Tuesday 25th October 2016

Resource Clips

Posts tagged ‘ontario’

Nickel One Resources moves closer to PGE-copper-nickel acquisition in Finland

October 19th, 2016

by Greg Klein | October 19, 2016

Nickel One Resources moves closer to Finnish PGE-copper-nickel acquisition

Over $10 million in previous work has given Lantinen Koillismaa
resource estimates for two potential open pits.

Nickel One Resources’ (TSXV:NNN) Finland entry took another step forward with a binding letter agreement announced October 19. Already holding the Tyko project in western Ontario, Nickel One would get a 100% interest in Finore Mining’s (CSE:FIN) Lantinen Koillismaa platinum group element-copper-nickel project in north-central Finland. An LOI was announced in August.

The property would come through the purchase of Finore subsidiary Nortec Minerals Oy in a deal costing five million shares and 2.5 million warrants exercisable at $0.12 for two years. Nickel One has paid $50,000, which would be applied to a private placement of up to $100,000 into Finore following due diligence.

Benefiting from over $10 million in previous work, LK has 2013 resource estimates for two potential open pits.

The Kaukua deposit shows:

  • indicated: 10.4 million tonnes averaging 0.73 g/t palladium, 0.26 g/t platinum, 0.08 g/t gold, 0.15% copper, 0.1% nickel and 65 g/t cobalt

  • inferred: 13.2 million tonnes averaging 0.63 g/t palladium, 0.22 g/t platinum, 0.06 g/t gold, 0.15% copper, 0.1% nickel and 55 g/t cobalt

The Haukiaho deposit has three zones totalling:

  • inferred: 23.2 million tonnes averaging 0.31 g/t palladium, 0.12 g/t platinum, 0.1 g/t gold, 0.21% copper, 0.14% nickel and 61 g/t cobalt

The acquisition would bring Nickel One into “a mining-friendly jurisdiction with some of the best infrastructure in the world,” commented president Vance Loeber. The project also provides “a foothold in Finland from which we will be taking a hard look at other opportunities to continue to build a strong portfolio of projects,” he added.

Read more about Nickel One Resources and the Lantinen Koillismaa acquisition.

Pistol Bay Mining to take largest position in Ontario’s VMS-rich Confederation Lake

October 19th, 2016

by Greg Klein | October 19, 2016

Pistol Bay Mining to take largest position in Ontario’s VMS-rich Confederation Lake

Pistol Bay’s holdings will cover a 31-kilometre length of the VMS-rich Confederation Lake greenstone belt.


A new acquisition would make Pistol Bay Mining TSXV:PST the biggest claimholder in Ontario’s Confederation Lake greenstone belt. The 5,136-hectare package comprises all the regional claims held by AurCrest Gold TSXV:AGO and includes a zinc-copper-silver resource as well as an historic, non-43-101 estimate. Along with Pistol Bay’s optioned Dixie and Dixie 3 properties, the letter of intent announced October 19 would increase the company’s holdings to 7,050 hectares on the volcanogenic massive sulphide-rich belt.

With three cutoff grades, the package’s Arrow zone has resources showing:

3% zinc-equivalent cutoff

  • indicated: 2.07 million tonnes averaging 5.92% zinc, 0.75% copper, 21.1 g/t silver and 0.58 g/t gold

  • inferred: 120,550 tonnes averaging 2.6% zinc, 0.56% copper, 18.6 g/t silver and 0.4 g/t gold

5% zinc-equivalent cutoff

  • indicated: 1.76 million tonnes averaging 6.75% zinc, 0.79% copper, 22.3 g/t silver and 0.61 g/t gold

  • inferred: 51,630 tonnes averaging 3.86% zinc, 0.79% copper, 23.9 g/t silver and 0.58 g/t gold

10% zinc-equivalent cutoff

  • indicated: 633,000 tonnes averaging 14.3% zinc, 1.11% copper, 31.7 g/t silver and 0.85 g/t gold
Pistol Bay Mining to take largest position in Ontario’s VMS-rich Confederation Lake

Pistol Bay’s Dixie properties have been
undergoing field work and a review of historic data.

Additionally, the Copperlode A or Fredart zone has an historic, non-43-101 estimate of 425,000 tonnes averaging 1.56% copper. Exploration in the 1970s produced samples up to 1.46% molybdenum.

The 100% option would cost $25,000 and one million shares on closing and $25,000 90 days later, as well as $50,000 and one million shares on each of the four anniversaries following closing. In addition to regulatory approvals, the transaction needs the consent of Glencore plc, whose rights to the Confederation Lake property include a 2% NSR.

The companies expect to close within a week.

“Pistol Bay proposes an ambitious exploration program that will not only pursue existing targets and known VMS deposits, but will use the latest airborne geophysical survey technologies to explore the whole area to a greater depth than was possible in the past,” said president Charles Desjardins.

Earlier this month the company announced MPH Consulting will review historic geophysical data on Pistol Bay’s Confederation Lake-region Dixie properties, where field work began in September. Historic drilling has found zinc, copper and silver, while the recently optioned Dixie 3 project comes with an historic, non-43-101 estimate of 82,500 tonnes averaging 1% copper and 10% zinc.

The company has a joint venture with a Rio Tinto NYSE:RIO subsidiary on the C-5 uranium property in Saskatchewan’s Athabasca Basin. Having already earned 75% of its option, Rio has stated its intention to acquire the full 100%.

Pistol Bay closed a $563,450 private placement last August.

Ottawa resident Larry Mantha recounts how a dog dug up a nugget in his front yard

October 14th, 2016

…Read more

Harold Gibson says Laurentian University’s Metal Earth project intends to transform our understanding of how mineral deposits originated

October 7th, 2016

…Read more

MPH Consulting to review Ontario zinc-copper-silver data prior to Pistol Bay’s drill program

October 6th, 2016

by Greg Klein | October 6, 2016

A company with experience spanning 40 years and 70 countries will apply its expertise to Pistol Bay Mining’s (TSXV:PST) Dixie projects. MPH Consulting has been contracted to review historic geophysical data from the zinc-copper-silver options about 35 kilometres southeast of Red Lake in Ontario’s Confederation Lake greenstone belt, Pistol Bay announced October 5.

MPH Consulting to review Ontario zinc-copper-silver data prior to Pistol Bay’s drilling

“Because of the complexity of the historic data, the company has requested a critical review of all the past geophysical surveys that will lead to prioritizing targets for future exploratory drilling,” Pistol Bay stated.

Historic work found a geophysical anomaly below the Dixie 19 zone. Two holes from 2002 ended before the anomaly, intersecting:

  • 9.71% zinc, 0.2% copper and 10.7 g/t silver over 1.25 metres in downhole depth

  • 5.32% zinc over 1.25 metres

Historic drilling on other zones found:

Dixie 17

  • 7.34% zinc and 1.4% copper over 9.5 metres

Dixie 18

  • 15.44% zinc, 0.43% copper and 20.9 g/t silver over 4.3 metres

Noranda calculated an historic, non-43-101 estimate for Dixie 18 of 136,000 tonnes averaging 14% zinc.

Recent field work has located historic drill hole collars on Dixie 18, 19 and 20, Pistol Bay added. Additional field work will focus on Dixie 17. Precise positioning using differential GPS will help model the mineralized zones.

Should all go to plan, a fall drill program will follow the MPH review.

Early last month Pistol Bay announced an option to acquire the 640-hectare Dixie 3 property, about eight kilometres south of the other Dixies. Dixie 3 comes with an historic, non-43-101 estimate of 82,500 tonnes averaging 1% copper and 10% zinc.

In Saskatchewan’s Athabasca Basin, Pistol Bay JVs with a Rio Tinto NYSE:RIO subsidiary on the C-5 uranium property. Rio has so far earned 75% of its option and has stated its intention to acquire the full 100%.

In August Pistol Bay closed a $563,450 private placement.

Infographic: BonTerra Resources well-financed for more Abitibi drilling

October 4th, 2016

October 4, 2016

With two Abitibi gold projects and recent financings totalling $5.36 million, BonTerra Resources TSXV:BTR prepares for another season of drilling. This infographic outlines the company’s projects, achievements and future plans.

BonTerra Resources financed for more Abitibi drilling

Franco-Nevada CEO David Harquail explains his family’s $10-million donation to the university, part of $114 million in recent pledges for mining-related studies

September 29th, 2016

…Read more

Kapuskasing Gold drills near-surface 4.68 g/t over 1.6 metres in northern Ontario

September 27th, 2016

by Greg Klein | September 27, 2016

A brief drill program of three shallow holes confirmed significant gold mineralization on the Rollo project in northern Ontario, Kapuskasing Gold TSXV:KAP announced September 27. The 150-metre summer campaign tested continuity of the property’s Racicot gold showing. The previous summer’s channel sampling found results up to 8.82 g/t gold over 0.6 metres. Grab samples assayed 1 g/t, 1.89 g/t and 11.41 g/t gold.

Kapuskasing Gold drills 4.68 g/t over 1.6 metres in northern Ontario

Some highlights from the most recent program show:

Hole RO-16-01

  • 3.24 g/t gold over 0.7 metres, starting at 8.5 metres in downhole depth

  • 2.32 g/t over 0.5 metres, starting at 10.6 metres

Hole RO-16-02

  • 3.3 g/t over 0.9 metres, starting at 8.2 metres

Hole RO-16-03

  • 4.68 g/t over 1.6 metres, starting at 14 metres
  • (including 8.05 g/t over 0.8 metres)

True widths were unavailable.

Results support an interpretation that associates mineralization with a red syenite dyke that strikes approximately 100 degrees, the company stated

Located along a projected extension of the Destor-Porcupine fault zone, Rollo sits between IAMGOLD’s (TSX:IMG) Cote Lake gold deposit and Goldcorp’s (TSX:G) Borden gold project. Last week Richmond Minerals TSXV:RMD announced results from its Ridley Lake property about three kilometres southwest of Rollo, hitting up to 1.26 g/t gold over 33 metres, including 4.11 g/t over 7 metres.

Future plans for Kapuskasing include additional drilling and ground geophysics. The company intends to resume work this autumn.

A 10-hole, 1,000-metre program at Kapuskasing’s West Keefer property found no significant gold but did identify lithologies favourable for hosting mineralization, the company added.

Kapuskasing holds seven gold properties along extensions of the Destor-Porcupine structure or the Borden gold project. The company closed a $246,600 private placement in July.

Did the man with the golden … get the puck out? Canada’s mint doesn’t even know

September 20th, 2016

by Greg Klein | September 20, 2016

Among the period pieces of the ’50s were a novel and resulting movie referring to a drug addict as The Man with the Golden Arm. Ottawa prosecutors say a Royal Canadian Mint employee had another golden part of his anatomy.

Did the man with the golden get the puck out? Canada’s mint doesn’t even know

The Royal Canadian Mint: Oblivious to inside theft?

He smuggled bullion through his rectum, the Crown claims. Accused Leston Lawrence awaits decision on charges of theft, laundering the proceeds of crime, possession of stolen property and breach of trust, the Ottawa Citizen reported September 20.

Prior to that his mint duties included scooping gold from buckets, the paper stated. A number of times Lawrence took 7.4-ounce gold pieces called “pucks” to a gold buyer, the Crown maintained. He’d then deposit cheques of about $6,800, according to the allegations.

A bank teller became suspicious. After all Lawrence worked for the mint, was raking in cheques from a gold-buying business and kept wiring money out of the country.

“Records revealed 18 pucks had been sold between November 27, 2014 and March 12, 2015,” the Citizen noted. “Together with dozens of gold coins that were redeemed, the total value of the suspected theft was conservatively estimated at $179,015.”

Cops said they found four more “pucks” in Lawrence’s safety deposit box.

He’s since been fired. But his lawyer says there’s absolutely zero evidence his gold came from the mint. Moreover, the mint has absolutely zero knowledge of any missing gold.

The Crown points to a container of Vaseline found in Lawrence’s employee locker.

The judge reserved decision until November 9.

Why stop there?

September 20th, 2016

The world’s biggest new diamond mine hardly satisfies NWT appetites

by Greg Klein

Self-congratulation might have been irresistible as 150 visitors from across Canada and the world flocked to a spot 280 kilometres northeast of Yellowknife to attend Gahcho Kué’s official opening on September 20. But there’s no evidence the mining and exploration crowd will waste much time resting on their laurels. JV partners De Beers and Mountain Province Diamonds TSX:MPV continue their pursuit of additional resources. And within sight of the Northwest Territories’ new mine, Mountain Province spinout Kennady Diamonds TSXV:KDI hopes success will repeat itself right next door.

Twenty-one years in the making and the world’s largest new diamond mine in 13 years, Gahcho Kué’s expected to give up 54 million carats over a 12-year lifespan. Average price estimates for the three pipes come to $150 per carat. That would provide Canada with gross value added benefits of $6.7 billion, $5.7 billion of that going to the NWT, which would gain nearly 1,200 jobs annually, according to an EY study released earlier this month.

The world’s biggest new diamond mine hardly satisfies NWT appetites

Gahcho Kué partners hope to extend the
mine well past its 12-year projection.

That’s a strong rebound for the territory’s biggest private sector industry, following last year’s shutdown of the Cantung Tungsten mine and De Beers’ Snap Lake. The closures left the NWT with just two mines, both diamond operations in the Lac de Gras region that also hosts the newcomer.

But those two mines, the Rio Tinto NYSE:RIO/Dominion Diamond TSX:DDC 60/40 JV at Diavik and Dominion’s majority-held Ekati, maintained Canada’s place as the world’s third-largest producer by value.

Holding 51% and 49% respectively of Gahcho Kué, De Beers and Mountain Province hope to prolong its duration. Rather expansively maybe, the slightly junior partner outlines a multi-phase program.

Should all go to plan, Phase II would upgrade resources into reserves, maybe adding as much as five years to the operation. Phase III would deepen the Tuzo pipe, bringing another three years. Phase IV would do the same to the 5034 and Hearne kimberlites, as well as bring on the new Tesla pipe. If plans, projections and prayers come to fruition, Gahcho Kué might end up with more than 20 years of operation. With optimism drowning out any puns regarding pipe dreams, Phase V calls for “new targets.”

At least that’s the tale told by Mountain Province. De Beers acts as project operator.

Another company also holds high hopes, as well as about 71,000 hectares to the north, west and south of Gahcho Kué. Mountain Province spun out the Kennady North project into Kennady Diamonds, which has been advancing its own ambitious timeline.

The project’s Kelvin kimberlite has a maiden resource slated for this quarter and a PEA for Q4. Subject to those results, the company hopes to take Kelvin to feasibility next year, and to complete resource estimates for the Faraday 1, 2 and 3 kimberlites less than three kilometres northeast.

On the eve of the Gahcho Kué grand opening, Kennady pronounced itself pleased with this year’s 612-tonne bulk sample recovery, averaging 2.09 carats of commercial-sized stones per tonne from Kelvin’s north limb. With last year’s south limb grade coming to 2.02 carats per tonne, the results show “remarkable consistency in overall diamond grade across the full extent of the body,” said president/CEO Rory Moore. “This is a positive attribute from both an evaluation and a mining perspective.”

In a crucial step, a parcel goes to Antwerp next month for a price evaluation, with results expected about three weeks later.

The world’s biggest new diamond mine hardly satisfies NWT appetites

Kennady Diamonds hopes for a
glittering future just north of Gahcho Kué.

Two rigs currently have the Faraday kimberlites subject to an 8,000-metre summer program of both exploration and delineation drilling. Out of 15 holes reported so far, 14 revealed kimberlite.

The summer program follows a 10,712-metre winter campaign that discovered Faraday 3 as well as four diamonds in drill core, two each from Faradays 1 and 3.

Two mini-bulk samples released this year for Faraday 1 averaged 4.65 carats per tonne and three carats per tonne respectively. Faraday 2 minis averaged 2.69 carats, 3.04 carats and 4.48 carats per tonne.

Last month Kennady expanded its property by another 4,233 hectares directly south of Gahcho Kué. But the company’s focus remains on the Kelvin-Faraday corridor north of the new mine.

As for De Beers, its other Canadian focus since Snap Lake’s demise has been the Victor mine in Ontario’s James Bay region. With less than five years of operation left, it too faces doom. Another seven years could potentially come from the Tango kimberlite, seven kilometres away and now undergoing a federal environmental review.

Local relations, however, have taken an unexpected turn. Last week De Beers Canada chief executive Kim Truter told CBC the company would go beyond the duty to consult and seek the Attawapiskat community’s outright consent for Tango. “It’s pointless us actually operating in these first nations areas if we don’t have local support,” he said.

The network added, “Support has been shaky in the first nation since the signing of the original agreement with De Beers in 2005. Band officials boycotted and picketed the grand opening of the mine in 2008 and the road into the mine has been blockaded several times, including in 2013.”

But Truter’s remarks drew an angry response from newly elected chief Ignace Gull, the Timmins Press reported September 19. The paper quoted a social media post in which he stated, “Attawapiskat is in a midst of suicide crisis and we need to deal with this first and they have to back off instead of threatening us.”

In Quebec’s James Bay region, Stornoway Diamond TSX:SWY began ore processing at its Renard project in July, expecting to achieve commercial operation by year-end. The province’s first diamond mine expects to average 1.6 million carats annually for an initial 14 years.

Back at Gahcho Kué, visitors celebrated the grand opening as a possible strike loomed. Last week CBC reported that mediation had broken down between a contractor and a Teamsters local representing around 60 camp kitchen and cleaning staff.