Saturday 18th August 2018

Resource Clips


Posts tagged ‘zinc’

Saville Resources discovers new zinc-silver-nickel zone at surface in Quebec

August 8th, 2018

by Greg Klein | August 8, 2018

A property with limited exploration but encouraging geophysics shows further promise following a recent field program. Of eight surface samples collected by Saville Resources TSXV:SRE on its 3,370-hectare Covette project in Quebec’s James Bay region, one returned 1.2% zinc and 68.7 g/t silver, while three others assayed between 0.13% and 0.19% nickel.

Saville Resources discovers new zinc-silver-nickel zone at surface in Quebec

Saville Resources now plans trenching and channel
sampling to follow Covette’s grab sample assays.

Sampling took place along a visible strike of about 200 metres directly above an area of high conductivity found by a 2016 VTEM program that spotted several EM conductors coinciding with strong magnetic anomalies.

Underlying the region is a greenstone belt “comprised of various mafic to ultramafic rock units considered prospective for base and precious metals (nickel-copper-cobalt-platinum group elements-gold-silver), as well as pegmatite-hosted rare metals (lithium-tantalum),” Saville reported. “Komatiites have also been described in the region with such rock types known to host significant nickel-copper massive sulphide deposits at other localities globally, adding further to the prospective nature of the region.”

A sampling program in 2017 brought 0.18% nickel, 0.09% copper and 87 ppm cobalt. One historic, non-43-101 grab sample returned 4.7% molybdenum, 0.73% bismuth, 0.09% lead and 6 g/t silver. Another historic sample showed 1.2 g/t silver and 0.18% copper.

Further plans include follow-up trenching and channel sampling. Saville filed a 43-101 technical report on the property and closed its 100% acquisition in June.

Covette sits about 190 kilometres east of the town of Radisson and 10 kilometres north of the all-weather Trans-Taiga road and the adjacent hydro-electricity transmission line.

In another northern Quebec project, Saville has a 43-101 technical report underway for the Miranna claims situated on the Eldor property that hosts Commerce Resources’ (TSXV:CCE) advanced-stage Ashram rare earths deposit. Saville would acquire a 75% earn-in subject to exchange approval. In April the companies released niobium-tantalum boulder sample grades as high as 4.3% Nb2O5 and 700 ppm Ta2O5.

Last month Saville offered two private placements totalling up to $2 million.

Read more about Saville Resources.

Emerita Resources finishes drilling, plans Brazil zinc resource estimate in two weeks

July 26th, 2018

by Greg Klein | July 26, 2018

With its initial drill program wrapped up on time and on budget, Emerita Resources TSXV:EMO expects to release a resource estimate for its Salobro zinc project in eastern Brazil within two weeks. The campaign totalled 22 holes for 3,676 metres. Thirteen holes were intended to expand the historic resource and four others twinned historic holes, while five large-diameter holes collected material for metallurgical tests.

Some standout assays from the batch released July 26 include:

Emerita Resources finishes drilling, plans Brazil zinc resource estimate in two weeks

Emerita Resources’ drill program expanded Salobro’s
mineralization without exceeding the previous depth.

Hole 012

  • 11.19% zinc and 1.26% lead over 2.8 metres, starting at 111.65 metres in downhole depth

Hole 013

  • 11.62% zinc and 0.4% lead over 1.71 metres, starting at 102.97 metres

Hole 016

  • 3.65% zinc and 0.2% lead over 8.46 metres, starting at 119 metres

  • 7.71% zinc and 0.99% lead over 3.43 metres, starting at 141.1 metres

The company interprets widths to be close to true widths.

The overall program succeeded in expanding mineralization up dip and along strike, with the historic deposit remaining open at depth, Emerita stated. The results also improve continuity, while geophysical analysis shows potential mineralization plunging to the west.

An historic, non-43-101 estimate compiled by Vale NYSE:VALE calculated 8.3 million tonnes averaging 7.12% zinc-equivalent at a cutoff of 3.5% zinc-lead.

Adding mineralization that does not require increasing depth should have a positive impact on the PEA results.—David Gower,
chairperson and incoming CEO
of Emerita Resources

“We have increased the limits of the near-surface mineralization, which was a key objective of the program,” pointed out chairperson David Gower. “The NI 43-101 mineral resource estimate that is being prepared will be the basis for the planned preliminary economic assessment and adding mineralization that does not require increasing depth should have a positive impact on the PEA results.”

Effective August 1, Gower and current CEO Michael Timmins swap positions, with Gower becoming CEO and Timmins chairing the board.

Also emphasizing the shallow mineralization, project manager Carlos Cravo added: “The relogging of the historical drilling combined with the new data has resulted in an improved understanding of the deposit morphology that will improve drill targeting and should benefit any future mine plan should the deposit be put into production.”

Emerita holds a 75% share of the 1,210-hectare property, with the remainder held by IMS Engenharia Mineral Ltda. Regional infrastructure includes paved roads, rail, power and water.

In northern Spain’s Reocin mining district, Emerita takes part in a 50/50 joint venture on the Plaza Norte zinc-lead project. The JV has drill permitting underway to update historic work.

Emerita also announced a private placement offered up to $3 million, with proceeds intended for Salobro. The company closed an oversubscribed private placement of $4.24 million last December.

Read more about Emerita Resources.

Some Sprott takeaways

July 20th, 2018

Among them, Rick Rule foresees “the absolute heyday of prospect generators”

by Greg Klein

Miners have suddenly become “lean and mean” but not in a good way, according to Rick Rule. Twenty years of under-investment, an over-correction to a previous binge of M&A “insanity,” have left companies with declining resources. “This can’t continue,” the career contrarian contended. “Every day you mine, you shrink.” But the people who build and run mines prefer to outsource exploration. As a result, he says, “we are coming into the absolute heyday of prospect generators.”

Rick Rule foresees “the absolute heyday of prospect generators”

Rule presented his remarks at the Sprott Natural Resource Symposium, held in Vancouver this year from July 17 to 20 for an audience of gold bugs and resource investors. The two strategies can often be employed by the same individuals, showing a stark contrast between hedging against uncertainty and searching for opportunity. And opportunities are there to be had, Rule maintained. While a number of key commodities have gained in price, equities remain low, creating a more attractive ratio of price to value.

Looking at gold discoveries, Brent Cook sees a decline since 1980, with yearly mine production now about three times the annual ounces found in the ground. The pipeline of up-and-coming copper mines currently has the fewest projects of this century. Zinc discoveries peaked in 2016, then fell steeply. With majors showing heightened interest in explorers, he said, “this is a fantastic time to invest in juniors—but be careful.”

It’s very hard to know where the bottom of the market is until you come out of it.—Sean Roosen

Also emphasizing the declining success rate of exploration, Osisko Gold Royalties CEO Sean Roosen agreed that peak gold has arrived. That’s manifested not only in the relative lack of discoveries but the shortened average mine life of current operations. As for the state of equities, “it’s very hard to know where the bottom of the market is until you come out of it.”

Both sides of the gold bug/resource investor dichotomy found support in a slogan displayed by Byron King: “If you can’t save the world, go find some gold.” And from his perspective saving the world, the Western parts anyway, seems beyond hope. An editor with Agora Financial and Jim Rickards’ Gold Speculator, he focused largely on the U.S., which he said faces domestic conditions and foreign rivalry that put all aspects of American power at risk. The country barely resembles its post-WWII self when “we had the money, we had the gold and we had the friggin’ bomb.”

The U.S. and its allies have since squandered their prominence in banking, currencies, capital markets, manufacturing, technology, military prowess and space travel.

We have lost academia to a different form of thought.—Byron King

Where the West outperforms others, maybe, is in the flakiness of its institutions. Canadian and American universities lead the way: “We have lost academia to a different form of thought.”

In a momentous development that policymakers deny, he said, Russia has surpassed the U.S. in the aerospace and high-tech weapons industries. “Incredibly stupid people in Washington D.C.” believe against all evidence “that we can win a war with Russia.”

Mercifully, that kind of war might not happen. But another kind would show no mercy. Relaying Rickards’ ideas, King said real wars have become too expensive and dangerous to fight. So major powers instead sabotage their enemies’ currencies. As China and Russia continue to accumulate gold, the two could team up to defeat the West.

References to stupidity in high office recurred during the conference. Rule reminded the audience of Justin Trudeau’s statement that “the budget will balance itself” and Barack Obama’s notion that U.S. debt doesn’t matter because Americans owe the money to themselves.

Trey Reik of Sprott USA pegged that country’s federal debt at $20 trillion and U.S. total debt at $68 trillion. The country needs another $2.8 trillion in debt just to service the current amount, he added. With such unsustainable levels, he sees a tsunami of defaults coming.

One of the reasons I own gold is the future is much too interesting to be predictable.—James Grant

When the consequences of debt and the state of the economy become known, a gold bull market will return, argued James Grant. The editor of Grant’s Interest Rate Observer and Ron Paul’s choice to chair the Fed called interest rates “the most important aspect of capitalism…. Try to imagine a world without them. We do live in this world.” Today’s negative sovereign debt yields are unprecedented in history, he stated.

In a twist on the Chinese curse “may you live in interesting times,” Grant said: “One of the reasons I own gold is the future is much too interesting to be predictable.”

Throughout the conference speakers agreed, disagreed and overlapped in their perspectives. But no doubt everyone concurred with an insight elegantly expressed by Eric Fry of the Oxford Club: “It’s better to have more money than less money.”

The Sprott Natural Resource Symposium returns to Vancouver in July 2019.

Belmont Resources teams up with MGX Minerals to resume Nevada lithium drilling

July 13th, 2018

by Greg Klein | July 13, 2018

With an option agreement now in place, Belmont Resources TSXV:BEA gains a new partner and new money for the Kibby Basin lithium property, 65 kilometres north of Nevada’s Clayton Valley. The deal allows MGX Minerals CSE:XMG to earn an initial 25% interest in the 2,760-hectare property by spending up to $300,000. Work would include a deep test hole on a geophysical anomaly found earlier this year. Should that program meet success, MGX may increase its stake to 50% with up to $300,000 in further expenditures and drilling a second deep test hole. The company would then become operator of a 50/50 joint venture.

Belmont Resources teams up with MGX Minerals to resume Nevada lithium drilling

Ready to get boots on the ground soon, the Kibby Basin
crew will test a geophysical anomaly found earlier this year.

An initial drill program last year consisted of two holes totalling 624 metres. Core samples graded between 70 ppm and 200 ppm Li2O, with 13 of 25 samples exceeding 100 ppm. This year’s program of deep-sensing magnetotelluric geophysics identified a conductive zone that starts at about 500 metres in depth.

Should the JV come into fruition, other potential duties for MGX could include additional exploration, operating a test well, and installing and operating a pilot plant. MGX’s wide range of assets includes a proprietary process to recover lithium, magnesium and other minerals from a variety of brines. The JV would gain access to the process and would also market any lithium or other commodities potentially produced.

“This agreement puts Belmont on secure footing with regard to funding the next stage of evaluation of the Kibby property and, at the same time, enables us to get a significant leg-up on lithium production by partnering with one of the leaders in extraction technology,” commented Belmont CEO James Place.

MGX will also invest $200,000 in a Belmont private placement. In April the latter company closed the final tranche of a private placement totalling $198,000.

Belmont’s portfolio also includes the Mid-Corner/Johnson Croft property in New Brunswick, where historic, non-43-101 sampling suggests zinc, copper and cobalt potential. Additionally the company shares a 50/50 interest with International Montoro Resources TSXV:IMT in two Saskatchewan uranium properties.

Read Isabel Belger’s interview with Belmont CFO/director Gary Musil.

Infographic: A new bull market in base metals?

July 11th, 2018

by Nicholas LePan | posted with permission of Visual Capitalist | July 11, 2018

Base metals are the most fundamental minerals produced for the modern economy and metals such as copper, zinc, nickel, lead and aluminum are the key components that support sustained economic growth.

During periods of economic expansion, these are the first materials to support a bustling economy, reducing inventory at metal warehouses and eventually their source, mines.

A base metals boom?

This infographic comes to us from Tartisan Nickel CSE:TN and it takes a look at the surging demand for base metals for use in renewable energy and EVs, and whether this could translate into a sustained bull market for base metals.

The base metals boom: Start of a new bull market?

 

Over the last three years, prices of base metals have risen on the back of a growing economy and the anticipation of usage in new technologies such as lithium-ion batteries, green energy and electric vehicles:

Cobalt: +232%
Zinc: +64%
Nickel: +59%
Copper: +45%
Lead: +34%
Tin: +36%
Aluminum: +42%

As goes the success and development of nations, so goes the production and consumption of base metals.

Why higher prices?

Development outside of the Western world has been the main driver of the base metals boom and it will likely continue to push prices higher in the future.

China has been the primary consumer of metals due to the country’s rapid economic expansion—and with recent efforts to improve environmental standards, the country is simultaneously eliminating supplies of low-quality and environmentally toxic metal production. India and Africa will also be emerging sources of base metal demand for the coming decades.

But this is not solely a story of developing nations, as there are some key developments that will include the developed world in the next wave of demand for base metals.

New sources of demand

Future demand for base metals will be driven by the onset of a more connected and sustainable world through the adoption of electronic devices and vehicles. This will require a turnover of established infrastructure and the obsolescence of traditional sources of energy, placing pressure on current sources of base metals.

The transformation will be global and will test the limits of current mineral supply.

Renewable energy technology

The power grids around the world will adapt to include renewable sources such as wind, solar and other technologies. According to the World Energy Outlook (IEA 2017), it is expected that between 2017 and 2040, a total of 160 GW of global power net additions will come from renewables each year.

Renewables will capture two-thirds of global investment in power plants to 2040 as they become, for many countries, the cheapest source of new power generation. Renewables rely heavily on base metals for their construction and would not exist without them.

Electric vehicles

Gasoline cars will be fossils. According to the International Energy Agency, the number of electric vehicles on the road around the world will hit 125 million by 2030. By this time, China will account for 39% of the global EV market.

Dwindling supply

Currently, warehouse levels in the London Metals Exchange are sitting at five-year lows, with tin leading the pack with a decline of 400%.

According to the Commodity Markets Outlook (World Bank, April 2018), supply could be curtailed by slower ramp-up of new capacity, tighter environmental constraints, sanctions against commodity producers and rising costs. If new supply does not come into the market, this could also drive prices for base metals higher.

New supply?

There is only one source to replenish supply and fulfill future demand, and that is with mining.

New mines need to be discovered, developed and come online to meet demand. In the meantime, those that invest in base metals could see scarcity drive prices up as the economy moves towards its electric future on a more populated planet.

An extended base metals boom may very well be on the horizon.

Posted with permission of Visual Capitalist.

Update: Belmont Resources permitted for July drilling on Nevada lithium property

June 20th, 2018

by Greg Klein | Updated June 20, 2018

With permits now in hand, Belmont Resources TSXV:BEA expects to activate a rig on its Kibby Basin lithium project next month. Once completed, the boreholes may be converted to exploration wells to test for lithium brine aquifers.

Located 65 kilometres north of Nevada’s Clayton Valley, the 2,760-hectare property underwent deep-sensing magnetotelluric geophysics earlier this year, finding a conductive zone that starts at about 500 metres in depth. The program followed last year’s initial drill campaign that sunk two holes totalling 624 metres. Core samples graded between 70 ppm and 200 ppm Li2O, with 13 of 25 samples surpassing 100 ppm.

Preparations move Belmont Resources toward Nevada lithium drilling

This year’s magnetotelluric geophysical program helped identify
drill targets for Belmont Resources’ Kibby Basin lithium project.

The company has described the upcoming program as “work of a significant scope” that includes water well installation and monitoring.

In May Belmont announced the appointment of Ian Graham to the company’s advisory board. A former principal geologist with De Beers’ South African division, he also spent 15 years with Rio Tinto NYSE:RIO where he took part in evaluation and pre-development projects including the Diavik diamond mine in the Northwest Territories and the Resolution copper deposit in Arizona. He also oversaw permitting for the Eagle nickel mine in Michigan and played a key role in the initial economic assessment for the Bunder diamond project in India. More recently Graham served as CEO of United Energy Corp, which held a Nevada lithium project.

Belmont also holds the Mid-Corner/Johnson Croft property in New Brunswick, where historic, non-43-101 sampling has shown zinc, copper and cobalt potential. In Saskatchewan the company shares a 50/50 interest with International Montoro Resources TSXV:IMT in the Crackingstone and Orbit Lake uranium properties.

Belmont closed the final tranche of a private placement totalling $198,000 in April.

Read Isabel Belger’s interview with Belmont CFO/director Gary Musil.

Pistol Bay Mining releases zinc-copper assays from Ontario, prepares for new drilling

June 13th, 2018

by Greg Klein | June 13, 2018

As a long-overdue modern exploration program continues on northwestern Ontario’s Confederation Lake, Pistol Bay Mining TSXV:PST released assays for an initial three-hole 1,555-metre program on the property’s Arrow zone. The results “confirm the consistent nature of mineralization in the Arrow zone and give us more confidence in the existing mineral resource estimate,” noted president/CEO Charles Desjardins. The assays show:

Hole GL18-01

  • 0.73% copper, 2.22% zinc, 12 g/t silver, 0.307 g/t gold and 0.03% lead for 4.34% zinc-equivalent over 10.9 metres, starting at 432.7 metres in downhole depth
  • (including 0.69% copper, 4.49% zinc, 22.2 g/t silver, 0.217 g/t gold and 0.1% lead for 6.65% zinc-equivalent over 2.9 metres)
  • (and including 1.16% copper, 1.48% zinc, 12.8 g/t silver, 0.64 g/t gold and 0.01% lead for 4.91% zinc-equivalent over 3 metres)
Pistol Bay Mining releases zinc-copper assays from Ontario, prepares for new drilling

Drilling will soon resume
at Confederation Lake’s
Fredart zone.

GL18-03

  • 0.13% copper, 1.13% zinc, 3.3 g/t silver, 0.044 g/t gold and 0.02% lead for 1.54% zinc-equivalent over 12.9 metres, starting at 563.1 metres
  • (including 0.2% copper, 1.93% zinc, 4.3 g/t silver, 0.083 g/t gold and 0.04% lead for 2.54% zinc-equivalent over 3.8 metres)
  • (which includes 0.11% copper, 2.69% zinc, 3.4 g/t silver, 0.04 g/t gold and 0.07% lead for 3.09% zinc-equivalent over 1.5 metres)
  • (and also includes 0.48% copper, 2.92% zinc, 8.5 g/t silver, 0.15 g/t gold and 0.05% lead for 4.28% zinc-equivalent over 1.3 metres)

True widths weren’t provided.

In early May the company released the program’s first hole, showing 5.15% zinc-equivalent over 12.85 metres.

Last year Pistol Bay filed a 43-101 resource for Arrow, with a base case 3% zinc-equivalent cutoff for an inferred category showing:

  • 2.1 million tonnes averaging 5.78% zinc, 0.72% copper,19.5 g/t silver and 0.6 g/t gold, for a zinc-equivalent grade of 8.42%

Contained amounts come to:

  • 274 million pounds zinc, 34.3 million pounds copper, 1.33 million ounces silver and 41,000 ounces gold

As the rig moves to the project’s Fredart copper-gold zone, the team keeps busy re-compiling all Arrow drill results and incorporating new surveys of collar locations and azimuths using differential GPS equipment, Pistol Bay stated.

Although Fredart underwent extensive drilling between 1965 and 1985, the zone lacks a 43-101 resource due to uncertainty about drill hole locations and the lack of previous core to confirm historic assays, the company added.

The drill campaign follows the 15,000-hectare property’s first survey by modern geophysics which, in another first for Confederation Lake, was conducted on a regional scale.

Read more about Pistol Bay Mining.

Streamers turn to cobalt as Vale extends Voisey’s Bay nickel operations

June 11th, 2018

by Greg Klein | June 11, 2018

It was a day of big moves for energy minerals as China bought into Ivanhoe, Vale lengthened Voisey’s and streaming companies went after the Labrador nickel mine’s cobalt.

On June 11 Robert Friedland announced CITIC Metal would pay $723 million for a 19.9% interest in Ivanhoe Mines TSX:IVN, surpassing the boss’ own 17% stake to make the Chinese state-owned company Ivanhoe’s largest single shareholder. Another $78 million might also materialize, should China’s Zijin Mining Group decide to exercise its anti-dilution rights to increase its current 9.9% piece of Ivanhoe.

Streamers turn to cobalt as Vale extends Voisey’s Bay nickel operations

At peak production, Voisey’s underground operations are expected to
ship about 45,000 tonnes of nickel concentrate annually to Vale’s
processing plant at Long Harbour, Newfoundland.

Proceeds would help develop the flagship Kamoa-Kakula copper-cobalt mine in the Democratic Republic of Congo and the Platreef platinum-palladium-nickel-copper-gold mine in South Africa, as well as upgrade the DRC’s historic Kipushi zinc-copper-silver-germanium mine. Ivanhoe and Zijin each hold a 39.6% share in the Kamoa-Kakula joint venture.

Even bigger news came from St. John’s, where Newfoundland and Labrador Premier Dwight Ball joined Vale NYSE:VALE brass to herald the company’s decision to extend Voisey’s Bay operations by building an underground mine.

The announcement marked the 16th anniversary of Vale’s original decision to put Voisey (a Friedland company discovery) into production. Mining began in 2005, producing about $15 billion worth of nickel, copper and cobalt so far. Open pit operations were expected to end by 2022. Although a 2013 decision to go ahead with underground development was confirmed in 2015, the commitment seemed uncertain as nickel prices fell. That changed dramatically over the last 12 months.

With construction beginning this summer, nearly $2 billion in new investment should have underground operations running by April 2021, adding at least 15 years to Voisey’s life. The company estimates 16,000 person-years of employment during five years of construction, followed by 1,700 jobs at the underground mine and Long Harbour processing plant, with 2,135 person-years in indirect and induced employment annually.

Nickel’s 75% price improvement over the last year must have prodded Vale’s decision. But streaming companies were quick to go after Voisey’s cobalt. In separate deals Wheaton Precious Metals TSX:WPM and Cobalt 27 Capital TSXV:KBLT have agreed to buy a total of 75% of the mine’s cobalt beginning in 2021, paying US$390 million and US$300 million respectively. They foresee an average 2.6 million pounds of cobalt per year for the first 10 years, with a life-of-mine average of 2.4 million pounds annually.

Both companies attribute cobalt’s attraction to clean energy demand and a decided lack of DRC-style jurisdictional risk. But Vale also emphasizes nickel’s promise as a battery metal. Last month spokesperson Robert Morris told Metal Bulletin that nickel demand for EVs could rise 10-fold by 2025, reaching 350,000 to 500,000 tonnes.

Total nickel demand currently sits at slightly more than two million tonnes, Morris said. New supply would call for price increases well above the record levels set this year, he added.

Emerita Resources steps out to cut 5.7% zinc over 8 metres in Brazil

June 7th, 2018

by Greg Klein | June 7, 2018

Three more holes from eastern Brazil’s Salobro zinc project have Emerita Resources TSXV:EMO encouraged about potential expansion to an historic, non-43-101 Vale NYSE:VALE estimate. The results follow the first two holes, released June 1, of a program that’s expected to sink 23 holes totalling about 3,500 metres. Seventeen holes have been finished so far.

Emerita Resources cuts 5.7% zinc over 8 metres in Brazil

DDH-007 stepped out 100 metres from an historic, non-43-101 interval of 6.09% zinc and 0.73% lead over 10.43 metres. The new intercept hit:

  • 5.7% zinc and 0.84% lead, for 6.54% zinc and lead, over 8 metres, starting at 239.5 metres in downhole depth
  • (including 8.82% zinc and 1.48% lead, for 10.3% zinc and lead, over 4 metres)

Two near-surface holes tested potential for a starter pit in an area where an historic, non-43-101 trench assay showed 1.35% zinc over 22 metres. The new assays show:

DDH-005

  • 4.59% zinc and 0.08% lead, for 4.67% zinc and lead, over 1.5 metres, starting at 65.82 metres

DDH-006A

  • 1.52% zinc and 0.01% lead, for 1.53% zinc and lead, over 3 metres, starting at 26 metres

True widths weren’t provided.

Scheduled for Q3 is a resource to update Vale’s now historic, non-43-101 estimate of 8.3 million tonnes averaging 7.12% zinc-equivalent, using a 3.5% zinc-lead cutoff. The campaign will also collect 400 kilograms of material for metallurgical tests.

Last week Emerita released the current program’s first two assays, showing 4.05% zinc and 1.24% lead over 9.62 metres, along with 5.15% zinc and 0.51% lead over 3.32 metres. The company also reported that new assays from Vale core showed consistency with historic results, easing the way to a 43-101 resource.

Emerita has a 75% stake in the 1,210-hectare property, with the remainder held by IMS Engenharia Mineral Ltda. The region’s infrastructure includes paved roads, rail, power and water.

Emerita also shares in a 50/50 joint venture on the Plaza Norte zinc-lead project in northern Spain’s Reocin mining district, where the company has drill permitting underway to update historic work.

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

Read more about Emerita Resources.

Drilling, re-sampling move Emerita Resources towards Q3 Brazilian zinc resource

June 1st, 2018

by Greg Klein | June 1, 2018

While a rig remains busy, new assays from old core show consistency with historic results, bringing Emerita Resources TSXV:EMO closer to a 43-101 resource on its Salobro zinc project in eastern Brazil.

Drilling, re-sampling move Emerita Resources towards Q3 Brazilian zinc resource

Emerita Resources has assays pending from
another 15 holes so far on its current drill campaign.

The company sent 1,184 duplicate core samples from historic Vale NYSE:VALE drilling to the lab, where 55 samples with intervals grading over 1% zinc were considered for statistical purposes.

Compared with Vale’s data, the new assays demonstrate that “the previous historic results are consistent, unbiased and meet the QA/QC requirements to support a mineral resource estimate to NI 43-101 standards,” Emerita stated.

The results provide “a powerful advantage for the project that saves the company considerable time, money and effort,” commented chairperson David Gower. “The project has an abundance of high-quality historic drilling data that allows us to expedite the program as we develop the Salobro project further.”

At a 3.5% zinc-lead cutoff, Vale’s historic, non-43-101 estimate showed 8.3 million tonnes averaging 7.12% zinc-equivalent. Hoping to expand those numbers in a 43-101 resource planned for Q3, Emerita has so far completed 17 holes totalling 2,740 metres of an anticipated 23-hole, 3,500-metre program. Last week the company released results from the campaign’s first two holes:

DDH-001

  • 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)

DDH-002

  • 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. The program will also extract 400 kilograms of material for metallurgical tests.

Emerita closed its 75% acquisition of the 1,210-hectare property last March, retaining the right to pick up the other 25%. Regional infrastructure features paved roads, rail, power and water.

In northern Spain’s Reocín mining district the company has drill permitting underway for Plaza Norte, a zinc-lead 50/50 joint venture that also features considerable historic work and regional infrastructure.

Emerita closed an oversubscribed $4.24-million private placement in December.

Read more about Emerita Resources.