Highgold increases Johnson drill program to 15,000 m
Highgold Mining Inc. has increased the scope and budget for the 2020 exploration program at its flagship Johnson Tract gold project in south-central Alaska. The previously announced plan for 7,000 metres to 10,000 metres of diamond drilling utilizing two drill rigs (see Highgold’s news release dated June 30, 2020) has been expanded to a planned minimum of 15,000 metres. A third drill rig has been contracted for arrival on site in the first week of August.Read More
“With the recently announced $12-million bought deal financing, Highgold has positioned itself to maximize the 2020 field season,” commented president and chief executive officer Darwin Green. “The accelerated exploration program, which now includes three drill rigs and 15,000 metres of planned drilling, provides an opportunity to materially advance Johnson Tract this year. With an additional drill rig, we can test multiple target areas at the same time and rapidly follow up on exploration success.”
As a reminder, Highgold has five key target areas in and around the main Johnson Tract deposit. These are: JT deposit expansion, Northeast offset, North trend, Footwall discovery and Southwest extension (for additional detail, please see the company’s website and Highgold’s news release dated June 30, 2020). The expanded program will include additional holes at these five targets as well as plans to test new target areas.
The company has implemented State of Alaska-accepted field measures at the project site to limit the potential exposure and spread of the novel coronavirus (COVID-19) amongst its full-time and part-time staff, contractors, local work force, and Alaskan communities. This includes laboratory-based medical testing of all staff prior to travel to site and government-recommended protocols within the workplace and camp.
Orea raises $2.96-million from financing, share sale
Orea Mining Corp. has raised $2,965,000. The funds were raised in a combination of private placement of Orea units (see news release dated March 31, 2020) and the sale of common shares of a third party publicly traded company held in Orea’s investment portfolio.Read More
On Feb. 13, 2020, Orea arranged a non-brokered private placement for gross proceeds of $2.5-million, of which a first tranche totalling $1.39-million was closed on March 31, 2020. Given the recent favourable recovery of the junior gold sector, Orea was able to monetize third party shares it held, hence reducing the size of the private placement and the need for another tranche, which thereby results in the important effect of minimizing dilution to Orea shareholders. Orea expects to monetize additional third party shares in its investment portfolio in the near future.
The proceeds from the private placement and the third party share sale will be used for general working capital purposes, with a particular emphasis on the identification and acquisition of additional accretive gold project opportunities for Orea and its shareholders.
Excellon increases private placement to $15M
Due to significant demand from existing investors, Excellon Resources Inc. has increased to $15-million the previously announced private placement of secured convertible debentures. The proceeds will be used for (i) repayment of the $6-million (U.S.) bridge loan with Sprott Private Resource Lending II (Collector) LP entered into in connection with the acquisition of Otis Gold Corp., (ii) exploration on the Silver City, Platosa and Kilgore projects, and (iii) general corporate purposes. References to principal amounts and conversion or exercise prices in respect of the financing are in Canadian dollars.Read More
The debentures have a term of 36 months and are convertible into common shares of the company prior to maturity at a conversion price of $1.06 per common share. The debentures shall bear interest at an annual rate of 5.75 per cent, payable in cash semi-annually. Interest on the debentures may alternatively be paid in common shares of the company at the company’s option based on (i) the 10-day volume-weighted average (VWAP) price of the common shares prior to the payment date and (ii) an effective annual rate of 10 per cent. The debentures are secured against the company’s assets in Mexico.
On or after the second anniversary of the date of issue and prior to maturity, the company may accelerate the conversion of the entire issuance of debentures, provided that the 20-day VWAP of the common shares on or after such 24-month anniversary is equal to greater than $2.50, upon the company providing the lender with 30 calendar days prior written notice of such accelerated conversion.
The purchasers of the debentures shall also be entitled to 281 common share purchase warrants per $1,000 principal amount of debentures. Each warrant shall be exercisable at a price of $1.15 for a period of three years from the date of issuance.
The financing is subject to approval by the Toronto Stock Exchange and final documentation and is expected to close in the coming days.
Copper Fox accelerates warrant expiry to Aug. 21
The expiry date for Copper Fox Metals Inc.’s warrants, issued on March 30, 2020, and April 27, 2020, with regard to the company’s recent non-brokered private placement (see news releases dated March 30 and April 27, 2020), has been accelerated to 30 days from today’s date (for a new expiry date of Aug. 21, 2020). The acceleration of the Expiry Date is due to a Trigger Event (as defined in the Warrant certificates), which occurred due to the weighted average price of the common shares being above $0.15 for a period of 20 consecutive trading days, thereby automatically accelerating the Expiry Date of the Warrants. The Trigger event was disclosed in the private placement’s news releases and in the respective Warrant certificates. The Warrants that are unexercised will expire and be of no further value on August 22, 2020.Read More
Exercise Price Number and Dates of Warrants Issued Accelerated Expiry Date
$0.09 24,699,002 issued March 30, 2020 August 21, 2020
$0.09 4,021,667 issued April 27, 2020 August 21, 2020
Amarillo arranges $57.2-million in financings
Amarillo Gold Corp. has entered into an agreement with Mackie Research Capital Corp. (MRCC) for a $35.7-million underwritten private placement and a $21.5-million bought-deal short-form prospectus public offering for total gross proceeds of $57.2-million.Read More
The Company will use the net proceeds from the offerings to build the Posse Gold Mine and advance the Lavras do Sul exploration project, both in Brazil, for working capital, and for general corporate purposes.
“There has been a great deal of interest in Amarillo since we announced the results of our positive feasibility study in June,” said Mike Mutchler, the Company’s Chief Executive Officer. “This financing capitalizes on that interest. We can now start detailed engineering and order long lead items for the Posse Gold Project, as well as plan exploration programs at both our properties for later this year.”
About the private placement
MRCC, as sole underwriter and sole bookrunner, will purchase on an underwritten basis 118,967,000 common shares of the Company at a price of $0.30 per share to be offered under a private placement for gross proceeds of approximately $35.7 million. Eric Sprott and Baccarat Trade Investments Limited (Baccarat) have committed to and subscribed for the whole private placement.
“We are thrilled that Eric Sprott has decided to increase his holdings in Amarillo, and excited to welcome Baccarat as a significant shareholder,” said Mutchler. “We see this as a vote of confidence in our feasibility study results, and that new investors are recognizing the tremendous opportunity of our Posse Gold Project, particularly in this gold market.”
Noront Resources 2,628,618 shares for debt
The TSX Venture Exchange has accepted for filing the company’s proposal to issue 2,628,618 shares to settle outstanding debt for $410,853.
Number of creditors: one creditor
Insider: Resource Capital Fund V LP, $410,853, 2,628,618 shares at 15.63 cents
For further information, please refer to the company’s news release dated July 17, 2020.
Alpha Lithium hires Promethean for IR services
Alpha Lithium Corp. has retained Promethean Marketing Inc. to provide the company with strategic investor relations, general awareness and communications services pursuant to an agreement dated effective Oct. 15, 2019. The Agreement carried a minimum one-month term, and has been renewed by the Company to continue until September 1, 2020.Read More
Promethean is responsible for marketing and dissemination of news and advertisements about the Company to enhance the Company’s exposure among industry stakeholders and investors. Promethean is based in Maryland, USA and provides public disclosure solutions to a number of issuers across a variety of industry segments. To the best of the Company’s knowledge Promethean does not have any equity interest in the securities of the Company, or a right to acquire such an interest.
Under the terms of the Agreement, the Company paid Promethean an initial deposit of US$50,000, and for continuing services on an intermittent basis at an average rate of US$95,232.38 per month for the ongoing period from October 15, 2019 to September 1, 2020.
Blue Lagoon starts phase 1 drilling at Dome Mountain
Blue Lagoon Resources Inc.’s planned phase 1 drilling program has started on the company’s Dome Mountain gold project located a 50-minute drive from Smithers, B.C. The Dome Mountain gold mine project holds a mining permit and Environmental Management Act Permit (EMA) providing for up to 75,000 tonnes production annually and 15 known high-grade gold veins identified, with a significant portion of the property yet to be explored.Read More
Phase 1 drilling will consist of 2,800 metres of HQ diamond drilling from 22 holes located on eight pre-existing pads.
Drill holes drilled from pad 16-8 are not designed to hit the inferred resource. This set-up is planned to intercept high-grade gold mineralization along a north-northeast-south-southwest mineralized structure that was encountered in drill hole DM-16-79 during the 2016 drill campaign.
“It’s been some time since any drilling activity has taken place at the Dome Mountain project so we’re quite excited to pick up where things were left off in 2016, particularly in this robust gold market,” said Rana Vig, president and chief executive officer of Blue Lagoon Resources.
This phase 1 drill program is targeting a portion of the inferred resource as defined by the recently filed preliminary economic assessment (PEA) (PEA National Instrument 43-101 technical report filed on July 15, 2020). Using a cut-off of 3.42 grams per tonne gold and a gold price of $1,450 per troy ounce the PEA outlined an undiluted indicated resource of 81,017 ounces gold at 15.78 g/t gold and an inferred resource of 149,240 ounces gold at 10.09 g/t gold.
The drill collars chosen are located on already completed drill pads and existing road infrastructure. Multiple HQ drill holes will be completed from each pad and are designed to infill along and in an already defined inferred resource domain with planned intercepts designed to be within 30 metres of the area of influence, with as much as 33 per cent of the existing inferred resource to be tested for potential upgrade to indicated.
Bill Cronk, chief geologist for Blue Lagoon, stated: “I am very excited to begin work on the Dome Mountain gold project. This project is very versatile and prospective, having a significant indicated gold resource, a mine permit in place, mine infrastructure development, an inferred resource ready for upgrading to indicated and a very prospective land package with multiple mineralized quartz veins ready for drill target prioritization. Furthermore, this phase 1 drilling program is just the first part of a very comprehensive multiphase plan focused on defining and exploiting the full potential of the Dome Mountain gold project,” he added.
The scientific and technical data contained in this news release was approved by William Cronk, PGeo, a qualified person as defined in NI 43-101 and a consultant to the company.
Fenixoro samples up to 41 g/t Au at Abriaqui
Fenixoro Gold Corp. has released results of its first phase soil sampling program at the Abriaqui project in Antioquia, Colombia. As previously reported, FenixOro has discovered three significant gold mineralization types at Abriaqui. The primary target is a sequence of more than 80 high grade, “Buritica style” mesothermal veins outcropping over 800 vertical meters with areas of intervening lower grade stockwork mineralization. FenixOro has also discovered additional targets: Manto-style replacement mineralization up to 25 meters thick; as well as a zone of gold-mineralized, porphyry-style, potassic alteration.Read More
FenixOro VP Exploration Stuart Moller stated: “These preliminary soil results clearly indicate that we are identifying significant new areas of vein/stockwork potential. These results appear to confirm our hypothesis that the veins in the northwest, while faulted off in the center, continue in a significant northwest-southeast trend within the Abriaqui project boundaries. We are extremely encouraged and are aggressively advancing the next steps of the program.” The remaining soil grids will cover the majority of the project area where they will test for additional veins as well as replacement and porphyry style gold mineralization.
The prospect area is densely vegetated with minimal rock exposure and the expectation has always been that there was additional mineralization to be found. To this end FenixOro has undertaken a ground magnetics program to further map the porphyry-style alteration and has begun a program of project-wide soil sampling. The magnetics program is complete and the Company is awaiting those results. These first results from the soil program are considered highly promising and positively confirm many aspects of the exploration program model.
The initial grid area in the southeast part of the project has several known veins including some with small scale historical workings. The known vein density, as currently mapped, is significantly lower than that in the main vein zone in the northwestern license. A significant fault offsets the two areas (inset, Figure 1). The intent of the soil study is to identify areas of shallowly buried additional vein sets.
To date over 800 samples have been taken out of a planned project-wide total of 1300. The soil program was begun in the relatively undeveloped southeastern vein area, as the main vein area in the northwestern block is much more developed and better understood. 221 samples were taken on a 25 x 100 meter spacing. Of the 178 results received to date 28% carry over 100 parts per billion gold and are considered to be significantly anomalous. Significant anomalies also exist in copper and silver. Seven samples contain over 1 g/t gold with a maximum value of 41 g/t gold.
This 400m high grade trend is interpreted to represent strike extensions of known veins from the northwestern block and new veins parallel to them. Multi-sample anomalies in the 100-1000 ppb gold range on lines 22, 24, and 28 are unexplained. They most likely represent additional high grade veins and/or lower grade interstitial stockwork type mineralization as seen in the main vein zone. Given the widespread nature of the anomalies it is considered likely that the southeastern area will eventually rival the main vein zone in vein density and economic potential.
To date there are no cases of the Covid-19 virus in the Municipality of Abriaqui and FenixOro crews continue to work normally. The Company continues to anticipate that it will receive the final water use permit that will allow for the commencement of its planned 6000 meter drill program in the very near term.Figure 1To view an enhanced version of Figure 1, please visit:https://orders.newsfilecorp.com/files/6188/60350_Soils%20PR%5B2%5D.jpg
Roscan Gold receives $3.38M from warrant exercise
Further to Roscan Gold Corp.’s news release of April 24, 2020, the company has received additional proceeds of $3,382,665 from the exercise of an additional 20,729,185 warrants.Read More
During 2020, the Company has received total proceeds of $5,986,663 from the exercise of warrants. An additional 56.7 million warrants that are in-the-money remain outstanding, which, if exercised, would result in the Company receiving an additional $10.6 million at an average price of approximately $0.19. Of the 56.7 million remaining warrants over 32 million are held by six of our largest and most supportive shareholders.
The use of proceeds will be to fund the Company’s exploration program on its highly prospective project in West Mali.
Nana Sangmuah, President and CEO, stated, “This is very encouraging and clearly highlights Roscan’s well-financed exploration drill program for 2020 and 2021, which should generate ample news flow. The remaining warrants will potentially provide additional funds to maintain our accelerated exploration program over our 20km prospective trend. We look forward to providing additional updates and reporting results from our exploration activities in the coming weeks and months.”
Kincora Copper completes two holes at Trundle
Kincora Copper Ltd. has provided further strong encouragement in the search for the core, ore-grade parts of a cluster of porphyry copper-gold systems at the brownfields project at Trundle on the Macquarie Arc of the Lachlan fold belt in New South Wales, Australia.Read More
- Drilling of the first hole at the Mordialloc target (TRDD002) to be reopened and extended, after assay results, independent and internal expert geological assessment support strong halo indicators of a mineralized porphyry intrusion system.
- TRDD002 intersected favourable alteration and anomalous metal levels between 721 and 790.25 metres (end of hole), and included up to 0.29 per cent copper and 272 parts per million (ppm) molybdenum (1).
- An incomplete second hole at the Mordialloc target (TRDD005, located 150 metres south of TRDD002) has intersected volcanoclastic sandstone and agglomerate at 632 metres, and over 12 metres down hole with improved epidote-chlorite alteration and visual quartz-calcite-pyrite-chalcopyrite mineralization. Drilling to shortly resume after scheduled break.
- Holes TRDD003 and TRDD004 at the Bayleys and Trundle Park targets have been completed at 721.5 metres and 694 metres respectively, within interpreted fertile porphyry settings, assay results and further geological interpretations are pending. Further follow-up holes at Trundle Park and the Mordialloc targets are planned.
- Experienced and successful exploration manager Dr. Paul Cromie appointed to newly created exploration manager Australia as the scope of the continuing drilling program is expanded from existing cash reserves.
John Holliday, technical committee chair, and Peter Leaman, senior vice-president of exploration, commented: “Assay and petrography results for the second hole at the Trundle project strongly supports the presence of a mineralizing porphyry copper-gold system at the Mordialloc target, confirming previously announced visual and internal interpretations. Our initial and ongoing follow-up hole, TRDD005, certainly reinforces this view.
“These results coupled with the nature of the pipe-like, high-grade finger porphyries in the Macquarie Arc, which are vertically extensive but horizontally discrete, suggests TRDD002 ended in an ore-proximal environment. Extension of TRDD002 and additional step-out holes are planned seeking the core of the targeted system, with TRDD005 already providing very encouraging results. Such a vectoring from drill hole indicators was the exploration approach that was the key to the discovery of Cadia-Ridgeway, the majority of the Northparkes deposits and Alkane’s success at Boda.
“TRDD002 is the first hole to search to such depths. The positive indications in these first two holes drilled at Mordialloc see the target remain open in all directions and to depth.”
President and chief executive officer Sam Spring commented: “The first holes of Kincora’s maiden program at Trundle, at the Trundle Park, Mordialloc and Bayley’s targets, are across about 10 kilometres north-south strike. Initial drilling provides encouragement for a cluster of fertile porphyry targets and world-class scale potential, in a brownfield setting to Northparkes, warranting further drilling beyond the initial scope of the previously announced six-hole program.
“Our maiden six-hole program at Trundle commenced during the first COVID-19 wave in Australia. It was designed to test three porphyry targets with two holes at each target and leaving the company well funded.
“The conservative nature of this program was prudent given the onset of COVID-19 and associated market uncertainties, and to ensure the program could be expanded within existing cash reserves.
“Current market conditions have moved significantly in a positive direction for junior explorers with good drilling results. In particular, the gold price is at near eight-year highs, recently moving in positive correlation and lagging a strongly rising copper price; it is a great backdrop to be exploring for gold-rich copper porphyries.
“With very attractive peer group valuations to other Australian-based exploration success stories it is exciting to start expanding the scope of the existing program.
“The addition of Paul Cromie as exploration manager Australia is very well timed in a senior project-based role. Paul is an extremely high calibre and successful leader and explorer. Paul will assist oversee the acceleration of exploration at Trundle and across our district scale 1,732 square km portfolio in the Lachlan fold belt. The Kincora board are very pleased to welcome Paul to the team.”
The Mordialloc target
Previous explorer drilling at the Mordialloc target and the assay results of TRDD002 have returned metal grades comparable with the surrounding parts of the Northparkes deposits and Cadia-Ridgeway within inner- to outer propylitic-style hydrothermal alteration.
Visual results from continuing drilling at TRDD005, the second Kincora hole at the Mordialloc target and follow up located 150 metres south of TRDD002, demonstrate a volcanoclastic sandstone and agglomerate host rock sequence at approximately 632 metres, and over 12 metres down hole with improved epidote-chlorite alteration and visual quartz-calcite-pyrite-chalcopyrite mineralization materially more intense in comparison with TRDD002. From 643 metres, a 0.5-metre interval with abundant pyrite-epidote-chlorite is overprinted by quartz-calcite-pyrite-chalcopyrite-sphalerite-hematite along veins.
Drilling of TRDD005 is continuing and will shortly resume after the current scheduled break.
Hole TRDD005 drill core from 633.8 to 634.10 metres, showing vein-type quartz-calcite-pyrite-chalcopyrite mineralization hosted by an epidote-chlorite altered volcanoclastic sandstone with agglomerate.
Hole TRDD005 drill core from 643 to 643.50 metres, showing vein-type quartz-calcite-pyrite-chalcopyrite-sphalerite-hematite mineralization along a vein cutting abundant pyrite with epidote-chlorite altered volcanoclastic sandstone with agglomerate.
A petrographic review of TRDD002 by Dr. Tony Crawford provides further encouragement to Kincora’s interpretation of having intersected strong halo indicators and of being on the margin of a high-level, preserved porphyry system.
“The well-defined inner- to outer propylitic-style hydrothermal alteration, preservation of hydrothermal magnetite at the base of the hole indicate a passage into typically ore-proximal potassic- or calc-potassic alteration, and the late, probably structurally controlled phyllic overprint at 711.5 m with minor anhydrite, all strongly support the presence of a mineralizing porphyry copper-gold system at the Mordialloc prospect.
“Similar propylitic epidote-chlorite-pyrite-calcite-prehnite alteration haloes surround potassic and calc-potassic alteration zones at Cadia Ridgeway and Northparkes. The coexistence of epidote with prehnite and well-formed hydrothermal titanite in TRDD002 is significant. Prehnite is a common mineral in the outer propylitic zone at Cadia Ridgeway and titanite occurs in the transition zone between potassic and propylitic alteration as well calcite-prehnite-titanite-pyrite being an assemblage documented from the inner propylitic zone at Ridgeway.”
Drill hole TRDD002 was completed to a depth of 790 metres, relative to an original target depth of 700 metres. The hole intersected an intrusive complex of quartz monzodiorite, quartz monzonite and quartz monzonite porphyry bodies intruded into a predominantly calcalkaline volcaniclastic sequence of fragmentals and andesite flows. The lithologies generally display well-developed propylitic alteration throughout consisting of epidote plus pyrite plus chlorite plus or minus prehnite and hematite dusting of feldspars, with local occurrences of chalcopyrite. Alteration intensity increases significantly to the end of the drill hole with higher temperature inner propylitic zone actionolite and magnetite occurring as vein selvedges indicating possible proximity to a mineralized potassic core.
Further drilling in addition to the extension of TRDD002 and continuing TRDD005 is proposed to vector and pursue positive alteration patterns, mineralization and geophysics at the Mordialloc target to aggressively test the targeted finger porphyry setting and potential cluster of associated mineralized systems. Such a vectoring from drill hole indicators was the exploration approach that was the key to the discovery of Cadia-Ridgeway, the majority of the Northparkes deposits and Alkane’s success at Boda.
Further discussion and details on the nature of Macquarie Arc finger or pencil porphyry targets and vectoring from geology and previous success at Cadia-Ridgeway and the included in an accompanying updated corporate presentation.
Exploration manager — Australia appointment
Dr. Paul Cromie, BSc (honours), MSc (economic geology), PhD
Dr. Cromie is an economic geologist with over 25 years of experience in mineral exploration, resource development, project generation, project evaluation, project and regional exploration leadership/management, business development and geoscience research in Australia, Asia, Middle East, Eastern Europe, South America, Caribbean and southeastern Africa, with major, mid-size and junior companies.
Dr. Cromie has extensive technical and exploration leadership experience in testing greenfields, brownfields and in-mine environments, across a broad range of organizations, countries and commodities in gold, copper, zinc-lead-silver, nickel and iron ore.
(1) There are insufficient drilling data to date to demonstrate continuity of mineralized domains and determine the relationship between mineralization widths and intercept lengths, true widths are not known.
The Trundle project
The Trundle project is located 30 km west of the China Molybdenum Company Ltd.-(CMOC)-operated Northparkes copper-gold mill and five economic deposits, in the same Northparkes igneous complex.
Past explorer drilling has been extensive with the completion of 2,208 holes for 61,146 metres but deeper drilling utilizing modern exploration knowledge has been very limited.
Over 92 per cent of prior drilling has been to less than 50-metre depth, a depth that the existing major mines in this belt suggest is just too shallow, with just 11 holes beyond 300 metres (0.5 per cent of holes drilled).
Existing significant drill intersections supports vectoring to very compelling targets for Kincora’s continuing phase 1 drilling program at three existing mineralized systems — Trundle Park, Mordiallic and Bayleys. These systems have not been drilled since industry-leading induced polarization surveys, including HPX’s proprietary Typhoon system, and magnetic modelling were completed.
Quality assurance/quality control procedures
Sampling and QA/QC procedures are carried out by Kincora Copper and its contractors, using the company’s protocols as per industry best practice.
All samples have been assayed at ALS Minerals Laboratories, delivered to Orange, New South Wales, Australia. In addition to internal checks by ALS, the company incorporates a QA/QC sample protocol utilizing prepared standards and blanks for 5 per cent of all assayed samples.
Diamond drilling was undertaken by DrillIt Consulting Pty. Ltd., from Parkes, under the supervision of the company’s field geologists.
All drill core was logged to best industry standard by well-trained geologists and Kincora’s drill core sampling protocol consisted a collection of samples over mineralized sections of the logged core.
Sample interval selection was based on geological controls or mineralization, and/or guidance from the technical committee provided subsequent to daily drill and logging reports. Sample intervals reflect geological boundaries, are cut by the company and samples prepared in line with these geological boundaries, and delivered to ALS.
All reported assay results are performed by ALS and widths reported are drill core lengths. There is insufficient drilling data to date to demonstrate continuity of mineralized domains and determine the relationship between mineralization widths and intercept lengths, true widths are not known. The following assay techniques have been adopted:
- Gold: Au-AA24 (fire assay), reported;
- Multiple elements: ME-ICP61 (four-acid digestion with ICP-AES analysis for 33 elements) and ME-MS61 (four-acid digestion with ICP-AES and ICP-MS analysis for 48 elements), the latter report for TRDD001 and former reported for TRDD002;
- Copper oxides and selected intervals with native copper: ME-ICP44 (Aqua regia digestion with ICP-AES analysis) has been assayed, but not reported;
- Assay results of over 10 g/t gold and/or 1 per cent copper are reassayed.
Queen’s Road to invest $6-million (U.S.) in IsoEnergy
Queen’s Road Capital Investment Ltd. has entered into an agreement with IsoEnergy Ltd. whereby the company will invest $6-million (U.S.) in IsoEnergy by way of convertible debenture.Read More
The convertible debenture will have a 5-year term, carry an 8.5% coupon and will be convertible into IsoEnergy common shares at a share price of C$0.88. The interest rate on the debenture will decrease to 7.5% when IsoEnergy releases a positive independent preliminary economic assessment on the Hurricane Zone at its flagship Larocque East property.
IsoEnergy is a uranium exploration and development company with a portfolio of projects in the Eastern Athabasca Basin in Saskatchewan, Canada. In August 2018, IsoEnergy announced the discovery of high-grade uranium mineralization at Hurricane with their first drill hole on the property. During its recently completed Winter 2020 drill program, IsoEnergy intersected very strong uranium mineralization in several drill holes, the best of which was 8.5m of 33.9% U3O8 in drill hole LE20-34, including 5.0m of 57.1% U3O8.
Warren Gilman, Chairman and CEO of the Company commented: &#8220;The Hurricane Zone at Larocque East is shaping up as the most exciting uranium discovery since NexGen&#8217;s discovery of Arrow in 2014. Queen&#8217;s Road Capital is thrilled to support the next phase of development of the project, led by a tremendous team at IsoEnergy. With the Summer 2020 drill program scheduled to start imminently, we look forward to following the growth and development of the discovery into an economic deposit.&#8221;
Completion of the investment is subject to receipt of all required regulatory approvals, including the TSXV and is expected to occur in August 2020.
Queen’s Road Capital is a leading financier to the global resource sector. The Company is a resource focused investment company, making investments in privately held and publicly traded resource companies. It is intended that the Company will acquire and hold securities for both long-term capital appreciation and short-term gains, with a focus on convertible debt securities and resource projects in advanced development or production located in safe jurisdictions.
Metallic Minerals begins drilling at Keno project
Metallic Minerals Corp. has moved the first of two drills planned to be utilized in carrying out the 2020 exploration program on the company’s 100-per-cent-owned Keno silver project in the high-grade Keno Hill silver district of Canada’s Yukon territory. The 166 square kilometer property is the second largest land position in the district, directly adjoining Alexco Resource Corp., which is set to return to production in Q4 2020. Keno Hill is one of the world's highest-grade silver districts, with nearly 300 million ounces of silver in past production and current M&I resources1,2. The district also benefits from excellent existing infrastructure, including grid power, road access and nearby community services.Read More
Phase one of the 2020 program will utilize a reverse circulation drill to test multi-kilometer-scale anomalies discovered in 2019 at the East Keno target area where surface sampling programs and target refinement work has been ongoing. The second phase will include deployment of a diamond drill, with the aim of expanding known areas of mineralization through step out drilling at the advanced-stage target areas. Metallic Minerals recently released high-grade results from surface and underground sampling and modelling at its West Keno targets (see news release May 26, 2020) and also plans to follow-up on these areas.
Metallic Minerals Chairman & CEO, Greg Johnson, commented: "We are pleased to have launched our full 2020 field programs in the Keno Hill region. Our exploration activities began in June at the Company's earlier-stage McKay and Silver Hill projects, to the north of Keno Hill, and we are now ramping up activities on our flagship Keno Silver project, beginning at the East Keno target area. It is very exciting that this phase one drilling program will see the first holes ever drilled in this under-explored part of the historic Keno Hill silver district and we look forward to testing these newly identified multi-kilometer-scale geophysical and geochemical targets. The phase two drill program will focus on our advanced-stage targets, in the west and central parts of the district, by undertaking step out drilling designed to expand the areas of known mineralization towards development of an inaugural mineral resource."
"We would also like to extend our congratulations to the team at Alexco Resources on their recent announcement of the receipt of their final permit at the Bermingham deposit that will allow for the start of mining. With initial concentrate production from the Keno Hill mill complex and silver sales anticipated to begin in Q4 2020, this is a major development for the local communities and for the Yukon as a whole. Keno Hill is set to become the third mine to start production in the Yukon within the past year, following the restart of the Minto copper mine by Pembridge and commissioning of the Eagle gold mine by Victoria Gold."
All field work will be conducted in compliance with the Company's comprehensive COVID-19 prevention strategy in accordance with Territorial regulatory requirements and recommendations by the First Nation of Na-Cho Nyak Dun.
Exploration by Metallic Minerals at the Keno Silver project continues to systematically build on the Company's 3D geologic database covering the east, central and western portions of the prolific Keno Hill silver district. The project includes eight high-grade, shallow past-producing mines that have yet to be subjected to modern exploration due to previously unconsolidated land ownership. Along the known, historically productive trends in the central and western parts of the district, the Company has advanced three targets to step-out drilling stage and several additional targets to drill-ready status. In addition, recent exploration has refined and expanded 12 new priority multi-kilometer-scale early-stage targets for reconnaissance drilling in the under-explored eastern and western parts of the district where highly elevated silver, lead and zinc in soils and high-grade rock samples have been identified.
Red Cloud Summer Silver Conference
Metallic will be presenting at the 2020 Summer Silver Conference, hosted by Red Cloud Securities, on Tuesday July 28 at 9am PST. To register, click here.
Alpha Lithium arranges $5-million financing
Alpha Lithium Corp. has entered into an agreement with Leede Jones Gable Inc. pursuant to which the underwriter has agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 7,692,310 units at a price of 65 cents per unit for aggregate gross proceeds to Alpha of $5,000,001.50.Read More
Each Unit will consist of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”) of the Company. Each Warrant will be exercisable to acquire one Common Share (a “Warrant Share”) for a period of 24 months following the closing of the Offering (the “Closing”) at an exercise price of $0.80 per Warrant Share.
The Company has agreed to grant the Underwriter an over-allotment option to purchase up to an additional 1,153,846 Units at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the Closing.
The Units will be offered by way of a short form prospectus to be filed in in British Columbia, Alberta and Ontario. The Company intends to use the net proceeds from the Offering to fund mineral exploration expenditures on the Company’s lithium project, the Tolillar Project, in Argentina, as well as general working capital purposes. The Offering is expected to close on August 18, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
Allegiant Gold optionee begins drilling at Bolo
Drilling has commenced at Allegiant Gold Ltd.’s 100-per-cent-owned, Carlin-style, Bolo gold project in Nevada.Read More
The program is being carried-out by New Placer Dome Gold Corp. (formerly Barrian Mining Corp.), (“NGLD”) which can earn an initial 50.01% interest in Bolo by making share payments to ALLEGIANT totaling US$1 million and completing US$4 million in exploration expenditures.
“Bolo is an exciting emerging discovery located in one of the greatest mining jurisdictions in the world. We are thrilled that the initial drill program was expanded and commenced ahead of schedule,” commented Peter Gianulis, CEO of ALLEGIANT.
An initial 12 high-priority RC drill holes totaling 3,500 metres will target the Mine Fault and other mineralized structures that host the South Mine Fault, Uncle Sam and Norther Extension.
According to New Placer Dome:
Drilling at Bolo will focus on testing Carlin-style gold mineralization at depth in the South Mine Fault Zone where gold-silver mineralization remains open and untested along strike and at depth. The 2020 program will expand and step-out on results from the 2019 program (see New Placer Dome news release dated November 7, 2019 available on http://www.sedar.com) including:
84 metres of 1.37 g/t gold in hole BL19-011, and
122 metres of 1.2 g/t gold in hole BL19-04, and
New discovery of 12.2metres of 3.32 g/t gold in hole BL19-04
The 2020 program will also test the continuity of mineralization between the South Mine Fault Zone and Uncle Sam Silver Zone, where a 2019 outcrop sample yielded 3.63 g/t gold with 262 g/t silver.
The combined 2019 and historical RC drilling at Bolo defines a 1.2 kilometer north-south trending corridor of gold-silver mineralization containing the South Mine Fault Zone, Uncle Sam, and Northeast Extension zones. Gold mineralization at Bolo exhibits characteristics of classic Carlin-type mineralization, including strong subvertical structural control in addition to evidence of gold mineralization extending laterally at low angles within favorable silty carbonate units. The relatively untested 500 m strike length South Mine Fault-Uncle Sam segment is particularly prospective and is the main focus of New Placer Dome’s 2020 exploration designed to prove-out these compelling structural and stratigraphic gold targets.
Amerigo produces 12.97M lb Cu in Q2
Amerigo Resources Ltd. has provided its Q2 2020 production results from Minera Valle Central (MVC), the company’s 100-per-cent-owned operation located near Rancagua, Chile.Read More
MVC produced 12.97 million pounds (“M lbs”) of copper at a cash cost of US$1.72/lb per pound, and 0.35 M lbs of molybdenum. In Q2-2020, MVC’s copper production from fresh and Cauquenes tailings increased 20% compared to Q1-2020.
April 2020May 2020 June 2020 Q2-2020 Fresh tailings Tonnes per day 123,650 124,149 110,347 119,435 Operating days 30 31 30 91 Tonnes processed 3,709,5043,848,6293,310,42310,868,556 Copper grade 0.137% 0.140% 0.134% 0.137% Copper recovery 19% 21% 21% 20% Copper produced (million of pounds) 2.12 2.44 2.1 6.66 Cauquenes tailings Tonnes per day 35,323 34,573 37,907 35,875 Operating days 30 31 28 89 Tonnes processed 1,047,1781,064,8521,052,868 3,164,898 Copper grade 0.253% 0.257% 0.262% 0.257% Copper recovery 34% 35% 37% 35% Copper produced (million of pounds) 1.97 2.11 2.23 6.31 Copper produced (M lbs) 4.09 4.55 4.33 12.97 Cash cost (US$/pound copper) 1.79 1.65 1.73 1.72
Copper production results are in line with the Company’s 2020 guidance (refer to our news release of February 19, 2020) where the Company announced a reduction in Cauquenes tonnage processing to approximately 40,000 tonnes per day (“TPD”) through H1-2020 in response to drought conditions then present in central Chile.
In Q2-2020, processing rates averaged 119,435 TPD for fresh tailings and 35,875 TPD for Cauquenes. Copper grade in fresh tailings was slightly higher than expected and recoveries from fresh and Cauquenes tailings also exceeded initial expectations in response to MVC’s initial plant debottlenecking initiatives. Operating days in Q2-2020 were 91/91 for fresh tailings and 89/91 for Cauquenes. Two days of operation were lost in Cauquenes in late June due to strong rainfall.
Q2-2020 cash cost was US$1.72 per pound (“/lb”), US$0.13/lb lower than the Company’s latest cash cost guidance for the second quarter and US$0.22/lb lower than cash cost in Q1-2020.
MVC’s operations continued through Q2-2020 without any significant disruptions due to Covid-19 and MVC’s response to Covid-19 was praised by Chile’s Mining Ministry.
Production results for the most recent five quarters are summarized below:
Q2-2020 Q1-2020 Q4-2019 Q3-2019 Q2-2019 Fresh tailings Tonnes per day 119,435 120,037 114,448 118,296 123,099 Operating days 91 78 92 92 89 Tonnes processed 10,868,5569,306,85410,529,33210,883,20010,940,468 Copper grade 0.137% 0.125% 0.112% 0.110% 0.111% Copper recovery 20.3% 19.9% 17.5% 18.8% 19.1% Copper produced (M lbs) 6.66 5.13 4.57 4.99 5.12 Cauquenes tailings Tonnes per day 35,875 43,763 58,908 58,449 57,746 Operating days 89 67 91 90 89 Tonnes processed 3,164,8982,976,621 5,365,311 5,226,443 5,094,589 Copper grade 0.257% 0.261% 0.273% 0.270% 0.232% Copper recovery 34.9% 33.4% 34.5% 35.7% 31.6% Copper produced (M lbs) 6.31 5.72 11.15 11.10 8.22 Fresh tailings +Cauquenes (M lbs) 12.97 10.85 15.72 16.09 13.34 Slag Processing Tonnes processed - 14,960 93,248 33,885 - Copper grade - 4.6% 5.3% 5.0% - Copper recovery - 80% 79% 81% - Copper produced (M lbs) - 1.23 8.62 3.0 - Copper produced (M lbs) 12.97 12.08 24.34 19.09 13.34 Copper delivered (M lbs) 13.70 11.82 24.07 19.55 1.94 Cash cost(US$/pound copper) 1.72 1.94 1.79 1.56 1.97 Molybdenum produced (M lbs) 0.35 0.19 0.39 0.53 0.25 Molybdenum sold (M lbs) 0.36 0.23 0.41 0.51 0.24
As previously disclosed by the Company, the central region of Chile where MVC is located experienced lower than normal rain in 2018 (total annual rainfall of 291 mm1) and a severe drought in 2019 (total annual rainfall of 124 mm) compared to normal annual rainfall of approximately 410 mm. In 2020, the rain season started in the second half of June, with very heavy rainfall. Rain has continued into July and is expected to continue at least until the end of this month.
The following table was updated to July 15, 2020 and shows cumulative rainfall of 309 mm as of that date, essentially 75% of normal annual rainfall in the region.
1 Each millimeter (“mm”) of measured precipitation is the equivalent of one liter of rainfall per square meter.
Intense rainfall resulted in 2 days of lost production in Cauquenes in June and 10 days of lost production in Cauquenes in July. Despite these lost days, the Company continues to expect to meet production guidance for 2020, as processing rates at Cauquenes have started to increase in response to more water availability at MVC.
Water reserves at Colihues have also increased from a low point of 300,000 cubic meters earlier in 2020 to 8 million cubic meters, a level not seen since February 2018. The positive effect of rainfall in fresh tailings is not yet seen as El Teniente is located at a higher altitude than MVC and will only see the benefits of the 2020 rain season as snow starts to melt in the fourth quarter of the year.
The Company’s production forecast for H2-2020 assumes: (i) increased processing rates from Cauquenes, which have been achieved in July, (ii) lower processing rates from fresh tailings in Q3-2020 associated with reduced activity at El Teniente due to Covid-19, and (iii) the known impact of debottlenecking initiatives implemented to date. Cash costs will step down progressively in Q3-2020 and Q4-2020, primarily due to increased production at Cauquenes. MVC continues to work on additional initiatives to improve plant performance.
Under these assumptions, MVC estimates that it will produce 56 million pounds of copper in 2020 at a cash cost of $1.67/lb. Additional information is included in the following table.
Q1-2020 Q2-2020 Q3-2020 Q4-2020 2020 Actual Actual Est. Est. Fresh tailings Tonnes per day 120,037 119,435 106,804 125,000 117,724 Operating days 78 91 92 92 353 Tonnes processed 9,306,85410,868,5569,826,00011,437,50041,438,910 Copper grade 0.125% 0.137% 0.127% 0.115% 0.126% Copper recovery 19.9% 20.3% 21.0% 22.0% 20.8% Copper produced (M lbs) 5.13 6.66 5.75 6.38 23.92 Cauquenes tailings Tonnes per day 43,763 35,875 50,000 62,500 48,481 Operating days 67 88 86 92 333 Tonnes processed 2,976,621 3,164,8984,300,000 5,750,00016,191,519 Copper grade 0.261% 0.257% 0.243% 0.243% 0.249% Copper recovery 33.4% 34.9% 33.3% 35.0% 34.3% Copper produced (M lbs) 5.72 6.31 7.68 10.79 30.50 Fresh tailings +Cauquenes (M lbs) 10.85 12.97 13.43 17.17 54.42 Slag Processing Tonnes processed 14,960 - - - 14,960 Copper grade 4.6% - - - 4.6% Copper recovery 80% - - - 80% Copper produced (M lbs) 1.23 - - - 1.23 Copper produced (M lbs) 12.08 12.97 13.43 17.17 55.65 Cash cost(US$/pound copper) 1.94 1.72 1.56 1.46 1.67 Molybdenum produced (M lbs) 0.19 0.35 0.43 0.42 1.39
Release of Q2-2020 results on August 12, 2020
The Company will release its Q2-2020 financial results at market open on Wednesday, August 12, 2020.
Investor conference call on August 13, 2020
Amerigo’s quarterly investor conference call will take place on Thursday, August 13, 2020 at 11:00 am Pacific Time/2:00 pm Eastern Time.
To join the call, please dial 1-800-273-9672 (Toll-Free North America) and let the operator know you wish to participate in the Amerigo Resources conference call, if asked please give the confirmation number of 4327621.
The analyst and investment communities are welcome to ask questions of management. Media can attend on a listen-only basis.
Maple Gold Mines arranges $4-million private placement
Maple Gold Mines Ltd. is undertaking a non-brokered hard-dollar financing for aggregate gross proceeds of up to $4-million through the issuance of up to approximately 23.53 million common shares at a price of 17 cents per share.Read More
Maple Gold’s president and chief executive officer, Matthew Hornor, stated: “This financing delivers further flexibility and puts us in position to accelerate exploration and drilling at Douay. I’d like to personally thank the groups participating for their support and we look forward to an active second half of the year in the field.”
The company intends to use the net proceeds from the private placement to continue advancing the Douay gold project and for general corporate purposes.
The offering is subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.