Western Potash to raise $15 mln for Milestone feasibility study

Vancouver-based Western Potash Corp. (TSE:WPX) (FSE: AHE) will raise $15 million in a non-brokered private placement financing, the potash explorer said last night. 

The company has negotiated to sell up to 31.25 million units at a price of 48 cents each.

Every unit will be made up of one comon share and one share purchase warrant, with each warrant good for one additional share at a price of 58 cents within three years of closing. 

Western Potash said the new funds would be used to complete a feasibility study for its Milestone potash project in Saskatchewan, for environmental and permitting expenses, as well as for general working capital. 

Earlier this month, Western Potash said that it was talking about a joint venture with India’s Rashtriya Chemicals and Fertilizers among others, Reuters reported.

The junior potash company plans to build the Milestone mine southeast of Regina, Saskatchewan by 2016 and eventually produce 2.8 million tonnes of potash, a key soil nutrient for growing crops.

Western Potash hopes to strike a deal with an investor on buying a stake in the company or taking it over by the end of 2012, with a feasibility study on Milestone due in late November.

Rashtriya’s chairman, R.G. Rajan, told Reuters that the state-run company is considering a possible $1 billion investment in Canadian potash mines to secure long-term supplies.

That level of investment could make it a junior partner in Western’s project, which is estimated to cost $2.5 billion.

India is the world’s number two buyer of potash, and its major suppliers include Potash Corporation of Saskatchewan (TSE:POT),Mosaic Co. (NYSE:MOS), and Agrium (TSE:AGU)(NYSE:AGU). The country meets its entire potash requirement through imports.

Western Potash recently submitted an environmental impact statement to the Saskatchewan government about the Milestone project. Following a technical review by regulatory agencies, the report will be available for public review and will be available on the company's website - expected sometime in the fourth quarter. 

The environmental report details features designed to minimize the potential impacts of the project to the environment, while "optimizing social and economic benefits" to the local and regional communities.

Under NI 43-101 guidelines, the Milestone project holds 66.6 million tonnes of measured recoverable resource, 186.9 million tonnes of indicated recoverable resource and 708.2 million tonnes of inferred recoverable resource.

NeoMagic snags MercadoMagico.com to expand in e-commerce space

NeoMagic Corp (PINK:NMGC) said today it has acquired MercadoMagico.com, an e-commerce platform where users will be able to buy and sell products from one another, or purchase electronic products directly from the site. 

The platform will initially target the US market with a special focus on the Hispanic and Latino community. 

"With completion of the acquisition of MercardoMagico.com,NeoMagic is positioning itself to execute its e-Commerce strategy of entering the multibillion dollar e-Commerce space," said president and CEO of NeoMagic, Syed Zaidi. 

"NeoMagic's entry into the e-Commerce space significantly expands its growth opportunities and accelerates its return to profitability."

NeoMagic designs and develops chip technology for consumer electronic devices for video, television, imaging, graphics, and audio. Its technology solutions offer low power consumption and high performance processing, it said. 

The company also delivers a suite of middleware and sample applications for imaging, video and audio functionality, and provides multiple operating system ports with customized drivers for its products. 

NeoMagic's semiconductors, or applications processors, are sold under the MiMagic brand name, and has developed the Horizon Digital Picture Frame kit using the MiMagic 6+.

With the acquisition of MercadoMagico.com, the company's goal will be to increase revenues and profits of its high-margin semiconductor and online e-commerce divisions. 

NeoMagic said it also aims to increase shareholder value, improve liquidity, create greater access to capital markets and raise brand awareness.

"MercadoMagico.com aims to become the leading e-Commerce marketplace among Hispanic and Latino buyers & sellers in the U.S. and internationally," said chairman of NeoMagic, David Tomasello. 

"The Hispanic online community is growing exponentially in major U.S markets; its buying power is on the rise. The Hispanic online vendor and consumer are loyal but remain underserved and it is our intent to cater to this underserved market."

Tomasello, the managing director of Bluestone Financial and Attiva Capital Partners, NeoMagic's largest shareholders, is currently in the final stages of structuring an equity investment in the company. 

The details of such investment will be announced in the upcoming weeks, NeoMagic said.

Focus Graphite provides update on Lac Knife PEA release

Focus Graphite (CVE:FMS)(OTCQX:FCSMF) said today that it will issue results from a preliminary economic assessment report for its Lac Knife graphite project in Quebec, together with a technical report, on or before October 31. 

The company said this is due to a requirement set by the Ontario Securities Commission to file the technical report on Sedar, by no later than October 31. 

The report is being completed by Roscoe Postle Associates, Focus said. 

Focus Graphite is the owner of one of the highest-grade, at 16 per cent, technology graphite resource in the world at its Lac Knife project in Quebec. It is also invested in the development of graphene applications and patents through its Grafoid Inc business.

On Monday, the company heralded the arrival of chemical engineer Joseph E. Doninger as the new director of manufacturing and technology. 

Doninger, whose appointment became effective October 1, is a developer and co-developer of many Canadian, European and U.S. patent applications tied to carbon processing methods and processing equipment.  

He is the author and co-author of more than two dozen technical reports and studies relating to graphite composite anodes, carbon-based materials for electrochemical energy storage systems and other related publications. 

In his new role, he will be responsible for leading Focus Graphite's team to meet objectives at its future mine site and planned processing plants in Varennes, Quebec. 

In June, Focus started its 2012 infill and exploration drilling program at the Lac Knife project. Around 5,000 metres of infill drilling is planned, with the aim of upgrading the miner's existing inferred resource to the indicated category. 

The results will be used to revise and upgrade the company's NI 43-101 compliant 4.9 million tons at 15.8 per cent Cgr (Carbon as graphite) indicated resource, and 3.0 million tons at 15.6 per cent Cgr inferred resource published last December.       

The company said Lac Knife will be able to produce large and medium flake, battery-grade graphite at the lowest cost in the world, at just $350 per tonne.          

An additional 2,500 metre exploration drill program will be done to test a number of targets outside the existing resource on the Lac Knife property.

Earlier this year, Focus inked a licensing agreement with Hyrdo-Quebec's technology research institute, IREQ, allowing the junior explorer to develop a graphite purification facility and anode production facility for lithium-ion batteries.

The facility will transform first-production graphite sourced from Lac Knife to battery-grade material.

Frontier Rare Earths says negotiations for expanded strategic deal with Korea Resources Corp at advanced stage

Negotiations for the "significant expansion" of a strategic deal between Frontier Rare Earths (TSE:FRO) and state-owned Korea Resources Corp are at an advanced stage, said Frontier on Monday. 

The update on the joint venture, which was initially signed last December, was provided late yesterday in a statement about the development of Frontier's Zandkopsdrift rare earth project in South Africa. 

In December 2011, Frontier and Korea Resources Corp, or Kores, signed a definitive strategic  partnership agreement to advance Frontier's  Zandkopsdrift property, giving Kores an initial 10 per cent stake in the asset, along with off-take rights for 10 per cent of the rare earth production. 

Kores also has the option to acquire a further 10 per cent stake in the project, and a 10 per cent interest in Frontier following a definitive feasibility study, giving Kores off-take rights for a total of 31 per cent of Zandkopsdrift's rare earth production, if exercised. 

Earlier this summer, however, Frontier said Kores approached the company with a proposal to "significantly increase" its potential interest in Zandkopsdrift, and its involvement in the financing, development, and operation of the proposed rare earth mining and processing operations. 

Frontier said the proposal, which it considers to be of "potentially significant benefit" to  the company, has been the subject of what it called "extensive" discussions and negotiations between the two parties. 

The rare earth miner added that the discussions are now at an advanced stage, and expects them to be concluded this month. 

"Frontier believes that the proposal from Kores to significantly expand our current joint venture arrangements is a strong vote of confidence  in both the management of Frontier and the potential of our  Zandkopsdrift project," said Frontier president and CEO, James Kenny in a statement last night.

"While the existing agreement with Kores already offers significant benefits to Frontier and to our plans for the  development of Zandkopsdrift, the possible expansion and deepening of  our partnership with Kores, with whom we have developed a very good working relationship, would be very welcome."

The Korean government-owned mining and natural resources company is currently responsible for its share of all operating costs and expenses related to the Zandkopsdrift project, proportionate to its initial 10 per cent interest in the rare earths property.

Korea's high tech sector is a prime target for rare earth mining companies outside China looking for a financial partner to help develop their assets as rare earths demand is driven, in large part, by two fast-growing sectors - energy and high technology.

Frontier said that in light of the negotiations between the two companies, Kores has requested that the payment date for the C$23.78 million due under the initial agreement be extended from September 30 to November 30. 

If an expanded deal is not reached by the new date, the terms of the original agreement will remain binding, and the payment due by Kores will be required by the November deadline. 

Frontier's preliminary economic assessment report on the project, released in February, reported that Zandkopsdrift is estimated to contain roughly 950,000 tonnes of total rare earth oxide (TREO), applying a one per cent TREO cut-off, and gave a whopping net present value of $3.65 billion, after tax and royalties, at an 11 per cent discount rate.

Internal rate of return for the project was seen at 52.5 per cent, after tax and royalties, with a two year payback from start of production. Average production was pegged at 20,000 tonnes of separated rare earth oxides per year over a 20-year mine life, with production due to start in the second half of 2015.

Zandkopsdrift's "key to success" is mineralogy - as the property contains conventional rare earth minerals, with 97 per cent being monazite, for which commercial extraction processes already exist.

Frontier said a few months back that the definitive feasibility study for the property is scheduled for completion in the third quarter of 2013.

At the end of June, the company received final assay results from its 2011 drilling program at Zandkopsdrift that yielded TREO grades as high as 19.5 per cent.

Focus Graphite appoints new director of manufacturing and technology

Focus Graphite (CVE:FMS) Monday heralded the arrival of chemical engineer Joseph E. Doninger as the new director of manufacturing and technology. 

Doninger, whose appointment became effective October 1, is a developer and co-developer of many Canadian, European and U.S. patent applications tied to carbon processing methods and processing equipment.  

He is the author and co-author of more than two dozen technical reports and studies relating to graphite composite anodes, carbon-based materials for electrochemical energy storage systems and other related publications. 

In his new role, he will be responsible for leading Focus Graphite's team to meet objectives at its future mine site and planned processing plants in Varennes, Quebec. 

As a consulting engineer, he served as president of Dontech Global and during his 17-year career with Superior Graphite Co., he held posts of senior vice president of engineering and product commercialization, and vice president of manufacturing, and VP of technology.  

"Doninger's international credentials and experience dovetail with Focus Graphite's mine-to-market-technology business objectives," chief executive Gary Economo said in a statement on Monday.

"Doninger is not only an industry innovator, he is an industry insider with an established and successful senior management background with Chicago-based Superior Graphite among other internationally recognized graphite technology companies."

In late August, Focus announced the start of a 2012 exploration program at its Kwyjibo polymetallic property in Northeastern Quebec. 

Some 4,000 metres of exploration drilling is planned, with the impetus of confirming grades, thickness and continuity of the rare earth-iron-copper mineralization seen in the area of the Josette horizon. 

The best drilling intersections obtained from this area in 2011 included 2.40% total rare earth oxides (TREO) over 48.8 metres, and 3.61% TREO over 33.1 metres. 

The company plans to include results of this latest drilling program in an NI 43-101 compliant resource estimate at the end of the campaign. 

Focus, in August 2010, signed a deal with Soquem to buy a 50 per cent interest in the Kwyjibo property.

The Kwyjibo property consists of 118 mining titles and covers 6,278 hectares, located several kilometers north of Manitou Lake and 125 kilometres northeast of Sept-Iles, in the Cote-Nord administrative district of Quebec.

Focus Graphite is the owner of one of the highest-grade, at 16 per cent, technology graphite resource in the world at its Lac Knife project in Quebec. It is also invested in the development of graphene applications and patents through its Grafoid Inc business.

Great Western Minerals to conduct yttrium oxide purification assessment for U.S. Department of Defense

Great Western Minerals Group (CVE:GWG) said Monday that one of its subsidiaries has been chosen by the U.S. Defense Department to conduct a supply chain assessment for high purity yttrium oxide.

The company's rare earths processing subsidiary, Great Western Technologies, of Troy, Michigan, was chosen by the Department of Defense, Great Western Minerals said in a statement. 

Yttrium oxide is used in several defense applications like polishing compounds for precision lasers and thermal barrier coatings for jet engines. 

"We intend to advance previous Department of Defense research to uncover the extent to which the defense industrial base has the capacity to produce high-purity yttrium oxide to support critical defense programs," interim chief executive Robert Quinn said in a release. 

"The Defense Department's investment in our research is an acknowledgment of yttrium's strategic role in national defense and the potential of Great Western Minerals Group to meet future needs," Quinn said. 

Almost all high-purity yttria is produced in China, where about 94 per cent of the world's rare earth oxides are also produced. 

The Department of Defense has projected an annual shortfall of 93 short tons of elemental yttrium from domestic sources by 2013. 

Great Western's stock gained 1.33 per cent to hit 38 cents on the TSX Venture Exchange this afternoon. 

Rare earth stocks have struggled recently as a flood of new production into the market is likely to cause a further slide in prices, with new production announced from Molycorp (NYSE:MCP) and Lynas Corp. (ASX:LYC). 

In the past six months, the Market Vectors Rare Earth/Strategic Metals ETF has fallen over 20 per cent, according to a Reuters report. 

Great Western Minerals is an integrated rare earth processor. Its specialty alloys are used in the magnet, battery, defense and aerospace industries. 

Produced at the company's subsidiaries in the US and the UK, these alloys contain aluminum, nickel, cobalt and rare earth elements. 

And as part of the company's vertical integration strategy, Great Western also holds 100 per cent of Rare Earth Extraction Co. Limited, which owns a 74 per cent equity interest in the Steenkampskraal Mine in South Africa. 

The company also holds interests in four active rare earth exploration properties in North America.

Otis Gold rises as Dr. Roger Norwich appointed director

Otis Gold Corp. (CVE:OOO)(OTCQX:OGLDF) says it has appointed Dr. Roger Norwich as a director of the company, sending its shares up more than 18 per cent Monday. 

Dr. Norwich, a founding director of the former TSX Venture Exchange-listed Mexican Silver Mines, which merged withRio Alto Mining (TSE:RIO) in 2009, remains an independent director of Rio Alto. 

Otis, which is developing its Kilgore gold project in Idaho, noted that Rio Alto has, since the merger, grown from a development-stage operation to a "significant" gold producer that has poured 114,000 ounces of gold in the first six months of this year. 

At the moment, Dr. Norwich is a non-exec chairman of Mexico-based Grupo Minero Panuco, a private company that has producing copper, gold and molybdenum assets. 

Most recently, he joined the board of Inkron Limited, a private company based in Hong Kong that is involved in nanometal production for the electronics industry. 

Early in his career, he worked as an oil exploration geologist for Texaco and gained experience in the North Sea, the Gulf of Mexico and the Permian Basin.

"We are very pleased to have someone of Roger's caliber join our Board of Directors," said Otis Gold's president and CEO, CraigLindsay.

"His active experience with Rio Alto and Panuco as they moved from development companies to producers will be of significant benefit to Otis as we continue to progress the Kilgore Gold Project on a path to production."               

The gold miner's shares were up almost 19 per cent on the news today at 19 cents and are up almost 81 per cent in the last 5 days. 

In the summer, the gold explorer unveiled an updated NI 43-101 resource estimate for its Kilgore gold deposit located in Clark County, Idaho. 

The Kilgore gold deposit now contains an indicated resource of 520,000 ounces gold in 27.35 million tonnes at a grade of 0.59 grams per tonne (g/t) gold, representing an increase of 138 per cent in the number of ounces and 328 per cent in the number of tonnes compared to the deposit’s 2002 estimate.

Additionally, Kilgore has an inferred resource of 300,000 ounces gold in 20.23 million tonnes at a grade of 0.46 g/t gold, representing an increase of 12 per cent in the number of ounces and 131 per cent in the number of tonnes versus the 2002 estimate.

The company noted that this was its first resource estimate since acquiring the property in late 2008. It includes all historical drilling plus an additional 92 core holes drilled between 2008 through 2011, and uses a gold cut-off grade of 0.24 g/t.

In a conference call soon after the release of the new resource report, CEO Craig Lindsay noted that while the overall grades in the estimate are lower than in 2002, the size of the resource has increased substantially and the strip ratio has improved comparatively.

Separately, in an operational update, the company said in July that the U.S. Forest Service, Caribou-Targhee National Forest, issued a permit to Otis at the end of May to conduct a 14 to 20-hole program consisting of 4,000 metres of HQ core drilling.

Lindsay noted that among the qualities that make Kilgore a unique and attractive project is the good relationship that Otis has developed with the forest service – with all of the project’s permits turned around in six weeks or less.

Otis also said it was in the process of performing a cultural survey and preparing a plan of operation to build 1,350 metres of new roads into the North area of the deposit, which is defined by seven significant gold-in-soil anomalies and several open-ended mineralized holes with over 100-metre-thick intercepts averaging up to 0.89 g/t gold.

The Kilgore gold project is 5,130 acres in size, is 100-per-cent-owned by Otis and is subject to no underlying royalties.

An important achievement for the company this year was the addition of 1,880 acres, boosting its land position at Kilgore by 58 per cent and giving the miner flat land that is appropriate for heap leach processing.

Soligenix's dog study for OrbeShield radiation drug to be presented at Radiation Research meeting in Puerto Rico

Soligenix (OTCQB: SNGX) said today that results of an animal study of its OrbeShield drug will be presented at a poster session during the 58th annual meeting of the Radiation Research Society. 

The event will be held in San Juan, Puerto Rico from September 30, to October 3. 

In the recently completed study in canines, "statistically significant survival" was seen in dogs that received OrbeShield therapy starting both 2 and 24 hours following exposure to total body irradiation (TBI). 

The company said the program was designed to simulate real world scenarios, in which people exposed to various levels of radiation would not be able to reach care centres immediately after a nuclear event.

In the study, untreated dogs died at a median time of 8 days when exposed to high dose radiation of 10-12 Gray (Gy), even if the dogs were given intensive supportive care such as antibiotics, intravenous fluids and anti-emetics. 

Transplant of autologous bone marrow cells also had no effect on the rate of death of the exposed animals, Soligenix said. 

During the observation period, the company said the survival of dogs was "strongly correlated to the recovery from acute radiation damage to the GI tract." 

The studies were conducted by George E. Georges, MD, at the Fred Hutchinson Cancer Research Center (FHCRC) under a National Institute of Allergy and Infectious Diseases (NIAID) funded grant. 

The OrbeShield program is also the subject of a new $600,000 NIAID Small Business Innovation Research (SBIR) grant.

Gastrointestinal acute radiation syndrome is a potentially life-threatening consequence of exposure to high doses of radiation following a serious nuclear event. 

There is currently no effective therapy approved for the treatment of the condition. 

OrbeShield contains BDP, a highly potent, topically active corticosteroid that has a local effect on inflamed tissue. The treatment is formulated for oral administration. 

BDP has been marketed in the United States and worldwide since the early 1970s as the active pharmaceutical ingredient in inhalation products for  patients with allergic rhinitis and asthma. 

Rock Tech Lithium starts 3,000 metre drill program at Lochaber graphite property

Rock Tech Lithium  (CVE: RCK) has started a 3,000 metre drill program at the Lochaber graphite property near Gatineau, Quebec, it said today. 

The program will test the ground geophysical survey targets found on the property as announced last week. 

The company saw its shares rise last week after saying that a ground geophysical survey found "several graphite exploration targets" at Lochaber. 

Rock Tech carried out a 35.17 line-kilometre magnetic survey in addition to 33.7 line-kilometres of horizontal loop electromagnetic (HLEM) surveying in the Plumbago area of the property.

The interpretation of the magnetic survey data outlined “several wide and intense magnetic anomalies”,  all of which follow a north-northeast orientation, said Rock Tech, adding that the HLEM survey also mapped five north-south oriented conductors.

“The ground geophysical survey results are a testament to the merit of the Lochaber property,” said president and Rock Tech CEO Eunho Lee, at the time. 

Rock Tech said the survey was done on traverses 50-metres spaced, with control-lines 100-metres spaced and oriented north-south. 

Earlier in September, the company reported that it had yielded grades of up to 22 per cent graphite from results of surface grab samples at its Lochaber property in Quebec. The majority of the samples were collected from historical graphite occurrences, past producing mines and other areas of past exploration work.  

Rock Tech Lithium is a Canadian resource company, focused on acquiring, exploring and developing lithium and rare metals properties.

The company holds 100-per-cent interests in three lithium properties: the Georgia Lake project in the Thunder Bay Mining District of NW Ontario, the Kapiwak project in the James Bay Region of northern Quebec, and the Lacorne project that surrounds Canada Lithium's lithium mine in the Val d’Or mining district of eastern Quebec.

Rock Tech updated its NI 43-101-compliant resource estimate at Georgia Lake last month.

The estimate, based upon the company’s recently-completed field program, phase 1 and phase 2 exploration results and historical exploration data, holds 3.19 million tonnes at 1.10 per cent lithium oxide (Li2O) in the indicated category and 6.31 million tonnes at 1.00 per cent Li2O in the inferred category.

Rathdowney Resources options out Irish properties to Teck subsidiary

Vancouver-based Rathdowney Resources (CVE:RTH) says it has optioned out 31 of its prospecting licenses in the Irish Midlands zinc-lead district to Teck Resources' (TSE:TCK.B) Irish subsidiary. 

The licenses comprise the Westmeath South, Westmeath North, Galway, Laois, Longford and Meath properties in Ireland. 

"Rathdowney's work on these prospecting licenses in Ireland has provided  a solid platform for Teck Ireland to advance exploration and include in  its regional geophysical surveys, targeting major concealed zinc-lead  mineralizing systems," said Rathdowney's CEO and president, John Barry, in a statement Monday.

"Rathdowney retains significant participation in any major economic discovery, while being able to focus its current  resources on the Project Olza zinc-lead project in Poland."

The Teck subsidiary will have the option to acquire a 100 per cent interest in the prospecting licenses by spending C$4.39 million on or before December  31, 2016.  

Rathdowney will retain a 2 per cent net smelter returns royalty on minerals extracted from the areas covered by the licenses, with the acquisition still subject to Ministerial approval in Ireland. 

Once the approval is secured, Teck will also make a C$350,000 private placement in Rathdowney by subscribing for 700,000 common shares at 50 Canadian cents each. 

The placement still needs approval from the TSX Venture Exchange, Rathdowney said. 

The junior zinc and lead explorer is focused on its Olza project in Poland, located in the prolific Upper Silesian Mineral District, an area of extensive Mississippi Valley-type deposits in which zinc-lead mining has taken place since the 12th century.

Last week, Rathdowney was granted a third exploration concession, expanding its Olza zinc-lead property to now cover some 150 square kilometres. The third concession, called Chechlo, covers 50.8 square kilometres and is next to the company's Rokitno concession. 

The concession was granted to Rathdowney's Polish subsidiary by the Ministry for the Environment for a period of five years, the company said late Thursday. 

The Chechlo concession lies to the southwest of project Olza, for which the company released a maiden NI 43-101 compliant resource in September, along the  same "richly-mineralized" zinc-lead trend, Rathdowney said. 

The concession has seen  little exploration activity compared to other parts of the property. 

The miner noted that during the 1950-1970s, the Polish State conducted limited diamond drilling  of around 125 holes over  an area of roughly 18 square kilometres, but that the majority of the  Chechlo concession remains unexplored. 

The company is finalizing plans for a 5,000 metre drilling campaign on selected targets at Chechlo and other parts of the Olza project. 

The ultimate aim is to expand the mineral resources at the Olza project, which the company recently defined in a NI 43-101 report. 

At a 2.0 per cent zinc cutoff, these inferred mineral resources stand at 21.2 million tonnes grading 7.42 per cent combined zinc and lead - or 5.88 per cent zinc and 1.54 per cent lead.  

The Olza project is near a state-owned zinc smelter complex that is expected to have additional smelting capacity when the Pomorzany mine in the region closes in the next three to five years.

The surrounding infrastructure at Olza, as well as the expected increase in zinc prices as supply wanes over the medium term, bodes well for Rathdowney Resources and the development of its Polish property. 

Rathdowney's stock closed at 47.5 cents on Friday, up almost 8 per cent in the last month.

Curis Resources snags operating permit for Florence copper project in Arizona

Curis Resources (TSE:CUV) says it has secured an operating permit for the state of Arizona for its Florence copper project, calling it a "key milestone" in the construction and development of the site. 

The company said late Friday it received the Aquifer Protection Permit from the State of Arizona's Department of Environmental Quality (ADEQ), which applies to the design, operation and closure of its phase 1 operations at the site. 

"The receipt this week of our Phase 1 operating permit from the Arizona  Department of Environmental Quality is a key milestone for the company  as we look forward to the start of construction and development of the  Florence Copper project," said Curis' president and CEO, Michael McPhie.  

"With our financing in place, detailed engineering complete and long lead  time equipment ordered, this positive decision by ADEQ brings us one  step closer to the start of construction and copper production at  Florence Copper." 

The permit received Friday authorizes the construction, operation and closure of a 24-well in-situ copper recovery operation - phase 1 - at the company's project in Florence, Arizona.

The recovery operation will be accompanied by an art solvent extraction/electrowinning facility that is designed to produce 99.999% pure copper cathode sheets, Curis said. 

The in-situ recovery process requires no movement of rock or overburden, and there is therefore a substantially smaller footprint, with much less of an environmental impact on the surrounding area than with more traditional open pit mining operations. 

The technique also requires substantially less mechanical energy in the form of trucks and explosives, and therefore generates significantly lower operating and capital costs.

Though several million pounds of copper is expected over the life of the phase 1 program, McPhie told Proactive Investors over the summer that the 24 wells are relatively small in context of a full commercial operation, and the primary focus of the first phase is the "optimization and refinement of the development plan."

"Our aim is to further prove up all the engineering and environmental safeguards through the phase 1 program, with the intent to begin development of the commercial plant facility and well field, referred to as phase 2, by the end of 2013."

According to the latest timeline, the company could begin full commercial production by early 2015, after which it expects to produce between 55 and 84 million pounds of copper per year.

Curis anticipates having phase 2 commercial scale operating permit approvals well before it is ready to begin construction in late 2013, as the phase 2 permits will just be an extension of permits already in place.

The feasibility study for the property is targeted for the first quarter of 2013.

Rather than focusing on expanding the size of the resource, which is already quite large, Curis is taking the approach of focusing on metallurgy and getting more copper from what is already there.

Indeed, for every percentage increase of copper recovery, higher revenues will be generated from the project, which has an estimated after-tax net present value of $360 million at a 7.5 per cent discount rate and a $2.50 per pound copper price.

Earlier this month, Curis said it hired engineer Bruce Marsh and mineral processing expert Greg Philips as it seeks to develop its operations in Arizona. Marsh joined Curis as senior vice president of strategic affairs and corporate development, while Phillips will be responsible for the planning, implementation and supervision of plant process and reclamation at Florence. 

Sunridge Gold to raise up to $10 mln for Asmara project

Vancouver-based Sunridge Gold Corp (CVE:SGC) (OTCQX:SGCNF) says it plans to raise up to $10 million through a non-brokered private placement financing. 

The offering is planned to consist of up to 45.45 million units at 22 cents each, with every unit holding one common share and one half of one share purchase warrant. 

Each whole warrant allows the holder to buy one additional share of the company at 35 cents for a period of five years from the closing date.

The mineral explorer said late Thursday it reserves the right to increase the size of the placement or modify the type or price of the units. 

The proceeds of the financing, which remains subject to regulatory approval, will be used to fund Sunridge's work programs at the Asmara project in Eritrea, as well as for general corporate purposes, it said. 

The Asmara project consists of four mineral deposits, the Emba Derho, Debarwa and Adi Nefas copper-zinc-gold and silver deposits, and the Gupo gold deposit, all located within 40 kilometres of the capital city of Asmara. 

The results of a preliminary feasibility study that considered all deposits being processed at a central mill was announced in May, and showed production of 365,000 tonnes of copper, 812,000 tonnes of zinc, 415,000 ounces of gold and 11 million ounces of silver over a 15.25 year mine life. 

The report also projected a pre-tax net present value of $555 million at a 10 per cent discount rate and an initial capital cost of $489 million.

Sunridge is now completing a feasibility study on the project, which is planned for completion in 2013, subject to financing. Application for a mining license and permitting will follow this study.

In late August, Sunridge said that the Eritrean government planned to acquire a 30 per cent paid interest in the Asmara project. The 30 per cent interest owned by the Eritrean National Mining Corp (ENAMCO) would be in addition to the government's existing right to get a 10 per cent non-assessable stake that will be carried to production by participating partners. 

The terms of the acquisition had not yet been established at the time, Sunridge said, and would be determined through negotiations. 

The mineral exploration and development company also has exploration properties in Madagascar.

Avrupa Minerals starts drilling at Covas joint venture

Avrupa Minerals (CVE:AVU) says it has started drilling at its Covas joint venture project in northern Portugal, a past producing tungsten project. 

The program at the site will include up to 2,100 metres of drilling, aimed at testing and expanding known zones of tungsten-bearing mineralization, testing new targets, as well as the previously-reported possibility of gold mineralization within the prospect area. 

The initial holes will test the Telheira and Lapa Grande mineral zones, located on the so-called "Skarn Ring" that encircles the Covas Dome granitic body, Avrupa said. 

The project, announced in May of last year, is a joint venture between Avrupa and Blackheath Resources (CVE:BHR), a tungsten explorer focused in Portugal.  

Blackheath is providing 1 million euros of exploration funding in two stages to earn up to a 70 per cent stake in the project, followed by a further option to earn up to 85 per cent by completing a feasibility study. 

Covas is a past producer of tungsten, and historic resources on the property were estimated at 922,900 metric tonnes of 0.78% tungsten trioxide. Reported past production, between 1951 and 1974, totaled roughly 366,000 metric tonnes at 0.61% tungsten trioxide. 

Exploration by Avrupa over the past three years uncovered new tungsten targets around the Skarn Ring and inside the Covas Dome area, as well as gold possibilities within the Dome, the company said.

The work included a compilation of old data, new geological mapping, soil geochemistry, ground geophysics and the integration of data into a single database. 

Earlier this month, Avrupa agreed to launch a $975,000 non-brokered private placement financing to raise funds for exploration at its mineral projects in Portugal, Kosovo and Germany. 

The financing will consist of 6.5 million units at 15 cents each. The company said funds will also be used to continue to generate new ideas and prospects in its core areas and elsewhere in Europe.

Aside from restarting work at Covas, Avrupa is continuing to advance the Alvalade project in the Portuguese Pyrite Belt with its joint venture partner, with a project exploration budget of US$2.5 million for 2012. 

With regards to its other properties in Portugal, Kosovo and Germany, the company said the assets will be dropped if significant targets are not found. 

In September, the company provided details of progress on it work programs in Portugal, highlighting its recent acquisition of the Arcas gold-tungsten license, which brings the total of licenses that the company holds in Portugal to nine, covering 2,608 square kilometres.

Avrupa said the Mining Bureau of Portugal (DGEG) awarded a two-year exploration contract to the company, covering 75.8 square kilometres in northern Portugal’s gold-tungsten belt. The company said the area was previously explored for tungsten deposits, but no past production has been reported. 

In 2011, Avrupa collected a total of five select samples of quartz vein material around the project area that averaged 2.15 parts per million (ppm) gold and ranged from 0.405 ppm gold to 3.89 ppm gold.

Stonecap keeps SilverCrest Mines at "Outperform" after La Joya update

Capital markets firm Stonecap Securities has kept its "Outperform" rating on SilverCrest Mines (CVE:SVL) after the company released an additional data from its Phase II drilling program at La Joya, Mexico. 

Stonecap also kept its $3.75 price target.

"SilverCrest provides investors with immediate and growing cash flow from its Santa Elena mine as well as exposure to the exciting potential bulk tonnage La Joya project," Stonecap mining analyst Christos Doulis said.

"The expected resource update at La Joya in Q4 of this year could act as a significant catalyst for SilverCrest shares."

Amongst the drilling highlights, SilverCrest said that on the main trend Drill Hole LJ DD12-65 intersected 157 metres grading 52 grams per tonne (g/t) silver, 0.24 g/t gold and 0.35% Cu  while drill Hole LJ DD 12-71 from the SE extension intersected 126 metres starting from surface grading 13 g/t silver, 0.4 g/t gold and 0.1% Cu.

Surface sampling in the central and southern areas of the trend highlighted the potential for higher grade material near surface with 99 metres grading 116.8 g/t silver, 0.32 g/t gold and 0.63% Cu.

Stonecap's Doulis added: "...at the current SVL share price we believe investors are getting the Santa Elena operation at a discount relative to its ultimate value and are not paying anything for the La Joya project."

Rathdowney Resources expands footprint at project Olza with third concession

Rathdowney Resources (CVE:RTH) says it has been granted a third exploration concession in Poland, expanding its Olza zinc-lead property that now covers some 150 square kilometres in the prolific Upper Silesian Mineral District. 

The Upper Silesian mining district of southwestern Poland is an area of extensive Mississippi Valley-type deposits in which zinc-lead mining has taken place since the 12th century.

The third concession, called Chechlo, covers 50.8 square kilometres and is next to the company's Rokitno concession. 

It has been granted to Rathdowney's Polish subsidiary by the Ministry for the Environment for a period of five years, the company said late Thursday. 

The Chechlo concession lies to the southwest of project Olza, for which the company earlier this month released a maiden NI 43-101 compliant resource, along the  same "richly-mineralized" zinc-lead trend, Rathdowney said. 

The concession has seen  little exploration activity compared to other parts of the property. 

The miner noted that during the 1950-1970s, the Polish State conducted limited diamond drilling  of around 125 holes at a spacing of 200-400 metres over  an area of roughly 18 square kilometres.  

The majority of the  Chechlo concession remains unexplored. 

At Chechlo, three stratiform zinc-lead mineralized zones - Western,  Northern and Central - are hosted by the Middle Triassic Dolomite unit known as the Ore-Bearing Dolomite, which hosts many mines in the Upper  Silesian District and, importantly, the company said, mineralization at other parts of Olza. 

Chechlo mineralization also occurs in Devonian carbonates underlying the Central zone, localized in one or several breccia pipes - which points to the possibility of finding additional mineralized breccia pipe systems that could be of significant size, Rathdowney said. 

Indeed, historical drilling indicates grades of 5 to 9% zinc plus lead in the stratiform  zones of variable thickness within locally-stacked mineralized horizons , at between 130 to 300 metres in depth.  

"Higher-grade mineralization, for example 10% zinc plus lead over 30 metres, was also intersected, and may represent the  mineralized breccia pipes, making them compelling targets," Rathdowney said in its statement. 

The company is finalizing plans for a 5,000 metre drilling campaign on selected targets at Chechlo and other parts of the Olza project. It plans on using techniques such a geophysics to target shallow breccias and potential feeder structures, it said. 

The ultimate aim is to expand the mineral resources at the Olza project, which the company recently defined in a NI 43-101 report. 

At a 2.0 per cent zinc cutoff, these inferred mineral resources stand at 21.2 million tonnes grading 7.42 per cent combined zinc and lead - or 5.88 per cent zinc and 1.54 per cent lead.  

The company said earlier this month that the mineralization within its first NI 43-101 compliant resource estimate at its Olza project averages about three metres in thickness.

"With a substantial positive initial  resource under our belt, further value generation will occur by building both tonnage and  grade," said president and CEO, John Barry.

"The acquisition of Chechlo gives us the opportunity to delineate  significant high-grade zinc-lead resources that would positively impact  the potential economics of the project."

The Olza project is near a state-owned zinc smelter complex that is expected to have additional smelting capacity when the Pomorzany mine in the region closes in the next three to five years.

The surrounding infrastructure at Olza, as well as the expected increase in zinc prices as supply wanes over the medium term, bodes well for Rathdowney Resources and the development of its Polish property.