Marifil Mines (CVE:MFM)
Thursday saw its shares surge 12.5 per cent, after it announced that
its partner Netco Silver (CVE:NEI) has discovered two new vein
structures at the Toruel property in Argentina.
Marafil said it received a progress report from joint venture
partner, Netco, on their prospecting, trenching and sampling program at
the Toruel property.
Toruel is located approximately 23 kilometres southeast of the town
of Los Menucos and approximately 100 kilometres from Pan American
Silver's (TSE:PAA) Navidad project, one of the world's largest
undeveloped silver deposits.
Marafil said that multiple vein structures have been identified on
the Toruel property to date, with only 50 per cent of the property
having been explored and mapped.
Recent prospecting and sampling has identified two additional vein
structures, the "El Cumpa" vein and the "Capo" vein, said the company.
Marafil noted that the El Cumpa vein was discovered 2,500 metres east
of the Toruel vein, where past drilling had intersected 6.7 metres of
almost two kilograms silver and 5.34 percent copper.
The company said the new vein is expressed by discontinuous,
one-metre wide outcrops along a strike length of about 1,100 metres. The
El Cumpa vein is also genetically similar to the known Toruel vein
system and comprises multi-phased silica events.
The Capo vein lies roughly 250 metres to the north of the El Cumpa
vein, said the company, adding that Capo shows one metre wide
discontinuous outcrops over a strike length of approximately 950 metres.
To date, Marafil said that trenches have been opened across both
mineralized structures and rock samples were collected and have been
sent for analysis.
"These results continue to support the geological model, which
indicates that the Toruel vein is at a lower level of an epithermal
system, with tectonically down-thrown blocks to the east and west,” the
company said in Thursday's release.
Marafil added that up-thrown blocks have been exposed to a deeper level of erosion, whereas downthrown blocks have not.
The company said the consequence of this is that many of the lower
level anomalies discovered “quite likely” represent surface expressions
of buried epithermal mineralization.
Marafil said prospecting and mapping efforts are ongoing to tie the
complete geological picture together, including identifying the
intrusive source for the silver and gold mineralized systems.
As part of these efforts, the company said some of the historic
diamond drill core from the Toruel vein is scheduled to be resampled and
analyzed for silver and gold, and also for indium and gallium - both
important metals for the high tech electronics sector.
Drilling is expected to start on the site by June this year.
Marifil is a Canadian exploration company that focuses on Argentina.
Through its joint venture opportunities, it has been able to develop a
diverse portfolio of properties, including several with bonanza grade
gold, silver, copper and indium values.
The company has a land position of 20 properties, totaling more than 400,000 hectares within nine provinces of Argentina.
In early May, the exploration-stage resource company hired Robert J.
Rennie to aide with the proposed spin-out of its fertilizer-related
assets, under a consulting services agreement.
Marifil’s flagship potash properties, K-2 to K-6, are located in the
Neuquén Basin in Argentina, where the company said it has identified
"extremely significant potash targets" on all five properties through a
review of oil well drill logs.
Based on these wells, Marifil projects a potash target that
potentially exceeds 200 square kilometres and yields around 200 million
tonnes of KCI. The company noted that there are similar targets on its
K-3 and K-4 properties, with 50 to 100 million tonnes of potential KCl
based on fewer wells.
Marifil's second flagship property is the San Roque project in the
Rio Negro province of Argentina, a 51 percent-owned joint venture with
NovaGold Resources (TSE:NG) (AMEX:NG).
Marafil’s shares were trading at 13.5 cents as at 3:30 pm EDT.
Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Thursday, 31 May 2012
Bacterin to present at Jefferies Global Healthcare Conference
Biologics product developer Bacterin International Holdings (NYSEAMEX:BONE) announced late Wednesday it will be presenting at the Jefferies 2012 Global Healthcare Conference.
The maker of bone graft material and antimicrobial coatings for medical applications will present on June 7th at 11:00AM (ET), at the Jefferies 2012 Global Healthcare Conference, in New York, New York.
Bacterin's presentation will be webcast and available online at www.investor.bacterin.com.
The company recently unveiled, at the beginning of May, its third national group purchasing organization (GPO) contract, announcing a three-year agreement with health care supply chain company Novation.
The agreement provides Bacterin's full biologic portfolio to the nationwide network of hospitals and medical practices served by Novation.
The portfolio includes Bacterin's OsteoSponge, OsteoSelect DBM Putty, OsteoWrap, OsteoLock, BacFast, hMatrix, Sports Medicine Allografts, and traditional allografts.
Bacterin's technology optimizes the growth factors in human allografts to promote bone, subchondral repair and dermal growth.
The company's products are used in a variety of applications including enhancing fusion in spine surgery, relief of back pain, bone growth in foot and ankle surgery, cranial healing following neurosurgery and subchondral repair in knee and other joint surgeries.
The maker of bone graft material and antimicrobial coatings for medical applications will present on June 7th at 11:00AM (ET), at the Jefferies 2012 Global Healthcare Conference, in New York, New York.
Bacterin's presentation will be webcast and available online at www.investor.bacterin.com.
The company recently unveiled, at the beginning of May, its third national group purchasing organization (GPO) contract, announcing a three-year agreement with health care supply chain company Novation.
The agreement provides Bacterin's full biologic portfolio to the nationwide network of hospitals and medical practices served by Novation.
The portfolio includes Bacterin's OsteoSponge, OsteoSelect DBM Putty, OsteoWrap, OsteoLock, BacFast, hMatrix, Sports Medicine Allografts, and traditional allografts.
Bacterin's technology optimizes the growth factors in human allografts to promote bone, subchondral repair and dermal growth.
The company's products are used in a variety of applications including enhancing fusion in spine surgery, relief of back pain, bone growth in foot and ankle surgery, cranial healing following neurosurgery and subchondral repair in knee and other joint surgeries.
Great Western Q1 revenues rise on strong LCM unit performance
Great Western Minerals Group (CVE:GWG)
(OTCQX:GWMGF) announced late Wednesday first quarter results, with
financial performance exceeding that of the prior year period.
For the quarter that ended March 31, the integrated rare earths company posted revenues of $4.47 million, compared to $4.23 million for the previous year period.
Great Western Minerals Group (GWMG) combines upstream resource exploration and extraction at its Steenkampskraal mine in South Africa with downstream metals processing facilities in the US and UK. Its specialty alloys are used in the battery, magnet and aerospace industries.
"The financial performance of GWMG overall, and the performance of Less Common Metals in particular, has once again surpassed that of the same period of the prior year," said president and CEO Jim Engdahl.
"Increased LCM revenues are indicative of its strong market position. The continual increase in LCM's gross margin, EBITDA [earnings before interest, taxes, depreciation, and amortization] and earnings are indicative of a continual focus on productivity.
"These operating results position GWMG very well as the company continues down the path of full integration."
GWMG posted gross margins of $1.79 million, up from $1.29 million in the same quarter of 2011.
The company reported a narrower loss of $3.05 million, or $0.007 per share, smaller than the loss in the same quarter of 2011 of $4.85 million, or $0.014 per share.
Manufacturing revenues from the company's processing facilities, Less Common Metals Limited (LCM) and Great Western Technologies, represent a 5.7 per cent increase over the first quarter of 2011.
Gross margins on manufacturing operations represent a 38.2 per cent increase over the same period of 2011.
The company’s development program at Steenkampskraal is central to ensure a strong flow of feedstock for its downstream processing. GWMG intends to be one of the first to produce significant quantities of the more valuable heavy rare earth oxides, which are important materials for alloys.
The rare earth company, which eventually plans to be its own supplier as well as creating a supply certainty for global customers, has several operational targets this year, including the refurbishment of the mine shaft at Steenkampskraal in the first half of this year.
Great Western is on track for this target, as well as for the launch of mining activities by the end of 2012, and the construction of a mixed chloride plant and separation plant near Steenkampsraal in the first half of 2013.
Gross margins for LCM’s first quarter increased 34.4 per cent to $1.89 million, compared to $1.41 million in the first quarter of 2011.
EBITDA for the first quarter at LCM increased 41.5 per cent to $871,926, compared to $616,198 a year earlier.
Revenues for LCM were “significantly over budget”, at $4.29 million, versus $4.07 million in the same quarter of 2011.
At its LCM processing operation in the UK, the company completed the first pour with its new strip casting furnace at the end of January, and in late March, the company placed an order for a second strip cast furnace, allowing alloy manufacturing capacity to double when the second furnace arrives and is commissioned later this year.
The second strip cast furnace will increase the total production capacity of LCM to approximately 2,000 tonnes per annum of rare earth alloys. The company is boosting capacity in preparation for its rare earth production coming online, and as demand for the metals grows.
The company’s shares were up 1.27 per cent Thursday, trading at $0.40.
For the quarter that ended March 31, the integrated rare earths company posted revenues of $4.47 million, compared to $4.23 million for the previous year period.
Great Western Minerals Group (GWMG) combines upstream resource exploration and extraction at its Steenkampskraal mine in South Africa with downstream metals processing facilities in the US and UK. Its specialty alloys are used in the battery, magnet and aerospace industries.
"The financial performance of GWMG overall, and the performance of Less Common Metals in particular, has once again surpassed that of the same period of the prior year," said president and CEO Jim Engdahl.
"Increased LCM revenues are indicative of its strong market position. The continual increase in LCM's gross margin, EBITDA [earnings before interest, taxes, depreciation, and amortization] and earnings are indicative of a continual focus on productivity.
"These operating results position GWMG very well as the company continues down the path of full integration."
GWMG posted gross margins of $1.79 million, up from $1.29 million in the same quarter of 2011.
The company reported a narrower loss of $3.05 million, or $0.007 per share, smaller than the loss in the same quarter of 2011 of $4.85 million, or $0.014 per share.
Manufacturing revenues from the company's processing facilities, Less Common Metals Limited (LCM) and Great Western Technologies, represent a 5.7 per cent increase over the first quarter of 2011.
Gross margins on manufacturing operations represent a 38.2 per cent increase over the same period of 2011.
The company’s development program at Steenkampskraal is central to ensure a strong flow of feedstock for its downstream processing. GWMG intends to be one of the first to produce significant quantities of the more valuable heavy rare earth oxides, which are important materials for alloys.
The rare earth company, which eventually plans to be its own supplier as well as creating a supply certainty for global customers, has several operational targets this year, including the refurbishment of the mine shaft at Steenkampskraal in the first half of this year.
Great Western is on track for this target, as well as for the launch of mining activities by the end of 2012, and the construction of a mixed chloride plant and separation plant near Steenkampsraal in the first half of 2013.
Gross margins for LCM’s first quarter increased 34.4 per cent to $1.89 million, compared to $1.41 million in the first quarter of 2011.
EBITDA for the first quarter at LCM increased 41.5 per cent to $871,926, compared to $616,198 a year earlier.
Revenues for LCM were “significantly over budget”, at $4.29 million, versus $4.07 million in the same quarter of 2011.
At its LCM processing operation in the UK, the company completed the first pour with its new strip casting furnace at the end of January, and in late March, the company placed an order for a second strip cast furnace, allowing alloy manufacturing capacity to double when the second furnace arrives and is commissioned later this year.
The second strip cast furnace will increase the total production capacity of LCM to approximately 2,000 tonnes per annum of rare earth alloys. The company is boosting capacity in preparation for its rare earth production coming online, and as demand for the metals grows.
The company’s shares were up 1.27 per cent Thursday, trading at $0.40.
Quia Resources unveils latest San Lucas drill results
South America-focused Quia Resources (CVE:QIA) Thursday announced further drill results from its San Lucas project in Colombia.
The company also provided an updated interpretation of the potential of the Guamoco district in the San Lucas gold belt.
Among the highlights of recent drilling, holes SL1215A and SL1217, spaced approximately 290 metres apart along strike at Rueda South, intersected 2.72 grams per tonne (g/t) gold over 2.85 metres including 5.87 g/t gold over 0.89 metres, and 7.35 g/t gold over 0.25 metres respectively.
Hole SL1217, the southern-most at Rueda, was drilled 1,300 metres south-west and along strike from drill holes SL1102 and SL1103 at Rueda North, which intersected 1.87 g/t gold over 1.5 metres and 3.46 g/t gold over 0.6 metres at Rueda North, respectively.
"These results support our hypothesis that a large mesothermal gold system is being discovered, whose closest analogue is the Frontino mine, Colombia's largest historical producer located 70 km to the south of us, which has reportedly produced over 5 million ounces," Quia's CEO Yannis Banks said.
The drilling at Rueda establishes a second mesothermal system (Libertad being the first) with potential continuity over a significant strike length, known to contain high-grade zones based on previous chip sampling in tunnels that reached as high as 2,342 g/t gold, Quia said.
The company said that four other north-east trending vein systems with significant strike potential have been identified based on the location of artisanal mines, underground sampling and geochemistry, in addition to the north-south trending Libertad system, with the majority of the property still to be explored.
Altogether the phase 1 program has demonstrated the potential for a district-scale mesothermal gold discovery with further drilling, as well as the porphyry potential of the area.
"These types of deposits are typified by occurrences of intense nuggety mineralization with more diffused mineralization surrounding them," Banks added.
"As we have progressed in our work at Rueda and Libertad, we have demonstrated that both of these systems are potentially continuous over significant strike lengths and which we know contain zones of bonanza grade gold mineralization and visible gold based on our underground sampling.
"We believe that a large-scale drill program, which we are planning following our phase 2 surface program, will define the broader dimensions of the system and as drilling progresses the probability for discovering high grade shoots within the system increases."
Quia is planning a phase 2 surface exploration program to better define the Libertad and Durmiente targets as well as the other significant mineralized trends that have been identified, and to complete reconnaissance exploration over other parts of the property.
The company plans to follow the phase 2 surface program with a phase 2 drill program to focus on Libertad and Durmiente and potentially to test other targets, subject to the results of the surface program.
In addition to mesothermal vein systems, the district is prospective for porphyry deposits, and the company plans to incorporate both the mesothermal and porphyry models into its exploration approach.
Quia Resources is a gold exploration company focused in Colombia and its 100 per cent owned San Lucas property in the San Lucas gold belt.
San Lucas is among the least explored and most prospective gold belts in Colombia. The exploration completed to date has begun to define the potential discovery of a new gold district in Colombia.
The company also provided an updated interpretation of the potential of the Guamoco district in the San Lucas gold belt.
Among the highlights of recent drilling, holes SL1215A and SL1217, spaced approximately 290 metres apart along strike at Rueda South, intersected 2.72 grams per tonne (g/t) gold over 2.85 metres including 5.87 g/t gold over 0.89 metres, and 7.35 g/t gold over 0.25 metres respectively.
Hole SL1217, the southern-most at Rueda, was drilled 1,300 metres south-west and along strike from drill holes SL1102 and SL1103 at Rueda North, which intersected 1.87 g/t gold over 1.5 metres and 3.46 g/t gold over 0.6 metres at Rueda North, respectively.
"These results support our hypothesis that a large mesothermal gold system is being discovered, whose closest analogue is the Frontino mine, Colombia's largest historical producer located 70 km to the south of us, which has reportedly produced over 5 million ounces," Quia's CEO Yannis Banks said.
The drilling at Rueda establishes a second mesothermal system (Libertad being the first) with potential continuity over a significant strike length, known to contain high-grade zones based on previous chip sampling in tunnels that reached as high as 2,342 g/t gold, Quia said.
The company said that four other north-east trending vein systems with significant strike potential have been identified based on the location of artisanal mines, underground sampling and geochemistry, in addition to the north-south trending Libertad system, with the majority of the property still to be explored.
Altogether the phase 1 program has demonstrated the potential for a district-scale mesothermal gold discovery with further drilling, as well as the porphyry potential of the area.
"These types of deposits are typified by occurrences of intense nuggety mineralization with more diffused mineralization surrounding them," Banks added.
"As we have progressed in our work at Rueda and Libertad, we have demonstrated that both of these systems are potentially continuous over significant strike lengths and which we know contain zones of bonanza grade gold mineralization and visible gold based on our underground sampling.
"We believe that a large-scale drill program, which we are planning following our phase 2 surface program, will define the broader dimensions of the system and as drilling progresses the probability for discovering high grade shoots within the system increases."
Quia is planning a phase 2 surface exploration program to better define the Libertad and Durmiente targets as well as the other significant mineralized trends that have been identified, and to complete reconnaissance exploration over other parts of the property.
The company plans to follow the phase 2 surface program with a phase 2 drill program to focus on Libertad and Durmiente and potentially to test other targets, subject to the results of the surface program.
In addition to mesothermal vein systems, the district is prospective for porphyry deposits, and the company plans to incorporate both the mesothermal and porphyry models into its exploration approach.
Quia Resources is a gold exploration company focused in Colombia and its 100 per cent owned San Lucas property in the San Lucas gold belt.
San Lucas is among the least explored and most prospective gold belts in Colombia. The exploration completed to date has begun to define the potential discovery of a new gold district in Colombia.
Mawson Resources shares soar, hits 6 metres of 617 g/t gold at Rompas
Scandinavian explorer Mawson Resources (TSE:MAW)
saw its shares jump more than 32 per cent Thursday after announcing the
first drill results from its Rompas gold project in Northern Finland.
The company said results from 14 holes are available so far, out of a planned 39 diamond drill hole program at the site.
The best result returned is 6 metres at a whopping 617 grams per tonne (g/t) gold from 7 metres depth in drill hole ROM0011.
This wider intercept includes 1 metre at 3,540 g/t gold from 11 metres depth, the best result from surface sampling or drilling at the Rompas property to date.
Mawson shares were lately up more than 23 per cent to $1.33 late Thursday morning.
Mawson said it has drill defined a more than 100 metre wide gold anomalous zone, characterized by hydrothermal calc-silicate veining and alteration. Some veins host significant visible gold, the miner said.
First drill testing of the Rompas project has only covered a small percentage of the 6-kilometre-long mineralized trend at the project, the company added.
This means that securing permits to test the best geological targets within the entire trend has now become "even more of a priority", "in order to establish the potential of one of the world's most exciting gold exploration properties," said president and CEO, Michael Hudson.
"With channel sampling over a 6 kilometre strike returning hundreds of high-grade gold samples, the next target to achieve at Rompas was a high-grade drill intersection over a significant width.
"We achieved this aim spectacularly in our first drill program with the best result returned so far from Rompas, being 6 metres at 617g/t gold from 7 metres depth in drill hole ROM0011.
"These are early days at Rompas with only a few percent of the known mineralized area tested to date.
The drill program provided the company the first opportunity to sample continuously across the mineralized footprint.
So far, 37 holes for 3,910 metres have been drilled at south Rompas, with two holes remaining to complete the program.
Drilling was completed on 20 to 40 metres spaced sections with drill holes averaging 100 metres in depth. Drill recoveries are "excellent", Mawson noted, and average close to 100 per cent in fresh rock.
The company said that drilling thus far has not defined the scale, orientation or continuity of the high grade structures, with future exploration work needed to test two different scales.
Firstly, Mawson will need to drill the large known mineralized area over its 6 kilometre trend, and then drill and understand the controls of gold mineralization within individual high grade structures.
Mawson holds 833 claims and claim applications for 75,340 hectares at the Rompas project.
A total of 110 exploration claims that form the core claims at Rompas were granted on October 31, 2010, but do not come into legal force until after a standard appeal process, the company said.
A "key decision point" on the appeal process is expected in the third quarter. After this process is completed, roughly 30 per cent of the 6 kilometre trend will be available to drill.
Regarding the remaining 70 per cent of the trend, drilling and trenching are not permitted. Mawson must apply for a modification of a claim decision by conducting an environmental program, which has already started and is expected to be complete in the fourth quarter.
The miner then anticipates the modification decision over the area will be taken next year.
Mawson Resources' Rompas project is now at the centre of exploration efforts after the company successfully spun-out its South American assets into Darwin Resources (CVE:DAR).
Mawson is a resource acquisition and development company with precious and base metal interests in Finland and Sweden. Its flagship property is Rompas, with sample assays up to 33,200 ppm gold and 56.6% uranium oxide.
Rompas was discovered by French nuclear giant AREVA in 2008 and purchased by Mawson in April 2010.
The company, whose management has a combined in excess of 100 years of experience, has been active in Scandinavia for well over a decade.
It even maintains propertyfield bases in the Swedish town of Malå, where many of the region's core samples are stored and processed and in Lohijarvi in Northern Finland.
Recently, Mawson spun-off a portfolio of early stage copper-gold Peruvian assets, which include the Alto Quemado, Huatiapa, Carrizales, Vicunas and Luminaria projects to Darwin Resources, allowing Mawson to focus on the development of Rompas.
The company said results from 14 holes are available so far, out of a planned 39 diamond drill hole program at the site.
The best result returned is 6 metres at a whopping 617 grams per tonne (g/t) gold from 7 metres depth in drill hole ROM0011.
This wider intercept includes 1 metre at 3,540 g/t gold from 11 metres depth, the best result from surface sampling or drilling at the Rompas property to date.
Mawson shares were lately up more than 23 per cent to $1.33 late Thursday morning.
Mawson said it has drill defined a more than 100 metre wide gold anomalous zone, characterized by hydrothermal calc-silicate veining and alteration. Some veins host significant visible gold, the miner said.
First drill testing of the Rompas project has only covered a small percentage of the 6-kilometre-long mineralized trend at the project, the company added.
This means that securing permits to test the best geological targets within the entire trend has now become "even more of a priority", "in order to establish the potential of one of the world's most exciting gold exploration properties," said president and CEO, Michael Hudson.
"With channel sampling over a 6 kilometre strike returning hundreds of high-grade gold samples, the next target to achieve at Rompas was a high-grade drill intersection over a significant width.
"We achieved this aim spectacularly in our first drill program with the best result returned so far from Rompas, being 6 metres at 617g/t gold from 7 metres depth in drill hole ROM0011.
"These are early days at Rompas with only a few percent of the known mineralized area tested to date.
The drill program provided the company the first opportunity to sample continuously across the mineralized footprint.
So far, 37 holes for 3,910 metres have been drilled at south Rompas, with two holes remaining to complete the program.
Drilling was completed on 20 to 40 metres spaced sections with drill holes averaging 100 metres in depth. Drill recoveries are "excellent", Mawson noted, and average close to 100 per cent in fresh rock.
The company said that drilling thus far has not defined the scale, orientation or continuity of the high grade structures, with future exploration work needed to test two different scales.
Firstly, Mawson will need to drill the large known mineralized area over its 6 kilometre trend, and then drill and understand the controls of gold mineralization within individual high grade structures.
Mawson holds 833 claims and claim applications for 75,340 hectares at the Rompas project.
A total of 110 exploration claims that form the core claims at Rompas were granted on October 31, 2010, but do not come into legal force until after a standard appeal process, the company said.
A "key decision point" on the appeal process is expected in the third quarter. After this process is completed, roughly 30 per cent of the 6 kilometre trend will be available to drill.
Regarding the remaining 70 per cent of the trend, drilling and trenching are not permitted. Mawson must apply for a modification of a claim decision by conducting an environmental program, which has already started and is expected to be complete in the fourth quarter.
The miner then anticipates the modification decision over the area will be taken next year.
Mawson Resources' Rompas project is now at the centre of exploration efforts after the company successfully spun-out its South American assets into Darwin Resources (CVE:DAR).
Mawson is a resource acquisition and development company with precious and base metal interests in Finland and Sweden. Its flagship property is Rompas, with sample assays up to 33,200 ppm gold and 56.6% uranium oxide.
Rompas was discovered by French nuclear giant AREVA in 2008 and purchased by Mawson in April 2010.
The company, whose management has a combined in excess of 100 years of experience, has been active in Scandinavia for well over a decade.
It even maintains propertyfield bases in the Swedish town of Malå, where many of the region's core samples are stored and processed and in Lohijarvi in Northern Finland.
Recently, Mawson spun-off a portfolio of early stage copper-gold Peruvian assets, which include the Alto Quemado, Huatiapa, Carrizales, Vicunas and Luminaria projects to Darwin Resources, allowing Mawson to focus on the development of Rompas.
New Zealand Energy snaps up Taranaki assets, unveils Copper Moki well discoveries
New Zealand Energy (CVE:NZ)
Thursday acquired a number of Taranaki Basin assets from Origin
Energy's (ASX:ORG) regional unit as it announced new oil discoveries in
its Copper Moki-3 (CM-3) and Copper Moki-4 (CM-4) wells.
The oil and natural gas company also announced first-quarter earnings and said it expects starting production from CM-3 toward the end of the second quarter.
"These acquisitions increase New Zealand Energy's presence in New Zealand from both an exploration and infrastructure perspective," said New Zealand Energy's CEO John Proust.
"Controlling a central oil and gas production facility in the Taranaki Basin provides the company with the strategic opportunity and capacity to independently process production, at reduced operating costs, as well as generate cash flow through third-party processing agreements.
"This transaction is consistent with the company's business strategy of adding value for shareholders through acquisition and development."
The company is focused on the production, development and exploration of oil and natural gas prospects in New Zealand, off the coast of the nation's North Island in the Taranaki Basin.
New Zealand Energy's agreement with Origin Energy Resources sees the company acquire four petroleum mining licenses totaling 26,907 acres in the main Taranaki Basin production fairway, as well as the Waihapa Production Station and associated gathering and sales infrastructure.
The company is paying C$42 million in cash and a 5 percent gross overriding royalty, with the deal expected to close in October 2012, contingent on government approvals.
New Zealand Energy will be using funds previously allocated for acquisitions, working capital on hand, and cash flow from production to complete the acquisition.
With a current cash position of $61 million, post-acquisition, New Zealand Energy will remain fully funded to complete its previously announced 2012 capital program, it said, and reiterated its forecasted exit production rate of 3,000 barrels of oil equivalent per day.
New Zealand Energy's president Bruce McIntyre added: "With 170,649 acres of petroleum exploration permits and 26,907 acres of petroleum licenses, the company will control a significant portion of the exploration fairway in the Taranaki Basin.
"We believe that the petroleum licenses are highly prospective across multiple formations, offering exploration, uphole completion and production potential from existing wells and the ability to rapidly drill new wells.
"Along with the prospects on our existing permits, the company's technical team has identified a number of Urenui, Mt. Messenger and Moki leads on the Petroleum Licenses, significantly increasing the company's drilling inventory in the Taranaki Basin."
New Zealand Energy said it has completed an initial production test of CM-3, its third existing production well in the Taranaki Basin. CM-3 flowed through a 24/64-inch choke for seven days, producing 3,570 barrels of 40 degrees API oil and 2,239 million cubic feet of gas at an average rate of 510 barrels per day, and 320 million cubic feet per day.
The company has also started production testing of CM-4. The well is producing 29 degrees API oil, with a higher pour point than Mt. Messenger oil, the company said, and with characteristics similar to Urenui oil being produced from third-party wells in the immediate area.
The company said it will continue to evaluate the well to determine the appropriate artificial lift system to unlock the potential of the Urenui formation in CM-4.
With the completion of the four Copper Moki wells, New Zealand Energy said it has gained "tremendous" insight into the Moki, Mt. Messenger and Urenui formations.
The company has also completed data acquisition of a 100 square-kilometre 3D seismic survey across the Eltham and Alton permits. Information gained from exploration to date and seismic interpretation will guide the oil and gas company's future strategy for both exploration and acquisition in the Taranaki Basin.
New Zealand Energy has drilled five exploration wells in the Taranaki Basin, one on the Alton Permit, and four from the Copper Moki pad on the Eltham Permit.
The Alton Permit is adjacent to Eltham and covers around 119,203 acres, with the company increasing its potential interest in the permit to 65 percent in February.
Continuous production from the Copper Moki-1 well, along with the 16-day flow test from the Copper Moki-2 well, generated positive cash flow of $4.5 million during first quarter of 2012, based on a realized netback averaging approximately US$90 per barrel of oil sold.
During the period that ended ended March 31, the company produced 39,852 barrels and sold 34,659 barrels for total revenues of $4.1 million or $117.94 per barrel.
Total comprehensive loss for the period was $1.9 million, or nil per share.
Aside from its interests in the Taranaki Basin, New Zealand Energy also holds large land positions in the East Coast Basin of North Island, and although under-explored, these basins hold large conventional and non-conventional oil potential.
The oil and natural gas company also announced first-quarter earnings and said it expects starting production from CM-3 toward the end of the second quarter.
"These acquisitions increase New Zealand Energy's presence in New Zealand from both an exploration and infrastructure perspective," said New Zealand Energy's CEO John Proust.
"Controlling a central oil and gas production facility in the Taranaki Basin provides the company with the strategic opportunity and capacity to independently process production, at reduced operating costs, as well as generate cash flow through third-party processing agreements.
"This transaction is consistent with the company's business strategy of adding value for shareholders through acquisition and development."
The company is focused on the production, development and exploration of oil and natural gas prospects in New Zealand, off the coast of the nation's North Island in the Taranaki Basin.
New Zealand Energy's agreement with Origin Energy Resources sees the company acquire four petroleum mining licenses totaling 26,907 acres in the main Taranaki Basin production fairway, as well as the Waihapa Production Station and associated gathering and sales infrastructure.
The company is paying C$42 million in cash and a 5 percent gross overriding royalty, with the deal expected to close in October 2012, contingent on government approvals.
New Zealand Energy will be using funds previously allocated for acquisitions, working capital on hand, and cash flow from production to complete the acquisition.
With a current cash position of $61 million, post-acquisition, New Zealand Energy will remain fully funded to complete its previously announced 2012 capital program, it said, and reiterated its forecasted exit production rate of 3,000 barrels of oil equivalent per day.
New Zealand Energy's president Bruce McIntyre added: "With 170,649 acres of petroleum exploration permits and 26,907 acres of petroleum licenses, the company will control a significant portion of the exploration fairway in the Taranaki Basin.
"We believe that the petroleum licenses are highly prospective across multiple formations, offering exploration, uphole completion and production potential from existing wells and the ability to rapidly drill new wells.
"Along with the prospects on our existing permits, the company's technical team has identified a number of Urenui, Mt. Messenger and Moki leads on the Petroleum Licenses, significantly increasing the company's drilling inventory in the Taranaki Basin."
New Zealand Energy said it has completed an initial production test of CM-3, its third existing production well in the Taranaki Basin. CM-3 flowed through a 24/64-inch choke for seven days, producing 3,570 barrels of 40 degrees API oil and 2,239 million cubic feet of gas at an average rate of 510 barrels per day, and 320 million cubic feet per day.
The company has also started production testing of CM-4. The well is producing 29 degrees API oil, with a higher pour point than Mt. Messenger oil, the company said, and with characteristics similar to Urenui oil being produced from third-party wells in the immediate area.
The company said it will continue to evaluate the well to determine the appropriate artificial lift system to unlock the potential of the Urenui formation in CM-4.
With the completion of the four Copper Moki wells, New Zealand Energy said it has gained "tremendous" insight into the Moki, Mt. Messenger and Urenui formations.
The company has also completed data acquisition of a 100 square-kilometre 3D seismic survey across the Eltham and Alton permits. Information gained from exploration to date and seismic interpretation will guide the oil and gas company's future strategy for both exploration and acquisition in the Taranaki Basin.
New Zealand Energy has drilled five exploration wells in the Taranaki Basin, one on the Alton Permit, and four from the Copper Moki pad on the Eltham Permit.
The Alton Permit is adjacent to Eltham and covers around 119,203 acres, with the company increasing its potential interest in the permit to 65 percent in February.
Continuous production from the Copper Moki-1 well, along with the 16-day flow test from the Copper Moki-2 well, generated positive cash flow of $4.5 million during first quarter of 2012, based on a realized netback averaging approximately US$90 per barrel of oil sold.
During the period that ended ended March 31, the company produced 39,852 barrels and sold 34,659 barrels for total revenues of $4.1 million or $117.94 per barrel.
Total comprehensive loss for the period was $1.9 million, or nil per share.
Aside from its interests in the Taranaki Basin, New Zealand Energy also holds large land positions in the East Coast Basin of North Island, and although under-explored, these basins hold large conventional and non-conventional oil potential.
Copper Fox reveals updated NI 43-101 resource at Schaft Creek, shares rally
Copper Fox Metals (CVE:CUU)
Thursday unveiled its long-awaited updated NI 43-101 resource estimate
for the Schaft Creek copper-gold-molybdenum-silver deposit, highlighting
over 1.2 billion tonnes of measured and indicated resource, including
silver content expected to have a “positive impact on the economics” of
the deposit.
The company’s shares soared over 25 per cent on the back of the news that the results of the new estimate could potentially increase the overall magnitude of the Schaft Creek deposit – already one of the largest undeveloped copper, gold, molybdenum and silver deposits in North America, located in northwest British Columbia.
The resource estimate for the Schaft Creek deposit, using a base case 0.15% copper equivalent cut-off, includes 1.23 billion tonnes grading 0.26% copper, 0.017% molybdenum, 0.19 grams per tonne (g/t) gold and 1.69 g/t silver, containing 7.11 billion pounds copper, 455.3 million pounds molybdenum, 7.37 million ounces gold and 66.74 million ounces silver in the measured and indicated category.
Additionally, Copper Fox reported that the inferred resource is comprised of 597.2 million tonnes grading 0.22% copper, 0.016% molybdenum, 0.17 g/t gold and 1.65 g/t silver, containing 2.87 billion pounds copper, 206.3 million pounds molybdenum, 3.36 million ounces gold and 31.60 million ounces silver.
The company noted that the resource estimate includes the silver content of mineralization in both the Paramount and Liard zones of the deposit.
"The measured and inferred resource categories, the total copper-molybdenum-gold-silver content and the fact that the deposit is still open in several directions (along strike) indicates a new dimension to the potential size of the Schaft Creek deposit," said president and CEO Elmer Stewart.
"Additional drilling will have to be completed to realize this potential and define the un-explored portions of the Schaft Creek deposit.
"It is noteworthy that the current measured and indicated resource exceeds 1.2 billion tonnes and incorporates the silver content which is expected to have a positive impact on the economics of the Schaft Creek deposit."
Stewart said that the important criteria in selecting a cut-off grade in a resource estimate is the average grade of the metals, tonnes and contained metal content.
The resource estimate shows substantial increases in both tonnes and copper-molybdenum-gold-silver content at both the 0.15% and 0.20% copper-equivalent (CuEq) levels of cut-off, he continued.
"Given the very minimal decrease in average grade for each metal, we have been able to select a 0.15% CuEq cut-off," said Stewart.
"The base case results will be used to complete the feasibility study for the Schaft Creek project, which is expected to be completed by mid to late summer 2012."
The latest resource report, prepared by California-based Tetra Tech, used a total of 286 drill holes with 16,501 composited (4 metre) drill hole intervals (approximately 65,843 metres) at the Schaft Creek deposit.
The new resource compares to the one released last summer, prepared by AMEC Americas, which indicated that at a 0.20% copper equivalent cut-off, the deposit held 1.01 billion tonnes, grading 0.27% copper, 0.017% molybdenum and 0.18 grams per tonne (g/t) of gold, for a total of 6.1 billion pounds of contained copper, 383 million pounds of molybdenum, and 5.8 million ounces of gold.
Inferred resources, at the same cut-off, were estimated in July 2011 at 283.6 million tonnes at a copper equivalent grade of 0.39%, containing a further 1.5 billion pounds of copper, 69 million pounds of molybdenum, and 1.3 million ounces of gold.
Calgary-based Copper Fox is a resource development company focused on the exploration and development of the Schaft Creek deposit.
The feasibility study for the project, also led by Tetra Tech, will be based on a minimum 120,000 tonnes per day (tpd) open pit mine. In 2008, the project was estimated to have a before tax net present value of $2.8 billion over a 23-year mine life, at an 8% discount rate.
Copper Fox holds title and a 100 per cent working interest in the 44,265.52-hectare Schaft Creek project.
This week, the company also said it had wrapped up a 2,500 line kilometre magnetic airborne survey, as well as announced the acquisition of more mineral tenures next to Schaft Creek.
The group of five mineral tenures is referred to as the Jay/Scotch group and has had a "considerable amount" of historical exploration completed, said the company.
The alteration and copper-gold-silver metal signature at Jay/Scotch show many similarities to the southern portion of the Paramount zone in the Schaft Creek deposit, Copper Fox reported.
With regards to exploration plans, the company said it intends to start diamond drilling sometime in early June on the discovery zone about 1,200 metres north of Schaft Creek to test the width and strike extent of mineralization.
Earlier this month, Copper Fox said the 2012 exploration program will focus on the regional evaluation and exploration of the project outside the limits of the Schaft Creek and is expected to cost approximately $10.0 million.
Drilling will be conducted in two phases: phase one consists of 5,000 metres of drilling to test the targets at the discovery zone, and phase two will consist of at least 5,000 metres to follow-up zones of mineralization intersected during phase one drilling.
Shares of Copper Fox were lately up 19.8 per cent at $1.21 Thursday early afternoon.
The company’s shares soared over 25 per cent on the back of the news that the results of the new estimate could potentially increase the overall magnitude of the Schaft Creek deposit – already one of the largest undeveloped copper, gold, molybdenum and silver deposits in North America, located in northwest British Columbia.
The resource estimate for the Schaft Creek deposit, using a base case 0.15% copper equivalent cut-off, includes 1.23 billion tonnes grading 0.26% copper, 0.017% molybdenum, 0.19 grams per tonne (g/t) gold and 1.69 g/t silver, containing 7.11 billion pounds copper, 455.3 million pounds molybdenum, 7.37 million ounces gold and 66.74 million ounces silver in the measured and indicated category.
Additionally, Copper Fox reported that the inferred resource is comprised of 597.2 million tonnes grading 0.22% copper, 0.016% molybdenum, 0.17 g/t gold and 1.65 g/t silver, containing 2.87 billion pounds copper, 206.3 million pounds molybdenum, 3.36 million ounces gold and 31.60 million ounces silver.
The company noted that the resource estimate includes the silver content of mineralization in both the Paramount and Liard zones of the deposit.
"The measured and inferred resource categories, the total copper-molybdenum-gold-silver content and the fact that the deposit is still open in several directions (along strike) indicates a new dimension to the potential size of the Schaft Creek deposit," said president and CEO Elmer Stewart.
"Additional drilling will have to be completed to realize this potential and define the un-explored portions of the Schaft Creek deposit.
"It is noteworthy that the current measured and indicated resource exceeds 1.2 billion tonnes and incorporates the silver content which is expected to have a positive impact on the economics of the Schaft Creek deposit."
Stewart said that the important criteria in selecting a cut-off grade in a resource estimate is the average grade of the metals, tonnes and contained metal content.
The resource estimate shows substantial increases in both tonnes and copper-molybdenum-gold-silver content at both the 0.15% and 0.20% copper-equivalent (CuEq) levels of cut-off, he continued.
"Given the very minimal decrease in average grade for each metal, we have been able to select a 0.15% CuEq cut-off," said Stewart.
"The base case results will be used to complete the feasibility study for the Schaft Creek project, which is expected to be completed by mid to late summer 2012."
The latest resource report, prepared by California-based Tetra Tech, used a total of 286 drill holes with 16,501 composited (4 metre) drill hole intervals (approximately 65,843 metres) at the Schaft Creek deposit.
The new resource compares to the one released last summer, prepared by AMEC Americas, which indicated that at a 0.20% copper equivalent cut-off, the deposit held 1.01 billion tonnes, grading 0.27% copper, 0.017% molybdenum and 0.18 grams per tonne (g/t) of gold, for a total of 6.1 billion pounds of contained copper, 383 million pounds of molybdenum, and 5.8 million ounces of gold.
Inferred resources, at the same cut-off, were estimated in July 2011 at 283.6 million tonnes at a copper equivalent grade of 0.39%, containing a further 1.5 billion pounds of copper, 69 million pounds of molybdenum, and 1.3 million ounces of gold.
Calgary-based Copper Fox is a resource development company focused on the exploration and development of the Schaft Creek deposit.
The feasibility study for the project, also led by Tetra Tech, will be based on a minimum 120,000 tonnes per day (tpd) open pit mine. In 2008, the project was estimated to have a before tax net present value of $2.8 billion over a 23-year mine life, at an 8% discount rate.
Copper Fox holds title and a 100 per cent working interest in the 44,265.52-hectare Schaft Creek project.
This week, the company also said it had wrapped up a 2,500 line kilometre magnetic airborne survey, as well as announced the acquisition of more mineral tenures next to Schaft Creek.
The group of five mineral tenures is referred to as the Jay/Scotch group and has had a "considerable amount" of historical exploration completed, said the company.
The alteration and copper-gold-silver metal signature at Jay/Scotch show many similarities to the southern portion of the Paramount zone in the Schaft Creek deposit, Copper Fox reported.
With regards to exploration plans, the company said it intends to start diamond drilling sometime in early June on the discovery zone about 1,200 metres north of Schaft Creek to test the width and strike extent of mineralization.
Earlier this month, Copper Fox said the 2012 exploration program will focus on the regional evaluation and exploration of the project outside the limits of the Schaft Creek and is expected to cost approximately $10.0 million.
Drilling will be conducted in two phases: phase one consists of 5,000 metres of drilling to test the targets at the discovery zone, and phase two will consist of at least 5,000 metres to follow-up zones of mineralization intersected during phase one drilling.
Shares of Copper Fox were lately up 19.8 per cent at $1.21 Thursday early afternoon.
NeoStem to present at 6 conferences in June
Cell therapy-focused biotech company NeoStem (NYSE:NBS) announced Thursday that its management will present at six conferences in June.
The company will present at the International Society for Cellular Therapy Annual Meeting, the National Investment Banking Association Conference, the International Society for Stem Cell Research 10th Annual Meeting, the Biotechnology Industry Organization (BIO )International Conference, the Alliance for Regenerative Medicine -- Clinical Outlooks for Regenerative Medicine 2012, and lastly, the Marcum's Inaugural MicroCap Conference.
The International Society for Cellular Therapy Annual Meeting will be hosted on June 6th and June 8th at the Sheraton Seattle, in Seattle, Washington.
The conference taking place on June 6th will be held at 6:00 pm (PDT). NeoStem’s presenter is Robert A. Preti, the president and chief scientific officer of Progenitor Cell Therapy (PCT). He will give a presentation entitled “On the Entrepreneurial Challenges of Cell Therapy.”
The conference taking place on June 8th will be held at 1:15 pm (PDT). NeoStem’s presenter is Timothy Fong, the vice president of technology and product development of PCT. He will give a presentation entitled “From Product: the Pathway from Academic Innovation to a Commercial Manufacturing Process.”
Meanwhile, the National Investment Banking Association Conference will be hosted on June 7th at 10:00 AM (EDT) at the Le Parker Meridien Hotel, in New York, New York. The presenter will be Robin L. Smith, NeoStem’s chairman and CEO.
The International Society for Stem Cell Research 10th Annual Meeting will be hosted on June 15th at 6:00 PM (JST) at the Pacifico Yokohama, in Yokohama, Japan. The presenters will be Denis Rodgerson, NeoStem’s director of stem cell science, and Aaron M. Havens of the University of Michigan. The team will present a poster entitled “First Demonstration That Human Very Small Emryonic-Like (VSEL) Stem Cells Can Regenerate Human Bone in a Model of Skeletal Repair.”
The Biotechnology Industry Organization (BIO) International Conference will be hosted on June 19th at 9:15 AM (EDT) at the Boston Convention & Exhibition Center, in Boston, Massachusetts. The presenter will again be CEO Smith.
The Alliance for Regenerative Medicine -- Clinical Outlooks for Regenerative Medicine 2012 will be hosted on June 19th at 2:45 PM (EDT) at the Starr Center, Schepens Eye Research Institute, in Boston, Massachusetts. The presenter will be Jonathon Sackner-Bernstein, vice president of clinical development and regulatory affairs. He will present on the cardiovascular panel about the company's treatment Amorcyte.
Finally, the Marcum's Inaugural MicroCap Conference will be hosted on June 20th at the Roosevelt Hotel, in New York, New York, with Smith presenting.
NeoStem’s aim is to become a single source for the collection, storage, manufacturing, therapeutic development and transportation of cells for cell-based medicine.
The company most recently appeared in Bloomberg Television’s "Talking Stock" on May 14th, where CEO Smith discussed the company’s latest stem cell therapy trial testing a regenerative therapy for heart attack survivors.
The treatment uses an autologous bone marrow-derived stem cell called CD34, to limit the damage of heart muscle that develops following an acute heart attack and prevents ventricular remodeling, which is the accepted mechanism responsible for clinical progression and increased risk.
Smith said the company plans to have results from the trial in 2013.
The company released its first quarter results earlier in May, saying it had increased revenues by 13 per cent.
Revenue rose to $22.1 million from $19.6 million, while the underlying loss for the three months to March was $2.7 million, excluding non-cash charges.
The company also owns a 51 percent stake in a Chinese generic pharmaceutical manufacturing company Suzhou Erye Pharmaceutical, and is looking to sell its stake in Suzhou to bolster its cell therapy business.
NeoStem also has a network of stem cell therapeutic providers in China.
The company will present at the International Society for Cellular Therapy Annual Meeting, the National Investment Banking Association Conference, the International Society for Stem Cell Research 10th Annual Meeting, the Biotechnology Industry Organization (BIO )International Conference, the Alliance for Regenerative Medicine -- Clinical Outlooks for Regenerative Medicine 2012, and lastly, the Marcum's Inaugural MicroCap Conference.
The International Society for Cellular Therapy Annual Meeting will be hosted on June 6th and June 8th at the Sheraton Seattle, in Seattle, Washington.
The conference taking place on June 6th will be held at 6:00 pm (PDT). NeoStem’s presenter is Robert A. Preti, the president and chief scientific officer of Progenitor Cell Therapy (PCT). He will give a presentation entitled “On the Entrepreneurial Challenges of Cell Therapy.”
The conference taking place on June 8th will be held at 1:15 pm (PDT). NeoStem’s presenter is Timothy Fong, the vice president of technology and product development of PCT. He will give a presentation entitled “From Product: the Pathway from Academic Innovation to a Commercial Manufacturing Process.”
Meanwhile, the National Investment Banking Association Conference will be hosted on June 7th at 10:00 AM (EDT) at the Le Parker Meridien Hotel, in New York, New York. The presenter will be Robin L. Smith, NeoStem’s chairman and CEO.
The International Society for Stem Cell Research 10th Annual Meeting will be hosted on June 15th at 6:00 PM (JST) at the Pacifico Yokohama, in Yokohama, Japan. The presenters will be Denis Rodgerson, NeoStem’s director of stem cell science, and Aaron M. Havens of the University of Michigan. The team will present a poster entitled “First Demonstration That Human Very Small Emryonic-Like (VSEL) Stem Cells Can Regenerate Human Bone in a Model of Skeletal Repair.”
The Biotechnology Industry Organization (BIO) International Conference will be hosted on June 19th at 9:15 AM (EDT) at the Boston Convention & Exhibition Center, in Boston, Massachusetts. The presenter will again be CEO Smith.
The Alliance for Regenerative Medicine -- Clinical Outlooks for Regenerative Medicine 2012 will be hosted on June 19th at 2:45 PM (EDT) at the Starr Center, Schepens Eye Research Institute, in Boston, Massachusetts. The presenter will be Jonathon Sackner-Bernstein, vice president of clinical development and regulatory affairs. He will present on the cardiovascular panel about the company's treatment Amorcyte.
Finally, the Marcum's Inaugural MicroCap Conference will be hosted on June 20th at the Roosevelt Hotel, in New York, New York, with Smith presenting.
NeoStem’s aim is to become a single source for the collection, storage, manufacturing, therapeutic development and transportation of cells for cell-based medicine.
The company most recently appeared in Bloomberg Television’s "Talking Stock" on May 14th, where CEO Smith discussed the company’s latest stem cell therapy trial testing a regenerative therapy for heart attack survivors.
The treatment uses an autologous bone marrow-derived stem cell called CD34, to limit the damage of heart muscle that develops following an acute heart attack and prevents ventricular remodeling, which is the accepted mechanism responsible for clinical progression and increased risk.
Smith said the company plans to have results from the trial in 2013.
The company released its first quarter results earlier in May, saying it had increased revenues by 13 per cent.
Revenue rose to $22.1 million from $19.6 million, while the underlying loss for the three months to March was $2.7 million, excluding non-cash charges.
The company also owns a 51 percent stake in a Chinese generic pharmaceutical manufacturing company Suzhou Erye Pharmaceutical, and is looking to sell its stake in Suzhou to bolster its cell therapy business.
NeoStem also has a network of stem cell therapeutic providers in China.
Cayden Resources intercepts 24 metres of 1.65 g/t gold in new trench at La Magnetita
Junior mining exploration company Cayden Resources (CVE:CYD)
announced Thursday that it has received new trench assays from the La
Magnetita prospect at its flagship Morelos Sur gold project in Guerro,
Mexico.
Highlights include 24 metres of 1.65 grams per tonne (g/t) gold, 25 metres of 0.72 g/t gold, and 25 metres of 0.52 g/t gold.
The company reported that the intercepts are in the western part of the five kilometre long soil anomaly at the site.
To date, approximately one kilometre of the anomaly has had extensive road and trench construction, with the mineralized trenches occurring over a 700 metre strike length.
An additional 363 trench samples are pending assay, and will be released shortly, the company said.
Cayden has also been constructing a detailed geologic map of the La Magnetita area and has begun drill pad construction.
The company anticipates drilling at La Magnetita to commence within a week’s time.
"Despite only receiving assays from less than 20% of the extensive La Magnetita gold-in-soil anomaly, we are excited to begin drilling while simultaneously continuing the expansion of our trench and road network to fully cover this large anomaly," said Cayden’s president and CEO, Ivan Bebek.
"Cayden is also continuing its drill program at Las Calles and expects to release more results from there in the near future."
The company focuses on the acquisition, exploration and development of precious metal projects located throughout the Americas, currently having three projects located in Guerrero and Jalisco, Mexico, and Nevada, USA.
Earlier in May, Cayden identified "significant gold" in a soil anomaly at the La Magnetita deposit. The company had received over 1,200 assays from its La Magnetita and La Joya soil program, which indicated an extensive gold anomalous area that is up to 5 kilometres in an east-west direction by 2 kilometres in a north-south direction.
Cayden said at the time that the soil anomaly strongly suggests that the La Magnetita and La Joya targets are part of the same very large hydrothermal system.
Shares of Cayden increased 3.48 percent to $1.19 Thursday morning.
Highlights include 24 metres of 1.65 grams per tonne (g/t) gold, 25 metres of 0.72 g/t gold, and 25 metres of 0.52 g/t gold.
The company reported that the intercepts are in the western part of the five kilometre long soil anomaly at the site.
To date, approximately one kilometre of the anomaly has had extensive road and trench construction, with the mineralized trenches occurring over a 700 metre strike length.
An additional 363 trench samples are pending assay, and will be released shortly, the company said.
Cayden has also been constructing a detailed geologic map of the La Magnetita area and has begun drill pad construction.
The company anticipates drilling at La Magnetita to commence within a week’s time.
"Despite only receiving assays from less than 20% of the extensive La Magnetita gold-in-soil anomaly, we are excited to begin drilling while simultaneously continuing the expansion of our trench and road network to fully cover this large anomaly," said Cayden’s president and CEO, Ivan Bebek.
"Cayden is also continuing its drill program at Las Calles and expects to release more results from there in the near future."
The company focuses on the acquisition, exploration and development of precious metal projects located throughout the Americas, currently having three projects located in Guerrero and Jalisco, Mexico, and Nevada, USA.
Earlier in May, Cayden identified "significant gold" in a soil anomaly at the La Magnetita deposit. The company had received over 1,200 assays from its La Magnetita and La Joya soil program, which indicated an extensive gold anomalous area that is up to 5 kilometres in an east-west direction by 2 kilometres in a north-south direction.
Cayden said at the time that the soil anomaly strongly suggests that the La Magnetita and La Joya targets are part of the same very large hydrothermal system.
Shares of Cayden increased 3.48 percent to $1.19 Thursday morning.
Ursa Major shareholders vote in favour of Prophecy Platinum merger
Prophecy Platinum Corp. (CVE:NKL) said Ursa Major Minerals (TSE:UMJ) shareholders approved the previously announced merger, which will create a mid-tier resource company.
Ursa, which applied to delist its stock from the Toronto Stock Exchange, held a shareholder meeting yesterday where 98.92 percent voted in favour of the transaction.
Prophecy will issue one common share in exchange for every 25 outstanding shares of Ursa. Based on the 79.7 million Ursa shares, Prophecy is expected to issue 3.19 million shares.
"We are pleased the overwhelming support from Ursa Major's shareholders to participate in a combined company with an outstanding portfolio of assets and substantially improved market capitalization and liquidity," Ursa’s chief executive Richard Sutcliffe said in a statement.
The two companies said that they expect the deal to be completed shortly.
The merger, which was first announced on March 1, will create a mid-tier resource company with a pipeline of Platinum and Nickel
projects including the Shakespeare Nickel-copper mine near Sudbury, and the Wellgreen project, in Yukon Territory and Manitoba’s Lynn Lake.
Shakespeare has a probable reserve of 11.82 million tonnes grading 0.33% Nickel, 0.35% copper and 0.02% cobalt with 0.33 grams per tonne (g/t) Platinum. This includes 0.36 g/t palladium and 0.18 g/t gold.
Prophecy is a Canadian Nickel and Platinum group metals exploration explorer with projects in Canada, Argentina and Uruguay. In
Canada, it holds the Lynn Lake project in Manitoba, as well as Wellgreen.
The Wellgreen project in the Yukon has over 10 million ounces of Platinum-palladium-gold inferred resource. Active drilling is ongoing with a pending preliminary economic assessment study.
Manitoba's Lynn Lake Nickel-copper has over 262 million pounds of Nickel and 138 million pounds of copper in the measured and indicated categories.
Prophecy, which has a market cap of $112.9 million, saw its share price trade at $2.04 each on the Toronto Venture Exchange.
Ursa, which applied to delist its stock from the Toronto Stock Exchange, held a shareholder meeting yesterday where 98.92 percent voted in favour of the transaction.
Prophecy will issue one common share in exchange for every 25 outstanding shares of Ursa. Based on the 79.7 million Ursa shares, Prophecy is expected to issue 3.19 million shares.
"We are pleased the overwhelming support from Ursa Major's shareholders to participate in a combined company with an outstanding portfolio of assets and substantially improved market capitalization and liquidity," Ursa’s chief executive Richard Sutcliffe said in a statement.
The two companies said that they expect the deal to be completed shortly.
The merger, which was first announced on March 1, will create a mid-tier resource company with a pipeline of Platinum and Nickel
projects including the Shakespeare Nickel-copper mine near Sudbury, and the Wellgreen project, in Yukon Territory and Manitoba’s Lynn Lake.
Shakespeare has a probable reserve of 11.82 million tonnes grading 0.33% Nickel, 0.35% copper and 0.02% cobalt with 0.33 grams per tonne (g/t) Platinum. This includes 0.36 g/t palladium and 0.18 g/t gold.
Prophecy is a Canadian Nickel and Platinum group metals exploration explorer with projects in Canada, Argentina and Uruguay. In
Canada, it holds the Lynn Lake project in Manitoba, as well as Wellgreen.
The Wellgreen project in the Yukon has over 10 million ounces of Platinum-palladium-gold inferred resource. Active drilling is ongoing with a pending preliminary economic assessment study.
Manitoba's Lynn Lake Nickel-copper has over 262 million pounds of Nickel and 138 million pounds of copper in the measured and indicated categories.
Prophecy, which has a market cap of $112.9 million, saw its share price trade at $2.04 each on the Toronto Venture Exchange.
Feronia boosts Q1 revenues by 31%
Africa-focused farming and oil palm plantation company Feronia (CVE:FRN) narrowed first-quarter losses as revenue grew 31 percent as the company reported a pick-up in yields.
Feronia's focus is on its arable farming operations and oil palm operations in the Democratic Republic of Congo, Africa. It employs Brazilian and US-style agriculture systems at its arable operations for the greatest efficiency and economies of scale.
The company's mission is to deliver shareholder value by growing, processing and selling high quality and high value food products to local markets.
For the quarter ended March 31, revenue was up 31 percent to $1.9 million from $1.5 million last year.
The company achieved a fresh fruit bunch (FFB) yield of 1.74 tonnes per hectare for the quarter compared to 0.94 tonnes per hectare a year earlier. Feronia said that net loss for the quarter narrowed to $2.4 million, or 2 cents per share, from a loss of $7.2 million or 7 cents per share a year earlier.
"In the first quarter of 2012 Feronia continued to invest in creating long-term value at its oil palm plantations while focusing on maximizing yields and cash flow from existing plantings," Feronia's CEO Bill Dry said.
"We resumed our re-planting initiative on schedule in March and have planted 1,370 hectares of oil palms year-to-date as of May 27, 2012.
"The focus at our arable farming operations continues to be on proving compelling commercial yields for rice and edible beans.
"During the first quarter, we planted 305 hectares of rice and 60 hectares of edible beans with an additional 140 hectares of edible beans planted in April. We expect to harvest both of these crops in June of this year"
A gross margin of 40 percent was achieved at Feronia's palm oil operations compared to 35 percent in the same period in 2011. As at March 31, the company had a cash balance of $9.3 million.
Total producing hectares was 10,213 compared to 12,753 a year earlier. The reduction in the total number of producing hectares was due to the reclassification of the ages of palm crops.
Palm oil extraction rate improved to 18.31 percent from 17.27 percent a year earlier.
In March, the company said that 60 hectares of edible beans were sown and in April, a further 140 hectares of edible beans were sown for a total of 200 hectares as part of the company's strategy of smaller scale, proof-of-yield plantings.
These will build on the company's knowledge of local conditions in preparation for future large-scale planting.
Looking ahead, Feronia's strategy for its oil palm plantations business continues to be to maximize returns from existing plantings while investing in new plantings and the required processing capacity.
In the first quarter of 2012, the company applied fertiliser to 508 hectares of palms aged between 4 and 16 years, re-planted 264 hectares of oil palms (1,370 hectares year-to-date as of May 27, 2012) and made further progress towards the completion of the new palm oil mill at Yaligimba.
In the coming quarters, Feronia said it will remain focused on increasing yields through improved harvesting and collection practices and the application of fertiliser, replanting oil palms, and completing the Yaligimba mill.
Commissioning of the new palm oil mill at Yaligimba is expected to provide the company with immediate access to an additional 3,903 hectares of mature oil palms for the production of crude palm oil, an increase of 62.1 percent from the area currently accessible.
The company's primary objective with respect to its arable farming business for the remainder of 2012 is to prove commercial yields for rice and beans at its operation in Bas Congo.
Feronia has the infrastructure in place for drying, storing, and processing crops produced on 4,000 to 6,000 hectares, depending on yields achieved.
The company added that it does not intend to expand the arable farming operation until commercially compelling yields have been achieved on a scale of up to 2,000 hectares. Once such yields have been achieved, the company will consider expanding the scale of the planting programme.
With excess processing capacity in place, such an expansion can occur relatively quickly and with minimal capital expenditure outside of costs associated to land clearing and preparation.
Feronia's executive chairman Ravi Sood added: "In the coming quarters Feronia expects to complete several key investments."
"In the second quarter the company expects to complete the construction and commissioning of the processing facilities for its arable farming operation. In the fourth quarter, the company expects to complete the construction and commissioning of the new palm oil mill at the Yaligimba plantation.
"Completion of each of these facilities will constitute a major milestone for the company. It is well positioned to leverage this significant capital investment to grow for the next many years."
Feronia's focus is on its arable farming operations and oil palm operations in the Democratic Republic of Congo, Africa. It employs Brazilian and US-style agriculture systems at its arable operations for the greatest efficiency and economies of scale.
The company's mission is to deliver shareholder value by growing, processing and selling high quality and high value food products to local markets.
For the quarter ended March 31, revenue was up 31 percent to $1.9 million from $1.5 million last year.
The company achieved a fresh fruit bunch (FFB) yield of 1.74 tonnes per hectare for the quarter compared to 0.94 tonnes per hectare a year earlier. Feronia said that net loss for the quarter narrowed to $2.4 million, or 2 cents per share, from a loss of $7.2 million or 7 cents per share a year earlier.
"In the first quarter of 2012 Feronia continued to invest in creating long-term value at its oil palm plantations while focusing on maximizing yields and cash flow from existing plantings," Feronia's CEO Bill Dry said.
"We resumed our re-planting initiative on schedule in March and have planted 1,370 hectares of oil palms year-to-date as of May 27, 2012.
"The focus at our arable farming operations continues to be on proving compelling commercial yields for rice and edible beans.
"During the first quarter, we planted 305 hectares of rice and 60 hectares of edible beans with an additional 140 hectares of edible beans planted in April. We expect to harvest both of these crops in June of this year"
A gross margin of 40 percent was achieved at Feronia's palm oil operations compared to 35 percent in the same period in 2011. As at March 31, the company had a cash balance of $9.3 million.
Total producing hectares was 10,213 compared to 12,753 a year earlier. The reduction in the total number of producing hectares was due to the reclassification of the ages of palm crops.
Palm oil extraction rate improved to 18.31 percent from 17.27 percent a year earlier.
In March, the company said that 60 hectares of edible beans were sown and in April, a further 140 hectares of edible beans were sown for a total of 200 hectares as part of the company's strategy of smaller scale, proof-of-yield plantings.
These will build on the company's knowledge of local conditions in preparation for future large-scale planting.
Looking ahead, Feronia's strategy for its oil palm plantations business continues to be to maximize returns from existing plantings while investing in new plantings and the required processing capacity.
In the first quarter of 2012, the company applied fertiliser to 508 hectares of palms aged between 4 and 16 years, re-planted 264 hectares of oil palms (1,370 hectares year-to-date as of May 27, 2012) and made further progress towards the completion of the new palm oil mill at Yaligimba.
In the coming quarters, Feronia said it will remain focused on increasing yields through improved harvesting and collection practices and the application of fertiliser, replanting oil palms, and completing the Yaligimba mill.
Commissioning of the new palm oil mill at Yaligimba is expected to provide the company with immediate access to an additional 3,903 hectares of mature oil palms for the production of crude palm oil, an increase of 62.1 percent from the area currently accessible.
The company's primary objective with respect to its arable farming business for the remainder of 2012 is to prove commercial yields for rice and beans at its operation in Bas Congo.
Feronia has the infrastructure in place for drying, storing, and processing crops produced on 4,000 to 6,000 hectares, depending on yields achieved.
The company added that it does not intend to expand the arable farming operation until commercially compelling yields have been achieved on a scale of up to 2,000 hectares. Once such yields have been achieved, the company will consider expanding the scale of the planting programme.
With excess processing capacity in place, such an expansion can occur relatively quickly and with minimal capital expenditure outside of costs associated to land clearing and preparation.
Feronia's executive chairman Ravi Sood added: "In the coming quarters Feronia expects to complete several key investments."
"In the second quarter the company expects to complete the construction and commissioning of the processing facilities for its arable farming operation. In the fourth quarter, the company expects to complete the construction and commissioning of the new palm oil mill at the Yaligimba plantation.
"Completion of each of these facilities will constitute a major milestone for the company. It is well positioned to leverage this significant capital investment to grow for the next many years."
Gold Resource Corp declares May dividend
Gold Resource Corp. (AMEX:GORO) declared after markets closed Tuesday its monthly dividend of six cents per share for May.
The low-cost gold producer said it would payout the monthly dividend on June 25, to shareholders on record as of June 11.
Last month, the company increased its monthly dividend by 20 percent to six cents per common share.
The company offers shareholders the option to convert their monthly cash dividend into either physical gold or silver. Shareholders can now set up an “individual bullion account”, where cash dividends are converted into Gold Resource Corp “Double Eagle” one ounce .999 fine gold or one ounce .999 fine silver rounds.
Gold Resource started production from its El Aguila project in Oaxaca, Mexico in July 2010. The May dividend marks the 23rd straight monthly dividend declared by the company.
Earlier this month, the company announced record results for its first quarter that it said set a "strong base", with gold equivalent production quadrupling year-over-year and mine gross profit more than tripling.
For the three months to March 31, the US-based gold producer recorded net income of $16.1 million, or 29 cents per diluted share, versus a profit of $2.03 million, or 4 cents per diluted share, a year earlier.
Gross profit from the company's El Aguila mine in Oaxaca, Mexico totalled $33.7 million, up 281 percent from $8.84 million in the first quarter of 2011.
The company said it paid $7.9 million to shareholders in dividends for the quarter, or 15 cents per share, and converted $2.9 million of its treasury into physical gold and silver.
El Aguila is located 120 kilometres southeast of the state capital city of Oaxaca, Mexico and has yielded several strong metal samples, including 36.0 grams per tonne (g/t) gold, and 3,100 g/t silver.
In April, the company reported preliminary results from a resource estimate compiled from drilling data at its underground La Arista vein system at the El Aguila project in Mexico.
Measured and indicated resources, over a 10-year mine life, include roughly 1.4 million gold equivalent ounces at a one gram gold equivalent cut-off from 4.4 million tonnes grading 2.13 grams per tonne (g/t) gold, 212 g/t silver, 0.32% copper, 1.23% lead and 4.11% zinc.
In March of last year, the company announced that it had begun the transition from processing lower grade, open pit ore, to processing underground ore from the high grade La Arista deposit at El Aguila.
The company has 100 percent interest in six potential high-grade gold and silver properties in Mexico's southern state of Oaxaca.
The low-cost gold producer said it would payout the monthly dividend on June 25, to shareholders on record as of June 11.
Last month, the company increased its monthly dividend by 20 percent to six cents per common share.
The company offers shareholders the option to convert their monthly cash dividend into either physical gold or silver. Shareholders can now set up an “individual bullion account”, where cash dividends are converted into Gold Resource Corp “Double Eagle” one ounce .999 fine gold or one ounce .999 fine silver rounds.
Gold Resource started production from its El Aguila project in Oaxaca, Mexico in July 2010. The May dividend marks the 23rd straight monthly dividend declared by the company.
Earlier this month, the company announced record results for its first quarter that it said set a "strong base", with gold equivalent production quadrupling year-over-year and mine gross profit more than tripling.
For the three months to March 31, the US-based gold producer recorded net income of $16.1 million, or 29 cents per diluted share, versus a profit of $2.03 million, or 4 cents per diluted share, a year earlier.
Gross profit from the company's El Aguila mine in Oaxaca, Mexico totalled $33.7 million, up 281 percent from $8.84 million in the first quarter of 2011.
The company said it paid $7.9 million to shareholders in dividends for the quarter, or 15 cents per share, and converted $2.9 million of its treasury into physical gold and silver.
El Aguila is located 120 kilometres southeast of the state capital city of Oaxaca, Mexico and has yielded several strong metal samples, including 36.0 grams per tonne (g/t) gold, and 3,100 g/t silver.
In April, the company reported preliminary results from a resource estimate compiled from drilling data at its underground La Arista vein system at the El Aguila project in Mexico.
Measured and indicated resources, over a 10-year mine life, include roughly 1.4 million gold equivalent ounces at a one gram gold equivalent cut-off from 4.4 million tonnes grading 2.13 grams per tonne (g/t) gold, 212 g/t silver, 0.32% copper, 1.23% lead and 4.11% zinc.
In March of last year, the company announced that it had begun the transition from processing lower grade, open pit ore, to processing underground ore from the high grade La Arista deposit at El Aguila.
The company has 100 percent interest in six potential high-grade gold and silver properties in Mexico's southern state of Oaxaca.
Wednesday, 30 May 2012
Century Iron appoints Ghislain Arel as mine development executive
Canadian ire ore explorer Century Iron Mines (TSE:FER) announced Wednesday the appointment of Ghislain Arel as mine development executive.
Arel will report directly to the company’s senior vice president of logistics, mine development and operations, Hubert Vallée.
Based in Montreal, Arel’s role will be to lead the supervision of mining operations, and assist in the company’s development and implementation of mining exploration plans as it brings its major iron ore bodies into production over the next five years and beyond.
His initial responsibilities will revolve around the creation of mining development plans for the production of direct shipping ore.
Arel is a graduate engineer of Université Laval, with 17 years of experience at several mining companies and mining consulting firms.
Most recently, he worked for Consolidated Thompson Iron Mines Limited, having the role of assistant general manager at the Mine and Mill Plant, Open Pit Operation.
Here, he was responsible for the management and administration of mining and ore processing, as well as for a large operating and capital budget of approximately a quarter of a billion dollars.
Arel was in charge of the company’s transition from start-up to full production, with over 200 employees and multidisciplinary teams under his wing.
“As a key member of the team which took the first world class iron ore mine into production in decades in Canada, Ghislain will contribute greatly to realizing Century Iron’s vision to be one of the few mining companies to bring a DSO deposit into production in the Labrador Trough and become one of the largest and best iron ore producing companies in Canada over the next few years," said Century’s president, Sandy Chim.
“With the largest iron ore land claim holdings in Canada and partnering with two Fortune Global 500 Chinese SOE companies, WISCO and MinMetals, we are well positioned to achieve this."
Prior to his time at Consolidated Thompson, Arel was director of the mining sector for Canadian engineering service firm Genivar, the chief engineer of mining operations for Quebec Iron and Titanium, a wholly owned subsidiary of Rio Tinto and McWatters Mining Company.
"Gishlain is one of the few mining engineers who have taken an iron ore mine from development to production," said Century’s senior vice president, Hubert Vallée.
"His joining of Century strengthens our mining team and adds invaluable iron ore mine development experience and expertise to our core competence."
Canada’s largest holder of iron ore land claims, Century Iron, has properties in Quebec, Newfoundland and Labrador, boasting NI 43-101 compliant resources approaching 1 billion tonnes.
The company has various interests in separate iron ore exploration projects known as Duncan Lake, Attikamagen, Sunny Lake, Astray, Grenville, Menihek, and Schefferville.
Iron ore is the ore used to make steel.
The company currently has 51 percent interest of the Duncan Lake project, with an option to increase to a 65 percent interest under an option and joint venture agreement with Augyva Mining Resources.
The company has earned a 50 percent interest in the Attikamagen project, with a right to acquire up to a 60 percent interest under an option and joint venture agreement with Champion Minerals.
The Sunny Lake project is wholly owned by Century, as well as the Astray, Grenville, Menihek and Schefferville projects that were recently acquired from Altius Minerals Corp.
Century Iron is also backed by two Chinese strategic partners through financing and off-take agreements: MinMetals and WISCO International Resources, a unit of Wuhan Iron & Steel, also known as China's third-largest steel producer.
Support from these two massive Chinese conglomerates, which are two of China’s largest mining companies, is a big feat.
In 2010, the WISCO group produced 36 million tonnes of crude steel, ranking as the fourth-largest steel mill in China and the fifth-largest in the world.
Arel will report directly to the company’s senior vice president of logistics, mine development and operations, Hubert Vallée.
Based in Montreal, Arel’s role will be to lead the supervision of mining operations, and assist in the company’s development and implementation of mining exploration plans as it brings its major iron ore bodies into production over the next five years and beyond.
His initial responsibilities will revolve around the creation of mining development plans for the production of direct shipping ore.
Arel is a graduate engineer of Université Laval, with 17 years of experience at several mining companies and mining consulting firms.
Most recently, he worked for Consolidated Thompson Iron Mines Limited, having the role of assistant general manager at the Mine and Mill Plant, Open Pit Operation.
Here, he was responsible for the management and administration of mining and ore processing, as well as for a large operating and capital budget of approximately a quarter of a billion dollars.
Arel was in charge of the company’s transition from start-up to full production, with over 200 employees and multidisciplinary teams under his wing.
“As a key member of the team which took the first world class iron ore mine into production in decades in Canada, Ghislain will contribute greatly to realizing Century Iron’s vision to be one of the few mining companies to bring a DSO deposit into production in the Labrador Trough and become one of the largest and best iron ore producing companies in Canada over the next few years," said Century’s president, Sandy Chim.
“With the largest iron ore land claim holdings in Canada and partnering with two Fortune Global 500 Chinese SOE companies, WISCO and MinMetals, we are well positioned to achieve this."
Prior to his time at Consolidated Thompson, Arel was director of the mining sector for Canadian engineering service firm Genivar, the chief engineer of mining operations for Quebec Iron and Titanium, a wholly owned subsidiary of Rio Tinto and McWatters Mining Company.
"Gishlain is one of the few mining engineers who have taken an iron ore mine from development to production," said Century’s senior vice president, Hubert Vallée.
"His joining of Century strengthens our mining team and adds invaluable iron ore mine development experience and expertise to our core competence."
Canada’s largest holder of iron ore land claims, Century Iron, has properties in Quebec, Newfoundland and Labrador, boasting NI 43-101 compliant resources approaching 1 billion tonnes.
The company has various interests in separate iron ore exploration projects known as Duncan Lake, Attikamagen, Sunny Lake, Astray, Grenville, Menihek, and Schefferville.
Iron ore is the ore used to make steel.
The company currently has 51 percent interest of the Duncan Lake project, with an option to increase to a 65 percent interest under an option and joint venture agreement with Augyva Mining Resources.
The company has earned a 50 percent interest in the Attikamagen project, with a right to acquire up to a 60 percent interest under an option and joint venture agreement with Champion Minerals.
The Sunny Lake project is wholly owned by Century, as well as the Astray, Grenville, Menihek and Schefferville projects that were recently acquired from Altius Minerals Corp.
Century Iron is also backed by two Chinese strategic partners through financing and off-take agreements: MinMetals and WISCO International Resources, a unit of Wuhan Iron & Steel, also known as China's third-largest steel producer.
Support from these two massive Chinese conglomerates, which are two of China’s largest mining companies, is a big feat.
In 2010, the WISCO group produced 36 million tonnes of crude steel, ranking as the fourth-largest steel mill in China and the fifth-largest in the world.
Great Basin Gold says draft EIS for Hollister published
Great Basin Gold
(TSE:GBG)(MKT:GBG) said Wednesday that the publication of the notice of
availability for the Hollister project’s underground mine draft
environmental impact statement (DEIS) is expected in the Federal
register on June 1.
The Hollister project, which is located in Nevada, is operated by Rodeo Creek Gold Inc., a wholly owned subsidiary of Great Basin Gold.
The company said that the news Wednesday marks a “major milestone” in the National Environmental Policy Act (NEPA) process for the Hollister project.
The NEPA process analyzes the proposed development to determine if there will be significant environmental effects and also considers the social as well as economic effects of the Hollister underground mine.
The DEIS proposed action for Hollister outlines key activities such as transition from underground exploration and bulk sampling to full-scale production, continued and expanded surface and underground exploration activities, and construction of an 11.6 mile power line to the mine site.
The DEIS also outlines the installation of either another ramp, or a shaft, to access different parts of the ore body.
The standard comment period for DEIS documents is at least 45 days, the company said in a release. During this time, comments can be provided to the Bureau of Land Management with regard to any aspect of the DEIS.
The final EIS will address any comments that require changes, or any additional analysis.
"We are pleased the NEPA process which we have been working on with the BLM (Bureau of Land Management) since late 2009 has culminated in the publication of the DEIS,” chief executive Ferdi Dippenaar said.
"If all goes according to the planned administrative guidelines we anticipate the FEIS could be ready during the second half of 2012."
Great Basin is a mining company engaged in the exploration and development of gold properties. It is focused on its two producing mines: the Hollister gold mine on the Carlin Trend in Nevada, and the Burnstone gold mine, in South Africa.
The company said it expects Burnstone to produce between 90,000 and 100,000 gold ounces at cash costs of US$900 and US$1,000 per ounce for fiscal year 2012. This is a marked improvement from the US$1,801 cash cost seen in 2011.
The Hollister project, which is located in Nevada, is operated by Rodeo Creek Gold Inc., a wholly owned subsidiary of Great Basin Gold.
The company said that the news Wednesday marks a “major milestone” in the National Environmental Policy Act (NEPA) process for the Hollister project.
The NEPA process analyzes the proposed development to determine if there will be significant environmental effects and also considers the social as well as economic effects of the Hollister underground mine.
The DEIS proposed action for Hollister outlines key activities such as transition from underground exploration and bulk sampling to full-scale production, continued and expanded surface and underground exploration activities, and construction of an 11.6 mile power line to the mine site.
The DEIS also outlines the installation of either another ramp, or a shaft, to access different parts of the ore body.
The standard comment period for DEIS documents is at least 45 days, the company said in a release. During this time, comments can be provided to the Bureau of Land Management with regard to any aspect of the DEIS.
The final EIS will address any comments that require changes, or any additional analysis.
"We are pleased the NEPA process which we have been working on with the BLM (Bureau of Land Management) since late 2009 has culminated in the publication of the DEIS,” chief executive Ferdi Dippenaar said.
"If all goes according to the planned administrative guidelines we anticipate the FEIS could be ready during the second half of 2012."
Great Basin is a mining company engaged in the exploration and development of gold properties. It is focused on its two producing mines: the Hollister gold mine on the Carlin Trend in Nevada, and the Burnstone gold mine, in South Africa.
The company said it expects Burnstone to produce between 90,000 and 100,000 gold ounces at cash costs of US$900 and US$1,000 per ounce for fiscal year 2012. This is a marked improvement from the US$1,801 cash cost seen in 2011.
Globex moving "dilligently forward" on assets, issues update
Globex Mining (TSE:GMX) Wednesday issued a comprehensive update on its corporate activities for its shareholders.
The Quebec-based company seeks to create shareholder value by acquiring mineral properties, enhancing them and either exploring, optioning or joint venturing them, developing them to production, or in some cases selling projects outright.
The company said that it had cash, negotiable securities and shares in other companies valued in total at $3.4 million.
In addition, as announced on May 23, the company agreed to raise an additional $3.2 million principally at $1.30 per share, in order to explore a number of projects in Quebec and Ontario.
"The state of the junior exploration sector is in disarray. Shareholders and investors are deeply concerned about their investments, the markets, metal prices, the economy, the banking system - pretty much everything," Globex Mining's president and CEO Jack Stoch said, commenting on the current market environment.
At its Timmins, Ontario talc/magnesite project, Globex said it will do infill drilling in order to raise the resource classification to reserve as required for completion of the prefeasibility study.
Detailed analyses, both chemical and mineralogical, will be carried out to better define the mineral zonation of the ore to allow for more directed mining.
In March, the company unveiled a preliminary economic assessment for the project, which showed the project will generate
$2.58 billion in gross revenue over the initial 20-year period with an after-tax internal rate of return of approximately 20 percent and a net present value of $258 million at an 8 percent discount rate.
Capital costs for the talc/magnesite project are estimated at $335 million over six years.
Permitting continues at the mine site of the potential open pit with the various testing, permit applications and other negotiations ongoing.
As part of moving the talc/magnesite project forward, Globex has hired David Hall as project manager. Hall is a mineral process engineer who has over 27 years experience in mineral process engineering as well as a broad exposure to base metals, precious metals and industrial minerals.
At the company's Turner Falls Rare Earth Property in Quebec, Globex has completed mapping, geophysics, sampling and analysis of samples from the property which has led to the identification of at least 6 large areas of high-grade rare earth mineralization as well as yttrium, zirconium, hafnium and niobium.
Globex has defined an initial drill program of 8 strategically located drill holes in order to confirm the width, depth, dip and mineralogy of the zones. The program will be helicopter-supported in order to eliminate the need to cut an access road at this point in time.
Globex has also been actively acquiring properties.
Amongst its latest acquisitions in Quebec, Globex staked the Guyenne gold and base metal property; the Tiblemont gold claims
including the Blair gold showing; the Fecteau Lake gold and base metal property; the Dollier gold property south of Chibougamau
and the Lake Jaune gold property beside and on strike with TomaGold Corporation’s Monster Lake gold property.
"Globex, like most junior exploration companies, has seen downward pressure on our stock price, both from the flow-through funds continuously selling into the market due to redemptions, and from the overall atmosphere of fear dominating the market.
"In this atmosphere we have a choice: Batten down the hatches and weather the storm or forge ahead despite the obstacles.
"We view inaction as negative for our shareholders. Delays for our talc/magnesite project would mean loss of important personnel already engaged for the project and eventually delayed production. Priority exploration targets would not be explored."
"All in all we have been very busy and expect the current pace to continue. We hope shareholders will agree that moving diligently forward is the correct path to follow."
The company has a diversified portfolio of mid-stage exploration and development properties containing precious metals, base metals, specialty metals and industrial minerals and compounds.
A full update on all of Globex's properties can be found at http://www.globexmining.com.
The Quebec-based company seeks to create shareholder value by acquiring mineral properties, enhancing them and either exploring, optioning or joint venturing them, developing them to production, or in some cases selling projects outright.
The company said that it had cash, negotiable securities and shares in other companies valued in total at $3.4 million.
In addition, as announced on May 23, the company agreed to raise an additional $3.2 million principally at $1.30 per share, in order to explore a number of projects in Quebec and Ontario.
"The state of the junior exploration sector is in disarray. Shareholders and investors are deeply concerned about their investments, the markets, metal prices, the economy, the banking system - pretty much everything," Globex Mining's president and CEO Jack Stoch said, commenting on the current market environment.
At its Timmins, Ontario talc/magnesite project, Globex said it will do infill drilling in order to raise the resource classification to reserve as required for completion of the prefeasibility study.
Detailed analyses, both chemical and mineralogical, will be carried out to better define the mineral zonation of the ore to allow for more directed mining.
In March, the company unveiled a preliminary economic assessment for the project, which showed the project will generate
$2.58 billion in gross revenue over the initial 20-year period with an after-tax internal rate of return of approximately 20 percent and a net present value of $258 million at an 8 percent discount rate.
Capital costs for the talc/magnesite project are estimated at $335 million over six years.
Permitting continues at the mine site of the potential open pit with the various testing, permit applications and other negotiations ongoing.
As part of moving the talc/magnesite project forward, Globex has hired David Hall as project manager. Hall is a mineral process engineer who has over 27 years experience in mineral process engineering as well as a broad exposure to base metals, precious metals and industrial minerals.
At the company's Turner Falls Rare Earth Property in Quebec, Globex has completed mapping, geophysics, sampling and analysis of samples from the property which has led to the identification of at least 6 large areas of high-grade rare earth mineralization as well as yttrium, zirconium, hafnium and niobium.
Globex has defined an initial drill program of 8 strategically located drill holes in order to confirm the width, depth, dip and mineralogy of the zones. The program will be helicopter-supported in order to eliminate the need to cut an access road at this point in time.
Globex has also been actively acquiring properties.
Amongst its latest acquisitions in Quebec, Globex staked the Guyenne gold and base metal property; the Tiblemont gold claims
including the Blair gold showing; the Fecteau Lake gold and base metal property; the Dollier gold property south of Chibougamau
and the Lake Jaune gold property beside and on strike with TomaGold Corporation’s Monster Lake gold property.
"Globex, like most junior exploration companies, has seen downward pressure on our stock price, both from the flow-through funds continuously selling into the market due to redemptions, and from the overall atmosphere of fear dominating the market.
"In this atmosphere we have a choice: Batten down the hatches and weather the storm or forge ahead despite the obstacles.
"We view inaction as negative for our shareholders. Delays for our talc/magnesite project would mean loss of important personnel already engaged for the project and eventually delayed production. Priority exploration targets would not be explored."
"All in all we have been very busy and expect the current pace to continue. We hope shareholders will agree that moving diligently forward is the correct path to follow."
The company has a diversified portfolio of mid-stage exploration and development properties containing precious metals, base metals, specialty metals and industrial minerals and compounds.
A full update on all of Globex's properties can be found at http://www.globexmining.com.
Rock Tech inks option deal to acquire Quebec graphite property, shares rally
Rock Tech Lithium (CVE:RCK)
announced Wednesday that it has entered into an option agreement to
acquire a 100 per cent interest in a graphite property in southwestern
Quebec, from UniMera Holding Public Ltd, as it seeks to diversify its
asset base in advanced technology materials.
Rock Tech said the option property is prospective for large flake, crystalline graphite and has a historic record of exploration for graphite mineralization and production.
Shares of the company rallied 5.00 per cent just before 12 pm EDT, trading at 10.5 cents.
"The acquisition of the highly prospective graphite property aligns with the company’s objective of diversifying its asset base in the advanced technology materials category," said Rock Tech president and CEO, Eunho Lee.
"With the emergence of large flake graphite use in lithium-ion batteries and fuel cells, along with its many other technology-driven applications such as the use of carbon fibre in the auto and aviation sectors, adding a complementary asset to our portfolio of lithium projects positions Rock Tech with the potential of providing an integrated mix of materials for the high tech and alternative energy sectors."
The Quebec property consists of 32 mineral claims, covering 19.23 square kilometres in the Buckingham region of Lochaber Township, 45 kilometres to the northeast of Gatineau.
Over an area of two by eight kilometres long, there are three graphite occurrences, referred to as the McLaren, Kelly and Burke, and two past producing mines called the Mayo and the Plumbago.
The company noted that the agreement is subject to a three per cent net smelter royalty (NSR) and includes an initial payment of C$20,000, which has already been paid.
Rock Tech said it will also pay UniMera C$60,000 in cash, and 1.8 million common shares of the company within three business days from the date of TSX Venture Exchange approval.
Additionally, it will pay C$60,000 in cash and 1.1 million common shares of Rock Tech within one year from the exchange acceptance, and another C$60,000 cash payment and 1.1 million common shares within a year and a half.
Rock Tech must also spend a total of C$300,000 in exploration work on the property within a year of TSX-V approval.
Before the start of commercial production, two per cent of the NSR can be bought back for C$2.0 million, said the company.
Rock Tech is a Canadian based resource company focused on the acquisition and development of lithium properties.
The company’s portfolio includes an advanced stage lithium-bearing pegmatite project with an NI 43-101 resource estimate in the Thunder Bay mining district of Ontario, and two early stage lithium-bearing pegmatite projects in northern and western Quebec.
In February, Rock Tech unveiled the remaining drill results from the second phase of its exploration program at its Georgia Lake lithium project in Ontario.
The aim of the second phase of the program was to add new resources to the NI 43-101 compliant estimate announced in October last year, of 2.36 million indicated tonnes of 1.17% lithium oxide (Li2O) and 4.36 million inferred tonnes of 1.08% Li2O.
Highlights of the drill results included 1.20% Li2O over 8.84 metres, 1.11% Li2O over 3.10 metres, and 0.82% Li2O over 1.0 metres in drill hole NC-11-23.
The company said that the second phase drilling also found anomalous values of rare metals, including rubidium, beryllium, cesium, niobium and tantalum.
The program consisted of 4,608 metres of diamond drilling over eighteen drill holes in addition to sixteen channel samples, testing pegmatite dykes located on the Nama Creek, Conway and Newkirk claim blocks.
Rock Tech has already reported very high purity levels from the property earlier this year. In late September last year, the company achieved a purity level of 99.988% lithium carbonate (Li2CO3) from a bulk sample. Battery manufacturers require a purity level of at least 99.5% Li2CO3.
Besides the battery industry, lithium has many uses, including heat-resistant glass and ceramics, casting for HVAC products, additives for greases and oil products, aluminum production, and as a pharmaceutical mood stabilizer.
Rock Tech said the option property is prospective for large flake, crystalline graphite and has a historic record of exploration for graphite mineralization and production.
Shares of the company rallied 5.00 per cent just before 12 pm EDT, trading at 10.5 cents.
"The acquisition of the highly prospective graphite property aligns with the company’s objective of diversifying its asset base in the advanced technology materials category," said Rock Tech president and CEO, Eunho Lee.
"With the emergence of large flake graphite use in lithium-ion batteries and fuel cells, along with its many other technology-driven applications such as the use of carbon fibre in the auto and aviation sectors, adding a complementary asset to our portfolio of lithium projects positions Rock Tech with the potential of providing an integrated mix of materials for the high tech and alternative energy sectors."
The Quebec property consists of 32 mineral claims, covering 19.23 square kilometres in the Buckingham region of Lochaber Township, 45 kilometres to the northeast of Gatineau.
Over an area of two by eight kilometres long, there are three graphite occurrences, referred to as the McLaren, Kelly and Burke, and two past producing mines called the Mayo and the Plumbago.
The company noted that the agreement is subject to a three per cent net smelter royalty (NSR) and includes an initial payment of C$20,000, which has already been paid.
Rock Tech said it will also pay UniMera C$60,000 in cash, and 1.8 million common shares of the company within three business days from the date of TSX Venture Exchange approval.
Additionally, it will pay C$60,000 in cash and 1.1 million common shares of Rock Tech within one year from the exchange acceptance, and another C$60,000 cash payment and 1.1 million common shares within a year and a half.
Rock Tech must also spend a total of C$300,000 in exploration work on the property within a year of TSX-V approval.
Before the start of commercial production, two per cent of the NSR can be bought back for C$2.0 million, said the company.
Rock Tech is a Canadian based resource company focused on the acquisition and development of lithium properties.
The company’s portfolio includes an advanced stage lithium-bearing pegmatite project with an NI 43-101 resource estimate in the Thunder Bay mining district of Ontario, and two early stage lithium-bearing pegmatite projects in northern and western Quebec.
In February, Rock Tech unveiled the remaining drill results from the second phase of its exploration program at its Georgia Lake lithium project in Ontario.
The aim of the second phase of the program was to add new resources to the NI 43-101 compliant estimate announced in October last year, of 2.36 million indicated tonnes of 1.17% lithium oxide (Li2O) and 4.36 million inferred tonnes of 1.08% Li2O.
Highlights of the drill results included 1.20% Li2O over 8.84 metres, 1.11% Li2O over 3.10 metres, and 0.82% Li2O over 1.0 metres in drill hole NC-11-23.
The company said that the second phase drilling also found anomalous values of rare metals, including rubidium, beryllium, cesium, niobium and tantalum.
The program consisted of 4,608 metres of diamond drilling over eighteen drill holes in addition to sixteen channel samples, testing pegmatite dykes located on the Nama Creek, Conway and Newkirk claim blocks.
Rock Tech has already reported very high purity levels from the property earlier this year. In late September last year, the company achieved a purity level of 99.988% lithium carbonate (Li2CO3) from a bulk sample. Battery manufacturers require a purity level of at least 99.5% Li2CO3.
Besides the battery industry, lithium has many uses, including heat-resistant glass and ceramics, casting for HVAC products, additives for greases and oil products, aluminum production, and as a pharmaceutical mood stabilizer.
Goldrush Resources forges ahead after it nearly doubles oxide resource at Ronguen
Africa-focused gold miner Goldrush Resources
(CVE: GOD) is encouraged for its plan to develop a heap leach gold
operation at its Ronguen gold deposit in Burkina Faso after it announced
late last week that it nearly doubled the oxide gold resource at the
property.
For oxide gold resources, the new NI 43-101 compliant resource contains 150,000 ounces of gold in the measured category, from 4.14 million tonnes grading 1.12 grams per tonne (g/t) gold, and 159,000 ounces of gold in the indicated category, from 3.86 million tonnes grading 1.28 g/t gold.
The inferred category also holds 8,000 ounces, contained within 136,000 tonnes at 1.91 g/t gold. The resource used a cut-off grade of 0.4 g/t gold.
In addition to the oxide resource at Ronguen, the bottom of the conceptual pit shell used to constrain the mineral resource statement is estimated to hold 23,000 ounces of gold in the measured and indicated categories in fresh rock, or 483,000 tonnes grading 1.51 g/t gold, and 44,000 ounces of gold in the inferred category, or 754,000 tonnes at 1.83 g/t gold. This estimate used a cut off grade of 0.7 g/t gold.
The global resource for Ronguen in all categories is 384,000 ounces gold within the constrained pit shell, with a long term target of more than one million ounces.
This new report compares to the initial resource estimate in April 2008, which saw just 249,000 ounces outlined in the inferred category at Ronguen, after which another 20,000 metres of trenching and drilling took place.
The company significantly increased the size and the quality of the mineral resource, as most of the oxide portion of the deposit is now classified into the measured and indicated categories.
"The strategic objective here is to put Ronguen into small scale production with a heap leach facility," VP of corporate development, Don Willoughby, told Proactive Investors.
"The goal was to upgrade the resource into measured and indicated categories to allow for the calculation of reserves at the feasibility study level.
"Now, the next step will be to expand the size of the resource, with a target of 1 million plus ounces."
But Willoughby says that the deeper sulphide resource will not be mined during the low-cost heap leach operation, and that as a result, the priority is to expand the deposit to the east and west, and not at depth.
Ronguen is located on Goldrush’s Kongoussi 1 and Tikare permits, 100 kilometres north of the capital city of Ouagadougou, 45 kilometres east of Cluff Gold’s (LON:CLF) (TSE:CFG) Kalsaka heap leach gold mine and 10 kilometres northwest of High River Gold’s (TSE:HRG) Bissa gold mine, which is currently in development.
"We are very encouraged by the potential to develop a heap leach, open pit operation at Ronguen," says president and CEO Len Brownlie.
"We intend to complete a Preliminary Economic Assessment as we continue to explore the "blue sky" potential related to this thrust fault hosted deposit, where targets for additional mineralization are located on the potential extension of the South Zone, at depth in the Main Zone, and on a parallel zone located within one kilometre to the north of the Main Zone."
Indeed, Goldrush management is convinced that there exists "plenty of blue sky potential" at the deposit, with 2 to 3 kilometre-long geophysical structures to the north and south of the Main Zone.
Just south of the grid that covers Ronguen, Willoughby says the company found "fairly decent" gold intersections, but was unable to trace it. New software, however, was developed to process the geophysical data generated several years ago, allowing Goldrush to uncover "a very strong geophysical signature."
A similar situation was also uncovered to the north.
The next drilling program will explore these two structures, as well as unexplored and under-explored areas of potential on the Kongoussi 1 and Tikare permits.
But Goldrush is running short on cash and will need more funds before it embarks on additional drilling. The company, which is in the process of raising money, has received expressions of interest from several funds, says Willoughby, despite the market malaise the junior gold space is experiencing.
In parallel to the planned preliminary economic assessment for Ronguen, which is anticipated by the end of the year, the company is also completing an environmental baseline study, which is "well on its way."
The deposit is close to paved highways and the Lac Bam water supply and is within three kilometres of the southern boundary of the regional centre of Kongoussi, which has an approximate population of 45,000.
The latest mineral resource report for the project was prepared by SRK Consulting and was based on 245 reverse circulation (RC) drill holes, 57 HQ core holes and 38 trenches.
The vast majority of the drill holes was angled and shallow, and tested little of the fresh rock depth potential of the deposit.
Aside from Ronguen, the company also holds the 244 square kilometre Ouavousse permit in central Burkina Faso, which is located around 80 kilometres south of High River’s Taparko gold mine.
In March, the miner announced results from initial drilling on seven previously-identified gold-bearing areas on the permit, uncovering an open mineralized structure over a strike length of 160 metres.
Yet the two permit areas in Burkina Faso that hold the most promise, says Willoughby, is the Pompoi permit - located just 2 kilometres from the eastern border of the Yaramoko permit held by Roxgold (CVE:ROG) and Riverstone Resources (CVE:RVS) - and the 56 square kilometre Midebdo permit, which is 5 kilometres to the east of Ampella Mining's (ASX:AMX) Konkera deposit.
"We have done quite a bit of soil sampling at Pompoi, with one result showing just under one gram per tonne - considered very, very high grade for soil sampling, which is typically measured in parts per billion," Willoughby asserts.
"This is just one sample, but there are strong indications of gold in different areas as well."
According to a recent Roxgold news release, reverse circulation drilling at the Bagassi Central site, roughly 2.5 kilometres from the Pompoi permit boundary, produced gold intersections of 24.62 g/t gold over 6 metres in hole YMR-10-RC-036, and 28.61 g/t gold over 20 metres and 4.88 g/t Au over 11 metres in hole YMR-11-RC-055.
Meanwhile, the Midebdo permit is situated 325 kilometres south southwest of Ouagadougou, with easy access by paved highways and 45 kilometres of "good secondary road."
The nearby Konkera deposit, which is in the pre-feasibility study stage, occurs within a 4.9 kilometre length of a 110 kilometre-long gold bearing shear zone and is located just 5 kilometres east of the Midebdo boundary.
Goldrush's strategy is to explore its host of early-stage Burkina Faso permits, with the hope that they will turn out as successful as Ronguen, "with a resource on the other end of the project-generating pipeline."
But the company does not hold permits in vain, as it will let them go once its team has not been able to identify anything further. Indeed, this strategy has worked well for the junior miner, once owning 40 permits in total - now down to 11.
With a "good” crew of 35 people in Burkina Faso, the company is focused on mapping, early stage geological exploration, and rock sampling on all of its permits, and is advancing the Ronguen deposit toward production.
"It is very unlikely that Goldrush will be the operator of Ronguen," says Willoughby, with a joint venture being the likely scenario.
"It's far better for us to bring in partners that will operate the mines themselves, and for us to undertake the exploration - as this is where our strategy and expertise lies.
"Discussions on this front for all of our permits are ongoing.”
For oxide gold resources, the new NI 43-101 compliant resource contains 150,000 ounces of gold in the measured category, from 4.14 million tonnes grading 1.12 grams per tonne (g/t) gold, and 159,000 ounces of gold in the indicated category, from 3.86 million tonnes grading 1.28 g/t gold.
The inferred category also holds 8,000 ounces, contained within 136,000 tonnes at 1.91 g/t gold. The resource used a cut-off grade of 0.4 g/t gold.
In addition to the oxide resource at Ronguen, the bottom of the conceptual pit shell used to constrain the mineral resource statement is estimated to hold 23,000 ounces of gold in the measured and indicated categories in fresh rock, or 483,000 tonnes grading 1.51 g/t gold, and 44,000 ounces of gold in the inferred category, or 754,000 tonnes at 1.83 g/t gold. This estimate used a cut off grade of 0.7 g/t gold.
The global resource for Ronguen in all categories is 384,000 ounces gold within the constrained pit shell, with a long term target of more than one million ounces.
This new report compares to the initial resource estimate in April 2008, which saw just 249,000 ounces outlined in the inferred category at Ronguen, after which another 20,000 metres of trenching and drilling took place.
The company significantly increased the size and the quality of the mineral resource, as most of the oxide portion of the deposit is now classified into the measured and indicated categories.
"The strategic objective here is to put Ronguen into small scale production with a heap leach facility," VP of corporate development, Don Willoughby, told Proactive Investors.
"The goal was to upgrade the resource into measured and indicated categories to allow for the calculation of reserves at the feasibility study level.
"Now, the next step will be to expand the size of the resource, with a target of 1 million plus ounces."
But Willoughby says that the deeper sulphide resource will not be mined during the low-cost heap leach operation, and that as a result, the priority is to expand the deposit to the east and west, and not at depth.
Ronguen is located on Goldrush’s Kongoussi 1 and Tikare permits, 100 kilometres north of the capital city of Ouagadougou, 45 kilometres east of Cluff Gold’s (LON:CLF) (TSE:CFG) Kalsaka heap leach gold mine and 10 kilometres northwest of High River Gold’s (TSE:HRG) Bissa gold mine, which is currently in development.
"We are very encouraged by the potential to develop a heap leach, open pit operation at Ronguen," says president and CEO Len Brownlie.
"We intend to complete a Preliminary Economic Assessment as we continue to explore the "blue sky" potential related to this thrust fault hosted deposit, where targets for additional mineralization are located on the potential extension of the South Zone, at depth in the Main Zone, and on a parallel zone located within one kilometre to the north of the Main Zone."
Indeed, Goldrush management is convinced that there exists "plenty of blue sky potential" at the deposit, with 2 to 3 kilometre-long geophysical structures to the north and south of the Main Zone.
Just south of the grid that covers Ronguen, Willoughby says the company found "fairly decent" gold intersections, but was unable to trace it. New software, however, was developed to process the geophysical data generated several years ago, allowing Goldrush to uncover "a very strong geophysical signature."
A similar situation was also uncovered to the north.
The next drilling program will explore these two structures, as well as unexplored and under-explored areas of potential on the Kongoussi 1 and Tikare permits.
But Goldrush is running short on cash and will need more funds before it embarks on additional drilling. The company, which is in the process of raising money, has received expressions of interest from several funds, says Willoughby, despite the market malaise the junior gold space is experiencing.
In parallel to the planned preliminary economic assessment for Ronguen, which is anticipated by the end of the year, the company is also completing an environmental baseline study, which is "well on its way."
The deposit is close to paved highways and the Lac Bam water supply and is within three kilometres of the southern boundary of the regional centre of Kongoussi, which has an approximate population of 45,000.
The latest mineral resource report for the project was prepared by SRK Consulting and was based on 245 reverse circulation (RC) drill holes, 57 HQ core holes and 38 trenches.
The vast majority of the drill holes was angled and shallow, and tested little of the fresh rock depth potential of the deposit.
Aside from Ronguen, the company also holds the 244 square kilometre Ouavousse permit in central Burkina Faso, which is located around 80 kilometres south of High River’s Taparko gold mine.
In March, the miner announced results from initial drilling on seven previously-identified gold-bearing areas on the permit, uncovering an open mineralized structure over a strike length of 160 metres.
Yet the two permit areas in Burkina Faso that hold the most promise, says Willoughby, is the Pompoi permit - located just 2 kilometres from the eastern border of the Yaramoko permit held by Roxgold (CVE:ROG) and Riverstone Resources (CVE:RVS) - and the 56 square kilometre Midebdo permit, which is 5 kilometres to the east of Ampella Mining's (ASX:AMX) Konkera deposit.
"We have done quite a bit of soil sampling at Pompoi, with one result showing just under one gram per tonne - considered very, very high grade for soil sampling, which is typically measured in parts per billion," Willoughby asserts.
"This is just one sample, but there are strong indications of gold in different areas as well."
According to a recent Roxgold news release, reverse circulation drilling at the Bagassi Central site, roughly 2.5 kilometres from the Pompoi permit boundary, produced gold intersections of 24.62 g/t gold over 6 metres in hole YMR-10-RC-036, and 28.61 g/t gold over 20 metres and 4.88 g/t Au over 11 metres in hole YMR-11-RC-055.
Meanwhile, the Midebdo permit is situated 325 kilometres south southwest of Ouagadougou, with easy access by paved highways and 45 kilometres of "good secondary road."
The nearby Konkera deposit, which is in the pre-feasibility study stage, occurs within a 4.9 kilometre length of a 110 kilometre-long gold bearing shear zone and is located just 5 kilometres east of the Midebdo boundary.
Goldrush's strategy is to explore its host of early-stage Burkina Faso permits, with the hope that they will turn out as successful as Ronguen, "with a resource on the other end of the project-generating pipeline."
But the company does not hold permits in vain, as it will let them go once its team has not been able to identify anything further. Indeed, this strategy has worked well for the junior miner, once owning 40 permits in total - now down to 11.
With a "good” crew of 35 people in Burkina Faso, the company is focused on mapping, early stage geological exploration, and rock sampling on all of its permits, and is advancing the Ronguen deposit toward production.
"It is very unlikely that Goldrush will be the operator of Ronguen," says Willoughby, with a joint venture being the likely scenario.
"It's far better for us to bring in partners that will operate the mines themselves, and for us to undertake the exploration - as this is where our strategy and expertise lies.
"Discussions on this front for all of our permits are ongoing.”
Snipp Interactive enters Mexican mobile marketing market via strategic partnership
Mobile marketing services provider Snipp Interactive (CVE:SPN)
unveiled Wednesday an agreement with VirKet S.A. to offer its "Mobilize
Me" technology platform in Mexico in the Spanish language.
"VirKet is a marketing leader in Mexico with an impressive client list, and demonstrated ability to take advantage of emerging technology and marketing trends," said CEO of Snipp, Erik Hallstrom.
"This is a key relationship for Snipp as we continue to expand our international market footprint."
Under the strategic partnership agreement, Snipp will license its platform and provide mobile marketing services with VirKet in the Mexican market - on a exclusive basis.
VirKet, a Mexican provider of digital marketing services, will correspondingly use Snipp as its exclusive provider of mobile marketing technology.
Snipp's “Mobilize Me” platform supports several input mechanisms for mobilizing marketing campaigns for companies, including text message, QR codes, Microsoft tags and Snapp tags.
The platform then delivers a variety of content experiences to customers as part of sales tactics, including SMS, mobile web pages to collect data, emails, mobile videos, audio, sweepstakes, coupons, and ringtones, among others.
Already, without any dedicated full time sales resources, the business, which was established in 2007, has provided its services to several Fortune 500 companies and other major brands, advertising agencies and publishers, including Wal-Mart (NYSE:WMT), ESPN, Time Inc, Ford (NYSE:F), Nike (NYSE:NKE), Wendy's (NASDAQ:WEN) and Campbell Soup (NYSE:CPB).
The initial term of the deal with VirKet will be for one year, with an option for VirKet to extend for a second year and a right-of-first refusal for an extended exclusive license beyond the initial two-year term - all subject to reaching certain business performance targets.
Under the deal, VirKet will also commit to making investments required to launch Snipp's "Mobilize Me" platform in the Mexican market, while Snipp has granted VirKet up to 3.33 million warrants to purchase company shares.
The warrants are exercisable at a price of 22 Canadian cents per share and vesting will be subject to VirKet achieving certain agreed business performance targets, Snipp said.
The two parties have also agreed that VirKet will provide Snipp with its expertise and services for search engine optimization.
This agreement makes Snipp’s mobile marketing technology available for implementation and interaction throughout Canada, the United States and Mexico.
"With Snipp's mobile marketing platform, we can effectively merge the offline and online marketing solutions we build for our clients across a range of industries in Mexico including some of the leading retail, consumer and publishing brands in the country," said CEO of VirKet, Pedro Quinzaños Cancino.
"More and more clients in Mexico are looking for mobile solutions. Snipp’s scalable technology is ideal to support our growth and we really like the dynamic ideas and solutions they can quickly bring to market."
Washington, D.C.-based Snipp generates revenue by designing, constructing, implementing and managing mobile marketing services for its customers. The company also has international operations in Canada, Mexico and India.
"VirKet is a marketing leader in Mexico with an impressive client list, and demonstrated ability to take advantage of emerging technology and marketing trends," said CEO of Snipp, Erik Hallstrom.
"This is a key relationship for Snipp as we continue to expand our international market footprint."
Under the strategic partnership agreement, Snipp will license its platform and provide mobile marketing services with VirKet in the Mexican market - on a exclusive basis.
VirKet, a Mexican provider of digital marketing services, will correspondingly use Snipp as its exclusive provider of mobile marketing technology.
Snipp's “Mobilize Me” platform supports several input mechanisms for mobilizing marketing campaigns for companies, including text message, QR codes, Microsoft tags and Snapp tags.
The platform then delivers a variety of content experiences to customers as part of sales tactics, including SMS, mobile web pages to collect data, emails, mobile videos, audio, sweepstakes, coupons, and ringtones, among others.
Already, without any dedicated full time sales resources, the business, which was established in 2007, has provided its services to several Fortune 500 companies and other major brands, advertising agencies and publishers, including Wal-Mart (NYSE:WMT), ESPN, Time Inc, Ford (NYSE:F), Nike (NYSE:NKE), Wendy's (NASDAQ:WEN) and Campbell Soup (NYSE:CPB).
The initial term of the deal with VirKet will be for one year, with an option for VirKet to extend for a second year and a right-of-first refusal for an extended exclusive license beyond the initial two-year term - all subject to reaching certain business performance targets.
Under the deal, VirKet will also commit to making investments required to launch Snipp's "Mobilize Me" platform in the Mexican market, while Snipp has granted VirKet up to 3.33 million warrants to purchase company shares.
The warrants are exercisable at a price of 22 Canadian cents per share and vesting will be subject to VirKet achieving certain agreed business performance targets, Snipp said.
The two parties have also agreed that VirKet will provide Snipp with its expertise and services for search engine optimization.
This agreement makes Snipp’s mobile marketing technology available for implementation and interaction throughout Canada, the United States and Mexico.
"With Snipp's mobile marketing platform, we can effectively merge the offline and online marketing solutions we build for our clients across a range of industries in Mexico including some of the leading retail, consumer and publishing brands in the country," said CEO of VirKet, Pedro Quinzaños Cancino.
"More and more clients in Mexico are looking for mobile solutions. Snipp’s scalable technology is ideal to support our growth and we really like the dynamic ideas and solutions they can quickly bring to market."
Washington, D.C.-based Snipp generates revenue by designing, constructing, implementing and managing mobile marketing services for its customers. The company also has international operations in Canada, Mexico and India.
NeoMagic provides product development update
NeoMagic (PINK:NMGC) Tuesday provided an update on new product development and current operations.
The company designs and delivers consumer electronic device solutions for video, television, imaging, graphics and audio.
The San Jose, California-based tech firm demonstrated its MagicVault USB 3.0 jump drive product to a few potential customers and is seeking out a partner to take MagicVault into production.
Preliminary testing has revealed that its flash drive can deliver almost two times the performance of other USB 3.0 jump drives on the current market.
NeoMagic continues to ship its MiMagic3 32-bit Risc-chip processor to their Asia-Pacific customer for use in electronic toll smart card collection systems in Singapore.
Presently in development, the company is making a karaoke machine called M-Book for ViV Systems, and expects to product to come onto market this summer.
Its main focus remains on increasing revenue from its MiMagic 3 product – a processing chip found in mobile phones and other electronic devices, and to deliver its flash drive to market.
Additionally, the company also said that it is exploring various e-commerce opportunities, and will be providing further details in the ensuing weeks.
Separately, the company also announced that company directors Andrew Rosengard, Chuck Bellavia, Scott Sullinger and Joseph Fitzgerald have resigned.
The company designs and delivers consumer electronic device solutions for video, television, imaging, graphics and audio.
The San Jose, California-based tech firm demonstrated its MagicVault USB 3.0 jump drive product to a few potential customers and is seeking out a partner to take MagicVault into production.
Preliminary testing has revealed that its flash drive can deliver almost two times the performance of other USB 3.0 jump drives on the current market.
NeoMagic continues to ship its MiMagic3 32-bit Risc-chip processor to their Asia-Pacific customer for use in electronic toll smart card collection systems in Singapore.
Presently in development, the company is making a karaoke machine called M-Book for ViV Systems, and expects to product to come onto market this summer.
Its main focus remains on increasing revenue from its MiMagic 3 product – a processing chip found in mobile phones and other electronic devices, and to deliver its flash drive to market.
Additionally, the company also said that it is exploring various e-commerce opportunities, and will be providing further details in the ensuing weeks.
Separately, the company also announced that company directors Andrew Rosengard, Chuck Bellavia, Scott Sullinger and Joseph Fitzgerald have resigned.
Southern Arc updates on exploration activities, unveils Q3 results
Indonesia-focused explorer Southern Arc Minerals
(CVE:SA) late Tuesday announced financial results for its third quarter
that ended March 31, along with an update on exploration activities at
its portfolio of projects.
Over the last three months, the company completed a
number of significant milestones, including increasing its ownership to
90 per cent in its West Lombok and Taliwang projects in Indonesia
through the acquisition of additional shares in its subsidiary PT
Indotan Lombok Barat Bangkit, from its Indonesian partner, PT Permata
Puri Mega (PT PPM).
In consideration for transferring its five per cent
interest in both the West Lombok and Taliwang projects, PT PPM received
US$1.5 million and 2.25 million Southern Arc shares, subject to
approval.
The key West Lombok project covers a 13 by 7
kilometre structural corridor of mineralization and alteration hosting
porphyry copper-gold, high-sulfidation gold-copper and epithermal gold
deposits.
Two of the prospects on the property host a
combined proven strike length of more than 26 kilometres of mineralized
epithermal breccias, with individual bodies ranging in thickness from 2
to 66 metres, with a strike length of up to 1,000 metres and a vertical
extent of greater than 300 metres.
The company said it has completed drilling at the
West Lombok project pending issuance of a forestry permit known as a
Pinjam Pakai (borrow to use) permit, with 3,501.5 metres of drilling
completed to date this year.
Around 1.1 per cent of the West Lombok property is
designated protected forest, 55.1 per cent is designated production
forest, and 43.8 per cent has no forestry designation.
In late 2011, Southern Arc decided to focus its
near-term drilling activities on targets within areas without forestry
designation.
So far this year, Southern Arc completed 14 holes
on areas in the northwest section of the property, focused on epithermal
gold mineralization, and two holes in the southeast section of the
property, focused on porphyry copper-gold mineralization.
The company said it does not plan to resume
drilling until the Pinjam Pakai permit is received. Mapping and sampling
at the West Lombok project is ongoing, with 472.5 line kilometres
completed so far this year.
In early 2012, Southern Arc initiated an
exploration program to drill porphyry targets located in the south of
the property in areas without forestry designation, and will continue to
test the other targets when the company receives the Pinjam Pakai
permit and is able to resume full-scale exploration.
Also earlier this year, the Belikat and Blongas
East targets of the Selodong prospect, where previous exploration
returned significant porphyry-grade intersections, were tested by two
drill holes totaling 974.0 metres.
Exploration activities on West Lombok in 2011 and
the first quarter of 2012 focused on phase 2 exploration at the Pelangan
prospect and phase 1 exploration at the Mencanggah prospect of West
Lombok.
Initial activities on Mencanggah focused on the
Waterfall target, where Southern Arc completed 27 holes for a total of
6,634 metres of drilling, with 17 of the 27 holes encountering gold
mineralization.
The company also drilled eight holes on the Bising
target of the Selodong prospect, for a total of 2,286 metres, all of
which encountered mineralization. Bising remains a high-priority
drilling target when Southern Arc is able to resume full scale
activities, it said.
Surface mapping has continued on the West Lombok property and the
team has to date identified 18.5 km of mineralized structural breccias
the Mencanggah prospect with an additional 1.3 kilometres of epithermal
structural breccias.Geochemical testing is ongoing to determine mineralization, with 8.0 kilometres of mineralized structural breccias on the Pelangan prospect and an additional 1.7 kilometres of epithermal structural breccias.
The company reported “encouraging assay results” of over 5.0 grams per tonne (g/t) gold from continuous rock chip channels collected across the strike of mineralized structural breccias have been received from a number of Pelangan and Mencanggah prospect localities.
In early April, the company released an update on exploration activities at West Lombok, highlighting Drill hole SLD031, the first to test new porphyry targets generated by an aeromagnetic survey.
Hole SLD031 returned 83.0 metres at 0.33 g/t gold and 0.08 percent copper from 285 metres, including 43.5 metres at 0.41 g/t gold and 0.08 percent copper from 306 metres, and 14.0 metres at 0.60 g/t gold and 0.12 percent copper.
Southern Arc has engaged SRK Consulting (Canada) to complete an NI 43-101 technical report for the property.
Completion of the technical report requires more exploration and drilling data, and the timing of the report is contingent on Southern Arc's ability to resume full-scale exploration.
The company said it will provide additional guidance on the timing of this report as more information becomes available.
During the quarter, Southern Arc also completed
drilling of a third hole at its Sabalong project in the Sumbawa Island
in Sumbawa Regency, Indonesia, targeting copper-gold porphyry
mineralization, with results pending.
The Sabalong property is being advanced in partnership with Vale,
with Southern Arc as the operator of the property. Southern Arc said
results will be released when phase 1 exploration is deemed complete, at
which point Vale has the option to carry on to phase 2 and complete US$2 million of funding within two years.
Geomapping along with geochemical and geophysical
surveying activities at the Sabalong property have defined a number of
potential porphyry intrusive targets.
Although no significant assay results were
returned, the company said the geology and wallrock alteration
recognized in the drill core provided sufficient encouragement to drill a
third hole targeting potential porphyry copper-gold mineralization
below a lithocap.
At the Taliwang property, Southern Arc said it
completed a cooperation agreement with the West Sumbawa Regency
Government, ensuring collaboration as the project advances.
The Taliwang property covers 31,200 hectares
prospective for gold, silver and copper mineralization. Under the terms
of the agreement, Southern Arc granted the West Sumbawa Regency a 10 per
cent free-carry equity interest in the project.
Results from outcrop sampling of jasperoid ledges
by Southern Arc has returned numerous channel samples in excess of 5 g/t
gold and 50 g/t silver to a maximum grade of 216 g/t gold and 330 g/t
silver over 3 metres.
The company said prospecting culminated in a
seven-hole scout drilling program (413.6 metres) testing subsurface
extensions of the known surface Au-Ag jasperoid mineralization.
Hole J3DH-01 reported an intercept of 2 metres at
1.93 g/t Au and 11 g/t Ag, but the bulk of the area and western
extensions have yet to be drill-tested.
During the quarter, Southern Arc terminated an agreement with Newcrest Mining (ASX:NCM) for the Taliwang project, whereby Newcrest could have earned a 63.75 per cent interest in the project.
Meanwhile, the company said the East Elang property
copper-gold property in the southwest Sumbawa Island is “highly
prospective” due to its location and results from aerial surveys.
Exploration of this property has been deferred pending reclassification of the property's forestry status.
The East Elang property is included in the Vale option and joint venture agreement, where Vale
can earn a 75 per cent interest in both the Sabalong and East Elang
properties by advancing either property to bankable feasibility study.
During the quarter that ended March 31, the company
posted a net loss of $1.27 million, or one cent per share, compared to a
loss of $1.81 million in the same period last year. Working capital
totaled $22.9 million at the end of its latest fiscal quarter.
Southern Arc finished the quarter with assets totalling $62.87 million.
Southern Arc is a Canadian mineral exploration
company, whose portfolio includes four epithermal gold and copper-gold
porphyry exploration projects on the Lombok and Sumbawa islands in
Indonesia, three of which are being advanced in partnership with major
mining companies Vale and Newcrest.
Southern Arc’s key exploration property is its West
Lombok project, with several gold-rich copper porphyry and epithermal
gold vein prospects.
The company’s shares were down -3.23 per cent early Wednesday, trading at 30 cents.
Extorre unveils staged development plans for Cerro Moro
Extorre Gold Mines
(TSE:XG)(MKT:XG)(AMEX:XG) Wednesday provided details of a preliminary
internal study for the proposed staged mine development of its Cerro
Moro gold-silver project.
Cerro Moro is located in Santa Cruz province, Argentina and in early April, the company unveiled a preliminary economic assessment (PEA-3) putting gold yield at 248,036 ounces per annum in the first five years.
Based on the new internal study, for the first five years, the company said annual mine output is 60 to 70 percent of that modelled in the preliminary economic assessment in April (193,000 ounces per year versus 248,000 ounces per year gold equivalent).
"This is achieved against a 57 percent reduction in the up-front capital requirement," said Extorre CEO Trevor Mulroney.
The new internal study indicates potential mine development capex of roughly $124 million in stage one of a two-stage approach, while maintaining initial production exceeding 170,000 ounces per year gold equivalent in the first year.
Initial operating costs are seen at $200 per recoverable gold equivalent ounce and potential free cash flow is pegged at $190 million. These figures exclude royalties and taxes.
"Cerro Moro is very well suited to our preferred staged development approach because of the reduced initial capital requirements and our ability to rapidly and selectively access very high grade mineralized zones," said Mulroney.
"In fact the head grade on a diluted basis exceeds 30 grams per tonne for the first stage of production.
"The staged development allows Extorre to meet its objective of commencing production in 2014 and train a workforce while significantly reducing initial capital requirements, which is an important consideration given the state of current capital markets.
"The strong operating cash-flows allow for future development expansion.
"Operating cash costs on a gold equivalent basis are in fact lower than in PEA-3 because of the higher head grade feed being supplied to the processing plant. That is to say the higher grades more than offset the higher unit costs associated with a smaller mine throughput."
The first year of a potential two-staged mine development foresees an initial mine throughput of 500 to 600 tonnes per day (tpd), increasing to 1,000 to 1,100 tpd levels within eighteen months of production start-up.
This approach potentially reduces the initial capex to $110 million (excluding recoverable tax of $14 million) while the balance of the mine's capital expenditure requirements could be funded through operating cash flow, the company said.
Potential early cash flows would be generated from mining high grade open pit mineralization, which would fund ongoing development costs and allow process plant and infrastructure expansion, as well as underground mine development to commence within six months of mine start up, Extorre said.
For the first stage, with production pegged at 500 to 600 tpd, a small processing plant and minimum infrastructure for open pit mining only is planned.
High grade mineralization from open pits will be blended with lower-grade material to maintain a constant feed grade to the plant. Open pit mining at this level is potentially sustainable for up to three years, the company said.
For the second stage, with production seen at 1,000 to 1,100 tpd, expansion of the processing plant is planned, alongside the completion of full infrastructure.
Underground mining operations will begin with mining of the remaining open pit material, and blending such feed with high grade underground material. A plant expansion is to be completed within 36 months of mine start up.
Total life of mine metal production is seen at 889,500 ounces of gold and 48 million ounces of silver (1.8 million ounces gold equivalent or 92 million ounces silver equivalent).
In the first year, production of 170,000 to 180,000 gold equivalent ounces is expected, rising to between 190,000 to 200,000 gold equivalent ounces over the first five years.
Average life of mine production over 12 years is pegged at 154,000 ounces per year gold equivalent, comprising gold production of 74,000 ounces per year plus silver production of 4.0 million ounces per year.
Operating costs at the minesite, excluding royalties and export tax for the first stage, is seen at approximately $250 to $260 per recovered gold equivalent ounce. Life of mine cash cost per ounce is seen in the range of $330 to $340.
Extorre Gold Mines' principal assets comprise C$27 million in cash and the Cerro Moro, Puntudo, and Falcon projects in Argentina.
Detailed engineering and development planning continue at Cerro Moro, with permitting in place for the initial proposed throughput.
Exploration with two drills continues at the site, with the aim to increase the total resources on the property and to in-fill drill certain areas for mine planning purposes.
Drilling with one rig recently started at the company's Falcon project in Santa Cruz Province.
Cerro Moro is located in Santa Cruz province, Argentina and in early April, the company unveiled a preliminary economic assessment (PEA-3) putting gold yield at 248,036 ounces per annum in the first five years.
Based on the new internal study, for the first five years, the company said annual mine output is 60 to 70 percent of that modelled in the preliminary economic assessment in April (193,000 ounces per year versus 248,000 ounces per year gold equivalent).
"This is achieved against a 57 percent reduction in the up-front capital requirement," said Extorre CEO Trevor Mulroney.
The new internal study indicates potential mine development capex of roughly $124 million in stage one of a two-stage approach, while maintaining initial production exceeding 170,000 ounces per year gold equivalent in the first year.
Initial operating costs are seen at $200 per recoverable gold equivalent ounce and potential free cash flow is pegged at $190 million. These figures exclude royalties and taxes.
"Cerro Moro is very well suited to our preferred staged development approach because of the reduced initial capital requirements and our ability to rapidly and selectively access very high grade mineralized zones," said Mulroney.
"In fact the head grade on a diluted basis exceeds 30 grams per tonne for the first stage of production.
"The staged development allows Extorre to meet its objective of commencing production in 2014 and train a workforce while significantly reducing initial capital requirements, which is an important consideration given the state of current capital markets.
"The strong operating cash-flows allow for future development expansion.
"Operating cash costs on a gold equivalent basis are in fact lower than in PEA-3 because of the higher head grade feed being supplied to the processing plant. That is to say the higher grades more than offset the higher unit costs associated with a smaller mine throughput."
The first year of a potential two-staged mine development foresees an initial mine throughput of 500 to 600 tonnes per day (tpd), increasing to 1,000 to 1,100 tpd levels within eighteen months of production start-up.
This approach potentially reduces the initial capex to $110 million (excluding recoverable tax of $14 million) while the balance of the mine's capital expenditure requirements could be funded through operating cash flow, the company said.
Potential early cash flows would be generated from mining high grade open pit mineralization, which would fund ongoing development costs and allow process plant and infrastructure expansion, as well as underground mine development to commence within six months of mine start up, Extorre said.
For the first stage, with production pegged at 500 to 600 tpd, a small processing plant and minimum infrastructure for open pit mining only is planned.
High grade mineralization from open pits will be blended with lower-grade material to maintain a constant feed grade to the plant. Open pit mining at this level is potentially sustainable for up to three years, the company said.
For the second stage, with production seen at 1,000 to 1,100 tpd, expansion of the processing plant is planned, alongside the completion of full infrastructure.
Underground mining operations will begin with mining of the remaining open pit material, and blending such feed with high grade underground material. A plant expansion is to be completed within 36 months of mine start up.
Total life of mine metal production is seen at 889,500 ounces of gold and 48 million ounces of silver (1.8 million ounces gold equivalent or 92 million ounces silver equivalent).
In the first year, production of 170,000 to 180,000 gold equivalent ounces is expected, rising to between 190,000 to 200,000 gold equivalent ounces over the first five years.
Average life of mine production over 12 years is pegged at 154,000 ounces per year gold equivalent, comprising gold production of 74,000 ounces per year plus silver production of 4.0 million ounces per year.
Operating costs at the minesite, excluding royalties and export tax for the first stage, is seen at approximately $250 to $260 per recovered gold equivalent ounce. Life of mine cash cost per ounce is seen in the range of $330 to $340.
Extorre Gold Mines' principal assets comprise C$27 million in cash and the Cerro Moro, Puntudo, and Falcon projects in Argentina.
Detailed engineering and development planning continue at Cerro Moro, with permitting in place for the initial proposed throughput.
Exploration with two drills continues at the site, with the aim to increase the total resources on the property and to in-fill drill certain areas for mine planning purposes.
Drilling with one rig recently started at the company's Falcon project in Santa Cruz Province.
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