Thursday 27th October 2016

Resource Clips

Posts tagged ‘Sandspring Resources Ltd (SSP)’

A head start

April 14th, 2016

Nickel One Resources builds on past work at western Ontario’s Tyko project

“Not too many properties come to you with two discoveries already drilled but never released,” says Nickel One Resources TSXV:NNN president/CEO Vance Loeber. “These results had never seen the light of day in a public company.”

He’s referring to the Tyko project in western Ontario’s Thunder Bay mining district, where Nickel One recently completed a program of confirmation drilling. Initial results have the company optimistic about its nickel-copper-PGM potential, and in particular about the possibility that two zones might be one.

Nickel One Resources builds on past work at western Ontario’s Tyko project

Still to come from Tyko are results from 10 more winter holes.

The project came to Nickel One with the advantage of two seasons of drilling by North American Palladium TSX:PDL back in 2006 and 2007. Focusing on its Lac des Iles operation and advanced projects in Ontario and Finland, the company let Tyko revert to its vendors, friends of Abraham Drost, now Nickel One’s chairperson.

Loeber and Drost had worked together in prominent roles on a number of projects including Sandspring Resources TSXV:SSP and Carlisle Goldfields, the latter taken over by Alamos Gold TSX:AGI earlier this year. Consequently Nickel One’s predecessor, Redline Resources, acquired the privately held Tyko Resources and its namesake project, then began trading as Nickel One at the end of February.

North American drilled 2,230 metres in 13 holes, finding mineralization in nine of them. Redline’s February 2015 43-101 technical report provides highlights from those two programs, including:

Hole TK-06-001 at the Tyko showing

  • 1.09% nickel, 0.76% copper, 0.42 ppm platinum and 0.42 ppm palladium over 4.15 metres, starting at 17.4 metres in downhole depth

TK-06-003 at the RJ showing

  • 1.06% nickel , 0.51% copper, 0.24 ppm platinum and 0.12 ppm palladium over 4.08 metres, starting at 63.92 metres

TK-06-005 at the RJ showing

  • 1.05% nickel, 0.46% copper, 0.2 ppm platinum and 0.12 ppm palladium over 6.2 metres, starting at 25 metres

True widths weren’t available.

Having raised $890,000 about a week after its February trading debut, Nickel One dispatched a rig to confirm the results. Assays for the first four holes came out April 12, with one near-surface interval from the RJ zone nearly matching the previous best grade while exceeding its width nearly four-fold—1.04% nickel over 16.19 metres.

That result appeared within a longer interval of 0.79% nickel over 44.12 metres:

  • 0.79% nickel, 0.3% copper, 0.01 ppm gold, 0.12 ppm platinum and 0.11 ppm palladium over 44.12 metres, starting at 52.75 metres in downhole depth

  • (including 1.04% nickel, 0.54% copper, 0.01 ppm gold, 0.12 ppm platinum and 0.12 ppm palladium over 8.25 metres

  • (which includes) 2.89% nickel, 0.45% copper, 0.01 ppm gold, 0.27 ppm platinum and 0.35 ppm palladium over 0.5 metres

  • (and including) 1.04% nickel, 0.23% copper, 0.15 ppm platinum and 0.12 ppm palladium over 16.19 metres

  • (which includes) 1.23% nickel, 0.26% copper,0.18 ppm platinum and 0.13 ppm palladium over 11.38 metres

  • (which includes) 1.97% nickel, 0.19% copper,0.17 ppm platinum and 0.12 ppm palladium over 1 metre

Again, true widths weren’t available. Results are pending for 10 more holes from the 14-hole, 1,780-metre program.

Summer drilling will test a theory that the RJ and Tyko zones, 1.5 kilometres apart, might be linked. The earlier drilling, magnetics, electromagnetics and IP surveys led to the 43-101’s conclusion that the property has been intruded by a mafic to ultramafic conduit that’s interpreted to be a feeder system. A “major structural flexure” between the RJ and Tyko zones coincides with anomalous nickel, copper and PGEs.

“The property shows many similarities with mafic to ultramafic feeder systems such as Voisey’s Bay in northern Labrador and Jinchaun in China,” the report states. “These deposits are characterised by magmatic sulphides collecting within the feeder of a large intrusive body due to variations in geometry that caused changes in flow dynamics such that immiscible sulphides were able to settle out and collect in structural traps.”

A concentration of immiscible sulphides is key to the formation of an economic nickel deposit, the report adds.

Having taken over the Nickel One helm just weeks ago, Loeber’s enthusiastic about renewing his collaboration with Drost and working with their new teammates. Among them is adviser Glenn Mullan, whose 35-year exploration/mining career includes his current role as president/CEO of Golden Valley Mines TSXV:GZZ. Director Scott Jobin-Bevans, with more than 22 years of exploration experience, wrote his PhD thesis on PGE mineralization in Ontario.

Accessible by logging roads and float plane, the 11,168-hectare property sits about 40 kilometres north of Hemlo and 28 kilometres southeast of the town of Manitouwadge, at the north end of Highway 614.

Anxious to get back, the company plans to resume drilling after spring breakup, Loeber says. Meanwhile the rig remains onsite, making it cheaper and quicker to renew the attack.

Despite the downturn

January 31st, 2014

Roundup 2014 speakers discuss how investors can profit and companies thrive

by Greg Klein

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We’re near bottom, we’ve hit bottom, the worst is behind us—over the last few wretched years those comments have come repeatedly from speakers at industry conferences. So maybe Victoria Yehl put it best in her January 30 closing remarks at Roundup 2014: “You, as the attendees and the delegates, let us know what’s going on in this industry … almost every evening at the Seawall Bar and Grill. It was certainly a higher level of enthusiasm than we’ve seen for a number of years.”

As chairperson of the Association for Mineral Exploration British Columbia’s annual event, Yehl was referring to the evening get-togethers, known for a non-market type of liquidity. But boozy as it might have been, can so much enthusiasm be dismissed?

Roundup 2014 speakers discuss how investors can profit and companies thrive

Near-record attendance and growing optimism characterized
AME BC’s Roundup 2014, “the world’s premier technical
mineral exploration conference.”

Yehl thanked company sponsors who came through despite tough times and noted a near-record crowd of 6,643 people from 37 countries, a possible indication of not-so-tough times ahead. Roundup 2014’s five last speakers further developed that sentiment.

The guardedly optimistic group included Rick Rule, who told investors they can be contrarians or victims: “The choice is yours.” Discussing some potential “fire sale prices” in resource stocks, the chairman of Sprott US Holdings said, “When I talk about coal now people say, ‘Global warming, you’re the culprit.’ I love it when people aren’t merely bored, they’re hostile.”

Uranium, he added, “is cheap. Zinc is cheap. People hate nickel…. Until three or four months ago natural gas was cheap, cheap, cheap.”

Bull markets follow bear markets “as day follows night,” Rule argued. But he warned that although a valuation’s increase might be inevitable, it isn’t necessarily imminent. Profits require time and patience, he emphasized.

Turning the forum’s attention from investors to companies, Silver Wheaton TSX:SLW president/CEO Randy Smallwood said most financing has been coming from various types of debt. The streaming model, he maintained, allows companies to optimize their portfolios through deals on non-core assets. “Seventy percent of silver does not come from silver mines,” he pointed out. About 40% comes from copper mines, another 15% from lead-zinc operations. Those miners “aren’t interested in silver. They’re driven by copper, they’re driven by lead-zinc.”

A new type of deal announced in November offers some juniors additional hope, Smallwood said. Silver Wheaton stepped in earlier than usual to give Sandspring Resources TSXV:SSP an initial $13.5 million to take its Toroparu gold project in Guyana to feasibility.

“If they had gone out and raised $13.5 million in the market, their current shareholders would have lost 33% of the value of that project…. What they did was give us 10% of the gold, if we fund them another $135 million when they get to the point of construction. It’s pretty attractive for their shareholders. It makes a lot of sense for juniors to consider this.”

But with prefeasibility in place, Toroparu was already quite advanced. Exploration geologist Miles Thompson discussed earlier-stage projects and the “bizarre disconnect between markets and the time needed to find and develop mines.”

“Unfortunately the easy stuff has already been found and our job is becoming increasingly harder,” said the director of Reservoir Minerals TSXV:RMC and CEO/chairman of Lara Exploration TSXV:LRA. For all that, Reservoir has been successfully raising money and spending it in Serbia for over 10 years. “We follow the prospect generator business model, which means we work the same way the pharmaceutical industry works, the software industry…. We see ourselves as R&D teams. We build projects, we define targets, we work out projects for mining companies and investors.”

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Can streaming agreements save some good junior miners?

November 12th, 2013

by Ana Komnenic | November 12, 2013 | Reprinted by permission of

Financing has been tough for juniors lately: Cash generated from financing activities in Canada fell 34% this year compared with last year, according to a recent report by PricewaterhouseCoopers.

Can streaming agreements save some good junior miners?

Randy Smallwood,
CEO Silver Wheaton.

Randy Smallwood, CEO of Silver Wheaton TSX:SLW—the world’s largest precious metals streaming company—says that in his 30 years in the mining industry, he’s “never seen it this bad.”

But a stream financing model for juniors may be the silver lining during these cash-strapped times.

Silver Wheaton just signed its first early deposit gold stream agreement with exploration company Sandspring Resources TSXV:SSP.

Under the $148-million deal, Sandspring will get $13.5 million up front to complete feasibility work, after which Silver Wheaton will have the right to buy 10% of the life-of-mine gold production from the Toroparu project in Guyana. If Silver Wheaton elects not to proceed with the gold stream, Sandspring will return all but $2 million of the advanced funds.

This model allows Silver Wheaton to take advantage of high-quality, earlier-stage projects. Meanwhile, Sandspring gets access to critical funds without diluting shareholder value.

According to Smallwood, early deposit gold stream agreements are the “most attractive forms of financing for juniors.”

“Previously, prior to the feasibility study, the only source of capital has been the public markets,” Smallwood told

But Silver Wheaton is picky, and Smallwood is not looking to strike a deal with just any company.

“There’s a lot of projects out there that shouldn’t be financed,” the CEO said. His team spent a lot of time picking the right one—putting a lot of emphasis on the firm’s management team.

“We wouldn’t be there if we weren’t very confident,” he said.

Silver Wheaton plans on executing more of these deals but the CEO wouldn’t say with which companies.

“There is an option, just make sure your project is as good as you say.”

As for business as usual, Silver Wheaton’s primary focus remains regular precious metal stream agreements. The company recently struck a $135-million deal with Hudbay Minerals TSX:HBM to acquire 50% of its gold production from the Constancia project. Silver Wheaton already has an arrangement for 100% of the life-of-mine silver production.

Ultimately Smallwood sees more value in silver for two reasons. For one, the uses of silver are much broader: Half of its consumption is attributed to industrial applications including high-efficiency electronics and antibacterial products. Silver’s market position is also more volatile than gold—which can be both a blessing and a curse.

Reprinted by permission of

Caribbean calling

April 10th, 2013

Sandspring’s pre-feas moves another Guyana gold project forward

by Greg Klein

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A revised development plan has reduced initial capital expenditures for Sandspring Resources’ TSXV:SSP Toroparu gold-copper project in Guyana. A pre-feasibility study released late April 9 laid out the economics for a 16-year open pit operation.

Using a 5% discount rate, the base case forecasts a pre-tax net present value of US$992 million and a 27.2% internal rate of return. After taxes the numbers show a $691-million NPV and a 23.1% IRR.

Sandspring’s pre-feas moves another Guyana gold project forward

Sandspring incorporated last year’s discovery of a
satellite gold deposit into Toroparu’s pre-feasibility study.

The study cut the initial capex to $464 million from the $482 million estimated by the January 2012 preliminary economic assessment update. Contributing to the more optimistic figures is an estimated $37 million that would come from cyanide leach processing of saprolite gold ore prior to commercial production. By year three, cash flow should fund the $50-million expansion to a 22,500-tonne-per-day operation. Payback would come in 2.6 years. Average annual production over 16 years would be 228,000 gold ounces at a cash cost of $700 an ounce, with copper credits factored in. About 78% of production would go into doré bars, with the rest in concentrate.

The project’s reserves include a satellite pit 1.2 kilometres from Toroparu that was discovered in May 2012. Combining three types of ore—saprolite gold, fresh gold and fresh gold-copper—the reserves show:

  • a proven category of 29.78 million tonnes averaging 1.1 grams per tonne gold and 0.13% copper for 1.05 million gold ounces and 64 million copper pounds
  • a probable category of 97.33 million tonnes averaging 0.98 g/t gold and 0.1% copper for 3.06 million gold ounces and 147 million copper pounds.

Within the pit shell but outside the reserves are resources that use a 0.3 g/t gold cutoff to show:

  • measured and indicated categories totalling 90.24 million tonnes averaging 0.83 g/t gold and 0.06% copper for 2.42 million gold ounces and 112 million copper pounds
  • an inferred category of 124.34 million tonnes averaging 0.74 g/t gold and 0.04% copper for 2.97 million gold ounces and 111 million copper pounds.

In a statement accompanying the announcement, Sandspring CEO Rich Munson said, “We are encouraged by recent approaches from third parties expressing interest in developing Toroparu jointly with Sandspring. Despite the expressions of interest, we recognize that funding a project of this scale is challenging in the current environment. We have therefore engaged Cutfield Freeman & Co, a leading independent advisory firm in the mining sector, to conduct a process to determine the options available for financing.”

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Golden Guyana

January 29th, 2013

Companies like Eagle Mountain find near-surface deposits offset dismal markets

by Greg Klein

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Gold at surface—it’s an explorer’s dream and the attraction for several companies working in Guyana. Notwithstanding thick jungles, heavy rain and limited infrastructure, the country inspires optimism among juniors working to overcome pessimistic capital markets.

And it’s here that one company found not only a project but also an in situ team that might transform the explorer into a producer. To do so, Eagle Mountain Gold TSXV:Z has set an ambitious timeline with hopes of bringing 2014 production to its eponymous project in central Guyana.

Companies like Eagle Mountain find near-surface deposits offset dismal markets

Eagle Mountain Gold wants to phase in production
with a low initial capex and minimal share dilution.

Certainly president/CEO/director Ioannis (Yannis) Tsitos sounds confident. “First of all, we’ve got a board and management team that has put projects into production. Secondly, we’re looking at a robust gold price and my view and all the macro-economic analysis suggest this will continue. In terms of operating in Guyana, we can run this with decent costs. I don’t see why we should follow the formula of building up a company just to sell it.”

The company holds 50% of the project, with an option to pick up another 45% from IAMGOLD TSX:IMG for $1 million in cash and/or shares by April. The Guyanese government holds the remainder.

This year’s schedule looks busy, with more drilling to build the resource, work on the environmental impact assessment and a PEA, which is slated for Q2. Tsitos then plans to skip the pre-feasibility stage to reach full feas in 2014. Should economics, permitting and financing fall into place, open-pit gold production could begin the same year, he says.

Ambitious as it is, the schedule’s cost-effective, Tsitos maintains. “This plan calls for minimum dilution because the capex would be smaller. We’d first focus on the easiest parts of the deposits, which are the oxide parts, effectively mining the top 25 metres over a very extensive area. Later we’d expand into mining hard rock with a bigger mill and power requirement. Our approach is a phased development, therefore the timeline is aggressive but viable.” He foresees the mine expanding to several open pits feeding a central processing facility.

Companies like Eagle Mountain find near-surface deposits offset dismal markets

Dense jungle doesn’t deter drilling in gold-rich Guyana.

Last November’s resource update for the Zion and Kilroy zones uses a cutoff of 0.5 grams per tonne gold, showing:

  • an indicated category of 3.92 million tonnes averaging 1.49 g/t for 188,000 gold ounces
  • an inferred category of 20.63 million tonnes averaging 1.19 g/t for 792,000 gold ounces.

The deposit remains open in three lateral directions and at depth, the technical report states. Mineralization so far covers just 300 hectares of the 5,050-hectare property.

To offer perspective on the strategy of phased development, the resource gives separate numbers for oxidized rock, or saprolite, and for non-oxidized “fresh” or hard rock underneath:

  • the indicated category includes 74,000 gold ounces in saprolite material and 114,000 ounces in fresh material
  • the inferred category includes 306,000 gold ounces in saprolite material and 486,000 ounces in fresh material.

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Sandspring reports Guyana Gold Assays as high as 1.54 g/t over 94.5m

March 23rd, 2012

Resource Clips - essential news on junior gold mining and junior silver miningSandspring Resources Ltd TSXV:SSP announced assay results from its Toroparu gold deposit in Guyana, South America. Highlights include

1.19 g/t gold over 75 metres
1.54 g/t over 94.5 metres
2.09 g/t over 64.5 metres
1.37 g/t over 69 metres
2.59 g/t over 28 metres
1.52 g/t over 88.5 metres

VP Exploration Werner Claessens commented, “This infill drill round confirms that the resource and geological model for the Toroparu Gold Deposit as presented in the recently updated PEA, continues to surface and that gold distribution and grade barely change within the saprolite layer. I’m very pleased with the step-out results to the southeast, which underlines the potential to find satellite deposits in the vicinity of Toroparu. This brings us a step closer to the concept that the existing resource is part of a larger system.”

View Company Profile

Sandspring Resources Ltd
Investor Relations

by Ted Niles

Sandspring announces $25M Private Placement for Guyana Gold Project

March 9th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningSandspring Resources Ltd TSXV:SSP announced a bought-deal private placement of 23.15 million shares at $1.08 per share for $25 million. The company has granted the option to buy shares up to an additional 15% of the offering within 30 days of the closing date on or about March 30, 2012. Proceeds will be used for exploration, development and general corporate purposes.

Sandspring is currently advancing exploration and prefeasibility of the Toroparu Gold-Copper Deposit in Guyana. Toroparu has a February 2011 resource estimate of 29.7 million tonnes grading 0.88 g/t gold for 843,400 ounces gold and 0.14% copper for 92 million pounds copper measured, 122.49 million tonnes grading 0.68 g/t gold for 2.69 million ounces gold and 0.9% copper for 240.6 million pounds copper indicated and 233.68 million tonnes grading 0.71 g/t gold for 5.33 million ounces gold and 0.05% copper for 261.9 million pounds copper inferred. The estimate uses a cutoff of 0.24 g/t gold equivalent.

View Company Profile

Sandspring Resources Ltd
Investor Relations

by Greg Klein

Sandspring reports Guyana Gold Assays including 1.41 g/t over 165m

February 29th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningSandspring Resources Ltd TSXV:SSP announced assays from its Toroparu gold deposit in Guyana, South America. Results include

1.23 g/t gold over 118.5 metres
1.41 g/t over 165 metres
1.96 g/t over 21 metres
1.97 g/t over 24 metres
1 g/t over 73.5 metres
1.32 g/t over 28 metres
1.14 g/t over 57 metres
1.46 g/t over 115.5 metres
1.55 g/t over 126 metres
2.15 g/t over 87 metres
1.86 g/t over 23.5 metres
0.97 g/t over 107 metres (including 1.09 g/t over 80 metres)

VP Exploration Werner Claessens commented, “The recently released updates of the mineral resource estimate and PEA for Toroparu reflect a solid project based on a world-class resource with robust project economics. The reported results from our ongoing infill drill program continue to contribute to the growth potential of the measured and indicated resources within the project. I believe that step-out drilling along strike of the deposit zone in both directions and the RC exploration drilling further to the northwest will reveal more mineralization systems, which will be developed to additional resources.”

View Company Profile

Investor Relations

by Ted Niles

Sandspring announces Guyana Results up to 1.25 g/t Gold, 0.09% Copper over 150m

December 21st, 2011

Resource Clips - essential news on junior gold mining and junior silver miningSandspring Resources Ltd TSXV:SSP announced assays from its Toroparu Gold Deposit in Guyana. Results include

1.25 g/t gold and 0.09% copper over 150 metres
1.83 g/t gold and 0.15% copper over 127.5 metres
(including 2.33 g/t gold and 0.08% copper over 34.5 metres)
1.44 g/t gold and 0.08% copper over 124.5 metres
3.67 g/t gold and 0.13% copper over 45 metres
1.11 g/t gold and 0.2% copper over 103.5 metres
(including 2.06 g/t gold and 0.27% copper over 18 metres)
1.01 g/t gold and 0.07% copper over 85.5 metres

VP of Exploration Werner Claessens commented, “The company’s aggressive drill program, which has provided positive and encouraging results over the last month, continues to increase our confidence that Toroparu is one of the larger gold deposits in the Guyana Shield. In addition to reporting on the continued development of that resource through an updated mineral resource estimate and an updated preliminary economic assessment, we are optimistic that the results of the regional geochemical campaigns will lead to additional new discoveries within our concession package over the coming year.”

View Company Profile

Investor Relations

by Greg Klein

Sandspring reports Guyana Assays including 1.32 g/t Gold over 241.5m

November 23rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningSandspring Resources Ltd TSXV:SSP announced results from its Toroparu Gold Deposit in Guyana. Highlights include

1.32 g/t gold and 0.03% copper over 241.5 metres
(including 2.31 g/t gold and 0.04% copper over 67.5 metres)
1.06 g/t gold and 0.17% copper over 300 metres
(including 1.58 g/t gold and 0.2% copper over 120 metres)
1.14 g/t gold and 0.17% copper over 213 metres
(including 2.05 g/t gold and 0.09% copper over 12 metres)
0.95 g/t gold and 0.08% copper over 225 metres
(including 2.13 g/t gold and 0.02% copper over 24 metres)
1.44 g/t gold and 0.04% copper over 46.5 metres
0.68 g/t gold and 0.02% copper over 94.5 metres
(including 2.09 g/t gold and 0.03% copper over 7.5 metres)

VP of Exploration Werner Claessens stated, “This is the final set of drill results that will be released prior to a restatement of the mineral resources. We are encouraged by the continued expansion of these higher-grade mineralization features which have the potential to improve the overall quality and size of the resource. In addition, drill hole TPD 265 continues the series of encouraging results from expansion drilling to the southeast of the current resource area, opening the possibility to extend the resource in this direction. We look forward to updating the results of the previous mineral resource estimate, based on 63,614 metres of drilling with results based on 100,235 metres drilled through TPD 265, as well as the recalculation of the project economics based on this revised resource estimate. Together with the recently signed mineral agreement with the government of Guyana, we expect the definition of this world-class resource to help propel the project toward full feasibility and development.”

View Company Profile

Investor Relations

by Greg Klein