Thursday 19th January 2017

Resource Clips


Posts tagged ‘silver’

Rockcliff Copper reports 5.9% copper-equivalent over 5.6 metres, expands Manitoba drill program

January 18th, 2017

by Greg Klein | January 18, 2017

Rockcliff Copper reports 5.9% copper-equivalent over 5.6 metres, expands Manitoba drill program

Buoyed by new assays from Phase II drilling, Rockcliff Copper TSXV:RCU has increased its Talbot drill program from 6,000 metres to 7,500 metres. The company holds a 51% option on the polymetallic copper project, part of its 45,000-hectare Snow Lake holdings in Manitoba’s Flin Flon-Snow Lake mining region.

Talbot’s latest results, from hole TB-016, show:

  • 2.64% copper, 2.94 g/t gold, 1.67% zinc and 23 g/t silver for 5.9% copper-equivalent over 5.63 metres, starting at 849.38 metres in downhole depth
  • (including 4.61% copper, 5.08 g/t gold, 2.09% zinc and 39.12 g/t silver for 9.9% copper-equivalent over 2.8 metres)

  • 0.64% copper, 0.24 g/t gold, 1.04% zinc and 5.6 g/t silver for 1.4% copper-equivalent over 3.39 metres, starting at 865.77 metres

Earlier this month Rockcliff reported assays from hole TB-012:

  • 1.2% copper, 0.92 g/t gold, 0.24% zinc and 10.2 g/t silver for 2.1% copper-equivalent over 12.57 metres, starting at 840.62 metres
  • (including 2% copper, 1.94 g/t gold, 0.32% zinc and 20.03 g/t silver for 3.9% copper-equivalent over 5.3 metres)

True widths weren’t provided.

TB-012 confirmed “continuity of the main lens in an area void of drilling along the deposit’s north boundary of the main lens,” the company stated.

A January 2016 resource estimate for three deposits at Talbot showed an inferred category totalling:

  • 2.17 million tonnes averaging 2.8% copper, 2.4 g/t gold, 2.2% zinc and 54.6 g/t silver for 133.6 million pounds copper, 165,400 ounces gold, 107.4 million pounds zinc and 3.81 million ounces silver

Rockcliff describes Talbot as “similar to that of present and past-producing base metal deposits of bi-modal volcanoclastic rocks in the Flin Flon-Snow Lake greenstone belt.”

With mineralization open in all directions, the program will “focus on resource expansion of the deposit as well as drill-testing geophysical plates/anomalies recently discovered from the resurveying of historic drill holes,” said president/CEO Ken Lapierre. The property has year-round road access.

Last week Rockcliff released grab samples grading up to 25 g/t and 34.77 g/t gold from the Snow Lake project’s Laguna site, which has state-of-the-art airborne magnetics planned. The company’s other Snow Lake assets include a 100% interest in the Rail deposit, with an indicated resource of 822,000 tonnes averaging 3.9% copper-equivalent, and non-43-101, historic estimates for four other deposits.

Rockcliff has about $2.5 million in the bank and no debt.

Updated: Financing, permitting, 12-fold expansion bring King’s Bay closer to Labrador copper-cobalt exploration

January 17th, 2017

by Greg Klein | January 15, 2017

Update: On January 17, King’s Bay announced the expansion of its Lynx Lake property from about 2,000 hectares to approximately 24,000 hectares “to adequately cover the geological structures and geophysical signatures of interest.”

 

With a provincial permit in hand and a $938,752 private placement that closed earlier this month, King’s Bay Gold TSXV:KBG readies for airborne EM over its Lynx Lake copper-cobalt project in south-central Labrador. The survey will precede a proposed first-ever drill program for the property.

Financing, permitting bring King’s Bay closer to Labrador copper-cobalt exploration

Previous work began after construction of the Trans-Labrador Highway in 2008, which unlocked some of the region’s geology. Grab samples from a quarry on the property’s east side showed non-43-101 results up to 1.39% copper, 0.94% cobalt, 0.21% nickel and 6.5 g/t silver. Other non-43-101 grab sample results from a west-side quarry ranged 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.

Preliminary evidence of strong conductors in the area came from the province’s regional low-res magnetic surveys and a hand-held EM-16 device.

With highway and powerlines running adjacent to the property, Lynx Lake can be reached by a 1.5-hour drive from the town of Happy Valley-Goose Bay.

Cobalt, one of the energy metals essential to battery manufacture, presents especially troubling supply concerns due to the instability and human rights infractions of the metal’s largest producer, the Democratic Republic of Congo. See an infographic about cobalt’s precarious supply chain.

Rockcliff Copper releases gold samples, plans state-of-the-art airborne at former Manitoba mine

January 16th, 2017

by Greg Klein | January 16, 2017

Calling it the “first systematic, scientific exploration program on the property in over 70 years,” Rockcliff Copper TSXV:RCU has a high-resolution airborne survey planned for its Laguna gold property in central Manitoba’s Flin Flon-Snow Lake camp. Twenty-five recent grab samples from four vein systems on the former mine site brought grades ranging from 0.01 grams per tonne gold up to 25 g/t and 34.77 g/t. The results indicate a trend covering over six kilometres within the 3,499-hectare property, the company stated.

Rockcliff Copper releases grab samples, plans state-of-the-art airborne for former Manitoba gold mine

A magnetic survey conducted by a state-of-the-art helicopter-style drone will allow the program to “economically fly extremely tight line spacings with high-density ground sampling distances without the need for linecutting,” Rockcliff added.

“It is now possible to resolve individual magnetic anomalies that were previously indistinguishable when surveyed using conventional ground and airborne surveys—perfect for structurally controlled gold exploration targets like that at the Laguna property.”

Located 20 kilometres from a Hudbay Minerals TSX:HBM gold mill now on care and maintenance, the Laguna project comprises part of Rockcliff’s 45,000-hectare Snow Lake portfolio. Included are 43-101 estimates for the Talbot and Rail copper-gold-zinc-silver resources, as well as historic, non-43-101 zinc deposits.

Cobalt: A precarious supply chain

January 14th, 2017

by Jeff Desjardins | posted with permission of Visual Capitalist

Cobalt: A precarious supply chain

 

How does your mobile phone last for 12 hours on just one charge? It’s the power of cobalt, along with several other energy metals, that keeps your lithium-ion battery running.

The only problem? Getting the metal from the source to your electronics is not an easy feat, and this makes for an extremely precarious supply chain for manufacturers.

This infographic comes to us from LiCo Energy Metals TSXV:LIC and it focuses on where this important ingredient of green technology originates from, and the supply risks associated with its main sources.

What is cobalt?

Cobalt is a transition metal found between iron and nickel on the periodic table. It has a high melting point (1493° C) and retains its strength to a high temperature.

Similar to iron or nickel, cobalt is ferromagnetic. It can retain its magnetic properties to 1100° C, a higher temperature than any other material. Ferromagnetism is the strongest type of magnetism: it’s the only one that typically creates forces strong enough to be felt and is responsible for the magnets encountered in everyday life.

These unique properties make the metal perfect for two specialized high-tech purposes: superalloys and battery cathodes.

Superalloys

High-performance alloys drive 18% of cobalt demand. The metal’s ability to withstand intense temperatures and conditions makes it perfect for use in:

  • Turbine blades

  • Jet engines

  • Gas turbines

  • Prosthetics

  • Permanent magnets

Lithium-ion batteries

Batteries drive 49% of demand—and most of this comes from cobalt’s use in lithium-ion battery cathodes:

Type of lithium-ion cathode Cobalt in cathode Spec. energy (Wh/kg)
LFP 0% 120
LMO 0% 140
NMC 15% 200
LCO 55% 200
NCA 10% 245

The three most powerful cathode formulations for li-ion batteries all need cobalt. As a result, the metal is indispensable in many of today’s battery-powered devices:

  • Mobile phones (LCO)

  • Tesla Model S (NCA)

  • Tesla Powerwall (NMC)

  • Chevy Volt (NMC/LMO)

The Tesla Powerwall 2 uses approximately seven kilograms and a Tesla Model S (90 kWh) uses approximately 22.5 kilos of the energy metal.

The cobalt supply chain

Cobalt production has gone almost straight up to meet demand, more than doubling since the early 2000s.

But while the metal is desired, getting it is the hard part.

1. No native cobalt has ever been found.

There are four widely distributed ores that exist but almost no cobalt is mined from them as a primary source.

2. Most cobalt production is mined as a byproduct.

Mine source % cobalt production
Nickel (byproduct) 60%
Copper (byproduct) 38%
Cobalt (primary) 2%

This means it is hard to expand production when more is needed.

3. Most production occurs in the Democratic Republic of Congo, a country with elevated supply risks.

Country Tonnes %
Total 122,701 100.0%
United States 524 0.4%
China 1,417 1.2%
DRC 67,975 55.4%
Rest of World 52,785 43.0%

(Source: CRU, estimated production for 2017, tonnes)

The future of cobalt supply

Companies like Tesla and Panasonic need reliable sources of the metal and right now there aren’t many failsafes.

The United States hasn’t mined cobalt in significant volumes since 1971 and the USGS reports that the U.S. only has 301 tonnes of the metal stored in stockpiles.

The reality is that the DRC produces about half of all cobalt and it also holds approximately 47% of all global reserves.

Why is this a concern for end-users?

1. The DRC is one of the poorest, most corrupt and most coercive countries on the planet.

It ranks:

  • 151st out of 159 countries in the Human Freedom Index

  • 176th out of 188 countries on the Human Development Index

  • 178th out of 184 countries in terms of GDP per capita ($455)

  • 148th out of 169 countries in the Corruption Perceptions Index

2. The DRC has had more deaths from war since WWII than any other country on the planet.
Recent wars in the DRC:

  • First Congo War (1996-1997)—An invasion by Rwanda that overthrew the Mobutu regime.

  • Second Congo War (1998-2003)—The bloodiest conflict in world history since WWII, with 5.4 million deaths.

3. Human rights in mining

The DRC government estimates that 20% of all cobalt production in the country comes from artisanal miners—independent workers who dig holes and mine ore without sophisticated mines or machinery.

There are at least 100,000 artisanal cobalt miners in the DRC and UNICEF estimates that up to 40,000 children could be in the trade. Children can be as young as seven years old and they can work up to 12 hours with physically demanding work earning $2 per day.

Meanwhile, Amnesty International alleges that Apple, Samsung and Sony fail to do basic checks in making sure the metal in their supply chains did not come from child labour.

Most major companies have vowed that any such practices will not be tolerated in their supply chains.

Other sources

Where will tomorrow’s supply come from and will the role of the DRC eventually diminish? Will Tesla achieve its goal of a North American supply chain for its key metal inputs?

Mining exploration companies are already looking at regions like Ontario, Idaho, British Columbia and the Northwest Territories to find tomorrow’s deposits.

Ontario: Ontario is one of the only places in the world where cobalt-primary mines have existed. This camp is near the aptly named town of Cobalt, which is located halfway between Sudbury, the world’s nickel capital, and Val-d’Or, one of the most famous gold camps in the world.

Idaho: Idaho is known as the Gem State while also being known for its silver camps in Coeur d’Alene—but it has also been a cobalt producer in the past.

B.C.: The mountains of B.C. are known for their rich gold, silver, copper, zinc and met coal deposits. But cobalt often occurs with copper and some mines in B.C. have produced cobalt in the past.

Northwest Territories: Cobalt can also be found up north, as the NWT becomes a more interesting mineral destination for companies. One hundred and sixty kilometres from Yellowknife, a gold-cobalt-bismuth-copper deposit is being developed.

Posted with permission of Visual Capitalist.

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.”

Golden Dawn Minerals continues revival of B.C.’s historic Greenwood camp

December 13th, 2016

by Greg Klein | December 13, 2016 | updated with revised assays January 17, 2017

A well-financed company working to bring new life to a cluster of past-producers 500 kilometres east of Vancouver, Golden Dawn Minerals TSXV:GOM released assays from former mines on December 13. The results come from the Amigo, Glory Hole, May Mac and Sylvester K sites, part of the mostly contiguous 16,000 hectares comprising the Greenwood project.

At May Mac, two of three surface holes from the same collar missed the Skomac vein system. But BF16-26, described as a “very significant 100-metre stepout hole along the northwesterly trend” of the vein system, showed these revised assays, which were released January 17:

  • 133.6 g/t silver, 0.54 g/t gold, 3.6% lead and 1.5% zinc over 6.07 metres, starting at 177.47 metres in downhole depth
  • (including 688 g/t silver, 1.18 g/t gold, 19% lead and 7% zinc over 0.96 metres)
Golden Dawn Minerals continues revival of B.C.’s historic Greenwood camp

Golden Dawn hopes to begin bulk
sampling next year at May Mac’s #7 level.

True widths weren’t provided.

The results show that historically mined mineralization continues another 75 metres vertically, remaining open at depth and along strike to the northeast, Golden Dawn stated. The company plans further drilling in that direction early next year.

An underground percussion hole at May Mac’s #7 drift showed these highlights from two consecutive 1.2-metre samples of cutting sludge:

  • 156 g/t silver, 3.04 g/t gold, 2.91% lead, 1.1% zinc and 0.33% copper

  • 135 g/t silver, 7.95 g/t gold, 0.6% lead, 1.3% zinc and 0.08% copper

Cautioning that accuracy might be affected by material loss, Golden Dawn stated the results show substantial mineralization within five metres of the end of the #7 level.

That level also underwent nine diamond drill holes totalling 805 metres, with assays pending for eight. Hole MU16-01 was drilled horizontally from the end of the adit to determine the distance to the vein. One intercept showed:

  • 131.3 g/t silver, 2.34 g/t gold, 0.59% lead and 0.42% zinc over 2.33 metres, starting at 17.45 metres
  • (including 250 g/t silver, 4.96 g/t gold, 1.2% lead and 0.89% zinc over 1.1 metres)

One kilometre south of May Mac, the former Amigo and Glory Hole mines underwent a surface drill program of 16 holes totalling 904 metres to search out extensions of known veins. Highlights include:

  • Hole BF16-10: 3 g/t silver and 1.04 g/t gold over 1.15 metres, starting at 41.31 metres in downhole depth

  • BF16-11: 5.8 g/t silver and 6.12 g/t gold over 0.74 metres, starting at 19.26 metres

  • BF16-15: 28 g/t silver and 0.98 g/t gold over 0.2 metres, starting at 5.5 metres

  • BF16-17: 2.8 g/t silver and 1.3 g/t gold over 1.32 metres, starting at 44.94 metres

  • BF16-18: 0.5 g/t silver and 1.13 g/t gold over 0.5 metres, starting at 14.5 metres

  • BF16-18: 1.8 g/t silver and 1.37 g/t gold over 1.26 metres, starting at 36.57 metres

  • BF16-24: 148 g/t silver over 0.25 metres, starting at 31.35 metres

Due diligence on a proposed property acquisition included seven channel samples at the Sylvester K past-producer, three kilometres from Golden Dawn’s mill. Six in a continuous line averaged 9.92 g/t gold over a true width of 15.2 metres.

Following the Christmas break, a program of 20 to 25 holes begins at the Greenwood project in mid-January. Permitting is in process to extract a 10,000-tonne bulk sample at May Mac adit #7, which would be processed at Golden Dawn’s mill, 15 kilometres from the former mine.

Last month the company closed a $1.18-million private placement, part of $3.97 million in private placements, $2.93 million in exercised warrants and US$2.4 million in long-term debt raised in 2016 that totals about $10.03 million.

Read more about Golden Dawn Minerals.

Opportunism knocks

December 5th, 2016

First Mining Finance found bad times beneficial for good deals

by Greg Klein

Struggling junior? Not this company. Since its trading debut in April 2015, First Mining Finance TSXV:FF has compiled 25 projects covering some 300,000 hectares, from early stage to a PEA with 4.4 million gold ounces indicated. Just as aggressively, the company boosted its treasury to a current $35 million. Now First Mining looks forward to a $21-million exploration and development program for 2017 that includes 47,000 metres of drilling.

“We were able to execute on the vision of the company, which last year was to take advantage of the bear market and acquire projects,” VP of investor relations Derek Iwanaka explains. “I don’t know of any other company that was able to acquire as many projects, or projects as good as we got, during that period.”

First Mining Finance found bad times beneficial for good deals

Located in northwestern Ontario’s Birch-Uchi greenstone belt,
First Mining’s 32,448-hectare Springpole flagship has an
updated PEA scheduled for next year.

Certainly there were deals to be had for canny acquisitors. But that was while many other companies faced financing difficulties. First Mining bucked the trend last August by closing a $27-million private placement. How did they pull that off?

“Quite easily,” responds Iwanaka. “We were literally turning down millions of dollars. We had over $70 million in orders but we didn’t want that kind of dilution. So we just took the $27 million. That should carry us for at least the next few years, including all the drilling and overhead.”

First Mining seems to have something that eludes others.

“First of all we have Keith Neumeyer at the helm, who runs a multi-billion-dollar company as it stands,” says Iwanaka. “Keith has been adept at starting companies during very bad times and manoeuvring them so when times are good we can reap the rewards for our shareholders.”

Among companies founded by the First Mining director were First Quantum Minerals TSX:FM and First Majestic Silver TSX:FR, where Neumeyer’s president/CEO. First Majestic acts as a sort of mentor to First Mining, placing some FR directors in FF’s management and board, helping to get the new company started, lending it about $1 million, vending three Mexican properties and even providing office space.

Among considerations behind an acquisition are “size and quality of the project,” Iwanaka points out. “We look at projects with good grade, scalability, exploration upside. The jurisdiction’s quite important to us. We’re basically looking at North America, but not the North. We will look at South America as well. Quebec, Ontario and Newfoundland are our favourite places although we could go to other provinces too. In the U.S. we see Nevada and Arizona as fairly mining-friendly states. We could probably look at New Mexico as well. We do have some early-stage properties in Mexico, where First Majestic has its base, but we certainly focus on Canada.”

As for commodities, “we particularly like gold but silver, platinum and palladium are also attractive, as well as base metals—anything that’s exchange-tradeable.”

Other factors include “the price of the projects, the holding cost, the infrastructure. In many cases the projects we take already have roads and power lines going to them.”

If gold’s the company’s focus, the Springpole flagship explains why. Described as one of Canada’s largest undeveloped gold projects, the northwestern Ontario potential open pit came with the past owner’s 2013 PEA. Using a 0.4 g/t gold cutoff, the 2012 resource showed:

  • indicated: 128.2 million tonnes averaging 1.07 g/t gold and 5.7 g/t silver for 4.41 million ounces gold and 23.8 million ounces silver

  • inferred: 25.7 million tonnes averaging 0.83 g/t gold and 3.2 g/t silver for 690,000 ounces gold and 2.7 million ounces silver

First Mining has work underway to bring the resource and PEA up to date. But looking back at 2013, the report calculated a post-tax NPV of US$388 million using a 5% discount, with a 13.8% post-tax IRR. Initial capex came to US$438 million with payback in 35 months of an 11-year mine life.

First Mining Finance found bad times beneficial for good deals

Visible gold was one attraction of the Goldlund project,
which has another 27,000 metres of drilling planned.

“We expect the updated PEA will be even more robust,” Iwanaka says. “The U.S. dollar has appreciated since 2013, when it was at par. We’re also looking at increasing the recovery and the pit shell. Those three things could substantially improve the economics and we hope to have the new PEA out probably by the first half of next year.”

With assays pending, a four-hole, 1,712-metre fall program provided metallurgical fodder. Next summer’s agenda calls for another 6,000 metres of infill to upgrade the resource. In the meantime, pre-permitting environmental and baseline work will soon begin.

A newer acquisition gets even more rig attention next year. Goldlund, about 60 kilometres north of Dryden and roughly 200 klicks south of Springpole, has 27,000 metres planned to upgrade the resource and work towards an eventual PEA. The former open pit and underground operation came with an estimate that First Mining considers an historic non-43-101. Using a 0.4 g/t gold cutoff, it showed:

  • measured and indicated: 19.1 million tonnes averaging 1.94 g/t for 1.19 million ounces gold

  • inferred: 25.8 million tonnes averaging 2.51 g/t for 2.08 million ounces

Cameron, maybe another 100 kilometres south of Goldlund, gets up to 9,000 metres of infill to pump up the measured and indicated prior to PEA. Using a 0.5 g/t cutoff, a 2015 resource from Chalice Gold Mines TSX:CXN showed:

  • measured: 3.72 million tonnes averaging 2.64 g/t for 316,000 ounces gold

  • indicated: 4.1 million tonnes averaging 1.92 g/t for 253,000 ounces

  • inferred: 14.5 million tonnes averaging 1.92 g/t for 894,000 ounces

Moving to southwestern Newfoundland, Hope Brook will see 5,000 metres of exploration and infill. A high 3 g/t gold cutoff gives the current resource:

  • indicated: 5.5 million tonnes averaging 4.77 g/t for 844,000 ounces gold

  • inferred: 836,000 tonnes averaging 4.11 g/t for 110,000 ounces

Again, a resource upgrade precedes a PEA, this one slated for late 2017.

Back in Ontario and roughly 110 kilometres northeast of the Springpole flagship, autumn drilling has wrapped up at Pickle Crow. Assays from the nine-hole, 1,319-metre campaign are expected in early 2017. The former mine came with a 2011 inferred resource that used a 2.25 g/t gold cutoff for an underground deposit and a 0.35 g/t cutoff for an open pit deposit:

Underground

  • 6.52 million tonnes averaging 5.4 g/t for 1.14 million ounces gold

Open pit

  • 3.63 million tonnes averaging 1.1 g/t for 126,000 ounces

Total

  • 10.15 million tonnes averaging 3.9 g/t for 1.26 million ounces

With assays to come, drilling to do and announcements for other North American projects anticipated, First Mining plans a steady news flow, says Iwanaka.

Diamond explorer Dunnedin Ventures to create gold-copper spinco

November 23rd, 2016

by Greg Klein | November 23, 2016

With a gold-copper asset in British Columbia and a diamond project with gold prospects in Nunavut, Dunnedin Ventures TSXV:DVI proposes to distribute its portfolio between two companies. On November 23 Dunnedin announced plans to spin out the non-diamond assets into a new listing.

Diamond explorer Dunnedin Ventures to create gold-copper spinco

The company currently holds the 60,000-hectare Kahuna diamond project in Nunavut, where an inferred resource for two kimberlites totals 4.02 million carats, using a +0.85 mm cutoff. Till samples collected last year also showed anomalous gold of 50 ppb or more in 84 of 129 samples.

Meanwhile previous drill results from Dunnedin’s 4,000-hectare Trapper porphyry project in northwestern B.C. showed strong gold intercepts, with silver, lead and zinc showings as well.

“We believe that separate corporate vehicles for diamond and metal assets will yield the best long-term value to shareholders,” said CEO Chris Taylor.

Subject to approvals, Trapper and rights to gold at Kahuna would go to a newly created subsidiary with working capital for exploration. The new company’s shares would be distributed to Dunnedin shareholders on a pro rata basis. The new company would apply for a TSXV listing.

Dunnedin shareholders will vote on the proposed spinout early next year.

Dunnedin also plans to accelerate expiration of over six million warrants to December 23. Should all warrants be exercised, proceeds would come to about $632,708.

Read more about Dunnedin Ventures.

See Chris Berry’s report on long-term diamond demand.

Drilling confirms 3D model at Far Resources’ Manitoba lithium project

November 17th, 2016

by Greg Klein | November 17, 2016

With Phase I now complete, Far Resources CSE:FAT says all seven holes of the 1,142-metre campaign intersected spodumene-bearing pegmatite on the Zoro property in central Manitoba. Assays are pending but the program confirms a 3D model of dyke #1 compiled from historic drilling data and more recent field work, the company reported November 17.

Drilling confirms 3D model at Far Resources’ Manitoba lithium project

Chip samples taken last summer from historic
trenches assayed between 1.46% and 6.35% Li2O.

“We are pleased that the first drill program on the property for 60 years has confirmed our geological model and interpretation,” said president/CEO Keith Anderson. “This will allow us to plan and optimize further drilling with confidence as we expand on the Phase I program.”

The 3,000-hectare property hosts seven known spodumene-bearing dykes. In July the company released assays from chip samples collected that summer from three historic trenches, with results ranging from 1.46% to 6.35% Li2O.

The Snow Lake-region property can be accessed via highway and helicopter, or by boat, road and ATV. Local infrastructure also includes hydro lines five kilometres south and rail another 25 kilometres.

Far Resources also holds an option on the Winston property in New Mexico, which hosts two past-producing gold-silver mines. In October the company offered a private placement of up to $200,000.

Infographic: Countries of origin for raw materials

November 16th, 2016

Graphic by BullionVault | text by Jeff Desjardins | posted with permission of Visual Capitalist | November 16, 2016

Every “thing” comes from somewhere.

Whether we are talking about an iPhone or a battery, even the most complex technological device is made up of raw materials that originate in a mine, farm, well or forest somewhere in the world.

This infographic from BullionVault shows the top three producing countries of various commodities such as oil, gold, coffee and iron.

Infographic Countries of origin for raw materials

 

The many and the few

The origins of the world’s most important raw materials are interesting to examine because the production of certain commodities is much more concentrated than others.

Oil, for example, is extracted by many countries throughout the world because it forms in fairly universal circumstances. Oil is also a giant market and a strategic resource, so some countries are even willing to produce it at a loss. The largest three crude oil-producing countries are the United States, Saudi Arabia and Russia—but that only makes up 38% of the total market.

Contrast this with the market for some base metals such as iron or lead and the difference is clear. China consumes mind-boggling amounts of raw materials to feed its factories, so it tries to get them domestically. That’s why China alone produces 45% of the world’s iron and 52% of all lead. Nearby Australia also finds a way to take advantage of this: It is the second-largest producer for each of those commodities and ships much of its output to Chinese trading partners. A total of two-thirds of the world’s iron and lead comes from these two countries, making production extremely concentrated.

But even that pales in comparison with the market for platinum, which is so heavily concentrated that only a few countries are significant producers. South Africa extracts 71% of all platinum, while Russia and Zimbabwe combine for another 19% of global production. That means only one in every 10 ounces of platinum comes from a country other than those three sources.

Graphic by BullionVault | posted with permission of Visual Capitalist.