Tuesday 6th December 2016

Resource Clips


Posts tagged ‘Lundin Mining Corp (LUN)’

Conflict cobalt uncertainty continues to haunt consumer industries

October 3rd, 2016

by Greg Klein | October 3, 2016

Nine months after issuing a report on cobalt produced by child labour, Amnesty International says major manufacturers still can’t guarantee conflict-free sources.

The organization’s January report focused on the Democratic Republic of Congo, where children work in dangerous conditions up to 12 hours a day, making between $1 and $2 a day. “In 2014 approximately 40,000 children worked in mines across southern DRC, many of them mining cobalt, according to UNICEF,” Amnesty noted.

Conflict cobalt uncertainty continues to haunt consumer industries

DRC children sorting ore.
(Photo: Amnesty International/Afrewatch)

“Frankly companies owe it to their consumer to be transparent about their supplies and to map out their supply chains so that they know where it’s coming from,” Amnesty researcher Mark Dummett told Thomson Reuters Foundation, the charitable arm of the Thomson Reuters news agency. He maintains there’s no guarantee that the lithium-ion batteries in brand name consumer items, including vehicles, phones, computers and other devices, aren’t tainted with conflict cobalt.

Oddly enough, U.S. laws barring conflict minerals don’t cover cobalt. The Amnesty report stated at least half the world’s supply originates in the DRC, with about one-fifth of the national total coming from artisanal mines.

Benchmark Mineral Intelligence attributes over 60% of global output to the DRC.

While several manufacturers said they were scrutinizing their sources, Dummett countered that they weren’t disclosing what efforts they made to exclude child labour from their supply chains.

Last month Industrial Minerals reported that RealLi Research analyst Mo Ke told a Beijing conference there would “probably be a shortage next year” of the commodity. “Some commentators, such as Ian Pringle, managing director of Bayrock Materials and Pacific Basin Bluestone, thinks that this is an understatement,” IM added.

Already suffering from civil and political unrest, the DRC was hit by corruption allegations last week from the U.S. Securities and Exchange Commission. An SEC lawsuit claims that a DRC partner of the Och-Ziff Capital Management Group bribed government officials with more than US$100 million over 10 years.

An anonymous source alleged the partner was Dan Gertler, Bloomberg reported. “Glencore and Gertler’s Fleurette Group are partners in the $1.8-billion Mutanda copper and cobalt mine in the African country, with Glencore owning 69% and Fleurette the remainder,” the news agency added. Gertler and Fleurette denied allegations of wrongdoing.

In May Freeport-McMoRan NYSE:FCX announced a definitive agreement to sell its stake in the DRC’s Tenke copper-cobalt mine to China Molybdenum for US$2.65 billion and a contingent consideration of up to US$120 million. But a Bloomberg dispatch from last month stated that Gécamines, the DRC’s state-owned mining company and a co-owner of Tenke, said any decision by Lundin Mining TSX:LUN to divest its 24% share of the mine could threaten the deal.

Download the Amnesty International report.

Gwen Preston looks back on PDAC and an exciting week

March 15th, 2016

by Gwen Preston | SmallCapPower.com | March 15, 2016

What a week it was! Another PDAC is in the books. And a good one. It was undoubtedly small—fewer booths, attendance of just 22,000 compared to an average of 29,000 over the last five years—but the buzz was inarguably better than last year.

Gwen Preston looks back on PDAC and an exciting week

Mining deals flowed with PDAC buzzing in the background.

I comment on my PDAC impressions after going through the mining news events of the week. As usual, news flow ramped up during the world’s biggest mining conference so there was lots to talk about, and all I got to were the four biggest stories.

Others also deserve comment. Canamex Resources (TSXV:CSQ), for example, published a PEA showing how they could turn their Bruner gold project into a 46,500-ounce-per-year producer for a capital cost of just US$33.4 million. If built, the mine should be able to generate a 39% after-tax internal rate of return and operate for six years. It would be a simple oxide heap leach operating on patented land, which eases permitting considerably.

Those are pretty good numbers. The asset and company are small for my tastes but Canamex deserves credit: it not only survived the bear market but advanced its asset to the point where it supports an economic PEA. If the team can now establish a path to production, starting with accessing the cash needed to take the next step, its share price may well respond. This is, after all, a simple gold project in Nevada, one of the most desirable mining jurisdictions in the world.

That’s one example of interesting news. There was no shortage: companies arrived at PDAC armed with new drill results, property deals, exploration plans, financings and resource estimates.

Deal flow was the most exciting part. I go through three new deals below (Silver Standard buying Claude, Endeavour buying True Gold and Lundin moving on Timok), but financings were also hot. Pretium raised US$130 million, Franco pulled in an oversubscribed US$920 million and Kinross raised US$250 million. I like to see money moving. This sector seizes up otherwise.

No wonder PDAC-ers were pumped. Or cautiously optimistic, in the very least…. Continue reading this article on SmallCapPower.com.

October 9th, 2014

David Morgan’s secret to being grateful, even at $17 silver Streetwise Reports
How important is a social licence to operate? Geology for Investors
Infographic: The 15 greatest gold heists of all time GoldSeek
600 million reasons to keep your eyes on India VantageWire
Lundin Mining, Franco-Nevada in Chilean copper-gold mine deal Stockhouse
Video: Flinders CEO discusses new graphite mine, Big North acquisition Industrial Minerals
The last resort when monetary policy fails Equedia

October 8th, 2014

How important is a social licence to operate? Geology for Investors
Infographic: The 15 greatest gold heists of all time GoldSeek
600 million reasons to keep your eyes on India VantageWire
Lundin Mining, Franco-Nevada in Chilean copper-gold mine deal Stockhouse
Catalyst check: Natural resources watchlist at three months Streetwise Reports
Video: Flinders CEO discusses new graphite mine, Big North acquisition Industrial Minerals
The last resort when monetary policy fails Equedia

October 7th, 2014

600 million reasons to keep your eyes on India VantageWire
Lundin Mining, Franco-Nevada in Chilean copper-gold mine deal Stockhouse
Catalyst check: Natural resources watchlist at three months Streetwise Reports
Opportunities in nickel GoldSeek
Video: Flinders CEO discusses new graphite mine, Big North acquisition Industrial Minerals
An introduction to alteration Geology for Investors
The last resort when monetary policy fails Equedia

Salazar completes $3M Private Placement

February 3rd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningSalazar Resources Limited TSXV:SRL announced the completion of $3 million private placement consisting of 6 million units at a price $0.50 per unit. By taking up 80% of the financing Lundin Mining TSX:LUN has earned a 15.4% interest in Salazar. Silvercorp Metals TSX:SVM also participated in the private placement to maintain their pro-rata interest of 10.7%. The proceeds of the financing will be used to fund Salazar’s exploration properties and for general working capital.

CEO Fredy Salazar commented, “Lundin Mining Corporation is world-renowned for their successes in identifying and advancing high-quality mineral development projects through to production. We look forward to working with this experienced and highly regarded group. Salazar management believes that the new interest and investment by Lundin, as well as Silvercorp’s continued investment and support is a testament to the quality and potential of the El Domo project.”

View Company Profile

Contact:
Salazar Resources Limited
Investor Relations
647.925.8981

by Ted Niles

Barrick offers $7.3 billion for Equinox Minerals

April 25th, 2011

The Globe and Mail reported April 25 that Barrick Gold Corp NYE:ABX has offered to buy Equinox Minerals Limited TSX:EQN for $7.68 billion in cash. Equinox investors will receive $8.15 per share—a 16% premium on the recent hostile takeover bid by China’s Minmetals Resources Ltd. It remains to be seen whether Minmetals will continue a bidding war, but Equinox has abandoned its hostile takeover attempt of Lundin Mining Corporation TSX:LUN.

Barrick President/CEO Aaron Regent commented, “It is very rare that assets like this come on the market. Most major copper mines tend to be tied up by major producers. We are a stronger company as a result and we should have a stronger growth profile in terms of total metal produced.”

Edgewater VP Ryan King on Spain Gold Assays of 10.72 g/t over 17m

February 2nd, 2011

“We bought this asset from Lundin Mining Corporation TSX:LUN last year. Lundin acquired it from Rio Narcea Gold Mines Ltd, which was one of the main exploration development players in Spain. Lundin acquired Rio Narcea primarily for the Aguablanca Mine in Spain along with a bunch of other gold assets. We acquired Corcoesto from Lundin for $8 million. At that time it had about 300,000 ounces gold measured and indicated. So we commissioned an updated resource calculation by Alan Noble. He had done the original resource calculation at a $350-gold price in 2006. So we started the new resource calculation using a bit more of an up-to-date gold price. Incorporating some additional drill holes we’d done, we came up with about 315,000 ounces in measured and indicated but with an additional 880,000 ounces in inferred, making that $8-million acquisition cost extremely low on a per-ounce basis.

“We kicked off a 12,000-metre drill program in October last year, and we saw some opportunities where there looked like there was open-ended at depth and along east and west strike lengths. We have been drilling since then doing some infill and step-out, and today’s drill hole was a nice 100-metre step-out hole with great gold intercepts. It looks like we can start to build on the known resource now. We’ve got three drills turning there now—this is on our three exploitation sessions (or licences) that are permitted for small scale mining. It was thought by Rio Narcea to be a small scale operation that was going to be heap-leachable. But today, with the size of the resource growing, and also with the metallurgical testing that they’d done in the past that showed heap-leach was only about a 60% recovery, we thought it probably better to look at seeing how much bigger we can get and then look at a conventional milling operation.

“We’ve got an experienced team, in-country, that is native to Spain—that previously worked with Rio Narcea on a project—that knows this project extremely well. A great team. Already they’ve had extensive meetings with local government officials.

“Galicia is an autonomous region. The main town is about 35 kilometres away—with a population of 250,000. We’re close to tide water. We’ve got power and roads right over top of the concession. And on the permitting front we’re not going to be faced with any big opposition, largely due to the fact that this is an agricultural area; it’s got no cathedrals, no heritage on site that we need to worry ourselves about. And Spain is obviously very pro-development right now with the state of the economy and the unemployment rates. So we’re pretty encouraged with this development and think it’s only going to get better.

“The plan is, first, to finish the drill program, but also to complete a new up-to-date resource calculation. And we’re hoping to have that done before the end of the first half of this year. At that point in time, depending on how things develop, we will look to commence a scoping study, then move into feasibility from there. I think this year in going to be pretty busy with a lot of developments on the project.”

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Edgewater reports Spain Gold Assays up to 10.72 g/t over 17m

January 31st, 2011

Edgewater Exploration Ltd TSXV:EDW announced results from its Corcoesto Gold Project in Galicia, Spain. Assays include 1.6 g/t gold over 5 metres, 0.6 g/t over 23.4 metres, 4.27 g/t over 6 metres, 1.81 g/t over 13.3 metres (including 14.85 g/t over 1.1 metres), 0.79 g/t over 26 metres, 1.71 g/t over 8.1 metres, 1.51 g/t over 43.4 metres (including 14.95 g/t over 1 metre) and 10.72 g/t over 17 metres (including 148.5 g/t over 1.1 metres).

VP Ryan King tells ResourceClips.com, “We bought this asset from Lundin Mining Corporation TSX:LUN last year. Lundin acquired it from Rio Narcea Gold Mines Ltd, which was one of the main exploration development players in Spain. Lundin acquired Rio Narcea primarily for the Aguablanca Mine in Spain along with a bunch of other gold assets. We acquired Corcoesto from Lundin for $8 million. At that time it had about 300,000 ounces gold measured and indicated. So we commissioned an updated resource calculation by Alan Noble. He had done the original resource calculation at a $350-gold price in 2006. So we started the new resource calculation using a bit more of an up-to-date gold price. Incorporating some additional drill holes we’d done, we came up with about 315,000 ounces in measured and indicated but with an additional 880,000 ounces in inferred, making that $8-million acquisition cost extremely low on a per-ounce basis.

“We kicked off a 12,000-metre drill program in October last year, and we saw some opportunities where there looked like there was open-ended at depth and along east and west strike lengths,” continues Ryan. “We have been drilling since then doing some infill and step-out, and today’s drill hole was a nice 100-metre step-out hole with great gold intercepts. It looks like we can start to build on the known resource now. We’ve got three drills turning there now—this is on our three exploitation sessions (or licences) that are permitted for small scale mining. It was thought by Rio Narcea to be a small scale operation that was going to be heap-leachable. But today, with the size of the resource growing, and also with the metallurgical testing that they’d done in the past that showed heap-leach was only about a 60% recovery, we thought it probably better to look at seeing how much bigger we can get and then look at a conventional milling operation.

“We’ve got an experienced team, in-country, that is native to Spain—that previously worked with Rio Narcea on a project—that knows this project extremely well. A great team. Already they’ve had extensive meetings with local government officials.

“Galicia is an autonomous region. The main town is about 35 kilometres away—with a population of 250,000. We’re close to tide water. We’ve got power and roads right over top of the concession. And on the permitting front we’re not going to be faced with any big opposition, largely due to the fact that this is an agricultural area; it’s got no cathedrals, no heritage on site that we need to worry ourselves about. And Spain is obviously very pro-development right now with the state of the economy and the unemployment rates. So we’re pretty encouraged with this development and think it’s only going to get better.

“The plan is, first, to finish the drill program, but also to complete a new up-to-date resource calculation. And we’re hoping to have that done before the end of the first half of this year. At that point in time, depending on how things develop, we will look to commence a scoping study, then move into feasibility from there.” Ryan concludes, “I think this year in going to be pretty busy with a lot of developments on the project.”

View Company Profile

Contact:
Ryan King
Vice President
604.628.1012

by Ted Niles