Thursday 20th October 2016

Resource Clips

Posts tagged ‘platinum’

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.

Cry, the resource-rich country

September 30th, 2016

Legal or illegal, South African miners face perils numerous and deadly

by Greg Klein

South African gold mining really got its start with an 1886 discovery and subsequent rush at Langlaagte, then an isolated farm. Already the world’s largest diamond producer, the country went on to become the behemoth of global gold reserves until 2007. But all that wealth left a damning legacy in an extensive network of abandoned tunnels that lure illegal and desperate gold hunters, often to their deaths. A cave-in and several fatalities in mid-September brought Langlaagte back to international prominence. It’s just one of many such stories playing out in South Africa.

The rising death toll shows the problem’s “spiralling out of control,” Bloomberg quoted Christo de Klerk. Addressing a Johannesburg news conference on September 27, the CEO of Mines Rescue Services said his highly trained volunteer group had recovered 24 bodies so far this year, the largest number in seven years of records.

Legal or illegal, South African miners face perils numerous and deadly

The impetus to Johannesburg’s growth came
from an industry with a highly disturbing death rate.

Even this year’s total marks “the tip of the iceberg,” he stressed. Maybe 90% of the casualties never get reported, which would mean hundreds of missing people have died in their graves.

Speaking with Warren Dick of, de Klerk explained that many of the mines have been abandoned for 60 to 70 years, lacking maps or plans. Without ventilation, gas build-ups can occur. Moreover the diggers often target the pillars, increasing their instability and exacerbating an already dangerous enterprise.

It’s no way to live and a horrible way to die, as shown by some very disturbing photos released by de Klerk’s organization.

This is the world of the zama-zamas, people who might live underground for months at a time. Often working in gangs, they haul in explosives, generators and stockpiles of food, de Klerk told Bloomberg.

Deprived of sunlight for so long, “their skin turns grey,” Matthew Hart wrote in his 2013 book Gold: The Race for the World’s Most Seductive Metal. “The wives and prostitutes who live with them turn grey. In South Africa they call them ghost miners. They inhabit an underground metropolis that in some goldfields can extend for 40 miles, a suffocating labyrinth in which the only glitter is the dream of gold.”

Gang warfare delivers additional menace. De Klerk said most of the illegal miners come from Mozambique, Zimbabwe and Lesotho, whose factions fight underground turf wars. His rescuers have encountered murder victims, in one case a grisly pile of 10 bodies that had been shot execution style, he told

The deadly business puts conflict gold on the market. A spokesperson for the SA police elite Hawks unit told Hart that organized crime sends the illicit gold to the Persian Gulf, India and Russia, where it’s laundered into the legitimate bullion trade. “Big players” in police and government support the trade, he said. A 2001 industry study by Peter Gastrow “reached the same conclusion: that an untouchable elite was behind the theft of gold,” Hart wrote.

While rogue miners are said to be predominantly immigrants, they include some South Africans, even legitimate mine employees looking for extra income. In February Sibanye Gold NYSE:SBGL reported two contractors became trapped after entering an abandoned part of the company’s Cooke mine at the end of their shift.

That same day Sibanye reported a fatality in one of its own operations. The SA industry remains deadly, legal or illegal. Harmony Gold Mining NYSE:HMY, for example, reported six separate fatalities so far this year, nearly reaching last year’s total of seven.

In the first eight months of this year 61 people died in South African mines, according to Department of Mineral Resources numbers reported by Last year’s 12-month total came to 77, according to the industry’s Chamber of Mines.

But in February the Mail and Guardian stated the number of accidents, fatal or not, had risen by 500 in the 12 months prior to February. “In the past five years, there have been at least eight accidents a day in mines, injuring more than 15,000 people,” wrote Athandiwe Saba.

That’s not counting occupational diseases. Earlier this month acting chief mines inspector Xolile Mbonambi told an industry conference that 6,577 cases of mining-related diseases were recorded in 2014, reported. Interim figures for 2015 show a slight improvement in the number of silicosis cases but an increase in TB, which Mbonambi called “an indictment on the industry broadly.”

“Moreover, he highlighted that the repercussions of fatalities extended well beyond the boundaries of mines and had substantial socio-economic impacts, affecting the poorest of the poor locally and communities of neighbouring countries the most,” added.

As for the violence, it doesn’t end with gang rivalries. Rival unions have been killing each other’s members at the rate of several murders a year. Meanwhile the newcomer Association of Mineworkers and Construction Union gains members at the expense of the National Union of Mineworkers. Some observers attribute the NUM slide to a lack of confidence following Marikana, where in a single burst of gunfire police killed 34 striking platinum miners in 2012.

If there’s truth to the accusations, South African mining might harbour yet another threat. After Sikhosiphi Bazooka Radebe was gunned down in front of his family last March, some people attributed the murder to his work as an anti-mining activist.

September 16 marked the 30th anniversary of the country’s Kinross disaster, which killed 177 miners.

Update: Ring of Fire road study stalls as KWG rail study proceeds

August 22nd, 2016

by Greg Klein | August 22, 2016

Hours after KWG Resources CSE:KWG updated its Ring of Fire rail proposal, CBC reported that a highly anticipated government-funded road study simply called for more study. Specifically excluded from its scope, the network added, was a route to the potential mining sites.

CBC obtained a copy of the document entitled All Season Community Road Study, Final Report June 30, 2016 and quoted this excerpt:

KWG’s Ring of Fire rail study proceeds, government road announcement anticipated

KWG looks to China to support its proposed railway.

“This study has always been considered to be focused on an all-season community service road rather than an industrial road to connect to the Ring of Fire mineralized zone. Its intention was always to (1) link the four communities together and (2) link the communities to the existing highway system.”

Release of the federally and provincially funded report had been expected since its scheduled completion in June. Ontario has pledged $1 billion to Ring of Fire infrastructure and asked Ottawa for matching funds.

“This study was going to be the one that was going to give us the road map forward, literally,” the network quoted NDP MP Charlie Angus. “Now it’s just going to be kicked down the road for more delay, more study and more excuses.”

CBC stated that Ontario mines minister Michael Gravelle “said those discussions are ongoing and there is no timeline for coming to definitive answers. The study was led by the First Nations and it’s up to them to release it to the public, he added.”

Besides the report’s disappointing lack of a call to action, news that the study excluded the Ring’s mineral deposits will take many observers by surprise. Noront Resources TSXV:NOT favoured an all-season east-west road that would connect its deposits and four native communities with Highway 599 at Pickle Lake, which leads south to a Canadian National Railway TSX:CNR line at Savant Lake.

KWG maintained that rail would be necessary to develop the region’s chromite assets. Noront countered that its nickel-copper-platinum-palladium deposits should be developed first, pending better market conditions for chromite. A road would be the faster, cheaper option, the company argued. KWG has said Chinese investors have shown interest in a railway.

Hours before CBC posted its exclusive, KWG announced that a “conditional bankable feasibility study” for its proposed railway should be complete by year-end. The company stated it has “agreed on the deliverables and timetable” with China Railway First Survey and Design Institute Group to examine a 340-kilometre north-south route linking its properties with CN at Exton.

Noront’s flagship Eagle’s Nest nickel-copper-PGE project reached feasibility in 2012. In an optimistic news release earlier this month, the company stated it “anticipates that mine construction will begin in 2018 when road construction starts, resulting in first concentrate production in 2021.”

Noront’s other Ring of Fire assets include the Blackbird chromite deposit and the Black Thor and Black Label chromite deposits. Noront and KWG hold 70%/30% respectively of the Big Daddy chromite deposit and 85%/15% of the McFaulds copper-zinc deposits. Noront is KWG’s largest shareholder.

Noront recently signed a definitive agreement to buy a 75% stake in MacDonald Mines Exploration’s (TSXV:BMK) regional properties, increasing Noront’s portfolio to around 75% of the Ring’s staked claims.

KWG also holds an 80% option on the Koper Lake project with its Black Horse chromite deposit.

Both companies have faced recent public criticism. Last week CBC reported the Neskantaga First Nation issued a “cease and desist” order to Noront, after the company announced a drill program. An online video posted by KWG drew widespread censure for its display of bikini-clad women.

A second flagship

August 11th, 2016

Nickel One Resources plans a Finnish acquisition as well as Ontario drilling

by Greg Klein

A position in Scandinavia would give Nickel One Resources TSXV:NNN a dual approach or, as president/CEO Vance Loeber describes it, “a double-barrelled shotgun.” On August 11 the company announced an LOI to gain a Finore Mining CSE:FIN subsidiary with a 100% interest in Lantinen Koillismaa, a nickel-copper-PGE deposit in an active mining region of Finland. Additionally, encouraged by positive results from last spring’s assays, the company plans to resume drilling on its Tyko project in Ontario.

Nickel One Resources plans Finnish acquisition as well as Ontario drilling

With equally spectacular aurora borealis, arctic Finland
boasts far greater infrastructure than northern Canada.

A 3,750-hectare property just 65 kilometres south of the Arctic Circle, LK actually enjoys a favourable location—and that demonstrates the contrast between the Canadian and Scandinavian north. An all-weather, government-maintained road comes right to the property, a rail line runs 40 kilometres away and Oulu, a Gulf of Bothnia port that’s home to 200,000 people, sits 160 kilometres west. Work is practical right through the winter, as several mines and three smelters in the region attest.

“The local community is very supportive, the Finnish Geological Survey is very supportive and it’s a beautiful place to work,” enthuses Loeber.

Finore took LK to resource level in 2013 for two deposits with open pit potential. 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

Three zones at the Haukiaho deposit total:

  • 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

Further study might put a new perspective on the resource. “Although the plan is to look at it from a fresh approach, a higher-grade/lower-tonnage point of view, we’re not going to lose sight of the higher-tonnage aspect either,” explains Loeber. “But in the short term we’ll be looking at some higher-grade tonnage, both through additional exploration and a re-engineered 43-101 report.”

A new perspective maybe, but from experienced eyes. “With this acquisition we also get the combined geological talent of Finore’s founders, Mohan Vulimiri and Peter Tegart,” Loeber points out. “They’re pretty serious guys so it’s not like we’re going in blind.”

Another Finland veteran is Nickel One VP of exploration and former PDAC president Scott Jobin-Bevans. “He did his PhD dissertation on this type of mineralization,” says Loeber.

The deal would cost Nickel One five million shares. The company would also contribute up to $100,000 towards any future private placement undertaken by Finore. Loeber doesn’t offer an anticipated closing date but says his team wants the deal wrapped up “sooner rather than later.”

But looking at Finland doesn’t mean neglecting western Ontario. “Tyko is still very much in our sights. We had some great results in our initial program and we’re planning a late-summer, early-fall follow-up program.”

That would take the crew about 40 kilometres north of Hemlo in an area that’s surprisingly more remote than arctic Finland. Still, Tyco’s accessible by highway, logging roads and float plane.

The 14 holes and 1,780 metres drilled so far this year followed 13 holes and 2,230 metres sunk by North American Palladium TSX:PDL up to 2007. Nine North American holes revealed mineralization.

Near-surface intercepts reported by Nickel One in June returned as much as 1.47% nickel, 0.49% copper and 0.71 ppm PGEs over 6.05 metres. Another assay showed 1.06% nickel, 0.35% copper and 0.65 ppm PGEs over 6.22 metres. Along with the other results, the company sees increasing optimism in its magma conduit theory suggesting a potential link between the property’s RJ and Tyko zones, 1.5 kilometres apart.

The extent of Tyco’s upcoming program remains “finance-dependent,” Loeber says. But given market response to the LOI, he’s confident of raising funds. As for a closing date for LK, “We’re going to make this happen as quickly as we can.”

Exploring opportunity

June 17th, 2016

A capacity crowd attends the first annual Vancouver Commodity Forum

by Greg Klein
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A capacity crowd attends the first annual Vancouver Commodity Forum


“There’s excitement in the air,” said Cambridge House International founder Joe Martin. That’s the mood he senses as junior explorers emerge from the downturn. And certainly optimism was evident on June 14 as more than 450 people converged on the Vancouver Commodity Forum for an afternoon of expert talks amid a showcase of two dozen companies. Keynote speakers included Martin, Chris Berry of the Disruptive Discoveries Journal, Jon Hykawy of Stormcrow Capital, John Kaiser of Kaiser Research Online and Stephan Bogner of Rockstone Research.

A capacity crowd attends the first annual Vancouver Commodity Forum

Lithium, not surprisingly, stood out as a commodity of interest. While cautioning against over-enthusiasm for the exploration rush, Berry and Hykawy each affirmed the need for juniors to find new sources of the metal. Cobalt and scandium featured prominently too, as did other commodities including what Kaiser called “the weird metals”—lesser known stuff that’s vital to our lives but threatened with security of supply.

Kaiser also noted he was addressing a crowd larger than his last PDAC audience, another indication that “we’ve turned the corner.”

Attendees also met and mingled with company reps. Potential investors learned about a wide gamut of projects aspiring to meet a growing demand for necessities, conveniences and luxuries.

Presented by Zimtu Capital TSXV:ZC, the forum’s success will make it an annual event, said company president Dave Hodge. Berry emceed the conference, holding the unenviable task of “making sure Dave stays well-behaved.”

Read interviews with keynote speakers:

Meet the companies

Most companies were core holdings of Zimtu, a prospect generator that connects explorers with properties and also shares management, technical and financing expertise. Zimtu offers investors participation in a range of commodities and companies, including some at the pre-IPO stage.

After sampling high-grade lithium on its Hidden Lake project in the Northwest Territories earlier this month, 92 Resources TSXV:NTY plans to return in mid-July for a program of mapping, exposing spodumene-bearing pegmatite dykes, and channel sampling. The company closed the final tranche of a private placement totalling $318,836 in April. Hidden Lake’s located near Highway 4, about 40 kilometres from Yellowknife and within the Yellowknife Pegmatite Belt.

With one of the Athabasca Basin’s largest and most prospective exploration portfolios, ALX Uranium TSXV:AL has a number of projects competing for flagship status. Among them is Hook-Carter, which covers extensions of three known conductive trends, one of them hosting the sensational discoveries of Fission Uranium TSX:FCU and NexGen Energy TSXV:NXE. ALX’s strategic partnership with Holystone Energy allows that company to invest up to $750,000 in ALX and retain the right to maintain its ownership level for three years. ALX closed a private placement first tranche of $255,000 last month, amid this year’s busy news flow from a number of the company’s active projects.

A capacity crowd attends the first annual Vancouver Commodity Forum

Arctic Star Exploration TSXV:ADD boasts one of northern Canada’s largest 100%-held diamond exploration portfolios. Among the properties are the drill-ready Stein project in Nunavut and others in the Lac de Gras region that’s the world’s third-largest diamond producer by value. North Arrow Minerals TSXV:NAR holds an option to earn up to 55% of Arctic Star’s Redemption property.

Aurvista Gold TSXV:AVA considers its Douay property one of Quebec’s largest and last undeveloped gold projects. The Abitibi property has resources totalling 238,400 ounces of gold indicated and 2.75 million ounces inferred. Now, with $1.1 million raised last month, the company hopes to increase those numbers through a summer program including 4,000 metres of drilling. Douay’s 2014 PEA used a 5% discount rate to forecast a post-tax NPV of $16.6 million and a post-tax IRR of 40%.

Looking for lithium in Nevada, Belmont Resources TSXV:BEA now has a geophysics crew en route to its Kibby Basin property, which the company believes could potentially host lithium-bearing brines in a similar geological setting to the Clayton Valley, about 65 kilometres south. Results from the gravity survey will help identify targets for direct push drilling and sampling.

A mineral perhaps overlooked in the effort to supply green technologies, zeolite has several environmental applications. Canadian Zeolite TSXV:CNZ holds two projects in southern British Columbia, Sun Group and Bromley Creek, the latter an active quarrying operation.

With a high-grade, near-surface rare earths deposit hosted in minerals that have proven processing, Commerce Resources TSXV:CCE takes its Ashram project in Quebec towards pre-feasibility. The relatively straightforward mineralogy contributes to steady progress in metallurgical studies. Commerce also holds southeastern B.C.’s Blue River tantalum-niobium deposit, which reached PEA in 2011 and a resource update in 2013.

Permitted for construction following a 2014 PEA, Copper North Mining’s (TSXV:COL) Carmacks copper-gold-silver project now undergoes revised PEA studies. The agenda calls for improved economics by creating a new leach and development plan for the south-central Yukon property. In central B.C. the company holds the Thor exploration property, 20 kilometres south of the historic Kemess mine.

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The world’s most popular mints: Key facts and comparisons

June 1st, 2016

Story by Jeff Desjardins, Visual Capitalist | Infographic by JM Bullion

In the precious metals industry, trust is paramount. That’s why if you own gold or silver bullion, there is a good chance it comes from one of the world’s few internationally recognized mints.

This infographic from JM Bullion highlights key facts and comparisons about some of the world’s most popular mints, including the United States Mint, the Royal Canadian Mint, the Perth Mint, PAMP Suisse and Sunshine Minting.

The world’s most popular mints: Key facts and comparisons


Some quick facts on each of the world’s most popular mints:

The United States Mint was founded in 1792 and now has minting operations in Philadelphia, Denver, West Point and San Francisco. The mint produced more than 17 billion coins for circulation in 2015, the fastest annual pace since 19.4 billion coins were struck in 2001. Legend holds that George Washington donated some of his personal silver to the mint for manufacturing early coinage.

The Royal Canadian Mint was founded in 1908 in Ottawa. It produces over one billion coins per year, with the Silver Maple Leaf as its signature bullion offering. In 2007, the Royal Canadian Mint created the largest coin in the world—a 100-kilogram, 99.999% pure, $1-million gold bullion coin.

The Perth Mint was founded in 1899. It was originally built to refine metal from the gold rushes occurring in Western Australia, while also distributing sovereigns and half-sovereigns for the British Empire. In 1970, the mint’s jurisdiction was moved to the state government of Western Australia. The Australian Kookaburra (1990-), Koala (2007-) and Kangaroo (1990-1993, 2016-) are some of the mint’s most popular products among bullion buyers.

PAMP Suisse, a private mint, was founded in Switzerland in 1977. The mint refines an impressive 450 tonnes of gold annually, and much of the gold used for worldwide jewelry production comes from PAMP. The mint also produces the popular Fortuna bar, which is available in gold, silver and platinum, with sizes ranging from one gram to 100 ounces.

Sunshine Minting is another private mint. Founded in Idaho in 1979, Sunshine mints 70 million ounces of bullion each year, including its version of the popular Silver Buffalo Round. Sunshine Minting is also the primary supplier of one-ounce silver planchets (round metal disks, ready to be struck as coins) to the United States Mint.

Story by Jeff Desjardins, Visual Capitalist | Infographic by JM Bullion

Under the hammer

April 21st, 2016

From the mantle, Myanmar and Mars, rare rocks go on the auction block

by Greg Klein

These have been the days of the $22-million no-sale, the ruby-red beauty of Burma and the scream from outer space. Over two days, two rival auction houses offered up some of the most exceptional stones known to this planet and others.

From the mantle, Myanmar and Mars, rare rocks go on the auction block

Sotheby’s rejected $2.2 million
a carat for the Shirley Temple Blue.
(Photo: Sotheby’s)

The much-anticipated main event at Sotheby’s April 19 Magnificent Jewels sale lasted less than a minute before the hammer came down on an anti-climactic $22 million. The auctioneer rejected the bid and withdrew the lot, having wanted something in the range of $25 million to $35 million. Such was the optimism inspired by the Shirley Temple Blue diamond, a 9.54-carat, potentially internally flawless, cushion-cut fancy stone once owned by the child phenom.

Still, $22 million was a tad more than the $7,210 paid by Temple’s dad in 1940. But extraordinary expectations have been provoked by some extraordinary prices.

Earlier this month Sotheby’s unloaded the De Beers Millennium Jewel 4 in Hong Kong for $31.8 million, a record price for Asia. In November Christie’s auctioned the 16.08-carat Sweet Josephine for $28.5 million. The following day the same buyer—a father rather more extravagant than Temple’s—paid Sotheby’s “a new record price for any gemstone and per carat” for the $48.4-million Blue Moon of Josephine.

This time around Sotheby’s performed relatively modestly, selling five items for over $1 million each, with the top-selling lot getting $4.56 million. That was for a “magnificent platinum and fancy purplish pink diamond ring” that came in close to the $5-million maximum estimate. In all, the auction pulled in nearly $29.89 million. But the Shirley Temple disappointment held the total far back from that of a Sotheby’s event 12 months earlier, which raked in a record $65.08 million.

From the mantle, Myanmar and Mars, rare rocks go on the auction block

Christie’s called the Jubilee “the very best Burmese
ruby offered for sale” in the U.S. for over 25 years.
(Photo: Christie’s)

Christie’s came much closer to that figure just one day after the Shirley Temple got shelved. That rival Magnificent Jewels auction offered 255 items and totalled nearly $57.03 million. Starring the show was the 15.99-carat Jubilee ruby. “To find an almost circular cut, unheated gem weighing more than 15 carats, with near-perfect crystallization is the dream of every gemstone connoisseur,” oozed the auctioneer. Set in a gold and diamond ring, the Jubilee sold for $14.16 million, well inside the hoped-for $12-million to $15-million range.

Another bidder put up $8.84 million for a 10.07-carat “fancy intense purple-pink diamond” mounted in a platinum and gold ring. With a pre-sale estimate of $8 million to $12 million, that gem also sold within expectations.

As did a $7.22-million, 40.43-carat round brilliant-cut diamond that was estimated between $7 million and $10 million.

While Christie’s New York was peddling opulence, Christie’s London was marketing meteorites. Prices hovered much closer to earth, however—between $267 for “a corner cut of the Toulon meteorite” and $62,213 for the Tirhert, “a meteorite which never hit Earth.” A Moroccan kid found it wedged between tree branches.

But no matter how exotic, the more expensive extra-terrestrial stuff got consigned to inventory.

Bidders passed up souvenirs of Mars, one of which Christie’s hoped would bring up to $355,500 and another up to $639,900. Similarly spurned was the “world’s largest oriented meteorite with extra-terrestrial gemstones.” That was further described as “encompassing an enormous aggregate of extra-terrestrial olivine and peridot in a steel-blue patina dappled with mango accents.”

From the mantle, Myanmar and Mars, rare rocks go on the auction block

Even this extra-terrestrial expression of
Munch-ish anguish failed to find a buyer.
(Photo: Christie’s)

Christie’s wanted somewhere between $711,000 and $1.13 million for the 650-kilogram chunk of rock, arguably a bargain compared to those earthly objects measured in mere carats. And they’re not even dappled with mango accents.

Another non-mover was “an otherworldly evocation of Edvard Munch’s The Scream.” Naturally formed, Christie’s insists, the 179-kilogram space oddity came with an aspired but unrealized price between $213,300 and $355,500.

The auction totalled just $817,601 for 44 meteorites, leaving nearly three dozen unsold. Evidently aficionados prefer the products of domestic geology. Maybe there’s still something to be said for this planet after all.

Next month Christie’s and Sotheby’s plan to separate big spenders from their loot in Geneva. Sotheby’s set a hopeful $28-million to $38-million target for the 15.38-carat Unique Pink diamond, while Christie’s talks of up to $45 million for the 14.62-carat Oppenheimer Blue.

Assuming there are takers, how does one explain such extravagance?

“Even though there may be a general economic malaise, a lot of people are making a lot of money and are very cash-rich,” David Bennett told Rapaport Magazine. As chairperson of Sotheby’s jewelry division, he conducted the Blue Moon auction and several other high-profile sales.

“Fine gemstones have always been something that people consider having in their portfolio of investments,” he added. “If they are going to buy something, they want to buy the rarest, the best.”

A head start

April 14th, 2016

Nickel One Resources builds on past work at western Ontario’s Tyko project

“Not too many properties come to you with two discoveries already drilled but never released,” says Nickel One Resources TSXV:NNN president/CEO Vance Loeber. “These results had never seen the light of day in a public company.”

He’s referring to the Tyko project in western Ontario’s Thunder Bay mining district, where Nickel One recently completed a program of confirmation drilling. Initial results have the company optimistic about its nickel-copper-PGM potential, and in particular about the possibility that two zones might be one.

Nickel One Resources builds on past work at western Ontario’s Tyko project

Still to come from Tyko are results from 10 more winter holes.

The project came to Nickel One with the advantage of two seasons of drilling by North American Palladium TSX:PDL back in 2006 and 2007. Focusing on its Lac des Iles operation and advanced projects in Ontario and Finland, the company let Tyko revert to its vendors, friends of Abraham Drost, now Nickel One’s chairperson.

Loeber and Drost had worked together in prominent roles on a number of projects including Sandspring Resources TSXV:SSP and Carlisle Goldfields, the latter taken over by Alamos Gold TSX:AGI earlier this year. Consequently Nickel One’s predecessor, Redline Resources, acquired the privately held Tyko Resources and its namesake project, then began trading as Nickel One at the end of February.

North American drilled 2,230 metres in 13 holes, finding mineralization in nine of them. Redline’s February 2015 43-101 technical report provides highlights from those two programs, including:

Hole TK-06-001 at the Tyko showing

  • 1.09% nickel, 0.76% copper, 0.42 ppm platinum and 0.42 ppm palladium over 4.15 metres, starting at 17.4 metres in downhole depth

TK-06-003 at the RJ showing

  • 1.06% nickel , 0.51% copper, 0.24 ppm platinum and 0.12 ppm palladium over 4.08 metres, starting at 63.92 metres

TK-06-005 at the RJ showing

  • 1.05% nickel, 0.46% copper, 0.2 ppm platinum and 0.12 ppm palladium over 6.2 metres, starting at 25 metres

True widths weren’t available.

Having raised $890,000 about a week after its February trading debut, Nickel One dispatched a rig to confirm the results. Assays for the first four holes came out April 12, with one near-surface interval from the RJ zone nearly matching the previous best grade while exceeding its width nearly four-fold—1.04% nickel over 16.19 metres.

That result appeared within a longer interval of 0.79% nickel over 44.12 metres:

  • 0.79% nickel, 0.3% copper, 0.01 ppm gold, 0.12 ppm platinum and 0.11 ppm palladium over 44.12 metres, starting at 52.75 metres in downhole depth

  • (including 1.04% nickel, 0.54% copper, 0.01 ppm gold, 0.12 ppm platinum and 0.12 ppm palladium over 8.25 metres

  • (which includes) 2.89% nickel, 0.45% copper, 0.01 ppm gold, 0.27 ppm platinum and 0.35 ppm palladium over 0.5 metres

  • (and including) 1.04% nickel, 0.23% copper, 0.15 ppm platinum and 0.12 ppm palladium over 16.19 metres

  • (which includes) 1.23% nickel, 0.26% copper,0.18 ppm platinum and 0.13 ppm palladium over 11.38 metres

  • (which includes) 1.97% nickel, 0.19% copper,0.17 ppm platinum and 0.12 ppm palladium over 1 metre

Again, true widths weren’t available. Results are pending for 10 more holes from the 14-hole, 1,780-metre program.

Summer drilling will test a theory that the RJ and Tyko zones, 1.5 kilometres apart, might be linked. The earlier drilling, magnetics, electromagnetics and IP surveys led to the 43-101’s conclusion that the property has been intruded by a mafic to ultramafic conduit that’s interpreted to be a feeder system. A “major structural flexure” between the RJ and Tyko zones coincides with anomalous nickel, copper and PGEs.

“The property shows many similarities with mafic to ultramafic feeder systems such as Voisey’s Bay in northern Labrador and Jinchaun in China,” the report states. “These deposits are characterised by magmatic sulphides collecting within the feeder of a large intrusive body due to variations in geometry that caused changes in flow dynamics such that immiscible sulphides were able to settle out and collect in structural traps.”

A concentration of immiscible sulphides is key to the formation of an economic nickel deposit, the report adds.

Having taken over the Nickel One helm just weeks ago, Loeber’s enthusiastic about renewing his collaboration with Drost and working with their new teammates. Among them is adviser Glenn Mullan, whose 35-year exploration/mining career includes his current role as president/CEO of Golden Valley Mines TSXV:GZZ. Director Scott Jobin-Bevans, with more than 22 years of exploration experience, wrote his PhD thesis on PGE mineralization in Ontario.

Accessible by logging roads and float plane, the 11,168-hectare property sits about 40 kilometres north of Hemlo and 28 kilometres southeast of the town of Manitouwadge, at the north end of Highway 614.

Anxious to get back, the company plans to resume drilling after spring breakup, Loeber says. Meanwhile the rig remains onsite, making it cheaper and quicker to renew the attack.

Nickel One Resources reports initial drill results from Ontario

April 12th, 2016

This story has been expanded and moved here.

Criminal consequences

April 8th, 2016

As Blankenship plans an appeal, other miners in the U.S. and Canada fare worse

by Greg Klein

One year in prison and another on supervised release—six days apart from each other two American courts handed two former mining executives identical jail time. One ex-boss was implicated in polluting a river, the other in 29 mining deaths.

The latter, former Massey Energy CEO Don Blankenship, also got a $250,000 fine. The sentence came almost exactly six years after the underground explosion at West Virginia’s Upper Big Branch coal mine operated by a Massey subsidiary.

As Blankenship plans an appeal, other miners in the U.S. and Canada fare worse

Widespread outrage greeted the sentence but the judge—a coal miner’s daughter—gave Blankenship the maximum penalty allowed for a misdemeanor of conspiring to violate safety regulations. In December a jury acquitted him of felony charges of securities fraud, lying to the U.S. Securities and Exchange Commission, and conspiring to impede mine safety officials. Convictions could have brought him 31 years in prison.

In the past Blankenship reportedly donated millions to friendly politicians and judges including, Bloomberg reports, $3 million to support a West Virginia Supreme Court of Appeals judge “who helped overturn a $50-million jury award against some of Massey’s units.”

John Grisham cited Blankenship as the novelist’s inspiration for The Appeal, depicting a ruthless Wall Street billionaire and his bought-and-paid-for Supreme Court judge. Grisham later wrote Gray Mountain, a fictional indictment of the Appalachian coal industry.

Alpha Natural Resources took out Massey in 2011 for $7.1 billion. Alpha eventually paid about $209 million for fines, restitution and mine safety improvements. The company also settled a securities class action suit for $265 million, as well as settling undisclosed amounts with 29 families.

Other former Upper Big Branch staff convicted after the disaster include superintendent Gary May, who got 21 months in prison, security chief Hughie Elbert Stover, who got three years, and Massey executive David Hughart, who got 42 months.

According to the United Mine Workers of America, 52 people died on Massey property under Blankenship’s reign. Still maintaining his innocence on the misdemeanor, Blankenship intends to appeal.

The week before his sentence, a federal judge in Alaska gave Canadian James Slade one year in prison and another on supervised release for criminal violations of the U.S. Clean Water Act, the Alaska Dispatch News reported.

Prosecutors described Slade as the senior on-site executive of XS Platinum during the 2010 and 2011 mining seasons when salmon-spawning streams “turned muddy brown with waste water,” according to an earlier ADN story.

The company was extracting platinum from tailings on a former mine site near the Bering Sea coast of southwestern Alaska. Slade argued that his Australian supervisors refused his request to provide equipment that would have stopped the discharge.

But the ADN quoted the judge saying Slade “really had a choice, and when it became clear the two Australians were adamant about making as much money as they could and to heck with any pollution control equipment, he could have walked away from this job.”

Two Americans face sentencing after pleading guilty to related charges. Prosecutors declined to extradite the Australians, Bruce Butcher and Mark Balfour.

The British Columbia legislature has amendments pending that could impose $1 million in fines and three years in prison for Mining Act violations. Triggered by the 2014 Mount Polley tailings dam collapse, the new regs strengthen penalties currently capped at $100,000 and one year. But following a 2015 Vancouver Sun investigation, the paper reported that “no fines had been levied in the courts under the Mines Act since 1989.”

Notwithstanding the lack of Bre-X convictions, Canada might do more to deter fraud than other mining-related offences. In 2013 the Ontario Securities Commission slapped geologist Bernard Boily with a $750,000 fine and $50,000 costs for fraudulent assays that brought a class action suit against his employer. The previous year geologist John Gregory Paterson got six years for a nearly four-year-long assay-faking scam.