Saturday 14th December 2019

Resource Clips


Posts tagged ‘mexico’

November 17th, 2014

Osisko Gold to buy Virginia Mines for $476 million VantageWire
Gold demand declines to five-year low globally but rises in India NAI 500
Swiss regulator fines UBS for precious metals price manipulation SilverSeek
The emerging Guerrero Gold Belt of Mexico Geology for Investors
The Swiss gold initiative and why it may affect bullion prices Stockhouse
Gold, economic theory and reality: A conversation with Alan Greenspan Streetwise Reports
Selective financing to snag pace of mine development Industrial Minerals
The last resort when monetary policy fails Equedia

November 14th, 2014

Gold demand declines to five-year low globally but rises in India NAI 500
Swiss regulator fines UBS for precious metals price manipulation SilverSeek
The emerging Guerrero Gold Belt of Mexico Geology for Investors
The Swiss gold initiative and why it may affect bullion prices Stockhouse
Gold, economic theory and reality: A conversation with Alan Greenspan Streetwise Reports
Nobody mourns death of QE as treasuries prove insatiable VantageWire
Selective financing to snag pace of mine development Industrial Minerals
The last resort when monetary policy fails Equedia

November 13th, 2014

Swiss regulator fines UBS for precious metals price manipulation SilverSeek
The emerging Guerrero Gold Belt of Mexico Geology for Investors
China gold buying means price floor to Standard Chartered NAI 500
The Swiss gold initiative and why it may affect bullion prices Stockhouse
Gold, economic theory and reality: A conversation with Alan Greenspan Streetwise Reports
Nobody mourns death of QE as treasuries prove insatiable VantageWire
Selective financing to snag pace of mine development Industrial Minerals
The last resort when monetary policy fails Equedia

November 12th, 2014

Swiss regulator fines UBS for precious metals price manipulation SilverSeek
The emerging Guerrero Gold Belt of Mexico Geology for Investors
China gold buying means price floor to Standard Chartered NAI 500
The Swiss gold initiative and why it may affect bullion prices Stockhouse
Gold, economic theory and reality: A conversation with Alan Greenspan Streetwise Reports
Nobody mourns death of QE as treasuries prove insatiable VantageWire
Selective financing to snag pace of mine development Industrial Minerals
The last resort when monetary policy fails Equedia

November 11th, 2014

Rick Rule: We’re locked in a war that we can’t help but win GoldSeek
The emerging Guerrero Gold Belt of Mexico Geology for Investors
China gold buying means price floor to Standard Chartered NAI 500
The Swiss gold initiative and why it may affect bullion prices Stockhouse
Gold, economic theory and reality: A conversation with Alan Greenspan Streetwise Reports
Nobody mourns death of QE as treasuries prove insatiable VantageWire
Selective financing to snag pace of mine development Industrial Minerals
The last resort when monetary policy fails Equedia

November 10th, 2014

The emerging Guerrero Gold Belt of Mexico Geology for Investors
China gold buying means price floor to Standard Chartered NAI 500
The Swiss gold initiative and why it may affect bullion prices Stockhouse
Gold, economic theory and reality: A conversation with Alan Greenspan Streetwise Reports
Nobody mourns death of QE as treasuries prove insatiable VantageWire
Selective financing to snag pace of mine development Industrial Minerals
The gold manipulation debate, if you can call it that GoldSeek
The last resort when monetary policy fails Equedia

Graphite M&A: Flinders to take over Big North, acquire Mexican past-producer

September 2nd, 2014

by Greg Klein | September 2, 2014

Two companies focused on former graphite mines would become one under a binding letter agreement announced September 2. Flinders Resources TSXV:FDR, which last month began production at its Woxna mine in Sweden, intends to acquire Big North Graphite TSXV:NRT, which holds the El Tejon project in Mexico. Like Woxna, El Tejon is a past-producing flake graphite mine that was placed on care and maintenance.

Flinders to take over Big North, acquire Mexican past-producer

A mine and mill acquired last May brought
Big North to the attention of Flinders Resources.

Flinders is credited with first place in graphite’s race to production but was actually second to Big North, which has been test-mining and selling amorphous graphite from its 11-hectare, Nuevo San Pedro 50/50 joint venture in Mexico’s Sonora state. The company also holds graphite properties in Ontario and Quebec.

But Flinders has its eye on Big North’s El Tejon, a 500-hectare property with an open pit mine and mill in southern Mexico that’s been on care and maintenance since 2002. The mine has produced graphite in large, medium and fine flakes. An historic, non-43-101 report from 1990 attributed grades of 3.54% and 3.79% graphitic carbon (Cg) respectively to two deposits.

Big North closed that acquisition in May for US$1.7 million, 12.5 million shares and a 3% net profits interest. The company stated it expected the project to be fully permitted within six months. An estimated US$2.25 million would refurbish the mill’s first line, Big North added.

Flinders has an opening ceremony planned for its central Sweden project this month, after re-starting operations in early August. The open pit and mill had been on care and maintenance since 2001. The project has measured and indicated resources totalling 2.8 million tonnes averaging 10.7% Cg. Flinders hopes to increase those numbers by proving up historic resources.

The deal would swap one Flinders share for nine Big North shares. Among other conditions, the latter company’s outstanding debentures must be redeemed or converted to Big North shares. The parties plan to complete due diligence by October 6. Big North shareholders will vote by December 15. The company faces a $500,000 break fee if it pulls out under certain circumstances.

Should all go to plan Big North would become a wholly owned subsidiary of Flinders, anticipated to be run by the bigger fish’s management.

Read more about Flinders Resources.

Read about Tesla Motors’ prospects for graphite.

Flinders first in graphite’s race to production

August 6th, 2014

by Greg Klein | August 6, 2014

Announcing its first graphite concentrate from the Woxna mine in central Sweden, Flinders Resources TSXV:FDR claims first place in the Canadian-listed juniors’ quest for flake graphite production. The company’s advantage came from a past-producer that had been on care and maintenance since 2001.

In an August 6 announcement Flinders said it began operations last month, has completed wet commissioning and produced its first graphite concentrate.

Flinders first in graphite’s race to production

“All is on track for full commissioning, with customers now coming to site to confirm our capabilities and discuss expanded supply contracts,” said president/CEO Blair Way.

Describing the operation as “a sustainable European alternative to Chinese supply,” he added, “Now that we have the confidence in our facility and product, we are working to expand our resource base through proving up our historical resources.”

While announcing its first sales contract last May, Flinders stated it was developing a European sales and distribution network. The company plans a formal opening ceremony for Woxna next month.

Flinders overtook another past-producer held by the privately owned Ontario Graphite. Having missed a 2013 re-start target, the company now says its Kearney mine, 250 kilometres north of Toronto, will re-open sometime this year and be fully operational in 2015. “At full capacity, Ontario Graphite projects annual production of 20,000 tonnes of high-quality (95% to 97% Cg) large flake graphite mineral concentrate.”

But Flinders’ production followed that of the UK’s only listed graphite company, Stratmin Global Resources AIM:STGR, which began commercial production at its Loharano mine in Madagascar last April. The company produced 195 tonnes of +90% graphitic carbon (Cg) during Q2 and expects to raise that to 300 tonnes per month in September, with a longer-range forecast of 1,000 tonnes per month.

One junior that outpaced everyone—albeit in a different contest—was Big North Graphite TSXV:NRT. The company has been test-mining an 11-hectare amorphous past-producer in Mexico’s Sonora state. Big North sells semi-processed run of mine from the 50/50 joint venture and from product purchased from other regional mines.

Read more about graphite’s front-runners.

Financing the ‘weird stuff’

April 3rd, 2014

Industrial minerals explorers gain profile as security of supply becomes increasingly crucial

by Greg Klein

Precious and base metals need little if any introduction. But, according to Secutor Capital Management Corp’s Arie Papernick, investors are often “at a loss for the unconventional weird stuff”—the subject of the Industrial Minerals International Congress and Exhibition held in Vancouver from April 1 to 3. Addressing the April 2 Finance Session, Papernick called the commodities “a play on the end product,” often of new technologies like electric cars and renewable energy. But the end users are usually private. “So where do you go for exposure?” he asked. “You have to go to the explorers.”

The two-hour session brought five of those explorers together with potential investors, and not only of the retail and institutional categories. As some of the companies have found, manufacturers are showing increasing interest in the people who can help attain reliable, secure sources of the stuff they need to make an amazingly diverse range of products that we take for granted.

Industrial minerals explorers gain profile as security of supply becomes increasingly crucial

Commerce Resources TSXV:CCE director Chris Grove explained that a somewhat traditional scenario has Asian interests backing a project around the pre-feasibility stage with a joint venture or loan guarantee. “What we’re seeing with this conflict minerals legislation is interest coming from manufacturers who have a listing on a U.S. exchange, and I’m talking about companies that are household names.”

The Dodd–Frank Act “holds 6,000 companies accountable as to where they procure their three Ts [tantalum, tungsten and tin], and whether they buy these from people who have committed the worst and longest-running record of human rights abuses on the planet in the last 20 years.”

That gives Commerce a strong jurisdictional advantage over countries like the Democratic Republic of Congo. In British Columbia the company has taken its Upper Fir tantalum-niobium deposit to a preliminary economic assessment. In Quebec Commerce advances its Ashram rare earth deposit towards pre-feasibility.

Attending a panel discussion were representatives from the five explorers, each with “its own unique strength or niche,” said moderator Derek Hamill, head of research for Zimtu Capital TSXV:ZC. Each company offered a different perspective on financing.

Alan Young, an engineer and director of frac sand explorer Rainmaker Mining TSXV:RMG, portrayed tough environmental regulations as an investment advantage. The U.S. has “a lot of one- or two-man companies that aren’t regulated as clearly as we might be here in Alberta and British Columbia,” he said. Canada’s professionalism achieves “a quality well with very, very low risk to the environment.”

Explorers’ challenges can differ with each type of mineral. Big North Graphite TSXV:NRT president/CEO Spiro Kletas said his commodity requires “a race to the finish line. It’s not like gold, where there’s always a buyer waiting. If you don’t have a buyer, you’re stuck with mountains of graphite.”

Consequently the company aims to “pick up past producers with low capital needed to re-start and get product to market in near future.” Big North is already test-mining and selling amorphous graphite from a small JV in Mexico. The revenue means “we’re not quite at the mercy of markets that a pure exploration play would be.”

When asked to account for his commodity, Prima Fluorspar TSXV:PF president/CEO Robert Bick points to end products as diverse as aluminum, Gore-Tex, refrigerants and pharmaceuticals. “We wouldn’t have the quality of life that we have without fluorspar—it’s simply not possible.”

Another atypical story, Prima began as an early-stage explorer focused on the Liard project in northern B.C. Then the company attracted the attention of multi-billion-dollar fund manager Firebird. As owner of the Delgerkhan past-producing fluorspar mine in Mongolia, “Firebird came to us with several objectives,” Bick said. “They wanted to join a company with a fluorspar asset and a listing on a recognized exchange.”

We wouldn’t have the quality of life that we have without fluorspar—it’s simply not possible.—Robert Bick, president/CEO of Prima Fluorspar

The two signed a letter of intent which would result in a reverse takeover while Prima acquires Delgerkhan. But along with its exchange listing, Prima brings heavy-hitting technical expertise. That includes Michel Robert, “probably one of the best mining engineers in the world, who has a close relationship with us, a lot of experience with industrial minerals on the metallurgical side and the engineering side, and has rehabilitated 10 mines in his life,” said Bick. “We actually took [Firebird’s] plan, ripped it inside out and told them what they really had.”

What they found was the former Soviet-era mine and its records “are first rate,” he added. In a country with something like 129 fluorspar deposits, Delgerkhan is “probably the foremost fluorspar mine in Mongolia.”

With 15 uranium properties in Saskatchewan’s Athabasca Basin, Lakeland Resources TSXV:LK might have a portfolio that exceeds its budget. But “most of the properties have an awful lot of historic data,” said corporate communications officer Roger Leschuk. Money spent by previous companies helps focus priorities. Lakeland also likes the JV model, having so far brought in Star Minerals Group CSE:SUV and Declan Resources TSXV:LAN as partners on different projects.

Declan’s $1.25-million first-year spending commitment has already accelerated work on their drill-ready Gibbon’s Creek project. Exercising a four-year option to earn 70% would entail Declan spending $13 million. Lakeland, meanwhile, keeps its eyes open for other potential partners for other projects.

The Industrial Minerals Finance Session drew “quite an interesting audience,” said Zimtu president Dave Hodge. “We have people from all over the world that are involved in what people consider unusual commodities—that’s about half the room. The other half of the room are people who are involved in financing exploration on a global basis.” But the end users, Hodge emphasized, “are much more dependent than they realize” on explorers for consistency and security of supply.

Disclaimer: Zimtu Capital Corp, Lakeland Resources Inc, Prima Fluorspar Corp and Commerce Resources Corp are clients of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in those companies.

Inescapable but obscure

March 27th, 2014

Industrial minerals, their uses and opportunities, are the topic of an April 2 Vancouver conference

by Greg Klein

Industrial minerals manage to be inescapable but obscure. Like base metals, and much more so than precious metals, they’re all around us. If they weren’t, our lives would be very different. Yet investors and even end users often show little awareness of the process of finding and extracting these commodities. Organizers of an April 2 conference in Vancouver hope to change that.

The free event is part of the Industrial Minerals International Congress and Exhibition, this year celebrating its 40th anniversary in Vancouver from April 1 to 3. As usual the event brings together industry leaders, often end users who are experts in their own niche markets. A new feature, the April 2 Finance Session, “will bring financiers as well as end users together with exploration companies,” says one of the organizers, Zimtu Capital TSXV:ZC president Dave Hodge.

Consider the car, bike or transit vehicle you likely use to get around. Apart from the better known metal alloys, a number of other minerals are used to manufacture its various components. Consider the additional minerals used just to enable the manufacturing process—to build the plants, refineries, refractories, tools, machinery, computers. Consider the minerals used to find, obtain and transport those commodities.

Industrial minerals, their uses and opportunities, are the topic of an April 2 Vancouver conference

So many of the products we take for granted
rely on little-known commodities for their manufacture.

Or start all over again with a different type of product, from necessities like food, clothing and communications to luxuries like entertainment. They depend on an awful lot of industrial minerals.

“For the most part they’re considered critical commodities, in that supply is fairly tight,” explains Hodge. “In general they rarely have practical substitutes.”

According to Zimtu head of research Derek Hamill, “One of the fundamental differences between base metals or energy metals versus industrial minerals is the exchange. Usually copper will trade on a major exchange so you can follow the pricing. Oil is very similar but the price for commodities in the industrial sector is opaque. So in this session we’re trying to show people some of the commodities and their potential. I think they’ll be surprised, actually.”

Hodge adds, “As the global commodity scene tightens, it’s more important for companies that buy industrial minerals, as well as investors, to understand exploration.”

As a prospect generator, Zimtu’s actively involved in matching exploration companies with properties, often involving relatively obscure commodities, and helping build those companies. But ask Hodge if end users understand the exploration process and he laughs out loud. “Absolutely not!” he exclaims. “The two businesses are so different. In many respects industrial minerals users follow very traditional business formats where they try to make money on every transaction. Of course that’s very, very different from mineral exploration and it’s challenging for either of those two sides to understand completely how the other side operates.”

Chaired by Laura Syrett, prices editor for the authoritative journal Industrial Minerals, the Finance Session features a keynote speech by Arie Papernick of Secutor Capital Management Corp’s Investment Banking department. Hamill moderates a panel discussion featuring representatives of five companies pursuing different minerals. An informal networking opportunity follows.

“The panel will discuss topics including current developments and potential growth factors,” Hamill says. “We’ll also discuss challenges like how to calculate the net asset value of a project in an opaque pricing market and the risks people face. We’ll look at the progress of individual projects, potential end users, financing and other subjects.”

Hamill notes some growing awareness among end users already. “Especially with conflict minerals legislation in the U.S., there’s more concern about where supply comes from,” he says. “There’s security of supply issues too, when sources come from a country like China.”

Hodge sees the event offering synergies for explorers, investors and end users who can “learn how to secure a more steady supply of the very minerals they grow their business with.”

Among the companies present, Prima Fluorspar TSXV:PF has an early-stage project in northern British Columbia and an LOI to acquire the Delgerkhan mine in Mongolia, a past-producer with near-term potential.

Especially with conflict minerals legislation in the U.S., there’s more concern about where supply comes from. There’s security of supply issues too, when sources come from a country like China.—Derek Hamill, head of research for Zimtu Capital

Commerce Resources TSXV:CCE has advanced its Upper Fir tantalum-niobium deposit in southeastern B.C. to the preliminary economic assessment stage and is moving its Ashram rare earth deposit in Quebec’s Labrador Trough towards pre-feasibility.

Canadian Metals CSE:CME focuses on high-purity silica sand properties in B.C. and Quebec. Big North Graphite TSXV:NRT is test-mining and selling amorphous graphite from a joint venture in Mexico and holds flake graphite properties in Mexico and Canada.

Lakeland Resources TSXV:LK holds interests in 15 Saskatchewan uranium properties, one of them showing surface boulder samples grading up to 4.28% uranium oxide (U3O8) and some of the Athabasca Basin’s highest radon readings.

Among the conference sponsors is the Canadian Securities Exchange. James Black, VP of listings development, says that Hodge is “very passionate about this space, he thinks there’s a ton of potential in it and we’d like to be alongside those prospects letting them know what we’re doing.”

“We’re happy to look at all sectors but industrial minerals is an area that’s gaining more interest, so we like to be where the interest is. We like to support Vancouver and be front and centre when these things happen.”

The fact that Industrial Minerals chose Vancouver for its congress “is very significant,” says Hodge. “At this time in particular, with commodities in general being on the low end of the supply scale, there’s a need for exploration of all kinds of minerals, including industrial minerals. Vancouver is essentially the global centre of exploration.”

The Industrial Minerals Finance Session takes place April 2, from 3:00 to 5:00 p.m., at the Sheraton Wall Centre in Vancouver. Refreshments and informal networking follows. For free attendance, RSVP to Matt Sroka at matt@zimtu.com.

Disclaimer: Zimtu Capital Corp, Lakeland Resources Inc, Prima Fluorspar Corp and Commerce Resources Corp are clients of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in those companies.