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Posts tagged ‘Lara Exploration Ltd (LRA)’

Despite the downturn

January 31st, 2014

Roundup 2014 speakers discuss how investors can profit and companies thrive

by Greg Klein

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We’re near bottom, we’ve hit bottom, the worst is behind us—over the last few wretched years those comments have come repeatedly from speakers at industry conferences. So maybe Victoria Yehl put it best in her January 30 closing remarks at Roundup 2014: “You, as the attendees and the delegates, let us know what’s going on in this industry … almost every evening at the Seawall Bar and Grill. It was certainly a higher level of enthusiasm than we’ve seen for a number of years.”

As chairperson of the Association for Mineral Exploration British Columbia’s annual event, Yehl was referring to the evening get-togethers, known for a non-market type of liquidity. But boozy as it might have been, can so much enthusiasm be dismissed?

Roundup 2014 speakers discuss how investors can profit and companies thrive

Near-record attendance and growing optimism characterized
AME BC’s Roundup 2014, “the world’s premier technical
mineral exploration conference.”

Yehl thanked company sponsors who came through despite tough times and noted a near-record crowd of 6,643 people from 37 countries, a possible indication of not-so-tough times ahead. Roundup 2014’s five last speakers further developed that sentiment.

The guardedly optimistic group included Rick Rule, who told investors they can be contrarians or victims: “The choice is yours.” Discussing some potential “fire sale prices” in resource stocks, the chairman of Sprott US Holdings said, “When I talk about coal now people say, ‘Global warming, you’re the culprit.’ I love it when people aren’t merely bored, they’re hostile.”

Uranium, he added, “is cheap. Zinc is cheap. People hate nickel…. Until three or four months ago natural gas was cheap, cheap, cheap.”

Bull markets follow bear markets “as day follows night,” Rule argued. But he warned that although a valuation’s increase might be inevitable, it isn’t necessarily imminent. Profits require time and patience, he emphasized.

Turning the forum’s attention from investors to companies, Silver Wheaton TSX:SLW president/CEO Randy Smallwood said most financing has been coming from various types of debt. The streaming model, he maintained, allows companies to optimize their portfolios through deals on non-core assets. “Seventy percent of silver does not come from silver mines,” he pointed out. About 40% comes from copper mines, another 15% from lead-zinc operations. Those miners “aren’t interested in silver. They’re driven by copper, they’re driven by lead-zinc.”

A new type of deal announced in November offers some juniors additional hope, Smallwood said. Silver Wheaton stepped in earlier than usual to give Sandspring Resources TSXV:SSP an initial $13.5 million to take its Toroparu gold project in Guyana to feasibility.

“If they had gone out and raised $13.5 million in the market, their current shareholders would have lost 33% of the value of that project…. What they did was give us 10% of the gold, if we fund them another $135 million when they get to the point of construction. It’s pretty attractive for their shareholders. It makes a lot of sense for juniors to consider this.”

But with prefeasibility in place, Toroparu was already quite advanced. Exploration geologist Miles Thompson discussed earlier-stage projects and the “bizarre disconnect between markets and the time needed to find and develop mines.”

“Unfortunately the easy stuff has already been found and our job is becoming increasingly harder,” said the director of Reservoir Minerals TSXV:RMC and CEO/chairman of Lara Exploration TSXV:LRA. For all that, Reservoir has been successfully raising money and spending it in Serbia for over 10 years. “We follow the prospect generator business model, which means we work the same way the pharmaceutical industry works, the software industry…. We see ourselves as R&D teams. We build projects, we define targets, we work out projects for mining companies and investors.”

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Graphite Digest — June 8, 2012

June 8th, 2012

June 8, 2012

Big North completes SE Ontario EM Survey, ends IR Agreement

Big North Graphite Corp TSXV:NRT announced June 8 completion of an airborne electromagnetic survey of 1,187 line-kilometres with 100-metre spacing over its Griffith and Brougham properties in southeast Ontario. Preliminary data suggests both properties show conductors, including coincident features to the known graphite showings. Final data is expected next week and will be used to direct ground geophysics, mapping and sampling.

The company also announced it has terminated an investor relations agreement with Trident Financial announced on April 19. The Griffith-Brougham land package covers 6,500 hectares in a region that includes Ontario Graphite’s Kearney Mine and Northern Graphite’s TSXV:NGC Bissett Creek Project.

Read an interview with Big North Graphite President/CEO Spiro Kletas.

Galaxy completes Airborne Surveys of Quebec Graphite Project, approves Name Change

Galaxy Capital Corp TSXV:GXY announced June 7 completion of helicopter-borne electromagnetic and magnetometer surveys on its Buckingham Property in west Quebec. Preliminary results from the 162-line-kilometre survey are expected within three weeks and will be used to direct a program of ground geophysics, prospecting, mapping and sampling.

On June 6, the company announced shareholder approval of a change of name to Galaxy Graphite Corp. Contingent on TSXV approval, the stock symbol will remain the same. The 1,324-hectare Buckingham Property consists of two former mines 40 kilometres east of Ottawa. The host rocks for both deposits are graphitic crystalline marbles, similar to the host stratigraphy at Timcal Graphite & Carbon’s Lac-des-Îles Graphite Mine, the company has stated.

Rare Earth Metals begins Ground EM Survey on NW Ontario Graphite Property

Rare Earth Metals Inc TSXV:RA announced June 7 it has begun line-cutting and a ground electromagnetic survey on its Manitouwadge Graphite Property in northwest Ontario. The company intends to determine the strike length and continuity of graphite zones outlined by an EM survey flown in 1989. Three graphite horizons have been identified so far through historic work and recent trenching. The zones range from four to 12 metres thick with chip samples showing 2.04% to 4.18% carbon. Screen tests on the higher-grade composite sample confirmed the presence of +65 mesh and +35 mesh flake graphite. Additional metallurgical results are pending.

The company has two advanced projects in Ontario and Labrador, with rare earth elements, niobium, beryllium, zirconium and iron ore. The company has also acquired the Coldwell Complex and the Lavergne-Springer REE Prospect, both in north Ontario.

Standard Graphite reports EM Conductors on Quebec Graphite Property

Standard Graphite Corp TSXV:SGH announced June 5 airborne geophysical results from its Kiamika Property in west Quebec. Initial results confirm that surface occurrences are associated with a conductor crossing the entire property over a 3.5-kilometre strike length. A second conductor 750 metres east replicates the first and expands the project’s potential, the company stated.

The 888-line-kilometre TDEM survey included three other properties: Preston, 31 Milles and Notre Dame. Results are pending for those properties and will help determine follow-up work scheduled for later this month. All four properties lie within 90 kilometres of Standard’s flagship Mousseau East Project in the Central Metasedimentary Belt of the Grenville Geological Subprovince. Mousseau East has a 1992 non-43-101 resource estimate showing 598,480 tonnes grading 8.29% carbon proven, 219,450 tonnes grading 8.13% probable and 288,760 tonnes grading 7.85% possible.

Read a feature story about Standard Graphite.

Focus to acquire Brazil Graphite Project from Lara Exploration

Focus Graphite Inc TSXV:FMS and Lara Exploration Ltd TSXV:LRA announced June 4 a letter of intent in which Focus will acquire up to a 60% interest in the Canindé Graphite Project in Ceará State, northeast Brazil. Under the agreement’s first option, Focus may earn a 51% interest by issuing Lara a total of 500,000 shares and spending $2.5 million within three years. Exploration must include an EM survey and 2,000 metres of drilling.

Under the second option, Focus may earn an additional 9% interest by spending a total of $4.5 million within five years, including completion of an additional 5,000 metres of drilling and a positive PEA.

If Focus declines or fails to exercise the second option, the two companies will create a 51/49 joint venture. If Focus exercises the second option, the companies will create a 60/40 JV. Both companies will fund exploration proportionately and the party holding majority interest will be deemed the project operator. If a party’s interest falls to less than 10%, its interest in the JV will be converted to a 2% production royalty.

Canindé is subject to a 1% royalty payable to a third party on gross revenue up to R$750,000 (750,000 Brazilian reais, approximately $369,000) as well as a one-time payment of R$200,000 (approximately $99,000) payable to the third party on completion of a non-NI 43-101-compliant Economic Graphite Reserve Estimate as defined by Brazil’s Departamento Nacional de Produção Mineral.

The 15,615-hectare project hosts 22 surface graphite occurrences discovered by Lara in mid-2011. The occurrences define a 16-kilometre-long graphitic corridor in high-grade metamorphic rocks. Individual graphite occurrences range from less than one metre to 10 metres wide and host grades ranging from 1% or 2% disseminated graphite in paragneiss and schist (mostly flakes), to over 50% graphite in narrow lenses in gneiss, schist, pegmatitic migmatites and brecciated horizons in gneiss. Surface grab samples from 15 of the occurrences show grades ranging from less than 1% up to 42%. The project is accessible by road.

The company’s flagship Lac Knife Graphite Project in northeast Quebec is scheduled for a PEA this month. The company states that it hopes to have offtake agreements and financing to begin mine construction following the PEA.

Read an interview with Focus President/CEO Gary Economo.

Read an interview about Focus’ Kwyjibo REE-Copper Project.

Read a feature story about Focus Graphite.

Energizer, Malagasy report Madagascar Graphite Intersections up to 434m

Energizer Resources Inc TSXV:EGZ and Malagasy Minerals Ltd announced June 4 five graphite intersections on the Molo Deposit of their Joint Venture Property in Madagascar. Intersections came to 434 metres, 295 metres, 220 metres, 150 metres and 51 metres. Core from the five holes has been sent for assaying, with the first results expected within six weeks. Metallurgical analysis of previous Molo samples showed jumbo-flake, +50 mesh graphite at an average purity of 93% carbon which can be liberated through simple crushing. The deposit begins at surface and extends to a vertical depth of over 300 metres, Energizer stated. The company plans an initial resource estimate for the Molo Deposit, which Energizer and engineering partner DRA Mineral Projects are targeting for open-pit production in early 2015.

Energizer holds a 75% interest and acts as operator on the JV Property, which surrounds Energizer‘s wholly owned Green Giant Graphite-Vanadium Property on three sides.

Read an interview with Energizer Resources VP of Business Development Brent Nykoliation.

Read feature stories about Energizer Resources’ vanadium deposit and its graphite deposits.

Canadian Platinum finds Saskatchewan Graphitic Argillite

Canadian Platinum Corp TSXV:CPC announced June 4 the presence of a thick sequence of graphitic argillite on its Peter Lake Copper-Nickel-PGE Project in northeast Saskatchewan. Examination of a 2009 airborne ZTEM survey and historic drillholes found conductors caused by graphitic argillite, the company stated. A sample assay of historic core showed 10.2% carbon and six grab samples from another historic hole averaged 4.5% carbon. Canadian Platinum drilled one of the ZTEM conductors in 2009, which intersected 142 metres of graphitic argillite and terminated in graphitic argillite. This drillhole and historic holes are currently being sampled to determine grades.

The project is North America’s largest mafic/ultramafic complex. The company’s mining claims in the area cover approximately 202,340 hectares.

By Greg Klein

Read previous Graphite Digests here

Disclaimer: Standard Graphite Corp and Focus Graphite Inc are clients of OnPage Media and the principals of OnPage Media may hold shares in those companies.