in Newfoundland.

Read more about GTA Resources and Mining.

Back on the autobahn

November 2nd, 2015

Twelve Zimtu Capital companies bring their exploration opportunities to Europe

by Greg Klein

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Overseas investors once again get to meet Canadian juniors in person, as prospect generator Zimtu Capital TSXV:ZC and 11 of its holdings visit four European cities from November 5 to 11. Now in the event’s fifth year, company reps will hold conferences in Munich, Geneva, Zurich and Frankfurt to largely institutional audiences, demonstrating the wide-ranging interest in exploration opportunities.

“Essentially it’s a commitment by Zimtu and all the participating companies to keep the European investor informed about what the companies are doing, to meet the management and form a relationship with the guys who are going to be making the decisions, effectively spending their money,” says Zimtu president Dave Hodge.

Twelve Zimtu Capital companies bring their exploration opportunities to Europe

The Zimtu bus arrives as crowds enter
Munich’s Edelmetallmesse in 2014.

“Many of the investors who are still interested in the sector had made great money in the past and experienced tremendous upside in some stocks. Certainly the Canadian junior market is very unique globally and provides that opportunity for the European investor to speculate on discovery.”

Describing himself as a “grizzled veteran of the Zimtu bus,” Chris Berry acts as MC, moderator and keynote speaker. The president of House Mountain Partners and co-editor of the Disruptive Discoveries Journal says, “I like to go back and get a sense of what institutional investors in those cities are thinking about, not just about commodity markets but central bank policies and the macro economy.”

His talk will briefly review the perspectives he offered last year then “challenge the audience” with four questions to consider in 2016. “It’s really more of a discussion than a lecture and I hope there’s a lot of pushback and debate. That gets people thinking and hopefully planning for better times next year.”

While the downturn’s all too obvious, several Zimtu holdings have made impressive strides over the last year. Some of the more remarkable stories include the creation of ALX Uranium TSXV:AL after Lakeland Resources and Alpha Exploration won overwhelming shareholder approval to combine their companies. The result is a distinguished team overseeing one of the Athabasca Basin’s largest and most prospective portfolios.

Competing for flagship status are a number of drill-ready projects including Kelic Lake, where a rig’s currently at work. Gibbon’s Creek has a ground gravity survey underway to follow up on last winter’s 2,550-metre program on a property hosting some of the Basin’s highest radon levels. The company’s Carter Lake and Hook Lake properties feature around 15 kilometres of untested corridors on strike with the Patterson Lake South, Arrow and Spitfire discoveries. Other drill-ready projects include Newnham Lake and Lazy Edward Bay, a 60% stake in the Carpenter Lake joint venture and an 80% share of the Gorilla JV.

Well financed for additional campaigns, the ALX team has been poring over property data to further establish priorities.

Twelve Zimtu Capital companies bring their exploration opportunities to Europe

Commerce Resources addresses last year’s Munich conference.

Focusing on a rare earths project with relatively simple mineralogy, Commerce Resources TSXV:CCE continues to make progress with drilling, metallurgy and community engagement as its Ashram deposit in northern Quebec moves towards pre-feasibility. Last month the company increased rare earth elements recovery from 71% to 76% at a high grade of 42% total rare earth oxides, while also simplifying the plant’s flowsheet. The most impressive concentrates so far have graded 48.9% TREO at 63% recovery and 45.7% TREO at 71% recovery.

Following high-grade, near surface assays from the winter/spring drill program, Commerce has a summer/fall campaign targeting around 32 holes for 3,000 metres. A new infrastructure model indicates cost-cutting potential. The company’s commitment to social responsibility won an award from l’Association de l’exploration minière du Québec.

In British Columbia, Commerce’s Blue River tantalum-niobium project achieved its preliminary economic assessment in 2011.

Recognizing that the great nickel deposits of Sudbury, Norilsk, Thompson and Raglan occur in clusters, Equitas Resources TSXV:EQT acquired the recently assembled Garland project in Labrador, 30 kilometres from Voisey’s Bay. Then, for the first time, Equitas subjected Garland to modern geophysics. Now a drill program under the supervision of Voisey’s veteran Everett Makela has 12 VTEM anomalies targeted.

With over $3.8 million raised since September, the company continues drilling while awaiting initial assays.

Inspired by China’s allure for the beauty and practical qualities of B.C. jade, Electra Stone TSXV:ELT intends to create a vertically integrated nephrite jade mining, trading and marketing platform. The company began by acquiring properties as well as expertise, and has so far confirmed jade at two of six projects before winter conditions ended exploration.

Eager to make contact with potential buyers, Electra bought and shipped an 18-tonne cargo of jade to Shanghai in September and is now preparing a second shipment. The company also produces chalky geyserite, or aluminum silica, from a Vancouver Island quarry. The product’s U.S. customer collaborated with Electra on a drill program last summer to study the project’s expansion potential.

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GTA Resources and Mining president/CEO Wayne Reid stakes additional ground for the Burnt Pond property, eight kilometres on strike from Newfoundland’s Duck Pond mine

September 9th, 2015

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Staking expands GTA Resources’ Burnt Pond zinc-copper project in Newfoundland

August 20th, 2015

by Greg Klein | August 20, 2015

Newly acquired turf helps Ontario gold explorer GTA Resources and Mining TSXV:GTA diversify into Newfoundland zinc and copper “in a proven producing belt with excellent infrastructure and a mining-friendly jurisdiction,” the company announced August 19. GTA staked 26 claim units for its Burnt Pond property, now totalling 136 claim units or 3,400 hectares.

Located eight kilometres on strike from Teck Resources’ (TSX:TCK.A and TCK.B) Duck Pond mine, Burnt Pond is “underlain by the same geological package of altered felsic volcanic rocks,” the company added. The new ground features what third parties have interpreted as a 500-metre-long zinc- and lead-rich stringer sulphide zone.

The zinc market appears ready for a strong rebound in both demand and pricing and this represents an opportunistic low-cost entry into this market, with no option commitments or future royalties payable.—Wayne Reid, president/CEO
of GTA Resources and Mining

2001 drilling featured a best result of 0.79% copper, 24% lead, 25.8% zinc, 791.1 grams per tonne silver and 1.6 g/t gold over 0.37 metres at a vertical depth of 405 metres, GTA stated. With limited historic drilling, extensive geophysical and geochemical surveys show untested electromagnetic targets coinciding with anomalous base metals in rock and soils.

“The existing targets can be easily advanced to a drill stage with the use of more modern technology,” said GTA president/CEO Wayne Reid. “The zinc market appears ready for a strong rebound in both demand and pricing and this represents an opportunistic low-cost entry into this market, with no option commitments or future royalties payable.”

After compiling previous work, plans call for gravity and EM surveys with drilling anticipated late this year.

Last month GTA reported gold samples up to 1.13 g/t from its Ivanhoe project west of Timmins. The company’s flagship is its Northshore project on the Hemlo-Schreiber Greenstone Belt. Having earned a 51% interest in the joint venture with Balmoral Resources TSX:BAR, GTA is considering the project’s potential for a small-scale contract mining operation.

Read more about GTA Resources and Mining.

GTA Resources and Mining CEO Wayne Reid examines a potential small-scale, high-grade open pit gold mine in Ontario

July 21st, 2015

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GTA Resources samples gold over IP anomalies at Ivanhoe

July 20th, 2015

by Greg Klein | July 20, 2015

Sample results reported July 20 by GTA Resources and Mining TSXV:GTA confirm gold associated with induced polarization anomalies at the Ivanhoe project in Ontario. Summer field work collected 83 rock samples and 47 soil samples, with rock samples ranging from less than 5 ppb to 1.13 grams per tonne gold.

GTA Resources samples gold over IP anomalies at Ivanhoe

Among the grab samples were grades of 0.75 g/t and 1.13 g/t found near the western end of the 500-metre-long Montana high resistivity zone. Samples reported from the area last year reached as high as 4.81 g/t.

A quartz float sample at the BP porphyry zone graded up to 1.13 g/t and was found 180 metres northeast of a float that last year graded 18.1 g/t gold. Of 15 soil samples from an area approximately 200 metres by 500 metres, seven showed anomalous results ranging from seven to 102 ppb gold.

GTA has drilling planned for autumn. The 13,258-hectare property features an interpreted extension of the Porcupine Destor fault zone and the northeast extension of the interpreted trend hosting the Borden Lake gold discovery acquired earlier this year by Goldcorp TSX:G through its takeover of Probe Mines.

GTA’s flagship is the 337-hectare Northshore project on the Hemlo-Schreiber Greenstone Belt. An engineering study announced last month examined a possible small-scale, low-cost open pit operation. The company has completed a 51% earn-in on the project, a joint venture with Balmoral Resources TSX:BAR.

In Newfoundland, GTA has geophysics planned for its recently acquired Burnt Pond zinc-copper property.

Read more about GTA Resources and Mining.

Low-hanging fruit

June 26th, 2015

GTA Resources considers mining near-surface, high-grade Ontario gold

by Greg Klein

For the majors, the really big new gold deposits seem more and more elusive. But GTA Resources and Mining TSXV:GTA thinks it might have found enough low-hanging fruit to make a substantial impact on a small-cap company. Recently optimized high-grade pit shells have GTA examining the possibility of low-cost production at the Northshore project, 125 kilometres west of Hemlo.

GTA Resources considers mining near-surface, high-grade Ontario gold

A program of shallow infill drilling would help determine
the viability of small-scale mining at GTA’s Northshore project.

“We knew we had a high-grade zone within the Afric deposit,” CEO Wayne Reid says of Northshore’s June 2014 resource estimate. “And we wanted to know what could be put in shallow pits as a high-grade resource because it might be very simple to mine this stuff in an open pit with very little stripping and truck it to an existing mill.”

In a joint venture with Balmoral Resources TSX:BAR, GTA has completed a 51% earn-in and acts as operator of the 337-hectare project on the Hemlo-Schreiber Greenstone Belt. Based on 52 holes totalling 11,390 metres, the Afric zone’s resource used a 0.5 gram-per-tonne cutoff to show:

  • indicated: 12.36 million tonnes averaging 0.99 g/t for 391,000 ounces gold

  • inferred: 29.58 million tonnes averaging 0.87 g/t for 824,000 ounces

Intrigued by the high-grade areas close to surface, GTA commissioned an engineering study that detailed two pit shells within the existing resource. In results released this month, two options were provided within each shell, with those for the West area showing:

Pit Pws 28

  • indicated: 56,825 tonnes averaging 2.92 g/t for 5,335 ounces

Pit Pws 31

  • indicated: 100,665 tonnes averaging 2.8 g/t for 9,062 ounces

For the East area, the two options showed:

Pit Pws 28

  • inferred: 62,809 tonnes averaging 2.86 g/t for 5,775 ounces

Pit Pws 31

  • indicated: 91,449 tonnes averaging 2.38 g/t for 6,998 ounces

  • inferred: 287,060 tonnes averaging 2.63 g/t for 24,273 ounces

For both East and West areas, pit 28 totals 5,335 ounces indicated and 5,775 ounces inferred. Pit 31’s total comes to 16,060 ounces indicated and 24,273 ounces inferred. The strip ratio for each pit came to 0.5 and 0.8 respectively.

If a low-cost mining scenario proves possible, such numbers could offer significant opportunity for a company like GTA, Reid says. An affable Newfoundlander who’s been a professional geologist for close to 40 years, he looks back on a career largely focused on Archean gold deposits, mainly in the Timmins camp but also in Red Lake, along with base metals and uranium experience.

Reid spent over 20 years in senior roles with the Noranda/Hemlo group. He’s also served as manager of Canadian exploration for Echo Bay Mines and exploration manager for St. Andrew Goldfields TSX:SAS, in addition to positions with other companies. Reid initially staked and began exploration at Brewery Creek and took part in the team that sunk the first holes in Newfoundland’s Boundary deposit, which became the Duck Pond mine.

Looking at Northshore’s optimized pits, he says, “I think that if our preliminary numbers can be verified you could have a good profit without needing a lot of capital. What we need to do now is put some economic numbers on that and also firm up those ounces.”

To accomplish that, Reid wants to do shallow infill drilling, baseline environmental studies and a mini-bulk sample ranging from 10,000 to 50,000 tonnes, depending on what permitting allows. A four-kilometre road linking to the Trans-Canada Highway would need upgrading. “We’ve already talked to some existing mills within a 150-kilometre radius of the deposit,” Reid says.

With $600,000 now in the till, GTA hopes to raise more money soon through a flow-through share offering which would allow further work to resume around mid-summer.

I think it would take one key person to co-ordinate it. After that, it’s all contracting—the mining, the trucking, the milling.—Wayne Reid, CEO of
GTA Resources and Mining

While the Hemlo-Schreiber Greenstone Belt discovery remains GTA’s flagship, the company’s also active farther east, between Timmins and the Borden Lake deposit acquired by Goldcorp TSX:G earlier this year. Now in the second year of a 100% option on the Ivanhoe project, GTA expanded its claims by 40% over the last year to compile a 13,258-hectare land package. An interpreted extension of the Destor Porcupine fault zone extends across the northern part of the property.

Last year’s prospecting identified four areas of gold mineralization on the Destor Porcupine break and a porphyry trend. Samples graded up to 4.1 g/t and 18.1 g/t. Magnetometer and induced polarization surveys followed, with IP finding several high resistivity and chargeability targets that appear to coincide with the mineralized areas. With additional fieldwork to come, drilling is tentatively planned for late summer or early fall.

In Reid’s home province and near the Duck Pond mine he helped explore, GTA optioned claims earlier this month that comprise part of the Burnt Pond zinc-copper property. “We’re going to do a geophysical program to better identify some VMS or base metals targets and get ready to drill them,” he says. The plan is to take advantage of Newfoundland’s 50% rebate on exploration costs. Surveys could begin in summer or fall.

Back in Ontario but currently on the backburner is GTA’s Auden property, immediately south of Zenyatta Ventures’ (TSXV:ZEN) Albany graphite project.

If all goes well at Northshore, the high-grade, near-surface areas could potentially “make serious money for our market cap,” Reid emphasizes. For the exploration company to go into production, “we would have to get the right people in the right places,” he explains. “I think it would take one key person to co-ordinate it. After that, it’s all contracting—the mining, the trucking, the milling.”

He adds, “Now if someone wanted to take it out and buy it from us, we’d be open to that also.”

Zimtu Capital options Newfoundland zinc-copper project to GTA Resources

June 4th, 2015

by Greg Klein | June 4, 2015

An agreement with Zimtu Capital TSXV:ZC announced June 4 would allow GTA Resources and Mining TSXV:GTA to earn a 100% interest in two licences comprising part of central Newfoundland’s Burnt Pond zinc-copper property. The project sits within the Tally Pond volcanic belt that hosts Teck Resources’ (TSX:TCK.A and TCK.B) Duck Pond mine, as well as other copper-zinc-silver-gold massive sulphide deposits.

Zimtu Capital options Newfoundland zinc-copper project to GTA Resources

Duck Pond began commercial production in 2007, producing copper and zinc concentrates that are trucked to the port of St. Georges on Newfoundland’s west coast. Burnt Pond features “the same geological package of altered felsic volcanic rocks as are common to the Duck Pond mine,” Zimtu stated. The property has untested electromagnetic targets coinciding with anomalous base metals in rock and soils. “Anomalous base metal values associated with the VMS-style alteration include the Wim showing (1.9% zinc, 1.5% lead) and drill intersections of 1% zinc over 2.9 metres.”

The deal would allow GTA to earn 100% of two licences comprising 47 claim units. Burnt Pond totals six licences comprising 103 units.

Zimtu receives $3,055 on signing and 1.2 million GTA shares within a week of TSXV approval. Zimtu acquired the claims through staking. The company “provides mineral property project generation and advisory services, and helps to connect companies with mineral properties of interest,” Zimtu stated.

GTA holds three projects in northern Ontario: the 51%-owned Northshore gold project, the 100%-owned Auden graphite project and the Ivanhoe gold project, in which GTA has an option to acquire 100%.

Disclaimer: Zimtu Capital Corp is a client of OnPage Media Corp, the publisher of The principals of OnPage Media may hold shares in Zimtu Capital.

Undaunted by dogma

April 25th, 2014

Kapuskasing Gold wants to prove, once again, that Mike Tremblay’s right about Ontario’s newest gold district

by Greg Klein

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He might have spent over 20 years as a voice crying in the Kapuskasing wilderness, but prospector Mike Tremblay saw his theories validated by a 2010 discovery on property he staked. That was the Borden Lake project in what Probe Mines TSXV:PRB calls Ontario’s newest gold district, the Kapuskasing structural zone. Now as an adviser to Kapuskasing Gold TSXV:KAP, Tremblay wants to open up more of this almost unexplored region.

The Kapuskasing zone sits tantalizingly close to a number of gold camps. Yet it’s received surprisingly little attention. Having grown up in the nearby town of Chapleau, Tremblay says locals often asked, “Why do we have mines all around us but there’s no mines here?” His response: “It was because of this great big Kapuskasing structure that nobody was exploring in.”

Kapuskasing Gold wants to prove, once again, that Mike Tremblay’s right about Ontario’s newest gold district

Tremblay says he was “lucky enough to learn from really smart people, the kind of people who would take you under their wing and teach you.” But something about the region close to home intrigued him. “I always had that contrary, stubborn streak in me, so you couldn’t tell me that something wasn’t possible.”

While working with Noranda Mines he learned about a VMS target that the company walked away from. Tremblay staked it in 1987, lost it at one point, re-staked it and, along with partner Jack Robert, finally sold it to Probe.

That was in March 2010. By June of that year the company had flown a VTEM survey. That summer they hit, eventually announcing a 91-metre intercept averaging two grams per tonne gold from one of six near-surface mineralized holes over a potential 250-metre strike.

Vindicated, Tremblay and his collaborators sought new turf in the Kapuskasing. Meanwhile by January 2013 Probe revealed a global resource of 5.19 million ounces indicated and 1.18 million ounces inferred. In May of last year Agnico Eagle TSX:AEM took a 9.9% stake in Probe. Then in November Tremblay, Robert and Probe won the 2013 Ontario Prospectors Association Award. The OPA credited the “new and unique discovery” to the fact that Tremblay and the others showed themselves “undaunted by dogma.”

Early this year Tremblay and his staking team sold two more properties, “my dream concepts in the area,” to Olympic Resources. He also joined as an adviser, helping transform the company into Kapuskasing Gold.

The acquisitions are Borden North, two claim blocks totalling 6,800 hectares by the Kapuskasing zone’s eastern margin about 60 kilometres north of Probe’s resource, and Rollo, a 7,136-hectare property just east of the zone.

“On Borden North there’s a big S-fold up in the mafic volcanics, so if there was anything it would fatten out in the fold, it would be a structural trap,” Tremblay explains. “When KAP got involved, we staked ground around it to cover all the potential.”

“Rollo was another one that I generated,” he adds. “I once worked with a prospector in his 80s. He was 18 years old in 1933, when they made some big discoveries in the region. So he had intimate knowledge of the area and he told me about this gold showing on a portage on what is now the Rollo project. So when that ground came open, 20 years after he passed on, I remembered he talked about a porphyry on that portage where he panned gold. That was the enticement to get the other guys to put in money.”

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Albany’s area play continues

August 16th, 2013

More companies move in on Zenyatta’s Ontario graphite project

by Greg Klein

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In just over five weeks at least a dozen companies have picked up properties around Zenyatta Ventures’ TSXV:ZEN Albany graphite project in north-central Ontario. A steady source of encouraging news since its January 2012 discovery, Albany was bound to attract admirers—but why so late and suddenly so many? Little is being said, other than the properties became available and the timing couldn’t be better.

“It’s been great for the markets,” says Michael England, CEO/director of Cariboo King Resources TSXV:CKR. “All the juniors that have gone in have seen an increase in volume and even some financings. It’s been fantastic. It’s kind of what the doctor ordered for our markets. All of us were so dead but with the [Alpha Minerals TSXV:AMW/Fission Uranium TSXV:FCU] uranium play in the Athabasca Basin and this one—wow! What a change it’s made.”

More companies move in on Zenyatta’s Ontario graphite project

Among the earlier entrants reported by on July 17 were Brookemont Capital TSXV:BKT with its 416-hectare Albany East property, Cavan Ventures’ TSXV:CVN 768-hectare Cage claims, TAD Mineral Exploration’s TSXV:TJ 257-hectare Constance Lake property and Bluenose Gold’s TSXV:BN.H Zenyatta West project.

Other acquisitions include Weststar Resources’ TSXV:WER 304-hectare Albany South East property announced July 16, TAD’s second foray with the 386-hectare Constance Lake West property announced July 25 and Ashburton Ventures’ TSXV:ABR 16-claim, 256-hectare Page property announced the following day.

Cariboo King heralded its 256-hectare Nezen property July 29. The next day Alchemist Mining TSXV:AMS did the same for its 256-hectare Mondatta property and the day after that MPH Ventures TSXV:MPS got in on the act with its same-sized North Albany. On August 13 GTA Resources and Mining TSXV:GTA said it increased its Auden project to over 26,000 hectares, making it the area’s largest landholder.

Then the play moved farther afield with two August 15 announcements, Cariboo King’s 1,536-hectare Pito property 20 kilometres west of Albany’s drill holes and, about 25 kilometres east of Zenyatta, the 256-hectare Hearst project for Benton Resources TSXV:BEX—which passed it on to Alabama Graphite CNSX:ALP the very next day. Alabama IR officer Danny Gravelle tells, “The property became prospective to Benton not only because of the location but an historic report by Noranda which gave some really strong indicators that there’s potential for graphite.”

But what prompted so many companies to pour into the Albany area at this time? Gravelle responds that Zenyatta’s story obviously has investors compelled. After trading for less than $2 in May the stock hit a 52-week high of $5 on July 26. “For a stock to perform as it has in the worst market I’ve seen in my lifetime shows a significant amount of strength. I think investors are convinced that Zenyatta has great potential because they’ve shown they like this story even in the worst of markets. That’s what really generated the interest.”

Cariboo King, with projects close to a number of former graphite mines in Quebec and also to Timcal Graphite & Carbon’s operating Lac-des-Iles mine, evidently lets others lead the way. “I do play closeology a lot with my companies,” England tells He saw the policy pay off when New Gold TSX:NGD took out Geo Minerals in December 2011. “That was something that we never even drilled but it was close to their Blackwater deposit.”

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