Wednesday 22nd January 2020

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Posts tagged ‘labrador’

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.

PDAC infographics: Highlighting mining’s contributions to Canada’s economy

October 28th, 2019

by Greg Klein | October 28, 2019

Although Canadian miners hold global stature, Canadians don’t always recognize the industry’s importance to our own country. Yet the numbers tell a story that’s not only impressive but vital to understanding an economy in which mining supports one in 29 jobs and provides the largest private sector source of native employment.

To state the case clearly, the Prospectors & Developers Association of Canada created a series of infographics outlining the industry’s contributions. Check them out yourself by scrolling down to see facts and figures for Canada overall and for each province or territory. Or click on the menu below for a direct link to each jurisdiction.

Canada nationwide | Yukon | Northwest Territories/Nunavut | British Columbia | Alberta | Saskatchewan | Manitoba | Ontario | Quebec | New Brunswick/Nova Scotia | Newfoundland and Labrador/Prince Edward Island

Posted with permission of the Prospectors & Developers Association of Canada.

 

PDAC infographics Highlighting mining’s contributions to Canada’s economy

 

PDAC Yukon mining infographic

 

PDAC NWT Nunavut mining infographic

 

PDAC BC mining infographic

 

PDAC Alberta mining infographic

 

PDAC Saskatchewan mining infographic

 

PDAC Manitoba mining infographic

 

PDAC Ontario mining infographic

 

PDAC Quebec mining infographic

 

PDAC Nova Scotia New Brunswick mining infographic

 

PDAC Newfoundland Labrador PEI mining infographic

Posted with permission of the Prospectors & Developers Association of Canada.

Site visits for sightseers IV

July 31st, 2019

Atlantic Canada’s mining heritage can captivate visitors

by Greg Klein

Atlantic Canada’s mining heritage captivates visitors

Among the Bell Island operations that produced about 81 million tonnes of
iron ore by 1966, this Newfoundland mine gives visitors a glimpse of the past.
(Photo: Bell Island #2 Mine and Community Museum)

 

Our survey of historic mining sites and museums wraps up with a trip through Nova Scotia, Newfoundland and Labrador. With places known for precious and base metals as well as mineralogical exotica like salt, fluorspar and asbestos, these Atlantic provinces once hosted a globally important coal and steel industry—important enough to merit military attacks during World War II. Even where mining’s a practice of the past, many people continue to recognize the industry’s influence on their communities.

As usual with these visits, check ahead for footwear and other clothing requirements, for additional info like kids’ age restrictions, and to confirm opening times.

Three previous installments looked at Yukon and British Columbia, the prairie provinces, and Ontario and Quebec.

 

Nova Scotia

 

In a region where the industry goes back nearly 300 years, the Cape Breton Miners Museum tells the stories of coal diggers, their work, lives and community. The scenic six-hectare coastal site also includes a few restored buildings from the company village and the Ocean Deeps Colliery, where retired miners lead underground/undersea tours to offer first-hand accounts of a miner’s life. The museum also presents occasional concerts by the Men of the Deeps, made up entirely of people who’ve worked in or around coal mines: “We’re the only choir where the second requirement is that you have to be able to sing.”

Located on Birkley Street north from Route #28, about 1.5 kilometres southeast of downtown Glace Bay. Open daily 10:00 to 6:00 until October 20, with daily tours. Phone 902-849-4522 for off-season hours and tours.

 

Atlantic Canada’s mining heritage captivates visitors

Coal production in the Sydney Mines area dates as far back as 1724.
(Photo: Sydney Mines Heritage Museum)

Farther west along the serrated coast, the Sydney Mines Heritage Museum looks at not only coal extraction but also the time when this town was a major steelmaking centre. Originally a 1905 railway station, the building also houses a transportation exhibit, the Cape Breton Fossil Discovery Centre and a sports museum.

Located at 159 Legatto Street, just north of Main Street (Route #305), Sydney Mines. Open Tuesday to Saturday 9:00 to 5:00 until September 7. Phone 902-544-0992 for Sydney Coalfield fossil field trips held on Thursdays and Saturdays to August 24, weather and tides permitting.

 

About 76 kilometres east of Amherst was Canada’s first industrial source of an edible mineral, now commemorated by the Malagash Salt Mine Museum. This small building features the mine’s off-and-on operations between 1918 and 1959, and the local miners, farmers, fishermen and lumberjacks who worked the deposit until it was replaced by another salt source at nearby Pugwash.

Located at 1926 North Shore Road, east of Route #6, Malagash. Open Tuesday to Saturday 10:00 to 5:00, Sunday noon to 5:00 until September 15. Call 902-257-2407 for more info.

 

In the Annapolis Valley about 95 kilometres southeast of Moncton, the Springhill Miners’ Museum portrays the historically dangerous work that prevailed in these coal mines between the late 1800s and the 1950s. Guides lead underground tours of about an hour’s duration.

Located at 145 Black River Road, about 1.5 kilometres south of Springhill, just east of Route #2. Open daily 9:00 to 5:00, with tours available hourly from 9:00 to 4:00 until October 15. Call 902-597-3449 for more info.

 

Newfoundland and Labrador

Atlantic Canada’s mining heritage captivates visitors

Kids tour a mine that once employed boys as young as 10.
(Photo: Bell Island #2 Mine and Community Museum)

Complementing coal from Cape Breton was iron ore from Bell Island in Conception Bay, where six mines operated at various times between 1895 and 1966. The Bell Island #2 Mine and Community Museum hosts exhibits and offers one-hour tours through an underground operation that closed in 1949. Another feature relates the 1942 U-boat attacks at Belle Island that sunk four ore-carrying ships and killed over 60 men, leading to Allied fears that Germany would occupy St. John’s.

Located at 13 Compressor Hill, Bell Island. Open daily 10:00 to 6:00 until September 30. Call 709-488-2880 or toll-free 1-888-338-2880 for more info.

 

A number of mines produced fluorspar between 1933 and 1978 on the Rock’s southern-most peninsula, where Canada Fluorspar hopes to revive the industry. The St. Lawrence Miner’s Memorial Museum recounts workers’ lives, including the danger they faced before the presence of radon gas was recognized. Emphasizing the sacrifice, the neighbouring graveyard can be seen from museum windows. On a more pleasant note, new uses for the colourful mineral can be found in the gift shop’s fluorspar jewelry.

Located on Route #220, east of Memorial Drive, St. Lawrence. Open daily 8:30 to 4:30 until September 1. Call 709-873-3160 for more info.

 

The Baie Verte Miners’ Museum stands above one of six major mines locally, the former Terra Nova copper producer that dates back to the mid-1800s in a north-coastal region that also provided gold, silver and asbestos. On display are mining and mineralogy exhibits and a mining locomotive, along with aboriginal artifacts. Museum tours are available.

Located at 319 Route 410, Baie Verte. Open Monday 10:00 to 4:00, Tuesday to Sunday 9:00 to 6:00 until mid-September. Call 709-532-8090 for more info.

 

The Iron Ore Company of Canada no longer provides tours of its Labrador City facilities but the Gateway Labrador tourism centre offers an alternative—an 18-minute virtual reality experience of IOC’s operations, from mining to processing to delivery at Sept-Îles. Gateway’s museum hosts additional mining exhibits as well as presentations on other industries “to debunk the popular misconception that Labrador West’s history is comprised only of mining.”

Located at 1365 Route #500, Labrador City. Open Monday to Friday 9:00 to 8:00, and Saturday and Sunday 9:00 to 5:00 until mid- or late August. Off-season hours Monday to Friday 9:00 to 5:00. Call 709-944-5399 for more info.

 

See Part 1 about Yukon and British Columbia, Part 2 about the prairie provinces, and Part 3 about Ontario and Quebec.

Miners and explorers pick their spots in Fraser Institute’s latest report card

February 28th, 2019

by Greg Klein | February 28, 2019

Ontario dropped dramatically but an improved performance by the Northwest Territories and Nunavut helped Canada retain its status as the planet’s most mining-friendly country. That’s the verdict of the Fraser Institute’s Annual Survey of Mining Companies 2018, a study of jurisdictions worldwide. Some 291 mining and exploration people responded to questions on a number of issues, supplying enough info to rank 83 countries, provinces and states.

Canadian and American jurisdictions dominated the most important section, with four spots each on the Investment Attractiveness Index’s top 10. Combined ratings for all Canadian jurisdictions held this country’s place as the miners’ favourite overall.

The IAI rates both geology and government policies. Respondents typically say they base about 40% of their investment decisions on policy factors and about 60% on geology. Here’s the IAI top 10 with the previous year’s numbers in parentheses:

  • 1 Nevada (3)

  • 2 Western Australia (5)

  • 3 Saskatchewan (2)

  • 4 Quebec (6)

  • 5 Alaska (10)

  • 6 Chile (8)

  • 7 Utah (15)

  • 8 Arizona (9)

  • 9 Yukon (13)

  • 10 Northwest Territories (21)

Here are Canada’s IAI rankings:

  • 3 Saskatchewan (2)

  • 4 Quebec (6)

  • 9 Yukon (13)

  • 10 Northwest Territories (21)

  • 11 Newfoundland and Labrador (11)

  • 12 Manitoba (18)

  • 15 Nunavut (26)

  • 18 British Columbia (20)

  • 20 Ontario (7)

  • 30 New Brunswick (30)

  • 51 Alberta (49)

  • 57 Nova Scotia (56)

Despite Ontario’s fall from grace, the province’s policy ratings changed little from last year. Relative to other jurisdictions, however, the province plummeted. Concerns include disputed land claims, as well as uncertainty about protected areas and environmental regulations.

The Policy Perception Index ignored geology to focus on how government treats miners and explorers. Saskatchewan ranked first worldwide, as seen in these Canadian standings:

The evidence is clear—mineral deposits alone are not enough to attract precious commodity investment dollars. A sound regulatory regime coupled with competitive fiscal policies is key to making a jurisdiction attractive in the eyes of mining investors.—Ashley Stedman,
senior policy analyst,
the Fraser Institute

  • 1 Saskatchewan (3)

  • 9 New Brunswick (13)

  • 10 Quebec (9)

  • 11 Nova Scotia (24)

  • 14 Alberta (16)

  • 18 Newfoundland (10)

  • 24 Yukon (22)

  • 30 Ontario (20)

  • 33 Manitoba (27)

  • 42 NWT (42)

  • 44 B.C. (36)

  • 45 Nunavut (44)

The NWT and Nunavut’s indifferent PPI performance suggests greater appreciation of the territories’ geology boosted their IAI rank.

This year’s study included a chapter on exploration permitting, previously the subject of a separate Fraser Institute study. Twenty-two jurisdictions in Canada, the U.S., Australia and Scandinavia were evaluated for time, transparency and certainty. Cumulatively, the six American states did best, with 72% of explorers saying they got permits within six months, compared with 69% for the eight Canadian provinces, 53% for the two Scandinavian countries (Finland and Sweden) and 34% for the six Australian states.

A majority of respondents working in Canada (56%) said permitting waits had grown over the last decade, compared with 52% in Australia, 45% in Scandinavia and 28% in the U.S.

A lack of permitting transparency was cited as an investment deterrent by 48% of respondents working in Australia, 44% in Canada, 33% in Scandinavia and 24% in the U.S.

Eighty-eight percent of explorers working in the U.S. and Scandinavia expressed confidence that they’d eventually get permits, followed by 77% for Australia and 73% for Canada.

Saskatchewan led Canada for timeline certainty, transparency and, with Quebec, confidence that permits would eventually come through.

As for the IAI’s 10 worst, they include Bolivia, despite some recent efforts to encourage development; China, the only east Asian country in the study; and problem-plagued Venezuela.

  • 74 Bolivia (86)

  • 75 La Rioja province, Argentina (80)

  • 76 Dominican Republic (72)

  • 77 Ethiopia (81)

  • 78 China (83)

  • 79 Panama (77)

  • 80 Guatemala (91)

  • 81 Nicaragua (82)

  • 82 Neuquen province, Argentina (57)

  • 83 Venezuela (85)

Explorers made up nearly 52% of survey respondents, producers just over 25%, consulting companies over 16% and others nearly 8%.

“The evidence is clear—mineral deposits alone are not enough to attract precious commodity investment dollars,” said Ashley Stedman, who co-wrote the study with Kenneth P. Green. “A sound regulatory regime coupled with competitive fiscal policies is key to making a jurisdiction attractive in the eyes of mining investors.”

Download the Fraser Institute Annual Survey of Mining Companies 2018.

Streamers turn to cobalt as Vale extends Voisey’s Bay nickel operations

June 11th, 2018

by Greg Klein | June 11, 2018

It was a day of big moves for energy minerals as China bought into Ivanhoe, Vale lengthened Voisey’s and streaming companies went after the Labrador nickel mine’s cobalt.

On June 11 Robert Friedland announced CITIC Metal would pay $723 million for a 19.9% interest in Ivanhoe Mines TSX:IVN, surpassing the boss’ own 17% stake to make the Chinese state-owned company Ivanhoe’s largest single shareholder. Another $78 million might also materialize, should China’s Zijin Mining Group decide to exercise its anti-dilution rights to increase its current 9.9% piece of Ivanhoe.

Streamers turn to cobalt as Vale extends Voisey’s Bay nickel operations

At peak production, Voisey’s underground operations are expected to
ship about 45,000 tonnes of nickel concentrate annually to Vale’s
processing plant at Long Harbour, Newfoundland.

Proceeds would help develop the flagship Kamoa-Kakula copper-cobalt mine in the Democratic Republic of Congo and the Platreef platinum-palladium-nickel-copper-gold mine in South Africa, as well as upgrade the DRC’s historic Kipushi zinc-copper-silver-germanium mine. Ivanhoe and Zijin each hold a 39.6% share in the Kamoa-Kakula joint venture.

Even bigger news came from St. John’s, where Newfoundland and Labrador Premier Dwight Ball joined Vale NYSE:VALE brass to herald the company’s decision to extend Voisey’s Bay operations by building an underground mine.

The announcement marked the 16th anniversary of Vale’s original decision to put Voisey (a Friedland company discovery) into production. Mining began in 2005, producing about $15 billion worth of nickel, copper and cobalt so far. Open pit operations were expected to end by 2022. Although a 2013 decision to go ahead with underground development was confirmed in 2015, the commitment seemed uncertain as nickel prices fell. That changed dramatically over the last 12 months.

With construction beginning this summer, nearly $2 billion in new investment should have underground operations running by April 2021, adding at least 15 years to Voisey’s life. The company estimates 16,000 person-years of employment during five years of construction, followed by 1,700 jobs at the underground mine and Long Harbour processing plant, with 2,135 person-years in indirect and induced employment annually.

Nickel’s 75% price improvement over the last year must have prodded Vale’s decision. But streaming companies were quick to go after Voisey’s cobalt. In separate deals Wheaton Precious Metals TSX:WPM and Cobalt 27 Capital TSXV:KBLT have agreed to buy a total of 75% of the mine’s cobalt beginning in 2021, paying US$390 million and US$300 million respectively. They foresee an average 2.6 million pounds of cobalt per year for the first 10 years, with a life-of-mine average of 2.4 million pounds annually.

Both companies attribute cobalt’s attraction to clean energy demand and a decided lack of DRC-style jurisdictional risk. But Vale also emphasizes nickel’s promise as a battery metal. Last month spokesperson Robert Morris told Metal Bulletin that nickel demand for EVs could rise 10-fold by 2025, reaching 350,000 to 500,000 tonnes.

Total nickel demand currently sits at slightly more than two million tonnes, Morris said. New supply would call for price increases well above the record levels set this year, he added.

King’s Bay Resources reports initial drill results from Labrador nickel-cobalt project

January 16th, 2018

by Greg Klein | January 16, 2018

Although collared 150 metres apart, the first two holes on King’s Bay Resources’ (TSXV:KBG) Lynx Lake property both showed nickel-cobalt values above background levels over wide intervals.

King’s Bay Resources reports initial drill results from Labrador nickel-cobalt project

Lynx Lake has the Trans-Labrador Highway
bisecting the property, as well as adjacent power lines.

Hole LL-17-01 brought 0.058% nickel and 0.013% cobalt over 115.2 metres. LL-17-02 returned 0.057% nickel and 0.014% cobalt over 110.8 metres (not true widths). The thickness of the intervals and distance between the holes suggest “potential for a more localized zone of economic mineralization in the area,” the company stated. Assays for gold, platinum and palladium are expected later this month.

The initial drill campaign tested a small part of an approximately 24,200-hectare property. Under focus was the project’s West Pit, where airborne VTEM found a shallow anomaly of high resistivity measuring about 400 metres in diameter and 50 to 300 metres in depth. Historic, non-43-101 grab sample assays from the area graded up to 1.03% copper, 0.566% cobalt, 0.1% nickel, 5 g/t silver, 0.36% chromium, 0.39% molybdenum and 0.23% vanadium.

Other historic, non-43-101 grab samples from the property’s east side showed up to 1.39% copper, 0.94% cobalt, 0.21% nickel and 6.5 g/t silver.

King’s Bay now plans geostatistical and structural analysis to identify more drill targets. A field crew returns later this year.

Meanwhile a 6% copper grade highlighted last month’s results from the company’s Trump Island project in northern Newfoundland. Four of 15 outcrop samples surpassed 1% copper and also showed cobalt assays up to 0.12%.

In September King’s Bay offered a $250,000 private placement that followed financings totalling $402,000 that closed the previous month.

King’s Bay Resources samples 6% copper in Newfoundland, awaits Labrador cobalt assays

December 15th, 2017

by Greg Klein | December 15, 2017

A three-day Phase I field program in northern Newfoundland brought encouraging copper grades for King’s Bay Resources’ (TSXV:KBG) Trump Island project. Out of 15 samples taken from outcrop, four surpassed an upper detection limit of 1% copper, with results showing:

King’s Bay Resources samples 6% copper in Newfoundland, awaits Labrador cobalt assays

  • >10,000 ppm copper, 303 ppm cobalt and >6 ppm silver

  • >10,000 ppm copper, 1,213.6 ppm cobalt and 21.1 ppm silver

  • >10,000 ppm copper, 634.5 ppm cobalt and 27.4 ppm silver

  • >10,000 ppm copper, 272.3 ppm cobalt and 28.7 ppm silver

With those numbers from aqua regia digestion Ultratrace ICP-MS analysis, King’s Bay sent the first sample to a second lab for additional tests using ICP and ore grade analysis, with the following result:

  • 6.07% copper, 0.03% cobalt and 14.4 ppm silver

Grab samples don’t represent the entire property, King’s Bay cautioned. But the company sees further exploration warranted for next spring. The boat-accessible property’s historic work dates to historic times, when in 1863 a miner from Cornwall reportedly extracted a supply of copper and cobalt for shipment to Wales. Non-43-101 results from 1999 grab sampling near the Cousin Jack’s mineshaft showed 3.8% copper, 0.3% cobalt, 2.9 g/t gold and 10.9 g/t silver. The 200-hectare property has yet to be drilled.

Last month King’s Bay wrapped up an initial two-hole, 502-metre program at its Lynx Lake cobalt project in Labrador. Assays are expected in early January but the company reported intervals of net textured gabbro totalling 164.3 metres, along with a 14.9-metre intercept of mineralized biotite gabbro. The holes targeted the West Pit area, where the company anticipates a VTEM anomaly to range from 50 to 300 metres’ depth and about 400 metres in diameter. A highway and powerlines run through the 24,000-hectare property.

King’s Bay offered a $250,000 private placement in September.

Paved with mineralization

October 27th, 2017

Norman B. Keevil’s memoir retraces Teck’s—and his own—rocky road to success

by Greg Klein

Norman B. Keevil’s memoir retraces Teck’s—and his own—rocky road to success

Profitable right from the beginning, Teck’s Elkview mine “would become
the key chip in the consolidation of the Canadian steelmaking coal industry.”
(Photo: Teck Resources)

 

“We were all young and relatively inexperienced in such matters in those days.”

He was referring to copper futures, a peril then unfamiliar to him. But the remark’s a bit rich for someone who was, at the time he’s writing about, 43 years old and president/CEO of a company that opened four mines in the previous six years. Still, the comment helps relate how Norman B. Keevil enjoyed the opportune experience of maturing professionally along with a company that grew into Canada’s largest diversified miner. Now chairperson of Teck Resources, he’s penned a memoir/corporate history/fly-on-the-wall account that’s a valuable contribution to Canadian business history, not to mention the country’s rich mining lore.

Norman B. Keevil’s memoir retraces Teck’s—and his own—road to success

Norman B. Keevil
(Photo: Teck Resources)

Never Rest on Your Ores: Building a Mining Company, One Stone at a Time follows the progress of a group of people determined to avoid getting mined out or taken out. In addition to geoscientific, engineering and financial expertise, luck accompanies them (much of the time, anyway), as does acumen (again, much of the time anyway).

Teck gains its first foothold as a predecessor company headed by Keevil’s father, Norman Bell Keevil, drills Temagami, a project that came up barren for Anaconda. The new guys hit 28% copper over 17.7 metres. Further drilling leads to the three-sentence feasibility study:

Dr. Keevil: What shall we do about Temagami?

Joe Frantz: Let’s put it into production.

Bill Bergey: Sounds good to me.

They schedule production for two and a half months later.

A few other stories relate a crucial 10 seconds in the Teck-Hughes acquisition, the accidental foray into Saskatchewan oil, the Toronto establishment snubbing Afton because of its VSE listing, an underhanded ultimatum from the British Columbia government, getting out of the oyster business and winning an unheard-of 130% financing for Hemlo.

Readers learn how Murray Pezim out-hustled Robert Friedland. But when it came to Voisey’s, Friedland would play Inco and Falconbridge “as though he were using a Stradivarius.” Keevil describes one guy welching on a deal with the (apparently for him) unarguable excuse that it was only a “gentleman’s agreement.”

Norman B. Keevil’s memoir retraces Teck’s—and his own—rocky road to success

Through it all, Teck gets projects by discovery or acquisition and puts them into production. Crucial to this success was the Teck team, with several people getting honourable mention. The author’s closest accomplice was the late Robert Hallbauer, the former Craigmont pit supervisor whose team “would go on to build more new mines in a shorter time than anyone else had in Canadian history.” Deal-making virtuoso David Thompson also gets frequent mention, with one performance attributed to his “arsenal of patience, knowledge of the opponents, more knowledge of the business than some of them had, and a tad of divide and conquer…”

Partnerships span the spectrum between blessing and curse. International Telephone and Telegraph backs Teck’s first foray into Chile but frustrates its ability to do traditional mining deals. The Elk Valley Coal Partnership puts Teck, a company that reinvests revenue into growth, at odds with the dividend-hungry Ontario Teachers’ Pension Plan. Working with a Cominco subsidiary, Keevil finds the small-cap explorer compromised by the “ephemeral response of the junior stock market.” And smelters rip off miners. But that doesn’t mean a smelter can’t become a valued partner.

Keevil argues the case for an almost cartel-like level of co-operation among miners. Co-ordinated decisions could avoid surplus production, he maintains. Teck’s consolidation of Canada’s major coal mines helped the industry stand up to Japanese steelmakers, who had united to take advantage of disorganized Canadian suppliers. “Anti-trust laws may be antediluvian,” he states.

Keevil admits some regrets, like missing Golden Giant and a Kazakhstan gold project now valued at $2 billion. The 2008 crash forced Teck to give up Cobre Panama, now “expected to be a US$6 billion copper mine.” Teck settled a coal partnership impasse by buying out the Ontario Teachers’ share for $12 billion. Two months later the 2008 crisis struck. Over two years Teck plunged from $3.6 billion in net cash to $12 billion in net debt.

But he wonders if his own biggest mistake was paying far too much for the remaining 50% of Cominco when an outright purchase might not have been necessary. Keevil attributes the initial 50%, on the other hand, to a miracle of deal-making.

For the most part Keevil ends his account in 2005, when he relinquishes the top job to Don Lindsay. By that time the company had 11 operating mines and a smelting/refining facility at Trail. A short chapter on the following 10 years, among the most volatile since the early ’70s, credits Teck with “a classic recovery story which deserves a full chapter in the next edition of Never Rest on Your Ores.” Such a sequel might come in another 10 years, he suggests.

Let’s hope he writes it, although it’ll be a different kind of book. As chairperson he won’t be as closely involved in the person-to-person, deal-to-deal, mine-to-mine developments that comprise the greatest strength of this book—that and the fact that the author grew with the company as it became Canada’s largest diversified miner.

Meanwhile, maybe Lindsay’s been keeping a diary.

The author’s proceeds go to two organizations that promote mining awareness, MineralsEd and Mining Matters.

King’s Bay Resources to begin first-ever drill program on Labrador copper-cobalt project

October 26th, 2017

by Greg Klein | October 26, 2017

Following up on field work and airborne geophysics, King’s Bay Resources TSXV:KBG has returned to its Lynx Lake property to prepare the site for an initial drill campaign. Under focus will be a VTEM-identified anomaly about 400 metres in diameter, extending about 50 to 300 metres in depth on the property’s West Pit.

King’s Bay Resources begins first-ever drill program on Labrador copper-cobalt project

A prospector displays a sample of
massive sulphides from Lynx Lake.

Historic, non-43-101 grab samples from the area brought up to 1.03% copper, 0.566% cobalt, 0.1% nickel, 5 g/t silver, 0.36% chromium, 0.39% molybdenum and 0.23% vanadium. At least two holes totalling 500 metres are planned.

About 24,000 hectares in size, the southeastern Labrador property has a year-round highway passing through the property and an adjacent powerline. East of the highway, historic, non-43-101 grab samples assayed up to 1.39% copper, 0.94% cobalt, 0.21% nickel and 6.5 g/t silver.

Earlier this month King’s Bay wrapped up Phase I exploration at its 200-hectare Trump Island copper-cobalt project on Newfoundland’s northern coast. Assays are pending for 15 outcrop samples showing sulphidic wall rock and massive sulphide veins.

In September the company offered a private placement up to $250,000. The previous month King’s Bay closed the second tranche of a financing that totalled $402,750.

See an infographic about cobalt.

Kapuskasing expands Newfoundland copper project, plans September drilling

August 23rd, 2017

by Greg Klein | August 23, 2017

Announced in May as an LOI but now ratified, Kapuskasing Gold’s (TSXV:KAP) 100% option adds the Sterling property and its former mines to the company’s Lady Pond project near the north coast of Newfoundland. The 700-hectare addition brings Lady Pond to 2,450 hectares with exploration and mining dating to the late 19th century. The standouts include the former Sterling mine, the Twin Pond prospect about 1.5 kilometres northeast and, three more kilometres northeast, the Lady Pond past-producer.

Sterling comes with an historic, non-43-101 1960s estimate of a million tonnes averaging 1% copper that’s open in all directions. Some historic, non-43-101 intercepts showed:

  • 5.5% copper over 4.42 metres, starting at 38.1 metres in downhole depth
Kapuskasing expands Newfoundland copper project, plans September drilling

  • 2.32% over 6.1 metres, starting at 106.68 metres

  • 1.45% over 4.57 metres, starting at 50.29 metres

Of 32 holes sunk on Twin Pond, some historic, non-43-101 highlights showed:

  • 4.2% copper over 3.35 metres, starting at 82.3 metres

  • 2.16% over 3.05 metres, starting at 33.53 metres

  • 3.2% over 3.05 metres, starting at 70.14 metres

Again with the historic, non-43-101 caveat, a Lady Pond intercept assayed 2.61% copper over 8.1 metres, with no downhole depth provided.

Having finished a preliminary 3D model for Sterling and Twin Pond, Kapuskasing stated it found significant gaps in drilling between high-grade intersections. Further review of historic data will precede drilling planned to begin next month. The company also plans an induced polarization survey between Sterling and Twin Pond.

With logging road and ATV access, the Lady Pond project borders the town of Springdale. Rambler Mining and Metals TSXV:RAB operates a base metals mill at Baie Verte, 94 kilometres by road from Springdale. Rambler also holds the historic Little Deer and Whalesback copper deposits contiguously west of Lady Pond.

Subject to TSXV approval, Kapuskasing gets a 100% interest in Sterling for $25,000, 1.8 million shares and $250,000 in spending over four years. A 3% NSR applies, of which Kapuskasing may buy two-thirds for $2 million.

The property expansion reflects an acquisitive phase as Kapuskasing expands its Newfoundland and Labrador portfolio. In May the company signed an LOI on the former Daniel’s Harbour zinc mine on the island’s north. Lady Pond was one of eight April acquisitions, with other properties showing potential for copper, cobalt and vanadium. Daniel’s Harbour and Lady Pond comprise the portfolio’s dual flagships.

Read Isabel Belger’s interview with Kapuskasing Gold president/CEO Jon Armes.