Goldrush Resources (CVE:GOD), a junior mineral exploration company, on Wednesday said that it has closed the previously announced $3.4 million non-brokered private placement financing.
The company sold 21.2 million units at a purchase price of $0.16 per unit.
Each unit consists of one common share and half of one non-transferable share purchase warrant. Each full warrant gives the holder the right to purchase an additional common share at a price of $0.21 for the duration of 18 months from closing.
The private placement was fully subscribed, the company said.
Net proceeds will fund continued drilling and development at the company’s 249,000 ounce Ronguen gold deposit in Burkina Faso, West Africa, and go toward financing other high priority projects.
The profits will also be used to acquire more properties and for working capital purposes.
Finder’s fees and warrants have already been paid in connection with part of the financing.
Separately, the gold explorer also said that its 10,300 meter reverse circulation (RC) drill program in Burkina Faso was completed this month, and awaits results from 84 holes drilled on the Kongoussi, Tikare, Liki and the Nakiambouri and Gonaba Est permits.
As follow-up work, Goldrush has entered into contracts to drill a further 10,000 meters of RC drilling and 8,000 meters of core drilling during the third quarter.
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Showing posts with label Gold. Show all posts
Showing posts with label Gold. Show all posts
Thursday, 2 June 2011
BNN interview with James West praises AM Gold's prospects
Financial and mining expert James West cited AM Gold (CVE:AMG) as one of the best vehicles for investors seeking serious strong growth prospects in precious metals, during an interview on BNN, which can be viewed at http://miningmarketwatch.net/amg.htm.
West pointed to AM Gold's strong holdings in the Yukon Territories and in Peru, and to its currently low trading price - today, at $0.44 per share - calling the Vancouver, B.C.-based company's $30 million market cap disproportionate to the inherent value of its properties.
According to West, AM Gold was the first mining company to the Peru region in 2004, located about 775 kilometres southeast of Lima. Now, the company is surrounded by majors, West said.
The explorer's wholly-owned Pinaya property has resources amassing to 498,000 ounces of indicated gold, 168,000 ounces of inferred gold, as well as 269 million pounds of indicated copper and 115 million pounds of inferred copper.
West also indicated the benefits of AM Gold's near-term open pit mine potential at the Peru property to potential investors.
AM also owns the Red Mountain gold project within the Tintina Gold Belt in the Yukon, which has a 1.23 million ounce inferred gold estimate.
West says this appears to represent only the tip of the Red Mountain iceberg, as interpretation of the area's geophysics indicates that the target size is quite large and extends to depth.
Indeed, all 12 drill hole results from exploration conducted last summer revealed several encouraging intercepts extending the mineralization approximately 700 metres along strike.
With AM Gold's plans to add to the Red Mountain estimate via 6,000 metres of core drilling this year, West believes that the relatively new mining company has the potential to rival Kinross' Fort Knox giant, the area's key referencing point.
Drill rigs were winterized so that spring-summer exploration could get an early start - which it did in March of this year.
West pointed to AM Gold's strong holdings in the Yukon Territories and in Peru, and to its currently low trading price - today, at $0.44 per share - calling the Vancouver, B.C.-based company's $30 million market cap disproportionate to the inherent value of its properties.
According to West, AM Gold was the first mining company to the Peru region in 2004, located about 775 kilometres southeast of Lima. Now, the company is surrounded by majors, West said.
The explorer's wholly-owned Pinaya property has resources amassing to 498,000 ounces of indicated gold, 168,000 ounces of inferred gold, as well as 269 million pounds of indicated copper and 115 million pounds of inferred copper.
West also indicated the benefits of AM Gold's near-term open pit mine potential at the Peru property to potential investors.
AM also owns the Red Mountain gold project within the Tintina Gold Belt in the Yukon, which has a 1.23 million ounce inferred gold estimate.
West says this appears to represent only the tip of the Red Mountain iceberg, as interpretation of the area's geophysics indicates that the target size is quite large and extends to depth.
Indeed, all 12 drill hole results from exploration conducted last summer revealed several encouraging intercepts extending the mineralization approximately 700 metres along strike.
With AM Gold's plans to add to the Red Mountain estimate via 6,000 metres of core drilling this year, West believes that the relatively new mining company has the potential to rival Kinross' Fort Knox giant, the area's key referencing point.
Drill rigs were winterized so that spring-summer exploration could get an early start - which it did in March of this year.
Gowest Gold boosts resources at Frankfield East with further potential to increase
Canadian junior explorer Gowest Gold (CVE:GWA)(OTCBB:GWSAF) said Wednesday that it has significantly increased its resources at its Frankfield East gold deposit in Timmins, Ontario following hugely successful drilling campaigns in the last year.
The updated NI 43-101 compliant resource, completed by ACA Howe International, contains 348,000 ounces of gold in the indicated category, or 1.6 million tonnes at a grade of 6.68 g/t gold, and 838,900 ounces of gold in the inferred category, or 4.3 million tonnes at a grade of 6.01 g/t gold. The cut-off grade applied was 3.0 g/t gold.
This compares with an initial inferred resource of 2.4 million tonnes averaging 6.5 g/t gold, for 510,000 ounces.
"We are extremely pleased to quantify the substantial increases in the gold resource at the Frankfield East Deposit resulting from our 2010/11 drilling campaigns," said president and CEO Greg Romain.
The Toronto-based company said that as the deposit remains open and unexplored at depth, it is confident that the ongoing drilling program, through until 2012, will continue to find additional gold.
Indeed, this has worked quite well for the company so far. In its 2010-2011 drilling campaign, Gowest applied a two-pronged strategy to drilling at the site, including infill drilling within the previously defined resource area, and expanding mineralization outside of the resource area - which obviously proved quite successful.
As of March, the mineralized envelope of 750 metres along strike at surface by 920 metres at depth was two to three times the size of the initial mineralized zone, which contained inferred resources of 510,000 ounces.
Some highlights of the drilling included 5.1 metres of 4.1 g/t gold, including 2.4 metres of 7.1 g/t gold in hole GW10-96, drilled to a vertical depth of 920 metres.
In addition, in February, the company scored bonanza grade gold with drill hole GW10-106, which cut 4.7 metres averaging 13.4 g/t gold, including 1.5 metres of a whopping 37 g/t gold.
The updated resource was based on data from 201 diamond drill holes, Gowest said.
To demonstrate the potential of the Frankfield East deposit to withstand fluctuations in gold prices, the company conducted a sensitivity analysis, estimating a resource at different cut-off grades. At a cut-off grade of 1.5 g/t gold, indicated resources are estimated at 422,400 contained gold ounces, or 2.7 million tonnes at a grade of 4.91 g/t gold, while inferred resources total 999,000 ounces, or 6.9 million tonnes at a grade of 4.53 g/t gold.
The average gold grade of the deposit has been changed, but with relatively limited impact on the overall deposit resources.
"We are very encouraged by the sensitivity analysis completed which clearly demonstrates the robust nature of the deposit and the fact that the majority of the ounces are contained within high- grade structures, that minimize potential impacts from fluctuations in gold prices," addded Romain.
"It is becoming increasingly apparent that the Frankfield East deposit has the characteristics of a multi-million ounce gold deposit."
Engineering studies are continuing at the property, and the company expects that the strong economics of the project will further be demonstrated in a preliminary economic study - expected in the fall.
The company added in its statement that as part of its ongoing metallurgical test program at Frankfield East, it is looking into a potential ore sorting technique that would allow for gold to be mined using more cost-effective bulk mining methods, as low grade waste material would be rejected prior to further processing.
This method, Gowest said, would allow for the deposit to be mined at a lower cut-off grade, thereby boosting the size of the overall resources.
Gowest is also working on expanding its land package in the prolific Timmins mining camp, as it recently announced acquisitions of properties located adjacent to Frankfield East.
The updated NI 43-101 compliant resource, completed by ACA Howe International, contains 348,000 ounces of gold in the indicated category, or 1.6 million tonnes at a grade of 6.68 g/t gold, and 838,900 ounces of gold in the inferred category, or 4.3 million tonnes at a grade of 6.01 g/t gold. The cut-off grade applied was 3.0 g/t gold.
This compares with an initial inferred resource of 2.4 million tonnes averaging 6.5 g/t gold, for 510,000 ounces.
"We are extremely pleased to quantify the substantial increases in the gold resource at the Frankfield East Deposit resulting from our 2010/11 drilling campaigns," said president and CEO Greg Romain.
The Toronto-based company said that as the deposit remains open and unexplored at depth, it is confident that the ongoing drilling program, through until 2012, will continue to find additional gold.
Indeed, this has worked quite well for the company so far. In its 2010-2011 drilling campaign, Gowest applied a two-pronged strategy to drilling at the site, including infill drilling within the previously defined resource area, and expanding mineralization outside of the resource area - which obviously proved quite successful.
As of March, the mineralized envelope of 750 metres along strike at surface by 920 metres at depth was two to three times the size of the initial mineralized zone, which contained inferred resources of 510,000 ounces.
Some highlights of the drilling included 5.1 metres of 4.1 g/t gold, including 2.4 metres of 7.1 g/t gold in hole GW10-96, drilled to a vertical depth of 920 metres.
In addition, in February, the company scored bonanza grade gold with drill hole GW10-106, which cut 4.7 metres averaging 13.4 g/t gold, including 1.5 metres of a whopping 37 g/t gold.
The updated resource was based on data from 201 diamond drill holes, Gowest said.
To demonstrate the potential of the Frankfield East deposit to withstand fluctuations in gold prices, the company conducted a sensitivity analysis, estimating a resource at different cut-off grades. At a cut-off grade of 1.5 g/t gold, indicated resources are estimated at 422,400 contained gold ounces, or 2.7 million tonnes at a grade of 4.91 g/t gold, while inferred resources total 999,000 ounces, or 6.9 million tonnes at a grade of 4.53 g/t gold.
The average gold grade of the deposit has been changed, but with relatively limited impact on the overall deposit resources.
"We are very encouraged by the sensitivity analysis completed which clearly demonstrates the robust nature of the deposit and the fact that the majority of the ounces are contained within high- grade structures, that minimize potential impacts from fluctuations in gold prices," addded Romain.
"It is becoming increasingly apparent that the Frankfield East deposit has the characteristics of a multi-million ounce gold deposit."
Engineering studies are continuing at the property, and the company expects that the strong economics of the project will further be demonstrated in a preliminary economic study - expected in the fall.
The company added in its statement that as part of its ongoing metallurgical test program at Frankfield East, it is looking into a potential ore sorting technique that would allow for gold to be mined using more cost-effective bulk mining methods, as low grade waste material would be rejected prior to further processing.
This method, Gowest said, would allow for the deposit to be mined at a lower cut-off grade, thereby boosting the size of the overall resources.
Gowest is also working on expanding its land package in the prolific Timmins mining camp, as it recently announced acquisitions of properties located adjacent to Frankfield East.
Tuesday, 31 May 2011
St Andrew advances ramp development at Smoke Deep, mining to start by Q4
St Andrew Goldfields (TSE:SAS) said Tuesday that ramp development at its Smoke Deep Zone, part of the Holloway Mine in northeastern Ontario, has advanced to the point where the company can begin excavating to provide access to the western portion of the target.
At the end of June last year, the company made a decision to advance efforts at Smoke Deep by developing an underground ramp, designed to conduct definition drilling to test the extension of the zone, which had never before been tested.
Ramp excavation began last July, and as of this month, development crews started excavating the first crosscut to provide access to the western part of the zone.
The company said that definition drilling has started and development work is expected to be conducted during the third quarter, in order to facilitate the start of mining from Smoke Deep by the fourth quarter of this year.
Ramp development will also continue until it reaches the eastern extent of the zone, which is expected to be completed in the fourth quarter as well, at which time drilling platforms will be put in place to allow access for continued exploration, with the next phase of drilling due to begin in 2012.
2012 exploration drilling will focus on testing mineralized zones where they remain open along strike, down dip and eastwards, and where previous drilling encountered signficant results, including 5.83 g/t gold over 35.0 metres and 8.84 g/t gold over 14.0 metres.
"We are excited to see what continued exploration will return once exploration drilling resumes," said president and CEO Jacques Perron.
"While the definition drilling will provide us with the information for near term mining at Smoke Deep, the future exploration drilling has the possibility to increase the current level of resources and to extend the mine life of the Holloway Mine."
St Andrew is a gold explorer and producer with an extensive land package in the Timmins mining district, northeastern Ontario, which lies within the Abitibi greenstone belt.
At the end of June last year, the company made a decision to advance efforts at Smoke Deep by developing an underground ramp, designed to conduct definition drilling to test the extension of the zone, which had never before been tested.
Ramp excavation began last July, and as of this month, development crews started excavating the first crosscut to provide access to the western part of the zone.
The company said that definition drilling has started and development work is expected to be conducted during the third quarter, in order to facilitate the start of mining from Smoke Deep by the fourth quarter of this year.
Ramp development will also continue until it reaches the eastern extent of the zone, which is expected to be completed in the fourth quarter as well, at which time drilling platforms will be put in place to allow access for continued exploration, with the next phase of drilling due to begin in 2012.
2012 exploration drilling will focus on testing mineralized zones where they remain open along strike, down dip and eastwards, and where previous drilling encountered signficant results, including 5.83 g/t gold over 35.0 metres and 8.84 g/t gold over 14.0 metres.
"We are excited to see what continued exploration will return once exploration drilling resumes," said president and CEO Jacques Perron.
"While the definition drilling will provide us with the information for near term mining at Smoke Deep, the future exploration drilling has the possibility to increase the current level of resources and to extend the mine life of the Holloway Mine."
St Andrew is a gold explorer and producer with an extensive land package in the Timmins mining district, northeastern Ontario, which lies within the Abitibi greenstone belt.
Xtra-Gold Resources drills high grade gold at Kibi project
Xtra-Gold Resources (TSE:XTG) (TSX:XTG-S) (OTCBB:XTGR) reported Tuesday further significant drill results from the Big Bend Gold Zone on the company's Kibi project in Ghana, West Africa.
The company said that results from six new diamond core holes, which covered 1,308 metres, continue to confirm the "down-plunge continuity" of mineralization, and show the presence of higher grade gold within the Big Bend system.
Highlights from the holes reported today include 52 metres grading 2.42 g/t gold in hole KBDD11113, including 27 metres at 3.58 g/t gold and 6.09 g/t gold over 12 metres.
In addition, hole KBDD11110 intersected 50 metres of 1.64 g/t gold from 158 metres down hole, including 24 metres at 2.45 g/t gold; and hole KBDD11114 returned 50 metres at 1.31 g/t gold from surface, including 20 metres at 2.21 g/t gold.
The latest drill results are part of a 20,000 metre exploration program initiated in mid January, designed to define the Big Bend Gold Zone, as well as test other prominent gold systems on Zone 2 of the company's Kibi project.
To date, significant gold mineralization has been traced over a 300 metre strike length, and roughly 360 metres down plunge from surface along the Big Bend gold zone.
Xtra-Gold has completed 34 holes totaling 8,550 metres thus far in its current 20,000 metre program.
The company's shares rose more than 3.5% on the results, to trade at $2.02 as of 10:34am EST in the US.
The company said that results from six new diamond core holes, which covered 1,308 metres, continue to confirm the "down-plunge continuity" of mineralization, and show the presence of higher grade gold within the Big Bend system.
Highlights from the holes reported today include 52 metres grading 2.42 g/t gold in hole KBDD11113, including 27 metres at 3.58 g/t gold and 6.09 g/t gold over 12 metres.
In addition, hole KBDD11110 intersected 50 metres of 1.64 g/t gold from 158 metres down hole, including 24 metres at 2.45 g/t gold; and hole KBDD11114 returned 50 metres at 1.31 g/t gold from surface, including 20 metres at 2.21 g/t gold.
The latest drill results are part of a 20,000 metre exploration program initiated in mid January, designed to define the Big Bend Gold Zone, as well as test other prominent gold systems on Zone 2 of the company's Kibi project.
To date, significant gold mineralization has been traced over a 300 metre strike length, and roughly 360 metres down plunge from surface along the Big Bend gold zone.
Xtra-Gold has completed 34 holes totaling 8,550 metres thus far in its current 20,000 metre program.
The company's shares rose more than 3.5% on the results, to trade at $2.02 as of 10:34am EST in the US.
Extorre Gold releases further high grade gold-silver results from Cerro Moro
Extorre Gold Mines (AMEX:XG) (TSE:XG) reported Tuesday that it has continued to drill high grade gold-silver results from the Zoe discovery, part of the Cerro Moro project in Santa Cruz, Argentina.
Notable intersections included 8.00 metres at 84 grams per tonne (g/t) gold and 1,332 g/t silver, or 35.0 g/t gold equivalent in hole MD1220, including 4.15 metres at 15.2 g/t gold and 2,419 g/t silver, or 63.6 g/t gold equivalent.
Other significant results included hole MD1234, which intersected 2.00 metres at 36.3 g/t gold and 1,858 g/t silver, including 0.90 metres at 63.5 g/t gold and 3,135 g/t silver; and hole MD1253, which returned 2.00 metres at 37.0 g/t gold and 1,924 g/t silver, including 0.90 metres at 80.4 g/t gold and 4,023 g/t silver.
The company said that a total of 34 diamond drill holes now define the Zoe structure over a strike length of roughly 1.5 kilometres, one kilometre of which shows high grade gold-silver mineralization that is peripheral to a "central, bonanza grade zone".
"As with the Martina and Escondida Far West zones located west of Zoe, we are finding the near surface mineralization is generally significantly lower grade than what is found at depth," said Extorre's project manager, Fernando Chacon.
"We will therefore begin step back drilling to test for high grade mineralization at more favourable depths."
Indeed, management said it is considering moving two drill rigs to Cerro Moro from the company's other Puntudo project, which is located around 220 kilometres to the west. The move is planned for mid-June.
Of the 34 holes completed to date at the Zoe discovery, 22 have now been publicly released. Currently, there are four rigs operating at Cerro Moro, with three at the Zoe target.
Last April, the company announced that Cerro Moro had estimated indicated resources of 357,000 ounces of gold and 15.3 million ounces of silver, or 612, 000 ounces of gold equivalent, plus inferred resources of 190,000 ounces of gold and 12.0 million ounces of silver.
A preliminary economic assessment on the project last October also highlighted the robust economics of Cerro Moro, as the mine is expected to produce an average of 133,500 ounces of gold equivalent during its first five years of operations, at a cash cost of just US$201 per ounce.
Notable intersections included 8.00 metres at 84 grams per tonne (g/t) gold and 1,332 g/t silver, or 35.0 g/t gold equivalent in hole MD1220, including 4.15 metres at 15.2 g/t gold and 2,419 g/t silver, or 63.6 g/t gold equivalent.
Other significant results included hole MD1234, which intersected 2.00 metres at 36.3 g/t gold and 1,858 g/t silver, including 0.90 metres at 63.5 g/t gold and 3,135 g/t silver; and hole MD1253, which returned 2.00 metres at 37.0 g/t gold and 1,924 g/t silver, including 0.90 metres at 80.4 g/t gold and 4,023 g/t silver.
The company said that a total of 34 diamond drill holes now define the Zoe structure over a strike length of roughly 1.5 kilometres, one kilometre of which shows high grade gold-silver mineralization that is peripheral to a "central, bonanza grade zone".
"As with the Martina and Escondida Far West zones located west of Zoe, we are finding the near surface mineralization is generally significantly lower grade than what is found at depth," said Extorre's project manager, Fernando Chacon.
"We will therefore begin step back drilling to test for high grade mineralization at more favourable depths."
Indeed, management said it is considering moving two drill rigs to Cerro Moro from the company's other Puntudo project, which is located around 220 kilometres to the west. The move is planned for mid-June.
Of the 34 holes completed to date at the Zoe discovery, 22 have now been publicly released. Currently, there are four rigs operating at Cerro Moro, with three at the Zoe target.
Last April, the company announced that Cerro Moro had estimated indicated resources of 357,000 ounces of gold and 15.3 million ounces of silver, or 612, 000 ounces of gold equivalent, plus inferred resources of 190,000 ounces of gold and 12.0 million ounces of silver.
A preliminary economic assessment on the project last October also highlighted the robust economics of Cerro Moro, as the mine is expected to produce an average of 133,500 ounces of gold equivalent during its first five years of operations, at a cash cost of just US$201 per ounce.
Friday, 27 May 2011
Gold Resource Corp to distribute 11th special cash dividend in as many months
Mexico-focused Gold Resource Corp (AMEX:GORO) announced Friday that it will be distributing its eleventh special cash dividend to shareholders, benefiting from the start of commercial production at its El Aguila project last July.
The cash dividend, which has been increased to $0.04 per common share, will be paid to shareholders of record as of June 13, payable on June 17, 2011. The dividend, the eleventh in as many months since commercial production, is a direct result of cash flow generated from the company’s El Aguila operations, located in the southern state of Oaxaca, Mexico.
The total dividends declared since production now stands at $0.35 per share.
Gold Resource owns five potential high grade gold and silver properties in Oaxaca.
The cash dividend, which has been increased to $0.04 per common share, will be paid to shareholders of record as of June 13, payable on June 17, 2011. The dividend, the eleventh in as many months since commercial production, is a direct result of cash flow generated from the company’s El Aguila operations, located in the southern state of Oaxaca, Mexico.
The total dividends declared since production now stands at $0.35 per share.
Gold Resource owns five potential high grade gold and silver properties in Oaxaca.
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