Wednesday 7th December 2016

Resource Clips


Posts tagged ‘Rio Tinto PLC ADS (RIO)’

NRG Metals completes due diligence on Argentinian lithium properties

November 21st, 2016

by Greg Klein | November 21, 2016

Among the companies active in South America’s Lithium Triangle, NRG Metals TSXV:NGZ has finished due diligence on two properties that would comprise the Carachi Pampa project in northwestern Argentina. Totalling 6,387 hectares, the contiguous properties sit in an area hosting geological features common to other lithium-rich salars in the region, the company stated on November 18. “The lithium target is a paleo salar (basin) at depth that has the potential to host lithium-enriched brines.”

NRG Metals completes due diligence on Argentinian lithium properties

NRG sees potential for lithium-enriched brines
in the Lithium Triangle’s Carachi Pampa project.

Located 40 kilometres from the town of Antofagasta de la Sierra at about 3,000 metres in elevation, the properties have winter access, a paved road 10 kilometres away and nearby services.

NRG has retained experienced lithium explorers Rojas and Associates and Sergio Lopez and Associates to review the project, with Rojas to complete a 43-101 technical report.

The properties are subject to different four-year purchase agreements, according to an LOI announced September 21. With all dollar figures in U.S. currency, one property calls for $120,000 on signing a definitive agreement, $200,000 in each of three annual payments and $600,000 at the end of the fourth year. A 1% NSR applies, which NRG may buy back for $1 million.

The other project would cost $160,000 on signing, $100,000 in two annual payments, $250,000 in year three and $625,000 in year four. Again, the company may buy back the 1% NSR for $1 million.

NRG offered a private placement up to C$1 million. Additionally, the company has negotiations underway on other properties.

In October NRG announced a management team for its Argentinian subsidiary, NRG Metals Argentina S.A. Executive director James Duff has written several 43-101 reports for Argentinian projects and served as COO of McEwen Mining TSX:MUX acquisition Minera Andes and president of South American operations for Coeur Mining NYSE:CDE.

Non-executive director José Gustavo de Castro is a chemical engineer with extensive experience in the evaluation and development of Argentinian lithium projects including the continent’s largest lithium producer, FMC Corp’s Hombre Muerto operation.

Manager of business development and corporate relations José Luis Martin’s 35-year career includes senior positions with Galaxy Lithium S.A. and Rio Tinto’s (NYSE:RIO) Argentinian projects.

Director Jorge Vargas specializes in property, mining and business law in Argentina.

Also last month NRG announced plans to spin out other assets to concentrate on lithium. The portfolio currently includes the LAB graphite project in Quebec and the Groete gold-copper resource in Guyana.

Arctic Star/Margaret Lake Diamonds form JV, follow Kennady’s approach to NWT kimberlites

November 15th, 2016

by Greg Klein | November 15, 2016

A new joint venture brings together Arctic Star Exploration TSXV:ADD and Margaret Lake Diamonds TSXV:DIA in the Northwest Territories’ Lac de Gras region. Finding inspiration in Kennady Diamonds’ (TSXV:KDI) success at Kennady North, the partners plan a similar approach to their newly compiled property.

By posting an approximately $200,000 bond with the NWT government, Margaret Lake has earned a 60% interest in 23 claims totalling 18,699 hectares comprising the Diagras property, the JV announced November 15. Hosting 13 known diamondiferous kimberlites, the claims were formerly part of Arctic Star’s 54,000-hectare T-Rex property.

Arctic Star/Margaret Lake Diamonds form JV, follow Kennady’s approach to NWT kimberlites

The bond accompanies an application to extend the Diagras claims to August 2017.

“We identified the claims we wanted to joint venture based on our evaluation of historic data and we specifically focused on those claims that have known kimberlitic occurrences,” said Margaret Lake president/CEO Paul Brockington. His company will act as project operator.

The JV intends to follow Kennady’s modus operandi. The property’s Kelvin and Faraday kimberlites were dropped by De Beers and Mountain Province Diamonds TSX:MPV as they advanced Gahcho Kué, recently opened as the world’s largest new diamond mine in 13 years.

De Beers considered Kelvin and Faraday low grade, based on their lack of prominent magnetic anomalies, according to the Arctic/Margaret JV. Mountain Province then spun out Kennady to explore the pipes. That company “applied ground geophysics, gravity and Ohm mapper EM, which revealed extensions to these kimberlites that were not revealed in the magnetics,” the Diagras partners stated. “Subsequent drilling and bulk sampling has shown that these non-magnetic phases of the kimberlites have superior diamond grades to the magnetic phases and significantly increase the tonnage potential.”

Looking at some nearby deposits, the JV states that certain kimberlites at the Rio Tinto NYSE:RIO/Dominion Diamond TSX:DDC Diavik mine and the high-grade portions of Peregrine Diamonds’ (TSX:PGD) majority-held DO-27 kimberlite “are non-magnetic, proof that a magnetic-only approach in the Lac de Gras field could miss significant diamondiferous kimberlite bodies.”

The JV plans to follow Kennady’s surveying approach at Diagras. Most of the property’s kimberlites have had only one to three drill holes into their magnetic anomalies.

The partners also see potential in “two untested geophysical targets and several diamond indicator mineral anomalies that are not clearly sourced from the known pipes.” Ground geophysics are scheduled to begin next spring.

Read how Lac de Gras diamond mines transformed the NWT economy.

A transformational discovery

November 10th, 2016

Lac de Gras glitter became the backbone of the NWT economy

by Greg Klein

This is the second of a two-part feature. See Part 1.

The greatest staking rush the world’s likely seen, a shakeup of the global diamond industry and a tremendous boost to Northwest Territories finances—all that started with the Ekati discovery announced by Chuck Fipke 25 years ago this week. The effects on the NWT alone were momentous. The exploration sector boomed like never before, reaping four discoveries in six years that became working mines, while communities and individuals realized benefits both tangible and intangible.

Exploration fervour “certainly caused an injection into the economy,” notes Tom Hoefer, NWT and Nunavut Chamber of Mines executive director. “But where it really made a difference was when we had mines developed.”

Lac de Gras glitter became the backbone of the NWT economy

The Ekati mine began a transformation that
out-performed all other resources and sectors in the NWT.

It actually took two operations, Ekati and Diavik, to offset the territory’s 1990s economic malaise, he says. Yellowknife’s Giant and Con mines were winding down their 50 to 60 years of gold production. Around the same time, Nunavut’s 1999 separation dealt a blow to NWT revenue. “So there was a double hit on the economy. When Ekati went into production, it wasn’t enough to offset that economic downturn. It wasn’t until Diavik that the economy turned around significantly.

“It was almost palpable when Diavik got its approval. You could cut it, you could just feel it, all of a sudden people were saying, ‘Now we’re set.’ Those turned out to be world-class diamond mines, so in hindsight people were right.”

Of more than $60 billion worth of NWT mining output since 1932, gold provided 18%. It’s sometimes forgotten that the territory was a major base metals producer too, with zinc accounting for 30% of that $60-plus billion. But less than two decades of diamond production contributed 38%. The value of annual diamond production has topped $2 billion in the past “and I think we’re around $1.7 billion now,” Hoefer says. “That’s pretty significant when you consider that the NWT government’s entire budget is about the same.”

With last year’s shutdown of the Cantung tungsten operation, the territory has no mining but diamond mining. The three mines now in operation rank Lac de Gras as the world’s third-largest producer by value.

Figures from 2014 credit diamond mining with a 29% direct contribution to territorial GDP, by far the largest private sector portion. Chamber data attributes direct and indirect benefits to about 40% .

Taking another perspective, Hoefer points to a 2014 Canada-wide survey on aboriginal perceptions of the mining industry. Outside the NWT and Nunavut, favourable ratings ranged from 25% in Quebec to 45% in the Yukon. NWT responses were 55% favourable compared to 33% unfavourable, with 12% undecided. The territory ranked second only to Nunavut, which had 59/32/9 ratings.

“I would say the reason is all the aboriginal participation we’ve had in mining,” Hoefer says.

An NWT-specific survey taken this year shows overwhelming support. About 80% of respondents expressed positive feelings about the territory’s mining and exploration companies, 83% said regulation works well and 82% want more mining projects.

Those responses might partly result from the way benefits are distributed. Territorial legislation requires mining proposals to address not only environmental impacts but also positive socio-economic effects, Hoefer explains. Companies sign agreements with the government that address training, employment and local spending. The miners then file annual reports stating what they’ve accomplished.

“Put the clock back to before diamonds were discovered and the first mine built, there was maybe just a handful of aboriginal companies that could work with mining.” Now the Chamber lists over 60 NWT aboriginal companies created since Ekati began construction in 1996. They’ve shared over $5 billion of the $12 billion that diamond miners have spent in the territory.

The mines have also contributed over $100 million to communities under Impact Benefit Agreements.

And of course there are the jobs. Lac de Gras diamonds have provided over 24,000 person-years of mine employment.

That’s really in essence what I think a government would want to do with its resources—generate wealth for people who don’t have it.—Tom Hoefer,
executive director of the NWT
and Nunavut Chamber of Mines

“That’s really in essence what I think a government would want to do with its resources—generate wealth for people who don’t have it.”

Looking to the future, Lac de Gras explorers continue the quest for more deposits. Among existing miners, the Rio Tinto NYSE:RIO/Dominion Diamond TSX:DDC 60/40 JV expects Diavik to last until 2024. Plans to add a fourth deposit won’t extend the lifespan but will keep production robust until shutdown, Hoefer says.

De Beers’ technically challenged Snap Lake shut down last year, at a cost of about 750 jobs. Some of them were saved by Gahcho Kué, which last summer became the world’s largest diamond mine to open in 13 years. But despite output that’s expected to be about two and a half times greater than Snap, the open pit will employ fewer people, currently 441. The De Beers/Mountain Province Diamonds TSX:MPV 51%/49% JV sees an initial 12-year mine life, but Mountain Province talks optimistically of extensions.

Getting back to the genesis of all this economic activity, Dominion’s majority-held Ekati would have its life expectancy extended to at least 2030 should the Jay pipe addition pass feasibility and final permitting. The mine employs around 1,500 workers and accounts for about $400 million in annual spending.

Commemorating the quarter-century since Ekati’s discovery, the NWT and Nunavut Chamber of Mines presents a Diamond Gala on November 17, the final evening of this year’s Geoscience Forum. Hoefer says the event will be a three-part celebration recognizing the discovery, the subsequent construction and operation of four mines, and the support of aboriginal governments. Fipke will be on hand as guest speaker, perhaps marvelling at the transformation brought about by his pursuit of Lac de Gras glitter.

This is the second of a two-part feature. See Part 1.

Diamond anniversary

November 4th, 2016

After 25 years, the Ekati discovery still rocks the NWT, mining and the world of diamonds

by Greg Klein

This is the first of a two-part feature. See Part 2.

“You know, there’s something fishy going on around Lac de Gras.”

Tom Hoefer remembers hearing that from a local mining guy who dropped by his Yellowknife office one autumn day in 1991. “At the time nobody really cared about Lac de Gras because that was granite country,” Hoefer explains. But a visit to the mining recorder’s office showed someone staked “a huge block of ground, abnormally large. Doubly suspicious, I think it was registered to Norm’s Manufacturing or Norm’s Mattress Company or something. It was so bizarre. Someone was hiding something.”

After 25 years, the Ekati discovery still rocks the NWT, mining and the world of diamonds

Hoefer’s friend offered an explanation. “The only thing I think this could be for is diamonds.” He had previous experience with Monopros, De Beers’ Canadian exploration company. He was also an habitué of the Miner’s Mess, a YK cafe where industry rumours circulated as thickly as the cigarette smoke.

The buzz was confirmed on a date variously given as November 6 or 7, 1991. That’s when the secretive Chuck Fipke stopped pretending to be a gold explorer and faxed a Dia Met news release reporting Northwest Territories diamond recovery, some of it gem quality. It was the first significant find in Canadian history.

“Of course it just went crazy,” recounts Hoefer, now executive director of the NWT and Nunavut Chamber of Mines. “We saw the entire Slave province staked in around two years.”

That may well be the biggest staking rush the world’s seen. As crews fanned out across northern and not-so-northern Canada, suppliers couldn’t provide claim posts fast enough. Helicopters couldn’t keep up with demand. Work continued through the winter, despite hostile weather, despite darkness that restricted flying time to six hours or less.

“It just kept getting bigger and bigger,” Hoefer says. But for many people it couldn’t have happened at a better time.

“The junior exploration sector was just about dead,” he recalls. “I think the juniors saw the news as a life preserver. Whether it was real or not, something was going on and they wanted to grab onto it. I think people scraped money from wherever they could, whether they mortgaged houses or borrowed, just to get into this play. They were on their last legs anyway—if you’re going to go down, you might as well go down in flames.”

Competition was all but cutthroat, as recounted in books like Treasure Under the Tundra by L.D. Cross and Matthew Hart’s Diamond: The History of a Cold-Blooded Love Affair. Readers learn of stakers wearing camouflage clothing to evade detection by rivals, of efforts to foil geophysical espionage from enemy aircraft, and of a diplomatic incident provoked by Thor, Eira Thomas’ supposed bodyguard, said to be 50% dog, 50% wolf and 100% chickenshit.

After 25 years, the Ekati discovery still rocks the NWT, mining and the world of diamonds

Ekati co-discoverers Chuck Fipke and
(inset) Stewart Blusson. (Photos: BHP)

Staking wasn’t all that went crazy. Once a penny stock, Dia Met passed $8 less than three months after the announcement, according to Hart. In other examples, he noted that pre-discovery Aber Resources shot from 25 cents to $1.35, and later to $2.34. An ex-Dia Met employee started SouthernEra Resources at a penny a share. Within months the company hit $1.90. Speculative fever eventually cooled off but, as Aber approached discovery at Diavik in late 1994, its shares shot from $4 to $6 in one day.

Ekati and Diavik, of course, went on to become NWT diamond mines, joined later by De Beers’ Snap Lake. But as the territory’s other mines closed due to depletion or commodity prices, and Snap shut due to technical challenges, Gahcho Kué began operations. That continues Lac de Gras’ status as the world’s third-largest supplier of diamonds by value.

Fipke and Ekati co-discoverer Stewart Blusson succeeded where De Beers had thus far failed. They also helped bring down the giant’s near-monopoly. Dia Met partner BHP, like Aber partner Rio Tinto, couldn’t be intimidated by De Beers, then a company with a reputation for muscling in on much smaller diamond hopefuls. Lac de Gras hastened a process that began when a Rio predecessor started mining diamonds at Western Australia’s Argyle in the early 1980s. De Beers went from controlling about 80% of global rough in the early 1990s to 34% in 2015.

Hart suggested an additional factor to the giant’s decline. The rush “happened in Canada, where the mineral exploration scene is dominated by a host of small, unruly companies, called ‘juniors’…. The idea of yoking such a promoter-driven and combative group to some larger purpose, such as commodity price control, would be laughable.”

Lac de Gras also helped restore confidence in the ethical standards of gems. Holding among the world’s highest environmental and corporate social responsibility standards, Canada guaranteed consumers a source of conflict-free stones. Canadians played a strong role in launching the Kimberley Process, an organization that guards the global diamond market from illicit supply, Hoefer says.

Here at home, diamond miners emphasize community engagement, community responsibility and community benefits, he adds. Lac de Gras mines constitute the NWT’s largest private sector employer, creating 29% of the territory’s GDP. Indirect benefits bring that up to about 40%, according to the Chamber’s data.

“If you look back at where we’ve come from and what we’ve achieved, it really is a cause to celebrate,” he emphasizes. “Now we’re looking forward to the next 25 years. It doesn’t come without challenges, so we have to ask what we can do to have another strong 25 years.”

This is the first of a two-part feature. See Part 2.

Pistol Bay Mining plans November drilling on Dixie zinc projects in Ontario

October 26th, 2016

by Greg Klein | October 26, 2016

It’s neither the land of cotton nor of traditional jazz, but of zinc with additional metals. And that’s why Pistol Bay Mining TSXV:PST has a November drill program planned for three of its western Ontario Dixie properties. Totalling about 1,900 hectares, Dixies 17, 18 and 19 host lenses of volcanogenic massive sulphides with zinc, copper, silver and minor gold in the Confederation Lake greenstone belt southeast of Red Lake.

Pistol Bay Mining plans November drilling on Dixie zinc projects in Ontario

All three have historic zinc-copper assays.

A review of previous geophysics will help determine drill targets for the three zones. Additionally, Pistol Bay proposes confirmation holes for Dixie 17 and 18.

Also on October 25, the company announced a private placement of up to $820,000. Pistol Bay closed a $563,450 placement in August.

Earlier this month the company announced a letter of intent to acquire regional properties from AurCrest Gold TSXV:AGO, which would make Pistol Bay the greenstone belt’s largest claimholder. The 5,136-hectare package includes a zinc-copper-silver resource and an historic, non-43-101 estimate.

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

See an infographic: Eleven things every metal investor should know about zinc.

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

October 19th, 2016

by Greg Klein | October 19, 2016

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

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

 

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

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

3% zinc-equivalent cutoff

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

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

5% zinc-equivalent cutoff

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

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

10% zinc-equivalent cutoff

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

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

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

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

The companies expect to close within a week.

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

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

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

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

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

October 6th, 2016

by Greg Klein | October 6, 2016

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

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

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

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

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

  • 5.32% zinc over 1.25 metres

Historic drilling on other zones found:

Dixie 17

  • 7.34% zinc and 1.4% copper over 9.5 metres

Dixie 18

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

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

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

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

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

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

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

Why stop there?

September 20th, 2016

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

by Greg Klein

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Pistol Bay readies geophysics, fall drilling for Ontario zinc and copper

September 8th, 2016

by Greg Klein | September 8, 2016

With field work about to begin, Pistol Bay Mining TSXV:PST renews the search for zinc and other base metals on its newly expanded Dixie projects in Ontario’s Red Lake region. Historic geophysics and drilling found multiple occurrences of predominantly zinc-rich, volcanogenic massive sulphide mineralization and two historic, non-43-101 estimates for near-surface deposits, the company stated.

An historic, non-43-101 estimate for the Dixie 3 zone, for example, showed 82,500 tonnes averaging 10% zinc and 1% copper.

Pistol Bay readying geophysics, fall drilling for Ontario zinc and copper

Subject to permitting, the company plans line cutting, ground geophysics, stripping and a fall/winter drill program on shallow targets that have yet to be adequately tested. Work could also entail additional deep-penetrating electromagnetic surveys.

A review of previous exploration will include locating drill collars, where possible, to model mineralized zones. Work might also entail downhole EM surveys to search for deeper mineralization. Historic core will be assessed, as well as new rock samples.

Last week Pistol Bay announced an option to add the 640-hectare Dixie 3 property to its other Dixie projects about eight kilometres away. The properties sit within the Confederation Lake greenstone belt, host to numerous VMS occurrences and deposits, the company added.

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

On August 29 Pistol Bay closed a $563,450 private placement.

Pistol Bay benefits from previous work by expanding its Dixie zinc-copper project

September 1st, 2016

by Greg Klein | September 1, 2016

An option announced September 1 would add 640 hectares to Pistol Bay Mining’s (TSXV:PST) zinc-copper claims in Ontario’s Red Lake mining district. Formerly known as the Snake Falls property, Dixie 3 sits eight kilometres from the company’s Dixie 17, 18 and 19 properties. All four host mineralized zones and reside within the Confederation Lake greenstone belt, home to several volcanogenic massive sulphide deposits. The four Dixies now total 1,712 hectares, roughly 35 to 45 kilometres southeast of the town of Red Lake.

Pistol Bay benefits from previous work by expanding its Dixie zinc-copper project

Past exploration on Dixie 3 included 80 drill holes, finding a number of mineralized zones including the Dixie 3 VMS zone. Some historic intervals from the property include:

  • 1.1% zinc and 0.08% copper over 30.5 metres in downhole depth

  • 0.95% zinc over 18.4 metres

  • 0.5% zinc and 0.04% copper over 28 metres
  • (including 1.9% zinc and 0.11% copper over 5.2 metres)

  • 0.57% zinc and 0.05% copper over 24 metres

A notable intercept from Dixie 17 found 7.34% zinc and 1.4% copper over 9.5 metres. The Dixie 18 mineralized zone has been drilled to 250 metres in length and 150 metres in depth. The Dixie 19 zone has been tested over a length of 500 metres, with intervals up to 6.33% zinc and 1.5% copper over 3.55 metres.

Pistol Bay intends to compile Dixie 3’s historic drilling and geophysical data. Future work could include additional deep-penetration surveys, as well as drilling new targets and possible extensions of mineralized zones. The property can be reached by all-weather forestry access roads.

Dixie 3 comes with a price tag of $56,000 and 2.4 million shares over three years. NSR royalties totalling 1% apply.

In Saskatchewan’s Athabasca Basin, Pistol Bay holds the C-5 uranium property, a JV with a Rio Tinto NYSE:RIO subsidiary which has so far earned 75% of its 100% option.

Earlier this week Pistol Bay closed a private placement of $563,450.