Monday 23rd April 2018

Resource Clips


Posts tagged ‘zinc’

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

April 10th, 2018

by Greg Klein | April 10, 2018

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

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

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

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

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

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

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

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

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

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

Read more about Emerita Resources.

Belmont Resources readies drill targets, selective extraction for Nevada lithium

April 6th, 2018

by Greg Klein | April 6, 2018

Supported by a successful financing and encouraging geophysical and drill results, Belmont Resources TSXV:BEA prepares to advance its Kibby Basin lithium project on two fronts. The company now plans to sink up to five holes on the 2,760-hectare Nevada property while continuing lithium extraction discussions with other companies that have requested samples.

Belmont Resources readies drill targets, selective extraction for Nevada lithium

A Quantec Geoscience crew member sets induction
coil for this year’s Spartan Magnetotelluric survey.

The drill campaign would be Kibby Basin’s second, following two holes from last year. Core samples graded between 70 ppm and 200 ppm Li2O. Thirteen of 25 samples surpassed 100 ppm, “indicating that the sediments could be a potential source of lithium for the underlying aquifers,” the company stated.

Since then a magnetotelluric survey covered some 36 square kilometres, adding geophysical detail to a 2016 gravity survey and showing a conductive zone that starts about 500 metres in depth.

Backing the campaign will be fresh financing. The second tranche of private placements totalling $198,000 closed this month.

In New Brunswick last November, Belmont acquired the Mid-Corner/Johnson Croft property, where historic, non-43-101 sampling showed prospectivity for zinc, copper and cobalt. Along with International Montoro Resources TSXV:IMT, Belmont shares a 50/50 interest in two Saskatchewan uranium properties, Crackingstone and Orbit Lake.

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

Pistol Bay Mining begins drilling its expanded zinc-copper-polymetallic Ontario VMS project

March 22nd, 2018

by Greg Klein | March 22, 2018

With about 3,500 metres planned, Pistol Bay Mining TSXV:PST has drilling now underway at northwestern Ontario’s VMS-rich Confederation Lake greenstone belt. Three holes of about 500 metres each will supply material from the project’s Arrow zone for preliminary metallurgical tests. From there the rig shifts roughly eight kilometres west to the Fredart zone, aka the Copperlode A zone.

Pistol Bay Mining resumes drilling at its expanded zinc-polymetallic Ontario VMS project

Last year the company released a 43-101 resource for Arrow that used 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

Obviously overdue for renewed attention is Fredart. The zone has conflicting historic, non-43-101 estimates of 386,000 tonnes averaging 1.56% copper and 33.6 g/t silver, or 219,500 tonnes averaging 1.95% copper and 41.8 g/t silver.

A January option agreement expands Pistol Bay’s Confederation Lake package by 3,700 hectares, for a total of about 20,700 hectares. The new turf comprises part of last year’s VTEM-Plus survey, the area’s first state-of-the-art regional geophysics. Some of the available, non-43-101 past intercepts from the acquisition’s Wasp Lake trend include 2.96% zinc and 0.04% copper over 2.79 metres, as well as 1.12% zinc and 0.04% copper over 7.19 metres. The same trend showed a strong conductive response on the VTEM-Plus results, Pistol Bay reported.

Another positive geophysical response came from the acquisition’s Fly Lake zone, where historic, non-43-101 assays reached as high as 1.36% zinc and 0.17% copper over 11.5 metres, along with 1.51% zinc and 0.08% copper over 8.9 metres. The zone appears to remain open along strike and at depth, the company stated. Nine other geophysical anomalies, meanwhile, appear to lack previous drilling.

The January option follows 5,860 hectares of staking last September that covers multiple conductors and IP anomalies identified in the airborne survey, as well as parallel conductors or extensions of known conductors.

Last month the company announced an amended agreement with a Rio Tinto NYSE:RIO subsidiary which will increase its hold on the C4, C5 and C6 uranium properties in Saskatchewan from 75% to 100%. The deal will bring Pistol Bay $1 million.

In January the company also announced progress with its PB Blockchain subsidiary as it builds “a suite of blockchain products to address needs that are particular to the data management and security of mining/oil and gas companies.”

Read more about Pistol Bay Mining here and here.

B.C. explorers boost spending for first time since 2012

March 5th, 2018

by Greg Klein | March 5, 2018

Despite a bad year for wildfires, it’s British Columbia’s first mineral exploration spending increase in four years and a substantial increase at that. The sector spent over $41 million more in 2017 than the previous year, a 20% jump to total $246 million province-wide. Most of the activity took place in two regions, with the northwestern Golden Triangle accounting for more than $11 million of the $41-million increase, showing a regional total of $82 million. In the southern Interior’s Cariboo, exploration increased by $19 million, 70% more than in 2016.

The data comes from the second annual British Columbia mineral and coal exploration survey released at PDAC on March 5 by EY, B.C.’s Ministry of Energy, Mines and Petroleum Resources, and the Association for Mineral Exploration. Twenty prospectors and 175 companies contributed responses.

“Although still considerably down from the peak years of 2011-12, there is cause for optimism that the upward trend will continue given the outlook for continued price stability, an overall strengthening of global market sentiment towards exploration, improvements in the capital markets for financing mineral and coal exploration, and a more favourable future market outlook,” the report stated.

The 2017 bleak spot was the province’s northeast, where exploration plunged 75% to $2.4 million last year, mostly due to diminished demand for Peace district coal.

Diamond drilling in B.C. more than doubled from 300,000 metres in 2016 to over 600,000 metres last year, accounting for 37% of total exploration spending.

Although the report cautions that it’s too early for a conclusion, the results seem to indicate the province has set a “reset” button on the mining cycle, as projects advance through the early stages. Grassroots work accounted for 41% of activity in 2016 but only 23% in 2017. Instead, last year saw an increase to 60% of exploration at the early and advanced levels, described by the report as the two stages following grassroots and preceding stages four and five: mine evaluation and mine lease.

The quest for gold accounted for 87%, or $37 million, of the province’s $41-million increase. Silver exploration spending more than doubled to $9.8 million, while zinc saw a nearly 50% leap to $8.2 million.

“It’s reassuring to see exploration spending returning to B.C., particularly as resource depletion returns to the list of industry risks,” commented AME director of corporate affairs Jonathan Buchanan. “We’re also encouraged to hear survey respondents remain committed to working with First Nations when sourcing new resource deposits to ensure benefits extend to the local or surrounding communities.”

Noting that the province’s mining revenues are “expected to approach $9 billion annually,” Gordon Clarke of the B.C. Mineral Development Office added, “It’s important to identify new development opportunities and encourage the continued development of a robust exploration industry.”

Among other encouraging signs for the sector, a November PricewaterhouseCoopers report pronounced an increase in market caps, financings, M&A and IPOs for TSXV-listed mining/exploration companies.

Download the British Columbia mineral and coal exploration survey 2017.

Deep-sensing geophysics precedes Belmont Resources’ Nevada lithium drilling

March 2nd, 2018

by Greg Klein | March 2, 2018

Recently received geophysical results will help Belmont Resources TSXV:BEA select drill targets for its Kibby Basin lithium property in Nevada. Described as a “full tensor magnetotelluric technology that acquires resistivity data in the 10 kHz to 0.001 Hz frequency band,” the survey covered about 36 square kilometres to depths of three kilometres over a playa basin and some adjoining turf.

Deep-sensing geophysics precedes Belmont Resources’ Nevada lithium drilling

Located 65 kilometres from Clayton Valley, Belmont Resources’
Kibby Basin project advances towards Phase II drilling.

While a 2016 gravity survey suggested the presence of a basin about 4,000 metres deep, the new results “clearly map a more conductive zone beginning at approximately 500 metres’ depth,” Belmont stated. Targets for a 2018 drill program on the 2,760-hectare property are being considered where potential brine contacts are closest to the playa surface, the company added.

Core samples from last year’s two-hole, 624-metre campaign assayed between 70 ppm and 200 ppm Li2O, with 13 of 25 samples exceeding 100 ppm.

A November acquisition added the Mid Corner-Johnson Croft zinc-cobalt prospect in New Brunswick to Belmont’s portfolio. Belmont also holds a 50% interest in two Saskatchewan uranium properties.

This week the company offered an amended private placement of up to $100,000, following an oversubscribed financing that closed on $312,000 in December.

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

Caution steadies the hand for Canada’s top miners: PwC

March 1st, 2018

by Greg Klein | March 1, 2018

Last year saw “few eye-popping deals and only limited financing activity” as TSX-listed mining companies responded cautiously to improved markets, according to a new PricewaterhouseCoopers report. Like many of their peers internationally, the big board’s top 25 miners focused on “paying down debt, improving balance sheets and judiciously investing in capital projects as commodity prices largely stabilized.”

The findings come from Preparing for Growth: Capitalizing on a Period of Progress and Stability, released March 1.

Gold, the raison d’être for most of the miners, fell 3% during the year ending September 30. During that period the 225 TSX-listed miners (down from 230 the previous year) lost 4% of their aggregate value, compared with a 10% combined improvement for other sectors. Miners slipped to a 9% share of the entire TSX market, compared with 11% the previous year, holding ninth place among industries on the exchange. (Financial services came in first.)

Barrick Gold TSX:ABX, still the world’s top gold producer despite Newmont Mining’s (NYSE:NEM) challenge, held top place among TSX mining market caps as of September 30. The top stock was Kirkland Lake Gold TSX:KL, with a 175% price increase over the full year, following its billion-dollar takeout of Newmarket Gold. The acquisition represented part of a trend of “mid-market, intermediate gold companies looking to build scale and gain efficiencies through consolidation,” said John Matheson of PwC Canada.

Two since-merged companies, Potash Corp of Saskatchewan and Agrium, followed Barrick with second and third place among TSX mining valuations. Currently at about $41 billion, the potash combination Nutrien Ltd TSX:NTR has far surpassed Barrick’s $16.8-billion market cap.

Nearly half of the 225 companies had valuations of $150 million or less. But the category between $150 million and $1 billion boasted 74 companies, compared with 59 the previous year.

Nineteen of the top 25 had exposure to gold, 10 to copper, seven to zinc, six to silver and four to nickel, PwC stated. The report noted increasingly bullish sentiment for copper, zinc, cobalt and lithium. The latter mineral did especially well for five companies, with an approximately 39% total increase in valuations over nine months to September 30 for Orocobre TSX:ORL, Lithium Americas TSX:LAC, Nemaska Lithium TSX:NMX, Avalon Advanced Materials TSX:AVL and Globex Mining Enterprises TSX:GMX.

But overall, TSX miners “raised only half the equity capital in 2017 that they did the previous year. And for the second consecutive year, there were no mining initial public offerings on the TSX.”

That contrasts with a more buoyant, although still cautious mood among Venture-listed junior miners reported in November by PwC, which found a substantial increase in market caps, financings, M&A and IPOs for TSXV explorers.

Download Preparing for Growth: Capitalizing on a Period of Progress and Stability.

Trans-Atlantic treasures

February 26th, 2018

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

by Greg Klein

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Resource update precedes PEA for Golden Dawn Minerals’ newest B.C. gold-polymetallic project

January 23rd, 2018

by Greg Klein | January 23, 2018

Update: On February 6, 2018, Golden Dawn Minerals reported that Huakan International Mining, which optioned J&L to Golden Dawn, faced a lawsuit from Armex Mining, which claims it has a valid letter of intent with Huakan concerning J&L. Huakan intends to defend the Armex action, Golden Dawn added.

Calling it one of western Canada’s “largest undeveloped gold mineral resources,” Golden Dawn Minerals TSXV:GOM released a new estimate for J&L, a southern British Columbia project acquired just last month. The company now expects to finish a preliminary economic assessment within five to eight months for a project that will be developed separately from the Greenwood portfolio farther south, where Golden Dawn plans to revive three former mines and a nearby mill.

Totals for four zones at J&L showed:

  • measured and indicated: 5.16 million tonnes averaging 4.59 g/t gold and 55.6 g/t silver for 761,000 ounces gold and 9.23 million ounces silver

  • inferred: 4.8 million tonnes averaging 4.35 g/t gold and 60.6 g/t silver for 672,000 ounces gold and 9.37 million ounces silver
Resource update precedes PEA for Golden Dawn Minerals’ newest B.C. gold-polymetallic project

The highway-accessible property came with a rail siding and loading facility 35 kilometres south in Revelstoke, as well as a 40-person camp, maintenance buildings, workshops and underground mining equipment.

Incorporating lead and zinc grades, the company attributed 1.35 million gold-equivalent ounces to M&I and another 1.07 gold-equivalent ounces to the inferred category.

The four zones comprise Main, Yellowjacket, Hanging Wall and Footwall. Main extends over 1.5 kilometres along strike and 850 metres down dip, remaining open for expansion, the company stated.

Meanwhile the Greenwood revival continues as Golden Dawn prepares to begin trial mining at the Lexington gold-copper past-producer within months. The company’s busy, multi-project activities are summarized here.

Read more about Golden Dawn Minerals.

Deep-penetrating geophysics to probe Belmont Resources’ Nevada lithium project

January 17th, 2018

by Greg Klein | January 17, 2018

Now being mobilized, an electromagnetic survey will help target brine aquifers on Belmont Resources’ (TSXV:BEA) Kibby Basin property. The company describes Quantec Geoscience’s Spartan AMT/MT method as “a full tensor magnetotelluric technology that acquires resistivity data in the 10 kHz to 0.001 Hz frequency band. The result is a measurement that is applicable from near-surface to potential depths of three kilometres or more.” Belmont credits Quantec with over 5,000 geophysical programs in over 50 countries.

Deep-penetrating geophysics to probe Belmont Resources’ Nevada lithium project

Two holes sunk on Kibby Basin last year brought
core samples between 70 ppm and 200 ppm lithium.

The Kibby Basin survey should take nine days, with another two weeks for an initial report.

The program follows a satellite data review and two-hole 2017 drill campaign on the 2,760-hectare Nevada property 65 kilometres north of Clayton Valley. Thirteen of 25 core samples surpassed 100 ppm lithium, “indicating that the sediments could be a potential source of lithium for the underlying aquifers,” the company stated.

A gravity survey the previous year suggested the property hosts a closed basin which the company later estimated to cover four square kilometres, extending to at least 1.5 kilometres in depth.

Last week Belmont announced its lawyers would request the annulment of a decision by the International Centre For Settlement Of Investment Disputes reported in August. The tribunal stated it had no jurisdiction in a dispute involving Belmont, EuroGas Inc and the Slovak Republic regarding Rozmin SRO’s ownership of the Gemerska Poloma talc deposit. Belmont seeks to be restored as a claimant in the arbitration proceedings.

The company also holds the Mid Corner-Johnson Croft property in New Brunswick, a prospect with some historic, non-43-101 zinc-copper-cobalt sampling results that has yet to undergo modern geophysics.

In northern Saskatchewan, Belmont and International Montoro Resources TSXV:IMT share a 50/50 stake in the Crackingstone and Orbit Lake uranium properties.

Belmont closed an oversubscribed private placement of $312,200 in December.

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

Kapuskasing goes after gold in Newfoundland’s Gunners Cove area

January 9th, 2018

by Greg Klein | January 9, 2018

A possibly unique discovery by another company has brought Kapuskasing Gold TSXV:KAP back to Newfoundland’s Great Northern Peninsula. The company staked three blocks totalling 1,625 hectares near the town of St. Anthony, proximal to White Metal Resources’ (TSXV:WHM) Gunners Cove project. Last November White Metal announced highly anomalous gold and other metal values in samples taken from black shale on a wide area of the property, which had previously seen very little exploration.

Kapuskasing goes after gold in Newfoundland’s Gunners Cove area

Kapuskasing’s new turf covers “the same favourable geology,” the company stated. “This could potentially be a very important new discovery in a unique geological environment similar to that of other large gold deposits hosted in black shale environments around the world.”

“It’s grassroots, but these early days are interesting,” Kapuskasing president/CEO Jon Armes tells ResourceClips.com. “We need a presence there because this looks like it could turn into a whole new camp, a whole new geological environment that’s underexplored. And the best way to position yourself is by staking claims, with the advantage of having 100% interest with no underlying royalties. I think we’ll get more insight after the snow’s gone, when people get their boots on the ground and take a closer look.”

Kapuskasing intends to compile an exploration program over the next few months.

The acquisition expands the company’s Great Northern presence. In September Kapuskasing finalized a 100% option agreement on Daniel’s Harbour, roughly 200 kilometres southwest. The former zinc mine produced around seven million tonnes averaging 7.8% zinc between 1975 and 1990 from a Mississippi Valley Type deposit.

Off the peninsula but close to Newfoundland’s northern coast, assays are expected soon from Kapuskasing’s flagship Lady Pond project, where drilling began in November. Recent grab samples and historic, non-43-101 drill results have returned high copper grades.

Read Isabel Belger’s interview with Kapuskasing Gold president/CEO Jon Armes.