Sunday 25th June 2017

Resource Clips


Posts tagged ‘quebec’

Geophysical anomaly heightens King’s Bay interest in Labrador cobalt project

June 19th, 2017

by Greg Klein | June 19, 2017

Newly analyzed data has King’s Bay Gold TSXV:KBG planning to resume its search for copper and cobalt beside the Trans-Labrador Highway. Results from last winter’s 382-line-kilometre airborne VTEM survey over the Lynx Lake project reveal a shallow anomaly of high resistivity estimated at about 400 metres in diameter and 50 to 300 metres in depth. The finding comes from the property’s West Pit, where historic, non-43-101 grab samples assayed up to 1.03% copper, 0.566% cobalt, 0.1% nickel, 5 g/t silver, 0.36% chromium, 0.39% molybdenum and 0.23% vanadium.

Geophysical anomaly heightens King’s Bay interest in Labrador cobalt project

Cutting right through the property, the highway offers year-round access to the town of Happy Valley-Goose Bay, about 1.5 hours
away. Powerlines are under construction along the northern
part of the property.

Summer plans now call for higher-resolution ground geophysics over the target area, potentially followed by overburden stripping to expose bedrock south of the pit. The crew will also follow up on historic soil sample anomalies on the property’s southeastern area. Detailed mapping and sampling will cover both areas.

Interest began in the property as the highway was being built in 2008. A contractor with prospecting experience noticed disseminated and massive sulphides beside the new route. Along with the West Pit results, grab samples east of the highway brought non-43-101 results up to 1.39% copper, 0.94% cobalt, 0.21% nickel and 6.5 g/t silver.

Lynx Lake began as a 2,000-hectare acquisition which King’s Bay expanded to about 24,000 hectares following a review of data from government regional low-resolution magnetic surveys and preliminary handheld EM surveys.

The quest for cobalt has led King’s Bay to other acquisitions. In February the company announced a 100% option on the Trump Island copper-cobalt property in Newfoundland. Earlier that month King’s Bay picked up three Quebec properties with historic, non-43-101 cobalt sampling results.

The company closed a $938,752 private placement in January.

Read about cobalt supply and demand.

See an infographic about cobalt.

Linking the chain

June 9th, 2017

The REE world comes together at the Argus Americas Rare Earths Summit

by Greg Klein

What’s the rarest distinction of rare earths—economic deposits, expertise outside China or public awareness of our dependence on these critical metals? Those are concerns crucial to our society and among topics to be discussed as over 100 industry experts and insiders meet in San Diego from June 12 to 14. The event is the Argus Americas Rare Earths Summit 2017 and, with certain geopolitical circumstances looming in the background, this year’s conference might be especially auspicious.

The REE world comes together at the Argus Americas Rare Earths Summit

The San Diego conference scrutinizes several
rare earths topics from a variety of perspectives.

The gathering brings together end users, miners/processors, researchers/consultants and traders, as well as some investors and U.S. government reps. Topics will include supply and demand, the challenges of building non-Chinese supply chains, new developments in recovery and processing, and the potential for new production outside China.

Japanese and European markets get special attention, as does this continent. The North American session will examine the U.S. Defense Logistics Agency’s analytical techniques, rare earths stockpile and R&D programs. The session will also address Donald Trump’s impact on international trade, as well as the METALS Act, a proposed bill to provide government support for domestic sources of critical minerals.

The fate of that Congressional bill could indicate how well American lawmakers understand American dependence on China—and for minerals essential not only to the economy, medicine and green energy, but also to military defence. Those issues should also be understood by the wider populace, believes keynote speaker David S. Abraham.

Author of The Elements of Power: Gadgets, Guns, and the Struggle for a Sustainable Future in the Rare Metal Age, Abraham emphasizes the dubious origins of some necessary commodities, along with their complex and often fragile supply chains.

Companies will be on hand too. Just a few examples include vertically integrated giants Albemarle Corp and Treibacher Industrie, RE supplier HEFA Rare Earth Canada, Burundi miner-to-be Rainbow Rare Earths, along with Canadian advanced-stage RE juniors Matamec Explorations TSXV:MAT and Commerce Resources TSXV:CCE.

Presentations, panels, roundtables and networking—not to mention some conviviality at a brewery tour—portend a valuable three days. This could mark another step towards building vitally important supply chains for vitally important metals. For more information….

92 Resources begins frac sand field work while advancing lithium metallurgy

June 6th, 2017

by Greg Klein | June 6, 2017

With a crew already en route, 92 Resources TSXV:NTY has a 10-day exploration program about to begin on its Golden frac sand project in eastern British Columbia. A team from Dahrouge Geological Consulting will undertake further mapping and sampling for a 43-101 technical report. While the company’s focus remains the Hidden Lake lithium project in the Northwest Territories, 92 Resources sees potential in another energy-related commodity.

92 Resources begins frac sand field work while advancing lithium metallurgy

“Despite fluctuating oil and gas prices, North American demand for frac sand is exceptionally robust and there remains a nearly non-existent domestic supply of high-quality proppant within Canada,” said president/CEO Adrian Lamoureux.

Close to the Alberta border and with nearby roads, the property’s located five kilometres from Golden, B.C., on the Canadian Pacific main line. Adjacent to the property is Heemskirk Canada’s Moberly project, a former producer of silica sand for the glass industry that’s now being redeveloped as a frac sand production and processing operation. The parent company, Heemskirk Consolidated, is the object of a takeover bid by Northern Silica, held by Taurus Resources No. 2 Fund.

Running through the 3,211-hectare Golden property is an 18-kilometre strike of the Mount Wilson formation, described as hosting high-purity, white, quartzite and friable sandstones. Four samples collected in 2014 showed silica content averaging 98.6% SiO2, with low boron and iron values. “Preliminary testing on these samples indicates favourable frac sand characteristics, as well as metallurgical-grade silica potential,” 92 Resources stated.

Last week the company announced initial results from Phase I metallurgical tests for its Hidden Lake lithium property in the NWT. Early findings suggest material from the hard rock project might be suitable for a conventional flowsheet. As the program goes into Phase II, potential tantalum recovery will be examined as well. 92 Resources filed a 43-101 technical report on the property in January.

The company also holds the 5,536-hectare Pontax lithium property in northern Quebec.

New gold zone helps BonTerra Resources establish continuity at Gladiator

June 6th, 2017

by Greg Klein | June 6, 2017

Known as the Rivage Gap, some 600 intriguing metres separating BonTerra Resources’ (TSXV:BTR) Gladiator deposit and the Rivage zone to the west has been a focus of current drilling. Now assays reveal a new zone south and west of the deposit that could help close the gap.

BonTerra has committed at least four rigs to sink up to 40,000 metres on its 8,126-hectare property that’s adding to the excitement that Osisko Mining’s (TSX:OSK) Windfall project has generated in Quebec’s Urban-Barry camp.

BonTerra announced results for three holes on June 6, showing:

Hole BA-17-06

  • 7.1 g/t gold over 1 metre, starting at 37 metres in downhole depth (Footwall zone)

  • 1.4 g/t over 2 metres, starting at 477 metres (Main zone)

BA-17-11

  • 12.7 g/t over 3.6 metres, starting at 424 metres (Main zone)

BA-17-12

  • 11.1 g/t over 2 metres, starting at 17 metres (Main zone)

  • 3.5 g/t over 2 metres, starting at 32 metres (Mid zone)

  • 8.8 g/t over 3 metres, starting at 346.7 metres (new South zone)
New gold zone helps BonTerra Resources establish continuity at Gladiator

With at least four rigs in action, BonTerra
Resources keeps its Gladiator camp busy.

True widths were estimated between 60% and 80%.

BA-17-12, “the most predominant and westerly hole,” was the fourth hole so far to hit the new South zone, which has approximately 500 metres in strike. Drilling has also extended other zones to the west, with the Main and Footwall zones reaching over one kilometre each in strike. Gladiator itself has been drilled to 850 metres in depth and 1.2 kilometres in strike, remaining open in all directions.

That outlines Gladiator well beyond its 2012 resource which, using a 4 g/t cutoff, showed an inferred 905,000 tonnes averaging 9.37 g/t for 273,000 ounces gold.

Apart from the Rivage Gap, drilling also targets the Deep East zone and additional areas described as “large gaps or voids with currently little drill information.”

The assays follow a batch released in mid-May, strengthening the presence of four other areas in the gap, the North, Footwall, Porphyry/Main and Mid zones. Footwall gave up a standout intercept of 10 g/t gold over 4 metres, while North followed closely with 9.5 g/t over 4.2 metres.

In March BonTerra optioned Durango Resources’ (TSXV:DGO) Trove property, described as a direct extension of the Gladiator/Coliseum southwest mineralized trend.

Financings in February and March raked in $5.2 million from Kinross Gold TSX:K, as well as nearly $15 million that came with the participation of Sprott Capital Partners.

In Ontario’s Cadillac-Larder Lake fault zone, meanwhile, BonTerra has drilling planned to update historic, non-43-101 resources. VP of exploration Dale Ginn believes three historic deposits could comprise a single deposit.

Read more about BonTerra Resources.

Commerce Resources and Ucore Rare Metals to co-operate on rare earths supply chain

June 5th, 2017

by Greg Klein | June 5, 2017

While China dominates the critical rare earths market, two companies plan to work together on potential North American supply and processing. Commerce Resources TSXV:CCE and Ucore Rare Metals TSXV:UCU have signed a memorandum of understanding to conduct metallurgical tests on material from Commerce’s Ashram REE deposit in northern Quebec. Characterized by relatively simple mineralogy and a favourable distribution of magnet feed elements, Ashram is currently moving towards pre-feasibility.

Commerce Resources and Ucore Rare Metals to co-operate on rare earths supply chain

The MOU would integrate Ashram material into Ucore’s SuperLig-One molecular recognition technology facility in Utah. A joint venture of Ucore and IBC Advanced Technologies, the MRT process involves selective separation.

The tests would determine the suitability of Ashram concentrate for a Strategic Metals Complex that Ucore plans to build in Utah to process REEs and platinum group metals. Following the tests, Commerce and Ucore would consider long-term supply and offtake agreements.

Metallurgical tests at a Colorado facility have already produced an Ashram concentrate surpassing 45% rare earth oxides at approximately 75% recovery.

Ashram’s “high-quality and high-grade mineral concentrate … looks to be a very promising candidate for processing via an MRT separation circuit,” commented Ucore president/CEO Jim McKenzie. “The Ashram deposit is large tonnage, good grade, hosts a well-balanced REE distribution with an enrichment in the magnet feed REEs and, perhaps most importantly, is highly accessible. In combination with the SMC, Ashram promises to be a key link in a self-contained North American REE supply chain.”

The news comes as U.S. Congress considers a bill to support domestic supplies and processing for minerals vital to defence, including rare earths. A number of recent reports from the U.S. Geological Survey have highlighted that country’s dependency on possibly insecure foreign sources.

Commerce president Chris Grove added, “Security of supply is vitally important and, with our simple mineralogy and successful use of standard processing, we look forward with Ucore to realizing the goal of an independent North American REE supply chain.”

Another recent MOU signed by Commerce would have independent power producer TUGLIQ Energy study the potential for wind-generated electricity on the Ashram project.

Last week Commerce closed a private placement of $942,630, which followed a February financing that raised $1.72 million including $1 million from Ressources Québec, a subsidiary of the provincial government corporation Investissement Québec.

Read more about Commerce Resources.

Read about the West’s dependency on China for critical minerals here and here.

92 Resources advances metallurgy for NWT hard rock lithium

June 1st, 2017

by Greg Klein | June 1, 2017

Phase I mineralogy studies have 92 Resources TSXV:NTY confident that its Hidden Lake lithium project in the Northwest Territories could be amenable to a conventional flowsheet. QEMSCAN and Electron Probe Micro Analysis on a composite sample from each of four pegmatites showed similar results, confirming spodumene as the primary host of lithium. The coarse-grained spodumene shows very good liberation characteristics and low iron content, the company stated.

92 Resources advances metallurgy for NWT hard rock lithium

The 1,659-hectare Hidden Lake project has all-weather
road access to Yellowknife, 45 kilometres southwest.

Spodumene liberation “indicates a strong potential for recovery using dense media separation and flotation techniques, which are common processing methods applied to spodumene-bearing pegmatites,” 92 Resources added.

The program also found potential for tantalum recovery, which will be further assessed in Phase II. About to begin, the program will conduct flotation tests to determine the reagent scheme and assess the ability to produce spodumene concentrate without additional processing.

Last year’s channel sampling targeted four of six known lithium-bearing spodumene dykes, with the best result showing:

  • 1.58% Li2O and 31 ppm Ta2O5 over 8.78 metres

  • (including 1.78% Li2O and 31 ppm Ta2O5 over 6.93 metres)

The company filed a 43-101 technical report on Hidden Lake in January.

92 Resources’ portfolio also includes the 5,536-hectare Pontax lithium prospect in northern Quebec and the 3,211-hectare Golden frac sand project in southeastern British Columbia.

In February the company closed an oversubscribed private placement of $895,199.

‘Everyone’s hiring again’

May 24th, 2017

Mining headhunter Andrew Pollard says executive recruiting presages a wave of M&A

by Greg Klein

As an executive search firm, the Mining Recruitment Group might serve as a bellwether for the industry. Founder and self-described mining headhunter Andrew Pollard says, “I put together management teams for companies, I connect people with opportunities and opportunities with people.” In that role, he experienced the upturn well before many industry players did.

To most of them, the long-awaited resurgence arrived late last year. Pollard saw it several months earlier.

Mining headhunter Andrew Pollard says executive recruiting could presage a wave of M&A

“The market came back in a huge way, at least in the hiring side, early last year when my phone started ringing a hell of a lot more,” he explains. “There was a huge volume. And what I’ve found is that the available talent pool for executives shrank in a period of about six months. In January 2016, for example, I was working on a search and there was almost a lineup out the door of some really big-name people. What I’m finding now, a year and a half later, is that the available talent has almost evaporated. It’s much harder to recruit for senior positions.”

Lately his work suggests another industry development. “The major upturn I’m seeing in the market now is a huge demand for corporate development people who can do technical due diligence on projects. Over the last few years large mining companies and investment banks cut staff almost to the bone in that regard because no one was interested in doing deals or looking at acquisitions.”

Just completed, his most recent placement was for Sprott. “They had me looking for someone with a technical background who can do due diligence for their investments. In doing so I spoke with everyone on the street, from investment banks to some big name corporate development people and they all said the same thing: Everyone’s hiring again. These are people who couldn’t get job offers a year ago, now every single candidate on the short list for this last search has multiple offers from companies looking to get them. I haven’t seen that in five years.

“So that leads me to believe companies have been staffing up their corporate development teams. I see that as a major sign that you’re going to see M&A pick up in a huge, huge way, probably over the next three to six months.”

An early example would be last week’s Eldorado Gold TSX:ELD buyout of Integra Gold TSXV:ICG—“one of my best clients over the years”—in a deal valued at $590 million.

Mining headhunter Andrew Pollard says executive recruiting could presage a wave of M&A

Andrew Pollard: Executive recruiting “leads me to believe companies have been staffing up their corporate development teams.”

“I think there’s leverage for other companies to start pulling the trigger faster because they’re adding the expertise to get these things done.”

Having founded the Mining Recruitment Group over a decade ago at the age of 20, “a snotty kid” with only a single year of related experience, he’s placed people in companies with market caps ranging from $5 million to well over $200 million. Now in a position to pick and choose his assignments, Pollard’s business concentrates on “the roles that will have the most impact on a company’s future.” That tends to be CEO, president, COO and board appointments.

Last year he placed five CEOs, as well as other positions. Among those assignments, Pollard worked with Frank Giustra on a CEO search for Fiore Exploration TSXV:F and filled another vacancy for Treasury Metals TSX:TML as it advances Goliath toward production.

But the hiring surge coincides with an industry-wide recruitment challenge. Pollard attributes that to a demographic predicament complicated by mining’s notorious cyclicality.

During the 1990s, he points out, fewer people chose mining careers, resulting in a shortage of staffers who’d now be in their 40s and 50s. Greater numbers joined up during the more promising mid-2000s, only to “get spat out” when markets went south. Now Pollard gets a lot of calls to replace baby boomers who want to retire. Too many of those retirements are coming around the same time, he says, because stock losses during the downturn had forced executives to postpone their exit.

Now, with a wave of retirements coinciding with a demographic gap, Pollard sees a “perfect storm to identify the next batch of young leaders.”

But he also sees promise in a new generation. That inspired him to assemble Young Leaders, one of two panel discussions he’ll present at the International Metal Writers Conference in Vancouver on May 28 and 29.

“By talking with some very successful executives age 35 and under, I want to show that we need to look at people one generation younger, and foster and develop this talent.”

By talking with some very successful executives age 35 and under, I want to show that we need to look at people one generation younger, and foster and develop this talent.

Well, it’s either talent or a precocious Midas touch that distinguishes these panel members. Maverix Metals TSXV:MMX CEO Dan O’Flaherty co-founded the royalty/streaming company just last year, already accumulating assets in 10 countries and a $200-million market cap.

As president/CEO of Skyharbour Resources TSXV:SYH, Jordan Trimble proved adept at fundraising and deal-making while building a 250,000-hectare uranium-thorium exploration portfolio in Saskatchewan’s Athabasca Basin. Integra president/CEO Steve de Jong raised the company from a $10-million market cap in 2012 to last week’s $590-million takeout.

And, demographic gap notwithstanding, Pollard’s second panel features three other success stories, just a bit older but with lots of potential left after guiding three of last year’s biggest M&A deals. They’ll take part in the Vision to Exit discussion, which closes the conference on May 29.

Eira Thomas burst into prominence at the Lac de Gras diamond fields where she discovered Diavik at age 24. Her most recent major coup took place last year on the Klondike gold fields with Goldcorp’s (TSX:G) $520-million buyout of Kaminak Gold.

Featherstone Capital president/CEO Doug Forster founded and led Newmarket Gold, producing over 225,000 ounces a year from three Australian mines and enticing Kirkland Lake Gold’s (TSX:KL) billion-dollar offer.

Now chairperson of Liberty Gold TSX:LGD and a director of NexGen Energy TSX:NXE, Mark O’Dea co-founded and chaired True Gold Mining, acquired in April 2016 by Endeavour Mining TSX:EDV. Three other companies that O’Dea co-founded, led and sold were Fronteer Gold, picked up by Newmont Mining NYSE:NEM in 2011; Aurora Energy, sold to Paladin Energy TSX:PDN in 2011; and True North Nickel, in which Royal Nickel TSX:RNX bought a majority interest in 2014.

“We’ll be looking at how they go into deals, what their philosophy is, what’s their current reading of the market and what they’re going to do next. They each have a big future ahead of them.”

Pollard’s two panel discussions take place at the International Metal Writers Conference on May 28 and 29 at the Vancouver Convention Centre East. Pre-register for free or pay $20 at the door.

In all, the conference brings generations of talent, expertise and insight to an audience of industry insiders and investors alike.

Read more about the International Metal Writers Conference.

Ivanhoe veteran Matthew Hornor joins Aurvista Gold as president/CEO

May 23rd, 2017

by Greg Klein | May 23, 2017

Management changes should help Aurvista Gold TSXV:AVA move to the next level as Matthew Hornor takes charge of financial and business development while Jean Lafleur leads exploration at the company’s Douay project in Abitibi.

Ivanhoe veteran Matthew Hornor joins Aurvista Gold as president/CEO

Hornor’s background includes 10 years as VP and executive VP for Ivanhoe Mines, where he negotiated deals with international banking syndicates, strategic alliances and equity financings totalling more than $450 million. He also spent 10 years as managing director for Ivanhoe Capital and four years as chairperson for Ivanplats Holding SARL, owner of the Platreef platinum-palladium mine in South Africa.

As president/CEO of Kaizen Discovery TSXV:KZD from 2013 to 2016, Hornor arranged project acquisitions, equity financings and a collaboration agreement with ITOCHU Corp, a prominent Japanese trading and investment house. Fluent in Japanese, he began his mining career in Japan 27 years ago. He visits the country frequently, maintaining relationships with major corporations, mining companies, investment firms and trading houses.

The appointment also allows Jean Lafleur to move from president/CEO to VP of exploration on the Douay project in Abitibi’s Casa Berardi deformation zone. Hornor’s experience “speaks for itself,” Lafleur said, “and having his corporate, capital markets and project financing leadership will help us accelerate the company’s growth and true value. I look forward to leading our exploration team in Quebec and working with our group to define the ultimate extent of gold mineralization at Douay.”

Well underway is a 43-hole, 30,000-metre campaign with an update planned later this year for a resource that currently shows an inferred 83.3 million tonnes averaging 1.05 g/t for 2.81 million gold ounces. Among results released so far, the company announced stepout intercepts earlier this month despite an assay lab backlog caused by the pace of drilling. In March Aurvista announced initial metallurgical test results in line with comparable Abitibi projects.

Last month the company more than doubled its Douay land position, which now stands at 30,500 hectares. Aurvista holds a 100% interest in about 29,300 hectares and a 75% interest in the 1,190-hectare North West zone, with the remainder held by JV partner SOQUEM, the mineral exploration branch of the provincial government’s Investissement Québec.

Read more about Aurvista Gold.

High-grade gold helps BonTerra Resources close the Rivage gap

May 16th, 2017

by Greg Klein | May 16, 2017

With a goal of demonstrating continuity along a 1.2-kilometre potential strike—and maybe stealing some of Osisko Mining’s (TSX:OSK) Urban Barry glory—BonTerra Resources TSXV:BTR released another batch of high-grade assays May 16. Results so far show the Gladiator deposit open in all directions but much of the drilling has focused on closing its gap with the Rivage zone to the west.

Intercepts released for the Rivage gap’s four zones show:

Hole BA-17-04

  • 9.5 g/t gold over 4.2 metres, starting at 88.8 metres in downhole depth, North zone

  • 10 g/t over 4 metres, starting at 233 metres, Footwall zone

  • 1.4 g/t over 25 metres, starting at 272 metres, Porphyry/Main zone
  • (including 3.6 g/t over 3 metres)
High-grade gold helps BonTerra Resources fill the Rivage gap

Fortified by money and high grades, BonTerra Resources
plans up to 40,000 metres for Gladiator’s current program.

BA-17-07

  • 12 g/t over 3 metres, starting at 355 metres, Main zone

BA-17-08

  • 7.5 g/t over 1 metre, starting at 210 metres, North zone

  • 8 g/t over 1 metre, starting at 264 metres, Mid zone

  • 6.4 g/t over 1.8 metres, starting at 300.2 metres, Footwall zone

  • 3.4 g/t over 5.7 metres, starting at 390 metres, Main zone

BA-17-09

  • 9 g/t over 1.8 metres, starting at 67 metres, Footwall zone

BA-17-10

  • 5.6 g/t over 1.5 metres, starting at 177.5 metres, North zone

  • 8.4 g/t over 3.5 metres, starting at 198.5 metres, Footwall zone

  • 5.2 g/t over 2.5 metres, starting at 212.5 metres, Mid zone

  • 5.3 g/t over 2 metres, starting at 237 metres, Main zone

True widths were estimated between 60% and 80%.

Continued high grades add to the anticipation of an update to Gladiator’s 2012 resource, which used a 4 g/t cutoff to show an inferred 905,000 tonnes averaging 9.37 g/t for 273,000 ounces gold.

With up to 40,000 metres planned for this campaign, drilling has so far hit multiple high-grade intercepts between Gladiator and Rivage, confirmed over one kilometre in strike for each of the Main and Footwall zones, and sought extensions of the Gladiator deposit to 850 metres in depth and 1.2 kilometres in strike, BonTerra stated. Drilling also focuses on the Deep East zone “and within large gaps or voids with currently little drill information” on the 8,126-hectare property.

In late March the company took out a 100% option on Durango Resources’ (TSXV:DGO) Trove property, which BonTerra described as a direct extension of its Gladiator/Coliseum southwest mineralized trend.

A few days earlier the company gained another large cash injection, this one a $5.2-million private placement that gave Kinross Gold TSX:K an approximately 9.5% stake in BonTerra. That followed nearly $15 million raised over February and March with the participation of Sprott Capital Partners.

BonTerra also holds the 2,165-hectare Larder Lake gold project in Ontario’s Cadillac-Larder Lake fault zone, where drilling’s planned to bring historic, non-43-101 resources for two zones up to date.

Read more about BonTerra Resources.

BonTerra president/CEO Nav Dhaliwal comments on a $5.2-million private placement by Kinross Gold

May 10th, 2017

…Read more