Fission Energy’s (CVE:FIX) (OTCQX:FSSIF) prospecting results yesterday have got investors talking. The company’s 50/50 joint venture with ESO Uranium Corp (CVE:ESO), known as Patterson Lake South, a property on the southern boundary of the Athabasca Basin in Saskatchewan, found an additional 20 radioactive boulder and hot spots, for a total of 74.
Dundee Capital Markets re-iterated its buy rating for junior uranium explorer Fission today, as the news was viewed as “very positive”, increasing the likelihood of another basement-hosted uranium discovery in the Athabasca Basin.
Fission’s latest exploration success is not at the J-Zone on its Waterbury joint venture near Hathor Exploration’s (TSE:HAT) prolific Roughrider deposit in the eastern Athabasca, but rather, it is close to AREVA’s Cluff Lake Mine, which has previously produced 60 million pounds of uranium, and also relatively nearby the 88 million pound uranium Shea Creek Deposit owned by UEX Corp (TSE:UEX).
"While only surface mapping, radon surveying, soil sampling and boulder prospecting took place this summer, results are spectacular," Dundee noted in its latest research report.
"Radioactive boulders were found on the first day of follow up of airborne radiometric anomalies flown in 2009."
Following this year's now completed boulder sampling program, a total of 74 boulders outline a distinct 4 kilometre long, 900 metre wide, north-south trending boulder train. Moreover, 57% of these produce “off-scale" radioactive readings as measured by hand held gamma ray scintillometers.
According to the companies, the boulder train appears to be pointing back at a series of east-northeast trending geophysical conductors – a possible new uranium discovery.
Fission suggests that the northern end of the boulder train might lie close to the source of the high grade boulders, but more ground work is required to fully target the source area.
"The size of this mineralized boulder field is very encouraging, if not impressive. The boulder train that led to the discovery of Cluff Lake was estimated at about 2km long, or half the size of this Patterson Lake South boulder trend," Dundee added.
Indeed, the Cluff Lake boulder train turned into the discovery of a 60 million pound series of orebodies for AREVA.
In addition, Fission said that basement mineralization is apparent at the site, eliminating many of the technical challenges found at some Athabasca deposits.
What started out as a small, $60,000 exploration program at the property, may turn into something of a larger nature due to the recent successes. The joint venture is considering spending $200,000 on detailed ground geophysics in the fall, followed by a drilling campaign in the winter.
Both Fission and ESO have enlisted the help of structural experts to help pinpoint targets, and the encouraging results from the boulder prospecting program have led the partners to stake an additional four more claims around the potential discovery, bringing total claims in the area to 12, or 25,450 hectares.
Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Showing posts with label TSX-V. Show all posts
Showing posts with label TSX-V. Show all posts
Wednesday, 6 July 2011
Simba Energy to finalise Liberian Production Sharing Contract on 18 July
Simba Energy (CVE:SMB, OTCBB:SMBZF) will hold talks with the National Oil Company of Liberia (NOCAL) in Monrovia in the week begining 18 July, to finalise the formal Production Sharing Contract (PSC) application.
The company has already received a draft PSC from NOCAL, and Simba is currently reviewing the document.
It is expected that next week’s negotiations will lead to the onshore PSC being issued.
"The meeting represents the final step in the process for the company’s application to convert its current exploration license into a PSC,” said chief executive Robert Dinning.
“We look forward to finalizing this application process so we can begin our planned activities and continue to contribute socially to the communities within our area of work.”
Simba applied, to NOCAL, to convert its current Hydrocarbon Reconnaissance Permit (NR-001) into a Production Sharing Contract (PSC) last autumn. Since then it has had extensive meetings with NOCAL to review, advance, and finalize the application.
The application process has been complicated during this period by changes to management at NOCAL and a moratorium imposed on offshore PSC applications.
The fact that Simba’s application is for Liberia’s first onshore PSC also meant that the process has taken longer, because there wasn’t a ‘model PSC’ for onshore oil.
While Simba is poised to be the first company to secure an onshore PSC it is by no means the only oil firm with activities in Liberia.
Just offshore are several exploration ventures, including major names like Chevron and Anadarko.
In the near term these major offshore projects could be the main driver for Simba’s shares, as a successful 2011 programme for the likes of Chevron could go a long way to de-risking the whole region, auguring well for Simba’s own PSA.
Colt Resources holds $17.5m of cash in the bank - best financial position yet
Canadian junior explorer Colt Resources (CVE:GTP) reported on Tuesday that all of its remaining outstanding warrants maturing in June have been exercised.
Colt officials said that the company is presently in the strongest financial position in its history, with about $17.5 million in cash and is debt free.
"We anticipate that these funds should be sufficient to advance both of our Montemor gold and Tabuaco tungsten advanced stage exploration projects through feasibility," said Colt Resources chief executive, Nikolas Perrault.
Looking ahead, the company said it will provide an operational update on all of its key projects in Portugal by next week.
Moreover, the company also announced on Tuesday that it has granted a sum of 450,000 incentive stock options to company consultants that have a term of five years, exercisable at 75 cents a share.
Colt Resources explores for gold and tungsten, and is the second largest lease holder of mineral concessions in Portugal.
Colt officials said that the company is presently in the strongest financial position in its history, with about $17.5 million in cash and is debt free.
"We anticipate that these funds should be sufficient to advance both of our Montemor gold and Tabuaco tungsten advanced stage exploration projects through feasibility," said Colt Resources chief executive, Nikolas Perrault.
Looking ahead, the company said it will provide an operational update on all of its key projects in Portugal by next week.
Moreover, the company also announced on Tuesday that it has granted a sum of 450,000 incentive stock options to company consultants that have a term of five years, exercisable at 75 cents a share.
Colt Resources explores for gold and tungsten, and is the second largest lease holder of mineral concessions in Portugal.
Majescor Resources boosts position in Haitian subsidiary
Majescor Resources (CVE:MJX) said Tuesday that it has increased its position in its Haitian subsidiary, which owns the gold and copper SOMINE property, located in the north-east mineral district of Haiti.
SIMACT Alliance Copper Gold, through its majority position in affiliate Haitian mining company SOMINE, or Societe Miniere du Nord-Est, controls the SOMINE copper-gold property in Haiti.
Currently, SIMACT holds 63.3% of the voting shares of SOMINE.
Today, Majescor has agreed to acquire from an individual investor 13,000 voting shares of SOMINE, in exchange for 275,000 common shares and a sum of $25,000.
With this deal, Majescor, through its subsidiary, will exercise control over 65.5% of SOMINE's voting shares.
Majescor is a junior explorer whose project portfolio also includes the Mistassini uranium exploration project in Quebec, under joint-venture with Strateco Resources, and the Besakoa gold and base metal property in Madagascar.
"As the SOMINE project is Majescor's major focus property, we are pleased to continue to invest in the advancement of the project," said president and CEO Dan Hachey.
"We are gratified with the efforts of SOMINE's management and look forward to the commencement of drilling under the supervision of the Buscore team."
The transaction remains subject to regulatory approval.
SIMACT Alliance Copper Gold, through its majority position in affiliate Haitian mining company SOMINE, or Societe Miniere du Nord-Est, controls the SOMINE copper-gold property in Haiti.
Currently, SIMACT holds 63.3% of the voting shares of SOMINE.
Today, Majescor has agreed to acquire from an individual investor 13,000 voting shares of SOMINE, in exchange for 275,000 common shares and a sum of $25,000.
With this deal, Majescor, through its subsidiary, will exercise control over 65.5% of SOMINE's voting shares.
Majescor is a junior explorer whose project portfolio also includes the Mistassini uranium exploration project in Quebec, under joint-venture with Strateco Resources, and the Besakoa gold and base metal property in Madagascar.
"As the SOMINE project is Majescor's major focus property, we are pleased to continue to invest in the advancement of the project," said president and CEO Dan Hachey.
"We are gratified with the efforts of SOMINE's management and look forward to the commencement of drilling under the supervision of the Buscore team."
The transaction remains subject to regulatory approval.
Friday, 3 June 2011
Cadillac Ventures begins 2,000m drill program on K1-1 deposit at Thierry Mine
Cadillac Ventures (CVE:CDC) said Thursday that it has started its planned 2,000 metre drill program on the K1-1 deposit of its Thierry Mine copper property in northwestern Ontario, to the east of the main Thierry Mine deposit.
The new drill program is designed to undercut known mineralization at the deposit, as well as drill for extensions along strike.
The K1-1 deposit is a separate occurrence from the Thierry Mine site, where Cadillac successfully drilled and expanded mineralization along strike to the east and the west, but is also on the same property.
The company said the first hole of the new program at K1-1 has been completed, with hole K-11-04 being drilled to a depth of 660 feet.
Mineralization of varying degrees was encountered over two thirds of this hole, according to Cadillac, and three mineralized zones were found, which spanned intervals over 211.8 feet to 316 feet, 340 feet to 490 feet, and 504.75 feet to 574.20 feet.
Samples have been selected from these zones, and are currently being tested.
The Thierry mine, which is mainly a copper resource, but also includes nickel, silver, gold, platinum and palladium deposits, was last in operation under UMEX in the early 1980s, leaving significant underground development in place.
Since re-acquiring the project, Cadillac has been focused on adding to the resource in the immediate area of the mine by drilling a gap in the current deposit model, referred to as the tooth target area. Last week, the Toronto, Ontario-based company successfully finished drilling the final hole of the tooth program.
Currently, Thierry has a measured and indicated mineral resource of 6.2 million tonnes at a grade of 1.92% Cu, and an additional inferred resource of 8.4 million tonnes at a grade of 1.79% Cu.
The new drill program is designed to undercut known mineralization at the deposit, as well as drill for extensions along strike.
The K1-1 deposit is a separate occurrence from the Thierry Mine site, where Cadillac successfully drilled and expanded mineralization along strike to the east and the west, but is also on the same property.
The company said the first hole of the new program at K1-1 has been completed, with hole K-11-04 being drilled to a depth of 660 feet.
Mineralization of varying degrees was encountered over two thirds of this hole, according to Cadillac, and three mineralized zones were found, which spanned intervals over 211.8 feet to 316 feet, 340 feet to 490 feet, and 504.75 feet to 574.20 feet.
Samples have been selected from these zones, and are currently being tested.
The Thierry mine, which is mainly a copper resource, but also includes nickel, silver, gold, platinum and palladium deposits, was last in operation under UMEX in the early 1980s, leaving significant underground development in place.
Since re-acquiring the project, Cadillac has been focused on adding to the resource in the immediate area of the mine by drilling a gap in the current deposit model, referred to as the tooth target area. Last week, the Toronto, Ontario-based company successfully finished drilling the final hole of the tooth program.
Currently, Thierry has a measured and indicated mineral resource of 6.2 million tonnes at a grade of 1.92% Cu, and an additional inferred resource of 8.4 million tonnes at a grade of 1.79% Cu.
Thursday, 2 June 2011
Majescor Resources and Strateco form joint venture for Mistassini uranium property
Junior explorer Majescor Resources (CVE:MJX) said Thursday that it has now formed a joint venture with Strateco Resources (TSE:RSC) for the Mistassini uranium property, located in the Otish Mountains district of northern Quebec.
In February, Strateco fulfilled its obligations of the two companies' option agreement, having incurred more than $1.3 million in exploration expenses over a three period on the property.
As a result, Strateco acquired a 60% interest in the uranium rights of the Mistassini project, and in mid-May, it executed a formal joint venture with Majescor, having an effective date of February 14, the companies said.
Under the terms of the joint venture deal, Strateco will be the operator of the partnership and will lead the exploration of uranium on the property, with full and exclusive access, as long as it retains a 50% interest.
Northern Superior Resources, which holds 100% of the diamond rights and 50.5% of all other mineral rights on the property, excluding diamonds and uranium, said it will not conduct exploration work on Mistassini during the duration of the joint venture. In exchange for this, Northern is entitled to a 2% yellow cake royalty on the project.
The Mistassini property is comprised of 171 map-designated claims for a total area of 9,115 hectares. The property is host to the Lac Mantouchiche uranium showing, where in November 2007, Majescor drilled an 18.5-metre intersection, grading 0.215% uranium oxide at a vertical depth of 47 metres in hole MIST-07-03.
In addition to the Mistassini uranium property, Majescor's project portfolio includes the Somine copper-gold property in Haiti and the Besakoa gold and base metal property in Madagascar.
In February, Strateco fulfilled its obligations of the two companies' option agreement, having incurred more than $1.3 million in exploration expenses over a three period on the property.
As a result, Strateco acquired a 60% interest in the uranium rights of the Mistassini project, and in mid-May, it executed a formal joint venture with Majescor, having an effective date of February 14, the companies said.
Under the terms of the joint venture deal, Strateco will be the operator of the partnership and will lead the exploration of uranium on the property, with full and exclusive access, as long as it retains a 50% interest.
Northern Superior Resources, which holds 100% of the diamond rights and 50.5% of all other mineral rights on the property, excluding diamonds and uranium, said it will not conduct exploration work on Mistassini during the duration of the joint venture. In exchange for this, Northern is entitled to a 2% yellow cake royalty on the project.
The Mistassini property is comprised of 171 map-designated claims for a total area of 9,115 hectares. The property is host to the Lac Mantouchiche uranium showing, where in November 2007, Majescor drilled an 18.5-metre intersection, grading 0.215% uranium oxide at a vertical depth of 47 metres in hole MIST-07-03.
In addition to the Mistassini uranium property, Majescor's project portfolio includes the Somine copper-gold property in Haiti and the Besakoa gold and base metal property in Madagascar.
Goldrush closes $3.4m private placement financing
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.
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.
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.
Redhill extends strike length of Deflector to 800 metres
Redhill Resources (CVE:RHR) announced Wednesday that it has extended the strike length of its Deflector Deposit to a total of 800 metres, after recent drill results at its Gullewa copper-gold Project in Australia expanded known mineralization area by 60 metres.
The Gullewa project is operated by Mutiny Gold, after being optioned to the company in July 2010.
The results from the first 15 holes of Redhill's ongoing reverse circulation drill program, designed to delineate southern extensions to the Deflector deposit, returned 8 metres at 3.0g/t gold and 0.9% copper in hole 11DRC038 and 3.0 metres at 5.7 g/t gold and 0.4% copper in hole 11DRC036.
Other notable results included 3.0 metres at 6.7 g/t gold and 1.0% copper in hole 11DRC040; and one metre at 3.6 g/t gold and 5.8% copper in hole 11DRC042, among other positive finds.
Each hole was drilled on three lines immediately to the south of the known West Lode mineralization, extending the strike length by 60 metres.
The company said the results will be included into a revised resource estimate, to be carried out once drill programs are concluded.
The Gullewa project is located about 450 kilometres north of Perth, Australia, and hosts several gold deposits, varying in size and grade.
The most significant is the Deflector gold-copper deposit, which has estimated measured and indicated resources of 1.7 million tonnes measuring 4.18 g/t of gold, 6.87 g/t of silver and 1.03 g/t of copper, and estimated inferred resources of 1.6 million tonnes measuring 6.50 g/t of gold, 3.41 g/t of silver and 0.48 g/t of copper.
A surface geochemical mapping program is underway at the Deflector Deposit to improve the targeting of drilling programs. Redhill said further drilling in the area will focus on historical data, as the program targets geological anomalies in fresh rock.
Redhill's positive drill results prompted its stock on the TSX Venture Exchange to hike up 5.88% on Wednesday afternoon to trade at $0.90 per share.
The Gullewa project is operated by Mutiny Gold, after being optioned to the company in July 2010.
The results from the first 15 holes of Redhill's ongoing reverse circulation drill program, designed to delineate southern extensions to the Deflector deposit, returned 8 metres at 3.0g/t gold and 0.9% copper in hole 11DRC038 and 3.0 metres at 5.7 g/t gold and 0.4% copper in hole 11DRC036.
Other notable results included 3.0 metres at 6.7 g/t gold and 1.0% copper in hole 11DRC040; and one metre at 3.6 g/t gold and 5.8% copper in hole 11DRC042, among other positive finds.
Each hole was drilled on three lines immediately to the south of the known West Lode mineralization, extending the strike length by 60 metres.
The company said the results will be included into a revised resource estimate, to be carried out once drill programs are concluded.
The Gullewa project is located about 450 kilometres north of Perth, Australia, and hosts several gold deposits, varying in size and grade.
The most significant is the Deflector gold-copper deposit, which has estimated measured and indicated resources of 1.7 million tonnes measuring 4.18 g/t of gold, 6.87 g/t of silver and 1.03 g/t of copper, and estimated inferred resources of 1.6 million tonnes measuring 6.50 g/t of gold, 3.41 g/t of silver and 0.48 g/t of copper.
A surface geochemical mapping program is underway at the Deflector Deposit to improve the targeting of drilling programs. Redhill said further drilling in the area will focus on historical data, as the program targets geological anomalies in fresh rock.
Redhill's positive drill results prompted its stock on the TSX Venture Exchange to hike up 5.88% on Wednesday afternoon to trade at $0.90 per share.
Prophecy shareholders approve sale of 2 Canadian nickel assets, name change to Prophecy Coal
Prophecy Resource Corp. (CVE:PCY)(OTCQX: PRPCF) and Pacific Coast Nickel Corp. (CVE:NKL) said Wednesday that both companies' shareholders have approved Pacific's acquisition of the Lynn Lake and Wellgreen nickel properties from Prophecy, a deal that will allow Prophecy to focus on its coal assets in Mongolia.
The Lynn Lake project is loacted in Manitoba, while the Wellgreen property is situated in the Yukon Territories, both in Canada.
Of the shareholders, more than 98% from Prophecy approved the deal, which was announced in April, and 75% of Pacific stakeholders supported the arrangement. Under the terms of the acquisition, Pacific Coast agreed to acquire both Canadian assets by issuing 450 million shares to Prophecy.
In connection with the deal, shareholders of Prophecy also approved a name change to "Prophecy Coal Corp" so as to better reflect its strategic direction going forward, while Pacific investors approved a 10:1 share consolidation, both companies said.
The sale of the properties, as well as the name change and share consolidation, remain subject to regulatory approvals. The deal is expected to complete around June 9.
Prophecy controls over 1.4 billion tonnes of surface minable thermal coal resources in Mongolia. Prophecy's Ulaan Ovoo coal mine is operational, and its Chandgana mine mouth power plant is currently being permitted.
The company also owns equity stakes in Victory Nickel and Compliance Energy Corp.
Pacific Coast is a Canadian based nickel and platinum group metals exploration company, with projects in Canada, Argentina and Uruguay.
The Lynn Lake project is loacted in Manitoba, while the Wellgreen property is situated in the Yukon Territories, both in Canada.
Of the shareholders, more than 98% from Prophecy approved the deal, which was announced in April, and 75% of Pacific stakeholders supported the arrangement. Under the terms of the acquisition, Pacific Coast agreed to acquire both Canadian assets by issuing 450 million shares to Prophecy.
In connection with the deal, shareholders of Prophecy also approved a name change to "Prophecy Coal Corp" so as to better reflect its strategic direction going forward, while Pacific investors approved a 10:1 share consolidation, both companies said.
The sale of the properties, as well as the name change and share consolidation, remain subject to regulatory approvals. The deal is expected to complete around June 9.
Prophecy controls over 1.4 billion tonnes of surface minable thermal coal resources in Mongolia. Prophecy's Ulaan Ovoo coal mine is operational, and its Chandgana mine mouth power plant is currently being permitted.
The company also owns equity stakes in Victory Nickel and Compliance Energy Corp.
Pacific Coast is a Canadian based nickel and platinum group metals exploration company, with projects in Canada, Argentina and Uruguay.
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.
Rambler agree new exploration tie-up to feed Nugget Pond plant
Rambler Metals and Mining (LON:RMM, CVE:RAB) has agreed a new tie-up with Maritime Resources Corp (CVE:MAE) and Commander Resources Corp (CVE:CMD) to explore the Green Bay area of Newfoundland and Labrador.
The companies will share technical expertise through this new alliance as they focus on two main properties - Hammerdown and Orion.
"The signing of this Alliance allows the marrying of Maritime's success in exploration and Rambler's ability to develop projects from exploration all the way through to production,” said Rambler’s corporate development vice president Peter Mercer.
He added: “The Alliance also provides Rambler with the opportunity to bolster our potential project pipeline and improve our ability to grow the company over the longer term."
Hammerdown, a gold mine that was in production between 2000 and 2004, used to feed ore to the Nugget Pond processing facility – which was acquired and modified by Rambler last year.
It produced 157,000 ounces of gold from 315,000 tonnes of ore, with average grades of 16.1 grams per tonne. The mine was closed after it ran out of economical ore – back when gold prices were below US$300 an ounce (the current price is around US$1,530).
The exploration efforts are currently focused on un-mined veins and remnant pillars.
At Orion the plan is to evaluate the potential for a mining operation that will feed Nugget Pond. At the moment Orion has a NI43-101 resource of 119,374 ounces of gold (inferred) – with 710,285 tonnes grading 5.227 g/t gold.
Maritime is currently working through a diamond drill programme that is aiming to extend known mineralization, whilst upgrading the resource category. So far the exploration highlights include 2.10 metres of 7.47 g/t gold and 1.20 metres grading 16.58 g/t.
Rambler said that the first priority will be to compile all existing information on the Hammerdown mine followed by an economic assessment, which will determine how much of the un-mined material can be profitably mined, trucked and processed at current gold prices.
It also highlighted that a quick start-up to production will be the primary focus, given the majority of the infrastructure is already in place. An effort will also be made to evaluate the expansion of the old mine.
Commander Resources currently own 100 percent of the Green Bay properties but Maritime has an option over a 50 percent stake in the assets. The two companies share a common management team.
"Working in a cooperative manner with Rambler will help shareholders of all parties optimize the value of their respective assets,” said Eric Norton, chief executive of both Maritime and Commander.
“The availability of a mill locally, with a proven track record of high recoveries of gold from this ore, has the potential to significantly accelerate the opportunity of early cash flow to Maritime and Commander".
The companies will share technical expertise through this new alliance as they focus on two main properties - Hammerdown and Orion.
"The signing of this Alliance allows the marrying of Maritime's success in exploration and Rambler's ability to develop projects from exploration all the way through to production,” said Rambler’s corporate development vice president Peter Mercer.
He added: “The Alliance also provides Rambler with the opportunity to bolster our potential project pipeline and improve our ability to grow the company over the longer term."
Hammerdown, a gold mine that was in production between 2000 and 2004, used to feed ore to the Nugget Pond processing facility – which was acquired and modified by Rambler last year.
It produced 157,000 ounces of gold from 315,000 tonnes of ore, with average grades of 16.1 grams per tonne. The mine was closed after it ran out of economical ore – back when gold prices were below US$300 an ounce (the current price is around US$1,530).
The exploration efforts are currently focused on un-mined veins and remnant pillars.
At Orion the plan is to evaluate the potential for a mining operation that will feed Nugget Pond. At the moment Orion has a NI43-101 resource of 119,374 ounces of gold (inferred) – with 710,285 tonnes grading 5.227 g/t gold.
Maritime is currently working through a diamond drill programme that is aiming to extend known mineralization, whilst upgrading the resource category. So far the exploration highlights include 2.10 metres of 7.47 g/t gold and 1.20 metres grading 16.58 g/t.
Rambler said that the first priority will be to compile all existing information on the Hammerdown mine followed by an economic assessment, which will determine how much of the un-mined material can be profitably mined, trucked and processed at current gold prices.
It also highlighted that a quick start-up to production will be the primary focus, given the majority of the infrastructure is already in place. An effort will also be made to evaluate the expansion of the old mine.
Commander Resources currently own 100 percent of the Green Bay properties but Maritime has an option over a 50 percent stake in the assets. The two companies share a common management team.
"Working in a cooperative manner with Rambler will help shareholders of all parties optimize the value of their respective assets,” said Eric Norton, chief executive of both Maritime and Commander.
“The availability of a mill locally, with a proven track record of high recoveries of gold from this ore, has the potential to significantly accelerate the opportunity of early cash flow to Maritime and Commander".
Selwyn Resources closes second tranche of special warrant financing
Selwyn Resources (CVE:SWN) on Tuesday said that it has closed the second tranche of its $15 million special warrant financing through Paradigm Capital.
The mineral explorer raised $4.68 million from the sale of 18.7 million special warrants. The company said that a third tranche of the offering is expected to be completed by June 3.
On May 27, 2011, the company closed the first part of the $15 million special warrant offering, first announced in late March.
Each special warrant will be convertible into one common share of Selwyn and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at $0.40, for a period of 24 months after the closing date of the offering.
The proceeds will be used by Selwyn to finance the acquisition of ScoZinc, which owns the Scotia zinc-lead mine-mill complex in Novia Scotia, from Acadian Mining Corp. The acquisition is expected to close on or about May 31, 2011.
The mineral explorer raised $4.68 million from the sale of 18.7 million special warrants. The company said that a third tranche of the offering is expected to be completed by June 3.
On May 27, 2011, the company closed the first part of the $15 million special warrant offering, first announced in late March.
Each special warrant will be convertible into one common share of Selwyn and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at $0.40, for a period of 24 months after the closing date of the offering.
The proceeds will be used by Selwyn to finance the acquisition of ScoZinc, which owns the Scotia zinc-lead mine-mill complex in Novia Scotia, from Acadian Mining Corp. The acquisition is expected to close on or about May 31, 2011.
Copper Fox commences 2011 drilling at Schaft Creek
Copper Fox (CVE:CUU) announced Tuesday that it has started the diamond drilling of hole DDH CF407-2011 on its Schaft Creek property in northwestern British Columbia, kick starting its 2011 8,000 metre program.
The drill hole is designed to test the eastern extension of a large chargeability anomaly associated with a zone of higher-grade mineralization identified last year.
"This anomaly is interpreted to have the best potential to substantially expand the limits of the mineralization in the Schaft Creek deposit," said president and CEO Elmer B. Stewart.
DDH CF407-2011 is positioned on the same site as DDH CF406-2010, which was intersected in 2010, but at a steeper angle and a deeper target of minimum 800 metres. A second diamond drill is expected to arrive at Schaft Creek by mid-June.
The primary objective of the 2011 drilling program is to test at depth a 1,200m long by 600m wide portion of the large anomaly, as well as test zones of mineralization located on recently-acquired lands immediately north of the Schaft Creek deposit.
In 2008, a pre-feasibility study (PFS) estimated the Schaft Creek project to have a before tax net present value of $2.8 billion over a 23-year mine life, at an 8% discount rate.
The PFS estimated measured resources of 463.5 million tonnes grading 0.30% copper, 0.23 g/t gold, 0.02% molybdenum and 1.55 g/t silver, with indicated resources of 929.8 million tonnes grading 0.23% copper, 0.15 g/t gold, 0.02% molybdenum and 1.56 g/t silver.
Copper Fox said its first priority is to complete its feasibility study on the Schaft Creek property by the end of the third quarter. An updated resource report is also expected shortly.
The drill hole is designed to test the eastern extension of a large chargeability anomaly associated with a zone of higher-grade mineralization identified last year.
"This anomaly is interpreted to have the best potential to substantially expand the limits of the mineralization in the Schaft Creek deposit," said president and CEO Elmer B. Stewart.
DDH CF407-2011 is positioned on the same site as DDH CF406-2010, which was intersected in 2010, but at a steeper angle and a deeper target of minimum 800 metres. A second diamond drill is expected to arrive at Schaft Creek by mid-June.
The primary objective of the 2011 drilling program is to test at depth a 1,200m long by 600m wide portion of the large anomaly, as well as test zones of mineralization located on recently-acquired lands immediately north of the Schaft Creek deposit.
In 2008, a pre-feasibility study (PFS) estimated the Schaft Creek project to have a before tax net present value of $2.8 billion over a 23-year mine life, at an 8% discount rate.
The PFS estimated measured resources of 463.5 million tonnes grading 0.30% copper, 0.23 g/t gold, 0.02% molybdenum and 1.55 g/t silver, with indicated resources of 929.8 million tonnes grading 0.23% copper, 0.15 g/t gold, 0.02% molybdenum and 1.56 g/t silver.
Copper Fox said its first priority is to complete its feasibility study on the Schaft Creek property by the end of the third quarter. An updated resource report is also expected shortly.
Wednesday, 1 June 2011
EurOmax Resources' shareholders re-elect board members
Canada-based mineral explorer EurOmax Resources (CVE:EOX) said Wednesday that company CEO Mark Gustafson, chairman John Nugent, Randal Matkaluk and Donald Siemens were re-elected to its board of directors, following an annual general meeting for shareholders held yesterday.
In addition, Gustafson and Nugen were each re-appointed to their roles of president and CEO, and executive chairman, respectively. Meanwhile, Aurora Davidson has been re-instated as CFO, and appointed as corporate secretary.
"On behalf of the board of directors, we thank the shareholders who voted 41 million shares (99% of shares cast) to support the continued mandate for the company," said Nugent.
"We are proceeding actively with our drilling and geophysical programs announced on May 3 and look forward to the results of our 2011 exploration program in Southeastern Europe.”
EurOmax has a number of precious and base metal projects in Southeastern Europe, specifically in Bulgaria, Serbia and Macedonia.
The four projects it will work on this year include the Trun gold property in Bulgaria; the Ilovitza copper-gold porphyry project in Macedonia; KMC in Serbia; and the Breznik gold-silver property in Bulgaria.
In addition, Gustafson and Nugen were each re-appointed to their roles of president and CEO, and executive chairman, respectively. Meanwhile, Aurora Davidson has been re-instated as CFO, and appointed as corporate secretary.
"On behalf of the board of directors, we thank the shareholders who voted 41 million shares (99% of shares cast) to support the continued mandate for the company," said Nugent.
"We are proceeding actively with our drilling and geophysical programs announced on May 3 and look forward to the results of our 2011 exploration program in Southeastern Europe.”
EurOmax has a number of precious and base metal projects in Southeastern Europe, specifically in Bulgaria, Serbia and Macedonia.
The four projects it will work on this year include the Trun gold property in Bulgaria; the Ilovitza copper-gold porphyry project in Macedonia; KMC in Serbia; and the Breznik gold-silver property in Bulgaria.
African Queen receives exploration license for Kenyan area
African Queen Mines (CVE:AQ) said Wednesday that it has received a special license from the Kenyan government, giving the company exclusive rights to prospect and explore for copper, gold and other minerals for a period of two years in an 850 square kilometre area.
The region is known as Karameri in the West Pokot District in Western Kenya, near the border with Uganda.
The license area is roughly 240 kilometres north of the city of Kisumu, where the company maintains its principal base of operations in the region and manages joint ventures for the Rongo and Ugunja projects.
Karameri is said to be prospective for copper, gold, iron ore and nickel, and remains largely underexplored, with the last comprehensive exploration work conducted during the 1930s.
The company's planned upcoming exploration program on the license area will include detailed mapping and dating of rock types, which are similar to the rocks observed at African Queen's King Solomon project in Mozambique, it said.
The phase one campaign is now being laid out, and will begin after the company receives all required environmental permits.
“We are very gratified to have been granted the Karameri License by the Commissioner," said CEO Irwin Olian.
"This allows us to expand our gold and metals exploration efforts in Western Kenya.
"We are now working on three properties in the region out of our Kisumu headquarters and are striving to create a success for all concerned through well-conceived and funded programs.”
African Queen explores for diamonds, gold and other metals through mineral properties in Southern and West Africa.
In Kenya, aside from the 850 square kilometre license, it has a further 737 sq. km. of gold and other minerals licenses.
Shares in the company rose more than 3% to $0.33 as of 12:37pm EST.
The region is known as Karameri in the West Pokot District in Western Kenya, near the border with Uganda.
The license area is roughly 240 kilometres north of the city of Kisumu, where the company maintains its principal base of operations in the region and manages joint ventures for the Rongo and Ugunja projects.
Karameri is said to be prospective for copper, gold, iron ore and nickel, and remains largely underexplored, with the last comprehensive exploration work conducted during the 1930s.
The company's planned upcoming exploration program on the license area will include detailed mapping and dating of rock types, which are similar to the rocks observed at African Queen's King Solomon project in Mozambique, it said.
The phase one campaign is now being laid out, and will begin after the company receives all required environmental permits.
“We are very gratified to have been granted the Karameri License by the Commissioner," said CEO Irwin Olian.
"This allows us to expand our gold and metals exploration efforts in Western Kenya.
"We are now working on three properties in the region out of our Kisumu headquarters and are striving to create a success for all concerned through well-conceived and funded programs.”
African Queen explores for diamonds, gold and other metals through mineral properties in Southern and West Africa.
In Kenya, aside from the 850 square kilometre license, it has a further 737 sq. km. of gold and other minerals licenses.
Shares in the company rose more than 3% to $0.33 as of 12:37pm EST.
Selwyn Resources completes acquisition of Scotia mine, to restart operations
Selwyn Resources (CVE:SWN) announced Wednesday that it has completed its $10 million acquisition of ScoZinc, which owns the Scotia lead-zinc mine in Nova Scotia.
Selwyn said it plans to shortly raise US$30 million of debt financing to provide US$20 million in capital to restart the Scotia Mine, with the remainder to be used for working capital.
A new mine plan and economic model is currently in preparation for the Scotia Mine, based on a recent NI 43-101 compliant resource estimate.
Operations are planned to resume at the Main deposit, with efforts to expand reserves, and the company also intends to expand the mine life with the development of the Northeast and Getty deposits.
At a base case 1.5% zinc equivalent cut-off value, the Main Zone is now projected to have measured and indicated resources of 2.89 million tonnes, grading 4.2% zinc and 1.9% lead, plus an inferred resource of 1.57 million tonnes, grading 3.3% zinc and 1.3% lead.
Meanwhile, the Northeast Zone is estimated to have an indicated mineral resource of 1.58 million tonnes grading 4.21% zinc and 2.22% lead, plus an inferred resource of 1.88 million tonnes grading 2.7% zinc and 1.86% lead, at a 2% zinc equivalent cutoff value.
Selwyn said that definition drilling of the Main and Northeast deposits are targeted to define sufficient mineral resources and reserves to support upwards of 10 years of production at the Scotia Mine.
According to a recent engineering review, there is potential for the mill to produce up to 3,000 tonnes per day, up from the historic rate of 2,200 tonnes per day, as it would allow the processing of lower grade ores.
This improved mining and processing rate is anticipated to reduce the cash cost of production and improve the overall project economics.
The acquisition of the Scotia mine is expected to provide the company with cash flow to fund the development of its Selwyn project in the Yukon Territories, under a joint venture with Chihong Canada Mining.
“The completion of the acquisition of the shares of ScoZinc Limited marks a turning point, as it provides an early opportunity for Selwyn to join the ranks of the producers," said president and CEO Dr. Harlan Meade.
"The projected cash flows from the re-start of the Scotia Mine expected in early 2012 are strategically important to the securing of debt and equity for the development of the Selwyn Project.
Selwyn has already added several key hires to its senior management to undertake the restart of the Scotia mine.
The Scotia mine is located approximately 50 kilometres northeast of Halifax, within a lease that consists of 615 hectares of mineral rights, as well as five exploration licences for a total of 1,473 hectares.
Selwyn said it plans to shortly raise US$30 million of debt financing to provide US$20 million in capital to restart the Scotia Mine, with the remainder to be used for working capital.
A new mine plan and economic model is currently in preparation for the Scotia Mine, based on a recent NI 43-101 compliant resource estimate.
Operations are planned to resume at the Main deposit, with efforts to expand reserves, and the company also intends to expand the mine life with the development of the Northeast and Getty deposits.
At a base case 1.5% zinc equivalent cut-off value, the Main Zone is now projected to have measured and indicated resources of 2.89 million tonnes, grading 4.2% zinc and 1.9% lead, plus an inferred resource of 1.57 million tonnes, grading 3.3% zinc and 1.3% lead.
Meanwhile, the Northeast Zone is estimated to have an indicated mineral resource of 1.58 million tonnes grading 4.21% zinc and 2.22% lead, plus an inferred resource of 1.88 million tonnes grading 2.7% zinc and 1.86% lead, at a 2% zinc equivalent cutoff value.
Selwyn said that definition drilling of the Main and Northeast deposits are targeted to define sufficient mineral resources and reserves to support upwards of 10 years of production at the Scotia Mine.
According to a recent engineering review, there is potential for the mill to produce up to 3,000 tonnes per day, up from the historic rate of 2,200 tonnes per day, as it would allow the processing of lower grade ores.
This improved mining and processing rate is anticipated to reduce the cash cost of production and improve the overall project economics.
The acquisition of the Scotia mine is expected to provide the company with cash flow to fund the development of its Selwyn project in the Yukon Territories, under a joint venture with Chihong Canada Mining.
“The completion of the acquisition of the shares of ScoZinc Limited marks a turning point, as it provides an early opportunity for Selwyn to join the ranks of the producers," said president and CEO Dr. Harlan Meade.
"The projected cash flows from the re-start of the Scotia Mine expected in early 2012 are strategically important to the securing of debt and equity for the development of the Selwyn Project.
Selwyn has already added several key hires to its senior management to undertake the restart of the Scotia mine.
The Scotia mine is located approximately 50 kilometres northeast of Halifax, within a lease that consists of 615 hectares of mineral rights, as well as five exploration licences for a total of 1,473 hectares.
Edgewater finds new gold zone at Enchi project
Edgewater Exploration said Wednesday that it has discovered a new gold zone on its Enchi project in southwestern Ghana, reporting results from the first four diamond drill holes on the Sewum South prospect.
The first holes represent the start of a major 10,000 metre drill program on Sewum, designed to test a 7 kilometre long gold anomaly that straddles the largely untested Sewum Shear Zone.
The Sewum Shear Zone represents a major splay off the regional scale Bibiani Fault, which is similar to Kinross Gold's 5 million ounce Chirano Gold mine, whose Chirano Shear Zone is another splay off the Bibiani Fault.
"These are very exciting results obtained from an underexplored region of the project, situated almost two kilometres away from the closest known drill hole," said CEO George Salamis.
"The significance of this new gold discovery at Sewum South cannot be underestimated, given the intensity of shearing, brecciation and related gold mineralization intersected at shallow depths in the first 4 holes in this new gold prospect."
Results include 29 metres of 2.01 g/t gold in hole SWDDH001; 17 metres of 1.59 g/t gold in hole SWDDH003; and 26 metres of 1.15 g/t gold in hole SWDDH004.
The company said a further 21 holes have been drilled, with results still pending.
"These recent drill results confirm our strong belief that Enchi is host to several zones of significant gold mineralization with high potential for further discoveries, within one of the largest single exploration concessions covering favorable geology in Western Ghana," added Salamis.
The Sewum Shear Zone hosts numerous gold prospects along its length, with the Sewum South, Sewum Central and Sewum North gold prospects.
The company started drilling on Sewum South in April, and has so far completed 25 holes for a total of 3,426 metres. Contracts for over 30,000 metres of drilling at Enchi have been signed for 2011.
Enchi's project area is comprised of eight contiguous licences and covers a strike length of 50 kilometres.
Aside from Enchi, Edgewater is also developing its Corcoesto gold project in northwest Spain.
The first holes represent the start of a major 10,000 metre drill program on Sewum, designed to test a 7 kilometre long gold anomaly that straddles the largely untested Sewum Shear Zone.
The Sewum Shear Zone represents a major splay off the regional scale Bibiani Fault, which is similar to Kinross Gold's 5 million ounce Chirano Gold mine, whose Chirano Shear Zone is another splay off the Bibiani Fault.
"These are very exciting results obtained from an underexplored region of the project, situated almost two kilometres away from the closest known drill hole," said CEO George Salamis.
"The significance of this new gold discovery at Sewum South cannot be underestimated, given the intensity of shearing, brecciation and related gold mineralization intersected at shallow depths in the first 4 holes in this new gold prospect."
Results include 29 metres of 2.01 g/t gold in hole SWDDH001; 17 metres of 1.59 g/t gold in hole SWDDH003; and 26 metres of 1.15 g/t gold in hole SWDDH004.
The company said a further 21 holes have been drilled, with results still pending.
"These recent drill results confirm our strong belief that Enchi is host to several zones of significant gold mineralization with high potential for further discoveries, within one of the largest single exploration concessions covering favorable geology in Western Ghana," added Salamis.
The Sewum Shear Zone hosts numerous gold prospects along its length, with the Sewum South, Sewum Central and Sewum North gold prospects.
The company started drilling on Sewum South in April, and has so far completed 25 holes for a total of 3,426 metres. Contracts for over 30,000 metres of drilling at Enchi have been signed for 2011.
Enchi's project area is comprised of eight contiguous licences and covers a strike length of 50 kilometres.
Aside from Enchi, Edgewater is also developing its Corcoesto gold project in northwest Spain.
Millrock Resources increases size of Estelle property
Millrock Resources (CVE:MRO) said Wednesday that it has expanded its Estelle gold property in Alaska through the staking of additional claims.
The project is under option to Teck American, a subsidiary of Teck Resources, and the new claims have been included under the agreement, which allows Teck to buy up to 65% of the Estelle property, Millrock said.
The additional claims were staked by Millrock following geological and geochemical surveys carried out last year, using funding from a strategic alliance with Altius Resources.
Millrock said the expansion covers ground that hosts "very strong" historic drill core and surface chip sample values, including a drill intersection of 3.0 g/t gold over 29.6 metres and a chip sample grading 18.0 g/t gold over 9./9 metres.
The company plans to drill a hole near this location, as part of the 2011 exploration program, the plans for which have now been finalized, with field work expected to begin in July.
Millrock will act as the manger of the drill campaign, for which US$3.5 million has been budgeted.
“The addition of the new claims increases the chances of Millrock making a significant gold discovery at Estelle," said president and CEO Gregory Beischer.
"We see potential for both very large, porphyry-style gold deposits and high-grade structurally controlled deposits.
"We have a strong budget and a great chance of making a discovery this year."
At Estelle, four main zones of large-scale anomalous gold geochemistry have been identified over the past two years, including Shoeshine, Oxide Ridge, RPM and Stoney.
Located approximately 160 km northwest of Anchorage, Alaska, the property is adjacent to Kiska Metals' Whistler copper-gold deposit.
Separately, Millrock also announced today that Teck has exercised all of the warrants it held in the company early, increasing Teck's ownership.
A total of 1.4 million warrants were exercised at a price of $0.53 for proceeds of $0.72 million. The warrants were initially issued in May 2010, when Teck initially took a state in Millrock through a private placement financing.
The project is under option to Teck American, a subsidiary of Teck Resources, and the new claims have been included under the agreement, which allows Teck to buy up to 65% of the Estelle property, Millrock said.
The additional claims were staked by Millrock following geological and geochemical surveys carried out last year, using funding from a strategic alliance with Altius Resources.
Millrock said the expansion covers ground that hosts "very strong" historic drill core and surface chip sample values, including a drill intersection of 3.0 g/t gold over 29.6 metres and a chip sample grading 18.0 g/t gold over 9./9 metres.
The company plans to drill a hole near this location, as part of the 2011 exploration program, the plans for which have now been finalized, with field work expected to begin in July.
Millrock will act as the manger of the drill campaign, for which US$3.5 million has been budgeted.
“The addition of the new claims increases the chances of Millrock making a significant gold discovery at Estelle," said president and CEO Gregory Beischer.
"We see potential for both very large, porphyry-style gold deposits and high-grade structurally controlled deposits.
"We have a strong budget and a great chance of making a discovery this year."
At Estelle, four main zones of large-scale anomalous gold geochemistry have been identified over the past two years, including Shoeshine, Oxide Ridge, RPM and Stoney.
Located approximately 160 km northwest of Anchorage, Alaska, the property is adjacent to Kiska Metals' Whistler copper-gold deposit.
Separately, Millrock also announced today that Teck has exercised all of the warrants it held in the company early, increasing Teck's ownership.
A total of 1.4 million warrants were exercised at a price of $0.53 for proceeds of $0.72 million. The warrants were initially issued in May 2010, when Teck initially took a state in Millrock through a private placement financing.
Monday, 30 May 2011
Great Western Minerals to acquire 100% of Rare Earth Extraction Co
Rare earths processor Great Western Minerals (CVE:GWG) said Monday that it has initiated the process to acquire the remaining shares not already held by the company in Rare Earth Extraction Co. (Rareco), resulting in a 100% stake.
To date, Great Western holds 93.1% of Rareco, having progressively increased its holding in the company, which owns the Steenkampskraal rare earth mine in South Africa, since last year.
In late November, Great Western, which at the time held nearly 21% of Rareco, announced that it intended to make an all-cash offer to purchase all of the shares it did not already hold at a price of 3 South African Rand per share, or US$0.43.
"Moving to acquire 100% of Rareco furthers our company's ability to execute its fast track schedule for the Steenkampskraal property," said president and CEO Jim Engdahl.
"In conjunction with the recent approval from the National Nuclear Regulator of South Africa for Great Western's work program at Steenkampskraal, our company is in a very strong position to continue its rapid advancement, having executed the steps to acquire Rareco, right on schedule," he added.
In April, Great Western announced that it has fast-tracked its development plans for Steenkampskraal, now targeting the start of underground mining operations in the first quarter of 2012.
The company has also nearly doubled the planned level of production at the site to approximately 5,000 tonnes of rare earth oxides (REO) per year, up from the 2,700 tonnes originally anticipated.
Great Western intends to immediately begin the refurbishment of the previously-producing mine shaft at the Steenkampskraal site.
The company's specialty rare earth alloys are used in the battery, magnet and aerospace industries. The company also holds interests in seven rare earth exploration and development properties in North America.
To date, Great Western holds 93.1% of Rareco, having progressively increased its holding in the company, which owns the Steenkampskraal rare earth mine in South Africa, since last year.
In late November, Great Western, which at the time held nearly 21% of Rareco, announced that it intended to make an all-cash offer to purchase all of the shares it did not already hold at a price of 3 South African Rand per share, or US$0.43.
"Moving to acquire 100% of Rareco furthers our company's ability to execute its fast track schedule for the Steenkampskraal property," said president and CEO Jim Engdahl.
"In conjunction with the recent approval from the National Nuclear Regulator of South Africa for Great Western's work program at Steenkampskraal, our company is in a very strong position to continue its rapid advancement, having executed the steps to acquire Rareco, right on schedule," he added.
In April, Great Western announced that it has fast-tracked its development plans for Steenkampskraal, now targeting the start of underground mining operations in the first quarter of 2012.
The company has also nearly doubled the planned level of production at the site to approximately 5,000 tonnes of rare earth oxides (REO) per year, up from the 2,700 tonnes originally anticipated.
Great Western intends to immediately begin the refurbishment of the previously-producing mine shaft at the Steenkampskraal site.
The company's specialty rare earth alloys are used in the battery, magnet and aerospace industries. The company also holds interests in seven rare earth exploration and development properties in North America.
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