NeoStem (AMEX:NBS)
said Tuesday revenue from continuing operations rose nearly 55 per cent
in the second quarter as the cell therapy company continues to complete
the divestiture of its Chinese generic pharmaceutical business.
For
the three months that ended June 30, revenues from continuing
operations, which consist of the company's cellular therapy business in
the United States, were $3.4 million, versus $2.2 million a year
earlier.
The growth was driven mainly by clinical service
revenues in the company's Progenitor Cell Therapy (PCT) manufacturing
subsidiary, reflecting increased penetration into the cell therapy
marketplace.
The company also said it saw a general increase in
the development of autologous cell therapies in the United States due to
enhanced investment and expanded marketing programs both this year and
last.
NeoStem's
business combines a contract development and manufacturing organization
(CDMO) with a cell therapy product development program. The results
from Erye, a China based generic pharma company NeoStem is divesting, were included only in discontinued operations.
Since the announcement on June 18 of NeoStem's
agreement to divest its majority stake in Erye and to focus on its cell
therapy business, its stock price has risen over 50 per cent.
NeoStem
has now received directly or into escrow $6.2 million from the deal,
representing 50 per cent of the total $12.3 million cash purchase price.
The divestiture will also return around 1.0 million shares of its stock
and cancel 1.2 million stock options and 640,000 warrants.
The
cash will be used toward its US operations, and will bolstern its
balance sheet by eliminating more than $35 million in short and
long-term debt obligations. The deal is expected to close in the next 6
to 10 weeks, subject to China regulatory approvals.
The
company's PCT subsidiary in the US acts as a consultant, and cGMP
(current good manufacturing practice) service provider from product
discovery to commercialization for product developers.
In its thirteen year history, the unit has supported over 100 regenerative medicine companies and NeoStem anticipates growth in the United States and abroad by expansion into Europe, it said.
In addition to PCT, NeoStem
also owns an autologous adult stem cell therapy, known as AMR-001,
which is designed to prevent adverse cardiac events following acute
myocardial infarction (AMI), or what is commonly referred to as a heart
attack.
The company is currently conducting its PreSERVE phase 2
clinical trial in the U.S. for the treatment, and anticipates completing
enrolment in 2013, with six months initial data readout near the end of
next year.
Peak annual worldwide sales of AMR-001 for this indication could exceed $1 billion, NeoStem
said Tuesday. The therapy is protected by two issued and multiple
pending U.S. patents with corresponding patent coverage in selected
markets globally.
The Amorcyte AMR-001 product development
program also extends to congestive heart failure, with the company
preparing to launch a phase 1 clinical trial in early 2013. The
worldwide congestive heart failure patient population is estimated to be
four times larger than that of AMI.
Net loss from continuing operations attributable to NeoStem
common shareholders in the latest quarter was $7.2 million, or $0.05
per share, compared to $10.1 million, or $0.13 per share, a year
earlier.
Loss from discontinued operations, including the
company's 51 per cent share of a total $28.0 million asset impairment
charge from Erye, amounted to $13.4 million, or 10 cents per share.
Through warrant exercises and equity sales, NeoStem
has raised $17.6 million year to date. The company closed its Boston
facility and has consolidated these operations into its cellular therapy
operations in Allendale, New Jersey and Mountain View, California in an
effort to save costs
At quarter end, the company had cash and equivalents of $2.1 million and another $2.5 million held in escrow.
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Tuesday, 14 August 2012
UPDATE: Great Panther Silver Q2 revenue up almost 70%
---Adds CEO comments from conference call---
Mexico-focused Great Panther Silver (TSE:GPR) late Monday posted a 69 per cent increase in second-quarter revenues as processed ore increased by 3 per cent sequentially.
"While we are pleased with our revenue growth, gross profit was significantly impacted by lower silver prices and an increase in depreciation charges due to the substantial investments made in our mines, plant and equipment over the last year," Great Panther Silver CEO Robert Archer said.
"Looking ahead, there are a number of positive operational developments that we anticipate will contribute to Great Panther’s growth in production in the second half of 2012."
For the quarter, net income fell to $354,000, or nil per share, from $2.5 million, or 2 cents per share a year earlier.
For the six months ended June 30, net income was $5.04 million, or 4 cents a share, compared to $9.5 million or 8 cents oer share a year earlier.
Overall, Great Panther said that gold production increased 22 per cent to 2,354 ounces from the second quarter of 2011 and Topia silver production reached a record 148,439 ounces, despite lower throughput.
Cash cost per silver ounce decreased by 11 per cent to US$11.42 compared to the second quarter of 2011.
Guanajuato achieved record metallurgical recoveries of 91.1 per cent and 92.3 per cent for silver and gold respectively.
On a conference call, Great Panther's Archer said that metal production was expected to increase in the second half of the year.
In terms of full-year production guidance, Archer expects metals output to be "at the lower end" of the 2.50 million to 2.75 million silver equivalent ounces. Higher grades are expected from Cata although Archer pointed out that it would be difficult to be too specific about grades going forward.
Archer said earnings were impacted by lower silver prices and higher smelter costs during the period.
When asked about possible M&A activity in the silver space, Archer said the company hoped to "make some acquisions in the near term".
During the second quarter, the company experienced a reduction in cash from $40.3 million at March 31, 2012 to $28.7 million at June 30, 2012. The primary factor for the decrease was the timing of payments on concentrate shipments during the second quarter, resulting in an increase of $8.5 million in accounts receivable.
The company's net working capital at June 30, 2012 was $49.9 million compared to $53.5 million at March 31, 2012.
During the second quarter, Great Panther said processed ore increased 3 percent sequentially to 52,956 tonnes and decreased 7 per cent compared to the second quarter of 2011. The decrease reflects additional processing of ore from San Ignacio during the prior period to test metallurgy.
Metal production decreased by 1 per cent to 555,721 silver equivalent ounces (Ag eq oz) compared to the second quarter of 2011 due to drought conditions at Topia which resulted in curtailed production and stockpiling of ore due to water shortages.
The drought at Topia ended in June with the commencement of the rainy season, and the Topia plant has since increased throughput to approximately 220 tonnes per day. Stockpiled ore will be processed in the second half of 2012.
Great Panther is maintaining its guidance for metal production in the range of 2.50 to 2.75 million Ag eq oz for fiscal 2012 as compared to metal production of 2.2 million Ag eq oz for fiscal 2011.
While first-half 2012 metal production of 1,113,388 Ag eq oz shows no increase over first-half 2011 of 1,170,169 Ag eq oz, several operating initiatives and developments have already demonstrated improvements for increased production in the second half of this year.
At Guanajuato, the mine is now operating on a 7-day-week schedule (formerly on a 6-day-week) to allow for increased equipment utilization and production.
The processing plant, which is already achieving record metallurgical recoveries, will be further improved by a new double-deck crushing screen that became operational in June, and a new tertiary crusher scheduled to be operational later in the third quarter of 2012.
Production from Cata, the highest grade area of the mine, is expected to increase.
Development at Valenciana continues on two fronts: haulage access connecting the Cata ore hoisting shaft and the newly discovered, deeper extensions of the Guanajuatito North zone at the 390 metre level is underway; and up-ramp access from the 320 metre level to the 285 metre level of the 18th and 19th century workings of Valenciana is ongoing.
Access to some of the old Valenciana workings has been established and diamond drilling has commenced.
Underground diamond drilling at Guanajuato is ongoing on 50 metre exploration centres at Guanajuatito and Valenciana, while more production-detailed 25 metre centre drilling is ongoing at Santa Margarita, Los Pozos, and Cata.
A total of 6,222 metres was completed in the second quarter of 2012.
Drilling at Guanajuatito is expanding a new discovery approximately 100 metres to the northwest from current workings between the 160 and 200 metre levels. This new zone is open both up and down dip and to the northwest.
Drilling at Santa Margarita continues to improve ore definition of the multiple gold-rich veins and stockworks, hence guiding mine development.
At Topia, the rainy season is well underway and processing capacity increased from 160 to 220 tonnes per day in June. Mined ore has been stockpiled and mining rates are increasing with additional mobile equipment acquired.
Crushing circuit bottlenecks are being eliminated with the installation of a new screen and crusher scheduled in the current quarter
Great Panther is a primary silver mining and exploration company focused on mining precious metals from its two wholly-owned operating mines in Mexico.
It also owns the development stage property San Ignacio, and an exploration stage property, Santa Rosa, which is located approximately 15 kilometres northeast of Guanajuato.
Full details of earnings can be found at: http://www.greatpanther.com
Mexico-focused Great Panther Silver (TSE:GPR) late Monday posted a 69 per cent increase in second-quarter revenues as processed ore increased by 3 per cent sequentially.
"While we are pleased with our revenue growth, gross profit was significantly impacted by lower silver prices and an increase in depreciation charges due to the substantial investments made in our mines, plant and equipment over the last year," Great Panther Silver CEO Robert Archer said.
"Looking ahead, there are a number of positive operational developments that we anticipate will contribute to Great Panther’s growth in production in the second half of 2012."
For the quarter, net income fell to $354,000, or nil per share, from $2.5 million, or 2 cents per share a year earlier.
For the six months ended June 30, net income was $5.04 million, or 4 cents a share, compared to $9.5 million or 8 cents oer share a year earlier.
Overall, Great Panther said that gold production increased 22 per cent to 2,354 ounces from the second quarter of 2011 and Topia silver production reached a record 148,439 ounces, despite lower throughput.
Cash cost per silver ounce decreased by 11 per cent to US$11.42 compared to the second quarter of 2011.
Guanajuato achieved record metallurgical recoveries of 91.1 per cent and 92.3 per cent for silver and gold respectively.
On a conference call, Great Panther's Archer said that metal production was expected to increase in the second half of the year.
In terms of full-year production guidance, Archer expects metals output to be "at the lower end" of the 2.50 million to 2.75 million silver equivalent ounces. Higher grades are expected from Cata although Archer pointed out that it would be difficult to be too specific about grades going forward.
Archer said earnings were impacted by lower silver prices and higher smelter costs during the period.
When asked about possible M&A activity in the silver space, Archer said the company hoped to "make some acquisions in the near term".
During the second quarter, the company experienced a reduction in cash from $40.3 million at March 31, 2012 to $28.7 million at June 30, 2012. The primary factor for the decrease was the timing of payments on concentrate shipments during the second quarter, resulting in an increase of $8.5 million in accounts receivable.
The company's net working capital at June 30, 2012 was $49.9 million compared to $53.5 million at March 31, 2012.
During the second quarter, Great Panther said processed ore increased 3 percent sequentially to 52,956 tonnes and decreased 7 per cent compared to the second quarter of 2011. The decrease reflects additional processing of ore from San Ignacio during the prior period to test metallurgy.
Metal production decreased by 1 per cent to 555,721 silver equivalent ounces (Ag eq oz) compared to the second quarter of 2011 due to drought conditions at Topia which resulted in curtailed production and stockpiling of ore due to water shortages.
The drought at Topia ended in June with the commencement of the rainy season, and the Topia plant has since increased throughput to approximately 220 tonnes per day. Stockpiled ore will be processed in the second half of 2012.
Great Panther is maintaining its guidance for metal production in the range of 2.50 to 2.75 million Ag eq oz for fiscal 2012 as compared to metal production of 2.2 million Ag eq oz for fiscal 2011.
While first-half 2012 metal production of 1,113,388 Ag eq oz shows no increase over first-half 2011 of 1,170,169 Ag eq oz, several operating initiatives and developments have already demonstrated improvements for increased production in the second half of this year.
At Guanajuato, the mine is now operating on a 7-day-week schedule (formerly on a 6-day-week) to allow for increased equipment utilization and production.
The processing plant, which is already achieving record metallurgical recoveries, will be further improved by a new double-deck crushing screen that became operational in June, and a new tertiary crusher scheduled to be operational later in the third quarter of 2012.
Production from Cata, the highest grade area of the mine, is expected to increase.
Development at Valenciana continues on two fronts: haulage access connecting the Cata ore hoisting shaft and the newly discovered, deeper extensions of the Guanajuatito North zone at the 390 metre level is underway; and up-ramp access from the 320 metre level to the 285 metre level of the 18th and 19th century workings of Valenciana is ongoing.
Access to some of the old Valenciana workings has been established and diamond drilling has commenced.
Underground diamond drilling at Guanajuato is ongoing on 50 metre exploration centres at Guanajuatito and Valenciana, while more production-detailed 25 metre centre drilling is ongoing at Santa Margarita, Los Pozos, and Cata.
A total of 6,222 metres was completed in the second quarter of 2012.
Drilling at Guanajuatito is expanding a new discovery approximately 100 metres to the northwest from current workings between the 160 and 200 metre levels. This new zone is open both up and down dip and to the northwest.
Drilling at Santa Margarita continues to improve ore definition of the multiple gold-rich veins and stockworks, hence guiding mine development.
At Topia, the rainy season is well underway and processing capacity increased from 160 to 220 tonnes per day in June. Mined ore has been stockpiled and mining rates are increasing with additional mobile equipment acquired.
Crushing circuit bottlenecks are being eliminated with the installation of a new screen and crusher scheduled in the current quarter
Great Panther is a primary silver mining and exploration company focused on mining precious metals from its two wholly-owned operating mines in Mexico.
It also owns the development stage property San Ignacio, and an exploration stage property, Santa Rosa, which is located approximately 15 kilometres northeast of Guanajuato.
Full details of earnings can be found at: http://www.greatpanther.com
Kilo Goldmines finds new gold-in-soil anomalies 40km west of Adumbi
Kilo Goldmines (CVE:KGL) reported Tuesday that it has found new gold-in-soil anomalies 40 kilometres west of its Adumbi prospect.
The company announced the results of a soil geochemical survey carried out for its Ngazi prospect on PE9692, one of eight exploitation licenses that makes up the Somituri project in the Democratic Republic of Congo.
Kilo said it delineated a series of parallel gold-in-soil anomalies up to 5 kilometres long, some on strike with Loncor Resources' Itali prospect.
From the results, 13 samples returned gold values greater than 100 parts per billion (ppb), the company said, including one value of 526 ppb gold, and one value of 1,110 ppb gold, or 1.11 grams per tonne (g/t).
"These results confirm that the blue sky potential of the Somituri portfolio has real substance and should provide additional upside for the company's growth perspective," said company president and CEO, Alex van Hoeken.
"Our team is steadily progressing its exploration program as per the company's plan and we look forward to advancing these anomalies through infill soil sampling, geological mapping and trenching to refine diamond drill targets.
"We are pleased that we can now talk about the Ngazi prospect rather than just a licence number without data."
Kilo said gold was reported by Loncor Resources in a trench and in a drill hole within 500 metres of the western property boundary along the projected strike of the gold-in-soil anomalies found.
Indeed, Loncor reported 42.0 metres at 2.11 g/t gold in a north south oriented trench and a diamond drill hole intersection of 38.82 metres at 2.66 g/t gold at its Itali prospect in January this year.
Kilo's soil samples were collected from 2,119 sites, plus 30 field duplicates, on PE9692 by company geologists during February and March this year.
PE9692 is situated 40 kilometres to the north-west of the miner's Adumbi gold prospect.
The 2,119 soil samples returned gold values ranging from less than the 1 ppb gold detection limit to 1,110 ppb gold. Of the total, 142, or 6.7 per cent, returned a value of 23 ppb gold or higher.
Kilo is also exploring PE9691, which hosts the Adumbi-Canal gold deposit, with two diamond drill rigs, soil sampling, and geological mapping.
An airborne magnetic and radiometric survey carried out over this exploitation licence in April delineated "a number of linear magnetic anomalies", of which some are coincident with gold-in-soil values, Kilo said.
In addition, reconnaissance soil sampling surveys have been completed over three other Permis d'Exploitation (PE). An additional two PEs are partially covered. During 2012, plans are to complete soil sampling surveys over all of the PEs.
The Somituri project consists of eight PEs, overlying the Ngayu Greenstone Belt, in the Democratic Republic of Congo.
The 2010 and 2011 exploration programs delineated an NI 43-101 compliant inferred resource estimate of 1.87 Mozt, grading 1.63 g/t gold at a cut off of 0.50 g/t gold in the Adumbi prospect.
Historical records show, according to the company, that during the 1940s and until closure in 1958, the combined production from the Adumbi and Bagbaie mines totalled about 0.2 Mozt of gold.
The company announced the results of a soil geochemical survey carried out for its Ngazi prospect on PE9692, one of eight exploitation licenses that makes up the Somituri project in the Democratic Republic of Congo.
Kilo said it delineated a series of parallel gold-in-soil anomalies up to 5 kilometres long, some on strike with Loncor Resources' Itali prospect.
From the results, 13 samples returned gold values greater than 100 parts per billion (ppb), the company said, including one value of 526 ppb gold, and one value of 1,110 ppb gold, or 1.11 grams per tonne (g/t).
"These results confirm that the blue sky potential of the Somituri portfolio has real substance and should provide additional upside for the company's growth perspective," said company president and CEO, Alex van Hoeken.
"Our team is steadily progressing its exploration program as per the company's plan and we look forward to advancing these anomalies through infill soil sampling, geological mapping and trenching to refine diamond drill targets.
"We are pleased that we can now talk about the Ngazi prospect rather than just a licence number without data."
Kilo said gold was reported by Loncor Resources in a trench and in a drill hole within 500 metres of the western property boundary along the projected strike of the gold-in-soil anomalies found.
Indeed, Loncor reported 42.0 metres at 2.11 g/t gold in a north south oriented trench and a diamond drill hole intersection of 38.82 metres at 2.66 g/t gold at its Itali prospect in January this year.
Kilo's soil samples were collected from 2,119 sites, plus 30 field duplicates, on PE9692 by company geologists during February and March this year.
PE9692 is situated 40 kilometres to the north-west of the miner's Adumbi gold prospect.
The 2,119 soil samples returned gold values ranging from less than the 1 ppb gold detection limit to 1,110 ppb gold. Of the total, 142, or 6.7 per cent, returned a value of 23 ppb gold or higher.
Kilo is also exploring PE9691, which hosts the Adumbi-Canal gold deposit, with two diamond drill rigs, soil sampling, and geological mapping.
An airborne magnetic and radiometric survey carried out over this exploitation licence in April delineated "a number of linear magnetic anomalies", of which some are coincident with gold-in-soil values, Kilo said.
In addition, reconnaissance soil sampling surveys have been completed over three other Permis d'Exploitation (PE). An additional two PEs are partially covered. During 2012, plans are to complete soil sampling surveys over all of the PEs.
The Somituri project consists of eight PEs, overlying the Ngayu Greenstone Belt, in the Democratic Republic of Congo.
The 2010 and 2011 exploration programs delineated an NI 43-101 compliant inferred resource estimate of 1.87 Mozt, grading 1.63 g/t gold at a cut off of 0.50 g/t gold in the Adumbi prospect.
Historical records show, according to the company, that during the 1940s and until closure in 1958, the combined production from the Adumbi and Bagbaie mines totalled about 0.2 Mozt of gold.
Timmins Gold reports "strong" second quarter, sales rise 41% on record output
Timmins Gold Corp.(TSE:TMM)(AMEX:TGD)
announced Tuesday results from a "strong quarter", generating revenues
up 41 per cent year-over-year, on top of record gold production.
For the three months that ended June 30, the gold miner, focused solely in Mexico, posted earnings of $6.2 million, or 4 cents per share, compared to $5.7 million, or 4 cents per share, a year ago.
Profit from operations at its San Francisco gold mine in Sonora rose 31 per cent to $13.6 million from $10.4 million in the second quarter of 2011.
Metal revenues were $38.2 million, up from $27.0 million during the same prior year period.
The company produced a record 23,203 ounces of gold and sold 23,499 ounces of gold, compared to 16,676 and 17,965, respectively, a year ago.
Total by-product cash costs were $758 per gold ounce in the quarter, higher than the $533 per ounce in the year-earlier period.
The increase is attributed to 2011 variable compensation of $0.3 million paid ($14 per gold ounce) in the most recent quarter.
Timmins said management began accruing for the 2012 variable compensation, or $4 per gold ounce, in June, which is expected to be negotiated and paid in May 2013.
Average realized prices were also higher in the latest quarter, however, at $1,624 per ounce, versus $1,504 per ounce in the second quarter of 2011.
"Q2 was a strong quarter operationally as demonstrated by increased profit from operations," said the company's CEO, Bruce Bragagnolo.
"During the quarter we began implementing a comprehensive cost reduction program, the results of which should be seen in the upcoming quarters."
Production costs, excluding depletion and depreciation, rose sharply in the quarter to $18.2 million from $9.9 million a year ago as the company's expansion program continues with the installation of a new higher capacity tertiary crusher.
"The installation of a pre-screening system to increase capacity from the San Francisco crushing circuit by between 6,000 to 8,000 tpd is on schedule with over 80% of the equipment on site," said Bragagnolo.
"The company continues to fund all of its operations, expansion and drilling from existing cash flows. The company believes it is well positioned to continue realizing current gold prices, generating strong margins and increased cash flow from operations."
Cash flows from operations, a measure by which to gauge a company's ability to fund future activity, rose to $7.5 million, from $6.0 million a year earlier.
Timmins said a planned 50,000 metre drill program for the San Francisco gold project began in the second quarter, with four reverse circulation rigs and one core rig now on site.
Additionally, a 5,000 metre core drill program at the San Onesimo project in Zacatecas, Mexico, began last month.
The company increased its cash position to $21.2 million at the end of the quarter, investing $2.0 million on drilling and $2.0 million on plant and equipment.
The San Francisco gold mine in Sonora, Mexico is an open pit heap leach operation that has forecast production at a rate in excess of 100,000 ounces of gold per year.
For the three months that ended June 30, the gold miner, focused solely in Mexico, posted earnings of $6.2 million, or 4 cents per share, compared to $5.7 million, or 4 cents per share, a year ago.
Profit from operations at its San Francisco gold mine in Sonora rose 31 per cent to $13.6 million from $10.4 million in the second quarter of 2011.
Metal revenues were $38.2 million, up from $27.0 million during the same prior year period.
The company produced a record 23,203 ounces of gold and sold 23,499 ounces of gold, compared to 16,676 and 17,965, respectively, a year ago.
Total by-product cash costs were $758 per gold ounce in the quarter, higher than the $533 per ounce in the year-earlier period.
The increase is attributed to 2011 variable compensation of $0.3 million paid ($14 per gold ounce) in the most recent quarter.
Timmins said management began accruing for the 2012 variable compensation, or $4 per gold ounce, in June, which is expected to be negotiated and paid in May 2013.
Average realized prices were also higher in the latest quarter, however, at $1,624 per ounce, versus $1,504 per ounce in the second quarter of 2011.
"Q2 was a strong quarter operationally as demonstrated by increased profit from operations," said the company's CEO, Bruce Bragagnolo.
"During the quarter we began implementing a comprehensive cost reduction program, the results of which should be seen in the upcoming quarters."
Production costs, excluding depletion and depreciation, rose sharply in the quarter to $18.2 million from $9.9 million a year ago as the company's expansion program continues with the installation of a new higher capacity tertiary crusher.
"The installation of a pre-screening system to increase capacity from the San Francisco crushing circuit by between 6,000 to 8,000 tpd is on schedule with over 80% of the equipment on site," said Bragagnolo.
"The company continues to fund all of its operations, expansion and drilling from existing cash flows. The company believes it is well positioned to continue realizing current gold prices, generating strong margins and increased cash flow from operations."
Cash flows from operations, a measure by which to gauge a company's ability to fund future activity, rose to $7.5 million, from $6.0 million a year earlier.
Timmins said a planned 50,000 metre drill program for the San Francisco gold project began in the second quarter, with four reverse circulation rigs and one core rig now on site.
Additionally, a 5,000 metre core drill program at the San Onesimo project in Zacatecas, Mexico, began last month.
The company increased its cash position to $21.2 million at the end of the quarter, investing $2.0 million on drilling and $2.0 million on plant and equipment.
The San Francisco gold mine in Sonora, Mexico is an open pit heap leach operation that has forecast production at a rate in excess of 100,000 ounces of gold per year.
Monday, 13 August 2012
Solitario secures $5 mln credit facility with RMB Australia to advance Mt. Hamilton
Solitario Exploration & Royalty
Corp. (AMEX:XPL)(TSE:SLR) has secured a $5 million debt facility from
financial services firm RMB Australia Holdings, the company said Monday.
The proceeds from the secured credit facility will go toward advancing Solitario’s Mt. Hamilton gold project in Nevada, and for general corporate purposes.
“This facility strengthens Solitario‘s financial position to advance the Mt. Hamilton project through permitting to construction,” chief executive Chris Herald said in a statement.
Funds drawn will have bear an interest rate of the current 90-day Libor rate of 0.44 per cent, plus five per cent. The facility has a 36-month term with interest paid quarterly, and has no pre-payment penalty.
Solitario has paid a five per cent upfront fee and issued RMB 1.62 million warrants. Each warrant enables the firm a right to buy one share for an exercise price of US$1.54 each, a 23 per cent premium to the prior close, for a three year period.
The facility was secured by a pledge of Solitario’s 80 per cent stake in the Mt. Hamilton joint venture, and by a general security interest in most of its remaining assets.
In June, exploration-stage company Solitario said Sandstorm Gold bought a 2.4 per cent net smelter return royalty on the Mt. Hamilton project for $10 million.
The Mt. Hamilton gold project is located in Eastern Nevada. In February, Solitario released a feasibility study on the Centennial gold-silver deposit, and demonstrated favourable economics for an open pit operation with heap leach extraction.
The mine, once in operation, is slated to produce 48,000 gold ounces and 330,000 ounces of silver annually for eight years.
In addition, the project has the potential to add resources and extend its mine life. Currently, three drill rigs are operating on the project in the Seligman mineralized area.
Solitario owns an 80 per cent interest in the project and is the project manager. The company is a gold, silver, platinum-palladium and base metal exploration and royalty company actively exploring in Brazil, Mexico and Peru.
The proceeds from the secured credit facility will go toward advancing Solitario’s Mt. Hamilton gold project in Nevada, and for general corporate purposes.
“This facility strengthens Solitario‘s financial position to advance the Mt. Hamilton project through permitting to construction,” chief executive Chris Herald said in a statement.
Funds drawn will have bear an interest rate of the current 90-day Libor rate of 0.44 per cent, plus five per cent. The facility has a 36-month term with interest paid quarterly, and has no pre-payment penalty.
Solitario has paid a five per cent upfront fee and issued RMB 1.62 million warrants. Each warrant enables the firm a right to buy one share for an exercise price of US$1.54 each, a 23 per cent premium to the prior close, for a three year period.
The facility was secured by a pledge of Solitario’s 80 per cent stake in the Mt. Hamilton joint venture, and by a general security interest in most of its remaining assets.
In June, exploration-stage company Solitario said Sandstorm Gold bought a 2.4 per cent net smelter return royalty on the Mt. Hamilton project for $10 million.
The Mt. Hamilton gold project is located in Eastern Nevada. In February, Solitario released a feasibility study on the Centennial gold-silver deposit, and demonstrated favourable economics for an open pit operation with heap leach extraction.
The mine, once in operation, is slated to produce 48,000 gold ounces and 330,000 ounces of silver annually for eight years.
In addition, the project has the potential to add resources and extend its mine life. Currently, three drill rigs are operating on the project in the Seligman mineralized area.
Solitario owns an 80 per cent interest in the project and is the project manager. The company is a gold, silver, platinum-palladium and base metal exploration and royalty company actively exploring in Brazil, Mexico and Peru.
Century Iron Mines completes phase II of drilling at Duncan Lake
Century Iron Mines (TSE:FER) and Augyva Mining Resources (CVE:AUV) Monday announced the final report from Phase II drilling at the Duncan Lake iron ore project in Quebec, Canada.
In total, 176 holes were drilled for 54,306 metres at Duncan Lake.
Amongst the highlights in the most recent assays, drill hole DUN 11-237B intersected 24.64% total Iron (FeT) over 142.9 metres and drill hole DUN 11- 352 intersected 25.55% FeT over 321.25 metres, Century Iron Mines said.
"We are pleased to release the final drill holes in our Phase II drilling program," Century Iron Mines' president & CEO Sandy Chim said.
"An NI 43-101 report updating mineral resource estimate is currently in process by Met-Chem Canada and expected to be completed in the third quarter of 2012. A Preliminary Economic Assessment (PEA) will follow immediately and is targeted to be completed by the end of the year."
Century Iron Mines is Canada's largest holder of iron ore land claims, with interests in several properties in the Provinces of Quebec and Newfoundland and Labrador.
Its mission is to enhance shareholder value through the development of iron ore projects in Canada and to become a major Canadian iron ore producer.
Further details can be found at: http://www.centuryiron.com
In total, 176 holes were drilled for 54,306 metres at Duncan Lake.
Amongst the highlights in the most recent assays, drill hole DUN 11-237B intersected 24.64% total Iron (FeT) over 142.9 metres and drill hole DUN 11- 352 intersected 25.55% FeT over 321.25 metres, Century Iron Mines said.
"We are pleased to release the final drill holes in our Phase II drilling program," Century Iron Mines' president & CEO Sandy Chim said.
"An NI 43-101 report updating mineral resource estimate is currently in process by Met-Chem Canada and expected to be completed in the third quarter of 2012. A Preliminary Economic Assessment (PEA) will follow immediately and is targeted to be completed by the end of the year."
Century Iron Mines is Canada's largest holder of iron ore land claims, with interests in several properties in the Provinces of Quebec and Newfoundland and Labrador.
Its mission is to enhance shareholder value through the development of iron ore projects in Canada and to become a major Canadian iron ore producer.
Further details can be found at: http://www.centuryiron.com
SouthGobi's second quarter impacted by "significant uncertainty"
SouthGobi Resources (TSE:SGQ)(HKSE:1878)
posted a sharply lower second quarter profit Monday as sales volume and
revenue declined due to the curtailment of mining operations amid a
controversial takeover bid for the mining company.
Operations at its Ovoot Tolgoi Mine in Mongolia were "entirely curtailed" at the end of the most recent quarter citing weak market conditions and regulatory issues.
Aluminum Corp of China Ltd., also known as Chalco, plans to buy a 57.6 per cent stake in SouthGobi from Ivanhoe Mines (TSE:IVN), which has triggered anxiety in Mongolia about Chinese ownership of a major resource producer, prompting the passing of a foreign investment law in Mongolia in May.
Mongolia has profited from selling coal, copper and other minerals to China's booming economy, but some in the sparsely populated North Asian nation are uneasy about possible economic domination by their giant neighbour.
Earlier this month, Chalco, the Chinese aluminum giant, said it will extend again its proportional takeover offer for up to 60 per cent of SouthGobi stock by another 30 days. The proposed deal valued at $926 million, or $8.48 per share, has the backing of Ivanhoe, which is SouthGobi’s largest shareholder.
The deal remains subject to all statutory and regulatory approvals, including Canadian and Chinese regulatory approvals, and Chalco shareholder approval.
Sales volume in the latest period declined, the company said, due to the "significant uncertainty" surrounding SouthGobi's business resulting from the proposed proportional takeover bid by Chalco, which resulted in the Mineral Resources Authority of Mongolia announcing a request to suspend exploration and mining activity on certain licenses, various infrastructure constraints in Mongolia, and the softening of inland China coking coal markets toward the end of the second quarter.
For the three months that ended June 30, the Mongolian coal producer recorded a profit of $0.2 million, compared to a net profit of $67.3 million a year ago, and $3.1 million in the first quarter.
In the latest quarter, the company produced 0.27 million tonnes of raw coal with a strip ratio of 4.31 compared to production of 0.87 million tonnes of raw coal a year ago, with a strip ratio of 4.74.
SouthGobi halted its mining activities in the second quarter in a bid to manage coal inventories and to maintain efficient working capital levels. As at quarter end, mining activities had been fully curtailed, and because of this, the miner suspended uncommitted capital and exploration expenditures to preserve financial resources.
The company said it sold 0.16 million tonnes of coal at an average realized selling price of $62.56 per tonne, compared to sales of 1.05 million tonnes of coal at a price of $54.06 per tonne in the second quarter of 2011.
Revenue of $8.4 million was down sharply from $47.3 million a year earlier. The company said customers were reluctant to enter into significant sales contracts due to infrastructure delays, uncertainty with respect to the suspension of mining activities at Ovoot Tolgoi and the continued softening of inland China coking coal markets.
Direct cash costs of product sold, excluding idled mine costs, were $22.57 per tonne compared to $26.77 per tonne a year earlier, as a result of a lower strip ratio and reduced fuel prices.
The company noted today that it has not received any "official notification" to suspend exploration and mining activity and "has no reason to believe SouthGobi's licenses are not in good standing."
But SouthGobi cautioned that any official notification received will require a mandatory suspension of operations and could result in the impairment of the company's property, plant and equipment.
Its total assets at quarter end came in at $846.5 million, and it had $61.6 million in cash and equivalents.
"Although no official notification has been received to date, SouthGobi continues to be impacted by the uncertainty over its licenses. Many government bodies and regulatory authorities in Mongolia are reluctant to provide approvals and permits," the company said in its statement.
Due to the uncertainty, the company said it anticipates its operations will remain fully curtailed in the third quarter and that production volumes, sales volumes and pricing for the full year cannot be estimated.
The Ovoot Tolgoi Mine is approximately 40km from China, which is approximately 190 kilometres closer than Tavan Tolgoi coal producers in Mongolia and 7,000 to 10,000 kilometres closer than Australian and North American coking coal producers.
The company is also approximately 50km from existing railway infrastructure, which is approximately one tenth the distance to rail of Tavan Tolgoi coal producers in Mongolia.
Operations at its Ovoot Tolgoi Mine in Mongolia were "entirely curtailed" at the end of the most recent quarter citing weak market conditions and regulatory issues.
Aluminum Corp of China Ltd., also known as Chalco, plans to buy a 57.6 per cent stake in SouthGobi from Ivanhoe Mines (TSE:IVN), which has triggered anxiety in Mongolia about Chinese ownership of a major resource producer, prompting the passing of a foreign investment law in Mongolia in May.
Mongolia has profited from selling coal, copper and other minerals to China's booming economy, but some in the sparsely populated North Asian nation are uneasy about possible economic domination by their giant neighbour.
Earlier this month, Chalco, the Chinese aluminum giant, said it will extend again its proportional takeover offer for up to 60 per cent of SouthGobi stock by another 30 days. The proposed deal valued at $926 million, or $8.48 per share, has the backing of Ivanhoe, which is SouthGobi’s largest shareholder.
The deal remains subject to all statutory and regulatory approvals, including Canadian and Chinese regulatory approvals, and Chalco shareholder approval.
Sales volume in the latest period declined, the company said, due to the "significant uncertainty" surrounding SouthGobi's business resulting from the proposed proportional takeover bid by Chalco, which resulted in the Mineral Resources Authority of Mongolia announcing a request to suspend exploration and mining activity on certain licenses, various infrastructure constraints in Mongolia, and the softening of inland China coking coal markets toward the end of the second quarter.
For the three months that ended June 30, the Mongolian coal producer recorded a profit of $0.2 million, compared to a net profit of $67.3 million a year ago, and $3.1 million in the first quarter.
In the latest quarter, the company produced 0.27 million tonnes of raw coal with a strip ratio of 4.31 compared to production of 0.87 million tonnes of raw coal a year ago, with a strip ratio of 4.74.
SouthGobi halted its mining activities in the second quarter in a bid to manage coal inventories and to maintain efficient working capital levels. As at quarter end, mining activities had been fully curtailed, and because of this, the miner suspended uncommitted capital and exploration expenditures to preserve financial resources.
The company said it sold 0.16 million tonnes of coal at an average realized selling price of $62.56 per tonne, compared to sales of 1.05 million tonnes of coal at a price of $54.06 per tonne in the second quarter of 2011.
Revenue of $8.4 million was down sharply from $47.3 million a year earlier. The company said customers were reluctant to enter into significant sales contracts due to infrastructure delays, uncertainty with respect to the suspension of mining activities at Ovoot Tolgoi and the continued softening of inland China coking coal markets.
Direct cash costs of product sold, excluding idled mine costs, were $22.57 per tonne compared to $26.77 per tonne a year earlier, as a result of a lower strip ratio and reduced fuel prices.
The company noted today that it has not received any "official notification" to suspend exploration and mining activity and "has no reason to believe SouthGobi's licenses are not in good standing."
But SouthGobi cautioned that any official notification received will require a mandatory suspension of operations and could result in the impairment of the company's property, plant and equipment.
Its total assets at quarter end came in at $846.5 million, and it had $61.6 million in cash and equivalents.
"Although no official notification has been received to date, SouthGobi continues to be impacted by the uncertainty over its licenses. Many government bodies and regulatory authorities in Mongolia are reluctant to provide approvals and permits," the company said in its statement.
Due to the uncertainty, the company said it anticipates its operations will remain fully curtailed in the third quarter and that production volumes, sales volumes and pricing for the full year cannot be estimated.
The Ovoot Tolgoi Mine is approximately 40km from China, which is approximately 190 kilometres closer than Tavan Tolgoi coal producers in Mongolia and 7,000 to 10,000 kilometres closer than Australian and North American coking coal producers.
The company is also approximately 50km from existing railway infrastructure, which is approximately one tenth the distance to rail of Tavan Tolgoi coal producers in Mongolia.
Exeter Resource rated a "Sell" by Mine2Capital with $1.75 price target
Exeter Resource Corp. (TSE:XRC) was the subject of a new research report
from Mine2Capital, which issued a "Sell" recommendation and a $1.75
target price.
Exeter Resource Corp. is a Canadian public company whose focus is to maximize shareholder value through the discovery, evaluation and development of gold projects in the Maricunga district in Chile.
The junior explorer's flagship asset is the 100 per cent-owned Caspiche Project which is a gold-copper porphyry system, an orebody common to many of the world's largest open pit gold-copper mines.
Caspiche is located in the prolific Maricunga mineral belt which is currently undergoing massive expansion and investment in mineral projects from some of the worlds’ largest gold miners.
A January 2012 pre-feasibility study (PFS) showed robust economics and strong leverage to gold prices. The PFS estimates pre-tax NPV of US$2.8 billion at a 5 per cent discount rate, with average cash operating costs of US$606 per gold equivalent ounce (before copper and silver credits) and US$18 per gold equivalent ounce (after copper and silver credits).
Total production over a 19-year mine-life was pegged at 12.98 million ounces of gold, 4 billion pounds of copper and 14.7 million ounces of silver.
In a research note, Mine2Capital's mining analyst Alka Singh outlined that Caspiche was strategically located in the prolific Maricunga Mineral Belt in Chile, the longest standing democracy in the Latin America region.
The proximity to multi-million ounce gold deposits in the Maricunga Belt also creates an opportunity for shared infrastructure. Caspiche is located between Barrick (TSE:ABX)(NYSE:ABX) and Kinross Gold’s (TSE:K)(NYSE:KGC) Cerro Casale gold-copper deposit 10 kilometres to the south and Kinross's Maricunga Mine 15 kilometres to the north.
Andina Minerals' (CVE:ADM) Volcan gold deposit lies 35 kilometres north northeast of Caspiche.
Exeter also has a strong management with expertise in gold-copper exploration with geologists Yale Simpson and Bryce Roxburgh with over 30 years of mining experience.
In terms of risks, the Mine2Capital report highlighted that scarcity of water was an issue in the area. However, Exeter has entered into an option agreement with a private company to purchase water rights for 300 litres per second, located about 150 km to the north of the project.
Also, Barrick made a recent decision to shelve its Cerro Casale project in Chile, which lies 10 km south of Caspiche and hosts a similar-sized deposit and grades.
"We believe the US$4.8 billion estimated capex for Caspiche will also experience cost over-runs," Mine2Capital's Singh said.
Singh also wrote that Exeter has yet to provide a feasibility study, secure financing and construct the mine.
"New mines often face commissioning issues, which need to be addressed."
Exeter will also require additional funds for exploration and development of its flagship project and other exploration-stage assets. As of March 2012, Exeter C$68 million in cash, sufficient for its 2012 planned exploration and other operations.
"However, the company may have to raise additional funds of over US$300 million (for the heap leached oxide-only ore) or over US$5 billion for developing the Caspiche super-pit option," the Mine2Capital analyst said.
Although politically stable, Chile however is not completely geologically stable and lies in a seismically active zone.
As for near-term catalysts, investors can expect to see additional drill results from regional targets, a pre-feasibility study of the heap leach project next year with production at Caspiche in early 2016.
Exeter Resource Corp. is a Canadian public company whose focus is to maximize shareholder value through the discovery, evaluation and development of gold projects in the Maricunga district in Chile.
The junior explorer's flagship asset is the 100 per cent-owned Caspiche Project which is a gold-copper porphyry system, an orebody common to many of the world's largest open pit gold-copper mines.
Caspiche is located in the prolific Maricunga mineral belt which is currently undergoing massive expansion and investment in mineral projects from some of the worlds’ largest gold miners.
A January 2012 pre-feasibility study (PFS) showed robust economics and strong leverage to gold prices. The PFS estimates pre-tax NPV of US$2.8 billion at a 5 per cent discount rate, with average cash operating costs of US$606 per gold equivalent ounce (before copper and silver credits) and US$18 per gold equivalent ounce (after copper and silver credits).
Total production over a 19-year mine-life was pegged at 12.98 million ounces of gold, 4 billion pounds of copper and 14.7 million ounces of silver.
In a research note, Mine2Capital's mining analyst Alka Singh outlined that Caspiche was strategically located in the prolific Maricunga Mineral Belt in Chile, the longest standing democracy in the Latin America region.
The proximity to multi-million ounce gold deposits in the Maricunga Belt also creates an opportunity for shared infrastructure. Caspiche is located between Barrick (TSE:ABX)(NYSE:ABX) and Kinross Gold’s (TSE:K)(NYSE:KGC) Cerro Casale gold-copper deposit 10 kilometres to the south and Kinross's Maricunga Mine 15 kilometres to the north.
Andina Minerals' (CVE:ADM) Volcan gold deposit lies 35 kilometres north northeast of Caspiche.
Exeter also has a strong management with expertise in gold-copper exploration with geologists Yale Simpson and Bryce Roxburgh with over 30 years of mining experience.
In terms of risks, the Mine2Capital report highlighted that scarcity of water was an issue in the area. However, Exeter has entered into an option agreement with a private company to purchase water rights for 300 litres per second, located about 150 km to the north of the project.
Also, Barrick made a recent decision to shelve its Cerro Casale project in Chile, which lies 10 km south of Caspiche and hosts a similar-sized deposit and grades.
"We believe the US$4.8 billion estimated capex for Caspiche will also experience cost over-runs," Mine2Capital's Singh said.
Singh also wrote that Exeter has yet to provide a feasibility study, secure financing and construct the mine.
"New mines often face commissioning issues, which need to be addressed."
Exeter will also require additional funds for exploration and development of its flagship project and other exploration-stage assets. As of March 2012, Exeter C$68 million in cash, sufficient for its 2012 planned exploration and other operations.
"However, the company may have to raise additional funds of over US$300 million (for the heap leached oxide-only ore) or over US$5 billion for developing the Caspiche super-pit option," the Mine2Capital analyst said.
Although politically stable, Chile however is not completely geologically stable and lies in a seismically active zone.
As for near-term catalysts, investors can expect to see additional drill results from regional targets, a pre-feasibility study of the heap leach project next year with production at Caspiche in early 2016.
NanoViricides says oral FluCide candidate effective in animal study
NanoViricides
(OTCBB:NNVC) said today that one of its anti-flu drug candidates under
its FluCide program has proven to be effective in an animal study when
given orally.
The drug showed "very strong efficacy" in combatting H1N1 infection in mice, according to the company, which makes nanoviricide drugs designed to attack enveloped particles in a number of viral diseases and dismantle them.
The company said it received the information about the drug's performance from the contract lab that performed the studies, Kard Scientific.
NanoViricides is awaiting data from the studies, and plans to release more information once data is analyzed.
"We are pleasantly surprised that the modifications that we have been studying for the development of a nanoviricide that can be orally effective have indeed succeeded," said president of the company, Anil R. Diwan, PhD.
"Molecules that nanomedicines are comprised of are notoriously difficult to develop into orally available drugs. This is indeed a coup for our nanomedicine technologies."
NanoViricides has been working on the development of an orally available nanoviricide for several years. The essential chemistries were finally worked out during the chemistry, manufacturing and controls studies for its current Flucide drug candidate.
Further development has now led to a completed definitive animal model study, the company said, to determine whether one of the FluCide anti-flu candidates was effective when administered orally.
Until data are received from the double blind study, the identity of the FluCide drug candidates that were orally active will not be known.
The company said it expects more data from various analyses over the next several weeks.
"We are very excited by the success of this oral administration study and look forward to the data," said chief scientific officer of NanoViricides, Randall W. Barton, adding "an orally available FluCide will have a significant impact on our anti-influenza program."
Indeed, an oral drug to combat the flu will be desirable for treating out-patients, and will complement the company's proposed IV "piggy-back" therapy for the critically ill hospitalized patients, said CEO Eugene Seymour.
"This [oral] administration route enables quick and strong response," he said.
Last month, the company retained Australian Biologics, a regulatory affairs consulting firm, to coordinate the regulatory review and approval for the first human trials in Australia for Flucide.
Drugs are currently being developed by the company against viral diseases such as H1N1 swine flu, H5N1 bird flu, seasonal Influenza, HIV, oral and genital Herpes, and other viral diseases.
The company now has five drug development programs within its pipeline, including FluCide, a drug that works against all forms of influenza such as seasonal and epidemic flus, and HIVCide, a drug that works against the HIV/AIDS virus, which the company says could become a "functional cure" for the disease.
The drug showed "very strong efficacy" in combatting H1N1 infection in mice, according to the company, which makes nanoviricide drugs designed to attack enveloped particles in a number of viral diseases and dismantle them.
The company said it received the information about the drug's performance from the contract lab that performed the studies, Kard Scientific.
NanoViricides is awaiting data from the studies, and plans to release more information once data is analyzed.
"We are pleasantly surprised that the modifications that we have been studying for the development of a nanoviricide that can be orally effective have indeed succeeded," said president of the company, Anil R. Diwan, PhD.
"Molecules that nanomedicines are comprised of are notoriously difficult to develop into orally available drugs. This is indeed a coup for our nanomedicine technologies."
NanoViricides has been working on the development of an orally available nanoviricide for several years. The essential chemistries were finally worked out during the chemistry, manufacturing and controls studies for its current Flucide drug candidate.
Further development has now led to a completed definitive animal model study, the company said, to determine whether one of the FluCide anti-flu candidates was effective when administered orally.
Until data are received from the double blind study, the identity of the FluCide drug candidates that were orally active will not be known.
The company said it expects more data from various analyses over the next several weeks.
"We are very excited by the success of this oral administration study and look forward to the data," said chief scientific officer of NanoViricides, Randall W. Barton, adding "an orally available FluCide will have a significant impact on our anti-influenza program."
Indeed, an oral drug to combat the flu will be desirable for treating out-patients, and will complement the company's proposed IV "piggy-back" therapy for the critically ill hospitalized patients, said CEO Eugene Seymour.
"This [oral] administration route enables quick and strong response," he said.
Last month, the company retained Australian Biologics, a regulatory affairs consulting firm, to coordinate the regulatory review and approval for the first human trials in Australia for Flucide.
Drugs are currently being developed by the company against viral diseases such as H1N1 swine flu, H5N1 bird flu, seasonal Influenza, HIV, oral and genital Herpes, and other viral diseases.
The company now has five drug development programs within its pipeline, including FluCide, a drug that works against all forms of influenza such as seasonal and epidemic flus, and HIVCide, a drug that works against the HIV/AIDS virus, which the company says could become a "functional cure" for the disease.
NanoViricides says oral FluCide candidate effective in animal study
NanoViricides
(OTCBB:NNVC) said today that one of its anti-flu drug candidates under
its FluCide program has proven to be effective in an animal study when
given orally.
The drug showed "very strong efficacy" in combatting H1N1 infection in mice, according to the company, which makes nanoviricide drugs designed to attack enveloped particles in a number of viral diseases and dismantle them.
The company said it received the information about the drug's performance from the contract lab that performed the studies, Kard Scientific.
NanoViricides is awaiting data from the studies, and plans to release more information once data is analyzed.
"We are pleasantly surprised that the modifications that we have been studying for the development of a nanoviricide that can be orally effective have indeed succeeded," said president of the company, Anil R. Diwan, PhD.
"Molecules that nanomedicines are comprised of are notoriously difficult to develop into orally available drugs. This is indeed a coup for our nanomedicine technologies."
NanoViricides has been working on the development of an orally available nanoviricide for several years. The essential chemistries were finally worked out during the chemistry, manufacturing and controls studies for its current Flucide drug candidate.
Further development has now led to a completed definitive animal model study, the company said, to determine whether one of the FluCide anti-flu candidates was effective when administered orally.
Until data are received from the double blind study, the identity of the FluCide drug candidates that were orally active will not be known.
The company said it expects more data from various analyses over the next several weeks.
"We are very excited by the success of this oral administration study and look forward to the data," said chief scientific officer of NanoViricides, Randall W. Barton, adding "an orally available FluCide will have a significant impact on our anti-influenza program."
Indeed, an oral drug to combat the flu will be desirable for treating out-patients, and will complement the company's proposed IV "piggy-back" therapy for the critically ill hospitalized patients, said CEO Eugene Seymour.
"This [oral] administration route enables quick and strong response," he said.
Last month, the company retained Australian Biologics, a regulatory affairs consulting firm, to coordinate the regulatory review and approval for the first human trials in Australia for Flucide.
Drugs are currently being developed by the company against viral diseases such as H1N1 swine flu, H5N1 bird flu, seasonal Influenza, HIV, oral and genital Herpes, and other viral diseases.
The company now has five drug development programs within its pipeline, including FluCide, a drug that works against all forms of influenza such as seasonal and epidemic flus, and HIVCide, a drug that works against the HIV/AIDS virus, which the company says could become a "functional cure" for the disease.
The drug showed "very strong efficacy" in combatting H1N1 infection in mice, according to the company, which makes nanoviricide drugs designed to attack enveloped particles in a number of viral diseases and dismantle them.
The company said it received the information about the drug's performance from the contract lab that performed the studies, Kard Scientific.
NanoViricides is awaiting data from the studies, and plans to release more information once data is analyzed.
"We are pleasantly surprised that the modifications that we have been studying for the development of a nanoviricide that can be orally effective have indeed succeeded," said president of the company, Anil R. Diwan, PhD.
"Molecules that nanomedicines are comprised of are notoriously difficult to develop into orally available drugs. This is indeed a coup for our nanomedicine technologies."
NanoViricides has been working on the development of an orally available nanoviricide for several years. The essential chemistries were finally worked out during the chemistry, manufacturing and controls studies for its current Flucide drug candidate.
Further development has now led to a completed definitive animal model study, the company said, to determine whether one of the FluCide anti-flu candidates was effective when administered orally.
Until data are received from the double blind study, the identity of the FluCide drug candidates that were orally active will not be known.
The company said it expects more data from various analyses over the next several weeks.
"We are very excited by the success of this oral administration study and look forward to the data," said chief scientific officer of NanoViricides, Randall W. Barton, adding "an orally available FluCide will have a significant impact on our anti-influenza program."
Indeed, an oral drug to combat the flu will be desirable for treating out-patients, and will complement the company's proposed IV "piggy-back" therapy for the critically ill hospitalized patients, said CEO Eugene Seymour.
"This [oral] administration route enables quick and strong response," he said.
Last month, the company retained Australian Biologics, a regulatory affairs consulting firm, to coordinate the regulatory review and approval for the first human trials in Australia for Flucide.
Drugs are currently being developed by the company against viral diseases such as H1N1 swine flu, H5N1 bird flu, seasonal Influenza, HIV, oral and genital Herpes, and other viral diseases.
The company now has five drug development programs within its pipeline, including FluCide, a drug that works against all forms of influenza such as seasonal and epidemic flus, and HIVCide, a drug that works against the HIV/AIDS virus, which the company says could become a "functional cure" for the disease.
Implant Sciences announces new sales of explosives detectors to Nigeria
Implant Sciences Corp (OTCQB: IMSC) announced today new sales of its explosives trace detection systems in Nigeria for aviation security.
The supplier of systems and sensors for homeland security and defense markets said the latest shipment is to ASL Airlines Services in Lagos, and the sale was made through A.C. Belgrave, an in-country distributor for Implant Sciences' products.
ASL Airlines Services provides catering and hospitality services to international airlines and airports in Nigeria and will use Implant's QS-H150 explosives trace detectors to execute security search initiatives such as screening food and beverage service carts.
The airline services company caters 700 flight handlings per month for airlines including British Airways, Delta, Lufthansa, Air France and others.
"We are penetrating international markets by working with local distributors like A.C. Belgrave who know their market, have the requisite relationships with decision makers, and are executing on presenting the superiority of our products for designated applications," said Implant's president and CEO, Glenn D. Bolduc.
"We've been anticipating increased demand for our Quantum Sniffers in Nigeria and throughout Africa. This sale affirms we are building traction and we expect this trend to continue."
The company has developed proprietary technologies used in its commercial explosive and narcotics trace detection systems, which ship to a growing number of locations around the world.
Implant's QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation, and the company's other main product QS-B220 benchtop explosives and narcotics trace detector has received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security.
Last week, the Massachusetts-based company announced that an unnamed Head of State in the Middle East has chosen its explosives trace detectors for protection. It sold its Quantum Sniffer QS-H150 handheld explosives trace detectors into the Middle East for VIP protection.
The supplier of systems and sensors for homeland security and defense markets said the latest shipment is to ASL Airlines Services in Lagos, and the sale was made through A.C. Belgrave, an in-country distributor for Implant Sciences' products.
ASL Airlines Services provides catering and hospitality services to international airlines and airports in Nigeria and will use Implant's QS-H150 explosives trace detectors to execute security search initiatives such as screening food and beverage service carts.
The airline services company caters 700 flight handlings per month for airlines including British Airways, Delta, Lufthansa, Air France and others.
"We are penetrating international markets by working with local distributors like A.C. Belgrave who know their market, have the requisite relationships with decision makers, and are executing on presenting the superiority of our products for designated applications," said Implant's president and CEO, Glenn D. Bolduc.
"We've been anticipating increased demand for our Quantum Sniffers in Nigeria and throughout Africa. This sale affirms we are building traction and we expect this trend to continue."
The company has developed proprietary technologies used in its commercial explosive and narcotics trace detection systems, which ship to a growing number of locations around the world.
Implant's QS-H150 portable explosives trace detector has received Qualified Anti-Terrorism Technology Designation, and the company's other main product QS-B220 benchtop explosives and narcotics trace detector has received a Developmental Testing & Evaluation (DT&E) Designation by the U.S. Department of Homeland Security.
Last week, the Massachusetts-based company announced that an unnamed Head of State in the Middle East has chosen its explosives trace detectors for protection. It sold its Quantum Sniffer QS-H150 handheld explosives trace detectors into the Middle East for VIP protection.
Friday, 10 August 2012
Gold Resource Corp says Q2 production up 8% despite "challenging" quarter
*updated with CEO comments from conference call
Gold Resource Corp (NYSE MKT:GORO) said Friday morning that second quarter gold equivalent production grew year-over-year despite lower than targeted mill output and slowed development at its high grade La Arista deposit in Mexico.
The gold producer, which yields gold from its El Aguila operations in the southern state of Oaxaca, Mexico, said gold equivalent production rose 8 per cent over the prior year quarter, to 14,488 ounces.
This number is still less than half of what Gold Resource Corp targeted for the quarter, which prompted the company in July to reduce its full year outlook for production in the range of 100,000 to 120,000 ounces.
This compares to its prior guidance for between 120,000 to 140,000 ounces of gold equivalent.
CEO Bill Reid noted on a conference call this morning that achieving 100,000 ounces of output for the year would still represent a 50 per cent increase over last year's production.
For the three months that ended June 30, the company sold 17,211 ounces of gold equivalent, versus 13,097 ounces a year earlier. Average prices realized on sales during the latest period were higher for gold and lower for silver, at $1,631 per ounce gold and $27 per ounce silver, respectively.
“The second quarter was a challenge as infrastructure requirements slowed the development and stoping of high-grade ore zones at La Arista,” said Gold Resource Corp’s president, Jason Reid, in a statement Friday.
“This resulted in processing diluted development ore and stoping from available lower grade ore zones.
"Even with mill production for the quarter below our target, it is still impressive that we were profitable, we paid $9.5 million in dividends to the owners of the company, and we were still able to put approximately $800,000 in the bank.”
CEO Bill Reid added that the company achieved "a great deal" in the period, which "speaks to the cash-generating power of the La Arista deposit and the El Aguila project."
Indeed, the company said net income totalled $3.6 million, or 7 cents per share, versus $3.1 million, or 6 cents per share, a year earlier.
Net comprehensive income, including a currency translation loss of $1.7 million, totalled $1.9 million, in the most recent period.
The gold producer generated a mine gross profit of $17.2 million, compared with $15.4 million a year ago.
Sales rose to $30 million, up from $20.7 million last year.
Cash costs were significantly higher, however, at $509 per ounce of gold equivalent, versus $303 per ounce in the year ago period. Total expenses and costs rose almost 13 per cent to $9.7 million.
“Our total cash cost per ounce of gold equivalent sold this quarter was high
as a direct result of the lower production," Reid continued.
"Had we achieved our targeted production of 30,000 gold equivalent ounces, we believe total cash costs would have been equal to about half of the $509 per gold equivalent ounce we reported."
Reid said the company believes the higher total cash cost number is "temporary", and will decrease with anticipated higher production in the "current and future quarters".
“We expect increased production from high-grade ore zone blocks between levels 7 through 10 prepared in the second quarter, which we are now actively stoping,” he concluded.
The company milled 59,928 tonnes in the latest quarter, compared to 40,194 tonnes in the second quarter of last year.
Gold Resource Corp, which initiated a physical gold and silver dividend program in April, paid $9.5 million to shareholders in dividends in the most recent period and converted $1.3 million of its treasury into gold and silver.
It also increased its cash position by $0.8 million from the first quarter, to $44.8 million. CEO Reid noted that 33 per cent of the company's cash flow from its mine site operations has been distributed so far this year.
The mining company has a 100 per cent interest in six potential high-grade gold and silver properties in Mexico’s southern state of Oaxaca.
Bill Reid said on the conference call Friday that the production of its El Aguila mine is dependant on the development mine, and that it is problematic to focus solely on quarter-by quarter results when faced with building a business that is longer term.
The La Arista deposit remains open at depth and along strike, and the company remains confident that it will add ounces with continued drilling.
Gold Resource Corp (NYSE MKT:GORO) said Friday morning that second quarter gold equivalent production grew year-over-year despite lower than targeted mill output and slowed development at its high grade La Arista deposit in Mexico.
The gold producer, which yields gold from its El Aguila operations in the southern state of Oaxaca, Mexico, said gold equivalent production rose 8 per cent over the prior year quarter, to 14,488 ounces.
This number is still less than half of what Gold Resource Corp targeted for the quarter, which prompted the company in July to reduce its full year outlook for production in the range of 100,000 to 120,000 ounces.
This compares to its prior guidance for between 120,000 to 140,000 ounces of gold equivalent.
CEO Bill Reid noted on a conference call this morning that achieving 100,000 ounces of output for the year would still represent a 50 per cent increase over last year's production.
For the three months that ended June 30, the company sold 17,211 ounces of gold equivalent, versus 13,097 ounces a year earlier. Average prices realized on sales during the latest period were higher for gold and lower for silver, at $1,631 per ounce gold and $27 per ounce silver, respectively.
“The second quarter was a challenge as infrastructure requirements slowed the development and stoping of high-grade ore zones at La Arista,” said Gold Resource Corp’s president, Jason Reid, in a statement Friday.
“This resulted in processing diluted development ore and stoping from available lower grade ore zones.
"Even with mill production for the quarter below our target, it is still impressive that we were profitable, we paid $9.5 million in dividends to the owners of the company, and we were still able to put approximately $800,000 in the bank.”
CEO Bill Reid added that the company achieved "a great deal" in the period, which "speaks to the cash-generating power of the La Arista deposit and the El Aguila project."
Indeed, the company said net income totalled $3.6 million, or 7 cents per share, versus $3.1 million, or 6 cents per share, a year earlier.
Net comprehensive income, including a currency translation loss of $1.7 million, totalled $1.9 million, in the most recent period.
The gold producer generated a mine gross profit of $17.2 million, compared with $15.4 million a year ago.
Sales rose to $30 million, up from $20.7 million last year.
Cash costs were significantly higher, however, at $509 per ounce of gold equivalent, versus $303 per ounce in the year ago period. Total expenses and costs rose almost 13 per cent to $9.7 million.
“Our total cash cost per ounce of gold equivalent sold this quarter was high
as a direct result of the lower production," Reid continued.
"Had we achieved our targeted production of 30,000 gold equivalent ounces, we believe total cash costs would have been equal to about half of the $509 per gold equivalent ounce we reported."
Reid said the company believes the higher total cash cost number is "temporary", and will decrease with anticipated higher production in the "current and future quarters".
“We expect increased production from high-grade ore zone blocks between levels 7 through 10 prepared in the second quarter, which we are now actively stoping,” he concluded.
The company milled 59,928 tonnes in the latest quarter, compared to 40,194 tonnes in the second quarter of last year.
Gold Resource Corp, which initiated a physical gold and silver dividend program in April, paid $9.5 million to shareholders in dividends in the most recent period and converted $1.3 million of its treasury into gold and silver.
It also increased its cash position by $0.8 million from the first quarter, to $44.8 million. CEO Reid noted that 33 per cent of the company's cash flow from its mine site operations has been distributed so far this year.
The mining company has a 100 per cent interest in six potential high-grade gold and silver properties in Mexico’s southern state of Oaxaca.
Bill Reid said on the conference call Friday that the production of its El Aguila mine is dependant on the development mine, and that it is problematic to focus solely on quarter-by quarter results when faced with building a business that is longer term.
The La Arista deposit remains open at depth and along strike, and the company remains confident that it will add ounces with continued drilling.
Thursday, 9 August 2012
Homestake Resources to start drilling at Homestake Ridge project
Homestake Resource Corp. (CVE:HSR)
said Thursday that it has started drilling at its Homestake Ridge
project, in Northwestern B.C., and adds more claims to its Kinskuch
property.
The Homestake project is located within the Iskut-Stewart-Kitsault Belt 32 kilometres north-northwest of the tidewater communities of Alice Arm and Kitsault, B.C. The project consists of 26 mineral claims containing 151 units and seven crown grants.
The Vancouver-based mineral explorer said core holes will offset high-grade mineralization discovered back in 2011 at the South Reef deposit about 800 metres southwest of its silver deposit.
It said initial holes will offset three other holes from last year’s program that tested a 75 metre strike length of a mineralized trend.
The year-ago program returned 30 plus grams per tonne (g/t) gold at 260 metres. This includes 30.8 g/t gold at 3.1 metres and 3.3 g/t silver in an 8.7 metre interval averaging 11.3 g/t gold and 1.6 g/t silver in drill hole HR11-232.
South Reef is the third largest high grade gold-silver deposit discovered by Homestake. Mineralization is open at depth and along a strike length of 3.4 kilometres.
At the Kinskuch project, the company also announced that it has staked 2,964 hectares of claims in two claim groups, which bolsters the land package to 62,364 hectares.
Claims were added on the northern margin of the property and cover a portion of the headwaters of the White River.
A second group of claims were staked along the southwestern projection of the Homestake and Dolly Varden mineral trends in the western part of the property.
In addition to the staked claims, Homestake Resources closed a second tranche from a private financing it previously announced.
The company sold 10 million units in the non-brokered private placement, and issued 837,500 non flow through shares for proceeds worth $167,500.
The flow-through shares are priced at 20 cents each, and consist of one common share and one warrant. The purchase warrants enable holders to buy an extra share for 30 cents for 36 months.
Proceeds from the offering will go toward general working capital and for corporate purposes.
Homestake Resource Corp., formerly Bravo Gold Corp., is a Canada-based exploration-stage company engaged in the acquisition and exploration of mineral properties.
Shares last traded at 25 cents each on the TSX Venture Exchange on Thursday late afternoon.
The Homestake project is located within the Iskut-Stewart-Kitsault Belt 32 kilometres north-northwest of the tidewater communities of Alice Arm and Kitsault, B.C. The project consists of 26 mineral claims containing 151 units and seven crown grants.
The Vancouver-based mineral explorer said core holes will offset high-grade mineralization discovered back in 2011 at the South Reef deposit about 800 metres southwest of its silver deposit.
It said initial holes will offset three other holes from last year’s program that tested a 75 metre strike length of a mineralized trend.
The year-ago program returned 30 plus grams per tonne (g/t) gold at 260 metres. This includes 30.8 g/t gold at 3.1 metres and 3.3 g/t silver in an 8.7 metre interval averaging 11.3 g/t gold and 1.6 g/t silver in drill hole HR11-232.
South Reef is the third largest high grade gold-silver deposit discovered by Homestake. Mineralization is open at depth and along a strike length of 3.4 kilometres.
At the Kinskuch project, the company also announced that it has staked 2,964 hectares of claims in two claim groups, which bolsters the land package to 62,364 hectares.
Claims were added on the northern margin of the property and cover a portion of the headwaters of the White River.
A second group of claims were staked along the southwestern projection of the Homestake and Dolly Varden mineral trends in the western part of the property.
In addition to the staked claims, Homestake Resources closed a second tranche from a private financing it previously announced.
The company sold 10 million units in the non-brokered private placement, and issued 837,500 non flow through shares for proceeds worth $167,500.
The flow-through shares are priced at 20 cents each, and consist of one common share and one warrant. The purchase warrants enable holders to buy an extra share for 30 cents for 36 months.
Proceeds from the offering will go toward general working capital and for corporate purposes.
Homestake Resource Corp., formerly Bravo Gold Corp., is a Canada-based exploration-stage company engaged in the acquisition and exploration of mineral properties.
Shares last traded at 25 cents each on the TSX Venture Exchange on Thursday late afternoon.
Prophecy Coal halts Ulaan Ovoo operations due to oversupply
Prophecy Coal
Corp. (CVE:PCY) temporarily halted coal mining operations in Mongolia
at its Ulaan Ovoo mine, in a move that will see 80 workers laid off.
The Vancouver-based company, which announced the news on Thursday, said its coal stockpile which is at 187,000 tonnes is sufficient to meet contractual supply obligations for fiscal 2012.
About 80 mining staff has been laid off, while Prophecy has paid out a total of $100,000 in severance costs.
Prophecy said 15 workers will remain on-site for equipment, maintenance, shipping and security during the shutdown.
The company expects the local labour force to remain available for "prompt rehire" when needed, due to little local employment competition.
The shutdown is expected to last six months but could cease sooner, if Prophecy snags new coal sale contracts.
Prophecy Coal said it is using the downtime to work with Mongolian officials to seek road and bridge improvements, and to open the Zeltura border to facilitate Russia export sales.
The overall effect of the suspended operations will be modestly cash flow positive as Ulaan Ovoo operations had not yet achieved break-even levels.
Prophecy Coal is engaged in developing energy projects in Mongolia.
The company’s proposed 600 megawatt power plant next to the Chandgana coal deposit has been permitted by the Mongolian government.
The project will be implemented in two phases. Phase 1 will see two 150 megawatt and transmission lines built next year and completed by 2016. Phase 2 construction will see two 150 megawatts being built in 2014 and finished by 2017.
Since obtaining the license, the company has been in on-going talks with the Mongolian government to finalize power purchase agreements to secure the country’s long-term energy supply.
The Vancouver-based company, which announced the news on Thursday, said its coal stockpile which is at 187,000 tonnes is sufficient to meet contractual supply obligations for fiscal 2012.
About 80 mining staff has been laid off, while Prophecy has paid out a total of $100,000 in severance costs.
Prophecy said 15 workers will remain on-site for equipment, maintenance, shipping and security during the shutdown.
The company expects the local labour force to remain available for "prompt rehire" when needed, due to little local employment competition.
The shutdown is expected to last six months but could cease sooner, if Prophecy snags new coal sale contracts.
Prophecy Coal said it is using the downtime to work with Mongolian officials to seek road and bridge improvements, and to open the Zeltura border to facilitate Russia export sales.
The overall effect of the suspended operations will be modestly cash flow positive as Ulaan Ovoo operations had not yet achieved break-even levels.
Prophecy Coal is engaged in developing energy projects in Mongolia.
The company’s proposed 600 megawatt power plant next to the Chandgana coal deposit has been permitted by the Mongolian government.
The project will be implemented in two phases. Phase 1 will see two 150 megawatt and transmission lines built next year and completed by 2016. Phase 2 construction will see two 150 megawatts being built in 2014 and finished by 2017.
Since obtaining the license, the company has been in on-going talks with the Mongolian government to finalize power purchase agreements to secure the country’s long-term energy supply.
Feronia raises $3 mln in second tranche of financing
Crude palm oil producer Feronia (CVE:FRN) completed another tranche from its previously announced brokered financing, the company said Wednesday.
The additional tranche raised proceeds of $3 million. Together with proceeds from the prior closing of the first tranche Feronia has raised $7.8 million.
Feronia issued two types of securities. It sold 1,684 debenture units priced at $1,000, and 1,667 share purchase warrants.
The debentures have a 12 per cent interest rate per year, which can be paid semi-annually beginning December 31, 2012.
The second security available to purchasers consisted of one common share priced at 10 cents each, it added. Feronia sold 12.7 million shares.
Feronia also paid a cash commission of seven per cent to Macquarie Private Wealth and Renaissance Securities.
All securities issued are subject to a hold period that expires on December 9, 2012. Following the hold period, the company will apply to list the debentures and warrants on the TSX Venture Exchange.
Profits from the offering will go toward working capital and capital expenditure purposes, the company said.
“We are pleased to conclude the second tranche of our financing with participation from both existing shareholders and new investors,” executive chairman Ravi Sood said.
“This financing strengthens our balance sheet and allows management to operate from a strong working capital position,” Sood added.
Feronia is focused on arable farming and oil palm operations in the Democratic Republic of Congo.
Its three plantations span 107,892 hectares, an area larger than Manhattan, San Francisco, Brussels, Amsterdam, Zurich, Paris, Geneva, Lisbon, Dublin and Montevideo combined.
The additional tranche raised proceeds of $3 million. Together with proceeds from the prior closing of the first tranche Feronia has raised $7.8 million.
Feronia issued two types of securities. It sold 1,684 debenture units priced at $1,000, and 1,667 share purchase warrants.
The debentures have a 12 per cent interest rate per year, which can be paid semi-annually beginning December 31, 2012.
The second security available to purchasers consisted of one common share priced at 10 cents each, it added. Feronia sold 12.7 million shares.
Feronia also paid a cash commission of seven per cent to Macquarie Private Wealth and Renaissance Securities.
All securities issued are subject to a hold period that expires on December 9, 2012. Following the hold period, the company will apply to list the debentures and warrants on the TSX Venture Exchange.
Profits from the offering will go toward working capital and capital expenditure purposes, the company said.
“We are pleased to conclude the second tranche of our financing with participation from both existing shareholders and new investors,” executive chairman Ravi Sood said.
“This financing strengthens our balance sheet and allows management to operate from a strong working capital position,” Sood added.
Feronia is focused on arable farming and oil palm operations in the Democratic Republic of Congo.
Its three plantations span 107,892 hectares, an area larger than Manhattan, San Francisco, Brussels, Amsterdam, Zurich, Paris, Geneva, Lisbon, Dublin and Montevideo combined.
Aguila snags drill permit for Angostura gold project
Aguila American Gold (CVE:AGL)
said it received a drill permit by the Ministry of Energy and Mines of
Peru on Wednesday as it seeks to advance its Angostura gold project.
Angostura is located in Southern Peru. It covers 4,869 hectares and has eight key mining concessions, with another four concessions in progress. Target minerals include gold, silver, zinc copper and lead.
The natural resource development company said that it plans to launch a 7,000 metre diamond drill program.
Pre-operation infrastructure is in the final stages, Aguila American Gold said in a statement. It added that a newly built camp will help drilling operations.
Aguila also said it contracted Fugro Ground Geophysics to complete an initial 65.7 line kilometres of induced polarization.
The company said results from the drill campaign and geophysics will help determine resource areas could be accessed from surface or from future underground drill stations.
In addition, the company said Al MacGregor, of More Core Diamond Drilling Services, arrived in Lima, Peru to oversee the drilling contract.
Shares, in afternoon trade, rose 2.5 cents, or 13.89 per cent, climbing to 20.5 cents each on the TSX Venture Exchange.
Angostura is located in Southern Peru. It covers 4,869 hectares and has eight key mining concessions, with another four concessions in progress. Target minerals include gold, silver, zinc copper and lead.
The natural resource development company said that it plans to launch a 7,000 metre diamond drill program.
Pre-operation infrastructure is in the final stages, Aguila American Gold said in a statement. It added that a newly built camp will help drilling operations.
Aguila also said it contracted Fugro Ground Geophysics to complete an initial 65.7 line kilometres of induced polarization.
The company said results from the drill campaign and geophysics will help determine resource areas could be accessed from surface or from future underground drill stations.
In addition, the company said Al MacGregor, of More Core Diamond Drilling Services, arrived in Lima, Peru to oversee the drilling contract.
Shares, in afternoon trade, rose 2.5 cents, or 13.89 per cent, climbing to 20.5 cents each on the TSX Venture Exchange.
Channel Resources advances Tanlouka project with maiden resource
The maiden resource estimate at its core Tanlouka gold project in Burkina Faso demonstrates how Channel Resources (CVE:CHU) is advancing the project as the Canadian junior also looks to unlock the value at its mineral brine project in Alberta.
Tanlouka is a 79 square-kilometre property located an hour east of Ouagadougou, Burkina Faso's capital city. The permit area straddles the Markoye Shear Zone, a crustal scale structure that extends from northern Ghana to northern Burkina Faso.
Tanlouka is located proximal to two other gold deposits at an advanced stage of exploration – Bombore (Orezone Gold) and Kiaka (Volta Resources).
"We have been very pleased with the pace at which the Tanlouka project has been growing. Our team has effectively demonstrated the potential for both near term asset growth and exploration upside," Channel Resources senior vice president Cyrus Ameli tells Proactive Investors.
The NI-43-101 mineral resource estimate revealed that the Mankarga 5 deposit at Tanlouka has indicated mineral resources of 14.1 million tonnes at 0.94 grams per tonne (g/t) gold for 425,000 gold ounces, and inferred mineral resources of 29.1 million tonnes at 0.78 g/t gold for 729,000 gold ounces.
Mankarga 5 deposit extends over a strike length of around two kilometres trending northeast-southwest and remains open along-strike as well as to-depth.
The resource estimate, done by AMEC Americas, was based on 71 core drill holes and 58 reverse circulation drill holes for a total of 22,536 metres drilled since June of 2010. The estimate assumes a gold price of US$1,465 per ounce, and base-case mining costs of US$1.54 per tonne.
As anticipated, the total resource is contained within one open pit with a strip ratio of 2.1:1, Channel Resources said.
Channel is also actively seeking out additional projects to enhance shareholder value.
"What we are seeing at Tanlouka, is a very predictable deposit in terms of structure, one that is very consistent. We see structures that are very amenable to open-pit mining," Ameli says.
"It's characterized by higher-grade intersections and lower-grade halo - from a mining perspective you couldn't ask for more really. There's a lot of upside potential in that deposit."
"We have got enough cash right now to move forward on a number of different activities on Mankarga and elsewhere on the property where we have identified targets for further development."
Ameli also praised the stability and pro-business stance of the African nation.
"I have personally worked in many countries and Burkina Faso has been the best experience I've had. Looking at the growth in Burkina Faso, it's a very inexpensive economical place to mine gold."
The political and legal structure that fosters business development in Burkina Faso has been proven in the number of gold mines that have gone into production in the nation. Burkina Faso's largest deposits include IAMGOLD's (TSE:IMG)(NYSE:IAG) Essakane mine, Orezone Gold's (TSE:ORE) Bombore project, High River Gold's (TSE:HRG) Taparko-Bouroum project and Volta Resources' (TSE:VTR) Kiaka gold project.
Channel Resources' other project is Fox Creek, a mineral brine project comprised of mineral rights over a 369 square kilometre area in central Alberta. The project has the potential to produce a package of industrial mineral products, including salt, potash, calcium, magnesium, boron, bromine, and lithium carbonate as a by-product of natural gas production work in the area.
"It would be very easy to move into a production scenario. We are working through some of the process flow sheets and internal economics to see how feasible it is to push forward on this."
Ameli adds that Fox Creek is "not the core value driver" and Channel Resources "plans to advance it a certain stage where it can start applying valuations to it and looking to somehow allow that project to generate its own standalone profit."
The Channel Resources executive adds that an eventual future sale, spin-off or joint venture has yet to be determined and Ameli anticipates reaching a deal sometime this year.
"We do expect that we can start looking at potential partners in the next few months. There's a lot in terms of the market for that project. We see quite a number of groups are out there looking for an asset of this kind."
Earlier this year, Channel Resources released a maiden NI 43-101 compliant resource estimate for Fox Creek. The resource estimate reports an inferred total in-place brine volume of 4.1 billion cubic metres, from which contained industrial minerals were calculated.
The total in-place resource was calculated at 245 million tonnes for sodium, 18.8 million tonnes for potassium, 54.8 million tonnes calcium, 11.6 million tonnes for magnesium, 694,000 tonnes for boron, 1.33 million tonnes for bromine and 362,000 tonnes for lithium.
At the same time, Channel Resources is also on the hunt for assets to add to its portfolio. Ameli says the company is still in talks to acquire other projects.
"A lot of the ground in Burkina Faso in the greenstone belt has been spoken for, but we have got a number of opportunities that we are looking at that we hope to report on in the near future."
Further details on Channel Resources and its projects can be found at: http://www.channelresources.ca
Tanlouka is a 79 square-kilometre property located an hour east of Ouagadougou, Burkina Faso's capital city. The permit area straddles the Markoye Shear Zone, a crustal scale structure that extends from northern Ghana to northern Burkina Faso.
Tanlouka is located proximal to two other gold deposits at an advanced stage of exploration – Bombore (Orezone Gold) and Kiaka (Volta Resources).
"We have been very pleased with the pace at which the Tanlouka project has been growing. Our team has effectively demonstrated the potential for both near term asset growth and exploration upside," Channel Resources senior vice president Cyrus Ameli tells Proactive Investors.
The NI-43-101 mineral resource estimate revealed that the Mankarga 5 deposit at Tanlouka has indicated mineral resources of 14.1 million tonnes at 0.94 grams per tonne (g/t) gold for 425,000 gold ounces, and inferred mineral resources of 29.1 million tonnes at 0.78 g/t gold for 729,000 gold ounces.
Mankarga 5 deposit extends over a strike length of around two kilometres trending northeast-southwest and remains open along-strike as well as to-depth.
The resource estimate, done by AMEC Americas, was based on 71 core drill holes and 58 reverse circulation drill holes for a total of 22,536 metres drilled since June of 2010. The estimate assumes a gold price of US$1,465 per ounce, and base-case mining costs of US$1.54 per tonne.
As anticipated, the total resource is contained within one open pit with a strip ratio of 2.1:1, Channel Resources said.
Channel is also actively seeking out additional projects to enhance shareholder value.
"What we are seeing at Tanlouka, is a very predictable deposit in terms of structure, one that is very consistent. We see structures that are very amenable to open-pit mining," Ameli says.
"It's characterized by higher-grade intersections and lower-grade halo - from a mining perspective you couldn't ask for more really. There's a lot of upside potential in that deposit."
"We have got enough cash right now to move forward on a number of different activities on Mankarga and elsewhere on the property where we have identified targets for further development."
Ameli also praised the stability and pro-business stance of the African nation.
"I have personally worked in many countries and Burkina Faso has been the best experience I've had. Looking at the growth in Burkina Faso, it's a very inexpensive economical place to mine gold."
The political and legal structure that fosters business development in Burkina Faso has been proven in the number of gold mines that have gone into production in the nation. Burkina Faso's largest deposits include IAMGOLD's (TSE:IMG)(NYSE:IAG) Essakane mine, Orezone Gold's (TSE:ORE) Bombore project, High River Gold's (TSE:HRG) Taparko-Bouroum project and Volta Resources' (TSE:VTR) Kiaka gold project.
Channel Resources' other project is Fox Creek, a mineral brine project comprised of mineral rights over a 369 square kilometre area in central Alberta. The project has the potential to produce a package of industrial mineral products, including salt, potash, calcium, magnesium, boron, bromine, and lithium carbonate as a by-product of natural gas production work in the area.
"It would be very easy to move into a production scenario. We are working through some of the process flow sheets and internal economics to see how feasible it is to push forward on this."
Ameli adds that Fox Creek is "not the core value driver" and Channel Resources "plans to advance it a certain stage where it can start applying valuations to it and looking to somehow allow that project to generate its own standalone profit."
The Channel Resources executive adds that an eventual future sale, spin-off or joint venture has yet to be determined and Ameli anticipates reaching a deal sometime this year.
"We do expect that we can start looking at potential partners in the next few months. There's a lot in terms of the market for that project. We see quite a number of groups are out there looking for an asset of this kind."
Earlier this year, Channel Resources released a maiden NI 43-101 compliant resource estimate for Fox Creek. The resource estimate reports an inferred total in-place brine volume of 4.1 billion cubic metres, from which contained industrial minerals were calculated.
The total in-place resource was calculated at 245 million tonnes for sodium, 18.8 million tonnes for potassium, 54.8 million tonnes calcium, 11.6 million tonnes for magnesium, 694,000 tonnes for boron, 1.33 million tonnes for bromine and 362,000 tonnes for lithium.
At the same time, Channel Resources is also on the hunt for assets to add to its portfolio. Ameli says the company is still in talks to acquire other projects.
"A lot of the ground in Burkina Faso in the greenstone belt has been spoken for, but we have got a number of opportunities that we are looking at that we hope to report on in the near future."
Further details on Channel Resources and its projects can be found at: http://www.channelresources.ca
Silver Bull hits 22% manganese at Ndjole, renews license
Silver Bull Resources (MKT:SVBL)(TSE:SVB) said Wednesday it hit manganese mineralization when it carried out a diamond drill program at Ndjole, Central Africa.
The 2,000 square kilometre Ndjole license was also renewed by the Ministry of Mines for another three years.
A work program, which was completed over two years, included 5,300 metres of diamond drilling, and airborne magnetic surveys, geological mapping and soil sampling which found “significant manganese” soil anomalies over a 50 square kilometre area.
Among the highlights, drill hole NDDD0002 intersected 22% manganese over 34.5 metres from zero metres. This includes 42% over five metres, or 33.7% over nine metres from surface.
The license, until recently, was part of the Ndjole-Mevang joint venture agreement with AngloGold Ashanti (NYSE:AU), where AngloGold spent $5.7 million on exploration to assess the gold potential within the Ndjole area.
That joint venture, however, was deep sixed August 3, and the license has now been returned to Silver Bull.
Drill hole NDDD0001 returned 11% manganese over 17 metres from 33 metres. The aforementioned holes each had recoveries of 70 per cent. The third hole, NDDD0018, intersected 11% manganese over seven metres from 20 metres.
Silver Bull said about 90 per cent of the manganese target identified remains untested with drilling and the soil anomaly open to the south and to the west.
“While the company continues to focus on pushing its flagship silver-zinc Sierra Mojada project in Mexico, we cannot overlook the fact we also have an extremely prospective project in Gabon, the second largest producer of manganese in the world with proven world class manganese deposits,” Silver Bull's chief executive Tim Barry said in a statement.
During the work program, the company also identified three large gold anomalies up to 11 km in length, which was followed up with an exploration drill program.
Drill hole NDDD0017 intersected 7.24 grams per tonne gold over nine metres. This includes 13.2 g/t of gold over 4.9 metres.
It also returned 1.98 g/t gold over 4.5 metres. This includes seven g/t gold over one metre in drill hole NDDD0007.
In addition to gold intercepts, the company also hit silver ranging between five to 85 g/t and up to 85 metres in thickness also occur in weathered saprolites. The source of the silver mineralization has yet to be identified.
The 2,000 square kilometre Ndjole license was also renewed by the Ministry of Mines for another three years.
A work program, which was completed over two years, included 5,300 metres of diamond drilling, and airborne magnetic surveys, geological mapping and soil sampling which found “significant manganese” soil anomalies over a 50 square kilometre area.
Among the highlights, drill hole NDDD0002 intersected 22% manganese over 34.5 metres from zero metres. This includes 42% over five metres, or 33.7% over nine metres from surface.
The license, until recently, was part of the Ndjole-Mevang joint venture agreement with AngloGold Ashanti (NYSE:AU), where AngloGold spent $5.7 million on exploration to assess the gold potential within the Ndjole area.
That joint venture, however, was deep sixed August 3, and the license has now been returned to Silver Bull.
Drill hole NDDD0001 returned 11% manganese over 17 metres from 33 metres. The aforementioned holes each had recoveries of 70 per cent. The third hole, NDDD0018, intersected 11% manganese over seven metres from 20 metres.
Silver Bull said about 90 per cent of the manganese target identified remains untested with drilling and the soil anomaly open to the south and to the west.
“While the company continues to focus on pushing its flagship silver-zinc Sierra Mojada project in Mexico, we cannot overlook the fact we also have an extremely prospective project in Gabon, the second largest producer of manganese in the world with proven world class manganese deposits,” Silver Bull's chief executive Tim Barry said in a statement.
During the work program, the company also identified three large gold anomalies up to 11 km in length, which was followed up with an exploration drill program.
Drill hole NDDD0017 intersected 7.24 grams per tonne gold over nine metres. This includes 13.2 g/t of gold over 4.9 metres.
It also returned 1.98 g/t gold over 4.5 metres. This includes seven g/t gold over one metre in drill hole NDDD0007.
In addition to gold intercepts, the company also hit silver ranging between five to 85 g/t and up to 85 metres in thickness also occur in weathered saprolites. The source of the silver mineralization has yet to be identified.
Kincora Copper intersects gold at Bronze Fox
Kincora Copper (CVE:KCC) disclosed partial assay results from the West Kasulu zone at Bronze Fox as well as Tourmaline Hills in southwest Mongolia.
The Bronze Fox project is located on the copper-gold belt in southeast Mongolia that also hosts the world-class Oyu Tolgoi deposit.
Partial drill core from hole BF62 hit an 180 metre interval with continuous copper mineralization, the company said.
Average copper grade is 0.5% copper and 0.1 gram per tonne (g/t) gold with associated molybdenum mineralization up to 0.33%.
This includes 0.82% copper, 0.14 g/t gold and 0.04% molybdenum across 37 metres, as mineralization begins from surface and remains open at depth.
Kincora said core cutting and sampling is on-going with the hole continuing below 1,000 metres.
The Vancouver-based development-stage resource company said results confirm potential for a deep high grade porphyry copper deposit.
Additional drilling will test the extent of the mineralization and will track the halo east and west which runs for two kilometres, it added.
“These exciting results confirm that higher grade zones exist within this exceptionally large system,” chief executive John Rickus said in a statement.
“For the remainder of the year our team will continue to explore a number of high priority targets to establish the extent of the copper and gold mineralisation on the Bronze Fox properties.”
Meanwhile, partial assays have been returned for Tourmaline Hills, one of the licenses acquired from Forbes and Manhattan through an exchange of shares in April 2012.
Hole F61 intersected just one metre of 2.74 g/t gold between 39 to 40 metres and 5 metres averaging 2.65g/t gold between 60 to 65 metres. This includes 3.45 g/t to 4.70 g/t gold across three metres.
The Bronze Fox project is located on the copper-gold belt in southeast Mongolia that also hosts the world-class Oyu Tolgoi deposit.
Partial drill core from hole BF62 hit an 180 metre interval with continuous copper mineralization, the company said.
Average copper grade is 0.5% copper and 0.1 gram per tonne (g/t) gold with associated molybdenum mineralization up to 0.33%.
This includes 0.82% copper, 0.14 g/t gold and 0.04% molybdenum across 37 metres, as mineralization begins from surface and remains open at depth.
Kincora said core cutting and sampling is on-going with the hole continuing below 1,000 metres.
The Vancouver-based development-stage resource company said results confirm potential for a deep high grade porphyry copper deposit.
Additional drilling will test the extent of the mineralization and will track the halo east and west which runs for two kilometres, it added.
“These exciting results confirm that higher grade zones exist within this exceptionally large system,” chief executive John Rickus said in a statement.
“For the remainder of the year our team will continue to explore a number of high priority targets to establish the extent of the copper and gold mineralisation on the Bronze Fox properties.”
Meanwhile, partial assays have been returned for Tourmaline Hills, one of the licenses acquired from Forbes and Manhattan through an exchange of shares in April 2012.
Hole F61 intersected just one metre of 2.74 g/t gold between 39 to 40 metres and 5 metres averaging 2.65g/t gold between 60 to 65 metres. This includes 3.45 g/t to 4.70 g/t gold across three metres.
Raymond James keeps “outperform” rating on Batero Gold
Batero Gold Corp. (CVE:BAT)
snagged coverage from capital markets firm Raymond James, which has
maintained its “outperform” rating on the junior explorer.
Raymond James has set a target price of $1.45 per share, up from its current trading price of 43 cents per share.
The capital markets company said it sees “significant exploration and development potential” on the Quinchia property.
Batero is a junior gold-copper exploration and development company focused on the 100 per cent owned Quinchia project in Colombia.
It has identified three gold-copper porphyry deposits and released an initial resource estimate for the Quinchia deposit in early 2012.
Raymond James added that it “believes Batero is heading in the right direction” as it focuses on higher grade, lower strip and open pit potential at the La Cumbre deposit.
The capital markets firm also noted that Batero has sufficient funds to carry on with the 2012 and 2013 work program at La Cumbre.
The work program includes 6,000 metres of drilling, metallurgical testing, geotechinical studies as well as environmental studies in a bid to expand existing resources.
The project has an initial resource estimate of 3.5 million ounces of indicated gold and 2.6 million ounces of inferred gold. The open pit resource estimate is based on a 0.16 grams per tonne (g/t) cut off, with 70 per cent of the project remaining unexplored.
Raymond James added that the La Cumbre deposit, with the combination of oxide potential and low strip potential, makes it the most attractive of the three porphyry deposits.
Batero is a Canada-based exploration company focused on the exploration and development of its mineral property interest in Colombia.
Its stock jumped 7.50 per cent touching 43 cents per share on the TSX Venture Exchange Tuesday late afternoon.
Raymond James has set a target price of $1.45 per share, up from its current trading price of 43 cents per share.
The capital markets company said it sees “significant exploration and development potential” on the Quinchia property.
Batero is a junior gold-copper exploration and development company focused on the 100 per cent owned Quinchia project in Colombia.
It has identified three gold-copper porphyry deposits and released an initial resource estimate for the Quinchia deposit in early 2012.
Raymond James added that it “believes Batero is heading in the right direction” as it focuses on higher grade, lower strip and open pit potential at the La Cumbre deposit.
The capital markets firm also noted that Batero has sufficient funds to carry on with the 2012 and 2013 work program at La Cumbre.
The work program includes 6,000 metres of drilling, metallurgical testing, geotechinical studies as well as environmental studies in a bid to expand existing resources.
The project has an initial resource estimate of 3.5 million ounces of indicated gold and 2.6 million ounces of inferred gold. The open pit resource estimate is based on a 0.16 grams per tonne (g/t) cut off, with 70 per cent of the project remaining unexplored.
Raymond James added that the La Cumbre deposit, with the combination of oxide potential and low strip potential, makes it the most attractive of the three porphyry deposits.
Batero is a Canada-based exploration company focused on the exploration and development of its mineral property interest in Colombia.
Its stock jumped 7.50 per cent touching 43 cents per share on the TSX Venture Exchange Tuesday late afternoon.
Tuesday, 7 August 2012
Sacre-Coeur Minerals produced, sold 756.6 troy ounces of gold
Canadian junior miner Sacre-Coeur Minerals (CVE:SCM) has reported Tuesday year to date alluvial gold production figures in the vicinity of Million Mountain, in Guyana.
The news shot its stock up by 22.22 per cent to reach 11 cents each on the TSX Venture Exchange on Tuesday afternoon trade.
The Vancouver-based miner said it produced and sold 756.6 troy ounces of gold from its alluvial mining program for the year to date.
Alluvial gold can be found in soil and sediment deposits. These deposits are usually found around rivers, streams, or any other sort of running water.
Its production reflects the output from 28 calendar weeks of operation, as work did not resume after a year-end shut down until the week of January 22, the company said.
During the 28-week operating period, Sacre-Coeur said mining operations experienced total availability of 62 per cent. This includes set-ups and mechanical interruptions for 121.5 production days.
The company noted alluvial operations continue to improve significantly. For the month of July, it had produced 233.6 troy ounces gold and sold with an operating availability of 64 per cent.
Meanwhile, due to process improvements and a good “pay zone” August production so far has risen to 30 ounces in two days.
Average gold prices were $1,637 per ounces, with an average purity of gold sold at 95.6 per cent. The company has made $1.20 million in sales to date.
All gold produced by the company is sold to the Guyana Gold Board.
Operating costs totalled $497,000, or $656.90 per ounces produced and sold for the 28 week.
“We are very pleased that our alluvial operations have continued to improve over time to now become a significant and reliable contributor of working capital,” the company said in a statement.
“With achievement of demonstrated production and cost performance from the company’s initial single production unit, we can now proceed to pursue our principal goal of near term hard-rock gold production.”
Sacre-Coeur is a junior miner focused on gold properties in Guyana. It holds a 100 per cent stake in 978 square kilometres of mineral concession.
It is now exploring for hard-rock gold resources along the 20 km Million Mountain structural trend that includes the Million Mountain Zone 1, with 451,000 troy ounces of gold.
The news shot its stock up by 22.22 per cent to reach 11 cents each on the TSX Venture Exchange on Tuesday afternoon trade.
The Vancouver-based miner said it produced and sold 756.6 troy ounces of gold from its alluvial mining program for the year to date.
Alluvial gold can be found in soil and sediment deposits. These deposits are usually found around rivers, streams, or any other sort of running water.
Its production reflects the output from 28 calendar weeks of operation, as work did not resume after a year-end shut down until the week of January 22, the company said.
During the 28-week operating period, Sacre-Coeur said mining operations experienced total availability of 62 per cent. This includes set-ups and mechanical interruptions for 121.5 production days.
The company noted alluvial operations continue to improve significantly. For the month of July, it had produced 233.6 troy ounces gold and sold with an operating availability of 64 per cent.
Meanwhile, due to process improvements and a good “pay zone” August production so far has risen to 30 ounces in two days.
Average gold prices were $1,637 per ounces, with an average purity of gold sold at 95.6 per cent. The company has made $1.20 million in sales to date.
All gold produced by the company is sold to the Guyana Gold Board.
Operating costs totalled $497,000, or $656.90 per ounces produced and sold for the 28 week.
“We are very pleased that our alluvial operations have continued to improve over time to now become a significant and reliable contributor of working capital,” the company said in a statement.
“With achievement of demonstrated production and cost performance from the company’s initial single production unit, we can now proceed to pursue our principal goal of near term hard-rock gold production.”
Sacre-Coeur is a junior miner focused on gold properties in Guyana. It holds a 100 per cent stake in 978 square kilometres of mineral concession.
It is now exploring for hard-rock gold resources along the 20 km Million Mountain structural trend that includes the Million Mountain Zone 1, with 451,000 troy ounces of gold.
Eagle Star to raise $750,000 in non-brokered financing
Eagle Star Minerals Corp. (CVE:EGE) plans to raise $750,000 through a non-brokered private placement financing, the company said late Friday.
The exploration-stage company plans to sell 7.5 million units priced at 10 cent per share. Each unit will consist of one share and one full purchase warrant.
Holders of full warrants can purchase an extra share for 20 cents per share for a time frame of about 12 months, following the closing date.
The Vancouver-based company said it will use the proceeds toward developing its Brazilian phosphate projects – Bomfim, Ruth and Samba.
The Bomfim Agro mineral project, located in the new phosphate belt of Brazil, covers 30,922 hectares across four claims with all exploration licenses and permits in place.
Eagle Star has conducted preliminary mapping and sampling work, and also plans to carry-out a scout drilling program of up to 2,600 metres with a 50 metre depth sometime this September.
Meanwhile, the Ruth Agro mineral projects six main concession blocks cover 133,221 hectares across about 76 phosphate bearing mineral claims.
Eagle Star plans to examine the characteristics of this land package to optimize recovery, beneficiation and separation.
Since mineralization occurs at surface it is important to complete this set of tests prior to proving the extent of the package at depth and laterally by way of drilling.
The company, however, is waiting for official licenses for its Samba agro mineral project. Upon receipt, Eagle Star plans to test for possible natural fertilizer material identified across the property during the upcoming planting season.
Eagle Star, over the past two years, has boosted its presence in Brazil and continues to concentrate on maximizing shareholder value by acquiring proven phosphate mineralization assets.
The exploration-stage company plans to sell 7.5 million units priced at 10 cent per share. Each unit will consist of one share and one full purchase warrant.
Holders of full warrants can purchase an extra share for 20 cents per share for a time frame of about 12 months, following the closing date.
The Vancouver-based company said it will use the proceeds toward developing its Brazilian phosphate projects – Bomfim, Ruth and Samba.
The Bomfim Agro mineral project, located in the new phosphate belt of Brazil, covers 30,922 hectares across four claims with all exploration licenses and permits in place.
Eagle Star has conducted preliminary mapping and sampling work, and also plans to carry-out a scout drilling program of up to 2,600 metres with a 50 metre depth sometime this September.
Meanwhile, the Ruth Agro mineral projects six main concession blocks cover 133,221 hectares across about 76 phosphate bearing mineral claims.
Eagle Star plans to examine the characteristics of this land package to optimize recovery, beneficiation and separation.
Since mineralization occurs at surface it is important to complete this set of tests prior to proving the extent of the package at depth and laterally by way of drilling.
The company, however, is waiting for official licenses for its Samba agro mineral project. Upon receipt, Eagle Star plans to test for possible natural fertilizer material identified across the property during the upcoming planting season.
Eagle Star, over the past two years, has boosted its presence in Brazil and continues to concentrate on maximizing shareholder value by acquiring proven phosphate mineralization assets.
WesternZagros inks strategic investment deal with Crest Energy worth $57 mln
WesternZagros Resources (CVE:WZR)
struck a strategic investment deal with Crest Energy that would see the
oil and gas company raise $57 million in a non-brokered financing.
The private placement, which is expected to close on August 10, will see Crest own just under 10 per cent of WesternZagros’ outstanding shares.
The company plans to sell 40.7 million shares priced at $1.40 each. This is a 10 per cent premium to WesternZagros’ closing stock price on August 3.
As a result, the Abu Dhabi National Energy Co, or Taqa, has the right to buy 10.14 million extra shares priced at $1.40 to keep its ownership interest of 19.9 per cent.
The Calgary, Alberta-based company also received $83 million from Russian oil and gas giant Gazprom Neft B.V. in back costs from the Garmian production sharing contract.
WesternZagros is the operator of the Garmian block, which contains the producing Sarqala-1 oil well, the Mil Qasim discovery and several undrilled exploration prospects.
The production sharing contract will see the Kurdistan Regional Government receive about $27 million in reconciliation, while WesternZagross retains $56 million.
The private placement, which is expected to close on August 10, will see Crest own just under 10 per cent of WesternZagros’ outstanding shares.
The company plans to sell 40.7 million shares priced at $1.40 each. This is a 10 per cent premium to WesternZagros’ closing stock price on August 3.
As a result, the Abu Dhabi National Energy Co, or Taqa, has the right to buy 10.14 million extra shares priced at $1.40 to keep its ownership interest of 19.9 per cent.
The Calgary, Alberta-based company also received $83 million from Russian oil and gas giant Gazprom Neft B.V. in back costs from the Garmian production sharing contract.
WesternZagros is the operator of the Garmian block, which contains the producing Sarqala-1 oil well, the Mil Qasim discovery and several undrilled exploration prospects.
The production sharing contract will see the Kurdistan Regional Government receive about $27 million in reconciliation, while WesternZagross retains $56 million.
Montero Mining begins two Wigu Hill studies, prospecting license extended
Rare earth explorer Montero Mining and Exploration Ltd. (CVE:MON) said Tuesday it has started two pivotal environmental studies at Wigu Hill, East Africa.
The two reports, an environmental impact assessment, as well as an environmental and social impact assessment, are key to getting an environmental permit.
Montero also said it acquired a two year extension to its prospecting license by the Commissioner for minerals in Tanzania. The extension expires on June 30, 2014.
"The commencement of the EIA and ESIA are instrumental in developing a mining operation at Wigu Hill," Montero's chief executive Tony Harwood said in a statement.
"The results and submission of the EIA and ESIA will be required for the application of a mining license and contribute to the feasibility study."
Montero said it remains focused on de-risking the Wigu Hill project and targeting early production of rare earths.
It hired Tanzanian-based MTL Consulting Co. to carry out the studies, while the National Environment Management Council has approved a scoping study.
The company plans to submit the two studies by month’s end, and expects an environmental impact assessment certificate in October 2012.
Montero’s Wigu Hill project is a light rare earth element deposit and a large carbonite complex with bastnaesite mineralization. The project is located in Tanzania.
It covers a 142 square kilometre area. Grab samples have yielded results as high as 27.57% total rare earth oxides (TREO).
An initial 43-101 inferred resource estimate stands at 3.3 million tonnes at 2.6% light rare earth oxide (LREO). This includes 510,000 at 4.4% LREO on two of 10 possible drill targets.
Montero’s stock traded flat at 15 cents each on the TSX Venture Exchange on Tuesday.
The two reports, an environmental impact assessment, as well as an environmental and social impact assessment, are key to getting an environmental permit.
Montero also said it acquired a two year extension to its prospecting license by the Commissioner for minerals in Tanzania. The extension expires on June 30, 2014.
"The commencement of the EIA and ESIA are instrumental in developing a mining operation at Wigu Hill," Montero's chief executive Tony Harwood said in a statement.
"The results and submission of the EIA and ESIA will be required for the application of a mining license and contribute to the feasibility study."
Montero said it remains focused on de-risking the Wigu Hill project and targeting early production of rare earths.
It hired Tanzanian-based MTL Consulting Co. to carry out the studies, while the National Environment Management Council has approved a scoping study.
The company plans to submit the two studies by month’s end, and expects an environmental impact assessment certificate in October 2012.
Montero’s Wigu Hill project is a light rare earth element deposit and a large carbonite complex with bastnaesite mineralization. The project is located in Tanzania.
It covers a 142 square kilometre area. Grab samples have yielded results as high as 27.57% total rare earth oxides (TREO).
An initial 43-101 inferred resource estimate stands at 3.3 million tonnes at 2.6% light rare earth oxide (LREO). This includes 510,000 at 4.4% LREO on two of 10 possible drill targets.
Montero’s stock traded flat at 15 cents each on the TSX Venture Exchange on Tuesday.
Snipp to raise $1.1 mln in non-brokered financing
Mobile marketing firm Snipp Interactive (CVE:SPN) Tuesday has reported a non-brokered financing worth $1.1 million.
Each unit will consist of one unsecured convertible debenture with a par value of $1,000 and 5,000 warrants. The minimum subscription amount is $100,000.
The warrants are exercisable into common shares priced at 20 cents each. It also said the warrants expiry can be expedited if the trading price is greater than 50 cents for 20 consecutive trading days.
All securities issued are subject to a four month hold period. The debentures mature five years from closing, and bear an annual interest rate of 15 per cent.
Snipp will also pay a cash finders’ fee amounting to 10 per cent of the gross proceeds.
Profits from the offering will go toward general working capital purposes, including asset acquisition investigations. Closing of the offering remains subject to stock exchange approval.
Separately, the mobile marketing company also announced last Friday its chairman and founder Atul Sabharwal will replace Erik Hallstrom as chief executive.
Hallstrom, who will continue with Snipp in an advisory role, stepped down to pursue another opportunity. Meanwhile, director Ritesh Bhavnani will take over as chairman of the board.
Shares, in late morning trade Tuesday, fell 14.29 per cent falling to 18 cents each on the TSX Venture Exchange.
Each unit will consist of one unsecured convertible debenture with a par value of $1,000 and 5,000 warrants. The minimum subscription amount is $100,000.
The warrants are exercisable into common shares priced at 20 cents each. It also said the warrants expiry can be expedited if the trading price is greater than 50 cents for 20 consecutive trading days.
All securities issued are subject to a four month hold period. The debentures mature five years from closing, and bear an annual interest rate of 15 per cent.
Snipp will also pay a cash finders’ fee amounting to 10 per cent of the gross proceeds.
Profits from the offering will go toward general working capital purposes, including asset acquisition investigations. Closing of the offering remains subject to stock exchange approval.
Separately, the mobile marketing company also announced last Friday its chairman and founder Atul Sabharwal will replace Erik Hallstrom as chief executive.
Hallstrom, who will continue with Snipp in an advisory role, stepped down to pursue another opportunity. Meanwhile, director Ritesh Bhavnani will take over as chairman of the board.
Shares, in late morning trade Tuesday, fell 14.29 per cent falling to 18 cents each on the TSX Venture Exchange.
Prophecy Platinum announces a slew of promotions
Prophecy Platinum Corp. (CVE:NKL) has appointed a new board director and beefed-up management with a slew of promotions, the company said Tuesday.
Wesley J. Hall, who brings nearly 20 years worth of experience in corporate governance and shareholder communications, was promoted to the board of director.
Hall, also a chairman of Difference Capital Funding, was a founding board member and longest serving president of the Canadian Society of Corporate Secretaries.
The second promotion will see Neil Froc as project manager. Froc has a geological engineering degree from the University of Saskatchewan and brings over 25 years worth of experience.
Since 1980, Froc has been involved in numerous stages of precious metals, base metals and industrial mineral exploration.
Besides resource estimation and project resource development, Froc has significant proven expertise relating to socio-economic project development and First Nations engagement.
Meanwhile, Shawn Rodeck has also been promoted to the position of manager of legal affairs. With 13 plus years of international experience in the mineral exploration sector, Rodeck has consulted and also held senior management positions.
Before joining Prophecy, Rodeck was the director of corporate and legal affairs for the Minco Group of Companies.
Prophecy Platinum also announced on Tuesday Donald Gee resigned from his post as board of director. Patrick Langlois, too, resigned as vice president of corporate development.
Shares, in late morning trade, slipped to $1.15 apiece on the TSX Venture Exchange.
Wesley J. Hall, who brings nearly 20 years worth of experience in corporate governance and shareholder communications, was promoted to the board of director.
Hall, also a chairman of Difference Capital Funding, was a founding board member and longest serving president of the Canadian Society of Corporate Secretaries.
The second promotion will see Neil Froc as project manager. Froc has a geological engineering degree from the University of Saskatchewan and brings over 25 years worth of experience.
Since 1980, Froc has been involved in numerous stages of precious metals, base metals and industrial mineral exploration.
Besides resource estimation and project resource development, Froc has significant proven expertise relating to socio-economic project development and First Nations engagement.
Meanwhile, Shawn Rodeck has also been promoted to the position of manager of legal affairs. With 13 plus years of international experience in the mineral exploration sector, Rodeck has consulted and also held senior management positions.
Before joining Prophecy, Rodeck was the director of corporate and legal affairs for the Minco Group of Companies.
Prophecy Platinum also announced on Tuesday Donald Gee resigned from his post as board of director. Patrick Langlois, too, resigned as vice president of corporate development.
Shares, in late morning trade, slipped to $1.15 apiece on the TSX Venture Exchange.
Prophecy Coal debuts power division to focus on power sector in Mongolia
Prophecy Coal Corp. (CVE:PCY) Tuesday unveiled its power division named Prophecy Power, a unit to focus on the power sector in Mongolia.
Prophecy Power, formerly known as East Energy Corp., was incorporated in 2010 to supply power to Mongolia all the way through the construction of the Chandgana thermal power plant.
Prophecy Coal’s Chandgana will similarly develop the Chandgana coal project to secure fuel supply to Prophecy Power, it said. The proposed 600 megawatt power plant will be built next to Prophecy Coal’s Chandgana coal deposit located in Central Mongolia.
The project will be implemented in two phases. Phase 1 will see two 150 megawatt and transmission lines built next year and completed by 2016. Phase 2 construction will see two 150 megawatts being built in 2014 and finished by 2017.
The unit acquired approval of its environmental impact assessment from the Ministry of Nature and Tourism in November 2010.
One year later, the Ministry of Natural Resources granted a construction license for the power plant.
Since obtaining the license, the company has been in on-going talks with the Mongolian government to finalize power purchase agreements to secure the country’s long-term energy supply.
Meanwhile, Prophecy Power has been in talks with several private Mongolian companies regarding bi-lateral power purchase contracts.
The proposed mining projects – which include copper, molybdenum and iron ore, will collectively need 200 megawatts of power by 2016, excluding the Oyu Tolgoi project.
Its remaining power supply from the Chandgana power plant is expected to help meet energy demand created by on-going expansion of Eastern and Northern Mongolia, and replace Russian power imports.
Chandgana, another unit of Prophecy Coal, will supply three million tonnes of coal a year to Prophecy Power for 25 years.
In the measured and indicated categories, Chandgana controls over 1.4 billion tonnes of thermal coal including a starter pit with 140 million tonnes of measured resource.
Upon the acquisition of the Tethys Mining claims with a historic resource estimate of 2.3 billion tonnes, Chandgana will control one of largest coal basins in the world, with ample supply for a power plant of 4,200 megawatts or bigger.
Prophecy paid $10 million upfront and an 8.5 per cent royalty on future coal sales from both Chandgana and Tugalgatai licenses. The deal is slated to close in the third quarter.
Prophecy Power, formerly known as East Energy Corp., was incorporated in 2010 to supply power to Mongolia all the way through the construction of the Chandgana thermal power plant.
Prophecy Coal’s Chandgana will similarly develop the Chandgana coal project to secure fuel supply to Prophecy Power, it said. The proposed 600 megawatt power plant will be built next to Prophecy Coal’s Chandgana coal deposit located in Central Mongolia.
The project will be implemented in two phases. Phase 1 will see two 150 megawatt and transmission lines built next year and completed by 2016. Phase 2 construction will see two 150 megawatts being built in 2014 and finished by 2017.
The unit acquired approval of its environmental impact assessment from the Ministry of Nature and Tourism in November 2010.
One year later, the Ministry of Natural Resources granted a construction license for the power plant.
Since obtaining the license, the company has been in on-going talks with the Mongolian government to finalize power purchase agreements to secure the country’s long-term energy supply.
Meanwhile, Prophecy Power has been in talks with several private Mongolian companies regarding bi-lateral power purchase contracts.
The proposed mining projects – which include copper, molybdenum and iron ore, will collectively need 200 megawatts of power by 2016, excluding the Oyu Tolgoi project.
Its remaining power supply from the Chandgana power plant is expected to help meet energy demand created by on-going expansion of Eastern and Northern Mongolia, and replace Russian power imports.
Chandgana, another unit of Prophecy Coal, will supply three million tonnes of coal a year to Prophecy Power for 25 years.
In the measured and indicated categories, Chandgana controls over 1.4 billion tonnes of thermal coal including a starter pit with 140 million tonnes of measured resource.
Upon the acquisition of the Tethys Mining claims with a historic resource estimate of 2.3 billion tonnes, Chandgana will control one of largest coal basins in the world, with ample supply for a power plant of 4,200 megawatts or bigger.
Prophecy paid $10 million upfront and an 8.5 per cent royalty on future coal sales from both Chandgana and Tugalgatai licenses. The deal is slated to close in the third quarter.
Thursday, 2 August 2012
Eagle Star receives “excellent” solubility, recovery results at Canabrava block
Eagle Star Minerals Corp. (CVE:EGE) has received “excellent” solubility and heavy fraction recovery results from its Canabrava mining block, in Brazil.
Shares, in early afternoon trade, jumped 15.79 per cent, climbing to 11 cents each on the TSX Venture Exchange.
The mining concession, which rests at the Ruth Agro mineral project, encompasses 40,678 hectares across 23 mineral claims.
The tests, aimed at defining chemical composition and solubility of mineral phases, were performed using three chip samples from rock types that compose the mineralized package.
Solubility tests in both hydrochloric and citric acids confirmed fluor-apatite is the main phosphorous bearing mineral with solubility of phosphorus and calcium ranging from 87 to 96 per cent.
Results also indicated fluor-apatite represents more than 10 per cent of mineralogy, and calcinations tests excluded the presence of any secondary phosphates.
The recovery of fluor-apatite concentrate test also returned values between 76 and 83 per cent, the company said.
“The combination of mineralogical, solubility and recovery studies with the good and consistent grades along the potential area outlined indicates that Canabrava is a very attractive business opportunity that adds considerable value to our portfolio,” Eagle Star's chief operating officer Jose Campos said in a statement.
Eagle Star, a publically traded company, focuses on the exploration and development of agro mineral properties in Brazil.
Over the last two years, the company has strategically grown its presence in Brazil and continues to focus on boosting shareholder value by acquiring assets in geological areas known for phosphate mineralization.
Shares, in early afternoon trade, jumped 15.79 per cent, climbing to 11 cents each on the TSX Venture Exchange.
The mining concession, which rests at the Ruth Agro mineral project, encompasses 40,678 hectares across 23 mineral claims.
The tests, aimed at defining chemical composition and solubility of mineral phases, were performed using three chip samples from rock types that compose the mineralized package.
Solubility tests in both hydrochloric and citric acids confirmed fluor-apatite is the main phosphorous bearing mineral with solubility of phosphorus and calcium ranging from 87 to 96 per cent.
Results also indicated fluor-apatite represents more than 10 per cent of mineralogy, and calcinations tests excluded the presence of any secondary phosphates.
The recovery of fluor-apatite concentrate test also returned values between 76 and 83 per cent, the company said.
“The combination of mineralogical, solubility and recovery studies with the good and consistent grades along the potential area outlined indicates that Canabrava is a very attractive business opportunity that adds considerable value to our portfolio,” Eagle Star's chief operating officer Jose Campos said in a statement.
Eagle Star, a publically traded company, focuses on the exploration and development of agro mineral properties in Brazil.
Over the last two years, the company has strategically grown its presence in Brazil and continues to focus on boosting shareholder value by acquiring assets in geological areas known for phosphate mineralization.
African Queen Mines finds visible gold, several drill targets
African Queen Mines Ltd. (CVE:AQ)
said Thursday it has identified many drill targets and encountered
visible gold near surface at its Kenyan Ugunja gold project.
The Phase 1b exploration program also found a structure with potential to host commercial deposits, African Queen said in a statement.
“We are delighted that preliminary exploration results from both our Ugunja and Odundu projects in Western Kenya are generating positive results with identification of highly prospective drill targets,” African Queen's chief executive Irwin Olian said.
“Kenya is becoming an increasingly important focus of African Queen's exploration activities and we look forward to much success in Kenya in the future.”
The Ugunja project covers 370 square kilometres in the Lakeland district north of the shores of Lake Victoria in Western Kenya.
Work at the project has included rock sampling, trenching, mapping and ground geophysics surveys. African Queen noted visible gold has been identified in many samples of quartz vein.
This vein, which reaches 80 centimetres in width, occurs along a structure that can be traced for 240 metres.
The miner completed four trenches totalling 71 metres, while 99 samples were collected from the site and are being prepared by Kenya Mineral Services, and shipped to Australia for gold analysis.
During the prospecting campaign, about 20 gold mining work sites were located and a number of black quartz was found at these sites.
It plans to perform further trenching on several of these locations.
Separately, the gold miner also finished 13 square km ground magnetic surveys over the Ligega area, and has located potential gold-bearing structures.
Under a joint venture agreement with Kenyan-based Abba Mining Company, African Queen can earn up to an 85 percent interest in the project by funding prescribed optional stages from exploration through feasibility.
The company is also the manager and operator of the property.
Vancouver-based African Queen is exploring its properties in Mozambique, Ghana and Kenya for gold and other metals and it is undertaking exploration in Botswana and Namibia for diamonds, gold and other metals.
The Phase 1b exploration program also found a structure with potential to host commercial deposits, African Queen said in a statement.
“We are delighted that preliminary exploration results from both our Ugunja and Odundu projects in Western Kenya are generating positive results with identification of highly prospective drill targets,” African Queen's chief executive Irwin Olian said.
“Kenya is becoming an increasingly important focus of African Queen's exploration activities and we look forward to much success in Kenya in the future.”
The Ugunja project covers 370 square kilometres in the Lakeland district north of the shores of Lake Victoria in Western Kenya.
Work at the project has included rock sampling, trenching, mapping and ground geophysics surveys. African Queen noted visible gold has been identified in many samples of quartz vein.
This vein, which reaches 80 centimetres in width, occurs along a structure that can be traced for 240 metres.
The miner completed four trenches totalling 71 metres, while 99 samples were collected from the site and are being prepared by Kenya Mineral Services, and shipped to Australia for gold analysis.
During the prospecting campaign, about 20 gold mining work sites were located and a number of black quartz was found at these sites.
It plans to perform further trenching on several of these locations.
Separately, the gold miner also finished 13 square km ground magnetic surveys over the Ligega area, and has located potential gold-bearing structures.
Under a joint venture agreement with Kenyan-based Abba Mining Company, African Queen can earn up to an 85 percent interest in the project by funding prescribed optional stages from exploration through feasibility.
The company is also the manager and operator of the property.
Vancouver-based African Queen is exploring its properties in Mozambique, Ghana and Kenya for gold and other metals and it is undertaking exploration in Botswana and Namibia for diamonds, gold and other metals.
SouthGobi says Ivanhoe mines, Chalco extend takeover bid 30 days
SouthGobi Resources (TSE:SGQ) Thursday reported Ivanhoe Mines
(TSE:IVN) and Aluminum Corp of China Ltd., also known as Chalco, both
agreed to extend their friendly takeover bid of the Mongolian coal
producer.
Chalco, the Chinese aluminum giant, will extend the time for it to make a proportional takeover offer for up to 60 per cent of SouthGobi stock by another 30 days.
This is the second time Chalco has extended its takeover bid. Chalco will now make a takeover bid on September 4, instead of August 3.
The proposed deal valued at $926 million, or $8.48 per share, also has the backing of Ivanhoe Mines, which is SouthGobi’s largest shareholder.
Ivanhoe has entered into a lock-up agreement with Chalco and has agreed to tender all SouthGobi shares to Chalco.
Mongolia has profited from selling coal, copper and other minerals to China's booming economy but some in the thinly populated North Asian nation are uneasy about possible economic domination by their giant neighbour.
Chalco's plan to buy a 60 per cent stake in SouthGobi from Ivanhoe triggered anxiety in Mongolia about Chinese ownership of a major resource producer.
The deal remains subject to all statutory and regulatory approvals, including Canadian and Chinese regulatory approvals, and Chalco shareholder approval.
Chalco, the Chinese aluminum giant, will extend the time for it to make a proportional takeover offer for up to 60 per cent of SouthGobi stock by another 30 days.
This is the second time Chalco has extended its takeover bid. Chalco will now make a takeover bid on September 4, instead of August 3.
The proposed deal valued at $926 million, or $8.48 per share, also has the backing of Ivanhoe Mines, which is SouthGobi’s largest shareholder.
Ivanhoe has entered into a lock-up agreement with Chalco and has agreed to tender all SouthGobi shares to Chalco.
Mongolia has profited from selling coal, copper and other minerals to China's booming economy but some in the thinly populated North Asian nation are uneasy about possible economic domination by their giant neighbour.
Chalco's plan to buy a 60 per cent stake in SouthGobi from Ivanhoe triggered anxiety in Mongolia about Chinese ownership of a major resource producer.
The deal remains subject to all statutory and regulatory approvals, including Canadian and Chinese regulatory approvals, and Chalco shareholder approval.
Copper Fox extends mineralization, buys more claims at Schaft Creek
Copper Fox (CVE:CUU) has extended mineralization at the Discovery Zone, and acquired more land at Schaft Creek, in British Columbia.
The Calgary, Alberta-based company said two diamond drill holes tested the 1,800 metre long by 900 metre wide chargeability anomaly known as the Discovery Zone.
Diamond drill hole 2012CF426 intersected variable concentrations of visible chalcopyrite, a copper iron sulphide mineral, over 90 per cent of the core length at the Discovery Zone.
Drill hole 2012CF427, located 400 metres northwest of hole 2012CF426, tested the strike extension of the chargeability anomaly at Discovery Zone.
This hole hit variable concentrations of chalcopyrite and sporadic molybenite mineralization from an interval of 250 metres to 769 metres.
The chalcopyrite-molybdenite mineralization occurs as disseminations, veins and veinlets, which exhibit a number of thin basic dikes. This hole contains large intervals of silicification.
“I am pleased with the results of the first two holes completed in the Discovery Zone,” Copper Fox chief executive Elmer Stewart said in a statement.
“The mineralization in the drill core combined with the results of the Aster study and field mapping support the existence of additional zones of copper-molybdenite mineralization to the north along the previously identified Schaft Creek mineral trend.”
Copper Fox said assay results will be released shortly.
Meantime, drill holes 2012CF429 and 2012CF429B were terminated due to extremely difficult ground conditions at the Mike Zone. These drill holes were meant to test strong chargeability anomalies that define the Mike Zone, Copper Fox said.
Both drill holes reached a depth of 140 metres before being nixed.
Separately, Copper Fox also purchased nine mineral claims totalling 2,936 hectares from Randy Marko and Paul Mott.
These claims, which Copper Fox paid $10,000 plus a two per cent net smelter return royalty, are next to the company’s Schaft Creek project.
According to the deal, the company can also purchase half of the net smelter royalty for $1 million cash reducing the royalty fee down to one per cent.
The Schaft Creek project rests 45 kilometres west of the Stewart-Cassiar Highway and approximately 80 km south of Telegraph Creek in north western British Columbia.
The Schaft Creek is a giant porphyry copper-gold-molybdenum-silver deposit. A feasibility study, done by Tetra Tech, is slated to be completed by mid to late summer of 2012.
The feasibility study will include an updated geological model, resource estimate, reserve estimate, revised capital cost and operating cost estimates and other technical, socio-economic and financial aspects related to the feasibility study.
The Calgary, Alberta-based company said two diamond drill holes tested the 1,800 metre long by 900 metre wide chargeability anomaly known as the Discovery Zone.
Diamond drill hole 2012CF426 intersected variable concentrations of visible chalcopyrite, a copper iron sulphide mineral, over 90 per cent of the core length at the Discovery Zone.
Drill hole 2012CF427, located 400 metres northwest of hole 2012CF426, tested the strike extension of the chargeability anomaly at Discovery Zone.
This hole hit variable concentrations of chalcopyrite and sporadic molybenite mineralization from an interval of 250 metres to 769 metres.
The chalcopyrite-molybdenite mineralization occurs as disseminations, veins and veinlets, which exhibit a number of thin basic dikes. This hole contains large intervals of silicification.
“I am pleased with the results of the first two holes completed in the Discovery Zone,” Copper Fox chief executive Elmer Stewart said in a statement.
“The mineralization in the drill core combined with the results of the Aster study and field mapping support the existence of additional zones of copper-molybdenite mineralization to the north along the previously identified Schaft Creek mineral trend.”
Copper Fox said assay results will be released shortly.
Meantime, drill holes 2012CF429 and 2012CF429B were terminated due to extremely difficult ground conditions at the Mike Zone. These drill holes were meant to test strong chargeability anomalies that define the Mike Zone, Copper Fox said.
Both drill holes reached a depth of 140 metres before being nixed.
Separately, Copper Fox also purchased nine mineral claims totalling 2,936 hectares from Randy Marko and Paul Mott.
These claims, which Copper Fox paid $10,000 plus a two per cent net smelter return royalty, are next to the company’s Schaft Creek project.
According to the deal, the company can also purchase half of the net smelter royalty for $1 million cash reducing the royalty fee down to one per cent.
The Schaft Creek project rests 45 kilometres west of the Stewart-Cassiar Highway and approximately 80 km south of Telegraph Creek in north western British Columbia.
The Schaft Creek is a giant porphyry copper-gold-molybdenum-silver deposit. A feasibility study, done by Tetra Tech, is slated to be completed by mid to late summer of 2012.
The feasibility study will include an updated geological model, resource estimate, reserve estimate, revised capital cost and operating cost estimates and other technical, socio-economic and financial aspects related to the feasibility study.
Wednesday, 1 August 2012
Sunridge Gold encounters 1.0 g/t gold, 0.8% copper over 56 metres at Adi Rassi, Eritrea
Sunridge Gold Corp. (CVE:SGC)(OTCQX:SGCNF)
Wednesday reported final assays results for the 2012 exploration
diamond drill program at the Adi Rassi copper-gold prospect, part of the
Asmara Project in Eritrea.
The company said that the results continued to show wide copper and gold intercepts and confirms management's belief that Adi Rassi is a new large copper-gold discovery that has the potential to become Sunridge's fifth deposit on the Asmara Project.
"The 2012 drill program has successfully better defined and expanded the copper and gold mineralized zone and it is now clear that Adi Rassi has the potential of becoming much larger than the nearby Debarwa deposit" Sunridge's president and CEO Michael Hopley said.
"Metallurgical test work is underway to determine if the copper and gold recovery methodology is compatible with the process to be used at the nearby Debarwa copper-gold deposit. The next step is to have an independent initial resource estimate completed".
The copper-gold mineralized zone has now been defined over about 400 metres strike length, 40 to 100 metres in width and to a vertical depth of 330 metres. The zone remains open and Sunridge is now planning the next phase of drilling and completion of an initial resource estimate on the Adi Rassi deposit.
Amongst the highlights, hole AR-013-D encountered 0.80% copper and 1.01 grams per tonne (g/t) gold over 56.17 metres; AR-014-D drilled for 49.65 metres averaging 0.31% copper and 0.47 g/t gold; hole AR-016-D discovered 0.52% copper and 0.34 g/t gold over 74.26 metres; AR-017-D drilled 38.20 metres averaging 1.50% copper and 0.50 g/t gold and hole AR-018-D encountered 0.54% copper and 0.43 g/t gold over 99 metres.
Copper and gold mineralization at Adi Rassi is associated with quartz veins and breccia zones along a major shear zone that trends northeast for over 3 kilometres and dips steeply to the west.
This mineralization is considered to be remobilized from a distal source, possibly an as yet unidentified buried volcanogenic massive sulphide (VMS) deposit and is mainly hosted in strongly foliated and distorted altered mafic volcanic tuff and flows.
The Adi Rassi prospect is located less than 10 kilometres from Sunridge's Debarwa copper-zinc-gold VMS deposit where a positive feasibility study was completed and announced May 14, 2012. This proximity could have positive implications for any mining opportunities in the southern part of the Asmara Project.
Other gold and VMS targets drilled as part of the 2012 exploration program have yet to return any significant results although further assays are still expected. Sunridge will now focus its efforts on moving the four established deposits on the Asmara project to the completion of a final feasibility study in Q1 2013 and developing a new resource at Adi Rassi.
Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea and exploration properties in Madagascar.
The company said that the results continued to show wide copper and gold intercepts and confirms management's belief that Adi Rassi is a new large copper-gold discovery that has the potential to become Sunridge's fifth deposit on the Asmara Project.
"The 2012 drill program has successfully better defined and expanded the copper and gold mineralized zone and it is now clear that Adi Rassi has the potential of becoming much larger than the nearby Debarwa deposit" Sunridge's president and CEO Michael Hopley said.
"Metallurgical test work is underway to determine if the copper and gold recovery methodology is compatible with the process to be used at the nearby Debarwa copper-gold deposit. The next step is to have an independent initial resource estimate completed".
The copper-gold mineralized zone has now been defined over about 400 metres strike length, 40 to 100 metres in width and to a vertical depth of 330 metres. The zone remains open and Sunridge is now planning the next phase of drilling and completion of an initial resource estimate on the Adi Rassi deposit.
Amongst the highlights, hole AR-013-D encountered 0.80% copper and 1.01 grams per tonne (g/t) gold over 56.17 metres; AR-014-D drilled for 49.65 metres averaging 0.31% copper and 0.47 g/t gold; hole AR-016-D discovered 0.52% copper and 0.34 g/t gold over 74.26 metres; AR-017-D drilled 38.20 metres averaging 1.50% copper and 0.50 g/t gold and hole AR-018-D encountered 0.54% copper and 0.43 g/t gold over 99 metres.
Copper and gold mineralization at Adi Rassi is associated with quartz veins and breccia zones along a major shear zone that trends northeast for over 3 kilometres and dips steeply to the west.
This mineralization is considered to be remobilized from a distal source, possibly an as yet unidentified buried volcanogenic massive sulphide (VMS) deposit and is mainly hosted in strongly foliated and distorted altered mafic volcanic tuff and flows.
The Adi Rassi prospect is located less than 10 kilometres from Sunridge's Debarwa copper-zinc-gold VMS deposit where a positive feasibility study was completed and announced May 14, 2012. This proximity could have positive implications for any mining opportunities in the southern part of the Asmara Project.
Other gold and VMS targets drilled as part of the 2012 exploration program have yet to return any significant results although further assays are still expected. Sunridge will now focus its efforts on moving the four established deposits on the Asmara project to the completion of a final feasibility study in Q1 2013 and developing a new resource at Adi Rassi.
Sunridge is a mineral exploration and development company focused on the acquisition, exploration, discovery and development of base and precious metal projects on the Asmara Project in Eritrea and exploration properties in Madagascar.
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