Saturday 23rd September 2017

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Posts tagged ‘Zimtu Capital Corp (ZC)’

Green energy in Utah

August 18th, 2017

Darryl Jones sees distinctive advantages to Voltaic Minerals’ lithium brine project

by Isabel Belger

Isabel Belger

Isabel Belger

Isabel: I would like to introduce the president and CEO of Voltaic Minerals [TSXV:VLT], Darryl Jones. Hello Darryl, it is a pleasure to talk to you again. How are you?

Darryl: I am good, thanks for asking and having me.

Isabel: To get started, could you tell us a bit about your background?

Darryl: I started in investor relations, working for a multitude of junior mining companies. From there I worked my way in with my father, who was a stockbroker. He was in the business for about 28 years. I worked with him for five or six years at Raymond James and moved from there to PI. I was a broker for 12 years. I then moved on to work with an ex-client where I joined the board of Strikepoint Gold [TSXV:SKP] and from there I made my way to Zimtu Capital [TSXV:ZC]. And here we are, almost two years later.

Isabel: Your company is lithium-focused, but not hard rock deposits and not like the classic salars in South America. Where is your project? And what makes it special?

Darryl: We are in Utah roughly 20 kilometres west of a town called Moab. It is a brine project but it is a non-conventional brine. The Green Energy brine project is hosted in what are called clastic units of the Paradox Basin. It is about 6,000 feet [1,830 metres] deep in an old layered bed-type formation. Effectively it is a buried salar, like the South American salars, except much deeper and under immense pressure and very saturated from what we understand. I guess the three things that make it very interesting are that it is super-saturated with a full spectrum of minerals, it is under immense pressure which is phenomenal because we believe it should just flow out of the ground, and being subjected to tremendous pressure leads to a higher temperature as well. Temperature, pressure and saturation are all key factors for a brine project of this nature.

Isabel: What are your highlights on the project so far?

Darryl Jones sees distinctive advantages to Voltaic Minerals’ lithium brine project

Darryl: It is a historic project, where most of the work was done through oil and gas exploration in the ’60s, ’70s, all the way up to current date. We have been compiling existing well logs, existing data and working with some private well owners and oil and gas groups to get a better understanding of the zone we are working in. We have seen multiple wells out of this formation show significant brine flow. We understand that this horizon has the capability to be a very large resource. From that we expect to test it through an existing well. We are working towards our 5,000-gallon sample which will give us a very strong indication of size, I guess you could say, of the potential resource.

Isabel: When will you know that?

Darryl: We are working with a well owner right now to try to get access as soon as possible. We have got two paths going. We have got the project that we really want to get into, then we are also working on developing a process that will help us unlock the super-saturated brine. The closer we get to strong data that gives us the ability to say unlock the brine will push us to that decision to execute to get into the system. We are hoping this year.

Isabel: What are the plans for the rest of the year?

Darryl: In the next couple of weeks, we will have an agreement in place to re-enter that well and alongside that in the next couple of weeks we are hoping to have some really strong process results to show that we can economically extract what we need from it.

Isabel: Do you have already an idea when you could be producing lithium?

We have always had an aggressive timeline. We believe if we have access to this brine, we could then be six to nine months away from producing some small-scale samples, [provided] that we would have the process that can extract lithium from it.—Darryl Jones

Darryl: We have always had an aggressive timeline. We believe if we have access to this brine, we could then be six to nine months away from producing some small-scale samples, [provided] that we would have the process that can extract lithium from it. First, we want to get this initial set of results back in order to really direct the way we want to go with the sampling. In my opinion, we now have all the pieces in place to support our development timeline, once we get some initial feedback on the process and have access to the brine. That nine-months horizon is real.

Isabel: What makes it so difficult to access those wells?

Darryl: Most of the wellheads are either plugged and abandoned or they are owned and operating for oil and gas operations.

Isabel: Oh, so they are still producing oil and gas there?

Darryl: Yes, there is still a lot of oil production in Utah. Accessing a plugged and abandoned well is difficult on the environmental side. It is basically like drilling your own new well, which can be costly and you don’t know what you are going to get when you are re-entering an existing abandoned well. The other avenue would be re-entering a producing well, which is difficult because you might have to tell the oil and gas company to shut their production so that you can test for lithium. It is a matter of building relationships and being able to go down there to show what the potential value could be. I think we have done that. We have the right team and the right people in place so that we could have that within the next week.

Isabel: Talking about cost effectiveness—the price of lithium has been increasing over the past few years, right now about $9,000 per metric tonne. Do you have any idea presently for what price you will be able to produce lithium?

Darryl: From the start our goal was to work always towards a lowest production cost as possible. Most of the major lithium producers in South America are between $3,000 and $4,000 a ton, which is a great number. We are hoping to match those production costs. We enjoy some great efficiencies operating in Utah, which has very good infrastructure.

So that is where we would like to be, anywhere between $3,000 to $5,000 a ton. I think that will make us a very competitive player in the lithium space.

Isabel: What do you think is and will be the key to this new, ongoing demand for lithium for a junior exploration company like Voltaic Minerals?

Grade is usually one of the first things that people will look at. Something that is also important is the speed to market. The faster you can get to market, the more attention you are going to have. —Darryl Jones

Darryl: You want to have a project that has first and foremost the right grade. Grade is usually one of the first things that people will look at. Something that is also important is the speed to market. The faster you can get to market, the more attention you are going to have. In our opinion no one has broken anything open in North America. We believe the window is still open there for somebody to come up with a profitable solution. I think that is going to be the biggest thing. Anyone that comes to market quickly will have a lot of eyes on them and garner lots of attention.

Isabel: You are right and there is almost no lithium being produced in the U.S. right now.

Darryl: No there isn’t!

Isabel: You may have heard about the big Volkswagen diesel scandal. There is a huge discussion going on about the future of diesel technology, and that switching to electric cars is the solution for all our climate problems. But we tend to forget that many lithium projects would have an adverse impact to our planet as well.

In that respect, isn’t your project, with brine situated at a considerable depth and which comes to the surface under its own pressure, the best-case scenario?

Darryl: Yes, environmentally speaking it is great. We are searching for a straight brine zone, which would give us the opportunity to just effectively strip the lithium out, not change anything else associated with the water, not having any hydrocarbons and effectively put the water back into the ground. That would be the ultimate scenario. We feel we could be a very green company or have a green process which doesn’t hurt anything and greatly benefits this revolutionary battery market.

Isabel: How much of Voltaic Minerals does the management hold?

Darryl: About 15%.

Isabel: How much cash do you have right now?

Darryl: About $500,000.

Isabel: It was a pleasure to talk to you. Thank you for the insights.

Darryl: The same. Good talking to you Isabel. Thank you.

 

Darryl Jones sees distinctive advantages to Voltaic Minerals’ lithium brine project

Darryl Jones, president/CEO
of Voltaic Minerals

Bio

Mr. Jones was an investment adviser with PI Financial Corp Canada and Raymond James Ltd Canada and has 15-plus years of capital market experience and an established financial network. He was responsible for raising significant risk capital for growth companies in all sectors, with a particular focus on natural resources. He also serves as director of Strikepoint Gold Corp.

Fun facts

My hobbies: Snowboarding, playing hockey, golf, spending time with my two-year-old daughter
My favourite tradeshow: Mines and Money shows, PDAC
My favourite commodity: Lithium and gold
With this person I would like to have dinner: Timothy Ferriss
If I could have a superpower, it would be: Reading people’s minds
My role model: My father

Read more about Voltaic Minerals.

Neil McCallum of Dahrouge Geological Consulting looks at the closeology of Zimtu Capital’s 50%-held Munn Lake diamond project

July 31st, 2017

…Read more

Closeology helps Zimtu Capital close in on NWT diamonds

June 21st, 2017

by Greg Klein | June 21, 2017

A surprisingly neglected property in an especially prospective location gets some overdue attention as a crew mobilizes for the Northwest Territories’ Munn Lake diamond project. Held 50% each by Zimtu Capital TSXV:ZC and a staking partner, the property has ground geophysics and till sampling about to begin.

The property does have diamonds, as historic work shows. Non-43-101 results from a 581-kilogram sample on the Yuryi boulder field revealed 226 diamonds, 62 of them macro-diamonds. Non-43-101 results from a 42-kilogram sample on the Munn Lake kimberlite sill showed 14 diamonds, including two macros and 12 micro-diamonds.

There’s closeology and then there’s closeology, as Zimtu Capital closes in on NWT diamonds

Southern Slave kimberlites show an incomparably
higher success rate than those of the northern craton.

The Munn Lake sill is the source of one of five kimberlite indicator mineral trains. The other four have seen little follow-up work, leaving their sources unknown.

The current agenda calls for further till sampling and a tight magnetic survey, explains Neil McCallum of Dahrouge Geological Consulting, which will conduct the program. Using GPS that wasn’t available to the previous operator, he expects “more focused” results.

One of the distinctions that really intrigues McCallum is Munn Lake’s especially prospective location. The Slave Craton has three diamond mines in operation, two past producers and an advanced stage project. But chances of a kimberlite actually holding diamonds are much higher in the southern Slave, home to Munn Lake.

“There are some 250 or so known kimberlites in the northern Slave’s Lac de Gras field whereas the southern Slave has only about 16 that are known,” McCallum explains. “Of those 16, six have been mined, are currently producing or are in advanced stages.” He points to De Beers’ former Snap Lake operation, the high-grade Kelvin and Faraday kimberlites being advanced by Kennady Diamonds TSXV:KDI and three kimberlites going into Gahcho Kué, the De Beers/Mountain Province Diamonds TSX:MPV JV that officially opened last September as the world’s largest new diamond mine in 13 years.

That’s notwithstanding the Lac de Gras success stories in the north, home to the Rio Tinto NYSE:RIO/Dominion Diamond TSX:DDC Diavik JV and Dominion’s majority-held Ekati mine.

Kimberlites of the south Slave are much older (by nearly 500 million years) and much rarer than those of the north. But when they’re found, they’re much more likely to bear diamonds—and diamonds of economic grades, McCallum adds.

“The Munn Lake property is closer to the kimberlites of the southern Slave cluster and the Munn Lake kimberlite sill is similar in geometry to the others in the southern Slave. So with the proposed expansion of the Munn Lake kimberlite sill and the potential for several new kimberlites on the project, the Munn Lake property has very good odds for a high-grade discovery.”

Munn Lake also benefits from a winter road running through the 14,000-hectare property, connecting Gahcho Kué with Yellowknife.

McCallum expects the mag results to arrive about one week after the survey finishes, with the till samples taking about a month. “I’m really looking forward to see what comes out,” he says.

“I’d like to see some drilling on the project too. On the kimberlite that the past operators did intercept, I’m not sure they hit the best target.”

The ‘serially successful’

June 2nd, 2017

The International Metal Writers Conference hears Rick Rule dissect the traits of mining titans

by Greg Klein

The International Metal Writers Conference hears Rick Rule dissect the traits of mining titans

The International Metal Writers Conference hosted the world’s largest
gathering of investment newsletter writers. (Photo: www.VisionPhoto.ca)

 

“It’s all about the people.” That sentiment popped up repeatedly this week at the International Metal Writers Conference, where several speakers related their most important consideration in evaluating stocks. Maybe no one expressed it more emphatically than Zimtu Capital TSXV:ZC president Dave Hodge, whose unamplified but booming voice overwhelmed the event’s microphone-dependent speakers, even seeming to threaten the Vancouver Convention Centre with seismic damage.

“No matter what the company is, no matter what the commodity is, what makes stocks successful is the management!” he roared. “What really determines a winner in this high-risk game is the management!”

Good people, he argued, will overcome bad projects. And it wasn’t just his volume that drove the point home. As newsletter writer David Morgan noted, “I think everyone from Rick Rule on down will tell you it’s all about the people.”

The International Metal Writers Conference hears Rick Rule dissect the traits of mining titans

Rick Rule, Frank Holmes and Jayant Bhandari were
among some 50 speakers who shared their insights.

Rule expanded on that the following morning when he said, “The most important determinant for success is not properties, not assets, but rather people.” But what kind of people? Successful ones obviously, especially those Rule calls the “serially successful.” So what do they have in common?

His association with several titans of the industry led him to ponder their similarities. Some of the names he mentioned include Seymour Schulich, Aldof, Lukas and Ian Lundin, Robert Friedland, Ross Beaty, Bob Quartermain and Clive Johnson.

“This isn’t to say they haven’t had failures on occasion,” Rule acknowledged. “Robert Friedland’s first effort, Galactic, was a galactic failure.”

But there’s a compound benefit to success. Those who achieve it “attract better people,” Rule said. “The people who are serially successful attract other serially successful people to them. And they attract better projects…. Similarly with the quest for capital.”

Among their traits, they’re “pathologically curious…. I think this makes them successful because they’re not willing to accept present dogma. I think because they’re curious they approach a problem from a whole bunch of points of view. It’s certainly true that many of the properties that become successful have had three or four approaches before the approach that made them successful.”

Not surprisingly, success-mongers turn out to be “really, really hard-working and focused.” And they’re “very smart,” although intelligence alone hardly guarantees success, he warned.

Additionally, the winners prove to be “amazingly tenacious. They carry a project in good times through bad times, carry it through the bad times back into good times.” Rule says they’ll commonly remark, “Yup, on that deal I worked seven years to be an overnight success.”

And stereotypes of domineering fat cats notwithstanding, “another thing I found out is these people turn out to be extremely nice,” Rule maintained. “They are, in my experience, genuinely happy that they delivered value to their employees and shareholders…. They want to build a mine. They want to employ local people. They want their shareholders to do well.”

The International Metal Writers Conference hears Rick Rule dissect the traits of mining titans

There’s more to life than money,
insisted Zimtu Capital’s Dave Hodge.

As for their own stock, “They buy once and they sell once.” They might sell options from time to time, but they don’t cash out until their involvement in a project finishes, Rule said.

“Sadly,” the 60-something concluded, “they’re all my age…. The challenge is to find the next generation of the serially successful people.”

Echoing those comments, another well-connected industry insider believes the replacements might already be making their presence known. Mining headhunter Andrew Pollard of the Mining Recruitment Group presented six such prospects, three each on two panel discussions. One showcased a 35-and-under power trio while the other presented a threesome slightly older and commensurately closer to serial success status.

But isn’t this definition of success overly materialist? Surely life has loftier goals than ardent ambition, the lust for lucre, the mania for moolah. That was another point stressed most emphatically by Zimtu’s Dave Hodge.

“It’s not about the money!” he thundered to the four corners of the convention hall. “It’s about the bragging rights!”

Cardiff Energy turns green with Quebec lithium project

June 22nd, 2016

by Greg Klein | June 22, 2016

Believing there’s more lithium to be found in Quebec’s James Bay region, Cardiff Energy TSXV:CRS announced its Eastmain River acquisition on June 22. Vended by Zimtu Capital TSXV:ZC, the 1,160-hectare property sits in the lower Eastmain Greenstone Belt, where “outcrop exposure is extraordinary in the area with pegmatites crosscutting at surface,” the company stated.

Cardiff Energy turns green with Quebec lithium project

“The Eastmain River area consists of a four-kilometre zone of irregular crosscutting dykes of spodumene pegmatites, up to 60 metres wide and over 100 metres long,” Cardiff added. Historic, non-43-101 documentation reports 277 samples averaging 1.7% Li2O. The property has yet to be drilled.

Eight kilometres south of Cardiff’s project, ASX-listed Galaxy Resources’ James Bay project has an indicated resource of 11.75 million tonnes averaging 1.3% and an inferred category of 10.47 million tonnes averaging 1.2% Li2O in a surface deposit with open pit potential.

The Eastmain River project sits 2.5 kilometres from a highway, with a gas station, accommodations and helicopter support eight kilometres southwest, as well as an airport 30 kilometres away.

Cardiff also announced suspension of work on its 70%-held Clayton #1H oil well in Texas pending additional funding or JV interest.

Read interviews with Chris Berry and Jon Hykawy discussing energy metals.

Exploring opportunity

June 17th, 2016

A capacity crowd attends the first annual Vancouver Commodity Forum

by Greg Klein
Next Page 1 | 2

A capacity crowd attends the first annual Vancouver Commodity Forum

 

“There’s excitement in the air,” said Cambridge House International founder Joe Martin. That’s the mood he senses as junior explorers emerge from the downturn. And certainly optimism was evident on June 14 as more than 450 people converged on the Vancouver Commodity Forum for an afternoon of expert talks amid a showcase of two dozen companies. Keynote speakers included Martin, Chris Berry of the Disruptive Discoveries Journal, Jon Hykawy of Stormcrow Capital, John Kaiser of Kaiser Research Online and Stephan Bogner of Rockstone Research.

A capacity crowd attends the first annual Vancouver Commodity Forum

Lithium, not surprisingly, stood out as a commodity of interest. While cautioning against over-enthusiasm for the exploration rush, Berry and Hykawy each affirmed the need for juniors to find new sources of the metal. Cobalt and scandium featured prominently too, as did other commodities including what Kaiser called “the weird metals”—lesser known stuff that’s vital to our lives but threatened with security of supply.

Kaiser also noted he was addressing a crowd larger than his last PDAC audience, another indication that “we’ve turned the corner.”

Attendees also met and mingled with company reps. Potential investors learned about a wide gamut of projects aspiring to meet a growing demand for necessities, conveniences and luxuries.

Presented by Zimtu Capital TSXV:ZC, the forum’s success will make it an annual event, said company president Dave Hodge. Berry emceed the conference, holding the unenviable task of “making sure Dave stays well-behaved.”

Read interviews with keynote speakers:

Meet the companies

Most companies were core holdings of Zimtu, a prospect generator that connects explorers with properties and also shares management, technical and financing expertise. Zimtu offers investors participation in a range of commodities and companies, including some at the pre-IPO stage.

After sampling high-grade lithium on its Hidden Lake project in the Northwest Territories earlier this month, 92 Resources TSXV:NTY plans to return in mid-July for a program of mapping, exposing spodumene-bearing pegmatite dykes, and channel sampling. The company closed the final tranche of a private placement totalling $318,836 in April. Hidden Lake’s located near Highway 4, about 40 kilometres from Yellowknife and within the Yellowknife Pegmatite Belt.

With one of the Athabasca Basin’s largest and most prospective exploration portfolios, ALX Uranium TSXV:AL has a number of projects competing for flagship status. Among them is Hook-Carter, which covers extensions of three known conductive trends, one of them hosting the sensational discoveries of Fission Uranium TSX:FCU and NexGen Energy TSXV:NXE. ALX’s strategic partnership with Holystone Energy allows that company to invest up to $750,000 in ALX and retain the right to maintain its ownership level for three years. ALX closed a private placement first tranche of $255,000 last month, amid this year’s busy news flow from a number of the company’s active projects.

A capacity crowd attends the first annual Vancouver Commodity Forum

Arctic Star Exploration TSXV:ADD boasts one of northern Canada’s largest 100%-held diamond exploration portfolios. Among the properties are the drill-ready Stein project in Nunavut and others in the Lac de Gras region that’s the world’s third-largest diamond producer by value. North Arrow Minerals TSXV:NAR holds an option to earn up to 55% of Arctic Star’s Redemption property.

Aurvista Gold TSXV:AVA considers its Douay property one of Quebec’s largest and last undeveloped gold projects. The Abitibi property has resources totalling 238,400 ounces of gold indicated and 2.75 million ounces inferred. Now, with $1.1 million raised last month, the company hopes to increase those numbers through a summer program including 4,000 metres of drilling. Douay’s 2014 PEA used a 5% discount rate to forecast a post-tax NPV of $16.6 million and a post-tax IRR of 40%.

Looking for lithium in Nevada, Belmont Resources TSXV:BEA now has a geophysics crew en route to its Kibby Basin property, which the company believes could potentially host lithium-bearing brines in a similar geological setting to the Clayton Valley, about 65 kilometres south. Results from the gravity survey will help identify targets for direct push drilling and sampling.

A mineral perhaps overlooked in the effort to supply green technologies, zeolite has several environmental applications. Canadian Zeolite TSXV:CNZ holds two projects in southern British Columbia, Sun Group and Bromley Creek, the latter an active quarrying operation.

With a high-grade, near-surface rare earths deposit hosted in minerals that have proven processing, Commerce Resources TSXV:CCE takes its Ashram project in Quebec towards pre-feasibility. The relatively straightforward mineralogy contributes to steady progress in metallurgical studies. Commerce also holds southeastern B.C.’s Blue River tantalum-niobium deposit, which reached PEA in 2011 and a resource update in 2013.

Permitted for construction following a 2014 PEA, Copper North Mining’s (TSXV:COL) Carmacks copper-gold-silver project now undergoes revised PEA studies. The agenda calls for improved economics by creating a new leach and development plan for the south-central Yukon property. In central B.C. the company holds the Thor exploration property, 20 kilometres south of the historic Kemess mine.

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Capacity crowd attends first annual Vancouver Commodity Forum

June 15th, 2016

This story has been expanded and moved here.

June 14 Vancouver Commodity Forum showcases explorers and expert speakers

May 11th, 2016
June 14 Vancouver Commodity Forum showcases explorers and expert speakers

Mineral explorers and expert analysts will meet and mingle
with attendees at the June 14 Vancouver Commodity Forum.

If you have your ear to the ground and eyes on the street you might notice a more positive mood in the market lately, suggesting a retreating bear or even an approaching bull. Whether that comes to pass remains to be seen. But one opportunity to better assess the situation happens on June 14 at the Vancouver Commodity Forum.

Presented by Zimtu Capital TSXV:ZC, the one-day event features expert speakers as well as a range of companies pursuing lithium, uranium, rare earths, gold, nickel, copper, diamonds, jade, scandium, zeolite, magnesium and potash, among other commodities.

Insight and analysis will come from keynote speakers including Chris Berry of the Disruptive Discoveries Journal, John Kaiser of Kaiser Research Online, Stephan Bogner of Rockstone Research and others to be announced.

The Vancouver Commodity Forum takes place June 14 at the downtown Hyatt Regency Hotel. Watch for further details about presenters, registration and additional speakers.

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.”

Umbral Energy gets Tule Valley lithium prospect from Zimtu Capital

April 26th, 2016

by Greg Klein | April 26, 2016

Umbral Energy CSE:UMB looks to Utah for lithium following an acquisition agreement with Zimtu Capital TSXV:ZC for the Tule Valley project. Tule Valley bears similarities to Nevada’s lithium-rich Clayton Valley “as they are both closed basin and have similar horst and graben structures,” according to Umbral’s April 26 announcement. “The Tule Valley project requires further exploration, including geophysics and drilling, to evaluate potential for a mass brine deposit.”

Umbral Energy gets Tule Valley lithium prospect from Zimtu Capital

The Tule Valley project lies about 190
kilometres southwest of Salt Lake City.

The deal calls for Umbral to pay Zimtu $10,000 and 1.5 million shares on signing, another $20,000 within two months, $30,000 within three months, and $100,000 and 1.5 million shares within a year. A 2% NSR applies, half of which Umbral may buy for $1 million.

“Lithium has gone from a steady, but relatively obscure commodity to being in extremely high demand this year,” said Umbral president Jag Bal. “For an example of this rising demand, one only needs to point to Tesla’s new battery Gigafactory, which will need 15,000 tons of lithium carbonate a year just to get started.”

At Tesla’s Model 3 premiere earlier this month, CEO Elon Musk pronounced the Gigafactory “already operational.” Benchmark Mineral Intelligence analyst Simon Moores estimates at least 12 lithium-ion battery plants are being planned, constructed or expanded to gigawatt-hour capacity by 2020.

Umbral has a three-stage program for the 1,940-hectare property under consideration, which could include soil and surface sampling along with groundwater analysis, a high-resolution gravity survey and data compilation to select drill targets.

Zimtu works with its prospecting partners to connect companies with projects and provide advisory services.

Read about supply-and-demand forecasts for lithium and other energy minerals.