Saturday 24th August 2019

Resource Clips


Posts tagged ‘molybdenum’

Update: 92 Resources explores polymetallic potential of Quebec’s James Bay region

July 8th, 2019

by Greg Klein | updated July 8, 2019

Lithium, gold, copper and molybdenum are among the goals of a program now underway at 92 Resources’ (TSXV:NTY) Corvette-FCI project. A four-person crew expects to spend three to four weeks on the property, which consists of 92’s 100%-held Corvette claims as well as the FCI-East and FCI-West turf, optioned under a 75% earn-in from Osisko Mining TSX:OSK. Work will be conducted by Dahrouge Geological Consulting.

92 Resources to explore polymetallic potential of Quebec’s James Bay region

Over a campaign of three to four weeks, 92 Resources hopes to
build on previous success with energy, precious and base metals.

The agenda calls for prospecting along with rock and soil sampling. Among the priorities will be the Golden Gap Prospect at FCI-West, where historic, non-43-101 outcrop samples have graded between 3.1 g/t and 108.9 g/t gold, along with an historic drill intercept of 10.5 g/t over seven metres and a channel sample of 14.5 g/t over two metres.

Past reports of molybdenum occurrences on the area’s southern copper trend will also come under scrutiny.

The Lac Bruno prospect provides another area of interest, where a boulder field produced 13 samples exceeding 1 g/t gold, with one sample hitting 38.1 g/t. Up-ice soil sampling will extend from FCI-East to the boulders’ interpreted source on 92’s wholly owned Corvette claims.

Energy metals also attract interest, as the company’s previous work identified a well-mineralized lithium pegmatite system over a strike extending at least three kilometres on Corvette, with further potential on FCI-East. Lithium-tantalum channel samples released last year from Corvette’s CV1 pegmatite averaged 1.35% Li2O and 109 ppm Ta2O5, reaching as high as 2.28% Li2O and 471 ppm Ta2O5 over six metres. Three other spodumene-bearing pegmatites also show promise.

Located within the Guyer group of the Greater La Grande Greenstone Belt, the property sits about 10 kilometres south of the all-season Trans-Taiga Road and powerline, adjacently south of Midland Exploration’s (TSXV:MD) Mythril copper-gold-molybdenum-silver project and immediately east of Pikwa, a polymetallic project of Azimut Exploration TSXV:AZM and Ressources Québec’s SOQUEM subsidiary.

92’s Quebec portfolio also includes the Pontax, Eastman and Lac du Beryl properties. Grab samples from Pontax have reached up to 0.94% Li2O and 520 ppm Ta2O5.

In British Columbia 92 holds the Silver Sands vanadium prospect and the Golden frac sand project, the latter adjacent to Northern Silica’s high-grade Moberly silica mine and subject of a 43-101 technical report filed by 92 last year.

In the Northwest Territories, the company has a 40% stake in the Hidden Lake lithium project, with Far Resources CSE:FAT holding the remainder. In a 1,079-metre drill program last year, all 10 holes found grades above 1% Li2O, with one intercept showing 1.6% over 9.2 metres. Using Hidden Lake material, a mini pilot plant produced 40 kilograms of concentrate grading 6.11% Li2O with recovery over 80%.

92 Resources to explore polymetallic potential of Quebec’s James Bay region

June 19th, 2019

by Greg Klein | June 19, 2019

Lithium, gold, copper and molybdenum are among the goals of a program that begins next month at 92 Resources’ (TSXV:NTY) Corvette-FCI project. The property consists of 92’s 100%-held Corvette claims as well as the FCI-East and FCI-West turf, optioned under a 75% earn-in from Osisko Mining TSX:OSK. Work will be conducted by Dahrouge Geological Consulting.

92 Resources to explore polymetallic potential of Quebec’s James Bay region

Over a campaign of three to four weeks, 92 Resources hopes to
build on previous success with energy, precious and base metals.

The agenda calls for prospecting along with rock and soil sampling. Among the priorities will be the Golden Gap Prospect at FCI-West, where historic, non-43-101 outcrop samples have graded between 3.1 g/t and 108.9 g/t gold, along with an historic drill intercept of 10.5 g/t over seven metres and a channel sample of 14.5 g/t over two metres.

Past reports of molybdenum occurrences on the area’s southern copper trend will also come under scrutiny.

The Lac Bruno prospect provides another area of interest, where a boulder field produced 13 samples exceeding 1 g/t gold, with one sample hitting 38.1 g/t. Up-ice soil sampling will extend from FCI-East to the boulders’ interpreted source on 92’s wholly owned Corvette claims.

Energy metals also attract interest, as the company’s previous work identified a well-mineralized lithium pegmatite system over a strike extending at least three kilometres on Corvette, with further potential on FCI-East. Lithium-tantalum channel samples released last year from Corvette’s CV1 pegmatite averaged 1.35% Li2O and 109 ppm Ta2O5, reaching as high as 2.28% Li2O and 471 ppm Ta2O5 over six metres. Three other spodumene-bearing pegmatites also show promise.

Located within the Guyer group of the Greater La Grande Greenstone Belt, the property sits about 10 kilometres south of the all-season Trans-Taiga Road and powerline, adjacently south of Midland Exploration’s (TSXV:MD) Mythril copper-gold-molybdenum-silver project and immediately east of Pikwa, a polymetallic project of Azimut Exploration TSXV:AZM and Ressources Québec’s SOQUEM subsidiary.

92’s Quebec portfolio also includes the Pontax, Eastman and Lac du Beryl properties. Grab samples from Pontax have reached up to 0.94% Li2O and 520 ppm Ta2O5.

In British Columbia 92 holds the Silver Sands vanadium prospect and the Golden frac sand project, the latter adjacent to Northern Silica’s high-grade Moberly silica mine and subject of a 43-101 technical report filed by 92 last year.

In the Northwest Territories, the company has a 40% stake in the Hidden Lake lithium project, with Far Resources CSE:FAT holding the remainder. In a 1,079-metre drill program last year, all 10 holes found grades above 1% Li2O, with one intercept showing 1.6% over 9.2 metres. Using Hidden Lake material, a mini pilot plant produced 40 kilograms of concentrate grading 6.11% Li2O with recovery over 80%.

92 Resources increases its Quebec lithium-polymetallic potential with expanded acquisition

April 24th, 2019

by Greg Klein | April 24, 2019

An amended option with “no additional share, cash or work commitment” brings more land and greater prospects in northern Quebec’s James Bay region to 92 Resources TSXV:NTY. A 4,253-hectare increase to a previous 75% earn-in with Osisko Mining TSX:OSK now covers that company’s entire FCI property. Combined with 92’s adjacent and wholly owned Corvette project, the Corvette-FCI property now comprises three contiguous claim blocks in a 14,496-hectare parcel that stretches for over 25 kilometres along the Lac Guyer greenstone belt.

92 Resources increases its Quebec lithium-polymetallic potential with expanded acquisition

Past work at the newly acquired FCI West found 16 showings of base and precious metals along two parallel trends extending over 10 kilometres in length. Historic, non-43-101 assays from FCI West’s Golden Gap prospect included outcrop samples as high as 108.9 g/t gold, a 2003 drill interval of 10.5 g/t gold over seven metres and a channel sample of 14.5 g/t gold over two metres.

FCI West’s Tyrone-T9 prospect includes an historic, non-43-101 channel sample of 1.15% copper over 2.1 metres. Despite high-grade lithium showings at Corvette, FCI West has never been evaluated for the energy metal, the company stated.

Immediately south and west of 92’s new turf sits Azimut Exploration’s (TSXV:AZM) Pikwa property. Adjacently north of FCI West, Midland Exploration’s (TSXV:MD) 2018 field program on the Mythril project found outcrop and boulder samples grading 16.7% copper, 16.8 g/t gold and 3.04% molybdenum. 92 anticipates significant activity by multiple companies along the Lac Guyer greenstone belt this year “as the magnitude of the Mythril-style copper-gold mineralization unfolds.”

Regional infrastructure includes a powerline and the all-season Trans-Taiga Road 10 kilometres north of Corvette-FCI.

This year’s exploration program will follow evaluation of historic data, with work expected to wrap up in summer.

The amended option with Osisko would give 92 the additional claims by satisfying terms of the 75% earn-in on FCI East. That deal calls for an initial million shares, another million shares and $250,000 of work in year one, another $800,000 in year two and a further $1.2 million in year three, while Osisko acts as project operator. At that point the companies would form a 50/50 JV. Another $2 million in expenditures from 92 would raise the company’s stake to 75%. With FCI West now incorporated into that agreement, “no additional share, cash or work commitment is required by the company,” 92 emphasized.

The company retains a 100% interest in Corvette’s 172 claims.

92’s Quebec portfolio also includes the Pontax, Eastman and Lac du Beryl properties. Lithium-tantalum grab samples from Pontax have reached up to 0.94% Li2O and 520 ppm Ta2O5.

In British Columbia 92 holds the Silver Sands vanadium prospect and the Golden frac sand project. In the Northwest Territories, Far Resources CSE:FAT works towards a 90% earn-in on 92’s Hidden Lake lithium project.

92 closed a private placement of $618,000 last December.

Read more about 92 Resources here and here.

Got the minerals?

March 4th, 2019

A new book says self-imposed obstacles block U.S. self-sufficiency

by Greg Klein

“The Middle East has oil, China has rare earths.”

Deng Xiaoping’s 1992 implied threat became all too real eight years later in the Senkaku aftermath, when RE dependency put Japan and the West at China’s mercy. But just as the United States overcame the 1973 OPEC embargo to become the world’s leading oil producer, that country can overcome its growing reliance on dodgy sources of mineral production and processing. So say authors Ned Mamula and Ann Bridges in Groundbreaking! America’s New Quest for Mineral Independence.

Their country’s problem isn’t geology but policies, the book argues. Repeatedly pointing to Canada and Australia as role models, the authors say their own country’s mining potential can restore mining self-sufficiency, or at least minimize a crippling dependency.

A new book says self-imposed obstacles block U.S. self-sufficiency

Indeed, the mighty nation has a mighty problem with minerals: Imports supply many critical minerals and metals in their entirety, with heavy reliance on Russia and especially China, “countries we consider at best our competitors, and at worst our adversaries.”

Rare earths stand out as the “poster child for U.S. critical mineral vulnerability.” As the authors note, REs remain “essential for military and civilian use, for the production of high-performance permanent magnets, GPS guidance systems, satellite imaging and night vision equipment, cellphones, iPads, flat screens, MRIs and electric toothbrushes, sunglasses, and a myriad of other technology products. Since they offer that extra boost to so many new technologies, these rare earth metals rival energy in importance to our 21st century lifestyle.”

Industrial countries not only surrendered rare earths mining and processing to China, but gave up technological secrets too. That happened when China forced RE-dependent manufacturers to move their operations to China. After Apple transplanted some of its manufacturing to that country, China copied and reproduced the company’s products, at times outselling the iPhone with knock-offs.

A new book says self-imposed obstacles block U.S. self-sufficiency

Other intellectual property faces threats. “U.S. companies—Intematix, GE (Healthcare/MRI Division), Ford (Starter Motor Division), and Battery 1,2,3—have all added manufacturing capacity in China, and so has Japan’s Showa Denko, Santoku, and scores of other global electronics companies.”

RE dominance has also allowed China to lead the world in technology for electric vehicles, renewable energy and next-generation nuclear power. And America relies on its rival for defence: “Most of the U.S.’ advanced weapon systems procurement is 100% dependent on China for advanced metallurgical materials.”

Foreign dependency includes tantalum, “critical to the economy and national defense,” gallium, cobalt, uranium and the list goes on.

According to a just-published report from the U.S. Geological Survey, “in 2018, imports made up more than half of U.S apparent consumption for 48 non-fuel mineral commodities, and the U.S. was 100% net import-reliant for 18 of those.

“For 2018, critical minerals comprised 14 of the 18 mineral commodities with 100% net import reliance and 15 additional critical mineral commodities had a net import reliance greater than 50% of apparent consumption. The largest number of non-fuel mineral commodities were supplied to the U.S. from China, followed by Canada.”

The takeover of former TSX listing Uranium One by Russia’s state-owned Rosatom brings threats worse than most observers realized, the authors say. The acquisition granted the Russian government membership in trade organizations and therefore valuable intel formerly available only through espionage. Uranium One also gives Russia the ability to curtail future American uranium production and use its influence on Kazakhstan, the world’s top producer, to flood the U.S. with cheaper, subsidized supply. That could put both U.S. production and processing out of business in a tactic reminiscent of China’s RE machinations.

China’s communist government uses a ‘debt trap’ model of economic development and finance which proffers substantial financing to developing countries in exchange for an encumbrance on their minerals resources and access to markets. This predatory model has been particularly effective in countries characterized by weak rule of law and authoritarian regimes.—Ned Mamula
and Ann Bridges

The Chinese “are now masters at securing and controlling core natural resources globally, especially minerals.” The country uses long-term contracts, equity investments and joint ventures, as well as the “debt trap” that provides “substantial financing to developing countries in exchange for an encumbrance on their minerals resources and access to markets. This predatory model has been particularly effective in countries characterized by weak rule of law and authoritarian regimes.”

The U.S., meanwhile, suffers not only from naivete and short-term thinking, but from self-induced challenges. The authors devote an entire chapter to Alaska’s Pebble project, maybe the world’s largest undeveloped copper-gold-molybdenum deposit. After more than two decades and over $150 million in spending, “Pebble is still more about politics than geology, much less mining the minerals known to exist there.”

The story stands out as “the classic cautionary tale in U.S. history of how a powerful federal regulatory agency can go rogue and impose its will on an unsuspecting permit applicant.”

Suggestions to alleviate these ills include streamlining the permitting process, among other recommendations to open up domestic production and re-build supply chains. One of the authors’ more interesting ideas concerns teaming up with environmental activists to promote ethical green supply chains that would shut out conflict minerals.

The book’s marred by repetition, sloppy English and some bold-faced typographical shouting. It’s also cluttered with a few questionable information sources and excerpts from a novel that would have been better left unwritten. The portrayal of Canada as a role model, moreover, might induce bitter laughter from this side of the border. But Groundbreaking offers a vital message to general readers. In doing so, it could reinforce a growing awareness in the U.S. about the need to minimize foreign dependency.

Read more about U.S. efforts to secure critical minerals here and here.

Niobium-tantalum in Quebec

December 5th, 2018

Successful sampling readies Saville Resources to drill for critical metals

by Greg Klein

“Building momentum” is the way Saville Resources TSXV:SRE president Mike Hodge puts it. Steady progress, shown most recently through another encouraging sampling program, puts the company’s early-stage niobium-tantalum project in Quebec on track for drilling this winter. Assays so far have the company hopeful about proving up a maiden resource in this mining-friendly jurisdiction next door to a country increasingly concerned about sourcing critical metals.

Successful sampling readies Saville Resources to drill for critical metals

Conducted by Dahrouge Geological Consulting, the fall
program brought the Niobium claim group to drill-ready status.

The autumn field program met all of its objectives, Hodge enthuses. Twenty-two boulder samples surpassed 0.7% Nb2O5, with 14 of them exceeding 0.8% and one peaking at 1.5%. Tantalum made its presence known too. Those same 14 niobium samples also graded between 160 ppm and 1,080 ppm Ta2O5.

The project gained yet another target, where boulders reached 0.88% and 1.28% Nb2O5. A ground magnetics survey highlighted the prospectivity of the Moira area, already the location of exceptionally high-grade samples. In all, the results show a drill-ready project that should see action this winter.

Saville holds a 75% earn-in from Commerce Resources TSXV:CCE on the Niobium claim group, a 1,223-hectare package on the latter company’s Eldor property in Quebec. Just a few kilometres from the Niobium project and with obvious synergistic potential for Saville, Commerce has its Ashram rare earths deposit moving towards pre-feasibility. All this takes place in a province that demonstrates its support for mining through a number of initiatives, including direct investment and the Plan Nord infrastructure program. The northeastern Quebec region has two treaties in place that clearly define procedures for native consultation. Saville’s three-quarters stake in the Niobium claim group calls for $5 million in work over five years.

A 43-101 technical report filed in September followed field programs by previous companies including 41 holes totalling 8,175 metres drilled by Commerce. In addition to niobium-tantalum, the report noted phosphate and fluorspar as potential secondary commodities.

Some of the standout results from previous sampling came from the property’s as-yet undrilled Miranna area, where boulder samples graded as high as 2.75%, 4.24%, 4.3% and an exceptional 5.93% Nb2O5.

Other locations have been drilled, but not since 2010. Some 17 holes and 4,328 metres on the Southeast area brought near-surface highlights that include:

  • 0.82% Nb2O5 over 21.89 metres, starting at 58.93 metres in downhole depth

  • 0.72% over 21.35 metres, starting at 4.22 metres
  • (including 0.9% over 4.78 metres)

  • 0.72% over 17.35 metres, starting at 70 metres

  • 0.71% over 15.33 metres, starting at 55.1 metres

True widths were unavailable. Southeast results also showed tantalum and phosphate, as well as suggesting a possible fluorspar zone.

A wide, near-surface interval from the Northwest area showed:

  • 0.46% Nb2O5 over 46.88 metres, starting at 30.65 metres
  • (including 0.61% over 11.96 metres)
Successful sampling readies Saville Resources to drill for critical metals

Surface outcrops and near-surface core
produce encouraging grades for Saville Resources.

As in the Southeast, the Northwest area showed encouraging signs of tantalum and phosphate. But tantalum came through most strongly in the property’s Star Trench area, with results as high as 1,810 ppm Ta2O5 (with 1.5% Nb2O5) over 0.52 metres, as well as 2,220 ppm Ta2O5 (with 1.69% Nb2O5, and phosphate grading 20.5% P2O5) over 0.31 metres.

Another area gains greater prominence too, thanks to this autumn’s ground magnetics survey. A strong anomaly at the Moira target, about 250 metres north of Miranna, coincides with several overlapping boulder trains that suggest Moira could be one of several possible sources of mineralization.

And a new, yet-to-be-named area gave up two of the fall program’s best assays. About 400 metres south of the drill area, the new target produced boulder samples hitting 1.28% Nb2O5 and 260 ppm Ta2O5, along with 0.88% Nb2O5 and 1,080 ppm Ta2O5.

Intriguingly, glacial ice suggests the two rocks, found about 100 metres apart, originated in an area farther southeast that’s had very little attention so far.

Saville also holds the 3,370-hectare Covette project in Quebec’s James Bay region, where last summer’s field program found surface samples including 1.2% zinc and 68.7 g/t silver. Three other samples returned nickel values ranging from 0.13% to 0.19%.

Work focused on a highly conductive area identified by a 2016 VTEM survey. Samples gathered in 2017 included grades of 0.18% nickel, 0.09% copper and 87 ppm cobalt. One historic, non-43-101 grab sample brought 4.7% molybdenum, 0.73% bismuth, 0.09% lead and 6 g/t silver, while another historic sample returned 1.2 g/t silver and 0.18% copper.

As for niobium, it’s considered a critical metal by the American government for its use in steels and super-alloys necessary for jet engine components, rocket sub-assemblies, and heat-resisting and combustion equipment, according to the U.S. Geological Survey. Almost 90% of last year’s world production came from Brazil, where new president Jair Bolsonaro has expressed concern about increasing Chinese ownership of resources.

Also a component of military super-alloys, tantalum additionally plays a vital role in personal electronics including phones and computers. The U.S. imports its entire supply of tantalum. About 60% of last year’s world production came from the troubled countries of Rwanda and the Democratic Republic of Congo.

With the advantages of markets, jurisdiction and geology, Hodge looks forward to winter drilling. “We’ve now got about 20 targets that we can go after,” he says. “One priority would be to define the Southeast area because we’ve got such good niobium numbers there. On getting a potential inferred resource, we’d go after Miranna or Moira and the untested targets. We’re looking forward to a busy, productive season.”

Read more about U.S. efforts to secure critical minerals here and here.

Saville Resources discovers new zinc-silver-nickel zone at surface in Quebec

August 8th, 2018

by Greg Klein | August 8, 2018

A property with limited exploration but encouraging geophysics shows further promise following a recent field program. Of eight surface samples collected by Saville Resources TSXV:SRE on its 3,370-hectare Covette project in Quebec’s James Bay region, one returned 1.2% zinc and 68.7 g/t silver, while three others assayed between 0.13% and 0.19% nickel.

Saville Resources discovers new zinc-silver-nickel zone at surface in Quebec

Saville Resources now plans trenching and channel
sampling to follow Covette’s grab sample assays.

Sampling took place along a visible strike of about 200 metres directly above an area of high conductivity found by a 2016 VTEM program that spotted several EM conductors coinciding with strong magnetic anomalies.

Underlying the region is a greenstone belt “comprised of various mafic to ultramafic rock units considered prospective for base and precious metals (nickel-copper-cobalt-platinum group elements-gold-silver), as well as pegmatite-hosted rare metals (lithium-tantalum),” Saville reported. “Komatiites have also been described in the region with such rock types known to host significant nickel-copper massive sulphide deposits at other localities globally, adding further to the prospective nature of the region.”

A sampling program in 2017 brought 0.18% nickel, 0.09% copper and 87 ppm cobalt. One historic, non-43-101 grab sample returned 4.7% molybdenum, 0.73% bismuth, 0.09% lead and 6 g/t silver. Another historic sample showed 1.2 g/t silver and 0.18% copper.

Further plans include follow-up trenching and channel sampling. Saville filed a 43-101 technical report on the property and closed its 100% acquisition in June.

Covette sits about 190 kilometres east of the town of Radisson and 10 kilometres north of the all-weather Trans-Taiga road and the adjacent hydro-electricity transmission line.

In another northern Quebec project, Saville has a 43-101 technical report underway for the Miranna claims situated on the Eldor property that hosts Commerce Resources’ (TSXV:CCE) advanced-stage Ashram rare earths deposit. Saville would acquire a 75% earn-in subject to exchange approval. In April the companies released niobium-tantalum boulder sample grades as high as 4.3% Nb2O5 and 700 ppm Ta2O5.

Last month Saville offered two private placements totalling up to $2 million.

Read more about Saville Resources.

Senkaku II

July 23rd, 2018

How might a U.S.-China trade war affect rare earths?

 

At first glance, the rare earths aspect of the U.S.-China tariffs tussle looks like small change—a proposed 10% duty on American RE imports that might cause a smallish markup on some manufactured goods and wouldn’t necessarily apply to defence uses. But all that’s part of a much bigger battle that will probably target $250 billion of Chinese exports to the U.S. China used an incomparably smaller incident in 2010 to rationalize a ruthless sequence of rare earths trade machinations. Could something like that happen again, this time with different results?

How might a U.S.-China trade war affect rare earths?

Hostilities began earlier this month as the U.S. imposed a 25% tariff on approximately $34 billion worth of Chinese imports, with levies on another $16 billion likely to come. China retaliated with tariffs on equal amounts of American imports.

The U.S. re-retaliated with a threatened 10% on an additional $200 billion of Chinese imports in a process that would follow public consultation. The additional list includes rare earth metals along with yttrium and scandium, which are often considered REs but rate distinct categories in this case.

Last year the U.S. imported $150 million worth of 15 RE metals and compounds, up from $118 million the previous year, according to the U.S. Geological Survey. Some 78% came directly from China, with much of the rest derived from Chinese-produced concentrates. Yttrium shows a similar story, with 71% coming directly from China and nearly all the rest from Chinese concentrates. Although lacking hard numbers for scandium, the USGS states that too comes mostly from China.

Globally, China produced over 80% of world RE supply last year, but with less than 37% of the planet’s reserves.

Rare earths plus scandium comprise two of 35 mineral categories pronounced critical to the American economy and defence by Washington last May, after Donald Trump called for a “federal strategy to ensure secure and reliable supplies of critical minerals.” Now the same administration wants to slap those commodities with a 10% price hike.

And at risk of provoking powerful Chinese retaliation.

Rare earths watchers will remember the 2010 confrontation around the disputed East China Sea islands of Senkaku. The Japanese navy arrested a Chinese fishing crew captain who had twice rammed his boat against the military vessel. Within days, China banned all rare earths exports to Japan, crippling its globally important but RE-dependent manufacturers. China also imposed heavy cutbacks and duties on exports to other countries.

While some Western manufacturers relocated to China, Western resource companies strove to develop alternative supplies. Lynas Corp’s Mount Weld project in Western Australia and Molycorp’s Mountain Pass project in California both reached production in 2013. The following year the U.S. claimed victory as the World Trade Organization ordered China to drop its export restrictions on rare earths, as well as tungsten and molybdenum.

China complied with a vengeance, flooding the world with cheap RE supply. America’s WTO victory proved Pyrrhic as a burgeoning non-Chinese supply chain failed to compete. The most salient casualty was Mountain Pass, which went on care and maintenance in 2015.

So does China have more rare earths machinations in mind, this time responding not to a minor territorial dispute but tariffs affecting $250 billion of Chinese exports?

Maybe, but different circumstances might bring a different outcome. Since the Senkaku-induced RE crisis, advanced-stage projects have developed potential mines outside China. Work has progressed on non-Chinese supply chains, working to eliminate that country’s near-monopoly on processing expertise. Most recently, the U.S. has begun an official critical minerals policy to encourage development of supplies and supply chains in domestic and allied sources.

Of course any future scenario remains speculative. But this time the West might be better prepared for China’s tactics. Any new export restrictions might spur development of the deposits that now exist outside China. Any Chinese attempts to dump cheap supply could face further, far more punishing tariffs. While some other industries might suffer in the shorter term, Western resource companies might welcome Senkaku II.

Saville Resources closes Quebec nickel-copper-cobalt acquisition, files 43-101, readies summer program

June 26th, 2018

by Greg Klein | June 26, 2018

An undrilled property with encouraging geophysical results will undergo a summer field program, now that Saville Resources TSXV:SRE has finalized its acquisition of the James Bay-region Covette project. A 1,402-line VTEM survey from 2016 outlined at least six areas of high conductivity on the 3,315-hectare property, with one zone extending southeast about 4.5 kilometres and another trending northeast. Those areas “need to be evaluated,” stated a 43-101 technical report filed this month.

Saville Resources closes Quebec nickel-copper-cobalt acquisition, files 43-101, readies summer program

A pegmatite ridge on Saville Resources’ Covette
project, which now has Phase I field work planned.

Sampling conducted last year showed 0.18% nickel, 0.09% copper and 87 ppm cobalt, but the field program wasn’t sufficient to explain the source of the VTEM anomalies, which may indicate a source at depth, the company stated.

An historic, non-43-101 sample assayed 4.7% molybdenum, 0.73% bismuth, 0.09% lead and 6 g/t silver. Another brought 1.2 g/t silver and 0.18% copper.

A Phase I field program recommended by the technical report would include detailed mapping and sampling in areas of high-conductivity, channel sampling and further geophysics. The project sits about 10 kilometres north of the all-weather Trans-Taiga road and adjacent transmission line.

Meanwhile work continues on another Quebec acquisition as Saville prepares a 43-101 technical report on the Miranna claims, located on the Eldor property that hosts Commerce Resources’ (TSXV:CCE) advanced-stage rare earths deposit. In April the companies reported assays as high as 4.3% Nb2O5 and 700 ppm Ta2O5, results in line with previous high grades. Subject to exchange approval, Saville would acquire a 75% earn-in on Miranna.

Read more about Saville Resources.

Jobs, revenues, share prices benefit as higher commodity prices boost B.C. mining

May 11th, 2018

by Greg Klein | May 11, 2018

Jobs, revenues, share prices benefit as higher commodity prices boost B.C. mining

A 75%/25% partnership of Copper Mountain Mining TSX:CMMC and Mitsubishi
Materials brought a former mine back into production, employing 430 workers.

 

The bull’s still not back but higher commodity prices continue to sustain a mood of cautious optimism among British Columbia miners, PricewaterhouseCoopers assures us. Its 50th annual report on B.C. mining sketched a broad picture of the province’s industry by surveying 13 companies, focusing on 15 operating mines, a smelter and seven projects in the exploration, permitting or environmental review stage.

Among survey participants, gross revenue hit $11.7 billion in 2017, a 35% jump from the previous year and reflecting an upward trend in the mining cycle. (Except for commodity prices, all figures are given in Canadian dollars.) Governments scooped up $859 million in total mining revenues from those companies last year, compared with $650 million in 2016.

Shareholders fared especially well, reaping 31.1% pre-tax gains from the companies involved, compared with 13.5% in 2016 and 6.3% in 2015. “This is the highest return we’ve seen in recent years and it has surpassed the historic high levels of 2012,” PwC stated.

Direct employment among the companies climbed to 10,196 jobs, compared with 9,329 in 2016 and 9,221 in 2015. PwC attributed most of the increase to Conuma Coal Resources’ two operating mines in the northeast.

Indeed, the participants’ metallurgical coal revenue rose to $5.2 billion from $3 billion in 2016 and $2 billion in 2015. Prices averaged $173 a tonne last year, up from $115 in 2016 and $101 in 2015. At a 50% increase over 2016, the steelmaking stuff struck the highest price increase of any commodity included in the report.

Revenue from copper concentrate came to nearly $1.9 billion, after $1.8 billion in 2016 and $2 billion in 2015. Average red metal prices rose 27% to $2.80 a pound, compared with $2.21 in 2016 and $2.50 in 2015.

Despite a slight decrease in shipments, a 38% price increase lifted participants’ zinc revenue to $1.2 billion, compared with $877 million in 2016 and $818 million the previous year. Prices swelled to an average $1.31 a pound, compared with $0.95 in 2016 and $0.87 in 2015.

Participants’ gold revenues rose to $829 million from $651 million in 2016 and $519 million in 2015. Although B.C. produces the yellow metal largely as a copper byproduct, the 2017 increase largely came from Pretium Resources’ (TSX:PVG) Brucejack mine, which began commercial production that year. Average prices underwhelmed, however, at $1,259 an ounce, although slightly less depressed than the $1,248 in 2016 and $1,160 in 2015.

Silver revenues slipped to $509 million from $589 million the previous year and $535 million in 2015. Average prices wallowed around $17.08 an ounce, compared with $17.11 in 2016, up from $15.71 in 2015. B.C. mines generally garner silver as a byproduct of metals like copper, gold, lead and zinc.

As for lead, it dropped to $224 million in revenues from $255 million the previous year, despite prices rising to $1.05 a pound from $0.85 in 2016.

Molybdenum more than doubled to $104 million from $45 million in 2016 and $51 million in 2015, thanks to higher volumes and prices, which reached $7.07 a pound from $6.37 in 2016.

[The return on shares for participating companies] is the highest return we’ve seen in recent years and it has surpassed the historic high levels of 2012.

Saying “the worst may be over,” PwC stated: “Many in the industry haven’t felt this positive since it was recovering from the fallout of the 2008-09 global financial crisis. There’s cautious optimism the industry will continue to recover.”

But a warning came from an otherwise upbeat Bryan Cox, president of the Mining Association of B.C.: “Mining projects are capital-intensive, multi-year commitments, from exploration to mine development and operation, necessitating clarity, consistency and co-ordination from governments for investors to deploy capital. If any one of those three Cs is missing, then capital investment is at risk.”

This marks PwC’s 50th such report since 1967, when “Lester B. Pearson was Canada’s prime minister, W.A.C. Bennett was the premier of British Columbia and [get this!] the Toronto Maple Leafs won the Stanley Cup. As for mining, in 1967 the price of gold was about $35 per ounce, copper was trading around $0.50 per pound and the Britannia mine, now a museum, was still producing copper, gold, silver and other metals and minerals.”

Download 50 years on… The mining industry in British Columbia 2017.

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.