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Posts tagged ‘Serengeti Resources Inc (SIR)’

North ROK euphoria fizzles

June 6th, 2013

Colorado Resources’ results fall short of phenomenal but the area play looks resilient

by Greg Klein

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Despite additional intercepts of wide mineralization, June 6 assays from Colorado Resources TSXV:CXO failed to meet soaring hopes set by North ROK’s very first hole. That northwestern British Columbia discovery excited anticipation of a project comparable to Imperial Metals’ TSX:III Red Chris project, 15 kilometres east. But while Colorado’s stock has since suffered, a still-strong market cap and recent activity by other companies suggest the area play may yet endure.

The June 6 announcement gave results for three holes, with NR13-003 showing:

  • 0.21% copper and 0.55 grams per tonne gold over 152.4 metres, starting at 1.2 metres in downhole depth
  • (including 0.31% copper and 1.04 g/t gold over 52 metres).

NR13-003 was drilled at a -80 degree dip towards the northeast from the same location as discovery hole NR13-001, which was sunk at a -45 degree dip in the same direction. NR13-004 was drilled 100 metres southeast of the discovery hole, showing:

  • 0.4% copper and 0.5 g/t gold over 205.2 metres, starting at 158.8 metres
  • (including 0.56% copper and 0.68 g/t gold over 131 metres).
Colorado Resources’ results fall short of phenom, but area play looks resilient

North ROK’s first assays suggested boundless horizons, but three more holes from the early-stage project stifled enthusiasm.

True widths weren’t available. Hole NR13-002, drilled 350 metres west of the discovery hole, found no significant results. The company stated it “may have not been drilled deep enough or at the correct azimuth to adequately test the IP chargeability anomaly that is now better understood with the new detailed geophysics.”

Ongoing induced polarization surveys have so far shown an area 1,200 by 1,200 metres open to the south of the chargeability anomaly where the holes were drilled. The survey also found an area 500 by 1,000 metres open to the north of another chargeability anomaly one kilometre north of the drill holes. “To date less than 5% of the area of these geophysical anomalies has been tested by drilling,” the company stated. “Given these highly encouraging results and better understanding of the system, Colorado is planning an expanded drill program to commence shortly.”

Evidently investors expected better. The discovery hole reported April 25 produced a market-shattering 0.51% copper and 0.67 g/t gold over 333 metres, starting at 2 metres. That included a 242-metre interval of 0.63% copper and 0.85 g/t gold.

All that from the very first hole. Fuelling the excitement was Red Chris, only 15 kilometres away, where Imperial Metals’ open pit is scheduled for production in mid-2014. The project boasts reserves of 301 million tonnes averaging 0.359% copper and 0.274 g/t gold.

Consequently North ROK rocketed Colorado stock from an April 24 close of $0.16 to a May 21 high of $1.74. But by June 6 the shares opened on $1.17, down from a June 5 high of $1.34, then continued to fall. The stock closed June 6 on $0.80, albeit an improvement over the day’s low of $0.66 and far above the pre-discovery $0.16.

Disappointment notwithstanding, the area play may yet have a busy summer in store. Other companies attracted by the region’s porphyry copper-gold potential include Entourage Metals TSXV:EMT, which on June 3 announced its 100% option on the 6,499-hectare Odin copper-gold property, 22 kilometres north of North ROK and 35 kilometres from Red Chris.

The same day Victory Ventures TSXV:VVN announced drilling had begun on its 448-hectare Copau property, 11 kilometres northeast of Red Chris, to test a prospective IP anomaly.

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North ROK rocks the market

May 6th, 2013

Colorado Resources’ copper-gold discovery heats up B.C.’s Golden Triangle

by Greg Klein

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Geology has a way of stimulating even the most discouraged investors, as shown by the way North ROK excited an otherwise dismal market. The very first hole from the Colorado Resources TSXV:CXO project sent company stock soaring from an April 24 close of $0.16 to a May 6 high of $1.25. Along with the excitement comes revived interest in the northern part of British Columbia’s Golden Triangle, in the region around the discovery hole and Imperial Metals’ TSX:III development-stage Red Chris project, 15 kilometres east.

For anyone coming out of cryogenic slumber, here’s the first North ROK hole announced April 25:

  • 0.51% copper and 0.67 grams per tonne gold over 333 metres, starting at 2 metres in downhole depth
  • (including 0.63% copper and 0.85 g/t gold over 242 metres, starting at 2 metres)
  • (which includes 0.76% copper and 1 g/t gold over 180.47 metres, starting at 63.53 metres)
  • (and including 0.2% copper and 0.19 g/t gold over 91 metres, starting at 244 metres).

True widths haven’t been determined.

Still to come are assays for a second hole 350 metres west. Geophysical data, however, suggests drilling “may have been stopped short of adequately testing the IP chargeability anomaly.” Colorado now plans to deepen the second hole and sink a series of 100-metre-spaced step-outs from the 333-metre intercept.

Colorado Resources’ copper-gold discovery heats up B.C.’s Golden Triangle

Spectacular assays have put Colorado Resources on top of the world.

Could North ROK be a one-hole wonder? Maybe, but other companies aren’t wasting time getting in on the action. The region “may become the next significant mining district in British Columbia,” according to TAD Mineral Exploration TSXV:TJ. On May 6 the company reported staking a 876-hectare copper-gold prospect near the village of Iskut, north of North ROK. TAD could be a tad opportunistic, having announced on April 11 it staked 4,000 hectares in the region of Patterson Lake South, the Fission Uranium TSXV:FCU/Alpha Minerals TSXV:AMW uranium discovery that sparked the southwestern Athabasca Basin acquisition rush.

Also on May 6, Teuton Resources TSXV:TUO reported it optioned its Yellow Chris South claims to Redhill Resources TSXV:RHR. Located “a few kilometres northeast” of Colorado’s discovery hole, Yellow Chris South shares a similar geophysical setting, Teuton stated. The company added that its optionee “plans an aggressive program of property-wide soil sampling, geological mapping and IP surveying” beginning immediately. Subject to regulatory approval, the option allows Redhill to earn an initial 50% by paying Teuton $300,000 and 1.4 million shares, as well as spending $4.5 million over four years.

Teuton still has several blocks in the Red Chris and Yellow Chris area totalling 10,256 hectares. “We’re currently negotiating with a number of other companies,” IR officer Gary Assaly tells ResourceClips. “We have several properties that are optioned in the Stewart region [roughly 190 kilometres south] and there will be a lot of work done by other companies on our properties,” he says. But there’s been sudden interest in the North ROK area. “The phone started ringing a week ago, on the weekend.”

Teuton president Dino Cremonese adds, “We feel that our claims have a lot of potential, especially those which have discrete mag highs, some associated with flanking mag lows, the latter suggesting an area where alteration has been so intense that the magnetite has been replaced. So far, because our attention has been on our many claims further south, we have done only very minor soil geochem. This, however, has also been positive, with a few areas reporting values to 271 parts per million copper.”

A company that diversifies its opportunism, Pistol Bay Mining TSXV:PST was advancing an Ontario graphite property while a big-name joint venture partner drilled one of its Athabasca Basin uranium projects. Then the Colorado Resources discovery drew Pistol Bay back to its Summit Lake B property contiguous to North ROK.

“When this hit we went back and looked at the results from our 2010 program,” Pistol Bay president/director Charles Desjardins tells ResourceClips. “When you look at the showing in North ROK and compare it to our Kitty showing, we have some good numbers.”

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In With Zijin

January 3rd, 2012

Chinese Giant Backs Equitas BC Copper-Gold Project

By Greg Klein

“Climb the mountain”—for Equitas Resources TSXV:EQT the challenge is both metaphorical and literal. While his drill crew thinks nothing of a late autumn scramble up a northern BC mountainside, President/Director Jay Roberge is more likely to scale figurative obstacles in the boardrooms of Hong Kong. As a result, the company’s Day Copper-Gold Porphyry Project now has the backing of Zijin Mining Group, China’s biggest gold producer.

“Most companies would not have tried to drill in that neck of the woods in October,” Roberge says. “But that reflects the kind of company we’re building here at Equitas. I wasn’t going to make the decision from Vancouver. So I told the guys to go up there and make the call from the mountain.”

Chinese Giant Backs Equitas BC Copper-Gold Project

Once mobilized, the crew hit a brief spell of clear weather and “climbed like goats” for 1,300 snow-covered metres to drill a 285-metre hole, “which is a great accomplishment under the circumstances,” Roberge says. “That indicates the type of company we are—very aggressive.”

Aggressive in the financial world too, as Roberge showed by snagging Zijin as Equitas’ largest shareholder. He points out the Asian giant is “the number 1 producer of gold in China, the number 3 of copper, the number 6 in zinc, [and] they have ambitions to be one of the top five miners in the world. Their current market cap is about $15 billion on the Hong Kong exchange. They’ve invested around a billion dollars in projects around the world. I was able to get their support for investing in early exploration.”

That support, Roberge emphasizes, allows for a unique business model. “Our company is being set up as an exploration company for Zijin,” he explains. “Other companies take their projects to a certain stage and then look for a joint-venture partner. We’ll be doing the same, but we already have our partner. We’ll be joint-venturing everything back to Zijin.

“So our model is to get six to eight projects and prove them out or disprove them as fast as possible,” he continues. “The ones that graduate, we’ll joint-venture. We’ll take capital from that joint venture and do more projects. It’s quite unique. It’s not at all common to see a company of our size hitching its wagon to a major. We have the backing and support of a multibillion-dollar company.”

Last October’s quick but intrepid mountainside adventure brought the following assay, released December 15:

  • 0.64 grams per tonne gold and 0.11% copper over 123 metres
  • (including 0.81 g/t gold and 0.13% copper over 53.1 metres)

“We know we’re in a porphyry system; the hole was mineralized throughout with some decent results; we’re very close to the source of the porphyry; and we’ll continue to explore on our first opportunity to get back up there,” Roberge says.

The result follows surveying, mapping and sampling that includes 211 rock and soil samples and nearly 400 historic drill cores that have been sent for assaying.

It was the historic drilling that really attracted Zijin, Roberge says. Falconbridge (acquired by Xstrata in 2006) drilled the property in 1974, followed by Skeena Resources TSXV:SKE in 1994.

It’s not at all common to see a company of our size hitching its wagon to a major. We have the backing and support of a multibillion-dollar company —Jay Roberge

Other companies also like the Toodoggone region, Roberge points out. “There’s the Kemess South Mine, which shut down in March, the Kemess Underground or Kemess North [AuRico Gold Inc TSX:AUQ], and Mount Milligan [Thompson Creek Metals TSXV:TCM] is being built to the south. Between us and Mount Milligan there’s Serengeti’s TSXV:SIR Kwanika Project. So we’re in the right area. With this historic drilling and the one hole we have now, we’re very, very optimistic about our chances up there.”

Among his company’s other advantages, Roberge includes its relationship with shareholder Zimtu Capital TSXV:ZC. “We work out of Zimtu’s office and share back-end resources with a number of other companies. That’s administrative, accounting, an in-house geo who we can all tap into, marketing and so on. So there’s a lot of expertise we can rely on to cut down on costs.”

Zijin, however, holds the largest chunk of Equitas, now about 19.9% with an option to reach 31%. Last November, geologist Richard Yu, general director of Zijin’s International Exploration Division, joined the Equitas board of directors.

Although the Day Project is very much early stage, Roberge sees an extremely busy 2012 on a number of fronts. Fundamental Research will release its initial report on Equitas. Roberge plans to spend more time in Hong Kong, including an appearance at the Mines and Money event, to recruit additional backers. “Quite frankly, the Asian market understands the value of our partnership with Zijin better than the market here,” he says. “Nobody here knows what Zijin is.” With more capital, Roberge hopes to acquire more projects—and to do so quickly. His optimism can take on the tone of urgency.

“With the markets the way they are, good opportunities are presenting themselves on the asset side. So we’re looking at a number of opportunities in British Columbia, Arizona, New Mexico and South America. The priority would probably lean towards BC and Arizona. We’d like to see a couple of acquisitions and maybe get some drilling done in Arizona before we get back to the Day property.”

Very optimistic indeed, especially given the company’s press-time share price of $0.095. With 51.33 million shares outstanding, that comes to a very modest market cap of $4.9 million.

That hardly deters Roberge. “People are going to realize Zijin Mining had good reason to invest in a little junior on the TSX Venture,” he says. “We think that’s going to bode well for our company and our shareholders.”