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Posts tagged ‘McEwen Mining Inc (MUX)’

The Red Lake resurgence

September 16th, 2019

Miners and explorers seek ever more gold from this busy Ontario district

by Greg Klein

Miners and explorers seek ever more gold from this busy Ontario district

Benefiting from reinterpretation of past work, Great Bear now
has three rigs drilling Dixie Lake. (Photo: Great Bear Resources)

 

A new gold producer on the way, attention-grabbing assays from a well-financed junior and high hopes for the price of gold—could that in any way explain the current excitement at Red Lake? A region that’s produced 30 million ounces since its first rush in 1926 still has more gold to mine and, explorers believe, more mines to find.

Just as Newmont Goldcorp TSX:NGT was considering the sale of its Red Lake operations, Pure Gold Mining TSXV:PGM began building Madsen Red Lake, billed as Canada’s highest-grade gold development project. But, as far as juniors are concerned, the district’s biggest newsmaker has been Great Bear Resources’ (TSXV:GBR) Dixie Lake property.

While focused on British Columbia’s Golden Triangle in 2017, Great Bear optioned Dixie from Newmont, also getting decades of data from over 160 historic holes. Given the succession of companies that drilled and departed, the data might have seemed more encumbrance than encouragement. Undeterred, Great Bear geologists began relogging core to “resolve geological differences between generations of work dating back to the 1980s and provide a coherent framework for the company’s own drilling.”

The prepping paid off. That summer’s Phase I program found success with its first hole and reached up to 16.84 g/t gold over 10.4 metres in hole #5 at the Dixie Limb zone. As the campaign progressed, the company tripled its turf to cover a potential gold-bearing structure of regional significance.

Miners and explorers seek ever more gold from this busy Ontario district

Pure Gold conducts underground test mining at Madsen Red Lake.
(Photo: Pure Gold Mining)

More expansions followed, with assays reaching up to 26.91 g/t over 16.35 metres at the newly discovered and near-surface Hinge zone. Financings came through too, most notably with an $11.1-million infusion that included a total of $5.7 million from McEwen Mining TSX:MUX and Rob McEwen himself, progenitor of Red Lake’s last renaissance. The Canadian Mining Hall of Fame credits him with transforming the Goldcorp mine “from a 50,000-ounce producer in 1997 to a 500,000-ounce producer in 2001, while cash costs fell from $360 per ounce to $60 per ounce over this period.”

The stock soared past $2 from about $0.58 pre-McEwen. The grades, discoveries and financings continued, even with what president/CEO Chris Taylor called “the cheapest discovery hole we’ve ever had.” That happened after a keen-eyed geo spotted high-grade visible gold on unassayed core that had been neglected for 12 years. Clearly, the company was on to something when its management decided past operators had overlooked Dixie’s promise.

Great Bear now has three rigs at work.

But this is no spectator sport, as the inevitable influx demonstrated. One of the more recent arrivals was Belmont Resources TSXV:BEA, which earlier this month optioned about 6,700 hectares from Pistol Bay Mining TSXV:PST. But the attraction was base metals more than the yellow stuff. Belmont’s new Fredart/Gerry Lake and adjoining claims show a geological setting similar to Pistol Bay’s Garnet Lake, the companies stated. Using a 3% zinc-equivalent cutoff, Garnet’s 2017 inferred resource showed 2.1 million tonnes averaging 5.78% zinc, 0.72% copper, 19.5 g/t silver and 0.6 g/t gold. 

Miners and explorers seek ever more gold from this busy Ontario district

Visible gold attests to Great Bear’s confidence in Dixie Lake.
(Photo: Great Bear Resources)

An historic, non-43-101 resource for Belmont’s Fredart zone estimated 385,000 tonnes averaging 1.56% copper and 33.6 g/t silver. Historic drilling on the acquisition’s Joy-Caravelle area shows non-43-101 results including 21.6% zinc and 0.13% copper over 0.25 metres.

Up to recently, Pistol Bay’s portfolio had been about 25 kilometres northeast of Dixie Lake. But the company moved closer in July, with an option on 2,130 hectares southeast of Great Bear. Part of the former Goldpines claims, the property’s past work consisted mainly of geochemical sampling.

An NSR held by Perry English on Fredart hints at the prospector’s impact on the district. English sold the Dixie and Packwash properties to Great Bear and, under an LOI signed earlier this month, will vend Red Lake’s Camping Lake and Bruce Lake projects to Prime Meridian Resources TSXV:PMR.

Spurred on by recent grab samples as high as 19 g/t, 23.3 g/t and 126.5 g/t gold, Pacton Gold TSXV:PAC plans 10,000 metres of drilling to begin next month at its Red Lake project. Historic work included sampling, trenching and drilling.

A more advanced project towards the district’s eastern reaches, First Mining Gold’s (TSX:FF) Springpole reached PEA in 2017 with an indicated 4.67 million gold ounces and 24.19 million silver ounces, along with an inferred 230,000 gold ounces and 1.12 million silver ounces.

Proximal to both Newmont Goldcorp and Pure Gold, Nexus Gold’s (TSXV:NXS) McKenzie project underwent a spring field program that scored a sample result of 135.4 g/t gold. In August the company signed an LOI with privately held Hawkmoon Resources that could have the latter company acquire or JV on Nexus’ Canadian projects.

With a Phase I drill program of at least 2,500 metres well underway, BTU Metals TSXV:BTU hopes to find evidence that Great Bear’s high-grade LP fault structure crosses BTU’s Dixie Halo property.

Under an LOI signed last week, Maxtech Ventures CSE:MVT would acquire the Panama Lake project from Benton Resources TSXV:BEX. The latter company assembled the property by staking, last year adding the former Goldcorp Ben Lake project. This year’s drilling produced assays up to 1.23 g/t gold over 6.5 metres.

Some other companies in the district include Confederation Minerals TSXV:CFM, which last May added the Leo property to its Red Lake portfolio with the company’s 70%-held Newman Todd property.

This month GoldON Resources TSXV:GLD completed prospecting and soil sampling on its West Madsen project optioned from Great Bear last May. GoldON sees rare earths as well as gold potential in the property.

Meanwhile Madsen begins construction, with commercial production expected by the end of 2020. The project came together quickly after Pure Gold, then called Laurentian Goldfields, assembled claims including the former Madsen mine in late 2013 and early 2014. Within five years Pure Gold built a resource of 2.06 million ounces indicated and 467,000 ounces inferred. That includes a probable reserve of 3.51 million tonnes averaging 8.97% for 1.01 million ounces that’s expected to keep the mine busy for 12 years.

Deep-pocketed support comes from AngloGold Ashanti NYSE:AU, Eric Sprott, Rob McEwen and Newmont Goldcorp, who collectively hold over 30% of Pure Gold.

Although the district’s success stories encourage enthusiasm, Red Lake also spawned a cautionary tale. Rubicon Minerals TSX:RMX notoriously skipped feasibility to take its Phoenix project directly from PEA to production in 2015. Six months later the mine shut down. The explanation: Unexpectedly complex geology. The resource shrank dramatically, from 1.13 million gold ounces measured and indicated in 2013 to just 106,000 ounces in 2016. Inferred fell from 2.22 million ounces to 307,000 ounces.

Later that year the company sought creditor protection.

But last month Rubicon bravely unveiled a new PEA with “a lower margin of error and risk.” Still a far cry from the 2013 estimate, however, are the current numbers of 589,000 ounces measured and indicated, along with 540,000 ounces inferred. Chastened, the company plans to begin feasibility studies in Q1 2020.

NRG Metals completes due diligence on Argentinian lithium properties

November 21st, 2016

by Greg Klein | November 21, 2016

Among the companies active in South America’s Lithium Triangle, NRG Metals TSXV:NGZ has finished due diligence on two properties that would comprise the Carachi Pampa project in northwestern Argentina. Totalling 6,387 hectares, the contiguous properties sit in an area hosting geological features common to other lithium-rich salars in the region, the company stated on November 18. “The lithium target is a paleo salar (basin) at depth that has the potential to host lithium-enriched brines.”

NRG Metals completes due diligence on Argentinian lithium properties

NRG sees potential for lithium-enriched brines
in the Lithium Triangle’s Carachi Pampa project.

Located 40 kilometres from the town of Antofagasta de la Sierra at about 3,000 metres in elevation, the properties have winter access, a paved road 10 kilometres away and nearby services.

NRG has retained experienced lithium explorers Rojas and Associates and Sergio Lopez and Associates to review the project, with Rojas to complete a 43-101 technical report.

The properties are subject to different four-year purchase agreements, according to an LOI announced September 21. With all dollar figures in U.S. currency, one property calls for $120,000 on signing a definitive agreement, $200,000 in each of three annual payments and $600,000 at the end of the fourth year. A 1% NSR applies, which NRG may buy back for $1 million.

The other project would cost $160,000 on signing, $100,000 in two annual payments, $250,000 in year three and $625,000 in year four. Again, the company may buy back the 1% NSR for $1 million.

NRG offered a private placement up to C$1 million. Additionally, the company has negotiations underway on other properties.

In October NRG announced a management team for its Argentinian subsidiary, NRG Metals Argentina S.A. Executive director James Duff has written several 43-101 reports for Argentinian projects and served as COO of McEwen Mining TSX:MUX acquisition Minera Andes and president of South American operations for Coeur Mining NYSE:CDE.

Non-executive director José Gustavo de Castro is a chemical engineer with extensive experience in the evaluation and development of Argentinian lithium projects including the continent’s largest lithium producer, FMC Corp’s Hombre Muerto operation.

Manager of business development and corporate relations José Luis Martin’s 35-year career includes senior positions with Galaxy Lithium S.A. and Rio Tinto’s (NYSE:RIO) Argentinian projects.

Director Jorge Vargas specializes in property, mining and business law in Argentina.

Also last month NRG announced plans to spin out other assets to concentrate on lithium. The portfolio currently includes the LAB graphite project in Quebec and the Groete gold-copper resource in Guyana.

Artificial intelligence, virtual reality help win online Gold Rush Challenge

March 7th, 2016

by Greg Klein | March 7, 2016

Artificial intelligence, virtual reality help win online Gold Rush Challenge

Located just east of Val-d’Or, the past-producing Sigma and Lamaque
mines sit between Integra’s Lamaque North and South projects.

A PDAC opening event demonstrated the evolution of mineral exploration as a high-tech Quebec team won first prize in an online search for Abitibi gold. Integra Gold TSXV:ICG asked contestants to dig through digital data representing some 75 years of mining and exploration at the past-producing Sigma/Lamaque property adjacent to the company’s Lamaque project. Out of five finalists appearing at the March 6 event, the SGS Geostat team won the $500,000 first prize.

The team “used sophisticated geostatistical methods to drive data into an expansive and unbiased block model,” Integra explained. “A prospectivity scoring system harnessed both geological knowledge and machine learning, a subfield of artificial intelligence, to identify high-value targets, which were then vetted through virtual reality with Oculus Rift technology.”

Using somewhat less sophisticated technology, Lamaque produced 4.58 million gold ounces between 1935 and 1985, while Sigma turned out 4.45 million ounces from 1937 to 1997. The digitized files included info from 30,000 holes, over 500,000 assays, hundreds of kilometres of underground workings, mining stats, geological sections, level plans and photos.

As a team of geologists, engineers and computer scientists often bound by certain limitations and boundaries, we relished in the opportunity to channel our collective creativity and curiosity to provide new exploration targets in a historic and famous mining jurisdiction known worldwide.—Guy Desharnais, team leader with SGS Geostat

SGS Geostat leader Guy Desharnais said, “As a team of geologists, engineers and computer scientists often bound by certain limitations and boundaries, we relished in the opportunity to channel our collective creativity and curiosity to provide new exploration targets in a historic and famous mining jurisdiction known worldwide.”

Four other finalists—three teams and one individual—shared another $340,000 in prizes. Integra announced the contest last June. By September over 740 entries had arrived from 65 countries.

Panellists consisted of geologist and commentator Brent Cook, Randy Smallwood and Chantal Gosselin of Silver Wheaton TSX:SLW, Rob McEwen of McEwen Mining TSX:MUX and Sean Roosen of Osisko Gold Royalties TSX:OR.

Integra didn’t specify what the winners proposed for the former mines. But CEO Stephen de Jong said some of the suggested drill targets “are like nothing we’ve ever seen before. We have decided to expedite the drill program and start testing a number of these targets in the immediate future.”

December 14th, 2015

China is snookering the IMF and U.S. (again) on currency Equities Canada
Rob McEwen, the investor, has some advice for mining executives everywhere Streetwise Reports
Graphite 2015: Graphene’s invisible potential Industrial Minerals
John Mauldin interviews George Friedman GoldSeek
Commodity faithful see some hope next year after 2015 heartbreak NAI 500
Chinese-backed electric carmaker picks Nevada for $1-billion plant Stockhouse

December 11th, 2015

Rob McEwen, the investor, has some advice for mining executives everywhere Streetwise Reports
Graphite 2015: Graphene’s invisible potential Industrial Minerals
John Mauldin interviews George Friedman GoldSeek
Commodity faithful see some hope next year after 2015 heartbreak NAI 500
Chinese-backed electric carmaker picks Nevada for $1-billion plant Stockhouse
Is the European Union worth saving? Equities Canada
Dr. Clay: That mud bath might actually be good for you Geology for Investors

A matter of necessity: Rob McEwen clarifies cartel comment

April 13th, 2015

by Greg Klein | April 13, 2015

McEwen Mining TSX:MUX CEO Rob McEwen wants to clear up any misunderstanding about any “relationship” with criminal cartels. In an April 9 BNN interview about the 7,000-ounce gold heist at his company’s El Gallo 1 mine in Mexico, he was asked if that part of the country is dangerous. McEwen responded: “It hasn’t been. I mean the cartels are active down there. Generally we have a good relationship with them.”

It is our policy to contact all property owners or impacted community members in an area to seek their permission and ascertain the appropriate timing to enter their properties to conduct mineral exploration. We respect their wishes as any good neighbour and responsible miner would.—Rob McEwen,
CEO of McEwen Mining

By April 13 McEwen found a clarification necessary. “My answer was related to gaining access to properties we wish to explore,” he stated. “It is our policy to contact all property owners or impacted community members in an area to seek their permission and ascertain the appropriate timing to enter their properties to conduct mineral exploration. We respect their wishes as any good neighbour and responsible miner would.

“Unfortunately, my use of the words ‘good relationship’ was careless and has created the entirely false impression with Mexican media that we have regular contact with criminal elements in their society. This is simply not true. I wish to apologize sincerely for any misunderstanding my words may have caused.”

McEwen had told BNN, “If you want to go explore somewhere you ask them, and they’ll tell you “no,” but then they’ll say come back in a couple of weeks [when] we finish what we’re doing.”

BNN’s Andrew Bell then asked, “What are they doing, transporting drugs or something?”

McEwen answered, “They might be harvesting them, or—a lot of the problems happen higher in the mountains and we’re in the foothills.”

While the word “relationship” might be misunderstood, the unfortunate necessity of consulting criminals isn’t unique to Mexico or McEwen. Nor is it new. In late 2011 Ian Ball, then senior VP for US Gold, McEwen’s predecessor company at El Gallo, told ResourceClips.com, “We have been very active there for three or four years and have been able to establish a pretty good relationship—and this might sound strange—with the cartel. You have to know who they are and inform them what you’re doing and where you’re moving to…. They don’t want you near their marijuana crops.”

US Gold was renamed McEwen Mining in January 2012.

Read more about Rob McEwen’s BNN interview.

Unflappably unfazed, Rob McEwen discusses the 7,000-ounce gold heist

April 10th, 2015

by Greg Klein | April 10, 2015

If you like your mining CEOs calm, confident, soft-spoken and even smiling in the face of calamity, Rob McEwen’s your man. Speaking with BNN’s Andrew Bell on April 9, the McEwen Mining TSX:MUX boss presented a model of poise, at times smiling broadly as he discussed the 7,000-ounce gold robbery two days earlier at his El Gallo 1 refinery in Sinaloa, Mexico. McEwen owns a 25% stake in the company, and therefore any loss.

Unflappably unfazed, Rob McEwen discusses the 7,000-ounce gold heist

McEwen: “Um, it’s not funny to laugh at.”

Bell told him, “Some people might say, ‘How could this happen?’ I mean, it’s $8 million worth of gold.”

McEwen laughed as he replied, “Yeah, I was saying that too.” Quickly regaining composure, he conceded, “Um, it’s not funny to laugh at.”

His demeanour might have sometimes suggested otherwise but McEwen’s statements did express concern. He assured Bell that no serious injuries were suffered, although security staff might have been emotionally scarred. McEwen also expressed confidence in state government and local police. Nor has he written off the loot. Insurance would cover some of it but, he said, “We hope we’re not going to lose anything because we hope to recover the gold.”

As for the facility’s future security arrangements, he said, “It’ll look like Fort Knox.”

Despite the robbery, the company has said El Gallo will maintain 2015 guidance of 50,000 ounces gold and 20,000 ounces silver.

 

April 25th, 2013

Portfolio manager Greg Orrell: “My belief in gold has not wavered” by the Gold Report
Gold buyers get physical as coin and jewellery sales surge: Frank Holmes by VantageWire
“We’re going to be courting exhibitors and writing cheques” at WRIC: Rick Rule by GoldSeek
Rob McEwen says sell-off probability “out into infinity,” still expects $5,000 gold by Stockboard
Update: U.S. stocks/bonds/dollar, gold, mining/exploration by the Grandich Report

Reaping the harvest

January 18th, 2013

Golden Predator to become royalties and streaming company Gold Bullion Royalty Corp

by Greg Klein

(Update: Effective February 22, 2013, Golden Predator Corp began trading as Americas Bullion Royalty Corp TSX:AMB.)

In a late afternoon announcement January 18, Golden Predator Corp TSX:GPD proposed a new name and strategy. Currently an advanced-stage exploration company moving towards production, Golden Predator plans to become Gold Bullion Royalty Corp, a company “focused entirely on royalty creation.”

The newly formed Golden Predator Canada Corp would continue advancing Yukon’s Brewery Creek towards its targeted 2014 gold production.

The proposed new company, Golden Predator Canada Corp,
would continue advancing Yukon’s Brewery Creek towards
its targeted 2014 gold production.

The company stated it “intends to build on its existing portfolio of 34 projects to increase revenue and provide lower risk exposure to shareholders through a variety of gold and silver projects in which it will retain a royalty, metal stream or other interest.

“The company plans to divest Golden Predator Canada Corp, which will continue to advance the Brewery Creek Project, as well as a number of other significant properties across the Yukon. This proposed segregation of its two main business components, by spin-out or other mechanism, is designed to maximize shareholder value by allowing the market to independently value two very different businesses.”

How that will happen has yet to be determined. Pending tax and legal advice, the process could involve “a plan of arrangement, dividend or other suitable method” which would have shareholders owning both companies, which would be staffed independently. Golden Predator Canada Corp would apply for a TSX or TSXV listing.

The Gold Bullion portfolio already includes gross proceeds royalties on Midway Gold’s TSXV:MDW Pan and Gold Rock deposits, a 4% GPR on Barrick Gold’s TSX:ABX DTR property, a 1% GPR on a nearby Barrick property and a 2% NSR on Silver Predator’s TSX:SPD Taylor Silver project.

The statement added, “The company controls a royalty package of 34 North America properties, most of which are owned by Gold Bullion Royalty Corp and under lease to a variety of companies including Evolving Gold [TSX:EVG], Orsa Ventures [TSXV:ORN], Columbus Gold [TSXV:CGT],” among others.

“The royalty portfolio also includes several deeded royalties covering projects of McEwen Mining [TSX:MUX], NV Gold [TSXV:NVX] and Silver Scott Mines [OTCPK:SILS].” While the royalty packages brought in $799,762 last year, the company expects royalty revenue to increase as its portfolio grows and projects advance.

The royalty portfolio is “unique in the mineral development industry due to its ability to receive the majority of projected revenues in-kind (gold bullion as opposed to cash),” the statement added.

Golden Predator Corp’s stock opened January 18 at $0.345, a penny higher than its previous close. The shares then reached $0.35 before closing on $0.33. With 153 million shares outstanding, the company had a press time market cap of $50.49 million.

McEwen reports Argentina Estimates of 68.58M oz Silver, 1.04M oz Gold M&I, 22.26M oz Silver, 344K oz Gold P&P

March 19th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningMcEwen Mining Inc TSX:MUX in joint venture with Hochschild Mining announced updated resource and reserve estimates for their San José Mine in Argentina. The resource estimate shows 1.16 million tonnes grading 560 g/t silver and 8.21 g/t gold for 20.8 million silver ounces and 305,000 gold ounces measured, 3.51 million tonnes grading 423 g/t silver and 6.53 g/t gold for 47.78 million silver ounces and 738,000 gold ounces indicated and 1.81 million tonnes grading 384 g/t silver and 5.3 g/t gold for 22.38 million silver ounces and 309,000 gold ounces inferred.

The reserve estimate shows 805,000 tonnes grading 475 g/t silver and 6.99 g/t gold for 12.29 million silver ounces and 181,000 gold ounces proven and 876,000 tonnes grading 354 g/t silver and 5.79 g/t gold for 9.97 million silver ounces and 163,000 gold ounces probable.

McEwen Mining holds a 49% interest in San José, with Hochschild holding the remaining 51%. Production for 2011 came to 5.87 million silver ounces and 80,952 gold ounces.

View Company Profile

Contact:
McEwen Mining Inc
Jenya Meshcheryakova
Investor Relations
647.258.0395
866.441.0690

Hochschild Mining
Charles Gordon
Investor Relations
44.0.20.7907.2934
44.0.20.7907.2931
or Marianna Adams
Investor Relations
44.0.20.7907.2933
44.0.20.7907.2931

by Greg Klein