Saturday 10th December 2016

Resource Clips


Posts tagged ‘wisconsin’

July 15th, 2015

Wisconsin welcomes the seven-day work week Stockhouse
A free 10-ounce silver bar or a free Hershey bar? Guess what people chose SilverSeek
How do you get a $1-million portfolio? Equities Canada
Matt Badiali’s methods for investing in “Cowboyistan” Streetwise Reports
Gold producers see instant advantage should Greece exit euro NAI 500
Minerals hold up in slow oil and gas recovery Industrial Minerals

July 14th, 2015

Wisconsin welcomes the seven-day work week Stockhouse
A free 10-ounce silver bar or a free Hershey bar? Guess what people chose SilverSeek
How do you get a $1-million portfolio? Equities Canada
Matt Badiali’s methods for investing in “Cowboyistan” Streetwise Reports
Gold producers see instant advantage should Greece exit euro NAI 500
Minerals hold up in slow oil and gas recovery Industrial Minerals

September 26th, 2014

Frac sands ’14: Permitting in Wisconsin and Minnesota Industrial Minerals
Why stocks will do better than bonds as interest rates rise VantageWire
China defies predictions with an encouraging PMI Stockhouse
An introduction to alteration Geology for Investors
Can gold act as a safe haven again? Streetwise Reports
The last resort when monetary policy fails Equedia
Of course the gold price is manipulated, that’s the point—The London Gold Pool 1961 to 1968 GoldSeek

Propping up the oil patch

February 8th, 2014

Juniors seek near-term cash flow as the fracking demand for sand expands

by Greg Klein

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It’s the stuff that opened up—or more literally, holds open—the unconventional oil and gas deposits that have revolutionized the energy industry. As frac sand demand continues to increase, explorers have taken on the task of finding and developing new projects. In many cases they’re Canadian companies finding Canadian sources for Canadian customers.

Hydraulic fracturing, or fracking as it’s best known, involves pumping a high-pressure mix, often about 90% water and 9.5% sand or other proppants, to create cracks or fissures in otherwise impermeable rock. Proppants prop open the fissures, allowing gas and oil recovery. The process has undergone major advancements since its 1947 introduction and, more recently, has become vital to extraction of shale oil and gas, and coal bed methane. In 2012 Industrial Minerals credited the process for 90% of U.S. wells supplying 30% of American oil and natural gas production. By March of that year, Texas-based Cadre Proppants had sold a billion pounds of sand in just six months.

Explorers hope for near-term cash flow as the fracking demand for sand expands

An aerial view of Rainmaker’s neighbour shows
the near-surface deposit of Canadian Silica Industries.

Numbers released by PacWest Consulting Partners in December foresee 8% annual growth in American land proppant demand, “from 63 billion pounds in 2013 to 75 billion pounds in 2015.” These aren’t uniform commodities but, PacWest stated, the competitors—resin-coated sand and synthetic ceramic proppants—are losing market share to lower-cost natural silica sand.

The boom affects transportation too, especially railways. In December CN TSX:CNR president/CEO Claude Mongeau stated, “Over the past five years, CN’s frac sand market has grown by nearly 300%, rising to more than 50,000 carloads in 2013.”

How much sand is that? According to U.S. Silica Holdings NYE:SLCA president/CEO Bryan Shinn, quoted by the Wall Street Journal in December, “It takes 25 railcars of sand, on average, to frack one well.”

2012 prices cited by Industrial Minerals range between $60 and $200 a tonne, depending on size and quality.

Wisconsin is widely credited with producing about 75% of American supply and a big chunk of Canada’s too. One vertically integrated Wisconsin miner, Calgary-headquartered Source Energy Services, has Q1 plans to open Canada’s largest frac sand storage and distribution facility near Grande Prairie, Alberta. Capable of unloading 100 railcars of sand in less than a day, the Wembley terminal will be one of four new facilities the company intends to open this year. That will bring its total up to 15 along a 4,800-kilometre network from northern British Columbia to southern Texas.

Canadian sources mostly consist of “private producers scattered around the Prairies,” according to Chris Healey, VP of operations for Rainmaker Mining TSXV:RMG. In January his company signed a letter of intent for the 1,471-hectare Jayjay Lake project in northern Saskatchewan and a purchase and sale agreement for two other northern Saskatchewan properties totalling 10,275 hectares. On February 5 another LOI came through for the 24,363-hectare Peace River project in northern Alberta.

“We’re not stopping there,” Healey says. He hopes to see Rainmaker “move to the next level by becoming a producer, either by developing one of our properties to production as quickly as possible or potentially buying a producer. We’re developing our company as a pure frac sand play.”

Among the attractions of the frac sand space are “the potential for market growth, which is substantial, and the ability to acquire assets near customers at reasonable costs.”

Rainmaker’s access to road and rail also has Healey encouraged. “Transportation is one of the key factors in a location, offering proximity to end users,” he says.

The cost of exploration is reasonable too, compared to other commodities. “It’s simple technology to drill into the sand,” Healey points out. “The Jayjay Lake property is an old beach from the glacial lake that covered the Prairies up to 10,000 years ago. You can dig into it with a shovel, a backhoe or a post hole auger. The Peace River property will probably be a bit harder but not particularly hard. We can still use an auger to drill test.”

Patrick Kluczny agrees. A project geologist/manager with Dahrouge Geological Consulting, he was instrumental in evaluating the Peace River project for the vendors, Zimtu Capital TSXV:ZC and its partner.

Unlike other mineral deposits, frac sand is loosely consolidated so there’s no need for core drilling. “We can use an auger drill, which means that the costs of exploration will be a lot lower,” Kluczny says. “Auger programs are on an order of magnitude cheaper than core programs. Also these deposits pretty much have to be close to surface.”

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Under the rainbows

February 5th, 2013

Columbus, Aquila/Hudbay and Evolving find gold in French Guiana, Michigan and Nevada

by Greg Klein

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To put some perspective on its Paul Isnard property in French Guiana, Columbus Gold TSXV:CGT likes to go back in time—roughly 225 million years. That’s before tectonic forces tore apart the planet’s one and only continent. The present-day Caribbean coast of South America was then joined to present-day northwestern Africa. Consequently there’s continuity, the company contends, between South America’s Guiana Shield and the Birimian Shield of gold-rich countries like Guinea, the Ivory Coast, Burkina Faso and Ghana. Thanks to that geology, Columbus has boosted its inferred resource by 184% to 5.37 million gold ounces.

As announced on February 5, the project’s Montagne d’Or resource update uses a low cutoff of 0.3 grams per tonne for a deposit starting at surface and reaching an average vertical depth of 247 metres. The company provided additional numbers for higher cutoff grades:

  • with a 0.3 g/t cutoff, 117.1 million tonnes averaging 1.43 g/t for 5.37 million ounces
  • with a 0.4 g/t cutoff, 111.2 million tonnes averaging 1.48 g/t for 5.3 million ounces
  • with a 0.5 g/t cutoff, 101.9 million tonnes averaging 1.58 g/t for 5.17 million ounces
  • with a 0.7 g/t cutoff, 81.7 million tonnes averaging 1.82 g/t for 4.78 million ounces
  • with a 1 g/t cutoff, 58.1 million tonnes averaging 2.22 g/t for 4.15 million ounces.
A rainbow seen from Evolving Gold’s Carlin project adds a storybook touch to geological exploration

A rainbow seen from Evolving Gold’s Carlin project
adds a storybook touch to mineral exploration.

The update uses a 16 g/t topcut as compared to the previous 1.89-million-ounce resource, which used a 30 g/t topcut and 0.4 g/t cutoff.

In a statement accompanying the announcement, Columbus chairman/CEO Robert Giustra said modelling “has also identified gaps within the deposit envelope where additional drilling has the potential to add ounces and where tighter drilling may upgrade some or all of the inferred resources to the indicated category. Additional expansion potential is also suggested by untested geochemical anomalies extending more than three kilometres along strike, by incompletely tested parallel zones of gold mineralization, and at depth.”

The 149-square-kilometre Paul Isnard project includes a 65-person camp with airstrip on a forest road connecting to a highway 115 kilometres from the port of St. Laurent.

Columbus shares opened February 5 at $0.355, seven cents above the previous close, and hit $0.425 before settling on a $0.365 close.

Another resource update, announced February 4, comes from Michigan’s Back Forty project, a 49/51 joint venture of Aquila Resources TSX:AQA and Hudbay Minerals TSX:HBM. The global resource shows:

  • measured and indicated resources of 987,236 gold ounces, 11.91 million silver ounces, 110.43 million copper pounds, 74.3 million lead pounds and 1.02 billion zinc pounds
  • an inferred resource of 155,885 gold ounces, 1.99 million silver ounces, 18.65 million copper pounds, 17.21 million lead pounds and 113.33 million zinc pounds.

The estimate provides separate numbers for open pit and underground resources. The open pit estimate shows:

  • measured and indicated resources of 640,663 gold ounces, 6.96 million silver ounces, 72.27 million copper pounds, 36.22 million lead pounds and 525.54 million zinc pounds.

The underground estimate shows:

  • measured and indicated resources of 346,572 gold ounces, 4.95 million silver ounces, 38.16 million copper pounds, 38.07 million lead pounds and 496.13 million zinc pounds

  • an inferred resource of 142,351 gold ounces, 1.82 million silver ounces, 18.02 million copper pounds, 15.9 million lead pounds and 103.7 million zinc pounds.

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Aquila reports Wisconsin Gold Assays including 1.62 g/t over 18m

May 8th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningAquila Resources Inc TSX:AQA announced assays from its Reef Gold Project in Marathon County, Wisconsin. Results include

1.2 g/t gold over 15.2 metres
1.76 g/t gold over 15.5 metres
0.66 g/t gold, 4.81 g/t silver and 0.26% copper over 6.9 metres
2.02 g/t gold, 3.19 g/t silver and 0.18% copper over 4.3 metres
0.99 g/t gold and 0.18% copper over 42.2 metres
(including 1.62 g/t gold and 0.23% copper over 18.2 metres)

President/CEO Tom Quigley said, “We are quite pleased with the progress being made at Reef. We continue to build on the historic drilling with broad, near-surface zones of gold and copper mineralization. The latest round of drilling succeeded in expanding 2010 results and outlined the shallow up-dip extension of historic high-grade zones, building the framework for a potential open-pit resource.”

View Company Profile

Contact:
Thomas O. Quigley
President/CEO
906.352.4024

or Robin Dunbar
CFO
416.203.1404

by Ted Niles

Aquila reports Wisconsin Gold Assays up to 3.23 g/t over 14.5m

January 27th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningAquila Resources Inc TSX:AQA announced assay results from its Reef gold project in Marathon County, Wisconsin. Highlights include

8.43 g/t gold over 2.1 metres
2.53 g/t over 9.9 metres (including 5.07 g/t over 3.9 metres)
3.23 g/t over 14.5 metres (including 13.05 g/t over 3.5 metres)

President/CEO Thomas Quigley commented, “The focus at Reef for 2012 is to work towards establishing a significant open-pit gold resource. Building on the positive results reported in September as well as from historical drilling by Noranda, we continue to be encouraged by the potential at Reef, which is becoming a significant component of our strategy to generate gold resources in the Great Lakes region.”

View Company Profile

Contact:
Thomas Quigley
President/CEO
906.352.4024

or Robin Dunbar
CFO
416.203.1404

by Ted Niles

Aquila reports Wisconsin Reef gold assays including 14.41 g/t over 14.8m

September 29th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAquila Resources Inc TSX:AQA announced results from its Reef gold project in Marathon County, Wisconsin. Assays include

8.4 g/t gold over 3.2 metres
0.95 g/t over 11.9 metres
2.96 g/t over 3.1 metres
4.62 g/t over 7 metres
1.08 g/t over 6 metres
1.07 g/t over 12.5 metres
1.08 g/t over 5.6 metres
1.7 g/t over 10.5 metres
5.61 g/t over 6.4 metres
14.41 g/t over 14.8 metres (including 21.28 g/t over 9.3 metres)

President/CEO Tom Quigley stated, “We are very pleased with the progress being made at Reef and will continue drilling to extend and define the mineralized structure. The strong intercept from R11-11 shows the potential for new, previously unidentified zones southwest of the known resource.”

View Company Profile

Contact:
Thomas O. Quigley
President/CEO
906.352.4024

or Robin Dunbar
CFO
416.203.1404

by Ted Niles