Thursday 5th December 2019

Resource Clips


Posts tagged ‘ontario’

Tyler Fleming discusses the Ontario Securities Commission’s public awareness program

December 3rd, 2019

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International Montoro Resources finds greater massive sulphide potential at Elliot Lake, Ontario

December 3rd, 2019

by Greg Klein | December 3, 2019

After adding results from a ZTEM MVI inversion magnetic survey, estimates of the Pecors anomaly double in size.

 

The Serpent River property shows enhanced prospects for nickel, copper, gold, platinum and palladium, according to a recent compilation and analysis of geophysical data. International Montoro Resources TSXV:IMT reported two likely massive sulphide targets over the project’s Pecors anomaly. Now measured to about 5.7 kilometres by 4.2 kilometres by 2.2 kilometres, the anomaly extends to twice the size of a previous estimate.

International Montoro Resources finds greater massive sulphide potential at Elliot Lake, Ontario

A 2015 drill program tested the property’s magnetic anomaly.

The findings come from Mira Geoscience, considered a pioneer of advanced geological and geophysical modelling. The firm analyzed data using its Geoscience Analyst 3D visualization and exploration platform.

Following a 2007 VTEM survey, Montoro sunk two holes totalling 2,322 metres in 2015. One hole intersected a magnetic anomaly’s source, a gabbro body with minor sulphides showing nickel, copper and PGE values near the base. The other hole also intersected the gabbro, finding low-grade gold, platinum, palladium, copper and nickel values, the company stated.

“In essence we are exploring for a massive sulphide nickel-copper-PGE-gold deposit,” said president/CEO Gary Musil.

Last October the company announced a 51% earn-in on the 2,250-hectare Camping Lake property in Ontario’s Red Lake district. In British Columbia’s Cariboo region, Montoro completed rock and soil sampling last July on its 2,138-hectare property bordering Defense Metals’ TSXV:DEFN Wicheeda rare earths project.

Montoro’s portfolio also includes two northern Saskatchewan uranium properties held 50/50 with Belmont Resources TSXV:BEA.

Save Canadian Mining calls for short selling and private placement reform

November 22nd, 2019

by Greg Klein | November 22, 2019

With supporters including the TSX Venture Exchange, a new advocacy group has begun campaigning to improve investment regulations for junior miners. Officially launched this week, Save Canadian Mining intends to lobby government and regulatory agencies to reinstate the tick test on short selling and abolish the names committee requirement for private placements.

Along with the TSXV, supporters include Eric Sprott, the Ontario Prospectors Association, the Ontario Mining Association, newsletter writers and others.

Save Canadian Mining calls for short selling and private placement reform

Current market rules provide “an environment for predatory short-selling practices to thrive, particularly on our vulnerable junior markets,” said a news release from Terry Lynch. The SCM founder and CEO of Chilean Metals TSXV:CMX added, “For smaller-cap mining companies, short-selling activity spooks true investors into selling prematurely, effectively stunting the growth of these businesses at critical early stages.”

The group attributes increasing damage to a 2012 decision by the Investment Industry Regulatory Organization of Canada and the Canadian Securities Administrators, who cancelled a 142-year rule known as the tick test.

“The tick test restricted short selling to positive price changes at the time of the sale (i.e. an investor could only short a stock if it were on an upward trajectory),” according to the SCM statement. “This change was applied not only to the main listing venue of the TSX Venture Exchange, but was equally applied across all Canadian trading venues of which there are 14 today. Since the removal of the tick test, Canadian markets have evolved and there now exists a dynamic where Canada’s junior markets are finding it increasingly difficult to raise capital.”

Since then, Lynch added, “the advent of high-frequency trading and algorithmic trading are exploiting the combination of a lack of a tick test, with 14 different trading markets to the detriment of one of Canada’s most important industries.”

We look forward to working with Save Canadian Mining and industry stakeholders to engage Canada’s regulators in evaluating the reinstatement of a tick test, and in pursuit of continued improvements to our globally unique venture market.—Brady Fletcher
TSXV managing director

While maintaining that short selling contributes to a “healthy, efficient market,” TSXV managing director Brady Fletcher said, “The TSX Venture Exchange understands that certain changes to market operations in Canada, specifically related to the removal of the tick test, may have had unintended negative consequences for our junior, or more illiquid issuers.

“We look forward to working with Save Canadian Mining and industry stakeholders to engage Canada’s regulators in evaluating the reinstatement of a tick test, and in pursuit of continued improvements to our globally unique venture market, many of which were tabled for discussion in our 2019 Trading Roundtable report.”

SCM also calls on investment banks to allow companies to sell private placements to brokers without approval by a names committee. “Brokers can decide if it’s appropriate for a client, if their client has allocations with respect to investments that they’re able to invest without the names committee requirement, because that’s really just a barrier to trade,” Lynch tells ResourceClips.com.

The inspiration for SCM arose at last year’s PDAC conference, he says. “I was there on Sunday and it was just me and my boothmates, no investors. It was discouraging and we thought, ‘My God, we’re watching the demise of our industry.’ We’ve done okay in life and it’s not going to change our outlook, but we thought we should really try to make the changes we need, so that’s when I started it. I bought the domain that day.”

We think this is an across-the-board issue that every junior mining company, every junior mining investor, should be able to rally behind. The only guys who’d be against it would be the short sellers themselves.—Terry Lynch,
Save Canadian Mining founder

The group plans meetings with several offices, including Ontario’s ministries of mines and finance. “We’ll be lobbying the appropriate ministers in the Ford government to make them aware of the situation and hopefully get their support.

“There’s a lot of other issues but we’re not trying to re-invent PDAC. We’re really focused on these core junior mining issues.”

With short selling taking prominence, “we think this is an across-the-board issue that every junior mining company, every junior mining investor, should be able to rally behind. The only guys who’d be against it would be the short sellers themselves and they’re not being productive. They’re taking advantage of the situation and we think it’s got to stop. And if that stops, we could really turn the corner in junior mining and create a great market for our investors and allow companies to get the capital they need to go out there and make some discoveries.”

A clear focus and significant support might distinguish SCM from a previous group, the Vancouver-based Venture Capital Markets Association. Largely representing small-cap brokers and investors, the group formed in 2013 but petered out by 2016 with little attention from media, authorities or even the mining industry. Among other proposals, the VCMA wanted to place the B.C. Securities Commission under “a new independent board controlled by members who reflect the industry.”

See Save Canadian Mining’s website and petition.

OSC promotes financial literacy, BCSC to get new powers of investigation and enforcement

November 1st, 2019

by Greg Klein | November 1, 2019

That “sociopathic securities regulator,” as Conrad Black called it, has new programs scheduled to help protect investors from, well, other sociopaths. The Ontario Securities Commission will present in-person, online and over-the-phone events throughout November to mark Financial Literacy Month.

People need the tools to make informed financial decisions, and through our financial literacy and investor education activities we’re helping millions of people get smarter about money.—Tyler Fleming,
Ontario Securities Commission

Among them are community seminars, a November 19 telephone town hall, a multilingual website expanded with 16 more languages, a video series, further editions of Investor News and additional resources on the OSC’s consumer website GetSmarterAboutMoney.ca.

“Improving people’s financial knowledge, skills, confidence and behaviour is a key area of focus of the OSC,” said the commission’s Tyler Fleming. “People need the tools to make informed financial decisions, and through our financial literacy and investor education activities we’re helping millions of people get smarter about money.”

Late last month the British Columbia Securities Commission joined the provincial government to announce “sweeping changes” that would give the BCSC “some of the strongest powers in the country.” The proposed legislation would be the first significant amendments of the province’s Securities Act since 2011 and the most extensive since the act became law in 1996.

The new measures would boost maximum fines and prison terms, with minimum sentences applied to some repeat offenders. In some cases the BCSC could impose fines without a hearing. The commission would also gain stronger investigative powers.

OSC promotes financial literacy, BCSC to get new powers of investigation and enforcement

Other measures would allow the BCSC to seize property transferred to third parties, prevent fraudsters from getting a driver’s licence or vehicle plates, and seize registered retirement savings plans.

The commission would also gain stronger control over derivatives trading and corporate transactions.

“B.C. is setting the bar high when it comes to protecting people’s investments,” said Ermanno Pascutto of the Canadian Foundation for Advancement of Investor Rights. “These amendments to improve fine collection rates are some of the most far-reaching in Canada and align with international best practice. We are pleased that the B.C. government and the BCSC will make it a priority to return funds to victims of investment fraud.”

The stronger measures apparently respond to a series of 2017 stories by Postmedia journalist Gordon Hoekstra detailing several cases of unenforced sanctions despite scammers holding significant assets. Over the previous decade the BCSC collected less than 2% of $510 million in fines and payback orders while the OSC enforced about 18% of its penalties, he reported.

“Immediately after the Postmedia investigation, the BCSC filed at least 10 writs of seizure and sale in B.C. Supreme Court for financial fraudsters owing nearly $70 million in penalties, and renewed three enforcement orders, “ Hoekstra wrote in June 2018. “Also following the investigation, B.C. Finance Minister Carole James ordered the BCSC to improve its collection record and called for new tools and modernization of the Securities Act to improve collection.”

PDAC infographics: Highlighting mining’s contributions to Canada’s economy

October 28th, 2019

by Greg Klein | October 28, 2019

Although Canadian miners hold global stature, Canadians don’t always recognize the industry’s importance to our own country. Yet the numbers tell a story that’s not only impressive but vital to understanding an economy in which mining supports one in 29 jobs and provides the largest private sector source of native employment.

To state the case clearly, the Prospectors & Developers Association of Canada created a series of infographics outlining the industry’s contributions. Check them out yourself by scrolling down to see facts and figures for Canada overall and for each province or territory. Or click on the menu below for a direct link to each jurisdiction.

Canada nationwide | Yukon | Northwest Territories/Nunavut | British Columbia | Alberta | Saskatchewan | Manitoba | Ontario | Quebec | New Brunswick/Nova Scotia | Newfoundland and Labrador/Prince Edward Island

Posted with permission of the Prospectors & Developers Association of Canada.

 

PDAC infographics Highlighting mining’s contributions to Canada’s economy

 

PDAC Yukon mining infographic

 

PDAC NWT Nunavut mining infographic

 

PDAC BC mining infographic

 

PDAC Alberta mining infographic

 

PDAC Saskatchewan mining infographic

 

PDAC Manitoba mining infographic

 

PDAC Ontario mining infographic

 

PDAC Quebec mining infographic

 

PDAC Nova Scotia New Brunswick mining infographic

 

PDAC Newfoundland Labrador PEI mining infographic

Posted with permission of the Prospectors & Developers Association of Canada.

International Montoro Resources moves into Ontario’s Red Lake camp

October 23rd, 2019

by Greg Klein | October 23, 2019

A new acquisition brings another player into a busy northwestern Ontario mining and exploration region. Under an agreement announced October 23, International Montoro Resources TSXV:IMT can earn a 51% interest in the 2,250-hectare Camping Lake property on the Birch-Uchi-Confederation Lakes greenstone belt, home to the Red Lake gold deposits and Great Bear Resources’ (TSXV:GBR) attention-grabbing Dixie Lake property 20 kilometres north.

International Montoro Resources moves into Ontario’s Red Lake camp

Previous work at Camping Lake includes petrographic studies, rock, soil and lake sediment samples, IP and ground geophysics, as well as drilling. Conducted between 2010 and 2013, the work was carried out by Laurentian Goldfields, Kinross Gold TSX:K and AngloGold Ashanti NYSE:AU. Montoro plans an immediate compilation of exploration data prior to its own program.

Under the JV agreement with Falcon Gold TSXV:FG, Montoro would issue 1.5 million shares over one year and assume Falcon’s payments of $65,000 over four years. Montoro’s exploration commitments would call for $100,000 within one year and another $200,000 over the second year. On earning the initial 51%, Montoro could up its stake to 75% by paying $500,000. A 2% NSR applies.

In Ontario’s Elliot Lake district, Montoro has found nickel-copper-PGE potential in addition to historic uranium and rare earths mineralization on the company’s Serpent River project. Last month Montoro engaged Mira Geoscience to undertake an extensive study of the company’s drilling and geophysics data, along with previous work on or around the property by other companies and regional programs by the Ontario Geological Survey.

In central British Columbia’s Cariboo region, Montoro holds a 2,138-hectare property bordering Defense Metals’ TSXV:DEFN Wicheeda rare earths project.

In southern Quebec’s Saguenay-Lac-Saint-Jean region, Montoro holds the Duhamel titanium-vanadium-chromium prospect. The company’s portfolio also includes two northern Saskatchewan uranium properties held 50/50 with Belmont Resources TSXV:BEA.

Earlier this month Montoro closed a private placement first tranche of $47,500.

Read more about International Montoro Resources.

Read more about Ontario’s Red Lake camp.

The Marten Falls First Nation comments on a proposed road to the Ring of Fire

October 9th, 2019

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Stan Sudol: News and analysis on the Ring of Fire

September 25th, 2019

by Greg Klein | September 25, 2019

Stan Sudol News and analysis on the Ring of Fire

Among obstacles to developing Ontario’s Ring of Fire is public confusion on the issue, sometimes worsened by inaccurate media coverage. Recent news has prompted Republic of Mining editor Stan Sudol to update a comprehensive analysis he published last December.

Probably Canada’s most knowledgeable mining commentator, Sudol discusses recent band elections and the Ford government’s new approach to community negotiations, as well as providing considerable detail and insight on other aspects of this often misunderstood topic.

Reading it would benefit anyone concerned about this vital resource issue. Ontario residents might consider sending a link to their MPP—and maybe some local media outlets too.

Basic Facts About the Ring of Fire Including FNs’ Traditional Territories, by Stan Sudol

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. For Pistol Bay Mining TSXV:PST, however, the attraction is base metals more than the yellow stuff. The company’s Garnet deposit features a 2017 inferred resource showing 2.1 million tonnes averaging 5.78% zinc, 0.72% copper, 19.5 g/t silver and 0.6 g/t gold, using a 3% zinc-equivalent cutoff. 

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 Pistol Bay’s Fredart zone estimated 385,000 tonnes averaging 1.56% copper and 33.6 g/t silver. Historic drilling on the company’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.

International Montoro Resources employs high-tech analysis of Elliot Lake-region nickel-copper prospect

September 10th, 2019

by Greg Klein | September 10, 2019

A geophysical analysis on the property released last March found targets described as “good candidates for semi-massive nickel-copper mineralization.” Now International Montoro Resources TSXV:IMT has contracted Mira Geoscience to compile and analyze a much larger data set for the Pecors Lake project, part of the 1,840-hectare Serpent River property in Ontario’s Elliot Lake district.

International Montoro Resources employs high-tech analysis of Elliot Lake-region nickel-copper prospect

Nickel-copper potential brings new interest to
International Montoro Resources’ Serpent River property.

Historic drilling on Serpent’s southwestern area found uranium-rare earths mineralization. But extensive geophysical programs completed last year alerted Montoro to nickel-copper-PGE potential as well. A 3D model revealed that three assumed magnetic anomalies at Pecors actually comprise one contiguous anomaly estimated to be five kilometres long, two kilometres wide and two kilometres deep.

Considered pioneers of advanced geological and geophysical 3D and 4D modelling, Mira Geoscience will enter a library of data into its Geoscience Analyst 3D interactive platform. Included will be Ontario Geological Survey geochem and petrographic studies; OGSEarth data from drilling conducted by Teck Resources TSX:TECK.A/TSX:TECK.B, Rio Tinto NYSE:RIO, BHP Billiton NYSE:BHPand others on or near the property; federal government regional gravity and magnetic surveys; Montoro’s 22 drill holes; and downhole EM data for two holes reaching depths of one and 1.3 kilometres respectively.

In central British Columbia, Montoro had a 43-101 technical study completed in April for its recently acquired Wicheeda North property, adjacent to the Wicheeda rare earths deposit currently being drilled by Defense Metals TSXV:DEFN under option from Spectrum Mining. The report states that Wicheeda North “has the potential to host, and should continue to be explored for, rare earth element mineralization because it occurs within a favourable geological belt known to contain carbonatite-hosted REE mineralization.”

A 3D magnetic inversion was completed in June for the property, which Montoro has expanded to 2,138 hectares.

The company’s portfolio also includes the 2,300-hectare Duhamel property in central Quebec, considered prospective for nickel-copper-cobalt, as well as titanium-vanadium-chromium.

Along with Belmont Resources TSXV:BEA, Montoro shares 50/50 ownership of two uranium properties in northern Saskatchewan’s Uranium City area.

Last month Montoro closed a private placement first tranche of $47,500.