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Resource Clips

Posts tagged ‘Mineral Mountain Resources Ltd (MMV)’

Week in review

April 12th, 2013

A mining and exploration retrospect for April 6 to 12, 2013

by Greg Klein

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Projects go under, under new Ontario law

“We’re not working in Ontario any longer and, yes, that’s because of these regulations.” Friday’s Toronto Star quoted Wally Rayner, VP of exploration for Mineral Mountain Resources TSXV:MMV, on the provincial Mining Act amendments that took full effect April 1.

Gone is the free entry system. In its place are requirements that companies and individual prospectors file plans with the government for even the earliest-stage work. That’s followed by a minimum 30-day period for public comments. Prospectors and explorers are now specifically required to consult and accommodate aboriginals. “Many find the regulations too onerous for an industry already in dire financial straits,” the Star reported.

A mining and exploration retrospect

Last month, even before the new regs took hold, Solid Gold Resources TSXV:SLD was denied an exploration permit in what the company said “appears to be a politically motivated abuse of power and indicates the unfair political interference that permeates the new exploration regime.” Now trading for a penny, the company has had uneasy relations with a Timmins-region native band.

Last February International Millennium Mining TSXV:IMI backed out of an option on its Hope Lake property, saying “the constraints of Ontario’s modernized Mining Act provided incentive for ending the agreement.”

Mineral Mountain’s Rayner also told the Star that delays jeopardize spending deadlines mandated by flow-through shares. “If the exploration is held up because of consultations or permits, then this whole financing system falls apart,” he said.

The reporter added, “The Ontario Bar Association echoed that concern in a submission to the ministry last year.”

The new act presents problems for natives too. Shawn Batise, executive director of the Wabun Tribal Council, told the Star his group has been overwhelmed with requests for consultation. “Today we got 12 requests, eight yesterday, six the day before, 20 last week…”

As for Quebec …

Over 10,000 people signed a petition expressing concern about possible changes to the province’s royalties structure, the Quebec Mining Association announced on Tuesday. Following a round of talks with industry reps, the Parti Quebecois government now ponders a 5% tax on the gross value of annual mine production and a 30% royalty on yet-to-be-defined “super profits.”

“Quebec has already the highest royalties and corporate tax rates among all the main mineral-producing provinces in Canada,” the QMA stated.

QMA president/CEO Josée Méthot added, “The damage caused to the Quebec economy could be far greater than the benefits derived from an increase in royalties.”

But in Saskatchewan …

One provincial government has actually cut royalties. Saskatchewan’s new system re-evaluates uranium mining costs in a manner that will slash taxes by about $15 million a year, the Saskatoon StarPhoenix reported on Tuesday. Premier Brad Wall discussed the revamped royalties at the offices of Cameco Corp TSX:CCO, where he joined federal politicians to announce a uranium trade deal with India. Canada had banned uranium exports to the country in 1974, after it used a Canadian-made reactor to create plutonium for a nuclear bomb.

Following a recent and similar deal with China, the India agreement “will mean literally billions of dollars worth of sales of Saskatchewan uranium into these two markets,” the StarPhoenix quoted Wall.

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Mineral Mountain director/VP of corporate development Brad Baker on South Dakota’s Holy Terror gold project and its eight former mines

March 22nd, 2013

…Read More

Their legacy lives on

March 14th, 2013

Mineral Mountain believes South Dakota’s past-producers have more gold to offer

by Greg Klein

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South Dakota’s Holy Terror project comes with eight past-producing mines and lots of history. Mineral Mountain Resources TSXV:MMV, on the other hand, is a newcomer to the property. But after assembling the land package last year, the company believes it has potential far beyond previous operations. Phase II drilling, with both infill holes and down-dip expansion, brought more high grades in gold assays released March 14. Highlights include:

Mineral Mountain believes South Dakota’s past-producers have more gold to offer

Drilling shows South Dakota’s gold rush
history left yellow metal unearthed.

  • 4.1 grams per tonne gold over 12.19 metres
  • 10.36 g/t over 3.93 metres
  • 4.84 g/t over 9.49 metres
  • (including 10 g/t over 3.2 metres)
  • 5.11 g/t over 4 metres
  • 3.95 g/t over 5.08 metres
  • 8.39 g/t over 2.03 metres
  • 4.78 g/t over 3.76 metres
  • 1.41 g/t over 13.09 metres
  • (including 2.81 g/t over 4.95 metres)
  • 4.1 g/t over 4.29 metres
  • (including 6.27 g/t over 2.37 metres).

True widths weren’t provided. The interval closest to surface began at a down-hole depth of 46 metres while the deepest ended at 231 metres down hole.

The March 14 results come from 16 holes totalling 2,698 metres at the project’s former Bismarck mine area. Still pending are assays for two more holes, 200 metres and 500 metres southeast, at two other former mines. Phase I, which wrapped up late last year, tested Bismarck as well as three other mines with both exploration drilling and confirmation of historic work dating to the 1980s and ’90s.

“There are approximately 100 historic, non-43-101 holes on the property, so we had tremendous confidence coming in,” Mineral Mountain director/VP of corporate development Brad Baker tells ResourceClips. “Our drilling has supported that confidence and our theory that these deposits could run much deeper than ever previously known. The past mining was shallow. We believe these deposits can be very deep-seated, akin to the Homestake mine along that belt.”

Located 55 kilometres northwest of Holy Terror, Homestake produced about 40 million gold ounces before its 2002 shutdown. Mineral Mountain moved into the neighbourhood last May when it optioned 75% of a property with the privately held Holy Terror Mining Co. Through purchase and claim-staking, the partners have since expanded the property to a 1,600-hectare package comprising eight past-producers.

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Mineral Mountain President Nelson Baker on Ontario gold assays of 45.9 g/t over 1.4m

October 5th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningMineral Mountain Resources Ltd TSXV:MMV announced assays from its Straw Lake project in northwestern Ontario. Results include

1.4 g/t gold over 1 metre
1.4 g/t over 14 metres (including 2.8 g/t over 4 metres)
45.9 g/t over 1.4 metres
1.2 g/t over 1 metre
3.2 g/t over 1.4 metres (including 13.5 g/t over 0.3 metres)
1.4 g/t over 2 metres
2.4 g/t over 1 metre
2.7 g/t over 2 metres
27.5 g/t over 1 metre

President/CEO Nelson Baker tells, “We’d been looking at the area since 2006 when we acquired the Straw Lake project. We liked the area because it’s at the intersection of three major regional breaks or faults. Within that area, our property package consists of an area four kilometres wide by eleven kilometres long. It hosts three different styles of gold mineralization. One is the mine horizon, which is typically a Red Lake or Kirkland Lake-style gold occurrence, where you tend to get high grade. Straw Lake was mined between 1938 and 1941. The old-timers went down on a vertical shear zone that was about a metre wide, and the grades were quite high—anywhere between 0.35 ounces per ton to 0.4 ounces per ton—so the miners focused on that one-metre zone. They put a shaft down to 723 feet and established several levels, and they started production on the first couple of levels. About that time, they needed to get extra electrical power to go deeper with their mining operations, and the Second World War broke out, so they had to stop mining.

It’s early stages yet, but we’re really optimistic that with aggressive drilling, we can define a high-grade resource.—Nelson Baker

“What we liked about that horizon,” Baker continues, “is that it had a lot of similarities to the Hemlo deposit to the east of Thunder Bay. The Hemlo deposit’s a classic one—where it occurs in a sericite schist—and the geology here is very similar. In addition to that, there’s another gold-style occurrence, called the Pine Centre gold mineralization. It’s in a granodiorite which, geologically, is quite similar to the Hammond Reef deposit in Atikokan. Hammond Reef is now owned by Osisko Exploration Ltd TSX:OSK, and their latest resource estimate was 6.7 million ounces gold [at a 0.3 g/t cut-off]. We see a similar potential in the Pine Centre zone here on the Straw Lake property. It’s a shear zone that’s several kilometres long. We’ve now been drill-testing it for about 400 metres, and we’ve got several holes into it.

“The release we put out today had a high-grade intersection of 45.9 g/t gold over 1.4 metres. That’s a classic Red-Lake style gold value. We’re right on a major structure. It’s early stages yet, but we’re really optimistic that with aggressive drilling, we can define a high-grade resource. The resource estimate wouldn’t come until 1Q 2012.”

Baker concludes, “The Pine Centre comes up to surface; there’s no stripping ratio, and the holes are all shallow. We knock off a drill hole a day, so it is really quick to advance the project. Look for frequent, timely news releases on that. I feel that we have an above-average chance of defining a substantial gold resource on the property.”

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Brad Baker
Director, VP Corporate Development

by Ted Niles