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Posts tagged ‘Zimtu Capital Corp (ZC)’

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
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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

by Greg Klein

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.

Belmont Resources to buy Nevada lithium prospect from Zimtu Capital

March 30th, 2016

by Greg Klein | March 30, 2016

A purchase agreement with Zimtu Capital TSXV:ZC will have Belmont Resources TSXV:BEA looking for lithium in Nevada. Belmont plans to acquire the Kibby Basin property and anticipates a program of mapping and surface sampling during the current exploration season, the companies announced March 30.

Belmont Resources to buy Nevada lithium prospect from Zimtu Capital

Regional geophysical anomalies in the Kibby Basin area compare to those of the lithium-rich Clayton Valley,
Belmont stated.

Totalling about 1,036 hectares, the claims sit 65 kilometres north of Clayton Valley, home to North America’s only lithium producer, Albemarle Corp’s NYSE:ALB Silver Peak mine, and a busy area play. Previous research of the Kibby Basin “has indicated that proximal rhyolitic flows and tuffs surrounding the Basin could be a potential source for the possibility of saturated lithium brine in the Kibby Basis Playa,” Belmont stated. “In addition to this, the Kibby Playa is located within a geothermal cluster, at a Basin low setting.” Regional geophysical signatures show anomalies comparable to those of the Clayton Valley, the company added.

Current and projected demand from lithium-ion batteries for consumer electronics, electric vehicles and energy storage present a bullish case for lithium. In February Benchmark Mineral Intelligence reported a 47% increase in this year’s lithium carbonate prices over the 2015 average.

The Kibby Basin deal has Belmont giving Zimtu $5,000 on signing, $20,000 and 500,000 shares on TSXV approval and another 500,000 shares six months later. Zimtu retains a 1.5% NSR, half of which Belmont may buy for $1 million.

Belmont also announced a private placement of up to $350,000 for the Kibby Basin project and general working capital.

As part of its business model, Zimtu acts as a project generator to provide other companies with properties and advisory services.

Read more about demand for lithium and other energy minerals.

92 Resources pursues lithium with NWT property acquisition

March 1st, 2016

by Greg Klein | March 1, 2016

The search for energy minerals draws 92 Resources TSXV:NTY to the Northwest Territories with a purchase agreement announced March 1. The object of desire is a 100% interest in Hidden Lake, described as highly prospective for spodumene-bearing lithium pegmatites. The 1,100-hectare property sits about 40 kilometres northeast of Yellowknife, just off Highway 4.

92 Resources pursues lithium with NWT property acquisition

Electric vehicles present a bullish case for lithium-ion
batteries, but energy storage inspires even greater forecasts.

Previous work mapped and sampled the property’s LU#12 pegmatite over an exposure measuring about 10 metres by 300 metres. Historic, non-43-101 results for seven samples from surface trenches ranged between 1.37% and 3.01% lithium oxide. “The very high grades of lithium were attributed to observed concentrations of coarse-grained spodumene,” the company explained.

“Spodumene-bearing pegmatites continue to be an important supply of lithium despite the advent of low-cost production from lithium brine deposits in South America in the mid-1990s,” 92 Resources stated.

“As the demand for lithium is increasing, other pegmatite deposits around the world are gaining attention. In many lithium pegmatite districts, including the Yellowknife district, other rare and specialty metals have been recovered. Tin, beryllium, tantalum and niobium are often associated with spodumene pegmatite deposits.”

With a private placement of up to $300,000 on offer, the company hopes to get on the field as soon as weather allows. Initial work would consist of mapping and sampling the project’s known pegmatites to determine grade, mineralogy and surface dimensions.

The 100% interest would close on completing a series of payments to Zimtu Capital TSXV:ZC and two of its prospecting partners. The price consists of a $5,000 deposit, two million shares on regulatory approval, $50,000 within 30 days of approval, another $35,000 and two million shares a year later, $250,000 of exploration expenditures by September 30, 2016, and another $250,000 of spending by May 31, 2017.

A 2% NSR applies, of which 92 Resources may buy half for $2 million.

As massive expansion takes place in manufacturing facilities for batteries used in power tools, consumer electronics, electric vehicles and energy storage, lithium demand has attracted highly bullish forecasts. Read more.

Chris Berry ponders a non-Chinese rare earths supply chain

February 28th, 2016

by Greg Klein | February 28, 2016

In his latest Zimtu Research report, analyst Chris Berry considers the viability of a rare earths supply chain independent of the Middle Kingdom. China continues to mine about 90% of world supply, consume about 70% of world supply and dominate metallurgical expertise. But the risk of not developing supply and expertise outside China looms large, he argues.

China could end the current low-price, oversupply situation by cracking down on illegal mining and environmental destruction—or by simply flexing its geopolitical muscles. Moreover, security of supply remains a concern for Western countries: “The United States and her allies would like to make sure that the F-35 stays in the air when it’s really needed.”

Western attempts to find substitutes have had uneven results, Berry finds, and sometimes mean switching one REE for another. “Multiple industry sources have indicated that minimizing dysprosium in magnet feed, for example, means increasing the percentage of neodymium or praseodymium.”

With low prices prevailing and financing an ongoing challenge, mining costs and metallurgical realities take priority. A potentially successful approach would be to develop “a deposit that produced a mixed rather than separated REE concentrate and passed this on to the next piece of the supply chain. To be sure, margin would be forfeited as separated oxides command a premium, but the stark economic realities of the REE mining space dictate that a new business model be created.”

Berry’s eight-page report provides a clear, insightful look at this challenging imperative.

Download Building A Non-Chinese Rare Earth Supply Chain.

See more from Zimtu Research.

Prima Diamond looks to Utah for lithium

February 18th, 2016

by Greg Klein | February 18, 2016

One’s a luxury, the other’s a practicality that many consider necessary. Prima Diamond TSXV:PMD apparently wants both, by adding an energy minerals project to its gemstones prospects. To that end the company announced on February 18 an agreement to acquire the Green Energy lithium property in Utah.

Prima Diamond looks to Utah for lithium

Forecasts for consumer electronics, electric vehicles
and energy storage present a bullish case for lithium.

The project comes with an historic, non-43-101 resource of 15 million barrels of brine containing 96,000 tons of sodium, 158,000 tons of potassium (302,400 tons of potassium chloride), 5,750 tons of lithium (30,535 tons of lithium carbonate), 157,000 tons of calcium and 147,000 tons of magnesium (576,450 tons of magnesium chloride).

Prima has yet to verify the data, which the company isn’t treating as a current resource.

Approximately 20 oil exploration wells have been drilled on the 1,683-hectare property, five of which have analytical data for lithium, according to the announcement. Lithium occurs “in an over-saturated brine (40% minerals, 60% water) and was discovered during oil exploration when drill wells intercepted Bed #31 of the Paradox Formation.”

Bed #31 is around 1,683 metres deep, consisting of 9.15 metres of shale, anhydrite and dolomite, Prima stated. “The bed is not part of any oil reservoir. Engineering reports from the 1960s conclude that the brine reservoir is extensive [over 25 square kilometres] and is recharged from fresh inflows as indicated by well pressure measurements, drawdown tests and oxygen-deuterium isotopes.”

Prima intends to review well logs, undertake chemical analysis and reprocess seismic data focusing on mineral brine to evaluate reservoir potential prior to re-entry of shut-in wells.

Prima shareholders will vote in March on a proposed 1:5 share rollback. Subject to approvals, the company would acquire Green Energy by reimbursing Zimtu Capital TSXC:ZC $10,000 in acquisition costs and issue Mesa Exploration TSXV:MSA 1.5 million post-consolidation shares within five days of TSXV approval and another 1.5 million shares within the following year.

The company also proposes a private placement of up to 15 million post-consolidation units at $0.05 for up to $750,000. Each unit would consist of one share and one transferable warrant, with each warrant exercisable for $0.075 during the first year and $0.10 during the second year. Funds would go to Green Energy exploration and general administrative purposes.

The company also announced debt settlement agreements with creditors. Subject to TSXV approval, Prima would issue 15.82 million post-consolidation shares at a deemed price of $0.05 to settle $791,000.

With Tesla/Panasonic’s Gigafactory one of three lithium-ion battery megafactories expected in the coming years, along with expansions to existing plants, lithium figures prominently among the niche minerals required for consumer electronics, electric vehicles and energy storage. Read more.