Wednesday 29th March 2017

Resource Clips


Posts tagged ‘saskatchewan’

Pistol Bay expands Confederation Lake package, adding gold to base metals potential

March 22nd, 2017

by Greg Klein | March 22, 2017

The largest portfolio in western Ontario’s Confederation Lake greenstone belt just got larger as Pistol Bay Mining TSXV:PST increased its holdings to about 9,450 hectares. Two claim groups, Lucky 7 and Moth, cover “a 53-kilometre length of favourable volcanic geology,” the company stated.

Pistol Bay expands Confederation Lake package, adding gold to base metals potential

Neighbouring Pistol Bay’s Garnet Lake and Garnet East properties, the 640-hectare Lucky 7 hosts a copper-gold sulphide zone that was drilled in 1980 and 2002. A zone of massive to disseminated sulphides, the Hilltop copper-gold zone, was trenched but apparently never drilled. One of two Hilltop grab samples taken last year assayed 13.84 g/t gold and 3.21% copper.

Five kilometres from Lucky 7, the 1,360-hectare Moth claims underwent at least 14 holes between 1970 and the mid-1990s, revealing widespread hydrothermal alteration and numerous cases of zinc and/or copper mineralization, Pistol Bay stated. One interval graded 2.86 g/t gold over 0.3 metres. Located two kilometres from the former South Bay zinc-copper-silver mine, Moth sits near the Confederation belt’s most accessible area.

[Assays] suggest that we might be getting into an area with a potential for gold as well as base metals. This is something that hasn’t been widely recognized before in the Confederation Lake belt.—Charles Desjardins,
CEO of Pistol Bay Mining

Assays from both properties “suggest that we might be getting into an area with a potential for gold as well as base metals,” said CEO Charles Desjardins. “This is something that hasn’t been widely recognized before in the Confederation Lake belt.”

Together, the two properties will cost $72,000 and 2.3 million shares over three years. Pistol Bay may buy half of the 1.5% NSR for $400,000.

Last month the company acquired an historic data set for its recently optioned Joy North copper-zinc project. Mostly consisting of drill logs and ground geophysics maps, the info will go into a digital database including drill information, geology, assays, rock chemistry, petrology and geophysics. Now under consideration is an airborne EM and mag survey to penetrate deeper than earlier systems and better discriminate bedrock from overburden conductivity.

Pistol Bay’s overall strategy is to apply modern methods and a regional approach to properties that had previously been explored individually by different companies using earlier techniques.

The company also holds the C4, C5 and C6 uranium properties in Saskatchewan’s Athabasca Basin, where a Rio Tinto NYSE:RIO subsidiary advances towards a 100% interest.

On March 20 Pistol Bay closed a private placement totalling $548,436.

Read more about Pistol Bay Mining.

Saskatchewan and Manitoba first and second globally as mining jurisdictions

March 1st, 2017

by Greg Klein | March 1, 2017

Saskatchewan edged one notch upwards to take first place worldwide while Manitoba soared from 19th to second in this year’s Fraser Institute survey of mining and exploration jurisdictions. Those two provinces pushed last year’s top performer, Western Australia, down to third place. Canada’s other top 10 spot went to Quebec, rising to sixth from eighth the year before. All continents but Antarctica came under scrutiny but Canadian, American, Australian and European locales monopolized the top 10.

Farther down the list, the strongest Canadian improvements were Newfoundland and Labrador, climbing to 16th from 25th, and the Northwest Territories, now 21st, previously 35th. Most disappointing were British Columbia (falling to 27th from 18th), Nunavut (31st from 23rd) and Alberta (47th from 34th).

Those findings come from the survey’s Investment Attractiveness Index, which combines two other indices—Policy Perception, a “report card” on government attitudes, and Best Practices Mineral Potential, concerning geological appeal. Representatives of 104 companies responded with their 2016 experiences in mind, giving a numerical rating to questions in several categories regarding their likelihood of investing in a particular jurisdiction. The previous year 109 companies responded.

Here’s the top 10 globally for overall investment attractiveness, with last year’s standings in parentheses:

1 Saskatchewan (2)

2 Manitoba (19)

3 Western Australia (1)

4 Nevada (3)

5 Finland (5)

6 Quebec (8)

7 Arizona (17)

8 Sweden (13)

9 Ireland (4)

10 Queensland (16)

Here are the Canadian runners-up:

15 Yukon (12)

16 Newfoundland and Labrador (25)

18 Ontario (15)

21 Northwest Territories (35)

27 British Columbia (18)

31 Nunavut (23)

40 New Brunswick (45)

47 Alberta (34)

52 Nova Scotia (59)

At least those provinces and territories steered far clear of the bottom 10, where Argentina figures prominently:

95 Mozambique (84)

96 Zimbabwe (98)

97 India (73)

98 Mendoza province, Argentina (101)

99 La Rioja province, Argentina (109)

100 Afghanistan (not available)

101 Chubut province, Argentina (104)

102 Venezuela (108)

103 Neuquen province, Argentina (93)

104 Jujuy province, Argentina (86)

“We believe that the survey captures, at least in broad strokes, the perceptions of those involved in both mining and the regulation of mining in the jurisdictions included in the survey,” stated authors Taylor Jackson and Kenneth P. Green.

Download the Fraser Institute Annual Survey of Mining Companies 2016.

Pistol Bay Mining adds new property to Confederation Lake portfolio

February 16th, 2017

by Greg Klein | February 16, 2017

Pistol Bay Mining TSXV:PST hopes to unlock one of the puzzles of western Ontario’s Confederation Lake greenstone belt with its 100% option on the Joy North property. The 64-hectare claim lies contiguous with the company’s previously acquired Joy group of claims, which include five mineralized VMS zones. Pistol Bay’s Dixie zone is located about 11 kilometres east of Joy North.

Pistol Bay Mining adds new property to Confederation Lake portfolio

The new property covers a 1,000-metre-long conductive zone where a geochem survey found anomalous zinc, copper and gold. The conductor’s stronger areas also showed stronger magnetic responses.

In 1970 a single 48-metre hole found metavolcanic rocks with the intense alteration associated with volcanogenic massive sulphide deposits. The hole also revealed calc-silicate rocks “suggesting the property may lie at the same stratigraphic horizon as the Dixie zone,” Pistol Bay stated.

The previously acquired Joy group includes the Diamond Willow zone, with an historic, non-43-101 estimate of 270,000 tonnes averaging 4% zinc.

Past drilling highlights from the other four zones have included:

  • Joy Zone: 3.1% copper and 0.2% zinc over 5.7 metres
  • 4.01% copper and 0.17% zinc over 3.35 metres

  • Creek Zone: 2.33% copper and 0.27% zinc over 0.95 metres

  • South Zone: 0.28% copper and 17.17% zinc over 0.6 metres
  • 0.17% copper and 8.36% zinc over 0.25 metres

  • Caravelle Zone: 0.13% copper and 21.6% zinc over 0.25 metres
  • 0.22% copper and 4.44% zinc over 1.1 metres

The new acquisition “includes one of the very few electromagnetic anomalies in the prolifically mineralized Confederation Lake greenstone belt that has not been satisfactorily explained by diamond drilling,” commented CEO Charles Desjardins. The geochemical anomalies also “make it a prime exploration target,” he added.

Subject to approvals, Joy North’s price tag comes to a total of one million shares and $40,500 over four years. A 2% NSR applies, half of which may be bought back for $500,000 and the other half for $1.5 million. Pistol Bay must also drill at least two holes totalling 600 metres. The company intends to drill the project this year.

Last month Pistol Bay updated plans for a regional, multi-disciplinary approach to its Confederation Lake portfolio, which hosts properties that were previously explored by different companies in an inconsistent manner.

In Saskatchewan’s Athabasca Basin, Pistol Bay also holds the C4, C5 and C6 uranium properties, currently being drilled by a Rio Tinto NYSE:RIO subsidiary earning a 100% interest.

Two days before the Joy North announcement, the company appointed geologist Jody Dahrouge to its advisory board.

Read more about Pistol Bay Mining.

Pistol Bay Mining appoints Jody Dahrouge to advisory board

February 14th, 2017

by Greg Klein | February 14, 2017

Geologist Jody Dahrouge has joined Pistol Bay Mining TSXV:PST as an adviser, the company announced February 14. With a CV spanning over a quarter of a century in Canada and abroad, he brings a successful background in base metals, industrial minerals, rare metals and uranium exploration.

Pistol Bay Mining appoints Jody Dahrouge to advisory board

Jody Dahrouge

As president of Dahrouge Geological Consulting, he and his staff have worked with a broad range of exploration and mining companies. Until 2007, Dahrouge served as president/COO of Fission Energy, a predecessor of Fission Uranium TSX:FCU. While there he played a key role in the acquisition of Waterbury Lake and Patterson Lake South, both of which yielded significant discoveries. Dahrouge has also served as a director and VP of exploration for Commerce Resources TSXV:CCE since 2000.

“We are excited to be able to benefit from the knowledge and expertise of Mr. Dahrouge and look forward to working with him,” said Pistol Bay CEO Charles Desjardins.

Last month the company outlined plans for a regional and multi-disciplinary exploration approach to its Confederation Lake portfolio, the largest land package in the western Ontario greenstone belt. Pistol Bay expects to file a 43-101 technical report on Confederation Lake’s Arrow zone by mid-March.

In Saskatchewan’s Athabasca Basin, the company holds the C4, C5 and C6 uranium properties, now being drilled by a Rio Tinto NYSE:RIO subsidiary as it advances towards its 100% option.

Read more about Pistol Bay Mining.

Pistol Bay Mining president Charles Desjardins discusses the VMS potential of his company’s portfolio in Ontario’s Confederation Lake greenstone belt

January 30th, 2017

…Read more

Rio continues 100% option on Pistol Bay Mining’s Athabasca Basin uranium project

January 24th, 2017

by Greg Klein | January 24, 2017

Having resumed drilling, a Rio Tinto NYSE:RIO subsidiary advances towards a 100% interest in Pistol Bay Mining’s (TSXV:PST) C4, C5 and C6 uranium properties in Saskatchewan’s Athabasca Basin. Rio Tinto Exploration Canada has so far earned 75% of the properties and stated its intention to exercise the full option. That would bring Pistol Bay $5 million by the end of 2019 and a 5% net profits interest.

Rio continues 100% option on Pistol Bay Mining’s Athabasca Basin uranium project

Located in a prolific area, C4, C5 and C6 adjoin Wheeler River, a JV of Denison Mines TSX:DML, Cameco Corp TSX:CCO and JCU (Canada) Exploration that hosts two exceptionally high-grade deposits. The Phoenix zone holds an indicated resource of 70.2 million pounds averaging 19.13% U3O8, the world’s highest-grade undeveloped uranium deposit.

Wheeler’s Gryphon zone shows an inferred 43 million pounds averaging 2.3%. C4, C5 and C6 are located about halfway between Cameco’s majority-held McArthur River, the world’s largest high-grade uranium mine, and Key Lake, the world’s largest uranium mill.

Rio plans four to six holes totalling about 2,600 metres on C5 beginning this month. Past work at C5 has included 12 holes totalling 6,104 metres, along with gravity and DC resistivity surveys.

Five kilometres of rough roads link the three properties to the all-weather route connecting McArthur River with Key Lake.

Last week Pistol Bay updated plans for its properties in Ontario’s Confederation Lake greenstone belt, where the company holds the area’s largest property package. Pistol Bay plans to bring modern geophysics and a region-wide approach to a district where previous companies have explored individual properties at different times.

Late last month the company closed a private placement first tranche totalling $201,850.

Read more about Pistol Bay Mining.

Diamonds—2016 glitter in review

December 22nd, 2016

by Greg Klein | December 22, 2016

The stones began the year still mired in their 2015 slump, in which rough prices reportedly fell 15%. The two biggest players, representing nearly two-thirds of global production, didn’t exactly agree on strategy. De Beers cut production and lowered prices while Alrosa initially boosted production, held prices stable and stockpiled some output. By April De Beers raised prices and Alrosa lowered production. The following month had De Beers talking about a “fragile recovery.”

Diamonds—2016 glitter in review

Sales records for polished got pulverized, though. In May Sotheby’s raked in $32 million for the 15.38-carat Unique Pink in a jewelry sale that totalled a world record $175.1 million. The next day Christie’s scooped up $58.25 million for the 14.62-carat Oppenheimer Blue, “a new record price for any gemstone and per carat.”

Rough rode roughshod over records, too. The week before Sotheby’s and Christie’s big sales, Lucara Diamond TSX:LUC got $63.11 million for its fresh-from-the-mine 812.77-carat Constellation. High expectations led to disappointment in late June, however, when the company rejected a $61-million offer for its 1,109-carat Lesedi La Rona rough stone, the second-biggest diamond ever found. Lucara wanted at least $70 million.

As for Canadian diamond mining, it thrived.

A 100-million-carat production milestone brought celebrations to Diavik, the Northwest Territories JV of Rio Tinto NYSE:RIO and Dominion Diamond TSX:DDC. In July Dominion finally decided to add the Jay pipe and its 78.6 million carats to the company’s majority-held Ekati mine.

The year brought new mines to Canada too. Gahcho Kué, the world’s largest new diamond producer in 13 years, was officially opened in September by partners De Beers and Mountain Province Diamonds TSX:MPV. October saw Stornoway Diamond TSX:SWY do the same at Renard, Quebec’s first diamond mine. It reached commercial production just days before Christmas.

Looking at potential mines-to-be, Peregrine Diamonds TSX:PGD took its Chidliak project on Baffin Island to PEA in July. In Saskatchewan’s Fort à la Corne region, meanwhile, Shore Gold TSX:SGF continued working on a feasibility update for its majority-held Star-Orion South project. Back in the NWT, Kennady Diamonds TSXV:KDI completed its maiden resource in December.

The company’s Kennady North project sits in the same Lac de Gras region hosting Ekati, Diavik and Gahcho Kué. November marked the 25th anniversary of the Chuck Fipke/Stewart Blusson Ekati discovery that triggered the world’s biggest staking rush, brought diamond mining to Canada and helped transform the diamond industry.

In December the vertically integrated company Almod Diamonds announced plans to broaden the NWT diamond industry, the backbone of the territorial economy, by re-opening a Yellowknife cutting and polishing facility.

A few days after that announcement, the allure of diamonds played out differently in an Atlanta department store. Eighty-six-year-old Doris Payne, a determined, unrepentant and often unsuccessful diamond thief, wracked up another arrest. She’s been stealing stones for over sixty years.

Polymetallic promise

December 16th, 2016

Pistol Bay Mining brings regional exploration to Ontario’s VMS-rich Confederation Lake

by Greg Klein

During the doom and gloom of mid-2015 Charles Desjardins saw a hopeful sign in zinc. A search for prospective sources led the president of Pistol Bay Mining TSXV:PST to the volcanogenic massive sulphide deposits of western Ontario’s Confederation Lake greenstone belt. There he found different operators left what he considered a mixed legacy—work that was very impressive but carried out in a rather unco-ordinated manner. Now, with a commodity that’s justified his optimism and a portfolio that’s poised to be the belt’s largest, his company’s launching an ambitious new program to take a region-wide approach to Confederation Lake.

“Even though there’s been a lot of money spent in that region, there really hasn’t been a lot of continuity in exploration programs,” says Desjardins. “For example we found 8,000 rock geochemistry samples that Noranda did. In today’s terms that’s about $300,000 worth of work just for the analysis, never mind actually acquiring all those samples. We don’t know if Noranda did anything with this, it might have been right when they were getting out of there. But it showed us some obvious things, including a couple of new, big, big targets and extensions of known targets.”

Pistol Bay Mining brings regional exploration to VMS-rich Confederation Lake

That’s just part of the inspiration for a two-tiered program to begin in January. Drilling would start with about six holes and a few thousand metres, he says. “Beyond that, the plan is to do a regional airborne survey with new technology that can see VMS-style mineralization at 600 to 700 metres. When you look at Flin Flon and Snow Lake, geophysics there found two major deposits at the 500-metre level.”

Confederation Lake characterizes the tendency of VMS deposits to appear in clusters, Desjardins points out. He attributes the region’s largest mine, South Bay, for around 354 million pounds of zinc, 57.6 million pounds of copper and 3.74 million ounces of silver produced between 1972 and 1981. Grades averaged about 11.06% zinc, 1.8% copper and 72.7 g/t silver.

Pending exchange approval for a four-year option on AurCrest Gold’s (TSXV:AGO) regional holdings, Pistol Bay’s turf comprises 7,050 hectares along a 43-kilometre stretch of the 60-kilometre-long belt. The projects include four historic deposits.

Already under a four-year option is a contiguous group of properties named Dixie 17, 18, 19 and 20 that’s been consolidated into a single project. Dixie comes with a 1992 historic, non-43-101 “mineral inventory” from Noranda estimating 150,000 short tons with an average 14% zinc.

Some eight kilometres southeast, the Dixie 3 property, formerly called Snake Falls, hosts another historic, non-43-101 Noranda estimate, this one 91,000 short tons averaging 1% copper and 10% zinc.

Roughly 20 kilometres northeast sits the Arrow zone, one of the acquisitions waiting approval. Arrow comes with a 2007 resource compiled by AurCrest predecessor Tribute Minerals that Pistol Bay isn’t treating as 43-101 and intends to re-do. Using three cutoff grades, the estimate showed:

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: 120,552 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: 51,631 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

That acquisition includes the contiguous Copperlode A or Fredart zone, with its historic, non-43-101 estimate of 425,000 tonnes averaging 1.56% copper and 33.6 g/t silver.

Even though there’s been a lot of money spent in that region, there really hasn’t been a lot of continuity in exploration programs.—Charles Desjardins,
president of Pistol Bay Mining

Obviously these deposits cry out for 43-101 treatment. Pistol Bay intends to begin with Arrow, the most recent resource but with another 16 holes to consider. Desjardins hopes to have that done within six months.

He points to assays that followed historic estimates on the other deposits, like 7.34% zinc and 1.4% copper over 9.5 metres, and another 15.44% zinc and 0.43% copper over 4.3 metres at Dixie. Intriguing zinc-copper intercepts also came from the Joy-Caravelle area, part of the AurCrest package. Historic sampling at Copperlode A found molybdenum grading up to 1.46%.

Then there’s the 8,000 geochemistry samples left by Noranda. Additionally, Pistol Bay has MPH Consulting at work on an extensive review of previous geophysics. Add to that the new airborne and drilling to begin in January and Desjardins looks forward to a wealth of data with considerable potential waiting to be unlocked.

There’s strong community support too, he adds. “One First Nation invested I think about $600,000 in AurCrest,” he says.

In Saskatchewan’s uranium-prolific Athabasca Basin, Pistol Bay JVs with a Rio Tinto NYSE:RIO subsidiary on the C-5 project. Having earned 75% of its option already, Rio has stated its intention to acquire the full 100% by the end of 2019. That would bring Pistol Bay $5 million and a 5% net profit interest.

The company expects to soon close the first tranche of a private placement offered up to $810,000. Other financings would follow, as Confederation Lake’s regional exploration continues in stages.

“We already have significant deposits that might be developed with one central mill,” Desjardins says. “But we’ll be looking for an elephant too.”

With maiden resource complete, Kennady Diamonds sees PEA late next year

December 14th, 2016

by Greg Klein | December 14, 2016

It’s “quite possibly a record timeframe in the history of Canadian diamond exploration,” according to Kennady Diamonds TSXV:KDI president/CEO Rory Moore. One of several small dykes discovered by the De Beers/Mountain Province Diamonds TSX:MPV JV in 2000, the Kelvin kimberlite wasn’t drilled until 2012. By that time Mountain Province, preoccupied with the adjacent Gahcho Kué, had created Kennady to investigate the neighbouring turf. On December 12 the spinout released Kelvin’s resource, the first such estimate for the 71,000-hectare Kennady North property.

With maiden resource complete, Kennady Diamonds sees PEA late next year

Kennady has a busy year ahead, with plans for resource
estimates on two additional kimberlites prior to PEA.

Using a one-millimetre bottom cutoff, the all-indicated resource shows 8.5 million tonnes averaging 1.6 carats per tonne for 13.62 million carats of diamonds. Average value comes to $63 per carat.

The deposit extends to a depth of 510 metres, with about 85% within a potential open pit to 330 metres’ depth and the rest a possible underground mine.

It’s been a productive four years and five months since Kennady first put rigs to work. The resource considered 175 holes totalling 40,041 metres, microdiamond samples totalling 20.23 tonnes. a mini-bulk sample of 44.8 tonnes and two more bulk samples totalling 1,067 tonnes. The bulk samples gave up 2,262 carats for valuation.

Announced last month, Antwerp’s verdict—actually two separate valuations that arrived at the same amount—came to an average $52 per carat. But Kennady emphasized the lopsided values of bigger diamonds, including a 2.84-carat stone valued at $2,640 per carat.

Moore pointed to a “similar trend” at Gahcho Kué, five kilometres away. “The five highest-value Kelvin diamonds represent 1% of the sample weight but 20% of the total value. This trend is a key determinant of overall value.”

A PEA’s now scheduled for late 2017 and would incorporate resource estimates to come from the Faraday 2 and 3 kimberlites, which will undergo bulk sampling this winter. Kennady also plans geophysics over 4,233 hectares acquired in August just south of Gahcho Kué. The company will consider exploration drilling following the bulk samples.

Earlier this month Kennady, along with Athabasca Basin uranium standout NexGen Energy TSX:NXE, shared the 2016 Exploration Company of the Year award at Mines and Money London.

ALX Uranium president/CEO Mark Lackey explains his decision to join the company

November 22nd, 2016

…Read more