Saturday 23rd September 2017

Resource Clips


Posts tagged ‘zinc’

Update: Pistol Bay Mining announces 43-101 resource, JV discussions and—again—newly staked land

September 20th, 2017

by Greg Klein | Updated September 20, 2017

Update: With staking announced on September 14 and 20, Pistol Bay Mining has added more than 5,860 hectares to its property package, bringing the total to about 17,000 hectares.

Results from Confederation Lake’s first regional state-of-the-art geophysics have prompted Pistol Bay Mining TSXV:PST to expand its presence in the VMS-rich northwestern Ontario greenstone belt. Two acquisition announcements came within eight days after the company reported initial findings from the 2,100-line-kilometre VTEM-Plus survey. Those results accompanied announcements of a new resource estimate for one of the portfolio’s projects as well as potential joint venture interest.

Pistol Bay Mining announces VTEM-inspired acquisition, resource update and JV discussions

“We are seeing lots of new anomalies in the survey data, not just conductors but the IP effect anomalies as well, and Pistol Bay is going to have a busy few years exploring them all,” said CEO Charles Desjardins.

The new claims cover multiple conductors and IP-effect anomalies, some of which have had previous drilling with results showing zinc or copper, the company stated. The new data also shows parallel conductors or extensions of known conductors.

New claims between Pistol Bay’s Fredart and Joy claim groups host four conductors of 400, 850, 900 and 950 metres that appear not to have undergone drilling. Fredart A holds an historic, non-43-101 copper estimate. Like the four newly found anomalies, the Joy North anomaly hasn’t been drilled.

The airborne survey confirmed conductivity at all of the portfolio’s historic showings, zones and mineralized drill intercepts, Pistol Bay added. While analysis continues, data so far shows conductivity extending beyond known zones, along strike and in new clusters apart from known mineralization.

Once we’ve got our targets finalized, we will be entertaining proposals for joint ventures to advance this highly prospective property.—Charles Desjardins,
CEO of Pistol Bay Mining

“Because of the large number of potential targets generated by the VTEM survey, we are considering inviting joint venture partners for all or parts of the Confederation Lake project,” Desjardins noted. “We have had early-stage discussions with potential joint venture partners. Once we’ve got our targets finalized, we will be entertaining proposals for joint ventures to advance this highly prospective property.”

Pistol Bay also filed a technical report for Garnet Lake, a Confederation Lake property that hosts the Fredart A zone. Updating an historic 2007 estimate for the Arrow zone, the 43-101 incorporates 20 additional holes. Using a base case 3% zinc-equivalent cutoff, an inferred category shows:

  • 2.1 million tonnes averaging 0.72% copper, 5.78% zinc, 19.5 g/t silver and 0.6 g/t gold, for a zinc-equivalent grade of 8.5%

Contained amounts come to:

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

Contingent on favourable geophysical and other data, the 43-101 recommends two 1,000-metre holes at Arrow to test for possible down-plunge extensions of the resource. The report also calls for another 3,000 metres on targets to be identified elsewhere on the Garnet property.

Last May the company signed an LOI to acquire the 496-hectare Copperlode property, about four kilometres along strike from Arrow.

Update: Pistol Bay Mining announces VTEM-inspired acquisition, new resource and JV discussions

September 14th, 2017

This story has been updated and moved here.

Drilling, sampling, optioning: Mountain Boy Minerals updates B.C. activities

September 13th, 2017

by Greg Klein | September 13, 2017

Demonstrating that a diverse portfolio doesn’t necessarily mean idle properties, Mountain Boy Minerals TSXV:MTB updated several projects in northwestern British Columbia’s Golden Triangle.

Drilling has just resumed at Silver Coin, held 20% by Mountain Boy and 80% by joint venture partner Jayden Resources TSXV:JDN. Acting as operator is Sprott Mining Inc on a campaign of about 6,000 metres mostly focusing on stepouts. The agenda also calls for regional exploration on the 1,470-hectare property.

Silver Coin hosts a 2013 43-101 resource that uses a 2 g/t gold cutoff to show a total for four zones:

  • indicated: 702,000 tonnes averaging 4.46 g/t gold, 17.89 g/t silver, 0.88% zinc, 0.33% lead and 0.07% copper

  • inferred: 967,000 tonnes averaging 4.39 g/t gold, 18.98 g/t silver, 0.64% zinc, 0.25% lead and 0.04% copper
Drilling, sampling, optioning: Mountain Boy Minerals updates B.C. activities

Mountain Boy awaits assays from Red Cliff,
where core from five holes has revealed visible gold.

Drilling continues at the Red Cliff property, where 25 holes have been completed so far with assays pending. In July Mountain Boy reported visible gold in the program’s first five holes. Red Cliff also has sampling underway at the Lower Montrose and Waterpump zones. The latter has drilling planned, once sampling assays arrive.

Mountain Boy has a 35% interest in Red Cliff, with JV partner Decade Resources TSXV:DEC holding the rest. The ownership gets more complicated, however, now that the two companies have teamed up on additional claims to the southeast. The acquisition gives the JV an earn-in total of up to 80% of the extension, with 28% to be held by Mountain Boy and 52% by Decade. The size of neither the original Red Cliff property nor the additional claims was reported. Mountain Boy and Decade share overlapping management and directors.

TSXV approval came through earlier this month for Mountain Boy’s 100% options on the Surprise Creek and BA properties, both formerly 50/50 JVs with Great Bear Resources TSXV:GBR. Over $12 million of exploration has gone into the nearby projects over the last 10 years, revealing zones of high-grade zinc, lead and silver, as well as zinc, copper and silver.

Prior to a drill program expected later this month, the 7,472-hectare Surprise Creek has sampling underway on a large barite zone and on areas of VMS mineralization revealed by historic sampling. In July the company announced successful production of a barite concentrate that surpassed American Petroleum Institute standards. The mineral is considered essential to oil and gas exploration.

Additional sampling has taken place on the 9,489-hectare BA VMS project, just north of a 2016 channel sample result that returned 3.84% zinc, 1.25% lead and 108 g/t silver over 15 metres. That included a sub-interval of 5.31% zinc, 1.97% lead and 132 g/t silver over 7.5 metres.

Mountain Boy also optioned 60% of West George, a 288-hectare copper property adjacent to the company’s George copper project that the company now holds 100%. The original George has non-43-101 copper-silver-gold estimates. West George has sampling underway.

Meanwhile assays are pending for recent sampling from MB Silver, a project with historic, non-43-101 polymetallic estimates. In southern B.C., Mountain Boy plans to begin PEA studies on its 100%-held Manuel Creek zeolite project.

The company expects to soon close a private placement of up to $1 million.

Read Isabel Belger’s interview with Mountain Boy Minerals chairperson René Bernard.

See an infographic about B.C.’s Golden Triangle.

Pistol Bay Mining announces VTEM results, resource update, JV discussions

September 12th, 2017

This story has been updated and moved here.

Airborne survey heightens interest in Rockcliff Copper’s former Manitoba gold mine

September 7th, 2017

by Greg Klein | September 7, 2017

Geophysics over the Laguna gold property in northern Manitoba’s Flin Flon-Snow Lake camp have found a structurally complex geological trend at least six kilometres long and 200 metres wide, Rockcliff Copper TSXV:RCU reports. Now the 3,501-hectare property’s exploration priority, the finding comes from an airborne drone magnetometer survey flying 1,120 kilometres of tight 25- to 50-metre spacing. The work was part of a program that includes very low frequency and induced polarization surveys still underway.

Airborne survey heightens interest in Rockcliff Copper’s former Manitoba gold mine

Besides Laguna, Rockcliff’s priorities for its Snow Lake package
include the Talbot copper property and the Bur zinc property.

Rockcliff holds a 100% option on Laguna, one of several properties in the company’s Snow Lake project. During intermittent operation between 1916 and 1939, Laguna produced over 60,000 ounces of gold averaging 18.7 g/t from a single vein. Surface grab samples previously announced by Rockcliff ranged from trace to over 600 g/t.

The newly identified trend “hosts multiple, surface-exposed, high-grade gold-bearing quartz vein stockwork systems which are associated with sub-parallel subsidiary fault splays east of a major regional NE-SW trending thrust fault known as the Crowduck Bay fault,” said president/CEO Ken Lapierre. The trend shows “excellent” potential for finding additional stockworks of a similar nature, he added.

Rockcliff’s Snow Lake project consists of both gold and VMS properties. The approximately 45,000-hectare package includes two gold properties besides Laguna, as well as two copper-polymetallic deposits with resource estimates and four zinc deposits with historic, non-43-101 estimates. The properties all sit within trucking distance of two processing facilities owned by Hudbay Minerals TSX:HBM.

Last week Rockcliff closed an oversubscribed private placement of $1.35 million.

Read more about Rockcliff Copper here and here.

Update: Berkwood Resources continues to drill visible graphite in Quebec

August 31st, 2017

by Greg Klein | updated August 31, 2017

Assays have yet to arrive, but two holes reported last week and another five on August 31 have all produced near-surface core with visible graphite from Berkwood Resources’ (TSXV:BKR) Lac Gueret South project. The Phase I program calls for nine more shallow holes between about 60 and 120 metres in depth.

The company cautioned that visible indications don’t necessarily coincide with significant grades. But the results do justify continuing the program as planned, Berkwood stated.

Lac Gueret South borders the property hosting Mason Graphite’s (TSXV:LLG) high-grade graphite deposit. A 2014 airborne EM survey over Berkwood’s land found several zones of high conductivity.

Last week’s news from the property’s Site #1 reported 3.1 metres and 38.29 metres of visible graphite from BK1-01-17, along with 2.7 metres and 9.9 metres from BK1-02-17. The depths corresponded with electromagnetic conductors.

Berkwood Resources continues to drill visible graphite in Quebec

The first seven holes have brought observable
encouragement to Berkwood Resources’ Lac Gueret South.

Among new findings from Site #2, about 110 metres north, BK1-03-17 displayed the right stuff in seven intervals ranging between 1.46 metres and 28.2 metres in width.

Another Site #2 hole, BK1-04-17 showed graphite “continuously from 26.7 metres to 79.24 metres in variable amounts and styles,” Berkwood stated.

At Site #3, another 65 kilometres north, BK1-05-17 revealed graphite over four intervals with thicknesses between 3.2 metres and 14.12 metres. BK1-06-17 brought intervals of 13.22 metres and 1.14 metres.

About 87 metres east, BK1-07-17 on Site #4 showed 5.94 metres of graphite.

True widths weren’t provided.

The company holds two land parcels adjacent to the Mason property, Berkwood’s 100%-optioned, 5,714-hectare Lac Gueret South and the 100%-held, 2,052-hectare Lac Gueret East. The properties sit about three hours by road from the deep-sea port of Baie-Comeau.

Last month the company announced acquisition of the Delbreuil property in Quebec’s Abitibi, where an historic, non-43-101 sample assayed 1,290 ppm lithium and 126 ppm tantalum. Historic drill results also showed zinc, nickel, copper, silver and cobalt.

In another energy mineral acquisition last June, Berkwood announced an agreement to take on the Cobalt Ford property, located about four hours’ driving time from Baie-Comeau. Historic, non-43-101 work suggests prospectivity for base metals as well as cobalt.

This week the company closed private placements totalling $985,180.

Robert Friedland talks copper, zinc, PGMs and China’s “airpocalypse”

August 28th, 2017

…Read more

Kapuskasing expands Newfoundland copper project, plans September drilling

August 23rd, 2017

by Greg Klein | August 23, 2017

Announced in May as an LOI but now ratified, Kapuskasing Gold’s (TSXV:KAP) 100% option adds the Sterling property and its former mines to the company’s Lady Pond project near the north coast of Newfoundland. The 700-hectare addition brings Lady Pond to 2,450 hectares with exploration and mining dating to the late 19th century. The standouts include the former Sterling mine, the Twin Pond prospect about 1.5 kilometres northeast and, three more kilometres northeast, the Lady Pond past-producer.

Sterling comes with an historic, non-43-101 1960s estimate of a million tonnes averaging 1% copper that’s open in all directions. Some historic, non-43-101 intercepts showed:

  • 5.5% copper over 4.42 metres, starting at 38.1 metres in downhole depth
Kapuskasing expands Newfoundland copper project, plans September drilling

  • 2.32% over 6.1 metres, starting at 106.68 metres

  • 1.45% over 4.57 metres, starting at 50.29 metres

Of 32 holes sunk on Twin Pond, some historic, non-43-101 highlights showed:

  • 4.2% copper over 3.35 metres, starting at 82.3 metres

  • 2.16% over 3.05 metres, starting at 33.53 metres

  • 3.2% over 3.05 metres, starting at 70.14 metres

Again with the historic, non-43-101 caveat, a Lady Pond intercept assayed 2.61% copper over 8.1 metres, with no downhole depth provided.

Having finished a preliminary 3D model for Sterling and Twin Pond, Kapuskasing stated it found significant gaps in drilling between high-grade intersections. Further review of historic data will precede drilling planned to begin next month. The company also plans an induced polarization survey between Sterling and Twin Pond.

With logging road and ATV access, the Lady Pond project borders the town of Springdale. Rambler Mining and Metals TSXV:RAB operates a base metals mill at Baie Verte, 94 kilometres by road from Springdale. Rambler also holds the historic Little Deer and Whalesback copper deposits contiguously west of Lady Pond.

Subject to TSXV approval, Kapuskasing gets a 100% interest in Sterling for $25,000, 1.8 million shares and $250,000 in spending over four years. A 3% NSR applies, of which Kapuskasing may buy two-thirds for $2 million.

The property expansion reflects an acquisitive phase as Kapuskasing expands its Newfoundland and Labrador portfolio. In May the company signed an LOI on the former Daniel’s Harbour zinc mine on the island’s north. Lady Pond was one of eight April acquisitions, with other properties showing potential for copper, cobalt and vanadium. Daniel’s Harbour and Lady Pond comprise the portfolio’s dual flagships.

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

Jon Armes outlines Kapuskasing’s zinc, copper and cobalt projects in Newfoundland and Labrador

August 8th, 2017

…Read more

Robert Friedland’s favourites

July 28th, 2017

Unprecedented demand calls for unparalleled grades, the industry legend says

by Greg Klein

For all that’s being said about lithium and cobalt, Robert Friedland argues that the energy revolution also depends on copper and platinum group elements. Of course he has a stake in them himself, with Kamoa-Kakula and Platreef among his current enthusiasms. Still, whether motivated by self-interest or not, the mining titan whom Rick Rule calls “serially successful” presented a compelling case for his favourite metals at the Sprott Natural Resource Symposium in Vancouver on July 25.

We’re living in “an era of unprecedented change,” said Ivanhoe Mines’ TSX:IVN founding chairperson. China’s the main cause. That country’s “breeding mega-cities prodigiously.” But one result is “incredibly toxic air… with a whole suite of health effects” from heart attacks to stroke, asthma to Alzheimer’s.

Unprecedented demand calls for unparalleled grades, the industry legend says

A crew operates jumbo rigs to bring
Ivanhoe’s Platreef mine into PGM production.

China’s not alone. Friedland pegs current global population growth at 83 million a year, with a projected 8.5 billion people populating the planet by 2030. Five billion will inhabit urban areas. Forecasts for 2050 show 6.3 billion city-dwellers. But China, notorious for its poisoned atmosphere, “is on an air pollution jihad.” It’s an all-out effort to turn back the “airpocalypse” and, with a command economy, a goal that shall be achieved.

The main target will be the internal combustion engine, responsible for about 60% of urban air pollution, Friedland said. China now manufactures 19 million cars annually, he adds. The country plans to increase output to 60 million, a goal obviously contrary to the war on pollution unless it emphasizes electric vehicles.

Like others, Friedland sees massive disruption as the economics of EVs overtake those of internal combustion engines, a scenario he expects by 2022 or 2023.

Demand for lithium-ion batteries (comprising 4% lithium, 80% nickel sulphate and 15% cobalt) has sent cobalt prices soaring. But bigger EVs will likely rely on hydrogen fuel cells, he pointed out. They’re already used in electric SUVs, pickup trucks, double-decker buses in London, trains in Germany and China, and, expected imminently, autonomous air taxis in Dubai.

Hydrogen fuel cells need PGMs. If only one-tenth of China’s planned EV output used the technology, demand would call for the world’s entire platinum supply, Friedland said.

“I would rather own platinum than gold,” he declared. Additionally, “there’s no platinum central reserve bank to puke out platinum.”

Ivanhoe just happens to have PGMs, about 42 million ounces indicated and 52.8 million ounces inferred, at its 64%-held Platreef project in South Africa.

Unprecedented demand calls for unparalleled grades, the industry legend says

Underground development progresses at the Kansoko mine,
part of the Kamoa copper deposit and adjacent to Kakula.

Electricity for the grid also ranks high among China’s airpocalyptic priorities. A study produced for the United Nations Environment Programme credits the country with a 17% increase in renewable electricity investment last year, most of it going to wind and solar. Almost $103 billion, China’s renewables investment comes to 36% of the world total.

Just as EVs remain more copper-dependent than internal combustion, wind and solar call for much more of the conductive commodity than do other types of electricity generation. Friedland sees additional disruptive demand in easily cleaned copper surfaces now increasingly used in hospitals, care homes, cruise ships and other places where infectious diseases might lurk.

He sees a modest copper supply deficit now, with a crisis possibly starting as soon as 2019. The world needs a new generation of copper mines, he said, repeating his unkind comparison of today’s low-grade, depleting mines to “little old ladies waiting to die.” The world’s largest producer, the BHP Billiton NYSE:BHP/Rio Tinto NYSE:RIO Escondida mine in Chile, is down to a 0.52% grade.

Copper recently hit a two-year high of about $6,400 a tonne. But, citing Bernstein data, Friedland said new mines would require a $12,000 price.

Not Kamoa-Kakula, though. He proudly noted that, with an indicated resource grading 6.09%, it hosts “the richest conceivable copper deposit on this planet.”

I’ve never been as bullish in my 35 years on a project.—Robert Friedland

A JV with Ivanhoe and Zjin Mining Group each holding 39.6% and the DRC 20%, Kamoa-Kakula inspires “a plethora of superlatives.” The veteran of Voisey’s Bay and Oyu Tolgoi added, “I’ve never been as bullish in my 35 years on a project.”

The zillionaire likes zinc too, which his company also has in the DRC at the 68%-held Kipushi project. With a measured and indicated grade of 34.89%, the Big Zinc zone more than doubles the world’s next-highest-grade zinc project, according to Ivanhoe. There’s copper too, with three other zones averaging an M&I grade of 4.01%.

“Everything good in the Congo starts with a ‘K’,” he said enthusiastically.

But recklessly, in light of the DRC’s controversial Kabila family. In June Ivanhoe was hit by reports that the company has done deals with businesses held by the president’s brother, Zoe Kabila, although no allegations were made of wrongdoing.

The family has run the country, one of Africa’s poorest, since 1997. Current president Joseph Kabila has been ruling unconstitutionally since November, a cause of sometimes violent protest that threatens to further destabilize the DRC.

As the New York Times reported earlier this month:

An implosion of the Democratic Republic of Congo, a country almost the size of western Europe, could spill into and involve some of the nine countries it borders. In the late 1990s, neighbouring countries were sucked into what became known as the Great War of Africa, which resulted in several million deaths.

Friedland’s nearly hour-long address made no mention of jurisdictional risk. But the audience of hundreds, presumably most of them retail investors, responded warmly to the serial success story. He’s the one who, after Ivanhoe languished at five-year lows in early 2016, propelled the stock more than 300% over the last 12 months.