Minbos Resources (ASX: MNB) is currently in a very interesting position due to holding some high grade potash projects in Angola and the Democratic Republic of Congo - covering a significant 400,000 hectares.
To progress these projects, Minbos has placed 9.6 million shares at $0.28 to raise A$2.7 million with clients of Patersons Securities and Macquarie Equities.
A one for ten rights issue has also been launched at the same price as the placement, which has the potential to raise another A$2.18 million.
Minbos has already highlighted funds will be used for a desktop study at the Kanzi deposit in the Democratic Republic of Congo - which just last week delivered a high grade maiden phosphate JORC Resource of 46 million tonnes at 17.2% phosphate, including a high grade zone of 31 million tonnes at 21.4% phosphate.
Money will also be allocated for a scoping status for the Cacata deposit (which already has an Indicated JORC Resource of 22.5 million tonnes at 21.4% phosphate) and, if warranted, commencement of a Bankable Feasibility Study.
The capital injection will also provide a boost to general further exploration drilling and analysis at the company's projects.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21370/minbos-resources-to-raise-up-to-a49m-to-progress-african-potash-projects-21370.html
Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London.
Sunday, 30 October 2011
Stellar Resources granted trading halt to finalise acquisition of 40% stake in Heemskirk Tin Project
Stellar Resources (ASX: SRZ) is in pre-open as it finalises a Sale and Purchase Agreement to acquire Gippsland’s (ASX: GIP) 40% carried interest in the Heemskirk Tin Project in Tasmania.
Stellar is confident it will be able to make a joint announcement with Gippsland regarding the acquisition by the commencement of trading on Wednesday, November 2.
The Heemskirk Tin Project, located near Zeehan on Tasmania’s West Coast, is estimated to have a JORC compliant resource of 4.4 million tonnes grading 1.1% tin, or 48,000 tonnes of contained tin.
A scoping study showed potential for economic development with a 3.5 year payback on $108 million pre-production capital and a competitive cash operating cost of US$12,780 per tonne of tin.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21368/stellar-resources-granted-trading-halt-to-finalise-acquisition-of-40-stake-in-heemskirk-tin-project-21368.html
Stellar is confident it will be able to make a joint announcement with Gippsland regarding the acquisition by the commencement of trading on Wednesday, November 2.
The Heemskirk Tin Project, located near Zeehan on Tasmania’s West Coast, is estimated to have a JORC compliant resource of 4.4 million tonnes grading 1.1% tin, or 48,000 tonnes of contained tin.
A scoping study showed potential for economic development with a 3.5 year payback on $108 million pre-production capital and a competitive cash operating cost of US$12,780 per tonne of tin.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21368/stellar-resources-granted-trading-halt-to-finalise-acquisition-of-40-stake-in-heemskirk-tin-project-21368.html
Circadian Technologies moves into clinical development phase on approval of IND for cancer drug
Circadian Technologies (ASX: CIR) will soon begin clinical trials of its VGX-100 antibody to treat cancer after its wholly owned subsidiary, Vegenics, received U.S. Food and Drug Administration (FDA) approval for its Investigational New Drug application to initiate clinical trials of VGX-100.
Chief executive Robert Klupacs said the FDA's acceptance of the company’s Investigational New Drug application represents an extremely important milestone for Circadian.
“We are well advanced in finalising clinical trial sites in the USA and expect clinical trials to commence before the end of 2011 with results becoming available from the study in the second half of 2012,” he said.
The first trial, or Phase I, will involve the treatment of a variety of different cancer types in patients with late stage cancer.
Circadian is focused on developing VGX-100, a human antibody against VEGF-C, as a treatment for solid tumours – including glioblastoma and colorectal cancer – as the first target indications for VGX-100.
VGX-100 works by blocking the growth of lymphatics. Circadian has already invested considerably in the VGX-100 molecule in terms of manufacturing, toxicology studies and other pre-clinical activities.
Circadian is also developing VGX-100 for a number of other cancer indications, as well as an agent to treat front-of the-eye diseases.
Studies to date
Preclincial animal model studies across a wide range of tumour types have shown that when combined with Avastin® and chemotherapy, VGX-100 can significantly reduce tumour growth and tumour spread.
As well, studies have shown that VGX-100 can significantly improve tumour inhibition, over and above that of Avastin® and/or chemotherapy alone.
Recent studies have also implicated VEGF-C as a key mediator of disease progression during Avastin® treatment, implying that combination therapy with VGX-100 and Avastin® could significantly improve treatment outcomes in cancer patients.
Circadian’s wholly owned subsidiary, Vegenics Pty Ltd, owns worldwide rights to an extensive intellectual property portfolio covering the angiogenesis and lymphangiogenesis targets VEGF-C, VEGF-D and the receptor protein VEGFR-3.
Vegenics has also been granted exclusive worldwide rights to intellectual property filed by Schepens Eye Research Institute, covering the use of anti-lymphangiogenc molecules for the treatment of Dry Eye Disease.
Late last month Circadian filed its Investigational New Drug application, which is a request for authorisation from the FDA to administer an investigational drug to humans.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21364/circadian-technologies-moves-into-clinical-development-phase-on-approval-of-ind-for-cancer-drug-21364.html
Chief executive Robert Klupacs said the FDA's acceptance of the company’s Investigational New Drug application represents an extremely important milestone for Circadian.
“We are well advanced in finalising clinical trial sites in the USA and expect clinical trials to commence before the end of 2011 with results becoming available from the study in the second half of 2012,” he said.
The first trial, or Phase I, will involve the treatment of a variety of different cancer types in patients with late stage cancer.
Circadian is focused on developing VGX-100, a human antibody against VEGF-C, as a treatment for solid tumours – including glioblastoma and colorectal cancer – as the first target indications for VGX-100.
VGX-100 works by blocking the growth of lymphatics. Circadian has already invested considerably in the VGX-100 molecule in terms of manufacturing, toxicology studies and other pre-clinical activities.
Circadian is also developing VGX-100 for a number of other cancer indications, as well as an agent to treat front-of the-eye diseases.
Studies to date
Preclincial animal model studies across a wide range of tumour types have shown that when combined with Avastin® and chemotherapy, VGX-100 can significantly reduce tumour growth and tumour spread.
As well, studies have shown that VGX-100 can significantly improve tumour inhibition, over and above that of Avastin® and/or chemotherapy alone.
Recent studies have also implicated VEGF-C as a key mediator of disease progression during Avastin® treatment, implying that combination therapy with VGX-100 and Avastin® could significantly improve treatment outcomes in cancer patients.
Circadian’s wholly owned subsidiary, Vegenics Pty Ltd, owns worldwide rights to an extensive intellectual property portfolio covering the angiogenesis and lymphangiogenesis targets VEGF-C, VEGF-D and the receptor protein VEGFR-3.
Vegenics has also been granted exclusive worldwide rights to intellectual property filed by Schepens Eye Research Institute, covering the use of anti-lymphangiogenc molecules for the treatment of Dry Eye Disease.
Late last month Circadian filed its Investigational New Drug application, which is a request for authorisation from the FDA to administer an investigational drug to humans.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21364/circadian-technologies-moves-into-clinical-development-phase-on-approval-of-ind-for-cancer-drug-21364.html
Gold One International substantial shareholder increases stake
Gold One International (ASX: GDO, JSE: GDO) significant shareholder Water Island LLC has increased its interest in the company.
Water Island acquired 13.17 million shares during October to move to 61.92 million shares equal to a 7.65% stake. Consideration was an average price of $0.53 per share.
Gold One International (ASX: GDO) is currently under an offer from a Chinese consortium which includes a cash offer of A$0.55 per Gold One share and a minimum A$150 million capital injection into Gold One - which would secure a 60% to 75% stake. The consortium currently holds around a 19% stake.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21365/gold-one-international-substantial-shareholder-increases-stake-21365.html
Water Island acquired 13.17 million shares during October to move to 61.92 million shares equal to a 7.65% stake. Consideration was an average price of $0.53 per share.
Gold One International (ASX: GDO) is currently under an offer from a Chinese consortium which includes a cash offer of A$0.55 per Gold One share and a minimum A$150 million capital injection into Gold One - which would secure a 60% to 75% stake. The consortium currently holds around a 19% stake.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21365/gold-one-international-substantial-shareholder-increases-stake-21365.html
Black Fire Minerals eyes maiden tungsten JORC Resource at Pilot Mountain
Black Fire Minerals (ASX: BFE) is preparing to drill the Pilot Mountain Tungsten-Copper Project located in Nevada, U.S., after recently taking up an option to wholly own the project.
A diamond drilling contractor has now been secured to commence the first program of resource definition drilling at the Desert Scheelite Prospect commencing in December 2011. A JORC Resource is targeted by mid-2012.
Highlighting the potential at the prospect, over 150 drill holes were previously completed by Union Carbide. Best results include:
- 12.6 metres at 0.59% tungsten, 0.32 ounces per tonne (oz/t) silver and 0.48% copper;
- 16.6 metres at 0.40% tungsten, 1.63oz/t silver and 0.42% copper; and
- 13.3 metres at 0.37% tungsten, 2.87oz/t silver and 0.10% copper.
These deposits were never exploited due to a significant collapse in tungsten prices in the mid 1980’s and no significant modern exploration has been undertaken on the project since then.
Consequently, the project represents an advanced opportunity for Black Fire to capitalise on the increasing demand for tungsten which has seen significant price growth both before and since the global financial crisis.
In addition, the project has the potential for significant copper and silver credits.
Union Carbide’s historic reporting of their activities at the Desert Scheelite, Gunmetal and Garnet deposits is not compliant with the JORC code and therefore cannot be reported by the company.
However, Black Fire’s initial exploration target for these 3 deposits is 7-9 million tonnes at 0.30% to 0.37% tungsten. This target tungsten grade, which is based on extensive historic drilling, is considered very competitive with many current global tungsten mines and resource projects.
The drilling program
The planned program will comprise up to 4,000 metres over 18 holes to twin and infill selected holes out of the plus 100 historic holes that were drilled predominantly on 33 metre by 33 metre centres.
The aim of this program is to provide confirmatory assay and geological information so that the extensive historic database may be brought into a maiden JORC Resource.
Should this program be successful, a considerable saving will be possible in terms of both drilling costs and time and should allow a maiden resource for Desert Scheelite to be delivered by the end of the June 2012.
Desert Scheelite - one of three advanced prospects
Providing a further boost to the potential of the Pilot Mountain Project, the Desert Scheelite Prospect is only one of three advanced prospects at the project.
The project has been historically extensively drilled and subjected to mining Feasibility Studies by Union Carbide Corporation during the early 1980’s.
In addition, Desert Scheelite was also trial mined with the successful extraction of a 70,000 tonne bulk sample.
Union Carbide “mothballed” the project in the mid 1980’s in response to a significant fall in tungsten prices at that time. There has been no significant exploration undertaken since that time.
Location and tenure
The Pilot Mountain Project comprises 154 unpatented Mineral Claims for 12.9 square kilometres, located on the eastern flank of Pilot Mountain, 250 kilometres southeast of the city of Reno and 20 kilometres east of the town of Mina.
This ground package is the result of a consolidation program undertaken by Black Fire who staked 109 claims to secure additional nearby prospects prior to acquiring the rights to PGC’s 45 claims over the historic deposits.
The project is located on open rangelands with excellent infrastructure including grid power and intrastate highway less than 20 kilometres to the west.
Nevada is the “mining capital” of the U.S. with a favourable regulatory environment and availability of equipment and a skilled workforce.
Geology and mineralisation
The Pilot Mountain project area is located within a thick package of bedded marine sediments of the Jurassic Luning Formation, which importantly comprises units of limestone and calcareous sediments which are the host to the tungsten-copper mineralisation.
Intruding these sedimentary rocks are a series of Cretaceous age quartz monzonites and granodiorites which have developed the skarn style mineralisation within the limestone beds.
Mineralisation is therefore effectively stratigraphically controlled where the favourable beds are in contact or close proximity to the causative intrusives. The principal tungsten mineral present is scheelite (CaWO4).
To date, mineralisation has been traced up to 200 metres away from the intrusive rocks and up to 600 metres along strike with widths ranging from 2 metres to 10 metres.
Three advanced prospect areas are known including Desert Scheelite, Gunmetal and Garnet and it is these prospects that were extensively drilled by Union Carbide between 1977 and 1983. A further 11 prospects at various stages of exploration fall within the project area.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21358/black-fire-minerals-eyes-maiden-tungsten-jorc-resource-at-pilot-mountain-21358.html
A diamond drilling contractor has now been secured to commence the first program of resource definition drilling at the Desert Scheelite Prospect commencing in December 2011. A JORC Resource is targeted by mid-2012.
Highlighting the potential at the prospect, over 150 drill holes were previously completed by Union Carbide. Best results include:
- 12.6 metres at 0.59% tungsten, 0.32 ounces per tonne (oz/t) silver and 0.48% copper;
- 16.6 metres at 0.40% tungsten, 1.63oz/t silver and 0.42% copper; and
- 13.3 metres at 0.37% tungsten, 2.87oz/t silver and 0.10% copper.
These deposits were never exploited due to a significant collapse in tungsten prices in the mid 1980’s and no significant modern exploration has been undertaken on the project since then.
Consequently, the project represents an advanced opportunity for Black Fire to capitalise on the increasing demand for tungsten which has seen significant price growth both before and since the global financial crisis.
In addition, the project has the potential for significant copper and silver credits.
Union Carbide’s historic reporting of their activities at the Desert Scheelite, Gunmetal and Garnet deposits is not compliant with the JORC code and therefore cannot be reported by the company.
However, Black Fire’s initial exploration target for these 3 deposits is 7-9 million tonnes at 0.30% to 0.37% tungsten. This target tungsten grade, which is based on extensive historic drilling, is considered very competitive with many current global tungsten mines and resource projects.
The drilling program
The planned program will comprise up to 4,000 metres over 18 holes to twin and infill selected holes out of the plus 100 historic holes that were drilled predominantly on 33 metre by 33 metre centres.
The aim of this program is to provide confirmatory assay and geological information so that the extensive historic database may be brought into a maiden JORC Resource.
Should this program be successful, a considerable saving will be possible in terms of both drilling costs and time and should allow a maiden resource for Desert Scheelite to be delivered by the end of the June 2012.
Desert Scheelite - one of three advanced prospects
Providing a further boost to the potential of the Pilot Mountain Project, the Desert Scheelite Prospect is only one of three advanced prospects at the project.
The project has been historically extensively drilled and subjected to mining Feasibility Studies by Union Carbide Corporation during the early 1980’s.
In addition, Desert Scheelite was also trial mined with the successful extraction of a 70,000 tonne bulk sample.
Union Carbide “mothballed” the project in the mid 1980’s in response to a significant fall in tungsten prices at that time. There has been no significant exploration undertaken since that time.
Location and tenure
The Pilot Mountain Project comprises 154 unpatented Mineral Claims for 12.9 square kilometres, located on the eastern flank of Pilot Mountain, 250 kilometres southeast of the city of Reno and 20 kilometres east of the town of Mina.
This ground package is the result of a consolidation program undertaken by Black Fire who staked 109 claims to secure additional nearby prospects prior to acquiring the rights to PGC’s 45 claims over the historic deposits.
The project is located on open rangelands with excellent infrastructure including grid power and intrastate highway less than 20 kilometres to the west.
Nevada is the “mining capital” of the U.S. with a favourable regulatory environment and availability of equipment and a skilled workforce.
Geology and mineralisation
The Pilot Mountain project area is located within a thick package of bedded marine sediments of the Jurassic Luning Formation, which importantly comprises units of limestone and calcareous sediments which are the host to the tungsten-copper mineralisation.
Intruding these sedimentary rocks are a series of Cretaceous age quartz monzonites and granodiorites which have developed the skarn style mineralisation within the limestone beds.
Mineralisation is therefore effectively stratigraphically controlled where the favourable beds are in contact or close proximity to the causative intrusives. The principal tungsten mineral present is scheelite (CaWO4).
To date, mineralisation has been traced up to 200 metres away from the intrusive rocks and up to 600 metres along strike with widths ranging from 2 metres to 10 metres.
Three advanced prospect areas are known including Desert Scheelite, Gunmetal and Garnet and it is these prospects that were extensively drilled by Union Carbide between 1977 and 1983. A further 11 prospects at various stages of exploration fall within the project area.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/21358/black-fire-minerals-eyes-maiden-tungsten-jorc-resource-at-pilot-mountain-21358.html
Friday, 28 October 2011
Xmet hits near-surface high grade gold at Shaft zone, Duquesne Ottoman
Xmet (CVE:XME) announced Friday positive drill results from the first seven holes as part of the ongoing phase two program at the Duquesne-Ottoman project in Quebec.
Phase two drilling began in early September, with two rigs targeting the expansion of Xmet's current inferred resource at the project of 727,000 ounces of gold, or 853,000 ounces uncut.
The company said drill intersections show good continuity of high grade gold mineralization identified previously by surface trenching during this past summer's exploration program.
Highlights of the results from the Shaft Zone reported today include drill-hole DO-11-38, which intersected 11.66 grams per tonne (g/t) of gold (8.77 g/t Au cut) over 5.10 metres, while hole DO-11-41 returned 7.84 g/t gold over 2.75 metres. True widths are considered to be 80 percent of reported core lengths, Xmet said.
Senior VP of exploration for the company, Bill Yeomans, said: "These latest results demonstrate excellent continuity of mineralization down dip from high grade gold mineralization exposed on surface during the 2011 trenching program.
"Current drilling is targeting potential extensions of shallow mineralization below and to the southwest of exposed Shaft Zone mineralization, which trends at N070 degrees and dips 75 degrees southeast."
A second drill rig is also testing potential extensions of mineralization on the Fox zone, considered to be another high priority target, the company added.
Xmet has completed 2,900 metres of the 7,000 metre phase two drilling program, with additional results to be reported as they become available. Mineralization on the Shaft Zone has been exposed for over 150 metres along strike and the system is open in both directions.
Xmet, through its subsidiary Duquesne-Ottoman Mines, carries out gold resource exploration and development. Under the terms of a mining option agreement between Duquesne-Ottoman Mines and Duparquet Assets, Duquesne-Ottoman Mines can earn an option to purchase 75% of Duparquet Assets, which owns the Duquesne-Ottoman project.
The property consists of 20 claims (commonly referred to as Duquesne West) and 40 claims (commonly referred to as Ottoman) covering an area of 928.6 hectares, located within the townships of Duparquet and Destor in Quebec.
Phase two drilling began in early September, with two rigs targeting the expansion of Xmet's current inferred resource at the project of 727,000 ounces of gold, or 853,000 ounces uncut.
The company said drill intersections show good continuity of high grade gold mineralization identified previously by surface trenching during this past summer's exploration program.
Highlights of the results from the Shaft Zone reported today include drill-hole DO-11-38, which intersected 11.66 grams per tonne (g/t) of gold (8.77 g/t Au cut) over 5.10 metres, while hole DO-11-41 returned 7.84 g/t gold over 2.75 metres. True widths are considered to be 80 percent of reported core lengths, Xmet said.
Senior VP of exploration for the company, Bill Yeomans, said: "These latest results demonstrate excellent continuity of mineralization down dip from high grade gold mineralization exposed on surface during the 2011 trenching program.
"Current drilling is targeting potential extensions of shallow mineralization below and to the southwest of exposed Shaft Zone mineralization, which trends at N070 degrees and dips 75 degrees southeast."
A second drill rig is also testing potential extensions of mineralization on the Fox zone, considered to be another high priority target, the company added.
Xmet has completed 2,900 metres of the 7,000 metre phase two drilling program, with additional results to be reported as they become available. Mineralization on the Shaft Zone has been exposed for over 150 metres along strike and the system is open in both directions.
Xmet, through its subsidiary Duquesne-Ottoman Mines, carries out gold resource exploration and development. Under the terms of a mining option agreement between Duquesne-Ottoman Mines and Duparquet Assets, Duquesne-Ottoman Mines can earn an option to purchase 75% of Duparquet Assets, which owns the Duquesne-Ottoman project.
The property consists of 20 claims (commonly referred to as Duquesne West) and 40 claims (commonly referred to as Ottoman) covering an area of 928.6 hectares, located within the townships of Duparquet and Destor in Quebec.
Great Western Minerals announces min $15 mln private placement financing
Great Western Minerals (TSE:GWG) (OTC:GWMGF) said late Thursday that it plans to launch a brokered private placement financing for a minimum of $15 million in common shares.
The company has hired a syndicate of agents for the offering, co-led by Byron Capital Markets and Cormark Securities.
The pricing of the offered shares will be determined by the company and agents in the context of the market, Great Western said.
Proceeds will be used for the continued development of the company's Steenkampskraal rare earth project in South Africa, as well as for general corporate purposes.
President and CEO, Jim Engdahl, said: "This financing will move GWMG one more important step toward its goal of being a fully integrated rare earth producer. We have carefully considered the various financing options available and feel an equity financing will provide the company with the greatest flexibility in the short term.
"Ensuring we have adequate capital on hand puts our company in a much stronger position as we continue to evaluate non-dilutive financing mechanisms such as joint ventures/off-take agreements and debt instruments."
The company also said it has deferred its planned special meeting of shareholders originally scheduled for November 22. Great Western said it had been contemplating a re-confirmation of shareholder approval for undertaking a share consolidation, initially approved by shareholders in August, but because of the current state of global financial markets, the company has decided that such a plan would not be in the best interests of stakeholders.
Engdahl commented: "Our company evaluated this strategic decision very carefully. A share consolidation can be a catalyst that enables GMWG to fully access a broader capital markets strategy, and on that basis, could be of benefit to shareholders. The current financial market conditions, however, intervened and the company's assessment was that shareholders' interests would not be served by proceeding at this point."
In September, Great Western said an NI 43-101 compliant report from Steenkampskraal is due in the first half of next year, with the facility to begin full operations on both the mining and processing side by the first quarter of 2013. Anticipated total capital costs for the Steenkampskraal facility amount to $60 million.
Demand for rare earths is boooming, as despite being used in relatively small amounts, the metals are necessary to the growing production of energy-efficient green products, mobile electronics and electric vehicles.
Deposits of the metals are not actually rare, but high capital costs, difficult metallurgy, marginal ‘heavy’ rare earths grades, and a lack of people with significant rare earths processing experience are major hurdles to bringing new mines to production, bringing Great Western's advanced Steenkampskraal mine to investors' attenion.
The company has hired a syndicate of agents for the offering, co-led by Byron Capital Markets and Cormark Securities.
The pricing of the offered shares will be determined by the company and agents in the context of the market, Great Western said.
Proceeds will be used for the continued development of the company's Steenkampskraal rare earth project in South Africa, as well as for general corporate purposes.
President and CEO, Jim Engdahl, said: "This financing will move GWMG one more important step toward its goal of being a fully integrated rare earth producer. We have carefully considered the various financing options available and feel an equity financing will provide the company with the greatest flexibility in the short term.
"Ensuring we have adequate capital on hand puts our company in a much stronger position as we continue to evaluate non-dilutive financing mechanisms such as joint ventures/off-take agreements and debt instruments."
The company also said it has deferred its planned special meeting of shareholders originally scheduled for November 22. Great Western said it had been contemplating a re-confirmation of shareholder approval for undertaking a share consolidation, initially approved by shareholders in August, but because of the current state of global financial markets, the company has decided that such a plan would not be in the best interests of stakeholders.
Engdahl commented: "Our company evaluated this strategic decision very carefully. A share consolidation can be a catalyst that enables GMWG to fully access a broader capital markets strategy, and on that basis, could be of benefit to shareholders. The current financial market conditions, however, intervened and the company's assessment was that shareholders' interests would not be served by proceeding at this point."
In September, Great Western said an NI 43-101 compliant report from Steenkampskraal is due in the first half of next year, with the facility to begin full operations on both the mining and processing side by the first quarter of 2013. Anticipated total capital costs for the Steenkampskraal facility amount to $60 million.
Demand for rare earths is boooming, as despite being used in relatively small amounts, the metals are necessary to the growing production of energy-efficient green products, mobile electronics and electric vehicles.
Deposits of the metals are not actually rare, but high capital costs, difficult metallurgy, marginal ‘heavy’ rare earths grades, and a lack of people with significant rare earths processing experience are major hurdles to bringing new mines to production, bringing Great Western's advanced Steenkampskraal mine to investors' attenion.
Gold Resource Corp declares October monthly dividend
Gold Resource Corp (AMEX:GORO) declared Thursday its instituted monthly dividend of five cents per common share for October, payable on November 23 to shareholders of record as of November 11.
The company, which began commercial production in July 2010 from its El Agula operations, is a low-cost gold producer with operations in southern Mexico.
The dividend today represents the sixteenth dividend in as many months of commercial production and the tenth of 2011, and increases the total dividends declared since commencing commercial production to 58 cents per share to date. This means the company has returned over $30 million to its shareholders.
Gold Resource Corp has 100% interest in six potential high-grade gold and silver properties in Mexico’s southern state of Oaxaca.
The company, which began commercial production in July 2010 from its El Agula operations, is a low-cost gold producer with operations in southern Mexico.
The dividend today represents the sixteenth dividend in as many months of commercial production and the tenth of 2011, and increases the total dividends declared since commencing commercial production to 58 cents per share to date. This means the company has returned over $30 million to its shareholders.
Gold Resource Corp has 100% interest in six potential high-grade gold and silver properties in Mexico’s southern state of Oaxaca.
Fission Energy to launch $10 mln bought deal financing
Fission Energy Corp. (CVE:FIS), a junior mineral explorer, reported Thursday that it has agreed to a $10 million bought deal private placement financing, from which proceeds will be used to fund exploration on its Canadian properties.
The miner said a syndicate of underwriters led by Dundee Securities has agreed to buy 11.8 million flow-through shares at a price of $0.85 each.
In connection to the offering, Fission will pay a cash commission fee equal to six percent of the gross proceeds raised and that number of non-transferable broker warrants equal to 6.0% of the number of flow-through shares sold.
Each broker warrant will be exercisable into one common share of Fission for a period of 24 months from the closing date for 85 cents per share.
The offering is slated to close on November 17, and the securities issued are subject to a four month hold period.
The gross proceeds will be used to fund exploration of the company’s Canadian-based projects, it said.
Fission Energy’s exploration focus is Saskatchewan’s Athabasca Basin, with its Waterbury Lake joint venture property located next to takeover target Hathor Exploration's Roughrider deposit. The majority of the company’s properties were acquired by staking in 2003 and 2004.
The miner said a syndicate of underwriters led by Dundee Securities has agreed to buy 11.8 million flow-through shares at a price of $0.85 each.
In connection to the offering, Fission will pay a cash commission fee equal to six percent of the gross proceeds raised and that number of non-transferable broker warrants equal to 6.0% of the number of flow-through shares sold.
Each broker warrant will be exercisable into one common share of Fission for a period of 24 months from the closing date for 85 cents per share.
The offering is slated to close on November 17, and the securities issued are subject to a four month hold period.
The gross proceeds will be used to fund exploration of the company’s Canadian-based projects, it said.
Fission Energy’s exploration focus is Saskatchewan’s Athabasca Basin, with its Waterbury Lake joint venture property located next to takeover target Hathor Exploration's Roughrider deposit. The majority of the company’s properties were acquired by staking in 2003 and 2004.
St Andrew Goldfields bolsters board of directors with new member
St Andrew Goldfields (TSE:SAS) said Thursday it has appointed Catherine A. Gignac to its board of directors.
Gignac most recently held the position of managing director and analyst with NCP Northland Securities. She has covered the mining and minerals sector, including large to small cap, precious and base metal mining companies for over 25 years.
Gignac has previously held positions with several Canadian brokerage firms including UBS Securities, RBC Capital Markets, Merrill Lynch Canada and Wellington West Capital Markets.
Prior to this, she was an exploration geologist with Barrick Gold Corporation (TSE:ABX). Gignac is also a member of the Mineral Resources Analyst Group, the CFA Institute, the Canadian Institute of Mining and Metallurgy and the Prospectors and Developers Association of Canada.
"We are delighted to have Catherine as a member of our Board of Directors", said St Andrew chairman, Louis Gignac.
"She is highly respected and held in high regard within the mining industry. Her expertise in valuation analysis, her knowledge of the capital markets as well as her background in geology will be a great addition to the board."
St Andrew is a gold mining and exploration company with a land package in the Timmins mining district, northeastern Ontario which lies within the Abitibi greenstone belt. The company is focused on developing its assets in the Timmins Camp with three producing mines and exploration activities across 120 kilometres of land straddling the Porcupine-Destor Fault Zone.
Gignac most recently held the position of managing director and analyst with NCP Northland Securities. She has covered the mining and minerals sector, including large to small cap, precious and base metal mining companies for over 25 years.
Gignac has previously held positions with several Canadian brokerage firms including UBS Securities, RBC Capital Markets, Merrill Lynch Canada and Wellington West Capital Markets.
Prior to this, she was an exploration geologist with Barrick Gold Corporation (TSE:ABX). Gignac is also a member of the Mineral Resources Analyst Group, the CFA Institute, the Canadian Institute of Mining and Metallurgy and the Prospectors and Developers Association of Canada.
"We are delighted to have Catherine as a member of our Board of Directors", said St Andrew chairman, Louis Gignac.
"She is highly respected and held in high regard within the mining industry. Her expertise in valuation analysis, her knowledge of the capital markets as well as her background in geology will be a great addition to the board."
St Andrew is a gold mining and exploration company with a land package in the Timmins mining district, northeastern Ontario which lies within the Abitibi greenstone belt. The company is focused on developing its assets in the Timmins Camp with three producing mines and exploration activities across 120 kilometres of land straddling the Porcupine-Destor Fault Zone.
PMI Gold confirms high-grade intersections at Obotan Project
PMI Gold (CVE:PMV, ASX:PVM) Wednesday confirmed the internal continuity of its flagship Obotan project in Ghana, with the occurrence of a higher grade core with further wide and high grade intersections from Nkran.
Obotan, located in south-west Ghana, comprises four known deposits: the larger Nkran deposit, and the smaller satellite deposits at Abore, Adubiaso and Asuadai.
Highlights of assays from an additional 35 diamond drill holes for 7,614 metres showed 3.47 grams per tonne gold (g/t) over 30 metres and 51.17 g/t gold over 8 metres.
The latest data will be incorporated in a resource re-estimate, planned for early 2012.
The upper portion of the Nkran, Abore and Adubiaso deposits were previously mined by Resolute before closing in 2002, after producing a total of 730,000 ounces at an average grade of 2.2 g/t gold, during a period of low gold prices of less than $350 per ounce. Approximately 590,000 ounces of Resolute's total production was from the Nkran pit.
Since acquiring the Obotan project, PMI Gold has completed 225 resource extension, confirmation and in-fill diamond drill holes for 59,084 metres of drilling, with emphasis on the larger Nkran deposit.
Three diamond core rigs are currently active at Obotan on continued resource definition drilling.
PMI Gold said that a pre-feasibility study for Obotan remains on target for completion in December 2011 to be immediately followed by a bankable feasibility study scheduled for completion mid-2012.
These studies have been significantly de-risked by Resolute's successful mining history, which was carried out during a period of substantially lower gold prices and reported few mining and processing issues. The company also had a good correlation between the resource model and grade control drilling, PMI said.
In mid-October, PMI Gold unveiled an NI 43-101/JORC compliant estimate, completed by SRK Consulting, comprising measured resources of 14.67 million tonnes at 2.66 grams per tonne (g/t) of gold for 1.22 million contained ounces; indicated resources of 27.5 million tonnes at 2.32 g/t for 2.00 million gold ounces; plus an additional 17.54 million tonnes of inferred resources grading 2.35 g/t gold, for 1.29 million contained ounces.
Over three quarters of these resources - 2.5 million ounces measured and indicated grading 2.54 g/t gold and 1.02 million ounces inferred grading 2.54 g/t gold - fall within the Nkran deposit.
Obotan, located in south-west Ghana, comprises four known deposits: the larger Nkran deposit, and the smaller satellite deposits at Abore, Adubiaso and Asuadai.
Highlights of assays from an additional 35 diamond drill holes for 7,614 metres showed 3.47 grams per tonne gold (g/t) over 30 metres and 51.17 g/t gold over 8 metres.
The latest data will be incorporated in a resource re-estimate, planned for early 2012.
The upper portion of the Nkran, Abore and Adubiaso deposits were previously mined by Resolute before closing in 2002, after producing a total of 730,000 ounces at an average grade of 2.2 g/t gold, during a period of low gold prices of less than $350 per ounce. Approximately 590,000 ounces of Resolute's total production was from the Nkran pit.
Since acquiring the Obotan project, PMI Gold has completed 225 resource extension, confirmation and in-fill diamond drill holes for 59,084 metres of drilling, with emphasis on the larger Nkran deposit.
Three diamond core rigs are currently active at Obotan on continued resource definition drilling.
PMI Gold said that a pre-feasibility study for Obotan remains on target for completion in December 2011 to be immediately followed by a bankable feasibility study scheduled for completion mid-2012.
These studies have been significantly de-risked by Resolute's successful mining history, which was carried out during a period of substantially lower gold prices and reported few mining and processing issues. The company also had a good correlation between the resource model and grade control drilling, PMI said.
In mid-October, PMI Gold unveiled an NI 43-101/JORC compliant estimate, completed by SRK Consulting, comprising measured resources of 14.67 million tonnes at 2.66 grams per tonne (g/t) of gold for 1.22 million contained ounces; indicated resources of 27.5 million tonnes at 2.32 g/t for 2.00 million gold ounces; plus an additional 17.54 million tonnes of inferred resources grading 2.35 g/t gold, for 1.29 million contained ounces.
Over three quarters of these resources - 2.5 million ounces measured and indicated grading 2.54 g/t gold and 1.02 million ounces inferred grading 2.54 g/t gold - fall within the Nkran deposit.
Gowest Gold signs exploration pact with Mattagami and Matachewan First Nations
Junior bullion company Gowest Gold (CVE:GWA) said on Thursday that it has struck an exploration pact with the Mattagami and Matachewan First Nations to promote an ongoing co-operative discussion between the parties tied to its Frankfield East deposit, in Ontario, and other targets as part of its North Timmins gold project.
The Frankfield East gold project, comprised of 42 claims on 2,444 hectares, currently is estimated to contain 348,000 ounces of gold in the indicated category and 839,900 ounces of gold in the inferred category. The deposit is situated 42 kilometres north east of Timmins in the southwest part of Tully Township.
The exploration agreement establishes the framework for discussions by setting out provisions, which include business, employment and training opportunities activities for members of the two First Nations groups to participate in the exploration around the project.
In addition, Mattagami and Matachewan First Nations, along with Gowest, have agreed to negotiate an impact benefits agreement should the project continue as planned.
Gowest’s chief executive, Greg Romain, said: "The signing of this agreement is a further demonstration of the positive working relationship established with both Mattagami First Nation and Matachewan First Nation, two key stakeholders in our North Timmins gold project."
In a statement, Jason Batise from the Wabun Tribal Council, added: "The signed exploration agreement between the parties shows a respect by this mining interest with regard to First Nations traditional territory and the community understanding as to the needs of the company to develop its property."
Gowest, formerly Gowest Amalgamated Resources, is a gold explorer looking for additional gold targets in its Frankfield land package.
The Frankfield East gold project, comprised of 42 claims on 2,444 hectares, currently is estimated to contain 348,000 ounces of gold in the indicated category and 839,900 ounces of gold in the inferred category. The deposit is situated 42 kilometres north east of Timmins in the southwest part of Tully Township.
The exploration agreement establishes the framework for discussions by setting out provisions, which include business, employment and training opportunities activities for members of the two First Nations groups to participate in the exploration around the project.
In addition, Mattagami and Matachewan First Nations, along with Gowest, have agreed to negotiate an impact benefits agreement should the project continue as planned.
Gowest’s chief executive, Greg Romain, said: "The signing of this agreement is a further demonstration of the positive working relationship established with both Mattagami First Nation and Matachewan First Nation, two key stakeholders in our North Timmins gold project."
In a statement, Jason Batise from the Wabun Tribal Council, added: "The signed exploration agreement between the parties shows a respect by this mining interest with regard to First Nations traditional territory and the community understanding as to the needs of the company to develop its property."
Gowest, formerly Gowest Amalgamated Resources, is a gold explorer looking for additional gold targets in its Frankfield land package.
inShare Pdf Kimber Resources intercepts 4.5 metres of 26.6 g/t gold below Carmen resource
Kimber Resources (AMEX:KBX) (TSE:KBR) announced Thursday results from a further ten holes at its Monterde project in Mexico, intersecting high grade gold and silver over notable widths below the current deposit resource.
Nine of the holes were drilled at the Carmen deposit, with the aim of expanding and upgrading the mineral resources amenable to underground extraction, while one hole was drilled into Veta Minitas, to boost existing high grade resources.
Drill hole MTRD-513 returned 26.6 grams per tonne (g/t) gold and 12.1 g/t silver as well as anomalous base metals over 4.5 metres, demonstrating the continuity of high grade mineralization over a strike length of 125 metres, the company said.
"The intercept of 4.5 metres grading 26.6 g/t gold and 12.1 g/t silver in hole MTRD-513 provides yet another excellent high grade gold-silver intersection in the Carmen structure, at a considerably deeper level than existing mineral resources, bolstering the potential for the definition of a deeper, high grade mineral resource under the currently defined Carmen deposit," said president and CEO Gordon Cummings.
"In addition, the Carmen, Cob and Hilos structures were intercepted at depth at the south end of the Carmen deposit in several holes, indicating potential for additional high grade gold-silver mineralization along strike to the south at deeper levels than previously drilled."
Indeed, hole MTRD-515 returned 2.5 metres grading 2.7 g/t gold and 8.8 g/t silver in the projection of the Carmen structure, and an interval from the hanging wall of the Hilos structure returned 1.5 metres grading 6.1 g/t gold and 127.0 g/t silver.
Drill hole MTC-126 also returned 2.9 metres of 2.6 g/t gold from the Cob structure. Kimber started a drilling program focused on the Cob structure in September, with the aim of exploring the depth and strike potential of the mineralization, as well as upgrading existing resources.
The company said a total of 12 drill holes are planned to test for extensions of the Cob structure, the first batch of which saw notable intersections, including 1.0 metre of 4.3 g/t gold and 5.7 g/t silver in hole MTC-134; and 3.9 metres of 1.8 g/t gold and 41.2 g/t silver in hole MTRD-506.
Meanwhile, drill hole MTRD- 521 was designed to test the strike extent of Cob to the north. The only significant value was 2.7 metres of 1.6 g/t gold and 22.7 g/t silver from a structure between Cob and Hilos, Kimber said.
At Veta Minitas, the first completed hole, LMRD-63, returned 5.5 metres of 1.0 g/t gold and 89.1 g/t silver. Diamond drilling at Veta Minitas will progress over the remainder of this year, with potential for expansion into 2012.
Kimber owns mineral concessions covering in excess of 39,000 hectares in the prospective Sierra Madre gold-silver belt, including the Monterde property, where three gold-silver mineral resources have already been defined. The most advanced of these, the Carmen deposit, has been extensively drilled and has undergone detailed geologic modeling.
Since the last mineral resource estimate, Kimber has drilled over 32,000 metres at Carmen. Because of the high grade discoveries below the current resource, the company said the inclusion of the new results could lead to changes in open pit configuration and require more underground mine planning to optimize project economics.
At the Monterde property, a preliminary economic assessment (PEA), which was updated in June 2011, estimated measured mineral resources of 2.54 million tonnes grading 0.88 g/t gold and 102.4 g/t silver for 71,700 ounces of gold and 8.37 million ounces of silver, at a 0.3% cut-off grade.
The PEA also estimated a 15.5-year mine life, in an open pit-underground production scenario. Total life-of-mine capital costs were projected at US$119.3 million, with total anticipated production of 744,000 ounces of gold and 20.2 million ounces of silver over the mine life.
Nine of the holes were drilled at the Carmen deposit, with the aim of expanding and upgrading the mineral resources amenable to underground extraction, while one hole was drilled into Veta Minitas, to boost existing high grade resources.
Drill hole MTRD-513 returned 26.6 grams per tonne (g/t) gold and 12.1 g/t silver as well as anomalous base metals over 4.5 metres, demonstrating the continuity of high grade mineralization over a strike length of 125 metres, the company said.
"The intercept of 4.5 metres grading 26.6 g/t gold and 12.1 g/t silver in hole MTRD-513 provides yet another excellent high grade gold-silver intersection in the Carmen structure, at a considerably deeper level than existing mineral resources, bolstering the potential for the definition of a deeper, high grade mineral resource under the currently defined Carmen deposit," said president and CEO Gordon Cummings.
"In addition, the Carmen, Cob and Hilos structures were intercepted at depth at the south end of the Carmen deposit in several holes, indicating potential for additional high grade gold-silver mineralization along strike to the south at deeper levels than previously drilled."
Indeed, hole MTRD-515 returned 2.5 metres grading 2.7 g/t gold and 8.8 g/t silver in the projection of the Carmen structure, and an interval from the hanging wall of the Hilos structure returned 1.5 metres grading 6.1 g/t gold and 127.0 g/t silver.
Drill hole MTC-126 also returned 2.9 metres of 2.6 g/t gold from the Cob structure. Kimber started a drilling program focused on the Cob structure in September, with the aim of exploring the depth and strike potential of the mineralization, as well as upgrading existing resources.
The company said a total of 12 drill holes are planned to test for extensions of the Cob structure, the first batch of which saw notable intersections, including 1.0 metre of 4.3 g/t gold and 5.7 g/t silver in hole MTC-134; and 3.9 metres of 1.8 g/t gold and 41.2 g/t silver in hole MTRD-506.
Meanwhile, drill hole MTRD- 521 was designed to test the strike extent of Cob to the north. The only significant value was 2.7 metres of 1.6 g/t gold and 22.7 g/t silver from a structure between Cob and Hilos, Kimber said.
At Veta Minitas, the first completed hole, LMRD-63, returned 5.5 metres of 1.0 g/t gold and 89.1 g/t silver. Diamond drilling at Veta Minitas will progress over the remainder of this year, with potential for expansion into 2012.
Kimber owns mineral concessions covering in excess of 39,000 hectares in the prospective Sierra Madre gold-silver belt, including the Monterde property, where three gold-silver mineral resources have already been defined. The most advanced of these, the Carmen deposit, has been extensively drilled and has undergone detailed geologic modeling.
Since the last mineral resource estimate, Kimber has drilled over 32,000 metres at Carmen. Because of the high grade discoveries below the current resource, the company said the inclusion of the new results could lead to changes in open pit configuration and require more underground mine planning to optimize project economics.
At the Monterde property, a preliminary economic assessment (PEA), which was updated in June 2011, estimated measured mineral resources of 2.54 million tonnes grading 0.88 g/t gold and 102.4 g/t silver for 71,700 ounces of gold and 8.37 million ounces of silver, at a 0.3% cut-off grade.
The PEA also estimated a 15.5-year mine life, in an open pit-underground production scenario. Total life-of-mine capital costs were projected at US$119.3 million, with total anticipated production of 744,000 ounces of gold and 20.2 million ounces of silver over the mine life.
IBC signs agreement with Ceramic Tubular to develop nuclear fuels technologies
IBC Advanced Alloys Corp. (CVE:IB) (OTCQX: IAALF) said Thursday it has signed a memorandum of understanding agreement with Ceramic Tubular Products to jointly develop their respective nuclear fuel technologies.
The two technologies, which will be advanced to address operational and performance issues with light water reactor fuel systems, are complementary, the companies said, and have the ability to deliver "significant" fuel performance improvements and safety benefits.
Ceramic Tubular has been developing an advanced nuclear fuel ceramic cladding, known as silicon carbide triplex cladding, primarily for existing Light Water Reactors (LWRs), which aims to improve the economics of the nuclear industry by increasing safety margins and overall fuel performance.
The company has been awarded multiple grants, including one from the US Department of Energy, to further research, identify and evaluate complementary fuel forms, such as IBC's beryllium-enhanced fuel that could contribute by facilitating the cladding to achieve full potential in commercial service, IBC said.
"We look forward to working with IBC and their advanced nuclear fuel R&D program," said CEO of Ceramic Tubular, Herb Feinroth.
"Our respective technologies not only complement each other from a technological and commercial perspective, but are also very timely, given recent developments in the nuclear industry after the accident of the Fukushima LWR reactors in Japan."
Under the terms of the agreement, IBC and Cermaic will collaborate to develop, test and potentially commercialize their combined respective technologies.
IBC, with Purdue and Texas A&M universities, will assist in analyzing how IBC's beryllium oxide-enhanced responds and performs in LWRs. IBC's beryllium-enhanced fuel is being developed as a high thermal conductivity nuclear fuel that is more efficient and safer, for use in both current and future nuclear power reactors.
IBC's president and CEO, Anthony Dutton, said: "IBC is excited to develop and collaborate with CTP on alternative nuclear fuel technologies that directly address economic performance and industry safety.
"IBC's objective is to commercialize its BeO enhanced fuel and to position itself as an essential part of the nuclear industry's supply chain. Our work with CTP will provide both parties with an opportunity to contribute to improved margins and cost efficiencies for the nuclear industry."
Aside from its prospective beryllium properties, Vancouver, BC-based IBC makes and distributes rare metal alloys that are used in a variety of industries, including nuclear energy, automotive, telecommunications, and a range of industrial application. It has 80 employees, with production facilities in Indiana, Massachusetts, Pennsylvania and Missouri.
IBC announced in February that it had completed the first phase of its research and development project on nuclear fuels - with positive results.
The two technologies, which will be advanced to address operational and performance issues with light water reactor fuel systems, are complementary, the companies said, and have the ability to deliver "significant" fuel performance improvements and safety benefits.
Ceramic Tubular has been developing an advanced nuclear fuel ceramic cladding, known as silicon carbide triplex cladding, primarily for existing Light Water Reactors (LWRs), which aims to improve the economics of the nuclear industry by increasing safety margins and overall fuel performance.
The company has been awarded multiple grants, including one from the US Department of Energy, to further research, identify and evaluate complementary fuel forms, such as IBC's beryllium-enhanced fuel that could contribute by facilitating the cladding to achieve full potential in commercial service, IBC said.
"We look forward to working with IBC and their advanced nuclear fuel R&D program," said CEO of Ceramic Tubular, Herb Feinroth.
"Our respective technologies not only complement each other from a technological and commercial perspective, but are also very timely, given recent developments in the nuclear industry after the accident of the Fukushima LWR reactors in Japan."
Under the terms of the agreement, IBC and Cermaic will collaborate to develop, test and potentially commercialize their combined respective technologies.
IBC, with Purdue and Texas A&M universities, will assist in analyzing how IBC's beryllium oxide-enhanced responds and performs in LWRs. IBC's beryllium-enhanced fuel is being developed as a high thermal conductivity nuclear fuel that is more efficient and safer, for use in both current and future nuclear power reactors.
IBC's president and CEO, Anthony Dutton, said: "IBC is excited to develop and collaborate with CTP on alternative nuclear fuel technologies that directly address economic performance and industry safety.
"IBC's objective is to commercialize its BeO enhanced fuel and to position itself as an essential part of the nuclear industry's supply chain. Our work with CTP will provide both parties with an opportunity to contribute to improved margins and cost efficiencies for the nuclear industry."
Aside from its prospective beryllium properties, Vancouver, BC-based IBC makes and distributes rare metal alloys that are used in a variety of industries, including nuclear energy, automotive, telecommunications, and a range of industrial application. It has 80 employees, with production facilities in Indiana, Massachusetts, Pennsylvania and Missouri.
IBC announced in February that it had completed the first phase of its research and development project on nuclear fuels - with positive results.
Edgewater Exploration completes 100% purchase of Corcoesto, PEA near finished
Edgewater Exploration (CVE:EDW) said Thursday it has completed the 100 percent acquisition of the Corcoesto gold project in Galicia, Spain from a subsidiary of Lundin Mining (TSE:LUN), by making a final cash payment of US$3.0 million.
To acquire a 100% interest in the Corcoesto project, Edgewater paid a total of US$8.0 million over a 12 month period. Lundin Mining will retain a 1.5% net smelter return (NSR) royalty once commercial production from the Corcoesto project begins, subject to Edgewater having the right to purchase 1.0 percent of the NSR royalty at any time for US$1.5 million.
In May, Edgewater announced the updated NI 43-101 compliant resource at Corcoesto, which consists of a measured and indicated resource of 5.78 million tonnes grading 1.74 g/t gold, containing 325,000 ounces at a 0.65 g/t gold cut-off.
The property also hosts an NI 43-101 compliant inferred resource of 20.27 million tonnes grading 1.76 g/t gold containing 1.15 million ounces of gold.
The latest resource will form the basis for a preliminary economic assessment on the project, which is now nearing completion. Edgewater said it expects the results to be announced in the next several weeks.
The economic report will also form the basis for all documentation required by the government of Galicia to initiate the exploitation permitting process, a major step in allowing the company the right to construct and operate a gold mine at Corcoesto. Permit applications are expected to be submitted by the end of 2011, Edgewater said.
"Since acquiring the Corcoesto Gold Project in July, 2010 Edgewater has completed 12,400 metres of infill and step-out diamond drilling and has successfully increased the gold resource by over 400%," said president and CEO, George Salamis.
"Over the past year Edgewater has made great progress at Corcoesto and has assembled a world-class team of gold project builders, environmental managers and engineering consultants, all of whom have a proven track-record to advance Corcoesto into its next phase of growth.
"With the PEA nearing completion and after recently spending some time at Corcoesto I am very encouraged on how the project is advancing both from an economic and mine permitting stand point."
Edgewater now has four diamond drill rigs conducting a program of infill and step-out drilling on the project, with results returning intersections including 16.45 metres of 2.08 g/t gold in hole DDH11W38.
Aside from Corcoesto, Edgewater is developing the Enchi gold project in Ghana, West Africa.
To acquire a 100% interest in the Corcoesto project, Edgewater paid a total of US$8.0 million over a 12 month period. Lundin Mining will retain a 1.5% net smelter return (NSR) royalty once commercial production from the Corcoesto project begins, subject to Edgewater having the right to purchase 1.0 percent of the NSR royalty at any time for US$1.5 million.
In May, Edgewater announced the updated NI 43-101 compliant resource at Corcoesto, which consists of a measured and indicated resource of 5.78 million tonnes grading 1.74 g/t gold, containing 325,000 ounces at a 0.65 g/t gold cut-off.
The property also hosts an NI 43-101 compliant inferred resource of 20.27 million tonnes grading 1.76 g/t gold containing 1.15 million ounces of gold.
The latest resource will form the basis for a preliminary economic assessment on the project, which is now nearing completion. Edgewater said it expects the results to be announced in the next several weeks.
The economic report will also form the basis for all documentation required by the government of Galicia to initiate the exploitation permitting process, a major step in allowing the company the right to construct and operate a gold mine at Corcoesto. Permit applications are expected to be submitted by the end of 2011, Edgewater said.
"Since acquiring the Corcoesto Gold Project in July, 2010 Edgewater has completed 12,400 metres of infill and step-out diamond drilling and has successfully increased the gold resource by over 400%," said president and CEO, George Salamis.
"Over the past year Edgewater has made great progress at Corcoesto and has assembled a world-class team of gold project builders, environmental managers and engineering consultants, all of whom have a proven track-record to advance Corcoesto into its next phase of growth.
"With the PEA nearing completion and after recently spending some time at Corcoesto I am very encouraged on how the project is advancing both from an economic and mine permitting stand point."
Edgewater now has four diamond drill rigs conducting a program of infill and step-out drilling on the project, with results returning intersections including 16.45 metres of 2.08 g/t gold in hole DDH11W38.
Aside from Corcoesto, Edgewater is developing the Enchi gold project in Ghana, West Africa.
WesternZagros sells first oil to market
WesternZagros Resources (CVE:WZR) said Thursday that it has received payment for its first sale of crude oil to the domestic market in the Kurdistan region of Iraq.
First oil production from the Sarqala-1 extended well test was achieved on October 18, and first lifting occurred by truck today.
Shares of the company were up 2.94% to $0.7 as of 12:47pm ET.
"Production start-up marks a new chapter in the company's history, as WesternZagros takes its first steps to become an exploration and production company, rather than a pure exploration company," said CEO Simon Hatfield.
"We are appreciative of the process established by the Kurdistan Regional Government's Ministry of Natural Resources, which requires pre-payment directly to WesternZagros for the contracted volumes. Thanks to the diligence of our in-country operations personnel, the start-up was conducted in a safe, responsible manner and ahead of schedule."
Production started at approximately 2,000 barrels of oil per day (bopd) and is anticipated to increase towards 5,000 bopd in the near future, the company said.
WesternZagros signed an initial sales contract for delivery of approximately 33,500 barrels of oil, priced in the range of US$50 to US$60 per barrel. The company said it plans to use the information from the extended well test to determine future development activities, including increased production potential.
The company also gave updates on two of its exploration wells, the Mil Qasim-1 and the Kurdamir-2 wells. At Mil Qasim-1, the company's third exploration well, the rig is currently drilling ahead at 1,800 metres in the targeted Upper Fars Reservoir, which has a mean estimate of 106 million barrels of oil for gross unrisked prospective resources. Following a delayed spud date, drilling is now proceeding on time and on budget.
At Kurdamir-2, the exploration well spudded on October 25, and is anticipated to be completed by June 2012. The well is being drilled on the flank of the Kurdamir structure approximately two kilometres from the Kurdamir-1 discovery well. The combined mean estimate of the gross unrisked prospective resources for the Oligocene, Eocene and Cretaceous reservoirs being targeted by the Kurdamir-2 well is over 585 million barrels of oil.
WesternZagros is an international natural resources company developing and producing crude oil and natural gas in Iraq. The company, through its wholly-owned subsidiaries, holds two Production Sharing Contracts with the Kurdistan Regional Government in the Kurdistan Region of Iraq.
First oil production from the Sarqala-1 extended well test was achieved on October 18, and first lifting occurred by truck today.
Shares of the company were up 2.94% to $0.7 as of 12:47pm ET.
"Production start-up marks a new chapter in the company's history, as WesternZagros takes its first steps to become an exploration and production company, rather than a pure exploration company," said CEO Simon Hatfield.
"We are appreciative of the process established by the Kurdistan Regional Government's Ministry of Natural Resources, which requires pre-payment directly to WesternZagros for the contracted volumes. Thanks to the diligence of our in-country operations personnel, the start-up was conducted in a safe, responsible manner and ahead of schedule."
Production started at approximately 2,000 barrels of oil per day (bopd) and is anticipated to increase towards 5,000 bopd in the near future, the company said.
WesternZagros signed an initial sales contract for delivery of approximately 33,500 barrels of oil, priced in the range of US$50 to US$60 per barrel. The company said it plans to use the information from the extended well test to determine future development activities, including increased production potential.
The company also gave updates on two of its exploration wells, the Mil Qasim-1 and the Kurdamir-2 wells. At Mil Qasim-1, the company's third exploration well, the rig is currently drilling ahead at 1,800 metres in the targeted Upper Fars Reservoir, which has a mean estimate of 106 million barrels of oil for gross unrisked prospective resources. Following a delayed spud date, drilling is now proceeding on time and on budget.
At Kurdamir-2, the exploration well spudded on October 25, and is anticipated to be completed by June 2012. The well is being drilled on the flank of the Kurdamir structure approximately two kilometres from the Kurdamir-1 discovery well. The combined mean estimate of the gross unrisked prospective resources for the Oligocene, Eocene and Cretaceous reservoirs being targeted by the Kurdamir-2 well is over 585 million barrels of oil.
WesternZagros is an international natural resources company developing and producing crude oil and natural gas in Iraq. The company, through its wholly-owned subsidiaries, holds two Production Sharing Contracts with the Kurdistan Regional Government in the Kurdistan Region of Iraq.
Black Iron to release PEA for Shymanivske project on Monday
Black Iron (TSE:BKI) said Thursday that it plans to release the initial results of the company's preliminary economic assessment (PEA) for its Shymanivske iron ore project in Kryviy Rih, Ukraine prior to market open on October 31.
The company, which completed its initial public offering in March, continues to advance its project and remains on track for anticipated production in fiscal year 2015, it said.
Yesterday, Black Iron annonced that it received a favourable court ruling allowing it to resume drilling activities at its Shymanivske iron ore project.
The Dnepropetrovsk District Administrative Court ruled in favour of the company with respect to a temporary suspension of activity at the site, imposed by the Dnepropetrovsk Region Ecological Inspectorate.
Following the decision, the company will now apply for the required drilling permits and mobilize diamond drill rigs back to site in preparation for its first definition and exploration program, which is aiming to increase the size of the resource at the property to 1.0 to 2.0 billion tonnes at a grade of 28% to 32% iron.
Currently, the Shymanivske project has an existing NI 43-101 compliant measured and indicated mineral resource containing 345 million tonnes grading 32% iron, and an additional inferred mineral resource containing 469 million tonnes grading 31% iron.
The company's new targets are based on known mineralized zones open along strike to the north and at depth, as well as on results from a recently completed ground geophysical program.
The initial definition and exploration drill program will consist of 20,000 metres of drilling, laboratory assays of core, and an updated independent resource estimate by Watts, Griffis and McOuat Limited - due out in the second quarter of 2012.
The drill campaign will start with seven drills once necessary permits are received, and is expected to take five months to complete.
The Shymanivske project is surrounded by five other operating mines including ArcelorMittal's iron ore complex. Black Iron also holds an exploration permit for the adjacent Zelenivske project which it intends to further explore.
The company, which completed its initial public offering in March, continues to advance its project and remains on track for anticipated production in fiscal year 2015, it said.
Yesterday, Black Iron annonced that it received a favourable court ruling allowing it to resume drilling activities at its Shymanivske iron ore project.
The Dnepropetrovsk District Administrative Court ruled in favour of the company with respect to a temporary suspension of activity at the site, imposed by the Dnepropetrovsk Region Ecological Inspectorate.
Following the decision, the company will now apply for the required drilling permits and mobilize diamond drill rigs back to site in preparation for its first definition and exploration program, which is aiming to increase the size of the resource at the property to 1.0 to 2.0 billion tonnes at a grade of 28% to 32% iron.
Currently, the Shymanivske project has an existing NI 43-101 compliant measured and indicated mineral resource containing 345 million tonnes grading 32% iron, and an additional inferred mineral resource containing 469 million tonnes grading 31% iron.
The company's new targets are based on known mineralized zones open along strike to the north and at depth, as well as on results from a recently completed ground geophysical program.
The initial definition and exploration drill program will consist of 20,000 metres of drilling, laboratory assays of core, and an updated independent resource estimate by Watts, Griffis and McOuat Limited - due out in the second quarter of 2012.
The drill campaign will start with seven drills once necessary permits are received, and is expected to take five months to complete.
The Shymanivske project is surrounded by five other operating mines including ArcelorMittal's iron ore complex. Black Iron also holds an exploration permit for the adjacent Zelenivske project which it intends to further explore.
Digital Shelf begins Direct Response TV campaign in Canada for GSP RUSHFIT DVD series
Digital Shelf Space Corp. (CVE:DSS)(OTCQX:DTSRF) said Thursday it has now started its Direct Response TV campaign in Canada for its GSP RUSHFIT DVD home workout fitness series, starring Montreal-based Mixed Martial Arts (MMA), World Welterweight Champion, George St-Pierre.
"Now that we are in over 80% of the potential Canadian retail doors available, we are excited to launch our new two minute, one minute and 30 second Direct Response TV infomercials, to help support our Canadian retail sell through and drive increased sales online at www.gsprushfit.com," said president and CEO, Jeffrey Sharpe.
The infomercials will air on a selection of channels, including Sportsnet One, Fox Sports World and Showcase Action among others, the company said.
Indeed, the GSP RUSHFIT DVD series is already carried in Canada by major retailers including Sears Canada, Zellers, Walmart, Future Shop, National Sports, Sports Experts, Sport Check, Best Buy, and Canadian Tire. It is also carried in the US by The Sports Authority and Academy Sports and Outdoors, with the Direct TV infomercial campaign beginning there earlier this month.
The GSP RUSHFIT DVD series was designed to appeal to those with an interest in MMA and MMA training methods, for a complete and efficient home fitness workout program, with minimal equipment. The DVD series uses various MMA conditioning exercises, intense circuit style training and body weight training for fitness consumers to build muscle, cut weight and get in shape.
In the six months ending June 30, Digital Shelf generated sales of $1.14 million. Second quarter sales rose 3.6% sequentially, to $582,251 over the first quarter. These numbers are expected to improve further in the second half, as the number of stores selling GSP RUSHFIT continues to increase.
Over 25,000 copies of the DVD series have already been sold.
Last week, Digital Shelf said that as of the end of the third quarter, its GSP RUSHFIT DVD workout series has now been placed in over 4,000 stores across Canada, beating the company's own initial target of 3,000 stores, now capturing over 80 percent of the key Canadian retail distribution channels available.
The GSP RUSHFIT DVD series is now represented in more than 90 countries around the world, through Digital Shelf's global distribution agreement with Northern Response.
With the fourth and first quarter being the peak season for selling fitness products of this nature, Digital Shelf said it anticipates "increased awareness, consumer demand and ultimately increased Canadian and International retail distribution for GSP RUSHFIT" as a result of the launch of its Direct Response TV campaign in North America.
Aside from retail stores, the product can also be purchased through the GSP RUSHFIT website (www.gsprushfit.com).
Digital Shelf Space is an independent producer of home entertainment content and online delivery technology provider to digital retailers, content owners and aggregators.
"Now that we are in over 80% of the potential Canadian retail doors available, we are excited to launch our new two minute, one minute and 30 second Direct Response TV infomercials, to help support our Canadian retail sell through and drive increased sales online at www.gsprushfit.com," said president and CEO, Jeffrey Sharpe.
The infomercials will air on a selection of channels, including Sportsnet One, Fox Sports World and Showcase Action among others, the company said.
Indeed, the GSP RUSHFIT DVD series is already carried in Canada by major retailers including Sears Canada, Zellers, Walmart, Future Shop, National Sports, Sports Experts, Sport Check, Best Buy, and Canadian Tire. It is also carried in the US by The Sports Authority and Academy Sports and Outdoors, with the Direct TV infomercial campaign beginning there earlier this month.
The GSP RUSHFIT DVD series was designed to appeal to those with an interest in MMA and MMA training methods, for a complete and efficient home fitness workout program, with minimal equipment. The DVD series uses various MMA conditioning exercises, intense circuit style training and body weight training for fitness consumers to build muscle, cut weight and get in shape.
In the six months ending June 30, Digital Shelf generated sales of $1.14 million. Second quarter sales rose 3.6% sequentially, to $582,251 over the first quarter. These numbers are expected to improve further in the second half, as the number of stores selling GSP RUSHFIT continues to increase.
Over 25,000 copies of the DVD series have already been sold.
Last week, Digital Shelf said that as of the end of the third quarter, its GSP RUSHFIT DVD workout series has now been placed in over 4,000 stores across Canada, beating the company's own initial target of 3,000 stores, now capturing over 80 percent of the key Canadian retail distribution channels available.
The GSP RUSHFIT DVD series is now represented in more than 90 countries around the world, through Digital Shelf's global distribution agreement with Northern Response.
With the fourth and first quarter being the peak season for selling fitness products of this nature, Digital Shelf said it anticipates "increased awareness, consumer demand and ultimately increased Canadian and International retail distribution for GSP RUSHFIT" as a result of the launch of its Direct Response TV campaign in North America.
Aside from retail stores, the product can also be purchased through the GSP RUSHFIT website (www.gsprushfit.com).
Digital Shelf Space is an independent producer of home entertainment content and online delivery technology provider to digital retailers, content owners and aggregators.
Mountain Lake releases latest holes from Leprechaun, shows promise for upcoming estimate
Mountain Lake Resources (CVE:MOA) announced Thursday the latest drill results from the Leprechaun deposit, part of the joint venture Valentine Lake gold property in central Newfoundland, showing good potential for the upcoming new resource estimate.
The company, along with its 50/50 joint venture partner Marathon Gold (TSE:MOZ), received results from eight holes, including 5.99 grams per tonne (g/t) of gold over 10.8 metres in hole VL-11-345, which hosts 28.88 g/t gold over 1.8 metres.
Results are still pending on the final 22 of 145 resource expansion holes completed at the Leprechaun deposit in 2011, with the program now completed, the companies said.
Other notable results released today include 3.69 g/t gold over 12.4 metres, including 39.8 g/t gold over 1.0 metre in hole VL-11-343; and 3.34 g/t gold over 9.0 metres, including 9.52 g/t gold over 2.7 metres in VL-11-344.
“Good lateral continuity between high-grade intercepts within the high-grade shoots of the Leprechaun Deposit continues to be demonstrated and this will have a positive impact on the upcoming new resource estimate," said president and CEO of Mountain Lake, Gary Woods.
Mountain Lake said the new Hanging Wall Zone reported in early October continues to expand with new mineralization intersected in drill holes VL-11-345 with 6.53 g/t gold over 2.6 metres, hole VL-11-347 with 4.41 g/t gold over 2.9 metres, and hole VL-11-343 with 2.15 g/t gold over 2.9 metres.
In addition, significant new Footwall Zone intercepts reported include 5.73 g/t gold over 2.4 metres with 17.09 g/t gold over 0.8 metres in hole VL-11-353, and 3.20 g/t gold over 2.8 metres in hole VL-11-355.
"The remaining 2011 drilling will focus on initial testing of the newly discovered J. Frank Zone and hanging wall mineralization where coarse visible gold has been exposed, as well as the underlying structurally equivalent setting to the Main Zone at the Leprechaun Deposit," added Woods.
Indeed, Mountain Lake said drill rigs have now been moved 1.5 kilometres southwest along strike to conduct initial drill testing of the newly discovered J. Frank Zone, where bedrock grab samples from trenching returned gold values from less tha 5 parts per billion (ppb) gold to up to 581,875 ppb, or 581.88 g/t.
The Valentine Lake Property is a 50/50 joint venture between Marathon Gold and Mountain Lake with the Leprechaun deposit situated at the south-western end of a 23 kilometre long, gold-bearing mineralized corridor. Marathon is the operator of the project, with both partners having jointly funded a $7.1 million resource expansion and exploration program in 2011, which has now been completed.
This year, 24,938 metres were drilled at the Leprechaun deposit, and an updated resource estimate is due out before year-end.
Currently, the deposit has an NI 43-101 compliant measured and indicated resource of 3.28 million tonnes grading 2.62 g/t gold for a total estimated 277,000 ounces of gold, and an associated inferred resource of 4.4 million tonnes grading 2.01 g/t gold for an estimated 285,000 ounces of gold. The 2010 resource was estimated using a 0.5 g/t gold minimum cut-off over a 3 metre minimum width.
The company, along with its 50/50 joint venture partner Marathon Gold (TSE:MOZ), received results from eight holes, including 5.99 grams per tonne (g/t) of gold over 10.8 metres in hole VL-11-345, which hosts 28.88 g/t gold over 1.8 metres.
Results are still pending on the final 22 of 145 resource expansion holes completed at the Leprechaun deposit in 2011, with the program now completed, the companies said.
Other notable results released today include 3.69 g/t gold over 12.4 metres, including 39.8 g/t gold over 1.0 metre in hole VL-11-343; and 3.34 g/t gold over 9.0 metres, including 9.52 g/t gold over 2.7 metres in VL-11-344.
“Good lateral continuity between high-grade intercepts within the high-grade shoots of the Leprechaun Deposit continues to be demonstrated and this will have a positive impact on the upcoming new resource estimate," said president and CEO of Mountain Lake, Gary Woods.
Mountain Lake said the new Hanging Wall Zone reported in early October continues to expand with new mineralization intersected in drill holes VL-11-345 with 6.53 g/t gold over 2.6 metres, hole VL-11-347 with 4.41 g/t gold over 2.9 metres, and hole VL-11-343 with 2.15 g/t gold over 2.9 metres.
In addition, significant new Footwall Zone intercepts reported include 5.73 g/t gold over 2.4 metres with 17.09 g/t gold over 0.8 metres in hole VL-11-353, and 3.20 g/t gold over 2.8 metres in hole VL-11-355.
"The remaining 2011 drilling will focus on initial testing of the newly discovered J. Frank Zone and hanging wall mineralization where coarse visible gold has been exposed, as well as the underlying structurally equivalent setting to the Main Zone at the Leprechaun Deposit," added Woods.
Indeed, Mountain Lake said drill rigs have now been moved 1.5 kilometres southwest along strike to conduct initial drill testing of the newly discovered J. Frank Zone, where bedrock grab samples from trenching returned gold values from less tha 5 parts per billion (ppb) gold to up to 581,875 ppb, or 581.88 g/t.
The Valentine Lake Property is a 50/50 joint venture between Marathon Gold and Mountain Lake with the Leprechaun deposit situated at the south-western end of a 23 kilometre long, gold-bearing mineralized corridor. Marathon is the operator of the project, with both partners having jointly funded a $7.1 million resource expansion and exploration program in 2011, which has now been completed.
This year, 24,938 metres were drilled at the Leprechaun deposit, and an updated resource estimate is due out before year-end.
Currently, the deposit has an NI 43-101 compliant measured and indicated resource of 3.28 million tonnes grading 2.62 g/t gold for a total estimated 277,000 ounces of gold, and an associated inferred resource of 4.4 million tonnes grading 2.01 g/t gold for an estimated 285,000 ounces of gold. The 2010 resource was estimated using a 0.5 g/t gold minimum cut-off over a 3 metre minimum width.
Solitario Exploration: developing a multi-commodity mid-tier mining house
Solitario Exploration and Royalty (TSE:SLR, NYSE AMEX:XPL) continues to advance the Mount Hamilton Gold and Silver Project, located at the southern end of the Battle Mountain gold trend in Nevada. The Company is earning an 80% interest from Ely Gold and Minerals (CVE:ELY) who retain the balance of the minority interest.
The Mount Hamilton Project covers 3,900 acres, and is located in an established mining district which is 40 miles from Ely. The Project currently hosts a NI 43-101 compliant mineable in pit resource at the Centennial Gold Deposit of 17.7 million tonnes at 0.025 oz/t Au, for 444,000 ounces of gold, and 0.147 oz/t Ag, for 2,594,000 ounces of silver.
The Centennial Gold Deposit is a small part of a very significant strike line that extends over a length of 15,000 feet and variable width of up to 3,000 feet, and includes inferred non-compliant resources at Centennial Extension with 6.84 million tonnes at 0.018 oz/t Au, for 122,000 ounces, North East Seligman with 2.62 million tonnes at 0.035 oz/t Au, for 93,000 ounces, Chester with 0.87 million tonnes at 0.031 oz/t Au, for 27,000 ounces, and Fiveway with 0.79 million tonnes at 0.060 oz/t Au, for 48,000 ounces; for a grand total of 11.12 million tonnes at 0.026 oz/t Au, containing 290,000 ounces of gold.
Management recently indicated at the Denver Gold Forum that they believe that the Mount Hamilton Project may develop into a 1 to 2 million ounce gold resource across the entire strike line.
SRK Consulting is completing an independent Feasibility Study, and has proposed a number of improvements to prior plans that include a production increase from 5,000 to 8,500 tonnes per day, which equates to an annualized production rate of 3 million tonnes.
The Centennial Gold Deposit is contained within an open pit that contains a mineralized gold zone that measures 2,000 by 1,000 feet, where 20 foot benches will be excavated utilizing 100 ton capacity haul trucks that will deliver ore to crushers located next to the open pit. The life of mine waste to ore ratio is estimated at approximately 2.5 tons of waste, to 1.0 ton of ore, with waste ore hauled to a storage area constructed nearby the open pit.
The crushed gold ore will be sent down a 3,400 foot long conveyor to a secondary crusher that will reduce the ore to minus ¾ inch, and then delivered it to a heap for leaching. The leachate will be collected and piped to a standard adsorption and desoprtion gold recovery plant for the production of gold and silver, in the form of doré bars. Recovery rates are expected to be around 75% for gold, and 36% for silver.
Capital costs for the entire operation are still being developed as part of the Feasibility Study, but are anticipated to be $70 million, plus-or minus 15%.
Solitario is completing environmental permitting with state and federal agencies, as drilling continues to test extensions of higher grade mineralization along the eastern edge of the Centennial open pit deposit, and gold mineralization at the Chester Prospect, situated approximately one mile to the south of Centennial. The next resource upgrade is expected in 2 to 3 months and is expected to outline additional gold and silver ounces within the Centennial open pit.
The release of the completed Feasibility Study is expected at the end of the of the fourth quarter of 2011, and should establish a timeline for final development plans that lead to mine construction.
Solitario maintains a number of free carried minority interests in projects that are under active development that include a 30% interest in the Bongará Zinc Project in Peru, which is known as one of the world’s largest undeveloped zinc projects. Votorantim Metais, who are the world’s third largest zinc producer and own a zinc smelter based in Peru, are developing Bongará.
Bongará has potential to exceed 20 million tonnes of zinc at 9%, silver at 0.4 oz/t, and additional lead credits. The project is expected to produce 1.5 million tonnes of ore per year, yielding concentrates that contain 108,000 tonnes of zinc, 16,000 tonnes of lead, and 400,000 ounces of silver.
Undergrounding tunneling, development of road access, drilling, positive metallurgical testing and permitting continue towards the start of mine production planned for the first quarter of 2015.
Recovered ore is estimated to carry metal values of $200 per tonne, with zinc and lead valued at $1.00 per pound, and silver at $25.00 per ounce. Capital costs are estimated at $140 million, yielding revenues of $282.8 million per year. Solitario will be free carried through to the start of production, and will reimburse the developer from cash flows generated from mining operations.
Solitario also retains a 30% free carried interest in the Pachuca Real high grade gold and silver project in Mexico, with Buenaventura (NYSE:BVN) holding the majority interest, and currently managing a 16,000 metre drilling and exploration program at Pachuca Norte.
The Pachuca Real Project is located to the north of Mexico City, and includes one of the world’s greatest silver districts that had historical production of 1.46 billion ounces of silver, and 7.0 million ounces of gold. Recent exploration efforts by Buenaventura at Pachuca Norte confirm the presence of widespread mineralization of a similar style to the mineralization that was mined in the historic district.
The Pedra Branca Platinum and Palladium Project, in Brazil, has been joint ventured with Anglo Platinum (LON:AAL), who may earn up to a 65% interest, and will free carry Solitario for the next $10 million in exploration costs, and Solitario’s share of construction funding.
Pedra Branca has absorbed 318 drill holes, and hosts potential for 2 million ounces of platinum and palladium within the proposed Esbarro Open Pit. Anglo is undertaking geologic resource estimates, preliminary metallurgical testing and local mine infrastructure studies, having already spent $7 million. A major geophysical program is also underway to define new drilling targets within the project area.
The Company has an alliance with Newmont Mining (NYSE:NEM), who may earn up to a 75% interest, and is conducting a drilling program at the 100% owned Cerro Azul Gold and Silver Project in Peru. Cerro Azul contains high grade gold and silver veining that has been identified at surface, and covers an area that measures 3,500 metres by 2,000 metres.
Solitario holds $17 million in cash, and is joint venture funded for an additional $12 million over the current year on a number of advanced projects. The Company maintains a long history of minimal share dilution, with 36.6 million shares outstanding, capitalized at $58 million.
Solitario is developing into a mid tier mining house with zinc production forecast from Bongará in 2015, and awaits a development decision on the timeline for mine construction and gold production at Mount Hamilton; and mine development at Pedra Branca. The Company is also developing a pipeline of 100% owned projects for future joint venture funding. A lot of ban
The Mount Hamilton Project covers 3,900 acres, and is located in an established mining district which is 40 miles from Ely. The Project currently hosts a NI 43-101 compliant mineable in pit resource at the Centennial Gold Deposit of 17.7 million tonnes at 0.025 oz/t Au, for 444,000 ounces of gold, and 0.147 oz/t Ag, for 2,594,000 ounces of silver.
The Centennial Gold Deposit is a small part of a very significant strike line that extends over a length of 15,000 feet and variable width of up to 3,000 feet, and includes inferred non-compliant resources at Centennial Extension with 6.84 million tonnes at 0.018 oz/t Au, for 122,000 ounces, North East Seligman with 2.62 million tonnes at 0.035 oz/t Au, for 93,000 ounces, Chester with 0.87 million tonnes at 0.031 oz/t Au, for 27,000 ounces, and Fiveway with 0.79 million tonnes at 0.060 oz/t Au, for 48,000 ounces; for a grand total of 11.12 million tonnes at 0.026 oz/t Au, containing 290,000 ounces of gold.
Management recently indicated at the Denver Gold Forum that they believe that the Mount Hamilton Project may develop into a 1 to 2 million ounce gold resource across the entire strike line.
SRK Consulting is completing an independent Feasibility Study, and has proposed a number of improvements to prior plans that include a production increase from 5,000 to 8,500 tonnes per day, which equates to an annualized production rate of 3 million tonnes.
The Centennial Gold Deposit is contained within an open pit that contains a mineralized gold zone that measures 2,000 by 1,000 feet, where 20 foot benches will be excavated utilizing 100 ton capacity haul trucks that will deliver ore to crushers located next to the open pit. The life of mine waste to ore ratio is estimated at approximately 2.5 tons of waste, to 1.0 ton of ore, with waste ore hauled to a storage area constructed nearby the open pit.
The crushed gold ore will be sent down a 3,400 foot long conveyor to a secondary crusher that will reduce the ore to minus ¾ inch, and then delivered it to a heap for leaching. The leachate will be collected and piped to a standard adsorption and desoprtion gold recovery plant for the production of gold and silver, in the form of doré bars. Recovery rates are expected to be around 75% for gold, and 36% for silver.
Capital costs for the entire operation are still being developed as part of the Feasibility Study, but are anticipated to be $70 million, plus-or minus 15%.
Solitario is completing environmental permitting with state and federal agencies, as drilling continues to test extensions of higher grade mineralization along the eastern edge of the Centennial open pit deposit, and gold mineralization at the Chester Prospect, situated approximately one mile to the south of Centennial. The next resource upgrade is expected in 2 to 3 months and is expected to outline additional gold and silver ounces within the Centennial open pit.
The release of the completed Feasibility Study is expected at the end of the of the fourth quarter of 2011, and should establish a timeline for final development plans that lead to mine construction.
Solitario maintains a number of free carried minority interests in projects that are under active development that include a 30% interest in the Bongará Zinc Project in Peru, which is known as one of the world’s largest undeveloped zinc projects. Votorantim Metais, who are the world’s third largest zinc producer and own a zinc smelter based in Peru, are developing Bongará.
Bongará has potential to exceed 20 million tonnes of zinc at 9%, silver at 0.4 oz/t, and additional lead credits. The project is expected to produce 1.5 million tonnes of ore per year, yielding concentrates that contain 108,000 tonnes of zinc, 16,000 tonnes of lead, and 400,000 ounces of silver.
Undergrounding tunneling, development of road access, drilling, positive metallurgical testing and permitting continue towards the start of mine production planned for the first quarter of 2015.
Recovered ore is estimated to carry metal values of $200 per tonne, with zinc and lead valued at $1.00 per pound, and silver at $25.00 per ounce. Capital costs are estimated at $140 million, yielding revenues of $282.8 million per year. Solitario will be free carried through to the start of production, and will reimburse the developer from cash flows generated from mining operations.
Solitario also retains a 30% free carried interest in the Pachuca Real high grade gold and silver project in Mexico, with Buenaventura (NYSE:BVN) holding the majority interest, and currently managing a 16,000 metre drilling and exploration program at Pachuca Norte.
The Pachuca Real Project is located to the north of Mexico City, and includes one of the world’s greatest silver districts that had historical production of 1.46 billion ounces of silver, and 7.0 million ounces of gold. Recent exploration efforts by Buenaventura at Pachuca Norte confirm the presence of widespread mineralization of a similar style to the mineralization that was mined in the historic district.
The Pedra Branca Platinum and Palladium Project, in Brazil, has been joint ventured with Anglo Platinum (LON:AAL), who may earn up to a 65% interest, and will free carry Solitario for the next $10 million in exploration costs, and Solitario’s share of construction funding.
Pedra Branca has absorbed 318 drill holes, and hosts potential for 2 million ounces of platinum and palladium within the proposed Esbarro Open Pit. Anglo is undertaking geologic resource estimates, preliminary metallurgical testing and local mine infrastructure studies, having already spent $7 million. A major geophysical program is also underway to define new drilling targets within the project area.
The Company has an alliance with Newmont Mining (NYSE:NEM), who may earn up to a 75% interest, and is conducting a drilling program at the 100% owned Cerro Azul Gold and Silver Project in Peru. Cerro Azul contains high grade gold and silver veining that has been identified at surface, and covers an area that measures 3,500 metres by 2,000 metres.
Solitario holds $17 million in cash, and is joint venture funded for an additional $12 million over the current year on a number of advanced projects. The Company maintains a long history of minimal share dilution, with 36.6 million shares outstanding, capitalized at $58 million.
Solitario is developing into a mid tier mining house with zinc production forecast from Bongará in 2015, and awaits a development decision on the timeline for mine construction and gold production at Mount Hamilton; and mine development at Pedra Branca. The Company is also developing a pipeline of 100% owned projects for future joint venture funding. A lot of ban
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