Namibia Critical draws down $100,000 under facility
Namibia Critical Metals Inc. has completed a second drawdown of $100,000 pursuant to a drawdown equity financing facility with Alumina Partners (Ontario) Ltd., an affiliate of New York-based private equity firm Alumina Partners LLC, entered into on Aug. 24, 2020.Read More
The Alumina facility is structured to provide Namibia Critical Metals with timely access to private placement financing as and when required. Under the terms of the investment agreement, the company has the right to draw down on the $5-million facility through equity private placement tranches of up to $250,000 each. Each tranche will be a placement of units, with each unit comprising one common share and one-half of one common share purchase warrant. The units will be priced at a discount of 15 per cent to 25 per cent from the then most recent closing price of the shares on the TSX Venture Exchange at the time of the applicable company drawdown notice to Alumina. The warrants will be issued at a 40-per-cent premium over the market price of the shares and will have a term of 24 months. There are no standby charges or other upfront fees associated with the investment agreement or any penalties for not drawing the full facility. Each tranche of units issued under the investment agreement will be subject to the acceptance of the TSX Venture Exchange, and the securities issued will be subject to the customary four-month hold period. A first tranche drawdown of $100,000 was completed concurrent with the execution of the investment agreement on Aug. 24, 2020.
Pursuant to the second drawdown, the company issued 451,977 units at a price of 22.125 cents per unit for gross proceeds of $100,000. Each warrant in this second tranche is exercisable into one additional common share at a price of 41.3 cents. The proceeds from this second drawdown will be used for general corporate purposes.
Brixton Metals drills four m of 370 g/t Ag at Langis
Brixton Metals Corp. has provided the second round of drill results from its fall/winter exploration program at the Langis mine project located in the Cobalt camp of Ontario. The assays for this round are from 14 holes totalling 1,673.85 metres of NQ size core. Drill holes follow a fan-type array with depths ranging from 55 metres to 176 m across the Shaft 3 trend.Read More
- Hole LM-20-111 intercepted four m of 370 grams per tonne silver from 18 m, including one m of 1,080 g/t Ag and one m of 7 per cent copper, 27.6 g/t Ag and 0.03 per cent cobalt from 113 m;
- LM-20-113 intercepted four m of 366 g/t Ag including one m of 1015 g/t Ag and 0.35 per cent Co;
- Hole LM-20-110 intercepted four m of 196.6 g/t Ag from 3.6 m, including one m of 661 g/t Ag.
Chairman and chief executive officer of Brixton, Gary R. Thompson, stated: “We continue to be pleased with the results from our ongoing 20,000 m drill program at Langis. Drilling continues to generate high-grade near-surface results that support the potential maiden resource.”
LANGIS FALL 2020 DRILLING HIGHLIGHTS NEAR SHAFT 3 Hole ID From (m) To (m) Interval (m) Ag (g/t) Co (%) Cu (%) Ag (g/t * m) LM-20-108 8.10 12.10 4.00 85.35 341.40 including 9.10 11.10 2.00 157.00 314.00 LM-20-109 8.20 12.20 4.00 68.90 275.60 including 8.20 9.20 1.00 17.80 0.16 17.80 including 10.20 11.20 1.00 154.00 154.00 LM-20-110 3.60 7.60 4.00 196.60 786.40 including 4.60 5.60 1.00 661.00 661.00 LM-20-110 15.60 18.60 3.00 25.67 77.00 including 16.60 17.60 1.00 34.40 0.14 34.40 LM-20-111 0.00 3.00 3.00 28.53 85.60 including 0.00 1.00 1.00 47.10 0.11 47.10 LM-20-111 5.00 8.00 3.00 97.47 292.40 including 6.00 7.00 1.00 213.00 0.07 213.00 LM-20-111 18.00 22.00 4.00 370.28 1,481.10 including 19.00 20.00 1.00 326.00 0.38 326.00 including 20.00 21.00 1.00 1,080.00 1,080.00 LM-20-111 113.00 114.00 1.00 27.60 0.03 7.00 27.60 including 113.00 113.50 0.50 39.60 0.05 10.85 19.80 LM-20-112 0.00 2.20 2.20 70.75 155.65 including 1.20 2.20 1.00 42.50 0.61 42.50 LM-20-112 6.20 8.20 2.00 92.90 185.80 LM-20-113 0.00 1.80 1.80 27.20 48.96 including 0.00 0.80 0.80 29.00 0.68 23.20 LM-20-113 3.80 7.80 4.00 366.08 1,464.30 including 4.80 5.80 1.00 423.00 423.00 including 5.80 6.80 1.00 1,015.00 0.35 1,015.00 LM-20-113 16.80 19.80 3.00 33.67 101.00 LM-20-119 0.00 1.80 1.80 109.80 197.64
Intervals represent drilled lengths and the true widths of the silver and cobalt mineralization have not been determined at this time. Results are weighted average grades.
Aurion reviews 2020 accomplishments
As Aurion Resources Ltd. embarks on 2021, we are excited about the prospects for Aurion and our shareholders.Read More
The gold-producing industry appears to be finally emerging from a prolonged period of fiscal discipline, balance sheet repair and asset divestiture. The sector is now rapidly consolidating and moving toward a growth-seeking phase.
With a growing high-grade surface discovery and a dominant land position in an emerging gold camp — we believe that Aurion is ideally positioned.
We look forward to the resumption of normal exploration programs and the chance for major advances on several still-early-stage discoveries
We will be back on our flagship high-grade surface discovery at Aamurusko, after being forced to suspend exploration due to the pandemic. High-grade drilling discoveries on the western and eastern extents of the Aamurusko boulder field suggest that the 600-metre central Gap zone is an obvious and exciting opportunity.
Most of our 2020 exploration was directed at finding the sources of the extensive surface mineralization at Launi. The Hinge zone and the many discrete gold-bearing veins intercepted in drilling suggest that we may be onto a significant gold-bearing system.
B2Gold joint venture
Step-out drilling at Kutuvuoma resulted in a meaningful expansion of the deposit footprint. In 2021 we expect our partner will test for the possible extensions of Rupert’s Ikkari discovery — made adjacent to the property boundary.
This larger property envelope, with Aamurusko at its centre, has many advanced targets and will be subject to scout programs throughout 2021.
Year in review — 2020
An unexpected pivot
Aurion’s 2020 exploration season was focused primarily on making new discoveries. This was not entirely by design. On March 16 Prime Minister Justin Trudeau urged Canadian’s travelling abroad to return home in anticipation of border closure as a result of the COVID-19 global pandemic. In the following weeks, our field crew and the operators of our diamond drill program returned to Canada. In consultation with our crews and in consideration of the unknown health risks associated with travel, we opted not to ask Canadian staff to travel abroad for the balance of the year.
Our excellent Finnish exploration team continued to work under strict health protocols and, as a result, we were able to run a limited program for the remainder of the season.
The most serious consequence of limited staff and equipment was the suspension of helicopter-supported drilling on our flagship high-grade discovery at Aamurusko.
With our primary discovery out of action for the year we opted to run a scout drill program on our Launi property. This program was aimed at finding the sources of the extensive surface footprint of gold mineralization. We gradually expanded this to include regional exploration on Risti and Kaaresselka.
The scout program ultimately provided the initial evidence of discovery at the Launi Hinge zone which was later confirmed with a higher capacity rig.
A pleasant surprise
While progress on our own properties was incremental, we were pleasantly surprised by a major discovery, in close proximity to our joint venture with B2 Gold. Rupert’s Ikkari discovery has multimillion-ounce potential. Since the announcement of step-out drill results, Rupert’s market capitalization has regularly hovered near a billion dollars.
In every exploration season since the discovery of Aamurusko, we have devoted significant capital and human resources to further generative exploration in continuing pursuit of new discoveries. Rupert’s discovery, on our mutual border, is a dramatic illustration of the importance of these programs.
The value of new discoveries in new places
Aurion’s first major stock price appreciation occurred because of evidence provided by rock chip sampling, not drilling. Investments from Kinross and Goldcorp followed — still prior to drilling. Why was this? Quite simply, there is nothing more valuable in exploration than finding new things in new places. The Hemlo gold discovery, the Voisey’s Bay nickel discovery, uranium at Elliot Lake, the freakishly large and rich VMS (volcanogenic massive sulphide) deposit at Kidd Creek. These great discoveries came, seemingly, out of nowhere and caused staking rushes that saw multiple public stocks skyrocket in price.
New and unexpected as they were, none of these discoveries occurred overnight. The first documented evidence of gold at Hemlo was recorded in 1869. The discovery hole drilled by International Corona, No. 76, was spotted in 1981. The site of the great Elliot Lake uranium discovery was first visited by Franc Joubin in 1949. Early sampling of radioactive showings contained minimal uranium. Four years later, while travelling in London, Joubin and Charles Davidson discussed surface leaching of uranium in the Witwatersrand. This provided the critical insight that sent him back to the trenches that would become the western extent of one of the richest uranium discoveries in history. Kidd Creek’s intense geophysical signature was first detected by Texas Gulf Sulfur in 1959. Over the next four years, it was regularly used to calibrate the instrumentation on the survey helicopter. It was the 66th and last anomaly that TGS was willing to drill. Dragon 66, as the hole was code named, discovered the largest base metal deposit of this type ever found in Canada.
Aamurusko is a significant discovery and contains some areas that grade kilograms of gold, but unless we keep exploring, we will never know if it is our best. The Ikkari discovery, so close to our property border, hardens our resolve to continue searching.
When Aurion began acquiring its Finnish projects in 2014, resource stocks were headed into the last and most difficult year of an epic bear market. The climactic capitulation selling happened in late 2014 and was followed by a year of complete investor indifference. On Jan. 20, 2016, the TSX Venture Exchange touched a four-decade low. There was no parade. The consensus forecast was misery for the foreseeable future. By the end of April that year, many quality resource stocks had increased in price by 100 per cent or more. It seemed likely that resource markets had entered a new cycle.
The 2016 recovery caught many off guard. Veteran investors were cautious. Bankers and portfolio managers were slow to return. The first phase of the bull market dissipated in June of 2017 as the thin funds flow from returning investors was exhausted.
In 2019, gold began a major move from $1,100 (U.S.) to over $2,000 (U.S.) and the industry’s true recapitalization had finally begun.
Positive investment funds flow is the primary force behind increasing stock prices. Growing free cash flow from producers is the single most powerful funds flow that the industry can experience. Even though there is more pressure than ever on producers to pay dividends, a substantial portion of that cash will invariably be directed to growth. Perhaps more importantly, resource markets are extremely pro-cyclical. A steady positive funds flow can have a very outsized impact. Generalist investors, attracted to growing free cash flows, crowd out early investors from the producing companies. These same early investors move upstream to the developers and explorers.
Aurion’s Aamurusko discovery in 2017 resulted in the company ending the year with a $140-million market capitalization. We were, at the time, an extreme outlier. Today new discoveries are regularly rewarded with valuations of $500-million to $1-billion.
With a market capitalization of less than $100-million today, we believe that Aurion’s share price has substantial room to appreciate.
Transaction volume in the space increased markedly in 2020.
With the rise of ETFs (exchange-traded funds) and factor-based investment, companies in the sector are now focused on attaining the attributes that result in passive and smart index inclusion. There is a growing multitude of ETFs, smart beta and factor-based funds. Many of these funds screen for portfolio companies using common factors: size, liquidity, reserve growth and earnings growth. The net result is that companies are rewarded for getting bigger faster. Consolidation for size and scale started at the very top of the sector with the merger of Barrick and Randgold and later that of Newmont and Goldcorp. Roll-up strategies are blossoming everywhere — Endeavour Resources in West Africa, Equinox Gold in the Americas, and Kirkland Lake Gold in Canada and Australia. Lowball bids on distressed companies now stimulate vicious competition and result in acquisition prices that are a multiple of the initial offer (Guyana Goldfields, Cardinal Resources). The early focus has been on operating or near-production assets but activity is already trending toward earlier stage projects.
Transaction size is also growing, but the multibillion-dollar growth driven acquisitions that often signal maturing cycles are nowhere in sight (Barrick/Equinox, Kinross/Redback, Newcrest/Lihir).
We believe that the industry is early in this M&A cycle.
The secret recipe
The recipe for success in exploration has many ingredients and many different formulations. The one that we favour is as follows:
- Acquire good properties in bad markets and raise capital in good markets;
- Acquire properties big enough to make big discoveries;
- Acquire properties that are big enough so that the acquiror can make additional big discoveries;
- Keep your eye on the cycle — discoveries fetch the best price when producers need to replace reserves and/or when investors demand growth rather than divesture and balance sheet repair;
- Use capital conservatively when producers are divesting assets and repairing balance sheets; use capital aggressively when producers are replacing reserves and buying growth.
We believe that by sticking to this discipline, we will get the highest possible share price for our investors. Increases in market capitalization are of little value when they are matched by increases in shares issued.
Finally, we would like to thank you for your continued faith in the Aurion team. We look forward to delivering on the immense promise that we see in our projects and prospects during 2021.
Magna Gold removes Mercedes disclosure, updates website
As a result of a review by staff of the Ontario Securities Commission, Magna Gold Corp. is issuing the following news release regarding the company’s technical disclosure in respect of the company’s Mercedes property. The company has updated the corporate presentation posted on its website to, among other changes:Read More
- Remove certain disclosure of resources in respect of a deposit on the Mercedes property which did not use the applicable mineral resource categories set out in Section 1.2 of National Instrument 43-101 (Standards of Disclosure for Mineral Projects) contrary to Section 2.2(a) of NI 43-101 and that disclosed the quantity, grade, or metal or mineral content of a deposit that has not been categorized as an inferred mineral resource, an indicated mineral resource or a measured mineral resource contrary to Section 2.3(1)(a) of NI 43-101;
- Remove certain disclosure of the quantity of contained metal or mineral in respect of a deposit on the Mercedes property which did not state both the grade or quality and the quantity for each category of the mineral resources contrary to Section 2.2(d) of NI 43-101;
- Remove certain disclosure regarding the production and sale of gold from the Mercedes property, including anticipated production and associated capital and operating expenditures and cash flows that may be characterized as the result of an economic analysis that includes, or is based on, inferred mineral resources or an exploration target contrary to Section 2.3(1)(b) of NI 43-101;
- Remove any use of the term ore in the context of mineral resources that may be potentially misleading;
- Include the name and relationship to the company of the qualified person who prepared or supervised the preparation of the information that forms the basis for the written disclosure or who approved the written disclosure in accordance with Section 3.1 of NI 43-101.
The updated corporate presentation is now available on the company’s website.
Additionally, the company wishes to clarify certain disclosure regarding the potential production and sale of gold from the Mercedes property. The decision to produce at the Mercedes property was not based on a technical report supporting either mineral resources or mineral reserves demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, which include increased risks associated with developing a commercially minable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that anticipated production costs will be achieved. Failure to achieve the anticipated production costs would have a material adverse impact on the company’s cash flow and future profitability. Readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions. It is further cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability.
Sirios Resources private placement
The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement.Read More
Number of securities: 14,261,889 Quebec flow-through common shares; 5,079,117 federal flow-through common shares
Purchase price: 18 cents per Quebec flow-through common share; 17 cents per federal flow-through common share
Warrants: 9,670,503 common share purchase warrants to purchase 9,670,503 shares
Warrant exercise price: 23 cents per share for a period of 18 months following the closing of the private placement
Number of placees: 56 placees
Insider: Michel Bouchard, 85,000
Total pro group: 966,895 (10 placees)
Finder’s fee: Six finders received cash commissions totalling $197,408.97.
The company has confirmed the closing of the private placement in news releases dated Dec. 11, 2020, and Dec. 16, 2020.
Kincora to issue shares for services, grants options
Kincora Copper Ltd. will issue 1,325,084 shares to certain directors, officers and service providers on account of services rendered on a quarterly basis during calendar year 2020.Read More
The issuance of shares is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange. The service shares are to be subject to a four-month hold period.
The company’s share-for-service plan was approved by written consent from disinterested shareholders and approved by the TSX Venture Exchange as originally announced Nov. 14, 2016. This plan and an updated plan passed at the 2019 annual general meeting on Sept. 26 2019, seek to provide competitive packages to retain and attract key executives, align senior executives and directors to the creation of value for shareholders, and minimize the cash overheads of the Company.
Shares issuable are at a deemed price equal to the greater of: (i) the closing price of the shares on the TSX-V on the last trading day prior to the date such shares are issuable; and (ii) the volume weighted average price of the shares traded on the TSX-V for the five trading days immediately preceding the date such shares are issuable, with a minimum deemed price of five cents per share.
In addition, Kincora has granted 2,004,505 options with a three-year term to certain directors, officers, employees and consultants of the company, which are exercisable at 44.5 cents per share within the first two year period and 48 cents per share in the final third year.
SUMMARY OF QUARTERLY SHARES FOR SERVICES FOR CALENDAR YEAR 2020 Period March 31 June 30 Sept. 30 Dec. 31 Postconsolidation basis Deemed/issuance price 15 cents 45 cents 31.7 cents 37.5 cents Closing price, quarter-end 10.5 cents 45 cents 30 cents 37.5 cents Number of shares 605,000 201,667 286,284 232,133 Preconsolidation basis Deemed/issuance price five cents 15 cents 10.6 cents 12.5 cents Closing price, quarter-end 3.5 cents 15 cents 10 cents 12.5 cents Number of shares 1,815,000 605,000 858,852 696,400
SUMMARY OF KINCORA'S SHARE CAPITAL STRUCTURE (on a fully diluted, full-share-equivalent basis) Postconsolidation basis Common shares 70.7 million Options 6.9 million Warrants 38.6 million
Kincora, subject to regulatory approval, has retained Mackie Research Capital Corp. to initiate its market-making service to provide market-making services to the company in compliance with the policies and guidelines of the TSX-V and other applicable legislation.
Mackie will trade shares of Kincora on the TSX-V for the purposes of maintaining a reasonable market and improving the liquidity of Kincora’s common shares. The agreement between Mackie and the company is for a minimum three-month term and the company has agreed to pay Mackie $4,000 per month during the term, payable quarterly in advance.
The company and Mackie act at arm’s length, but Mackie may provide investment banking services to Kincora, and Mackie and/or its clients may have an interest, directly or indirectly, in the securities of Kincora.
The agreement is principally for the purposes of maintaining market stability and liquidity for the company’s common shares and is not a formal market-making agreement. There are no performance factors contained in the agreement between Mackie and the company, and Mackie will not receive any shares or options from the company as compensation for services it will render.
Mackie is one of Canada’s largest independent full-service investment firms and proudly traces its roots back to 1921. Mackie is privately owned by many of its 300 employees. As a fully integrated national investment dealer, Mackie offers a full complement of capital markets and wealth management services to private clients, institutions and growth companies.
Roscan Gold acquires 16 km2 at Kandiole
Roscan Gold Corp. has strategically expanded its land package by acquiring the property to the immediate west of the Mankouke permit, which is a crucial additional 16 square kilometres at the Kandiole project. It is clearly apparent, as shown in an image on the company’s website, that the magnetic signature of the Siribaya-Mankouke-Seko structure and the mineralization outlined in the Mankouke trend extend over the newly acquired Mankouke prospecting licence.Read More
Additionally, Roscan has completed a high-resolution airborne geophysical survey, which consists of approximately 3,900 kilometres of flight lines at approximately 30 metres above ground over the company’s entire Kandiole project. Data processing and interpretation will now be undertaken, followed by development of magnetic inversion and electromagnetic models. This digital information will then be integrated with all drilling data, surface geochemistry, geology and regolith maps in a generative study designed to develop targets for follow-up exploration in 2021.
Nana Sangmuah, president and chief executive officer, stated: “This new acquisition is very critical as it captures the western offset of the magnetic structure associated with our Southern Mankouke discovery. This structure extends for 22 km towards the northeast into our Kabaya target and we await the complete 3-D interpretation of geophysics to commence delineation drilling to enhance the footprint of the initial discovery. The 3-D target delineation and prioritization exercise would refine our existing targets, define new targets and significantly enhance our discovery rate. We are looking forward, with great optimism, to an exciting year in 2021.
“The current discoveries at Mankouke South, Kandiole North, Walia and Moussala North in such a short time span, and other near-surface discoveries, are testaments to the strength of our technical team, and the tremendous exploration upside potential at Roscan.”
The geophysics map on the company’s website clearly highlights the major structure of the company’s Mankouke and Kandiole discoveries trending into the newly acquired land package. The company remains financed to support an extended drill campaign that will generate news flow.
The company chose to undertake a combined EM (electromagnetic) and magnetic survey in order to be able to define both the structural and geological framework, as both of these parameters are critical for defining the locus of shear-hosted gold deposits within the Mali west region. The survey was carried out by New Resolution Geophysics (NRG), utilizing its proprietary Xcite Electromagnetic (AEM) system, in conjunction with the collection of magnetic and radiometric data.
The company awaits interpretation of the geophysics survey to better define its targets, which will be tested as part of the 2021 exploration drilling campaign. A target generation exercise is now in process incorporating all drilling, surface geochemistry and geology with the new, recently processed, geophysical data. Initial results from the newly acquired EM data highlight a broad (six km wide), structural corridor spanning over 24 km over the company’s permit portfolio in an N20 trend and hosting multiple conductive bodies which include all of the currently known, priority gold targets and discoveries. Additionally several anomalies along this trend are yet to be tested.
Current drilling on the project targeting the Mankouke permit, as well as testing along its strike and downdip extensions to confirm the depth and continuity of the zone in fresh rock, is continuing. Management intends to include in the drill campaign this new land package for possible extension of the Mankouke and Kandiole mineralization.
Osisko Metals to start drilling Pine Point on Jan. 14
Osisko Metals Inc. has provided its 2021 exploration and development plans for Pine Point with a focus toward continuing to derisk the project and bringing further improvements to the 2020 preliminary economic assessment (PEA):Read More
- Drilling will begin on Jan. 14. Osisko Metals is planning a 3,000-metre winter campaign focused on infill and extension drilling in the Western zone with the objective of converting the bulk of three high-priority prismatic deposits to the indicated resource category.
- Hydrogeological studies and tests are planned across the property to further refine the dewatering model used in the 2020 PEA. Osisko Metals believes that improvements to the hydrogeological model could lead to substantial water management cost reductions over life of mine, including initial capex, in future economic studies.
- An updated PEA and an MRE (mineral resource estimate) are expected in early 2022. With the potential for operational improvements and the incorporation of extension and infill drilling completed in 2020 and 2021, Osisko Metals will update the Pine Point PEA to better reflect sustained positive zinc and lead commodity prices.
- The company plans to submit an EA (environmental assessment) initiation package to advance permitting in accordance with the project development timeline. The environmental assessment (EA) initiation package, including the project description as per the PEA, is expected to be submitted in February, 2021. On receipt of a positive decision on the EA, expected in Q3 2023, the project permitting phase will then commence and is expected to be completed by Q3 2024.
Robert Wares, chairman and chief executive officer, commented: “Two thousand twenty was an important year for Osisko Metals and Pine Point with the release of the 2020 PEA, cementing Pine Point as a Tier 1 zinc development project. Pine Point combines excellent open-pit metal grades with available infrastructure and projected low operating costs, pointing to the potential for a top 10 global zinc producer. Building on this success, we will focus on delivering increased value to Pine Point through our planned 2021 drill campaign and hydrogeological studies.”
- 2020 PEA: After-tax NPV (net present value) and IRR (internal rate of return) are $500-million and 28.6 per cent using conservative, long-term metal prices and smelting assumptions. With a capex of $550-million, Pine Point would produce, on average, over 350 million pounds of zinc during its first six years of operation. This would make Pine Point the eighth-largest zinc mine in the world. The proposed mine would have a 10-year life. However, with over a dozen individual deposit still open along strike, there is substantial potential to increase the mine life beyond the initial 10 years.
- Expansion drilling the East mill and Central zone: In support of the opportunities identified in the PEA for resource and mine life expansion, Osisko Metals reported excellent results from its limited 2020 drill campaign in the O53 deposit area. Highlights include:
- Drill hole O53-20-PP-012 intersected 28.80 metres grading 23.90 per cent zinc and 6.24 per cent lead. The hole extends the high-grade O53 prismatic mineralization approximately 10 metres below the currently modelled pit boundary in the immediate area of the hole.
- Drill hole OM13-20-001 intersected 4.80 metres grading 7.25 per cent Zn and 1.45 per cent Pb. This hole intersected well-developed, near-surface tabular-style mineralization that potentially extends mineralization 800 metres west of the current western limit of the O53 deposit.
- Drill hole O53-20-PP-003 intersected 3.00 metres grading 8.45 per cent Zn and 0.61 per cent Pb and also indicates the presence of tabular mineralization 135 metres to the west of the O53 deposit, well outside the boundaries of the current pit-constrained resource model, indicating potential for a new tabular deposit extending westward at shallow depths.
Prime Mining pays $1.1M (U.S.) to Vista Gold
Prime Mining Corp. has made payment of $1.1-million to Vista Gold Corp. as per the terms of the acquisition of the Los Reyes gold-silver project, located in the state of Sinaloa, Mexico.Read More
As disclosed on June 15, 2020 (see news release), Prime agreed to pay Vista $2.1-million in lieu of being granted certain royalties and back-in rights relating to the project. The remaining $1.0-million payment is due during July, 2021. If Prime fails to make the remaining payment, Vista will have the right to reinstate its royalties and back-in rights.
All dollar amounts are U.S. dollars.
Evergold signs option deal on Rockland property
Evergold Corp. has signed a letter agreement for an option to purchase the Rockland property, including the formerly producing Rockland mine and adjacent exploration claims, located in the Walker Lane geological belt, Nevada, from Enigma Resources LLC. As reflected in the significant historical intercepts cited below, the property hosts known zones of high-grade and bulk-tonnage-style gold-silver mineralization that are open for further expansion and that the company believes it can grow and add to with new discoveries. Completion of the acquisition of the option is subject to receipt of all necessary approvals, including the approval of the TSX Venture Exchange.Read More
Rockland property highlights:
- Hosts a large, robust, epithermal gold-silver vein system with characteristics akin to the neighbouring high-grade Aurora (Hecla Mining) and Bodie vein districts, each with over 1.5 million ounces of gold production at grades of plus one ounce per ton gold, excellent potential for the expansion of known zones of mineralization, and the discovery of new ones;
- Numerous significant historical intercepts such as:
- 182.9 metres of 0.40 gram per tonne (g/t) Au in Romarco hole PG-33;
- 109.7 metres of 0.96 g/t Au including 12.2 metres of 1.88 g/t Au in Romarco hole PG-32;
- 59.4 metres of 1.03 g/t Au including 6.1 metres of 4.80 g/t Au in BHP hole RK-11;
- 39.6 metres of 1.16 g/t Au including 3.1 metres of 8.56 g/t Au in BHP hole RK-17;
- 1.5 metres of 19.80 g/t Au in Romarco hole PG-36C;
- 1.5 metres of 5.08 g/t Au and 354 g/t Ag in B2Gold hole RK18-27;
- Excellent location within the Walker Lane structural belt, globally endowed with over 80 million ounces of gold and over 700 million ounces of silver, and rapidly developing with advanced prospects and/or new mines such as Bullfrog (Bullfrog Gold/Barrick/Augusta), Mother Lode (Corvus Gold), Silicon (Anglo Gold), Castle Mountain (Equinox), Tonopah (Blackrock) and others;
- Historic production from the Rockland mine of an estimated 50,000 ounces of gold-silver grading as high as 2.8 oz/t gold equivalent (96 g/t AuEq);
- Drive-on access and workable year-round, meaning low discovery and development costs.
“Evergold was founded to create shareholder value and our two flagship properties in B.C., Golden Lion and Snoball, yielded exploration discoveries in our first field season post-IPO,” said Kevin Keough, president and chief executive officer. “This year we plan to advance both these discoveries. We are nonetheless moving dynamically to take advantage of good exploration opportunities as they arise, and Rockland is an exciting one, complementary to both Golden Lion and Snoball for its known gold-silver zones and immediate exploration upside, and its potential to provide year-round news flow and mitigate the share price winter flu that most Golden Triangle plays catch.”
Evergold personnel recently visited the Rockland property. The historical assays referenced in this news release have not, however, been independently confirmed. Nonetheless, the historical drilling and sampling are believed to have been carried out by competent personnel working for reputable companies, as cited. Intercept true widths are not known. Readers should further note that mineralization hosted by neighbouring districts and properties, though believed to be of generally similar style, may not necessarily be representative of the mineralization found on the Rockland property.
About the Rockland property
The Rockland property is located approximately 25 miles south of the town of Yerington in western Nevada, along the northern portion of the Walker Lane trend. The property consists of 71 unpatented claims encompassing 594 hectares, and is underlain by a large, robust, low-sulphidation, quartz-adularia epithermal gold-silver system with excellent potential for the expansion of known zones of mineralization, and the discovery of new ones.
Mineralization on the property is spatially and genetically associated with Late Miocene-age rhyolite intrusive activity and occurs in intensely altered rhyolites, associated sedimentary rocks and pre-Tertiary granodiorite. The best gold grades are associated with quartz veins and rhyolite feeder dikes that cut the basement granodiorite at the Rockland mine. Alteration and mineralization are primarily controlled by north-northeast-to-northeast-trending structures, which are common orientations of the high-grade veins at Aurora and Bodie. The strong association of gold mineralization with shallow rhyolite intrusions also suggests comparisons with the Sleeper and Midas high-grade vein districts elsewhere in Nevada.
The property hosts two key target areas: the historic Rockland mine and Rockland East. Five companies — BHP, Hecla, Inmet, Romarco and B2Gold — explored the property between 1987 and 2019, drilling 78 holes totalling 50,385 feet. Many of the holes bottomed in mineralization.
Rockland mine target area
The historic Rockland mine is located within the western portion of the property. Production between 1870 and the late 1930s was largely undocumented but is estimated by the Geological Society of Nevada to have approximated 50,000 ounces of gold and silver, with grades as high as 2.8 oz/t gold equivalent (96 g/t AuEq). The Rockland mine area has yielded surface values up to 50.9 g/t Au and 1,758 g/t Ag, and underground values up to 91 g/t Au. Stopes along the Rockland mine adit level are reported to be several feet wide and semi-continuous for nearly 1,000 feet along strike and up to 1,400 feet downdip.
In the vicinity of the Rockland mine, drilling by BHP in the late 1980s returned relatively shallow, broad intercepts of low-grade mineralization encompassing intervals of higher grade (true widths unknown), including:
- 39.6 metres of 1.16 g/t Au including 3.1 metres of 8.56 g/t Au in BHP hole RK-17;
- 59.4 metres of 1.03 g/t Au including 6.1 metres of 4.80 g/t Au in BHP hole RK-11;
- 67.1 metres of 0.34 g/t Au in BHP hole RK-8.
Much of the approximately one-kilometre strike length of the Rockland mine en echelon vein system remains untested for high-grade mineralization, particularly below the Rockland mine adit level. A hole by B2Gold in 2018 intersected a vein with 5.08 g/t Au and 354 g/t Ag over 1.5 metres in hole RK18-27, which is interpreted as the downdip extension of the main vein historically mined.
Rockland East target area
Limited historical drilling indicates a large low-grade gold zone at depth at Rockland East, with broad lower-grade intercepts commonly encompassing narrower intervals of higher grade. The geometry of this zone is still poorly understood. Map relations coupled with abundant associated pathfinder elements (particularly arsenic and antimony) characteristic of the upper levels of low sulphidation systems found at Nevada mines such as Sleeper, Hollister and Midas, and El Penon in Chile (all over 1.5 moz deposits), indicate that the Rockland East target area is down dropped relative to the Rockland mine area western block and that the entire epithermal system in this area may be largely preserved.
Significant Rockland East historical intercepts include (true widths unknown):
- 30.5 metres of 1.29 g/t Au including 3.1 metres of 6.13 g/t Au in Inmet hole PG-13;
- 16.8 metres of 1.05 g/t Au and 9.1 metres of 2.82 g/t Au including 1.5 metres of 9.20 g/t Au in Inmet hole PG-15;
- 109.7 metres of 0.96 g/t Au including 12.2 metres of 1.88 g/t Au in Romarco hole PG-32;
- 182.9 metres of 0.40 g/t Au in Romarco hole PG-33;
- 59.4 metres of 1.09 g/t Au including 3.1 metres of 19.80 g/t Au in Romarco hole PG-36C.
As at the Rockland mine area, many of the Rockland East holes bottomed in gold mineralization.
Other target areas with anomalous surface geochemistry occur on the property and have had little or no drilling, including an area with high-grade vein boulders containing up to 30 g/t Au and 140 g/t Ag.
Evergold exploration approach
Few of the companies that previously carried out work on the Rockland property executed systematic exploration programs, with most drilling limited to one or two phases and occurring two or more decades ago. Evergold believes that its exploration team, advancing a program of methodical exploration, can potentially expand known zones of mineralization and generate new discoveries, possibly leading to the definition of significant gold-silver resources. This work will commence with digital compilation and modelling of previous results (most of the historical data are available) followed by mapping, geophysics (airborne magnetics and induced polarization), soil geochemistry and hyperspectral imaging. Work on the property will be possible year-round.
Terms of the letter agreement
Under the terms of the letter agreement, the company will have the right to earn a 100-per-cent ownership interest in the Rockland property in exchange for staged outlays to Enigma over five years, which cumulatively total $805,000 (U.S.) cash and 500,000 common shares payable in instalments as set out in the associated table, in addition to escalating work commitments of $1,675,000 (U.S.) over the same time frame, and a 3-per-cent net smelter returns royalty granted to Enigma, two percentage points of which can be bought back by the company for an aggregate of $3-million (U.S.), with a right of first refusal granted to the company by Enigma to purchase the remaining one percentage point.
SCHEDULE OF CASH AND SHARE PAYMENTS Date Payment (U.S. dollars and shares) On signing $5,000 On TSX approval of transaction $35,000 and 40,000 shares Jan. 1, 2022 $40,000 and 40,000 shares Jan. 1, 2023 $50,000 and 45,000 shares Jan. 1, 2024 $75,000 and 100,000 shares Jan. 1, 2025 $100,000 and 275,000 shares Jan. 1, 2026 $500,000* Total $805,000 and 500,000 shares * The final $500,000 payment may be made in cash, shares or any combination thereof, at the discretion of Evergold, based on a price per share equal to the greater of 30 cents or the 20-day volume-weighted average price of the shares on the TSX Venture Exchange.
Schedule of work commitments
Evergold will be required to incur a minimum of $1,675,000 (U.S.) in exploration expenditures as follows:
- $75,000 (U.S.) on or before Jan. 1, 2022;
- $175,000 (U.S.) on or before Jan. 1, 2023;
- $250,000 (U.S.) on or before Jan. 1, 2024;
- $1,175,000 (U.S.) on or before the later of Jan. 1, 2025, or 18 months from the receipt of drill permits, and to include drilling (with assaying costs) that includes 5,000 feet in the Rockland mine area and 15,000 feet in the Rockland East target area.
Andrew J. Mitchell, PGeo, vice-president, exploration, for Evergold and a qualified person as defined by NI 43-101, has reviewed and approved the technical information in this news release.
Cda Nickel, Glencore sign MOU on Kidd met site use
Canada Nickel Company Inc. has entered into a non-binding memorandum of understanding (MOU) with Glencore Canada Corp. in order to examine the potential use of Glencore’s Kidd concentrator and metallurgical site in Timmins, Ont., for the treatment and processing of material mined from Canada Nickel’s 100-per-cent-owned Crawford nickel-cobalt sulphide project. Crawford is located 40 kilometres north of Glencore’s operations.Read More
“The opportunity to utilize the excess capacity and existing infrastructure at the Kidd met site provides the potential to allow a faster, simpler, smaller-scale start-up of Crawford at a vastly lower capital cost while the company continues to permit and develop the much-larger-scale project currently being contemplated. Given the potential for this significant change in the scope of the project start-up, the release of the preliminary economic assessment (PEA) will be delayed until the end of March, 2021, to allow this option, if successful, to be incorporated,” said Mark Selby, chair and chief executive officer of Canada Nickel.
Canada Nickel has completed an initial high-level assessment and will now proceed with a detailed study on the potential for upgrading excess capacity at the Kidd concentrator and/or utilizing the existing infrastructure in place at the Kidd met site for milling and further processing the nickel-cobalt and magnetite concentrates that are expected to be produced from Crawford. Should the study deliver a positive outcome for both parties, the parties will continue good faith negotiations toward a binding agreement. The MOU is non-exclusive.
This detailed study is expected to be completed by the end of March, 2021. Ausenco Engineering Canada Inc., currently retained as the lead study consultant for the Crawford preliminary economic assessment that is under way, has been engaged to support the assessment of the Kidd met site facilities.
About Kidd operations
Located in Timmins, Ont., Glencore Canada Corp. operates the Kidd operations consisting of the Kidd metallurgical site and the Kidd mine.
The concentrator is located on the property of the Kidd metallurgical site. The Kidd met site is located 27 km east of Timmins, Ont., in the townships of Hoyle and Matheson, within the Timmins city limits. Built in 1966 with numerous upgrades over the years, the concentrator currently processes metal ore to produce copper and zinc concentrates. The facility has a design rated capacity of 12,500 tonnes per day and is fully permitted with water taking and discharge permits and thickened tailings storage. The site has incoming and outgoing rail service via Ontario Northland Railway.
Am Creek JV drills 82.5 m of 3.286 g/t AuEq at Treaty
American Creek Resources Ltd. has released results for the last set of 2020 diamond drill holes for the Goldstorm zone at its joint venture flagship property, Treaty Creek.Read More
The project is located within the heart of the Golden Triangle of Northwestern British Columbia which is on-trend from Seabridge’s KSM Project located five kilometers southwest of the Goldstorm Zone. Results from sampling of 9,621.7 meters of HQ and NQ2 core, from 11 diamond drill holes, have recently been received from MSA Labs. American Creek’s JV partner, Tudor Gold has completed 50 diamond drill holes at the Goldstorm System (GS) and three diamond drill holes at the Perfect Storm Zone (PSZ), for respective totals of approximately 44,000 meters (GS) and 1,600 meters (PSZ) during the 2020 exploration season. It was necessary to abandon two of the final drill holes as ground conditions prevented the safe completion of GS-20-99 and GS-20-101 late in the season, however, significant gold and silver mineralization was encountered in GS-20-99 (0.647 gpt AuEq over 109.5 meters) and this hole ended in strong stockwork within the DS5 System. Unfortunately drill hole GS-20-101 was abandoned before intersecting the area of the intended target and this hole will be re-drilled in 2021. From the remaining 51 drill holes, all but one were successful in intersecting the intended targets.
Blue Lagoon begins drilling at Dome Mountain
Blue Lagoon Resources Inc. has mobilized its crew and drill rig to commence its 2021 drill program, which is expected to be a minimum of 20,000 metres of diamond drilling on its all-year-round road-accessible Dome Mountain gold project, located a short 50-minute drive from Smithers, B.C.Read More
As part of the Company’s larger planned exploration and development program, Phase One, which starts today, is designed to target deep mineralization on and along the Boulder Vein resource. This program design was based on the positive results from the recently completed 2020 drill program which highlighted the near term opportunities to increase the overall resource significantly, both at depth and along strike to the east that show high grade gold and silver potential.
"We are very excited to kick off this Phase One drilling at Dome Mountain" said Bill Cronk, Chief Geologist of Blue Lagoon Resources." The 2020 drilling program identified clear targets for follow up which will significantly add to the growing resource potential at Dome Mountain. In addition, fifteen high grade gold (drill ready) vein targets and, early developmental targets based on our 2020 airborne geophysics and ground soils and prospecting, offer further resource expansion opportunities on the Dome Mountain Gold Project," he said.
Airborne geophysics completed on the project in 2020 detailed numerous targets for further development, as well as a clear Mag signature associated with additional strike length potential to the east on the Boulder Vein. See news release dated January 7, 2021 for additional details.
"Although we've reached a number of significant milestones for Blue Lagoon in a very short time, one of the most important and significant were results that we received from the first ever property wide airborne geophysical survey conducted at Dome Mountain," said Rana Vig, President & CEO of Blue Lagoon Resources. "This survey identified five (5) new perspective targets and led the company to immediately stake an additional 7,646 hectares, thereby nearly doubling the property to nearly 19,000 hectares," he said.
"Furthermore," he added, "with a very busy year ahead, the Company anticipates significant positive results and milestones throughout the course of 2021. With drilling starting today, the first results are expected to be released in early March and will continue until the fall of 2021. In addition, the Company has nearly $6 million in treasury, no debt, and approximately $5 million in warrants and options that are in the money and could provide more capital this year, if needed," he said.
MILESTONES AND CATALYSTS FOR GROWTH
EXPLORATION:2021 work program includes the largest drilling program in the project's history.Drilling will focus on near term resource expansion at Dome as well as drill ready targets that offer New Discovery potential on the property.New drill results will continue through to Fall 2021.Ground based exploration to focus on new targets identified by the recently completed airborne geophysics.Expand the "drill ready" target portfolio.An aggressive property wide soils program will include collection of at least 4000 samples.Focused ground IP survey.Update the recently filed 43-101 Technical Report to include new drill data (from 2020 drilling and, 2021 Phase One drilling).
MINE DEVELOPMENT:Finish water treatment facility (February 2021)Underground installation of a secondary emergency egress and vent raise (February 2021)Removal and processing of high-grade broken ore sitting on site (March 2021)Complete mine reclamation and closure plans (April 2021)Submit all amendment documents to the Ministry for approval to begin mining (June 2021)
The Company will evaluate a production decision once all permit requirements are in place. Any production decision in advance of obtaining a feasibility study of mineral reserves demonstrating economic and technical viability of the project is associated with increased uncertainty and risk of failure.
PHASE ONE DRILLING
The first hole of the Phase One drill program will be drilled from the Noranda 1 Pad (see figure 1). This is the location of hole DM-20-139 which intersected 17.69 g/t Au and 70.40 g/t Ag (including 0.65 meters running 48.4 g/t Au and 95 g/t Ag) over 3.13 meters at a downhole depth of 338 meters (news released Dec 9, 2020). DM-21-140 will focus on follow-up of the Boulder Intercept and will target mineralization in the Boulder Vein up dip from that deep intercept in order to verify the attitude of the vein at depth as well as test the average vein thickness.
Pads located south of here (Pads 27, 31, 32 and 33) will be drilled to depth in order to further test the down dip extension of the Boulder Vein Mineralization.
Pads located to the east include Pad 26 which is the location of the previously announced hole DM-20-114 which intersected 107 g/t Au and 278.5 g/t Ag over 1.42 meters (including 165.3 g/t Au and 398 g/t Ag over 0.71 meters) at a depth of 69.13 meters from a hole with an inclination of -73 degrees. Planned holes from this pad will be targeting this high-grade gold/silver mineralization at depth as well as farther along strike.
The scientific and technical disclosure in this news release was approved by William Cronk, P.Geo., a qualified person as defined in NI 43-101 and a consultant to the Company.