Tuesday 25th July 2017

Resource Clips


Posts tagged ‘Pretium Resources Inc (PVG)’

PwC numbers support B.C. mining’s resurgent mood

May 17th, 2017

by Greg Klein | May 17, 2017

Not just shareholders but governments, employees and communities all benefit from the upturn in mining, according to British Columbia data. PricewaterhouseCoopers’ annual report on B.C. mining credits the industry’s “cautiously optimistic” mood on stabilized or improving commodity prices, continuing progress on development projects and new mines to come. The survey gleaned its findings from 28 companies whose main assets comprise 14 operating mines, one on care and maintenance, three exploration projects, nine projects undergoing permitting or environmental assessment and a smelter.

Year-over-year numbers help explain the optimism.

The participating companies drew gross mining revenue of $8.7 billion last year, compared with $7.7 billion in 2015, “driven by higher revenue at Teck’s [TSX:TECK.A and TSX:TECK.B] B.C. coal mines as well as Imperial Metals’ [TSX:III] Red Chris and Mount Polley operations.”

Net mining revenue for the participants totalled $7.3 billion, compared with $6.3 billion in 2015, “driven by an increase in gross mining revenue and a decrease in smelting and refining charges and freight costs.” Cash flow from operations rose to $2.6 billion in 2016 from $1.7 billion the previous year.

Participants’ exploration and development spending, however, fell from $320 million in 2015 to $102 million last year. But PwC attributed the decrease largely to Pretium Resources’ (TSX:PVG) Brucejack graduating from exploration and evaluation into construction, helping push 2016 capex for the 28 companies up to $1.37 billion, compared with $1.24 billion in 2015.

And those companies’ shareholders reaped rising returns—13.5% last year, compared with 6.3% in 2015 and 2.4% in 2014. With the 2016 figure slightly above 2013 results, “the hope is that it will continue to climb towards 2012 levels as we move into 2017.”

Governments did alright too, getting total payments of $650 million from the participants last year, up from $476 million in 2015. Last year saw the participants’ highest such payments since 2011.

Direct employment rose slightly to 9,329 jobs, compared with 9,221 in 2015.

Of all those numbers, of course, job figures have the most obvious impact on people and their communities. Even PwC’s beancounters appear moved by the intangible effects of the Tumbler Ridge coal mining revival. The inspirational story began last autumn when Conuma Coal Resources rescued some B.C. assets of bankrupt Walter Energy and reopened the Brule mine.

An “extreme and effective collaboration” of industry, government and First Nations helped Conuma put Brule back in operation quickly, Karina Briño told PwC. Briño, who stepped down as B.C. Mining Association president/CEO on April 30 to take on a mining role in her native Chile, added, “Mining really is a community-based activity that is not only valued but appreciated by the community.”

Conuma CEO Mark Bartkoski echoed those comments. “We felt really good about the properties and the spirit of the people in the community. It has truly been a testament to positive collaboration.”

Looking at the B.C. industry overall, PwC concluded, “While it may be too soon to call it a recovery, the outlook is brighter today than it has been in recent years…. While several challenges remain—including the volatility of commodity prices, keeping costs down, and attracting more investment in the short and long term—the future looks promising.”

Download Building for the Future: The Mining Industry in British Columbia 2016.

Opinions vary by region when it comes to mineral exploration and mine development

April 20th, 2017

With a provincial election weeks away, Peter Caulfield asked sources in three British Columbia regions to comment on the importance of mining for the Association for Mineral Exploration’s quarterly magazine, Mineral Exploration. In general terms, the responses differ from views commonly heard in cities geographically removed but hardly independent of resource economies and the commodities they produce. In that respect, the relevance of Caulfield’s article applies far beyond B.C. The article is posted here with the permission of AME.

 

Opinions vary by region when it comes to mineral exploration and mine development

by Peter Caulfield

In a province that is as large and diverse as British Columbia, it’s natural that opinions on most topics—including mineral exploration and development—will be diverse too.

What the average person in Oak Bay or Yaletown thinks about a new mine or pipeline will be very different from what’s going through the head of somebody who lives in the northwestern corner of British Columbia or in the Kootenays in southeastern B.C.

As the province’s May 9 election approaches, Mineral Exploration wanted to know what’s on the mind of voters who live in the parts of the province that are most dependent on resource development. We talked to three well-connected observers of local politics in four provincial constituencies: Kamloops-North Thompson and Kamloops-South Thompson, Stikine and Kootenay East. We asked each of them what the hot-button issues are in their respective constituencies and whether mineral exploration and mine development is important to their fellow voters.

The following interviews have been condensed and edited for clarity.

 

Stikine

Maria Ryder, District of Stewart councillor for 2.5 years, chief of the volunteer fire department and 25-year Stewart resident

Opinions vary by region when it comes to mineral exploration and mine development

(Photo: Carl Ryan/AME)

The main projects in the Stewart region are Brucejack (Pretium Resources TSX:PVG), the Premier mine (Ascot Resources TSXV:AOT), Red Mountain (IDM Mining TSXV:IDM) and the Red Chris mine (Imperial Metals TSX:III).

Along with Terrace and Kitimat, Stewart is one of the largest communities in the district. We are growing in population, especially in the summer, when workers and their families descend on the town, drawn by mineral exploration and hydro projects and by Stewart’s two ports.

It’s very different here from urban British Columbia, and the people from down south who come up here to work find out just how different it is. And some of them discover how different some of our opinions and concerns are from theirs.

Because we get a lot of snow in the winter, much of the employment in Stewart is seasonal and the people who live here adjust their lives accordingly. Every year between March and November we’re busy, and between November and March things are pretty slow. But we’re used to it and we adjust.

The main election issue here is sustainable job creation through industrial development. We want jobs that stay and that provide stability to Stewart.

 

Kootenay East

Lois Halko, District of Sparwood second-term councillor and former mayor, born and raised in Sparwood

Opinions vary by region when it comes to mineral exploration and mine development

(Photo: Malcom Lennox/AME)

The main economic drivers of the region are the mining of metallurgical coal, which is B.C.’s single biggest export, and the activities of the local suppliers to the coal industry.

There are five Teck [Teck Resources TSX:TECK.A and TSX:TECK.B] metallurgical coal mines in the region: Coal Mountain, Elkview, Fording River, Greenhills and Line Creek. In addition, there are four mining companies that are interested in developing mines in the Elk Valley area: CanAus Coal, Centermount Coal, NWP Coal Canada and Riversdale Resources.

The five Teck mines have a total of 3,600 full-time employees, of whom 2,400 live in four communities in the Elk Valley area.

Because it is used to make steel, and because steel is such an essential product in everyone’s life, metallurgical coal should be recognized as a critical resource. It’s certainly critical to the people who live in Sparwood.

Teck has earned its social licence to continue mining here. The public has accepted the company’s efforts to mitigate any of the effects of coal mining, such as contaminants leaching into the water supply. Teck has done a lot of work to reduce the problem.

At the same time, we know that we need to diversify our economy. It’s something the local municipalities talk about a lot. The Sparwood regional economy is one of the least diversified in the province, which has made us very vulnerable to a cycle of boom and bust. The region has lots more to offer than just coal deposits, and we’re trying to leverage our mountains and natural beauty to build a thriving tourist industry.

 

Kamloops-North Thompson and Kamloops-South Thompson

Ryan Scorgie, president of the Kamloops Chamber of Commerce

The Kamloops Chamber of Commerce and its 850 members take a great deal of interest in all kinds of resource development, including mineral development in Kamloops-North Thompson and Kamloops-South Thompson.

The main mineral projects in the area are the Ajax project (KGHM International), the New Afton mine (New Gold TSX:NGD) and Highland Valley Copper (Teck).

Opinions about resource development are mixed in Kamloops. Most of the working people here are for it, but many of the academics at Thompson Rivers University are against, so the Chamber of Commerce hears both sides of the argument. Our position is that if a project goes through the appropriate review process and passes it, then we support it.

In fact, the Chamber thinks process is so important that our Policy Development Committee developed a policy regarding resource development in 2016 called Supporting Canada’s Responsible Resource Development.

The policy statement is more important than its brevity might indicate, because it was adopted provincially just a few months after it was written.

Opinions vary by region when it comes to mineral exploration and mine development

(Photo: Neil Leonard/AME)

The committee writes, in part: “The Chamber believes that it is critical that B.C. maintains its reputation as a jurisdiction open to investment. Achieving the investments needed to ensure Canada’s competitiveness will require an efficient regulatory review process that ensures continued health and environmental protection of Canadians while generating jobs, economic growth and prosperity.

“A streamlined process will encourage investment by providing businesses with a clear and predictable process to protect the environment while making the best use of limited government resources.

“Inefficient and unpredictable processes may turn away potential investors and prevent businesses from being able to make informed location and logistic decisions. For example, the World Economic Forum has cited inefficient government bureaucracy as one of the biggest impediments to improving Canada’s economic competitiveness.

“We need to make sure that the regulatory review process is efficient and has a clear scope, reasonable timelines and the flexibility to address unforeseen circumstances.”

Originally published in the spring 2017 edition of Mineral Exploration. Posted here with the permission of the Association for Mineral Exploration.

Visual Capitalist: The re-awakening of the Golden Triangle

April 6th, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist | April 6, 2017

The re-awakening of the Golden Triangle

 

Many years ago, a remote and mountainous region in northwestern British Columbia gained considerable attention as an emerging mineral district. With a rich mining history, one of the world’s largest silver mines (Eskay Creek, discovered in 1988) and million-ounce gold deposits, this area of incredible wealth became known as the Golden Triangle.

However, despite its obvious potential, the vast majority of land in this highly prospective region has been left mostly untouched by humans. A combination of factors, including low gold prices and a lack of infrastructure, led to the area lying dormant for decades.

Today, things are changing dramatically. The Golden Triangle is a new hotbed for mineral discovery, where over 130 million ounces of gold, 800 million ounces of silver and 40 billion pounds of copper have been found. The amazing part is that this is only scratching the surface of the region’s ultimate potential.

Skeena Resources TSXV:SKE and IDM Mining TSXV:IDM have generously helped put together the story on the re-awakening of the famed Golden Triangle.

The new gold rush

Why is the Golden Triangle at the centre of attention again? There are five main reasons:

1. New deposits found

The old adage is that the best place to find a new mine is near an existing one. Here are three major deposits in the Golden Triangle that have geologists and financiers buzzing:

KSM

Seabridge Gold’s (TSX:SEA) KSM project is the largest gold project in the world. In 2014 it received the green light from Canada’s federal government to go ahead. A porphyry-style deposit, it has reserves of 38.8 million ounces of gold, 10.2 billion pounds of copper and 183 million ounces of silver.

Red Chris

This $700-million copper and gold mine entered production in 2015. Owned by Imperial Metals TSX:III, it will be in production until 2043 based on current mine life estimates. In 2016 alone, it produced 83 million pounds of copper, 47,000 ounces of gold and 190,000 ounces of silver.

Valley of the Kings

The latest, and perhaps most interesting, discovery in the Golden Triangle is slotted to reach commercial production in 2017. The Valley of the Kings, unlike the above porphyry-style deposits, contains extremely high-grade gold. With 15.6 million tonnes grading 16.1 g/t gold, this deposit has some of the richest ore in the world.

2. New Infrastructure

In recent years, the Golden Triangle has received three massively important infrastructure upgrades:

  • Paving of the Stewart-Cassiar Highway (north from Smithers)

  • Opening of ocean port facilities for export of concentrate at Stewart

  • Completion of a $700-million high-voltage transmission line to bring power into the Golden Triangle

3. Declining snow cover

Glacial ice and snow have been retreating in many parts of the region, revealing rocks never seen before by human eyes. Especially in a mineral-rich region such as the Golden Triangle, this is a very exciting prospect for mineral geologists.

4. A new geological explanation

The Golden Triangle region has complex geology that had befuddled explorers for decades—but recent work has made the picture much clearer. Geologist Jeff Kyba has put forth the following theory: Geological contact between Triassic-age Stuhini rocks and Jurassic-age Hazelton rocks is the key marker for copper-gold mineralization.

Most of the Triangle’s copper-gold deposits, whether they are large-scale porphyry and intrusion-related, are found within two kilometres of this contact. It’s been named the Red Line, and this new interpretation of the region’s geology could contribute to B.C.’s next mega deposit.

5. Gold price recovery

Since the “sleepy” days of the Golden Triangle, gold prices have increased three times, even after adjusting for inflation. Combined with new infrastructure, exciting projects and world-class mineral potential, the Golden Triangle is awake again.

What’s happening today?

Today, the Golden Triangle is buzzing with activity.

  • The Red Chris mine is now in operation

  • Valley of the Kings is entering production in 2017

  • KSM, the world’s largest gold deposit, is nearing potential construction

  • Historic mines like the Snip Mine and Granduc are being explored using modern methods

  • New high-grade gold is being found. Red Mountain and the old Premier gold mine are the sites of some of these discoveries

  • Dozens of companies are on the ground performing all phases of exploration

Many types of mineral deposits are being tested for, including high-grade gold veins, large-scale porphyries and VMS (volcanogenic massive sulphide) deposits. The Golden Triangle is once again a centre of attention and it could be poised to become one of the world’s most prolific concentrations of mineral wealth.

Posted with permission of Visual Capitalist.

See an infographic about the Golden Triangle’s mining history.

Visual Capitalist: The history of British Columbia’s Golden Triangle

July 7th, 2016

posted with permission of Visual Capitalist | July 7, 2016

In a hidden corner of northwestern Canada lies some of the world’s most significant mineral potential. Billions of dollars of undiscovered gold, silver and copper still sit within an unexplored area that was once remote. However, only now can these world-class deposits be finally tapped. Skeena Resources TSXV:SKE has helped Visual Capitalist to put together the story of the famed Golden Triangle.

The history of the Golden Triangle

Even before Canada was officially a country, the area now known as the Golden Triangle was a hub for prospectors looking to strike it rich.

In 1861, Alexander “Buck” Choquette struck gold at the confluence of the Stikine and Anuk rivers, kickstarting the Stikine Gold Rush. More than 800 prospectors left Victoria to go to the Stikine in search of gold.

A few short years later, an even more significant rush would occur just to the north in the Cassiar region—it’s where British Columbia’s biggest ever gold nugget, weighing in at 73 ounces, would be found. The Atlin Gold Rush, an offshoot of the world-famous Klondike Gold Rush, would also occur just north of the Triangle.

The first discoveries

The companies that first worked in the Golden Triangle balanced its richness against the costs of its remote location.

Premier gold mine

The first big discovery in the Golden Triangle was at the Premier gold mine, which started operations in 1918. The company that first owned it, Premier Gold Mining Company, returned as much as 200% on the stock market between 1921 and 1923. At the time the Christian Science Monitor called it “one of the greatest silver and gold mines in the world.”

Snip mine

Discovered in 1964 by Cominco, the deposit stayed dormant until 1986, when it was drilled in a joint venture with Delaware Resources. Murray Pezim’s Prime Resources bought out Delaware after the stock ran from a dollar to $28 a share.

The high-grade Snip mine produced approximately one million ounces of gold from 1991 until 1999 at an average gold grade of 27.5 gams per tonne.

Eskay Creek

In 1988, after 109 drill holes, tiny exploration companies Stikine Resources and Calpine Resources finally hit the hole they needed at Eskay Creek with grades as high as 27.2 g/t and 30.2 g/t gold.

Eskay would go on to become Canada’s highest-grade gold mine and the world’s fifth-largest silver producer, with production well in excess of three million ounces of gold and 160 million ounces of silver.

Grades:

  • Gold: 49 g/t
  • Silver: 2,406 g/t
  • Lead: 3.2%
  • Zinc: 5.2%

By the time all was said and done, the stock price of Stikine Resources would go from $1 to $67, after it was bought by International Corona.

Why did these three rich mines shut down?

Despite the gold in the Triangle being extremely high grade, lower gold prices in the late ’90s made the economics challenging. Meanwhile, the lack of infrastructure in this remote area meant that power, labour and logistics costs were sky high.

Both of these things have changed today, and activity at the Golden Triangle is now fast and furious.

Gaining access to the Triangle

The Golden Triangle is a hot area for exploration again. This is for three main reasons: higher gold prices, new infrastructure and modern discoveries.

Higher gold prices

Average gold price (1999): $279 (adjusted for inflation: $398)
Average gold price (2016): $1,202

Gold prices are more than three times as high today, even after adjusting for inflation. Combined with the Golden Triangle’s high grades, this becomes even more attractive.

New infrastructure

Today, road access to the area is easier than ever and a new transmission line will dramatically reduce the cost of power for companies operating in the Triangle.

Recent improvements:

  • Completion of a $700-million high-voltage transmission line to the Golden Triangle. The Northwest Transmission Line goes 335 kilometres from Terrace to Bob Quinn Lake and north to the Red Chris mine

  • Paving of the Stewart-Cassiar highway north from Smithers (Highway 37)

  • Opening of ocean port facilities for export of concentrate in Stewart

  • Completion of a three-dam, 277 MW hydroelectric facility located 70 kilometres northwest of Stewart

Modern discoveries

The next gold rush at the Golden Triangle has already started. Just some of the new discoveries in the area include Seabridge Gold’s (TSX:SEA) KSM project, Pretium Resources’ (TSX:PVG) Valley of the Kings deposit and Imperial Metals’ (TSX:III) Red Chris mine.

Yet despite this track record of new discoveries and mines being built in the area, a B.C. government report estimates that only 0.0006% of the Golden Triangle has been mined to date.

Posted with permission of Visual Capitalist.

Gwen Preston looks back on PDAC and an exciting week

March 15th, 2016

by Gwen Preston | SmallCapPower.com | March 15, 2016

What a week it was! Another PDAC is in the books. And a good one. It was undoubtedly small—fewer booths, attendance of just 22,000 compared to an average of 29,000 over the last five years—but the buzz was inarguably better than last year.

Gwen Preston looks back on PDAC and an exciting week

Mining deals flowed with PDAC buzzing in the background.

I comment on my PDAC impressions after going through the mining news events of the week. As usual, news flow ramped up during the world’s biggest mining conference so there was lots to talk about, and all I got to were the four biggest stories.

Others also deserve comment. Canamex Resources (TSXV:CSQ), for example, published a PEA showing how they could turn their Bruner gold project into a 46,500-ounce-per-year producer for a capital cost of just US$33.4 million. If built, the mine should be able to generate a 39% after-tax internal rate of return and operate for six years. It would be a simple oxide heap leach operating on patented land, which eases permitting considerably.

Those are pretty good numbers. The asset and company are small for my tastes but Canamex deserves credit: it not only survived the bear market but advanced its asset to the point where it supports an economic PEA. If the team can now establish a path to production, starting with accessing the cash needed to take the next step, its share price may well respond. This is, after all, a simple gold project in Nevada, one of the most desirable mining jurisdictions in the world.

That’s one example of interesting news. There was no shortage: companies arrived at PDAC armed with new drill results, property deals, exploration plans, financings and resource estimates.

Deal flow was the most exciting part. I go through three new deals below (Silver Standard buying Claude, Endeavour buying True Gold and Lundin moving on Timok), but financings were also hot. Pretium raised US$130 million, Franco pulled in an oversubscribed US$920 million and Kinross raised US$250 million. I like to see money moving. This sector seizes up otherwise.

No wonder PDAC-ers were pumped. Or cautiously optimistic, in the very least…. Continue reading this article on SmallCapPower.com.

MOU offers Americans scrutiny over B.C. mining projects

November 25th, 2015

by Greg Klein | November 25, 2015

British Columbians and Alaskans will seek involvement in each other’s mining proposals following a memorandum of understanding signed November 25. The MOU calls for governments and natives to take part in environmental assessment and permitting processes in their neighbour’s jurisdiction. But with an emphasis on trans-boundary waters, which mostly would consist of rivers and streams originating in B.C., Canadian projects might get more scrutiny than those next door.

B.C.-Alaska MOU pledges cross-border co-operation on mining and environment

The memo follows visits by B.C. mines minister Bill Bennett and Alaska lieutenant-governor Byron Mallott to each other’s turf. Bennett’s trips, following the tailings dam collapse at Imperial Metals’ (TSX:III) Mount Polley mine, tried to reassure Alaskans about B.C. environmental practices.

In August 2014, just weeks after the disaster, Alaska’s Department of Natural Resources asked Canada’s Environmental Assessment Agency for participation in the approval process for Seabridge Gold’s (TSX:SEA) KSM gold-copper project near the state border. Provincial approval had already been granted the previous month. The federal permit came through last December.

Other prominent projects in B.C.’s northwestern corner include:

  • Galore Creek, a NovaGold Resources TSX:NG/Teck Resources TSX:TCK.A and TCK.B copper-gold-silver project that reached pre-feasibility in 2011

  • Schaft Creek, a Copper Fox Metals TSXV:CUU/Teck copper-gold-molybdenum-silver project that achieved feasibility in 2013

  • Chieftain Metals’ (TSXV:CFB) Tulsequah Chief zinc-copper-gold project, now permitted for construction

  • Pretium Resources’ (TSX:PVG) Brucejack gold-silver project, slated for 2017 commercial production

  • Imperial’s Red Chris copper mine, which achieved commercial production in July

The MOU sets no timeframe for achieving its goals. Money for the cross-border initiative would come from existing government budgets, with the possibility of additional “alternate public or private sector funding.”

South of Voisey’s Bay

March 25th, 2015

New developments put Equitas Resources in search of a nearby nickel discovery

by Greg Klein

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The greatest find of Canada’s first diamond rush failed to locate a single gemstone. Instead Robert Friedland’s Diamond Fields Resources stumbled onto nickel with cobalt and copper—much more prosaic stuff but in such magnificent quantities that, just three years after its 1993 discovery, Voisey’s Bay sold for $4.3 billion. Yet the Labrador region remains under-explored. Now, with the advantages of new technology plus single ownership of a recently compiled land package, Equitas Resources TSXV:EQT puts new impetus into the search for a second deposit.

Just 30 kilometres south of Voisey’s, the company’s 25,050-hectare Garland project came together after two years of research by Dahrouge Geological Consulting. According to Equitas VP of exploration Everett Makela, this puts the “most prospective area outside of the Vale mine property” under a single operator for the first time, a significant advantage for effective exploration.

New developments put Equitas Resources in search of a nearby nickel discovery

Despite its proximity to Voisey’s, patchwork ownership
and outdated methods left the region under-explored.

This, in an area where deposits could come in clusters. That’s the case for major nickel camps like Sudbury, Norilsk, Thompson and Raglan, Makela emphasizes. Therefore “the likelihood of discovering more Voisey’s Bay-type deposits in the region is high.” But if that’s so, why has the area been neglected?

“The reality is that, after 20 years of exploration by scores of companies combing the surface, the remaining prospective environments are buried,” he explains. “In the case of the Garland project, that is most likely under younger cover rocks. Voisey’s Bay itself was exposed by a fortunate erosional history. It takes a strong commitment to advance the next stage. Commitment to exploring the deeper sub-surface requires insight into critical elements of the mineralizing process and employment of state-of-the-art geophysical methods.”

State-of-the-art exploration is already underway at Garland, where a VTEM-plus survey began in February. Previously some 10 separate companies explored relatively small pieces of the current Garland project with now-outdated electromagnetic surveys that penetrated only to about 75 metres. Equitas’ regional-scale geophysics can reach a maximum 10 times that depth, all the better to detect large, highly conductive nickel sulphide deposits.

As for insight, Makela brings Equitas solid expertise. The Sudbury native began his career in 1981 as a geological assistant with pre-Vale Inco. By the time he retired in 2012, Makela was Vale’s principal geologist for North America. “I’ve worked alongside some of the leading experts in nickel exploration and benefited greatly from access to the resources of leading global nickel companies,” he says. “My experience spans the gamut from target generation through to resource definition.”

He’s worked in the U.S., Mexico, Greenland, South Africa and Brazil, along with “years of focus on Sudbury and Voisey’s Bay that gave me a strong background in world-class mineralized systems and the business of building mines.” In fact Makela served on the Inco team that conducted initial due diligence prior to the multi-billion-dollar Voisey’s acquisition.

So what does he see at Garland? Well, enough of what he saw at Voisey’s to stoke his enthusiasm.

“Aside from having the same favourable address, along an Archean-Proterozoic boundary, Garland and Voisey’s share a remarkable number of geological signatures,” he points out. “Both are located at the intersection of a regional-scale east-west corridor of faults with a northeast-trending fault set. The combined movement is likely to have caused the open space that allowed emplacement of the Voisey’s Bay ores. That’s the same style of structural offset that we believe we have on our own property. Magnetic signatures and interpreted structural deformation are very similar.

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November 28th, 2013

War of words continues over British Columbia gold project Stockhouse
Bitcoin tops $1,000 as virtual money gains popularity VantageWire
Jay Taylor: Cashing in on deflationary forces Streetwise Reports
Redrawing trade patterns for graphite and fluorspar Industrial Minerals
Jim Rogers: “You’ll make a lot more in the right mine than in the commodity… [but] you have to be careful” Goldseek
Inflation versus deflation and the growing currency war Equedia
Peter Grandich: What 30 years has taught me the Grandich Report

From B.C.’s Golden Triangle

February 14th, 2013

Teuton Resources and Rotation Minerals report gold-silver-polymetallic assays

by Greg Klein

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Initial drill results from the 4-Js property represent Teuton Resources’ TSXV:TUO “third successful” 2012 exploration program in northwestern British Columbia, the company states. The first set of assays, from near-surface drilling by optionee Rotation Minerals TSXV:ROT, were released February 14:

  • 0.61 grams per tonne gold, 71.66 g/t silver, 0.19% copper, 1.06% antimony, 1.9% lead and 5.4% zinc over 7.62 metres
  • (including 1.29 g/t gold, 140.5 g/t silver, 0.39% copper, 2.61% antimony, 3.23% lead and 11.93% zinc over 2.44 metres)
  • 0.3 g/t gold, 39 g/t silver, 0.1% copper, 0.32% antimony, 1.53% lead and 4.12% zinc over 9.15 metres
  • (including 0.43 g/t gold, 69.5 g/t silver, 0.23% copper, 0.66% antimony, 3.01% lead and 7.03% zinc over 3.05 metres)
  • 0.53 g/t gold, 41.5 g/t silver, 0.19% copper, 0.66% antimony, 1.83% lead and 4.48% zinc over 3.05 metres
  • 0.53 g/t gold, 30.7 g/t silver, 0.07% copper, 0.64% antimony, 2.4% lead and 3.44% zinc over 7.93 metres
  • 0.47 g/t gold, 89.3 g/t silver, 0.18% copper, 0.63% antimony, 1.79% lead and 5.74% zinc over 6.1 metres
  • 0.7 g/t gold, 156.5 g/t silver, 0.3% copper, 1.1% antimony, 2.5% lead and 9.43% zinc over 3.05 metres
  • 0.28 g/t gold, 39.5 g/t silver, 0.05% copper, 0.1% antimony, 1.5% lead and 3.76% zinc over 6.1 metres.
Teuton Resources and Rotation Minerals report gold-silver-polymetallic assays

The terrain is foreboding but northwestern B.C.
has given up some world-renowned reserves.

True widths weren’t available. Intercepts started at seven metres, with the deepest stopping at a down-hole depth of 27 metres. Still pending are assays from 17 more holes of the 1,345-metre program.

Targets were chosen following trenching that showed massive mineralization consisting of bournonite (copper-lead-antimony sulphide), tetrahedrite (copper-antimony-sulphide), sphalerite (zinc sulphide) and galena (lead sulphide) six metres wide and 30 metres long, the company stated. Underlying the mineralization is a strong EM anomaly stretching at least 700 metres. Along trend with the EM anomaly are float boulders carrying bournonite, sphalerite and galena, which the company said could potentially extend the mineralization at least 300 metres from the drill targets.

Four-Js is one of over 25 properties held by Teuton, the Golden Triangle’s largest landholder according to the company’s IR rep, Gary Assaly. Speaking to ResourceClips, he says the company’s flagship “currently is the High property, which is right next door to Pretium. We did some work last year on High North and High South and we came up with some good numbers on High North.” The High property is immediately northwest of 4-Js.

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Stocks rise with ounces

November 20th, 2012

Investors embrace resource estimates from Pretium and Golden Reign

by Greg Klein

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Investors embrace resource estimates from Pretium and Golden Reign

Visible gold shines through core samples from
Pretium Resources’ Valley of the Kings zone.

Two resource estimates announced November 20 received warm market welcomes. Pretium Resources TSX:PVG increased the indicated category of its Brucejack Project in northwestern British Columbia by 66%. Golden Reign Resources TSXV:GRR, meanwhile, debuted the San Albino-Murra Property in western Nicaragua with its first-ever estimate.

Pretium last released updates on September 7 for both the Valley of the Kings zone and the West zone 500 metres north. The November 20 update concerns Valley of the Kings only.

Using a cutoff of 5 g/t gold-equivalent, the resource shows:

  • an indicated category of 16.1 million tonnes averaging 16.4 g/t gold and 14.2 g/t silver for 8.5 million gold ounces and 7.3 million silver ounces
  • an inferred category of 5.4 million tonnes averaging 17 g/t gold and 15.7 g/t silver for 2.9 million gold ounces and 2.7 million silver ounces

The Valley of the Kings resource now includes drilling from Galena Hill, previously thought to be a separate zone. The company stated that the Valley remains open to the east and west along strike and at depth.

By boosting the indicated category 66%, the resource pushes Brucejack further along its feasibility study, Pretium president/CEO Bob Quartermain tells ResourceClips. “This gives us a really good base to do the feasibility study and develop a mine plan around the high-grade resource at the Valley of the Kings,” he says. He hopes to have feasibility complete by the first half of next year.

“We continue to de-risk the project and I think the next major catalyst for the company will be the feasibility study,” he adds. “There’s also the underground bulk sample, which we’re hoping to take again in the second half of next year. Those continue to create value for our shareholders. Obviously the market likes the way we’re de-risking the project and certainly reacted positively today.”

Indeed Pretium opened November 20 at $13.07 and reached $13.25 before settling back at a $12.95 close—still comfortably above the previous day’s $12.77 close. The stock has a 52-week high of $18.15 and low of $8.27. With 94.83 million shares outstanding, the press-time market cap came to $1.23 billion.

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