Sunday 11th December 2016

Resource Clips


Posts tagged ‘turkey’

July 18th, 2016

John Mauldin: Implications of the Turkish coup/The age of no returns GoldSeek
Nickel near eight-month high as metals gain on stimulus speculation NAI 500
Cobalt supply tightens as battery demand looms Benchmark Mineral Intelligence
Markets are telling us what the elites won’t: Life goes on after Brexit Equities.com
New stock market highs correlate to $57 trillion in printed global currency units Streetwise Reports
Canada welcomes move towards ratification of EU trade deal Industrial Minerals
Gold junior climbs on assays SmallCapPower
A classic case of failed socialism: What’s next after Brexit? Stockhouse
Limestone: Commodity overview Geology for Investors
Lithium in Las Vegas: A closer look at the lithium bull The Disruptive Discoveries Journal

Kyrgyzstan gains B.C. foothold as Centerra hedges jurisdictions

July 5th, 2016

by Greg Klein | July 5, 2016

A “balanced geopolitical risk profile” would counter Centerra Gold’s (TSX:CG) Kyrgyzstan woes with a solid foundation in more favourable countries. But with Kyrgyzstan currently holding nearly a third of Centerra shares, that country retains a sizeable piece of the action. Late July 5 Centerra announced a definitive agreement to pick up Thompson Creek Metals TSX:TCM and its Mount Milligan copper-gold mine in British Columbia. Also included are Thompson Creek’s Endako molybdenum mine in B.C. and its Thompson Creek moly mine in Idaho, both on care and maintenance, as well as two development projects in B.C.

Kyrgyzstan gains B.C. foothold as Centerra hedges jurisdictions

Gold miner Centerra takes on Thompson
Creek’s debt to move into a safer jurisdiction.

Subject to approvals, the share swap values Thompson Creek at C$0.79, a 33% premium to the company’s 20-day volume-weighted average to July 4. The deal would leave Thompson Creek shareholders with about 8% of Centerra. The company also pays off Thompson Creek’s outstanding notes. The companies value the transaction at approximately US$1.1 billion.

Royal Gold’s Mount Milligan gold stream would drop from 52.25% to 35% in exchange for an 18.75% copper stream.

The deal gives Centerra “an operating base in Canada—one of the lowest-risk mining jurisdictions in the world—which will complement our [50%-held] Canadian-based Greenstone project and provide for further flexibility to expand into the Americas,” commented CEO Scott Perry.

In addition to its flagship Kumtor gold mine in Kyrgyzstan, Centerra holds Mongolia’s Boroo gold mine, currently on care and maintenance, and two advanced-stage gold projects in Mongolia and Turkey.

At the company’s May AGM the CEO reportedly acknowledged that Kyrgyzstan is “not viewed as a top-tier jurisdiction”—a considerable understatement. Out of 109 countries ranked by the Fraser Institute’s annual mining survey, Kyrgyzstan ranks 19th from last on the Investment Attractiveness Index and eighth from last on the Policy Perception Index. B.C., although no paradise itself for miners, ranks 18th from top on the IAI and 41st on the PPI.

Centerra’s Kyrgyzstan adversities have included a police raid on the company’s office, a US$220-million pollution fine, a US$9-billion claim by the country’s Green Party, criminal investigations against the company’s executives, a ban on executives leaving the country, the arrest of a former CEO in Bulgaria reportedly at Kyrgyzstan’s behest, illegal roadblocks, violent mobs, and the arrest and deportation of a Centerra welder after he posted a Facebook remark comparing a local sausage to “horse penis.”

Centerra holds a 100% interest in Kumtor but Kyrgyzstan holds 32.7% of Centerra. In December the company offered to trade a 50% stake in the mine for the country’s shares. But now Kyrgyzstan faces dilution through the C$170-million bought deal Centerra also announced on July 5.

The company expects to close the offer around July 20 and the acquisition in autumn.

Pasinex Resources boosts production as zinc sales fund drilling

November 26th, 2015

by Greg Klein | November 26, 2015

With an enviable plan to finance its initial resource by mining the same project, Pasinex Resources CSE:PSE announced another zinc sale on November 26. Horzum AS, a 50/50 joint venture of Pasinex and chrome producer Akmetal AS, sold 1,478 tonnes wet weight of material grading approximately 38% zinc from the Pinargozu mine in southeastern Turkey. With over 1.1 million tonnes of contained zinc in this lot, sales from small-scale mining have totalled more than 8.8 million tonnes so far.

Pasinex Resources boosts production as zinc sales fund drilling

With production increasing, Pasinex now expects to fund
the rest of Pinargozu’s resource drilling through small-scale
mining at the same project.

“Production is being stepped up, and has recently been averaging around 40 tonnes per day to as much as 60 tonnes per day,” said Pasinex president/CEO Steve Williams. “We have increased our mining areas from two to now three, and have staffed up. This is an exciting time for our growth, as we build Pinargozu into a small but strong zinc mine. We’re focusing our exploration efforts there and in the Akkaya area where we think there is much more zinc to be found.”

Pinargozu and the nearby Akkaya claims sit close to the historic Horzum mine, a few kilometres from a major highway and about one and a half hours from the city of Adana. In August the JV staked eight additional zinc-lead prospects “relatively close” to Pinargozu. Pasinex intends to continue drilling both Pinargozu and Akkaya throughout the year, with a goal of completing Pinargozu’s maiden resource within 12 months.

The company also holds a 100% option on the northern Turkey Golcuk project, where previous drilling confirmed the presence of Manto-style mineralization grading up to 2% copper.

Pasinex announces third Turkish zinc sale prior to maiden resource

October 16th, 2015

by Greg Klein | October 16, 2015

A joint venture that’s both mining and drilling towards its first resource estimate completed the third lot sale of high-grade zinc material from its southeastern Turkey operation. On October 16 Pasinex Resources CSE:PSE reported the 1,215-tonne wet weight sale, grading approximately 30% for about 700,000 pounds of contained zinc. Three such sales since December now total about 12,428 tonnes containing about 7.7 million pounds.

Pasinex announces third Turkish zinc sale prior to maiden resource

As of last month, Pinargozu’s current program totalled 34 holes
for 4,096 metres of surface drilling and 28 holes for 1,905 metres
of underground drilling.

The Pinargozu mine in Turkey’s Adana province is held by Horzum AS, a 50/50 JV of Pasinex and chrome producer Akmetal AS. Operating in parallel with resource drilling, small-scale mechanized mining employs about 60 people. Output is trucked about 100 kilometres to a warehouse where it’s crushed, screened and stored while awaiting sale.

“While Horzum AS expects to sell more material this year and beyond, currently the expected cash will not yet be sufficient to capitalize Pasinex fully,” the company stated. “Therefore, Pasinex management is in the process of raising further equity to cover G&A for the time being. Pasinex’s dependency on further capital injections ought to change during 2016 provided the Pinargozu mine continues to run at similar production rates as in the past 10 months.” A private placement offered last June for up to $500,000 didn’t close.

In August Pasinex announced the JV’s provisional acquisition of eight new zinc-lead prospects through staking, all “relatively close” to Pinargozu and the JV’s Akkaya project, as well as Akmetal’s past-producing Horzum zinc mine.

Expressing optimism about zinc prices, Pasinex CEO Steve Williams commented, “Last week Glencore, the world’s largest zinc producer, announced mine closures and reduced production totalling 500,000 tonnes zinc. We are very heartened by this because it led to an immediate spike up in the zinc price and provides a positive market environment.”

Pasinex Resources president/CEO Steve Williams explains how small-scale mining coincides with maiden resource drilling at the company’s Pinargozu zinc project in Turkey

August 31st, 2015

…Read more

Mining coincides with resource drilling at Pasinex Resources’ Turkish zinc project

August 6th, 2015

by Greg Klein | August 6, 2015

Pasinex Resources CSE:PSE reported its second sale of high-grade zinc material from a mine that doesn’t yet have a maiden resource. Announced August 6, the sale came to 4,760 tonnes (wet weight) of high-grade material with a lot assay of 31.6% zinc from the Pinargozu mine in southern Turkey. The lot represents about 2.9 million pounds of contained zinc. The sale marks the project’s second since December, with both transactions totalling about seven million pounds of contained zinc extracted between late 2014 and early June.

Mining coincides with resource drilling at Pasinex Resources’ Turkish zinc project

While small-scale mining continues, Pasinex Resources
has three rigs drilling towards a Q3 maiden resource.

The customer was Pasinex’s 50/50 partner in the Horzum AS joint venture and Turkey’s largest chromite producer, Akmetal AS. After deducting money the JV owes Akmetal, the JV expects a “modest” but undisclosed cash payment.

Although Pasinex anticipates further sales from small-scale production, the company expects to continue its reliance on equity financings this year. In June Pasinex offered a private placement up to $500,000.

Even so, “We are clearly now a producing company,” said president/CEO Steve Williams. “Our path forward is to continue to drill and mine at Pinargozu whilst we look for that bigger resource target. We currently have three drill rigs running and that should continue for the rest of this year and beyond. We will use the surplus cash coming from the mining operations to offset some of these exploration and production expenses.”

The JV has about 60 employees onsite. Product from the underground mine is trucked about 100 kilometres to the city of Adana where it’s crushed, screened and stored. Once a sale has closed, the zinc travels another 80 kilometres to the Mediterranean port of Mersin.

Meanwhile drilling continues. Among high-grade results reported last spring was the project’s best intercept so far:

  • 37.72% zinc over 35.5 metres, starting at 113 metres in downhole depth
  • (including 42.38% over 31.5 metres)

True widths were unavailable. Pinargozu has its maiden resource scheduled for Q3.

The Horzum AS JV also holds the adjacent Akkaya zinc project. In northern Turkey, Pasinex holds 100% of the Golcuk copper project.

The stuff of life

March 23rd, 2015

Little-known but essential commodities can offer near-term potential, says MGX Minerals

 

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Without them, modern life wouldn’t be very modern. A wide range of industrial minerals make possible so much of what we take for granted, from luxuries to conveniences to necessities. Although few of the commodities are familiar to investors, CEO Jared Lazerson of MGX Minerals CSE:XMG believes he’s found opportunities for potentially near-term domestic production to supply North American markets.

Since its trading debut last October, MGX has been busy acquiring properties in British Columbia, mostly with a goal of producing magnesite. In fact the company has tracked down and claimed most of B.C.’s significant magnesite occurrences. The province currently hosts one of the only two magnesite mines in North America.

Little-known but essential commodities can offer near-term potential, says MGX Minerals

Driftwood Creek drilling confirmed near-surface magnesite mineralization.

As a source of magnesium, magnesite—not to be confused with magnetite—meets a number of agricultural, pharmaceutical, environmental and industrial applications. Exceptionally light for a structural metal, magnesium is used to manufacture cars and planes, among other uses. As part of an alloy, it helps make more rigid metals suitable for shaping into manufactured products.

Magnesium can be mined from magnesite or dolomite and can also be extracted from seawater or natural brines, which accounted for about 69% of American domestic magnesium compounds production in 2014, according to the U.S. Geological Survey.

USGS data shows about 52% of magnesium compounds consumed in that country last year went to agricultural, chemical, construction, environmental and industrial applications. The remaining 48% was used for refractories.

As for magnesium metal, USGS numbers show 35% of American consumption in 2014 went to aluminum-based alloys used largely in packaging and transportation. Another 30% was used as a reducing agent in the production of titanium and other metals, 15% for structural purposes, 10% for desulfurization of iron and steel, and 10% for other applications.

By far the largest global supplier, China accounted for about 89% of the world’s magnesium metal production last year, according to the USGS. Israel and Russia managed to make up about 3.3% and 3.1% respectively.

As for magnesium compounds, China again dominated world production with about 70% last year. Russia came up with about 5.7% and Turkey 4.3%.

A new North American producer, especially one that’s close to existing transportation infrastructure, could offer the continent’s market considerable advantages, says Zimtu Capital TSXV:ZC president Dave Hodge.

“MGX is a fairly unique story,” he points out. “It’s had a very recent IPO but it’s already in the permitting process. Magnesium comes in a variety of forms and one of the things they’re working on now is determining what form they would produce at what cost, versus the size of the market for that specific commodity. Those markets take different grades and different grades are produced at different costs. The opportunity here is to determine what’s the best product to produce and create value for their shareholders.”

Hodge adds, “In many respects this is not so much a mining story but more of a business story.”

Last July Lazerson signed a three-year cash, share and expenditure deal that would give the company a 100% interest in the 326-hectare Driftwood Creek project. Now MGX’s flagship, it’s located in southwestern B.C.’s Kootenays, a region that also hosts Baymag Inc’s Mount Brussilof magnesite mine. With logging roads on the property itself, Driftwood sits about 15 kilometres from highway, power and a CP spur line.

Lazerson sees near-term potential for a relatively simple quarry operation with a low strip ratio.

MGX also gained considerable expertise in CFO Michael Reimann and VP of exploration Andris Kikauka. Reimann, with a PhD in physics, has served over 45 years in senior corporate management positions, most recently with Skana Capital and PNG Gold TSXV:PGK. Kikauka’s 30-year background includes service as project geologist for the exploration and geotechnical consulting firm Rio Minerals. He’s currently a director of American Manganese TSXV:AMY.

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November 4th, 2014

Paul Adams: Macro trumps micro in resource sector Streetwise Reports
Gold bulls retreat with $1.3 billion pulled from funds NAI 500
Nobody mourns death of QE as treasuries prove insatiable VantageWire
Selective financing to snag pace of mine development Industrial Minerals
Old gold: An introduction to Archean greenstone belts Geology for Investors
Frank Holmes: Talking Turkey with John Derrick Stockhouse
The gold manipulation debate, if you can call it that GoldSeek
The last resort when monetary policy fails Equedia

November 3rd, 2014

Gold bulls retreat with $1.3 billion pulled from funds NAI 500
Nobody mourns death of QE as treasuries prove insatiable VantageWire
Selective financing to snag pace of mine development Industrial Minerals
Old gold: An introduction to Archean greenstone belts Geology for Investors
Frank Holmes: Talking Turkey with John Derrick Stockhouse
The gold manipulation debate, if you can call it that GoldSeek
John Kaiser’s tips for escaping the resource sector swamp alive Streetwise Reports
The last resort when monetary policy fails Equedia

November 3rd, 2014

Nobody mourns death of QE as treasuries prove insatiable VantageWire
Selective financing to snag pace of mine development Industrial Minerals
Old gold: An introduction to Archean greenstone belts Geology for Investors
Frank Holmes: Talking Turkey with John Derrick Stockhouse
The gold manipulation debate, if you can call it that GoldSeek
John Kaiser’s tips for escaping the resource sector swamp alive Streetwise Reports
The last resort when monetary policy fails Equedia