American Mn contract lab receives specialty equipment
American Manganese Inc.’s contract research lab, Kemetco Research, has received the required specialty equipment to continue pilot plant optimization tests for recycling lithium-ion battery material. Following the previously reported optimization results in the June 9, 2020, press release, where pilot plant processing capacity was upgraded from 64 kilograms per day to 160 kg per day after a successful engineering upgrade.Read More
“We believe the specialized pieces of equipment and operational improvements should further increase the recycling process capacity of the lithium-ion battery cathode material,” said Norman Chow, president of Kemetco Research.
“Given the initial and encouraging optimization results, we believe that continued testing is critical to American Manganese’s go-to-market strategy and a major differentiating factor amongst competitors in the growing recycling industry,” said Larry W. Reaugh, president and chief executive officer of American Manganese. “It is important that we go the extra mile on optimization testing, while costs are relatively low, so that we may put our best foot forward when it comes to the commercial recycling plant. We estimate that optimization results could subsequently improve commercial plant design and process capacity while lowering capital expenditures and the annual operating costs.”
It is expected that the plant should be back up and running within the first week of August, 2020.
The importance of recycling lithium-ion battery material for lithium, nickel, cobalt, manganese and aluminum comes during strategic times as the battery metals supply chain faces shortages. Tesla’s Elon Musk has even offered giant contracts to miners able to extract nickel in an efficient and environmentally sustainable manner. American Manganese’s RecycLiCo patented process could recycle lithium-ion battery cathode materials, which includes a high percentage of nickel, such as the popular NMC-811 lithium-ion battery cathode that contains eight parts nickel, one part manganese and one part cobalt.
Canada Nickel drills 357 m of 0.33% Ni at Crawford
Canada Nickel Company Inc. has released the remaining assay results from the East zone and additional results from infill drilling on the Main zone at its Crawford nickel-cobalt sulphide project.Read More
“Our infill drilling program continues to deliver outstanding results. Another drill hole delivered higher grades than our average higher-grade core resource of 0.31 per cent nickel along the entire core length — and most importantly, the hole begins with 249 metres at 0.36 per cent extending 50 metres outside our existing 0.35-per-cent grade shell. These results continue to highlight the potential of the higher-grade core in our Main zone,” said Mark Selby, chair and chief executive officer of Canada Nickel. “We remain on track to complete our preliminary economic assessment (PEA) by year-end. Our resource update, expected by the end of July, has been delayed approximately four weeks due to unusually wet weather earlier in the summer, which delayed our access to the final three drill holes to complete our infill program (the next 200 metres east of hole 42). We now expect to deliver a resource update by the end of August. Drier weather has allowed us to resume drilling next week and once infill drilling is completed, we will also follow up on the previously reported excellent PGM results from hole CR20-32 (three separate intersections including 2.6 g/t over 7.5 metres) and several other prospective geophysical nickel targets on the several kilometres of the Crawford structure which remain untested.”
The Crawford nickel-cobalt sulphide project is located in the heart of the prolific Timmins-Cochrane mining camp in Ontario, Canada, and is adjacent to well-established, major infrastructure associated with over 100 years of regional mining activity.
Infill drilling on the Main zone continued to focus on more clearly defining and upgrading the higher-grade core resource which was previously defined as part of the resource estimate and dips steeply within the ultramafic unit and having a true thickness that varies from 40 to 160 m.
Infill hole CR20-43 on Main zone returned 0.33 per cent nickel, 0.014 per cent cobalt, 0.027 g/t palladium and 0.010 g/t platinum, and 0.29 per cent sulphur over core length of 357 metres from the start of the hole at 45 metres, beginning with 0.36 per cent nickel over 249 metres and included 86 metres grading 0.39 per cent nickel, 0.014 per cent cobalt, 0.03 g/t palladium and 0.01 g/t platinum, and 0.41 per cent sulphur. Assays from the remaining 15 holes and the final three holes to be completed will be released over the next several weeks.
MAIN ZONE NICKEL -- DRILLING RESULTS, CRAWFORD NICKEL-COBALT SULPHIDE PROJECT, ONTARIO DDH ID From To Length Ni Co Pd Pt S Fe (m) (m) (m) (%) (%) (g/t) (g/t) (%) (%) CR20-43 45.0 402.0 357.0 0.33 0.014 0.027 0.010 0.29 6.11 including 45.0 294.0 249.0 0.36 0.014 0.028 0.009 0.37 5.60 including 46.5 132.0 85.5 0.39 0.014 0.030 0.010 0.41 5.23 and 262.5 294.0 31.5 0.42 0.018 0.036 0.010 0.56 6.92 * These holes were drilled at a steep angle of minus 80 degrees almost entirely within the higher-grade core to better determine grade. The estimated true width of this zone has been determined from previous drilling to vary from 40 to 160 m depending on location of the section.
East zone — nickel
The East zone has continued to deliver consistently long intersections of nickel and cobalt intercepts and grades.
EAST ZONE NICKEL -- DRILLING RESULTS, CRAWFORD NICKEL-COBALT SULPHIDE PROJECT, ONTARIO DDH ID From To Length Estimated true width Ni Co Pd Pt S Fe (m) (m) (m) (m) (%) (%) (g/t) (g/t) (%) (%) CR20-38 51.0 189.0 138.0 89.7 0.22 0.012 0.004 0.004 0.04 6.59 including 51.0 117.0 66.0 42.9 0.26 0.011 0.003 0.004 0.03 5.78 CR20-39 36.0 456.0 420.0 273.0 0.24 0.013 0.004 0.005 0.02 6.80 including 36.0 190.5 154.5 100.4 0.27 0.013 0.004 0.004 0.03 6.21 including 36.0 97.5 61.5 40.0 0.30 0.013 0.004 0.005 0.03 5.82 CR20-40 48.0 375.0 327.0 212.6 0.26 0.012 0.003 0.003 0.03 5.87 CR20-41 55.0 280.5 225.5 146.6 0.24 0.013 0.008 0.006 0.04 6.24 including 96.0 249.0 153.0 99.5 0.26 0.013 0.010 0.006 0.03 6.03 including 168.0 226.5 58.5 38.0 0.28 0.012 0.021 0.011 0.03 5.79
Both holes that intersected the northern contact between the peridotite and pyroxenite layer just north of the nickel structure on the East zone again returned consistent palladium-platinum intersections. Hole CR20-38 returned 1.8 g/t palladium-platinum (0.8 g/t Pd, 0.9 g/t Pt) over 4.5 metres (ETW: 2.9 m) within 1.5 g/t palladium-platinum (0.7 g/t Pd, 0.7 g/t Pt) over 6.0 metres (ETW: 3.9 m), from 189 metres downhole. Hole CR20-41 returned 1.8 g/t palladium-platinum (0.9 g/t Pd, 0.9 g/t Pt) over 4.5 metres (ETW: 2.9 m) within 1.5 g/t palladium-platinum (0.7 g/t Pd, 0.8 g/t Pt) over 6.0 metres (ETW: 3.9 m) from 321 metres downhole.
PGM ZONE -- DRILLING RESULTS, CRAWFORD NICKEL-COBALT SULPHIDE PROJECT, ONTARIO DDH ID From To Length Estimated true width Pd-Pt Pd Pt Ni Co (m) (m) (m) (m) (g/t) (g/t) (g/t) (%) (%) CR20-38 189.0 195.0 6.0 3.9 1.5 0.7 0.7 0.03 0.008 including 189.0 193.5 4.5 2.9 1.8 0.8 0.9 0.03 0.008 CR20-41 321.0 327.0 6.0 3.9 1.5 0.7 0.8 0.02 0.008 including 322.5 327.0 4.5 2.9 1.8 0.9 0.9 0.03 0.008
The company expects to begin drilling the final three infill holes next week, with results to be incorporated into an updated resource now expected by the end of August. Once infill drilling is completed, the company will also be able to follow up on the previously reported excellent PGM results from hole CR20-32 (three intervals including 2.6 g/t over core length of 7.5 metres) and several other prospective geophysical targets on the several kilometres of the Crawford structure which remain untested on the western side of the highway.
Assays, quality assurance/quality control, and drilling and assay procedures
William E. MacRae, MSc, PGeo and a qualified person as defined by National Instrument 43-101, is responsible for the continuing drilling and sampling program, including quality assurance (QA) and quality control (QC). The core is collected from the drill in sealed core trays and transported to the core logging facility. The core is marked and sampled at 1.5-metre lengths and cut with a diamond-blade saw. Samples are bagged with QA/QC samples inserted in batches of 35 samples per lot. Samples are transported in secure bags directly from the Canada Nickel core shack to Actlabs Timmins, an ISO/IEC 17025-accredited lab. Analysis for precious metals (gold, platinum and palladium) are completed by fire assay while analysis for nickel, cobalt, sulphur and 17 other elements are performed using a peroxide fusion and ICP-OES (inductively coupled plasma optical emission spectroscopy) analysis. Certified standards and blanks are inserted at a rate of one QA/QC sample per 32 core samples, making a batch of 35 samples that are submitted for analysis.
Qualified person and data verification
Stephen J. Balch, PGeo (Ontario), vice-president, exploration, of Canada Nickel and a qualified person as such term is defined by National Instrument 43-101, has verified the data disclosed in this news release, and has otherwise reviewed and approved the technical information in this news release on behalf of Canada Nickel Company.
Klondike Gold 2020 Lone Star Zone Drilling Results
VANCOUVER, BC / ACCESSWIRE / July 30, 2020 / Klondike Gold Corp. (TSXV:KG)(FRA:LBDP)(OTC PINK:KDKGF) (“Klondike Gold” or the “Company”) is pleased to announce results of Phase 1 diamond drilling at the Lone Star Zone (described in News Releases June 1, 2020 and July 7, 2020) on the Company’s wholly owned 586 square kilometer Klondike District Property, Yukon Territory. Phase 1 drilling tested for consistency in grade of gold mineralization and was designed to constrain the geometry and boundaries of gold mineralization. Information obtained from results will be used to prioritize next phases of drilling scheduled to commence in August.Read More
- The Company has received assays from the Phase 1 diamond drilling program targeting a 125-meter length by 75-meter width at the western end of the known 3.0 kilometer gold-mineralized length of the Lone Star Zone along the Bonanza Fault.
- A total of 13 new holes were drilled at Lone Star on four sections totaling 748.24 meters.
- The drilling was designed to provide 25 by 25-meter hole spacing within a 125-meter by 75-meter area as shown in Figure 1. The Lone Star Zone is gold mineralized from surface over a 60-meter width across the 125-meter length tested in detail, with lateral and vertical grade continuity.
- This Phase 1 program extended gold mineralization 25-meters further southward, expanding the Lone Star Zone in this direction and opening a significant area with gold potential to test further to the east along the 3.0 km length.
- Core logging the Lone Star Zone Phase 1 drill holes documented the Bonanza Fault as a major 60+ meter wide “D3” thrust fault which was re-activated during a 4th deformation event “D4” and was accompanied by gold mineralization. (see NR dated December 10, 2019)
- Assays from Phase 2 and Phase 3 diamond drill holes targeting respectively the Stander Zone and potential Stander Zone extensions are still pending.
Peter Tallman, President and CEO of Klondike Gold stated “Positive results from the Lone Star Zone continue to solidify the Company’s guiding geologic theory of gold mineralization in the Klondike. The grade and consistency of the drill results reported here at Lone Star and other areas allow the Company to move away from exploration and towards resource delineation”.
PHASE 1 LONE STAR ZONE DRILLING RESULTS
Thirteen drill holes at the western end of the Lone Star Zone on four drill ‘Sections’ tested a sub-area where gold mineralization outcrops over a 125 meter by 75-meter area shown in Figure 1. A total of 748.24 meters of core was drilled. All holes had 200-degree azimuth. The collar dip is -85 or -55 degrees angle from surface as noted in the following Drill Summary Table.
Drill Hole Summary Table, Phase 1 Lone Star, 2020
|Hole ID||Easting||Northing||Azimuth||Dip||Depth (m)|
|Total 2020 Phase 1||748.24|
The width of the Lone Star Zone gold mineralization has been extended southward by 25-meters to the south, wider than previously mapped, opening a large area with gold potential to test further to the east along the known 3.0 km mineralized strike length.
Core logging of the Lone Star Zone Phase 1 drill holes documented the Bonanza Fault as a major 60+ meter wide “D3” thrust fault (the “Bonanza Fault”) exhibiting significant progressive alteration (silicification, fuchsite alteration, chlorite-magnetite, and epidote) and deformation (laminar D3 shear fabric, and D4 intense z-folds, kink-foliation fabrics, and extensional quartz fracture veins). Gold mineralization within the Lone Star Zone occurs as disseminations within the laminar shear portions hosted along later kink-foliation planes, and as extensional gold-bearing quartz veinlets within more brittle portions of the deformation zone. The Company’s mapping supports earlier interpretations that the Bonanza Fault cuts a regional recumbent anticline that folds Klondike district rocks and this is an important potential gold-fluid focus and trap for gold-bearing fluids and a high priority exploration target.
Figure 1: Plan Map of location of Phase 1 Drilling at Lone Star Zone.
On Section 1, both LS20-339 and LS20-340 intersected gold mineralization from surface; LS20-339 intersected 0.94 g/t au over 34.0 meters and LS20-340 intersected 5.82 g/t Au over 5.0 meters. Both intersections were unexpected and positive by extending gold mineralization to the south. LS20-337 and LS20-338 intersected typical broad widths of Lone Star Zone with gold mineralization disseminated and as thin sheeted veins which assayed 1.07 g/t Au over 61.1 meters and 0.8 g/t Au over 49.07 meters respectively, starting from surface.
|Section||Hole ID||Dip||From_m||To_m||Au g/t||Interval_m|
Figure 2: Section 1 Schematic with geology and mineralized Lone Star Zone.
On Section 1.5, LS20-341 drilled to confirm the edge of mineralization also unexpectedly intersected gold further southward and assayed 0.53 g/t Au over 14.1 meters typical of Lone Star Zone mineralization. LS17-82 and LS16-58 (reported previously in 2016 and 2017 and included here for reference) each intersected typical Lone Star Zone mineralization north of LS20-341 and assayed 2.41 g/t Au over 41.2 meters and 2.37 g/t Au over 37.0 meters respectively.
|Section||Hole ID||Dip||From_m||To_m||Au g/t||Interval_m|
Figure 3: Section 1.5 Schematic with geology and mineralized Lone Star Zone.
On Section 2, LS20-348 intersected Lone Star Zone gold mineralization from surface assaying 0.69 g/t Au over 42.2 meters. LS20-342, 25 meters in front of LS20-348, also intersected Lone Star Zone gold mineralization from surface assaying 0.71 g/t Au over 38.0 meters. LS20-343, drilled to test for the southern extent of Lone Star Zone, passed out of the Zone at the start of the hole somewhat as predicted.
|Section||Hole ID||Dip||From_m||To_m||Au g/t||Interval_m|
Figure 4: Section 2 Schematic with geology and mineralized Lone Star Zone.
On Section 3, LS20-347 and LS20-340 intersected gold mineralization from surface; LS20-339 intersected 0.94 g/t Au over 34.0 meters and LS20-340 intersected 5.82 g/t Au over 5.0 meters. Both intersections were unexpected and positive by extending gold mineralization to the south. LS20-337 and LS20-338 intersected typical broad widths of Lone Star Zone with gold mineralization which assayed 1.07 g/t Au over 61.1 meters and 0.8 g/t Au over 49.07 meters respectively, starting from surface.
|Section||Hole ID||Dip||From_m||To_m||Au g/t||Interval_m|
Figure 5: Section 3 Schematic with geology and mineralized Lone Star Zone.
Results from the Phase 1 program are anticipated to provide data to allow consideration of a resource volume leading to evaluation as a potential ‘starter open pit’.
Results from Phase 2 diamond drilling program targeting Stander Zone and Phase 3 program targeting Stander Zone extensions in conjunction with mapping, prospecting and trenching programs, are pending.
Figure 6: Location Map of Phase 1 Lone Star Zone 2020 Drilling
Regarding COVID-19, Yukon has remained virus-free since late April and has relaxed civil and travel restrictions, however the Company is continuing protocols and measures that mitigates the risks of COVID-19 infection and transmission to protect our local host community, our contractors and our employees.
All 2020 drill holes referenced in this release produced NTW (5.71cm dia.) drill core. Assay samples from drill core are cut using a diamond saw. Half the core sample interval is bagged, tagged, and sealed; the other half is returned to the core box with a corresponding tag and retained for reference. Two gold reference standards, two blank samples (a coarse and a fine), and a coarse sample duplicate per 100 samples, are routinely inserted as part of Klondike Gold’s quality assurance / quality control (“QA/QC”) program, independent of and additional to the laboratory QA/QC program.
Sample bags are aggregated into rice bags, sealed, and submitted by Klondike Gold personnel to Bureau Veritas Mineral Laboratories (“BV Labs”) preparation facility in Whitehorse, YT with chemical analysis of sample pulps completed in Vancouver, British Columbia. Bureau Veritas Labs is an accredited ISO 9001:2008 full-service commercial laboratory.
At BV Labs each drill core sample is crushed to 70% passing 2 mm size. A 400 g subsample is pulverized to 85% passing 75 microns size (200 mesh)(Code PRP70-500). All samples of 400 g were sieved to 106 microns (140 mesh) for “metallic screen” assaying. The +140 mesh fraction is weighed and assayed for gold by fire assay (“FA”) fusion with a gravimetric finish (Code FS631). A 30 g subsample of the -140 mesh fraction is assayed for gold by fire assay (“FA”) fusion with an atomic absorption (“AA”) finish (Code FA430). All over-limit results in excess of 10 ppm (10 g/t) for both silver and gold are re-assayed using a 30 g subsample and assayed by FA with a gravimetric finish (Code FA530-Au/Ag). Total gold grade is then calculated using a weighted average of the plus and minus fraction assay results.
QUALIFIED PERSONS REVIEW
The technical and scientific information contained within this news release has been reviewed and approved by Ian Perry, P.Geo., Vice-President Exploration of Klondike Gold Corp. and Qualified Person as defined by National Instrument 43-101 policy.
Bonterra Receives Approval and Plans to Increase the Bulk Sample at Moroy
Val-d’Or, Quebec–(Newsfile Corp. – July 30, 2020) – Bonterra Resources Inc. (TSXV: BTR) (OTCQX: BONXF) (FSE: 9BR2) (the “Company” or “Bonterra“) is pleased to announce an increase of 5,000 tonnes to its now 10,000 tonnes bulk sample currently underway at the Moroy Project.Read More
In December 2019, the Ministry of Energy and Natural Resources (“MERN“) gave approval to extract 5,000 tonnes of mineralized material from the Moroy zone. This week, the MERN authorized an additional 5,000 tonnes, bringing the total to 10,000 tonnes to be extracted in the Moroy zone bulk sample program. Bonterra requested this increase following initial long-hole drilling results indicating the mineralized zone was thicker than initially expected.
The bulk sample program at the Moroy project is being undertaken in order to verify the grade continuity within the mineralized structure and reconcile the resource grade to the recovered ounces following processing.
The bulk sample is focused on the M1 shear zone on level 11, 440 metres (“m“) below surface. The plan is to mine the zone from an existing exploration drift starting from the Bachelor shaft 900 m to the north of the Moroy zone. The M1 structure is sub-vertical and the company plans to extract it via a sub-level long-hole stoping method at 15 m intervals.
The company began the bulk sample program in January with long-hole drilling. Drilling was underway when Bonterra ceased all activities due to the advent of the Covid-19 global pandemic. Work officially resumed on July 15th, with blasting set to begin in the next few days. The broken material will be transported on level 11 to the Bachelor shaft. Once at surface, the mineralized material will be processed onsite at the Bachelor mill under the supervision of a third-party engineering firm. The results of the completed bulk sample program are expected to be announced in Q4 2020.
Pascal Hamelin, P.Eng. Interim CEO, has approved the information contained in this release. Mr. Hamelin is a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI-43-101”).
Superior Gold puts itself on the block
Effective at the close of business on July 31, 2020, Christopher Bradbrook will step down as Superior Gold Inc.’s president and chief executive officer. Mr. Bradbrook was the founder of the company and has been president and chief executive officer since its formation in 2017. Mr. Bradbrook will also tender his resignation as a director of the company. All dollar amounts are stated in U.S. dollars.Read More
Tamara Brown, an Independent Director of the Company since 2017, will assume the role of Interim Chief Executive Officer, effective at the close of business on July 31, 2020. Ms. Brown brings over 25 years of mining industry and capital markets experience including in senior leadership roles. Of particular importance is Ms. Brown’s experience with leading corporate development activities and participating in strategic review processes.
Following recent discussions, the Company’s Board of Directors has established a Special Committee and formally initiated a strategic review process to explore and evaluate a broad range of potential alternatives focused on maximizing shareholder value. The alternatives could include, but are not limited to, a potential sale or merger of the Company, a joint venture, the addition of a new strategic shareholder or other various financing alternatives. The Special Committee will also initiate a search to find a permanent CEO; and the Compensation and Nominating Committee will undergo a search for a new independent director to fill the vacancy from Mr. Bradbrook’s departure. The Special Committee will be comprised of Independent Directors Mark Wellings, Chairman and Rene Marion, Audit Committee Chair. In connection with Ms. Brown’s appointment as Interim CEO, the Company will grant an aggregate of 1,000,000 stock options to Ms. Brown at an exercise price to be determined in accordance with the policies of the TSX Venture Exchange and consistent with the Company’s Omnibus Equity Incentive Plan.
Mark Wellings, Chairman of Superior Gold, stated, “The Board is committed to driving value for shareholders and we have implemented the necessary changes in order to conduct a robust and thorough strategic review process. The ultimate value of the Plutonic Gold mine may be achieved by being part of a larger portfolio with a stronger balance sheet to better capitalize the current operations and fully explore its prospective land package. Tamara is well experienced to assist us through this process and in addition, as an Australian citizen, can more easily travel to site during the current COVID-19 (“COVID”) travel restrictions. I would like to thank Chris Bradbrook for all his efforts in founding Superior Gold and building it to this point. We would not have had this valuable gold mining asset if it wasn’t for Chris’ perseverance several years ago when gold assets weren’t fashionable. We wish him well in his future endeavours.”
“I am pleased to step in and assist Superior Gold as we explore all alternatives to maximize value for our shareholders. I believe the Plutonic Gold mine’s existing mineral reserves and resources, established infrastructure and surrounding land package in a world class mining jurisdiction have inherent value well beyond what is currently reflected in our share price. I am committed to leading Superior Gold until we have a clear path towards unlocking that value or appoint a permanent CEO capable of delivering on our vision,” said Tamara Brown, Independent Director and incoming Interim CEO.
There can be no assurance that the strategic review process will result in any transaction. The Company does not intend to comment further unless the Board of Directors of the Company has approved a specific course of action or the Company has determined further disclosure is appropriate.
SECOND QUARTER PRODUCTION DETAILS
Production details are summarized in the table below.
Production in the second quarter of 2020 came in below internal budgets. Although the stope grade remained below the reserve grade, we believe the underground physicals of the operations are performing at the highest level since the Company acquired the asset, where the stope tonnage mined increased by 51% relative to the first quarter of 2020.
As the health and safety of our employees and contractors is of paramount importance, the Company continues to adhere to the measures that have been put in place to mitigate the threat of COVID as described in the press release dated March 19, 2020. To date, there have been no incidences of infection from COVID at either the operations or corporate offices. However, the restrictions of the COVID protocols impacted the Company advancing its open pit plan, which will be deferred pending COVID restrictions easing.
Revised 2020 Guidance
The Company now anticipates production of between 60,000 and 70,000 ounces of gold in 2020. As part of a review of the underground operations, the Company has refocused its efforts on a cost reduction program that targets higher grade stopes while improving productivity. The Company is pleased to report that the initiatives underway are starting to achieve positive results as subsequent to the end of the quarter, the stope grade has increased, averaging over 3 g Au/t to date for the third quarter. Looking beyond 2020, the Company remains committed to executing on its five-year Life of Mine plan and remains encouraged about the longer-term potential of the Plutonic Gold operations where the Company’s most recent Mineral Reserve and Resource estimate (refer to the press release dated July 21, 2020) continues to illustrate a large mineralized system that represents significant future opportunities.
Scientific and technical information in this news release has been reviewed and approved by Keith Boyle, P.Eng., Chief Operating Officer of the Company, who is a “qualified person” as defined by National Instrument 43-101. Mr. Boyle is not independent of the Company within the meaning of NI 43-101.
Impact arranges $6-million private placement
Impact Silver Corp. has entered into an agreement with Red Cloud Securities Inc., as lead agent and sole bookrunner, on its own behalf and, if applicable, on behalf of a syndicate of agents, in connection with a best efforts private placement of units of the company at a price of 95 cents per unit for gross proceeds of up to $6,004,000.Read More
Each Unit will be comprised of one common share of the Company and one half of one Common Share purchase warrant. Each Warrant shall be exercisable to acquire one Common Share at a price of C$1.30 per Warrant Share for a period of 24 months from the closing of the Offering.
The Agents will have an option to offer for sale up to an additional 2,110,000 Units at the Offering Price for additional gross proceeds of up to C$2,004,500, which Agents’ Option is exercisable, in whole or in part, at any time up to 48 hours prior to the closing of the Offering.
The Company intends to use the net proceeds from the Offering for exploration, development and general corporate purposes.
The securities to be issued under the Offering will be offered by way of private placement in each of the provinces of Canada and such other jurisdictions as may be determined by the Company, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws.
The Offering is scheduled to close on or about the week of August 20, 2020, or such date as agreed upon between the Company and the Lead Agent and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Exchange. The Units to be issued under the Offering will have a hold period of four months and one day from Closing. The Company may pay finder’s fees or commissions on a portion of the Offering, subject to compliance with the policies of the Exchange and applicable securities legislation.
Anaconda Mining earns $1.98-million in Q2
Anaconda Mining Inc. has released its financial and operating results for the three and six months ended June 30, 2020. The condensed interim consolidated financial statements and management discussion & analysis documents can be found at http://www.sedar.com and the Company’s website, http://www.anacondamining.com. All dollar amounts are in Canadian dollars unless otherwise noted.Read More
Second Quarter 2020 Highlights
- Anaconda sold 3,712 ounces of gold in Q2 2020, generating metal revenue of $8.4 million at an average realized gold price* of $2,249 (US$1,624) per ounce sold. As at June 30, 2020, the Company had 470 ounces of gold in gold dore inventory, which was subsequently sold in July.
- Operating cash costs per ounce sold* at the Point Rousse Project in Q2 2020 were C$1,372 (US$991), compared to C$1,421 (US$1,062) in the three months ended June 30, 2019. Higher operating cash costs compared to Q1 2020 were the result of lower grade.
- All-in sustaining cash costs per ounce sold* were C$1,828 (US$1,320) for Q2 2020, a 20% improvement over Q2 2019 when the Company sold fewer ounces and had increased development activity on the pushbacks to the Pine Cove pit.
- The Company invested $1.4 million in its growth projects during Q2 2020, including $0.8 million on the Goldboro Gold Project and $0.6 million on exploration programs at the Tilt Cove Project and Point Rousse Project.
- The Point Rousse Complex generated EBITDA* of $3.3 million in Q2 2020 and $7.8 million in the first half of 2020, compared with $0.7 million and $4.5 million for the respective 2019 periods.
- Net income for the three months ended June 30, 2020 was $2.0 million, or $0.01 per share, compared to a net loss of $1.6 million, or $0.01 per share, for the three months ended June 30, 2019. The improved net income for the period was due to a $2.3 million increase in mine operating income and a $1.9 million gain recognized on the spin-out of Novamera Inc.
- The Company initiated a 5,500-metre infill diamond drill program at the Goldboro Gold Project, to convert priority Inferred Mineral Resources, considered proximal to planned development under the ongoing feasibility study, into Indicated Mineral Resources.
- On July 16, 2020, Anaconda announced a non-brokered private placement for up to $5.5 million, which will accelerate its highly prospective exploration and diamond drill programs in Atlantic Canada.
- As at June 30, 2020, the Company had a cash balance of $5.5 million, working capital* of $5.8 million, and additional available liquidity of $0.3 million from an undrawn revolving line of credit facility.
“During the second quarter, amid the ongoing uncertainty related to the COVID-19 pandemic, Anaconda sold 3,712 ounces of gold to generate metal revenue of $8.4 million. The Point Rousse operation has continued to operate uninterrupted in a safe and responsible manner and remains on track to produce and sell between 18,000 and 19,000 ounces of gold in 2020. Due to variability to the block model that has impacted tonnes and grade, we are revising our operating cash costs per ounce sold guidance to between C$1,150 and C$1,250 and expect the record high Canadian gold prices to more than offset the higher costs per ounce sold. We are continuing to advance the development of Argyle and expect to announce further details on the mineral resource and reserve soon, with the potential to accelerate the contribution of ore from Argyle to production. The second quarter also saw the announcement of strong drill results at Stog’er Tight and the initiation of a 5,500 metre drill program at the Goldboro Gold Project. Our $5.5 million of cash combined with our private placement of up to $5.51 million, which is expected to close on July 31, 2020, gives us the financial wherewithal to execute our growth strategy.”
~Kevin Bullock, Chief Executive Officer, Anaconda Mining Inc.
Updated Guidance – Anaconda is maintaining its guidance to produce and sell between 18,000 and 19,000 ounces of gold in 2020. Mill feed in 2020 continues to be primarily from mining in the Pine Cove Pit, with mill feed expected to transition to mining from Argyle in the fourth quarter of 2020. As a result of lower grades experienced in the second quarter (see operational review below) and its resulting impact on operating cash costs per ounce, the Company is revising its operating cash costs per ounce guidance to between C$1,150 and C$1,250 per ounce of gold sold (US$850 – US$950 at an approximate exchange rate of 0.75), an increase from initial guidance of between C$1,050 and C$1,100 per ounce sold (US$775 – US$825 at an approximate exchange rate of 0.75). The impact of higher costs per ounce sold is expected to be more than offset by the significantly higher gold price per ounce, both in US and Canadian dollar terms.
Second Quarter 2020 Review
Operational Overview – Anaconda produced 3,657 ounces of gold in the second quarter of 2020, a 26% increase over Q2 2019, due to better mill availability and resulting higher throughput. Low mill availability in Q2 2019 was due to planned maintenance on the main ball mill and unplanned maintenance for the regrind mill. However, gold production in Q2 was down 37% from the first quarter of 2020 due to lower grade, as the mine operation has observed some variability in grade and tonnage in certain lower levels of the Pine Cove pit. Year-to-date production of 8,654 ounces is consistent with the mine plan and the Company remains on track to meet guidance and produce and sell between 18,000 and 19,000 ounces of gold. In light of recent Argyle drill results and advancement of the related development plan, the Company is exploring opportunities to accelerate the development of Argyle in the second half of 2020.
During the second quarter of 2020, the mine operations produced 111,167 tonnes of ore from the Pine Cove Pit, a 42% increase from Q2 2019, which reflects the higher mining rate at the Pine Cove Pit compared to the lower tonnage profile of mining at Stog’er Tight, which was the main mining area in the prior period. The Company ended the second quarter with an ore stockpile of over 36,000 tonnes. The mine operations achieved a strip ratio of 5.1 waste tonnes to ore tonnes at the Pine Cove Pit, a decrease compared to Q1 2020 as the operation moves into the bottom levels of the Pine Cove Pit.
The Pine Cove Mill processed 118,333 tonnes during Q2 2020, an increase of 22% compared to the second quarter of 2019. Since the challenges experienced in the second quarter of 2019, the mill has operated consistently and effectively, maintaining high levels of mill availability and throughput since. Average grade during Q2 2020 was 1.11 g/t, an 11% decrease over the second quarter of 2019, when mill feed was primarily from the higher-grade Stog’er Tight Mine, and a decrease of 31% from Q1 2020 as the mine experienced variability to the block model in certain lower areas of the pit. The mill achieved an average recovery rate of 86.4%, an increase from 74.7% achieved in Q2 2019 despite the lower grade profile in Q2 2020. The higher throughput and better recovery resulted in gold production of 3,657 ounces, an increase of 26% compared to the second quarter of 2019.
Financial Results – Anaconda sold 3,712 ounces of gold during the second quarter of 2020, generating gold revenue of $8.3 million at an average realized gold price of C$2,249 per ounce (US$1,624).
Operating expenses for the three months ended June 30, 2020 were $5,101,316, compared to $4,337,552 in the three months ended June 30, 2019. Operating expenses for Q2 2020 included mining costs of $2,589,012 and were higher than the comparative period primarily due to the 33% increase in material mined at Pine Cove compared to Stog’er Tight in Q2 2019. Processing costs of $2,466,037 in Q2 2020 were also higher than the comparative period due to the 22% increase in ore tonnes milled during the period. Operating cash costs per ounce sold in the first half of 2020 were C$1,252 (US$918), higher than the upper range of the initial guidance provided for operating cash costs per ounce sold, due to lower than planned grades in the second quarter of 2020. The Company has now revised its operating cash costs per ounce guidance to between C$1,150 and C$1,250 per ounce of gold sold (US$850 – US$950 at an approximate exchange rate of 0.75).
There was no royalty expense for Q2 2020 compared to $145,436 in Q2 2019, as production in the prior year was predominantly from Stog’er Tight, which carries a 3% net smelter royalty. Depletion and depreciation for the three months ended June 30, 2020 was $825,045, consistent with $878,403 recognized in Q2 2019.
Mine operating income for Q2 2020 was $2,429,727, compared to $124,304 in the corresponding period of 2019, with higher comparable operating costs during Q2 2020 being more than offset by higher revenue resulting from significantly higher gold prices.
Corporate administration costs were $771,640 for Q2 2020, a decrease of 28% from Q2 2019, as the Company has streamlined corporate costs over the second half of 2019. The Company also recorded a one-time gain of $1,902,894 associated with the spin-out of Novamera and its narrow vein mining technology.
Finance expense for the quarter was $52,521 for Q2 2020, compared to $156,346 for the three months ended June 30, 2019. Finance costs in the prior year were higher as a result of a gold loan that was delivered into in Q2 2019.
In Q2 2020, the Company recorded a write-down of exploration and evaluation assets of $15,310 due to the termination of an option agreement.
Net comprehensive income for the three months ended June 30, 2020, was $1,981,864, or $0.01 per share, compared to a net loss of $1,638,464, or $0.01 per share. The improvement compared to the three months ended June 30, 2019 was the result of higher mine operating income and the gain of $1,902,894 related to the spin-out of Novamera. These factors were offset by a higher net income tax expense, as the Company recorded a current income tax expense of $235,000 relating to provincial mining tax and a deferred income tax expense of $1,275,000 during the three months ended June 30, 2020 (three months ended June 30, 2019 – recovery of $20,000 and an expense of $54,000, respectively).
Financial Position and Cash Flow Analysis
As at June 30, 2020, the Company had working capital of $5,778,954, which included cash and cash equivalents of $5,534,687. Trade and other payables have decreased since the prior year mainly due to severance payments and timing of payables. Current taxes payable reflect the Newfoundland mining taxes payable for 2019 and an estimate for the taxes for the first half of 2020. Working capital as at period end was impacted by net assets held for sale of $1,437,120 related to the sale of ExploreCo. Subsequent to June 30, 2020, mining taxes of $563,126 relating to 2019 were paid. The current portion of loans includes $1,444,874 outstanding from a $5.0 million term loan with the Royal Bank of Canada (“RBC”), entered into in March 2019. The term loan carries a fixed interest rate of 4.6% and performance guarantee fee by Export Development Canada (“EDC”) of 1.85%, payable quarterly based on the proportional amount outstanding.
Anaconda generated $1,443,864 in operating cash flows during the three months ended June 30, 2020, after accounting for corporate administration costs of $771,640. The Point Rousse Project generated EBITDA of $3,176,968, based on gold sales of 3,712 ounces at an average gold price of C$2,249 per ounce sold and operating cash costs of C$1,372 per ounce sold. The Company’s operating cash flows were impacted by the $850,243 reduction in accounts payable and accrued liabilities during Q2 2020.
During Q2 2020, the Company continued to invest in its key growth projects in Newfoundland and Nova Scotia. The Company spent $1,391,057 on exploration and evaluation assets (adjusted for amounts included in trade payables and accruals at June 30, 2020), primarily on the continued advancement of the Goldboro Gold Project and exploration activities at Tilt Cove, and invested $530,983 into capitalized stripping at the Pine Cove Pit and sustaining capital for the Pine Cove Mill. During the three months ended June 30, 2020, the Company also generated $113,570 in net proceeds from the sale of marketable securities.
Financing activities during the three months ended June 30, 2020 were limited to the repayment of loans and lease obligations, including the RBC term loan. The Company also received $87,500 from the exercise of stock options.
Renaissance Gold to sell South Roberts
Renaissance Gold Inc. has entered into a purchase agreement with a private United States company on its South Roberts project in Eureka county, Nevada. Renaissance Gold will transfer 100-per-cent interest in the South Roberts property in exchange for a 1-per-cent net smelter return royalty interest on any future production from the SR claims and a 0.5-per-cent NSR interest on any future production from the RW claims.Read More
South Roberts Property
The South Roberts Project, Eureka County, Nevada lies on the Battle Mountain-Eureka trend of world class gold deposits, approximately 10 km. to the southeast of McEwen Mining’s Gold Bar Mine (Figure 1). The project targets concealed Carlin-type gold mineralization occurring along major crustal structures and hosted in favorable lower-plate carbonate stratigraphy. The project has been explored in two prior earn-in agreements with McEwen Mining (NYSE;TSX.V:MUX) and S2 Resources Ltd. (ASX:S2R). Both former partners explored the property with geophysics and drilling, and collectively completed 4 reverse circulation and 5 core holes. Drilling encountered collapse breccia textures, decalcification and minor silicification with anomalous arsenic, antimony, mercury and gold in upper plate siliciclastic rocks and at the unconformity between the Mississippian Webb Fm. and the Devonian Devils Gate Limestone, a favorable host horizon at the Rain deposit on the Carlin Trend and the nearby Afgan deposit. These results may represent a distal signature of Carlin-type mineralization on this contact. The most favorable Devonian host stratigraphy has not been adequately drill tested, and provides an opportunity for a world class discovery.
All technical data disclosed in this press release has been verified by RenGold's Qualified Person, Robert Felder, M.Sc. and Certified Professional Geologist (#11012) as recognized by the American Institute of Professional Geologists (AIPG).