Sunday 27th May 2018

Resource Clips


Posts tagged ‘Vale SA (VALE)’

Emerita Resources releases first zinc-lead assays from its Salobro project in Brazil

May 23rd, 2018

by Greg Klein | May 23, 2018

The near-term goal is a 43-101 resource to replace an historic estimate as drilling continues at Emerita Resources’ (TSXV:EMO) Salobro zinc project in eastern Brazil’s Minas Gerais state. Out of a planned 23-hole, 3,500-metre campaign, the crew has so far sunk 15 holes totalling 2,133.9 metres, with the first two assays released May 23.

Infill hole DDH-001 was collared within 24 metres of an exceptional historic Vale NYSE:VALE interval of 10.39% zinc and 2.13% lead over 13.92 metres. The new hole revealed:

  • 4.05% zinc and 1.24% lead for 5.29% zinc plus lead over 9.62 metres, starting at 257.9 metres in downhole depth
  • (including 9.74% zinc and 3.66% lead for 13.4% zinc plus lead over 2.72 metres)
Emerita Resources releases first zinc-lead assays from its Salobro project in Brazil

A high-grade historic zinc estimate from
Vale brought Emerita Resources to Brazil.

DDH-002 extended an historic mineralized zone approximately 30 metres up-dip, with an assay grading:

  • 5.15% zinc and 0.51% lead for 5.66% zinc plus lead over 3.32 metres, starting at 108.38 metres

True widths weren’t provided.

Vale’s historic, non-43-101 estimate came to 8.3 million tonnes averaging 7.12% zinc-equivalent using a 3.5% zinc-lead cutoff. Emerita hopes to increase those numbers in a 43-101 resource scheduled for July. The company filed a 43-101 technical report on the 1,210-hectare property in March.

The current program includes six large-diameter holes to collect 400 kilograms of material for metallurgical tests.

Emerita closed its 75% acquisition of Salobro in March, with the right to take on the remaining 25% from IMS Engenharia Mineral Ltda. The region’s infrastructure includes paved roads, cell phone reception, rail, power and water.

Emerita also partners in a 50/50 joint venture on Plaza Norte, a northern Spain zinc-lead project with considerable historic work and regional infrastructure that sits adjacent to the former Reocin mine that produced about 62 million tonnes averaging 11% zinc and 1.4% lead up to 2003. With drill permitting underway, Emerita could produce a maiden resource for Plaza Norte in early 2019.

Last December the company closed an oversubscribed private placement of $4.24 million.

Read more about Emerita Resources.

Emerita Resources mobilizes rigs to Brazilian zinc project, plans mid-year resource

April 10th, 2018

by Greg Klein | April 10, 2018

With one or more rigs now en route, Emerita Resources TSXV:EMO has field staff preparing its Salobro zinc project for a 3,500-metre program and a late-Q2 resource estimate. Located in eastern Brazil’s Minas Gerais state, the 1,210-hectare property has an historic, non-43-101 estimate compiled by Vale NYSE:VALE of 8.3 million tonnes averaging 7.12% zinc-equivalent using a 3.5% zinc-lead cutoff.

Emerita Resources mobilizes rigs to Brazilian zinc project, plans mid-year resource

Regional infrastructure includes paved roads,
cell phone service, rail, water and power.

“We see excellent potential to expand the existing resource and the previous work completed by Vale was to a high technical standard, which provides an excellent base from which to accelerate the evaluation of the project,” said Emerita chairperson David Gower.

The company closed its 75% acquisition of Salobro in March, retaining the right to pick up the other 25% from IMS Engenharia Mineral Ltda. Also last month, Emerita filed a 43-101 technical report on the property.

As part of the resource update work, Emerita has assays pending for resampled core from 10 selected historic holes and has relogged 11 holes.

Additionally, an engineering firm has completed a preliminary mine plan for the project. Emerita also has a community engagement proposal under review.

The work comprises part of an ambitious campaign that might reach pre-feasibility as early as next year.

In northern Spain, meanwhile, the company takes part in a 50/50 joint venture on Plaza Norte, another zinc-lead project with substantial historic work and regional infrastructure. Emerita has permitting underway for a drill campaign that could bring a maiden resource early next year.

The company closed an oversubscribed private placement of $4.24 million in December.

Read more about Emerita Resources.

Trans-Atlantic treasures

February 26th, 2018

Emerita Resources fast-tracks high-grade zinc in Brazil and Spain

by Greg Klein

Two years of escalating prices and several years of historic work have Emerita Resources TSXV:EMO in an exceptionally sanguine mood. Following December’s oversubscribed $4.24-million cash infusion and last month’s TSXV approval to close the Brazilian acquisition, the company announced a breathtakingly ambitious timeline for its Salobro zinc project. Should all go to a very optimistic plan, the company would advance from updating an historic resource to completing pre-feas and mine permitting within two to three years.

Emerita Resources fast-tracks high-grade zinc in Brazil and Spain

Should success reward optimism, Salobro
could reach pre-feasibility next year.

The 1,210-hectare former Vale NYSE:VALE project’s located in southeastern Brazil’s Minas Gerais state, where regional infrastructure includes a zinc smelter, paved roads, rail, water and power.

Salobro comes with an historic, non-43-101 Vale-compiled resource of 8.3 million tonnes averaging 7.12% zinc-equivalent lying at shallow depth and showing expansion potential along strike and down dip. The geology suggests either a Mississippi Valley-type or sedimentary exhalative deposit, Emerita says. A standout among historic intervals assayed 10.39% zinc and 2.13% lead over 13.92 metres.

The acquisition would give Emerita a 75% stake in Salobro and the right to pick up the remaining 25% from IMS Engenharia Mineral Ltda. Vale, meanwhile, has begun the process of withdrawing a civil claim against IMS concerning ownership of the property, Emerita stated. The company expects to close the deal by the end of March.

“Ambitious” might be an understatement for such an optimistic timeline. But the project “has consistently exceeded our expectations during our scoping and analysis phase,” says newly appointed CEO Michael Timmins. The veteran of Agnico Eagle Mines’ (TSX:AEM) expansion from one to nine operations adds, “We are encouraged by the outcome of this early mine study and are very excited to have the opportunity to utilize our award-winning mine-building team in Brazil to fast-track the development of Salobro.”

With that in mind the company foresees a 43-101 technical report filed by the end of March, a 43-101 resource by the end of Q2, 3,500 metres of exploration drilling to begin in early March, a PEA complete by the end of Q3, baseline enviro studies beginning in Q3, a pre-feas finished by Q3 2019 and mine development permits in hand by Q2 2020.

Obviously such an agenda depends on favourable outcomes at every stage. The company has already been resampling historic core for the new resource, which will also include upcoming step-out holes to expand the deposit’s shallow areas. A conceptual mine plan will build on info inherited from Vale.

Emerita credits its Brazilian team with significant involvement in projects including Belo Sun Mining’s (TSX:BSX) Volta Grande gold project and Aguia Resources’ (TSXV:AGRL) Tres Estradas phosphate deposit.

The deal calls for Emerita to pay Vale an initial US$350,000 after IMS turns Salobro over to a subsidiary held 75% by Emerita and 25% by IMS. Once Vale formally withdraws its claim against IMS, Emerita pays Vale legal costs of approximately 760,000 reals, about C$297,000. Further payments to Vale would cost Emerita US$1.65 million by July 14, US$1.5 million in 2020 and another US$3 million in 2024.

Emerita may buy out the IMS 25% for C$2 million and a million shares by 2021.

Emerita Resources fast-tracks high-grade zinc in Brazil and Spain

The Plaza Norte agenda aims for a late-
2019 preliminary economic assessment.

Helping on the financial side will be December’s oversubscribed $4.24-million private placement. But some of that cash will go to another Emerita zinc project—and for that, the focus shifts to northern Spain.

Situated next to the former Reocin mine that produced about 62 million tonnes averaging 11% zinc and 1.4% lead up to 2003, the 3,600-hectare Plaza Norte property sits amid regional infrastructure including rail, road and port facilities, along with a Glencore zinc smelter about 180 road kilometres away. The project is a 50/50 JV with the Aldesa Group, a specialized construction and infrastructure firm operating in Spain and internationally.

Emerita’s Spanish team now has permitting underway for a 5,000-metre campaign anticipated to start in May. The plan is to build a 43-101 resource over an area that’s already seen more than 300 holes totalling about 73,000 metres. Some historic intercepts include 9.72% zinc and 0.09% lead over 18.96 metres, along with 7.05% zinc and 0.3% lead over 8.2 metres. The company anticipates an initial resource in Q1 next year and a PEA by 2019 year-end.

Meanwhile Emerita awaits resolution of disputed ownership concerning two other Spanish zinc properties, Paymogo and Aznalcollar. The latter’s Los Frailes deposit hosts an historic, non-43-101 estimate showing 20 million tonnes averaging 6.65% zinc, 3.87% lead, 0.29% copper and 148 ppm silver. The company considers the project ready for feasibility studies.

Paymogo’s La Infanta deposit has another historic, non-43-101 estimate of 800,000 tonnes averaging 1.77% copper, 6.91% lead, 12.66% zinc and 148 g/t silver. About seven kilometres away, Paymogo’s Romanera deposit holds an historic, non-43-101 34 million tonnes averaging 0.42% copper, 1.1% lead, 2.3% zinc, 44 g/t silver and 0.8 g/t gold.

Emerita Resources targets high-grade Brazilian zinc project drilled by Vale

July 14th, 2017

by Greg Klein | July 14, 2017

Historic high zinc grades amid regional infrastructure have Emerita Resources TSXV:EMO planning to take on a new acquisition in east-central Brazil. Backed by 40 holes totalling 13,885 metres of drilling, the 1,210-hectare Salobro zinc project in Minas Gerais state comes with an historic, non-43-101 estimate of 8.3 million tonnes averaging 7.12% zinc. One historic intercept graded 10.39% zinc and 2.13% lead over 13.92 metres.

Emerita Resources targets high-grade Brazilian zinc project drilled by Vale

Mineralization occurs in three lenses, all remaining open, the company stated. Emerita has already commissioned a 43-101 technical report.

The project’s mineralization “was delineated by the highly respected technical group of Vale [NYSE:VALE] and remains open for future expansion,” said Emerita chairperson David Gower. “The project is located in an area with excellent infrastructure and a supportive environment for responsible mine development. Emerita has an exceptional technical team in Brazil and is ready to advance the project quickly.”

Local infrastructure includes paved roads, rail, water, power and cell phone reception, the company added.

The deal would resolve a legal dispute over Salobro between Vale and IMS Engenharia Mineral. Under a definitive agreement with Emerita, Vale would withdraw its ownership claim against IMS in return for US$6.5 million over seven years from Emerita, which would also cover Vale’s legal costs of about US$245,000.

Emerita and IMS have signed a binding LOI to create a subsidy to be held 75% by Emerita and 25% by IMS. IMS would then transfer its Salobro rights to the new entity in return for one million Emerita shares. The subsidiary would hold Salobro until Emerita completes its schedule of payments to Vale. Emerita would have the right to acquire the 25% IMS stake for C$2 million and one million shares. Emerita and IMS expect to sign a definitive agreement within 90 days.

Emerita also announced the termination of a non-binding LOI to acquire the Masa Valverde zinc project in Spain. But the company remains committed to another Spanish project, Aznalcollar, which hosts an historic, non-43-101 estimate of 71 million tonnes averaging 3.86% zinc, 2.18% lead, 0.34% copper and 60 ppm silver. The property is subject to a legal dispute in which Emerita alleges another company was wrongfully granted ownership. In an update last March, Emerita said a Seville court “has indicated that this result is highly irregular, inconsistent with the laws and regulations governing public tenders in Spain and further investigations need to be made to determine if there were any criminal acts committed in connection therewith.”

Ontario backs deep-mining research with $2.5-million grant

November 2nd, 2016

by Greg Klein | November 2, 2016

Sudbury’s status as a global capital of mining R&D gained additional recognition with a $2.5-million provincial grant. Announced at the Mining Innovation Summit on November 1, the money goes to the non-profit Centre for Excellence in Mining Innovation and its Ultra Deep Mining Network.

Ontario backs deep-mining research with $2.5-million grant

The UDMN works to improve safety, efficiency and sustainability of operations at depths below 2.5 kilometres. While China has announced support for deep-mining research as part of its Three Deep program, the alarming accident rate at South African mines has been attributed partly to the unprecedented depths of some operations, one breaching the four-kilometre mark.

Ontario hosts two of the world’s 10 deepest mines, according to Mining-Technology.com. Vale’s Creighton nickel-copper mine in Sudbury holds tenth place, at about 2.5 kilometres’ depth. Glencore’s Kidd copper-zinc mine in the Timmins region holds eighth place at slightly more than three kilometres. The other eight mines are all South African gold operations.

Another type of research goes on at Creighton, which hosts the SNOLAB physics experiments including the Sudbury Neutrino Observatory that won Art McDonald a Nobel Prize in 2015.

Why Creighton? As quantum physicist Damian Pope told the National Post, the lab’s two kilometres of rock shields neutrinos from other sub-atomic particles, allowing them to be studied in relative isolation. That research, conducted where the sun don’t shine, somehow helped eggheads understand how the sun shines.

As for mining research, Sudbury hosts nine institutes dedicated to innovation, the province stated. Ontario now has 42 operating mines supporting 26,000 direct jobs and 50,000 additional jobs associated with mining and processing, according to a statement from mines minister Michael Gravelle. He valued Ontario’s 2015 mineral production at $10.8 billion.

The Ministry of Northern Development and Mines hosted the two-day Sudbury summit to bring together “government, industry, academia, thought leaders, entrepreneurs, as well as research and innovation organizations” to further encourage mining innovation.

Read about Laurentian University’s Metal Earth project.

Visual Capitalist: How precious metals streaming works

September 12th, 2016

by Jeff Desjardins | posted with permission of Visual Capitalist | September 12, 2016

Miners seeking new capital have always had a variety of options: They could issue new shares, take out a loan, enter into joint-venture agreements or divest non-core assets.

However, in the last decade, a new option has emerged called “precious metals streaming”—in which streaming companies essentially offer capital up front to mining companies in exchange for metal later. If properly executed, the result is a win for both parties that can ultimately provide value to investors.

Precious metals streaming

This infographic from Silver Wheaton TSX:SLW explains the precious metals streaming model and the arbitrage opportunity that creates value for both the streamer and the miner seeking to acquire capital:

How precious metals streaming works

 

The aforementioned arbitrage opportunity in precious metals streaming is key.

For a traditional base metal miner, the majority of forecasted mine revenue may come from a metal like copper or nickel. However, along with those “target” metals, smaller amounts of gold and silver may be produced from the deposit as well.

Investors would still value those byproduct precious metals in a base metal miner’s portfolio, but the metals may be typically valued at an even higher multiple in a precious metal streamer’s portfolio. This allows the base metal miner to transfer these future “streams” to the streamer in exchange for up-front capital, which can be a win-win scenario for both parties.

Streaming benefits

In other words, miners use streaming to acquire non-dilutive financing and to extract value from non-core assets. This allows them to deploy capital on purposes more central to their strategy. Major miners such as Teck Resources TSX:TCK.A and TCK.B, Barrick Gold TSX:ABX, Vale NYSE:VALE and Glencore all sold streams in 2015.

Meanwhile, streaming companies have been very successful since this model was first pioneered 12 years ago. They are getting gold and silver at a discount, and this has created significant value for investors over the last decade. Today there are many valuable streaming companies out there, including the major ones such as Silver Wheaton, Royal Gold and Franco-Nevada TSX:FNV.

Posted with permission of Visual Capitalist.

Rediscovering the planet

September 9th, 2016

Laurentian University and its partners hope to re-write the geoscientific Book of Genesis

by Greg Klein

Laurentian University and its partners hope to re-write the geoscientific Book of Genesis

Metal Earth puts some of the world’s best-exposed, best-known
rocks under additional scrutiny to unlock evolutionary secrets.

 

Looked at this way, the future of mineral exploration lies in the past—billions of years in the past. But with state-of-the-art tools, techniques and expertise, Precambrian mysteries can be solved, leading to another generation of discoveries. Researchers with Laurentian University’s Metal Earth project intend to do just that, confidently stating they will transform our understanding of how mineral deposits originated during the planet’s evolution.

What accounts for such boldness? “We are trying new techniques, doing research on a scale that has not been done before and I’m confident that we’re going to make discoveries,” Harold Gibson tells ResourceClips.com. As director of the Mineral Exploration Research Centre at Laurentian’s Harquail School of Earth Sciences and head of the Metal Earth project, he can barely contain his enthusiasm.

Laurentian University and its partners hope to re-write the geoscientific Book of Genesis

An extensive, innovative, seven-year study makes
its headquarters at Sudbury’s Laurentian University.
(Photo: Laurentian University)

“It’s a fully integrated study of our Earth,” he continues. “We’re looking at producing MRI-like images through transects of known endowed areas and structures and compare them with structures that appear to be similar but not endowed. It’ll be backed up by a lot of geology, geochemistry, mantle xenolith geochemistry, geophysics. We’re going to apply the same scrutiny to the less endowed areas to determine the underlying processes and help guide industry to select areas. We’re going to peel back time, peel back the Earth’s crust, essentially. This has never been done before.”

Gibson’s hardly alone in his confidence. Barely a week into the project’s existence, Metal Earth has attracted cash and in-kind backing totalling over $104 million. That includes a very prestigious award of $49.27 million from the Canada First Research Excellence Fund.

With money sufficient for a seven-year run, Metal Earth will draw researchers from Laurentian and other schools, including over 35 post-doctoral fellows, research assistants, technicians and support staff, over 80 grad students, 100 undergrads and numerous subcontractors.

Industry partners so far include the looming Sudbury presence of Vale NYSE:VALE, TMAC Resources TSX:TMR, nearing production at Hope Bay in Nunavut, and Ring of Fire explorer Noront Resources TSXV:NOT. Mira Geoscience brings its world-class earth modelling expertise while the Centre for Excellence in Mining Innovation provides additional computational facilities. Several universities and geological surveys have also joined in partnership.

Gibson expects ground-breaking results, in more ways than one.

Metal Earth will surpass Lithoprobe as Canada’s most extensive earth science project, he says. Some experts consider the 1980s-to-’90s endeavour to be the world’s best project of its kind. “Metal Earth is building on that with much more detail, much better equipment. We have more tools now,” he points out.

“Some ore deposits were integrated into Lithoprobe, but not a lot.” Even so the project “revolutionized ideas of tectonics, the evolution of our Shield, as well as ore deposits. This is much more focused on ore deposits and large-scale systems, so I know we’re going to have new results that will be extremely interesting. If we’re only 20% successful we’ll still change a lot of ideas.”

We’re going to peel back time, peel back the Earth’s crust, essentially. This has never been done before.—Harold Gibson,
Metal Earth project lead

Probably starting in October, field work will begin with the Abitibi Greenstone Belt. That puts a number of familiar areas under additional scrutiny. Then boots hit the ground on a less prolific belt, northwestern Ontario’s Wabigoon. Hope Bay, the Sudbury area and Manitoba will also come under investigation.

“We focused on Canada because we have the best-exposed and best-known Shield in the world—and tons of expertise. We can do this research best here but we see the results applicable globally and to younger terrains.”

Some data provided by companies will be kept confidential, but the results “will all be open source,” Gibson says. “All the data that we collect, which will be enormous, will be open to the public.”

That’ll primarily be “spatial data, on maps, plotted in 3D, in formats need by industry, government and other researchers.” Some of it will even be 4D, with the fourth dimension being time.

“We want to understand how time fits into this equation. We want to look back at the geometry, the morphology, the tectonics of the Precambrian,” he explains. “We’re going to do that through geochronology and isotope geochemistry. We’ll be looking at zircons collected by researchers and at government surveys throughout the Superior and Slave provinces, analyze them and use them as surrogates for looking at the nature of the crust at that time…. We can start reconstructing our paleo shields and look into how and when deposits fit into that.”

The results will offer a multitude of uses for exploration companies, Gibson says. He anticipates they’ll begin by poring over “an incredible amount of new data. Then we’ll be interpreting that data, creating images, integrating it all and making that available. We’ll be generating new algorithms, new ways of treating the data to see patterns that haven’t been seen before.” Info will be accessible online through Laurentian and through government partners.

While his enthusiasm’s obvious, Gibson’s well aware of the enormous challenge ahead of his team.

“This is a tremendous opportunity for us, a tremendous opportunity for geoscience in Canada, but with that comes a tremendous responsibility to do it right,” he emphasizes. “And that’s what we’re going to do.”

Pay as you go

April 28th, 2016

New gold producer Equitas Resources sees revenue for incremental expansion

New gold producer Equitas Resources sees revenue for incremental expansion

Equitas Resources meets Alta Floresta during due diligence in Brazil.

 

Negotiations with minority shareholders dragged out longer than expected but on April 27 Equitas Resources TSXV:EQT officially made the transition from Labrador nickel explorer to Brazil gold producer. On closing its acquisition of Alta Floresta Gold, Equitas now takes over a modest gold operation with the intention of increasing production—and cash flow—incrementally. Should all go to plan, that would bring a step-by-step payback for each new stage of the operation, as well as funding for further exploration.

That certainly contrasts with the traditional exploration model, with which investors can be quick to show impatience. Equitas experienced that first hand after just one season of drilling its Garland project, despite its compelling nickel-cobalt-copper story south of Voisey’s Bay.

New gold producer Equitas Resources sees revenue for incremental expansion

In operation since June, the Cajueiro project holds potential
for greater recovery, as well as expansion of near-surface oxides.

Looking for alternative financing, then-president/now-chairperson Kyler Hardy learned about Alta Floresta’s Cajueiro project through a friend in the company. Hardy not only liked its potential. He also recognized a good fit between the two companies’ teams.

Alta Floresta brings to Equitas its 100% interest in six gold properties with four production licences, part of a portfolio covering more than 184,410 hectares in Brazil’s central states of Mato Grosso and Para. The flagship Cajueiro project’s Baldo zone has been in operation since June, producing around a kilogram of gold a month. That amounts to recovery of only about 30% to 35%, achieved by running alluvium and saprolite through a sluice box.

Equitas hopes to see considerable improvement within months by installing a gravity plant, then about 85% recovery with carbon-in-leach processing that could begin early next year. Full open pit production would be a longer-term goal.

We expect the payback for each stage in less than a year, much less for the gravity plant. We’re derisking it that way, by building in stages.—Chris Harris, president/CEO
of Equitas Resources

The plan is to “develop the project in stages and each stage has to pay for itself,” explains new president/CEO Chris Harris. “We expect the payback for each stage in less than a year, much less for the gravity plant. We’re derisking it that way, by building in stages. That could also provide cash flow for a sustaining exploration program which we hope would then beget further development.”

Of course these are perilous times for Brazil, now undergoing serious recession, a wide-ranging corruption scandal and impeachment proceedings against President Dilma Rousseff. Compounding the problems are their effect on the Brazilian real, which contrasts with currently high gold prices. “But what that’s doing to our project is creating huge cost compression,” Harris says. “That benefits both capex and opex.” The company has already selected a nearly new gravity plant in the region for purchase. Its price has sunk to less than half of what he projected last year.

Exploration will focus on near-surface oxides, where Equitas sees the greatest potential for resource expansion and low-cost extraction.

Except for one property slightly north, the entire portfolio sits on the Juruena gold belt, which has historic estimates of seven to 10 million ounces of artisanal output. Straddling the border between Para and Mato Grosso states, the 39,053-hectare Cajueiro property’s near-term agenda could include bulk sampling and trenching, as well as diamond and rotary air blast drilling. Exploration will focus on near-surface oxides, where Equitas sees the greatest potential for resource expansion and low-cost extraction.

A just-filed 43-101 technical report recalculates data from a 2013 resource estimate to allow for different gold price and opex numbers. The new study bases a cutoff of 0.25 grams per tonne on a near-surface deposit that can be processed by cyanidation or gravity processing. The report provides separate numbers for four zones of sulphides and oxides.

Total sulphide zones:

  • indicated: 8.64 million tonnes averaging 0.771 g/t for 214,100 gold ounces

  • inferred: 9.53 million tonnes averaging 0.664 g/t for 203,500 ounces

Total oxide zones:

  • inferred: 1.37 million tonnes averaging 1.775 g/t for 78,400 ounces

All four zones show near-surface oxide expansion potential, Equitas states. Five other anomalies offer additional encouragement.

The project has road access to the city of Alta Floresta, 95 kilometres north. A hydro dam now under development should bring electricity within two years, if not sooner.

The arrangement combines talent from both companies. Harris casts a close eye on the accounts, having 30 years’ experience in energy, commodity trading and mining finance with companies like Ernst & Young, CIBC, Enron UK and BHP Billiton NYSE:BHP.

Hardy, through 16 years as a resource sector entrepreneur and executive, demonstrates a facility for operating remote, logistically complex exploration projects. Director Alan Carter, who also sits on the board of Eric Friedland’s Peregrine Diamonds TSX:PGD, brings 30 years’ exploration experience with the likes of Rio Tinto NYSE:RIO, BHP, and ECI Exploration and Mining, among others.

Equitas Resources closes acquisition of Brazilian gold operation

Cajueiro’s alluvial lure suggests
expansion potential to Equitas.

Co-director David Hodge also serves as president of Zimtu Capital TSXV:ZC, a project generator that supports several juniors with acquisitions and advisory services. VP of exploration Everett Makela began his career with Inco, eventually retiring as Vale’s (NYSE:VALE) principal geologist for North America. His international experience includes Brazil.

Mike Bennett, a local resident and director of Equitas subsidiary Alta Floresta Mineração, has spent 23 of his 30 exploration years in South America where he took part in three gold discoveries, Puquio North in Bolivia, as well as Coringa and Cajueiro in Brazil.

Also residing locally, Portuguese/English-fluent Richard Crew acts as operations consultant for Alta Floresta Mineração. His 30 years of experience includes positions as operations manager and COO for numerous companies worldwide. Another nearby resident, project manager and exploration geologist Elvis Alves knows the community as well as the minerology.

The deal has Equitas issuing 103.65 million shares to former Alta Floresta shareholders and 5.28 million options, exercisable at $0.15 for three years, to former Alta Floresta option holders. A 1.75% NSR applies to licences acquired two years ago from a former minority shareholder of Alta Floresta.‎

Earlier this month Equitas closed the final tranche of a private placement that totalled $1.5 million from 30 million units. Insiders bought 10.4 million units.

“We’ll be talking about implementing the gravity plant very shortly,” Harris says. “We’ll also be talking about starting our drilling plan, the drill results and possibly a revised 43-101. We’ll have a steady news flow.”

Visual Capitalist: The Voisey’s Bay story part 3

December 16th, 2015

Presented by Equitas Resources TSXV:EQT | posted with permission of Visual Capitalist | December 16, 2015

The story of Voisey’s Bay: Today’s mine (Part 3 of 3)

 

Preface

The massive Voisey’s Bay nickel deposit was auctioned off to the highest bidder in early 1996 for $4.3 billion. We show the events leading up to the nickel discovery in Part 1: The discovery.
We highlight the bidding war for the rights to the deposit in Part 2: The auction.

Voisey’s Bay today

The discovery at Voisey’s Bay was ultimately significant for three reasons:

The ore was rich in content. In fact, the famed Ovoid zone had an average grade of 2.8% nickel.

Much of the ore was near surface. This would help minimize extraction costs.

The deposit was close to tidewater. This reduced the costs associated with transporting ore to ships.

The deposit

The Voisey’s Bay deposit is world class in terms of its grade and size. With 141 million tonnes of ore, the deposit has significant grades of nickel, copper and cobalt:

  • 1.63% nickel

  • 0.85% copper

  • 0.09% cobalt

The resource is located in three main zones: Ovoid, Eastern Deeps and Reid Brook. The Ovoid represents less than 23% of the total tonnage but more than 42% of the metal in the deposit.

Mining and transporting the ore

The open pit mine at Voisey’s Bay, now owned by Vale NYE:VALE, has been in operation since 2005. Recently, underground mining was approved at the site as well.

  • The ore from Voisey’s Bay is transported via the Umiak I—the world’s most powerful icebreaking cargo ship

  • The Umiak I makes 12 trips a year

  • The icebreaker rides over ice that can be 10 metres thick in places

  • It has a 30,000-horsepower engine, which is large enough to drive an oil tanker 10 times its size

  • The Umiak I can carry 30,000 tonnes of nickel-copper concentrate at once (worth $100 million per load)

The future

The Newfoundland and Labrador government estimated that the Voisey’s Bay project will add approximately $20.7 billion to the province’s gross domestic product during the mine’s estimated 30-year lifespan. Will more of these mines be found in Labrador in the future?

A well-known exploration proverb states that “the best place to find a new mine is next to an old mine.” That’s why, in a research report by the Newfoundland and Labrador government on Voisey’s Bay, it is noted that “this area remains highly favourable for future exploration.”

And as Robert Friedland has said himself: “Creative people shouldn’t be punished for failure, because in the exploration process we are in the business of drilling dry holes. You can’t keep drilling where you’ve looked.”

Posted with permission of Visual Capitalist.

Read about Equitas Resources.

Vale to add at least 15 years to Voisey’s Bay lifespan

August 10th, 2015

by Greg Klein | August 10, 2015

The commitment was made in March 2013 but confirmed August 10: Vale NYE:VALE intends to develop two underground deposits that would extend its Voisey’s Bay nickel operation past 2035. A joint announcement by the company and the government of Newfoundland and Labrador projected hundreds of construction jobs as well as a workforce that would grow from 450 to 850 people at the mine and its Long Harbour processing plant.

Vale to add at least 15 years to Voisey’s Bay lifespan

Production began in 2005 and will continue past
2035 as Voisey’s Bay goes underground.

“We are very excited about our future here and we look forward to the continued support of all of our stakeholders as we move forward,” said Stuart Macnaughton, Vale’s Newfoundland and Labrador VP.

The Reid Brook and Eastern Deeps deposits sit adjacent to the current open pit. Procurement planning begins immediately, with construction slated to start next year. The company expects to begin ore production by 2020.

Although Vale made the commitment with the province in 2013, confirmation had been expected last June following completion of an engineering report. The mine, which opened in 2005 following the historic 1993 discovery, currently produces 6,000 tonnes per day of nickel-cobalt-copper and copper concentrate.

Long Harbour, a $4.3-billion hydrometallurgical facility 117 kilometres west of Saint John’s, is expected to begin processing Voisey’s concentrate next year after ramping up operations. While Long Harbour began operations in 2014 with higher-grade concentrate from Indonesia, Voisey’s material still goes to Vale’s Sudbury and Thompson locations for processing.