Excellon produces 1.63 moz AgEq at Platosa in 2020
Excellon Resources Inc. has released its fourth quarter and annual 2020 production results from the Platosa mine in Durango, Mexico.Read More
Q4 2020 production (compared with Q4 2019):
- Silver equivalent (AgEq) production increased by 18 per cent to 556,332 AgEq ounces (Q4 2019 — 469,707 AgEq oz), including:
- Silver production increased by 37 per cent to 355,581 oz (Q4 2019 — 259,282 oz), exceeding Q3 2020 as the strongest quarter of silver production since Q2 2014.
- Lead production increased by 32 per cent to 2.2 million pounds (Q4 2019 — 1.7 million lb).
- Zinc production increased by 19 per cent to 2.5 million lb (Q4 2019 — 2.1 million lb).
- Continued improvements demonstrate positive impact of continuing optimizations.
- Record productivity was achieved in the second half of 2020, following restart in late Q2.
“Our Platosa mine continued to deliver strong production in Q4 2020 after our restart of operations in late Q2, with another quarter of near-record mined and milled tonnage,” stated Brendan Cahill, president and chief executive officer. “The numerous improvements we have made to the operation are bearing fruit and we continue to identify additional areas for optimization. Our Miguel Auza mill realized excellent performance throughout 2020 and continues to deliver strong and improving recoveries. Our metal production for 2020 was not far off 2019, despite losing almost an entire quarter of production due to the pandemic — a testament to the resilience and perseverance of our operational teams. We thank them for their dedication as we look forward to a strong 2021 and yet higher silver prices to come.”
PRODUCTION RESULTS Q4 2020 Q4 2019 2020 2019 Tonnes mined from Platosa 21,455 19,622 66,501 74,876 Tonnes of ore processed 22,626 19,828 65,567 73,797 Tonnes of historical stockpile processed - - - 1,450 Tonnes milled 22,626 19,828 65,567 75,247 Ore grades Silver (g/t) 536 435 519 497 Lead (%) 5.42 4.84 5.37 4.82 Zinc (%) 6.12 6.39 6.57 6.93 Recoveries Silver (%) 91.2 91.7 91.4 89.9 Lead (%) 82.9 80.2 83.7 79.2 Zinc (%) 80.1 76.5 78.9 77.7 Metal production (2) Silver (oz) 355,581 259,282 997,690 1,054,029 Lead (lb) 2,223,465 1,690,610 6,470,637 6,134,888 Zinc (lb) 2,452,728 2,062,018 7,488,825 8,425,221 AgEq (oz) (3) 556,332 469,707 1,639,310 2,002,036 Average realized prices Silver ($) 24.46 17.12 21.59 16.07 Lead ($) 0.87 0.87 0.83 0.88 Zinc ($) 1.21 1.04 1.08 1.12 Tonnes of ore processed -- San Sebastian - 6,398 4,785 14,231 (1) Production during 2020 was impacted by the COVID-19-related suspension mandated by the government of Mexico from April 2 to June 1. (2) This si subject to adjustment following settlement with concentrate purchaser. (3) AgEq ounces established using average realized metal prices during the period indicated applied to the recovered metal content of concentrates.
Platosa continued to outperform 2019 productivity, while reducing operating costs, improving safety performance and managing the continuing threat posed by COVID-19. Recoveries at Miguel Auza improved on an annual basis, while plant reliability has substantially increased. During 2020, the operation realized improvements in shift scheduling, mining method, offtake arrangements and electricity costs, while completing the phase 2 tailings dam lift and strengthening the management and technical teams. In the continuing strong metal price environment, Excellon’s Mexican operations are positioned to continue the performance achieved in the second half of 2020.
QMX Gold drills 196.6 m of 1.78 g/t Au at Bonnefond
QMX Gold Corp. has released results from the continuing deep exploration drilling program on the Bonnefond deposit. Drill hole 17315-20-155 was completed as part of a series of drill holes testing the potential of the deeper portion at Bonnefond. The Bonnefond deposit is located in the Val d’Or East zone of QMX’s extensive land package in Val d’Or, Que.Read More
Highlights (grades are uncut; length is measured along the hole):
- 1.78 grams per tonne gold over 196.6 metres, including 5.46 g/t Au over 33.5 m, within the 2020 mineral resource estimate conceptual pit shell;
- 3.30 g/t Au over 9.5 m, including 10.42 g/t Au over 2.0 m at 380 m;
- 20.90 g/t Au over 1.7 m at 520 m;
- 5.57 g/t Au over 3.1 m at 550 m.
DDH 17315-20-155 confirms the previous results from DDH 121 (news release dated Aug. 18, 2020) and DDH 149 (news release date Jan. 5, 2021) and the potential of the Bonnefond deposit below the 2020 mineral resource estimate (MRE) conceptual pit shell (new release dated Dec. 2, 2020).
“We continue to develop a better mineralization model with every hole drilled at Bonnefond,” said Dr. Andreas Rompel, vice-president, exploration. “And we gain more knowledge about the mineralization at depth. After having drilled several successful deep holes, it is clear that the mineralization continues down plunge including several high-grade intervals.”
The Bonnefond deposit comprises an intrusive body and series of shear zones transecting the intrusive and the surrounding volcanic series. The main part of the mineralization is hosted in the shear zones and is associated with quartz tourmaline veins, pyrite and strong sericite-albite-fuchsite alteration. In the tonalite, mineralized veins and veinlets extend outside of the shear envelops.
Drill hole 17315-20-155 was drilled down plunge close to the western contact of the Bonnefond tonalite, 50 m to west of DDH 121 to test the continuity of the enriched mineralization zones along the intrusive and below the resource pit. The drill hole remained within the mineralized tonalite from the bedrock to 560 m and ended at 625 m in the diorite. Along its entire course, the diamond drill hole intersected multiple enriched zones. These intervals are listed in the associated table. The intersection angle of the drill hole with the mineralized zones is almost perpendicular, rendering the intersection length close to the true width.
Within the 2020 MRE pit shell, DDH 155 intersected 1.78 g/t Au over 196.6 m including 5.46 g/t Au over 33.5 m and several narrower enriched intervals varying from 4.03 g/t Au over 1.6 m to 9.00 g/t Au over 1.5 m. Those enriched intervals are related to higher density of quartz tourmaline veins and visible gold is often observed.
Below the pit shell, the hole intersected several mineralized intervals such as 3.30 g/t Au over 9.5 m, including 10.42 g/t Au over 2.0 m at 380 m; 20.90 g/t Au over 1.7 m at 520 m and 5.57 g/t Au over 3.1 m at 550 m. Based on the current interpretation of the project, the continuity of several of these intervals can be traced in nearby drill holes demonstrating potential for continuous underground sustainable mineralized zones at depth.
Combined with the success of the 2020 MRE at building a first inferred underground resource on the Bonnefond deposit, the results of DDH 155, DDH 121 and DDH 149 builds on the underground potential of the project.
RESULTS FROM DDH 155 -- BONNEFOND DEPOSIT Hole No. Hole From To Length* Au** length (metre) (metre) (metre) (g/t) 17315-20-155 625 79.2 80.7 1.5 3.17 126.3 128.1 1.8 16.53 136.4 333.0 196.6 1.78 incl. 148.5 150.0 1.5 9.00 incl. 180.4 213.9 33.5 5.46 incl. 226.5 233.5 7.0 3.29 incl. 232.0 233.5 1.5 10.53 incl. 262.0 263.6 1.6 4.03 incl. 294.1 296.1 2.0 6.89 347.5 349.0 1.5 4.69 373.5 383.0 9.5 3.30 incl. 375.5 377.5 2.0 10.42 502.7 505.7 3.0 2.99 521.0 522.7 1.7 20.90 544.8 546.3 1.5 4.99 554.7 557.8 3.1 5.57 * Reported length is measured along the hole. ** Au is uncut.
Current exploration drilling
QMX currently has four drill rigs operating on its Val d’Or property, all on and around the Bonnefond property. QMX expects to mobilize additional drill rigs as soon as the field conditions allow it to start drilling at the Bevcon and the New Louvre targets (news release dated Jan. 12, 2021).
Tinka Resources drills 39 m of 9.3% Zn at Ayawilca
Tinka Resources Ltd. has released results of four drill holes from the current drill program at Ayawilca. Three of the holes targeted extensions of indicated resources at West and South Ayawilca (holes A20-170, 171 and 175) while one hole is an infill hole at West Ayawilca (A20-173).Read More
The company has now completed approximately 6,000 metres of the planned 7,500-metre drill program in the resource expansion program. Many of the completed holes have targeted zinc-silver mineralization in the area between West and South Ayawilca, an area that has not been well drill tested. Two rigs are operational and are expected to remain at site until February, 2021. So far, 16 diamond drill holes have been completed (A20-169 to A21-184). Results for 11 of these holes are pending.
Hole A20-170 (South Ayawilca):
- 38.8 metres at 9.3 per cent zinc and 14 grams per tonne silver from 282.6 m to 321.4 m depth, including:
- 13.7 metres at 15.9 per cent zinc and 26 g/t silver from 282.6 m depth;
- The wider intersection is an extension of the mineralized interval reported on Nov. 30, 2020, to a depth of 309 metres only;
- 4.5 metres at 14.5 per cent zinc and 31 g/t silver from 340.1 m depth;
- 5.0 metres at 5.2 per cent zinc, 0.6 per cent lead and 16 g/t silver from 352.4 m depth.
Hole A20-173 (West Ayawilca):
- 18.7 metres at 7.2 per cent zinc and 11 g/t silver from 187.3 m depth, including:
- 7.3 metres at 11.8 per cent zinc and 21 g/t silver from 196.0 m depth;
- 23.9 metres at 6.2 per cent zinc and eight g/t silver from 252.1 m depth;
- 2.8 metres at 15.0 per cent zinc and six g/t silver from 284.0 m depth.
Hole A20-175 (West Ayawilca):
- 1.2 metres at 43.6 per cent zinc, 0.5 per cent lead and 212 g/t silver from 136.5 m depth;
- 14.3 metres at 5.0 per cent zinc and nine g/t silver from 235.7 m depth.
Hole A20-171 (West Ayawilca — vein style):
- 0.4 metre at 19.6 per cent zinc and 99 g/t silver from 110.0 m depth.
Mineralization in holes A20-170, A20-173 and A20-175 is associated with gently-dipping sulphide-rich mantos hosted in limestones. True thicknesses of the mantos are estimated to be at least 90 per cent of the downhole thicknesses. Mineralization in hole A20-171 is vein style hosted by sandstones, which has an unknown true thickness.
President and chief executive officer of Tinka, Dr. Graham Carman, stated: “Ayawilca continues to produce strong zinc results with significant silver credits. Hole A20-170 is expected to expand our indicated resources at South Ayawilca, with mineralization still open to the southeast. Holes A20-173 and A20-175 have improved our geological model of the central portion of West Ayawilca with good grades also intersected in these holes.
“We await with much anticipation the assay results for the 11 pending drill holes, and we still have a handful more holes to drill. The receipt of results from the lab continues to be slow due to coronavirus pandemic protocols in Peru. Drilling will continue for the next few weeks, focusing on expanding our high-grade indicated resources at South Ayawilca that will be reflected in an updated preliminary economic assessment (PEA) planned for mid-2021.
“Ayawilca contains one of the higher-grade zinc resources anywhere in the world, and we are very excited to see zinc prices reflect the lack of significant new supply. We strongly believe that Ayawilca is perfectly positioned to take advantage of current positive market sentiment towards base metals.”
The Ayawilca zinc zone (sulphide) contains an estimated 1.8 billion pounds zinc and 5.8 million ounces silver in the indicated category, and 5.6 billion pounds zinc and 25.2 million ounces silver in the inferred category (see news release dated Nov. 26, 2018). The Colqui silver zone (oxide) contains an estimated 14.3 million ounces silver in the indicated category and 13.2 million ounces silver in the inferred category, with mineralization starting from surface.
SUMMARY OF NEW RESULTS FROM THE 2020-2021 DRILL PROGRAM AT AYAWILCA Drill hole From To Interval Zn Pb Ag In (m) (m) (m) (%) (%) (ppm) (ppm) A20-170 202.85 215.00 12.15 4.11 1.23 60 12 incl. 202.85 205.00 2.15 10.20 2.53 121 20 and 243.20 246.90 3.70 6.50 0.12 13 60 and 282.60 321.40 38.80 9.33 0.03 14 197 incl. 282.60 296.25 13.65 15.93 0.02 26 503 and 340.10 344.60 4.50 14.53 0.06 31 296 and 352.40 357.40 5.00 5.19 0.55 16 30 A20-171 110.00 110.40 0.40 19.60 0.19 99 1 A20-173 187.30 206.00 18.70 7.16 0.03 11 15 incl 196.00 203.25 7.25 11.77 0.04 21 15 and 252.10 276.00 23.90 6.19 0.01 8 131 and 284.00 286.80 2.80 14.98 0.01 6 62 A20-175 136.50 137.70 1.20 43.59 0.47 212 745 and 212.20 212.75 0.55 27.10 0.45 29 52 and 235.70 250.00 14.30 5.00 0.03 9 17 and 301.80 304.50 2.70 8.20 0.00 10 838
Notes on sampling and assaying
Drill holes are diamond HQ- or NQ-size core holes with recoveries generally above 80 per cent and often close to 100 per cent. The drill core is marked up, logged and photographed on site. The cores are cut in half at the company’s core storage facility, with half cores stored as a future reference. Half core is bagged on average over one- to two-metre composite intervals and sent to ALS laboratories in Lima for assay in batches. Standards and blanks are inserted by Tinka into each batch prior to departure from the core storage facilities. At the laboratory samples are dried, crushed to 100 per cent passing two millimetres, then 500 grams are pulverized for multielement analysis by ICP (inductively coupled plasma) using multiacid digestion. Samples assaying over 1 per cent zinc, lea, or copper and over 100 g/t silver are reassayed using precise ore-grade AAS (atomic absorption spectroscopy) techniques.
Canada Nickel drills 308 m of 0.3% Ni at Crawford
Canada Nickel Company Inc. has released encouraging results from the latest drill holes at its Crawford nickel-cobalt sulphide project from its West zone discovery previous announced on Oct. 22, 2020.Read More
“We are excited to be kicking off the 2021 new year with encouraging assay results from our follow-up drilling program. The wide higher-grade intersection from the West zone has the potential to extend the higher-grade core of nickel and cobalt sulphides of the Main zone by 45 per cent or 850 metres to the northwest. Only seven other holes across entire property have intersected greater true widths of 0.30 per cent plus nickel. Additionally, the two other West zone holes reported today have defined a very wide one kilometre of large, low-grade mineralization coincident with the large gravity anomaly on the western part of the West zone. I look forward to the continued results from both the higher-grade and lower-grade zones as additional assays become available,” said Mark Selby, chair and chief executive officer of Canada Nickel.
“Additionally, we are expecting assay results from follow-up holes on the previously reported PGM results from hole CR20-32 and further results from the drilling currently under way on prospective geophysical nickel targets across several kilometres of the Crawford structure.”
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.
West zone drill results — higher-grade zone
Drilling on the West zone was guided by the geophysical signature of low gravity gradient of serpentinized dunite and has continued to intersect consistent nickel mineralization similar to that in the resource areas in the Main and East zones.
Notably, hole CR20-74 intersected 0.30 per cent nickel over core length of 308 metres (estimated true width of 198 metres) starting at 196 metres downhole, including 0.41 per cent nickel over core length of 13 metres at 271.5 metres downhole, and ended with 0.32 per cent nickel over core length of 36 metres. The entire hole CR20-74 returned 0.28 per cent nickel over core length of 453 metres — 850 m northwest of current end of higher-grade core of Main zone mineralization. Hole CR20-77 intersected 0.32 per cent nickel over 90 metres starting at 144 metres downhole, including 0.41 per cent nickel over core length of 12 metres starting at 177 metres downhole, and extends the Main zone higher-grade core by 100 metres to the west.
West zone drilling results — lower-grade zone
Complete assays from the first two holes in the western part of the West zone confirm wide, lower-grade mineralization more than 800 metres wide. Hole 20-69 returned 0.16 per cent nickel over entire core length of 456 metres including 177 metres of 0.21 per cent nickel. Hole 20-70 returned 0.17 per cent nickel over entire core length of 495 metres including 41 metres of 0.21 per cent nickel.
An airborne geophysical survey and interpretation work have been completed on regional option properties and will guide a regional drilling program expected to commence this winter. Canada Nickel continues to work with its lead consultant, Ausenco, on assessing utilizing Glencore Canada’s Kidd operations for a start-up scenario. Additional metallurgical recovery work combined with those recently announced locked-cycle test results will be incorporated into a preliminary economic analysis to be completed by the end of first quarter 2021.
WEST ZONE NICKEL -- DRILLING RESULTS, CRAWFORD NICKEL-COBALT SULPHIDE PROJECT, ONTARIO Estimated DDH ID From To Length true width Ni Co Pd Pt S Fe (m) (m) (m) (m) (%) (%) (g/t) (g/t) (%) (%) higher-grade core CR20-74 51.4 504.0 452.6 290.9 0.28 0.014 0.016 0.008 0.07 7.55 including 196.5 504.0 307.5 197.7 0.30 0.014 0.016 0.007 0.08 7.73 including 229.5 382.5 153.0 98.3 0.32 0.015 0.019 0.008 0.09 7.67 including 271.5 285.0 13.5 8.7 0.41 0.016 0.025 0.010 0.14 7.58 and 468.0 504.0 36.0 23.1 0.32 0.015 0.015 0.006 0.07 8.85 CR20-77 48.0 405.0 357.0 147.5 0.25 0.013 0.007 0.005 0.04 6.54 including 144.0 234.0 90.0 37.2 0.32 0.012 0.018 0.005 0.10 6.23 including 177.0 189.0 12.0 5.0 0.41 0.013 0.032 0.009 0.20 6.49 large lower-grade target CR20-69 45.0 501.0 456.0 293.1 0.16 0.011 0.014 0.011 0.05 7.50 including 90.0 177.5 87.5 56.2 0.20 0.013 0.015 0.010 0.04 7.72 and 324.1 501.0 176.9 113.7 0.21 0.014 0.017 0.012 0.03 7.58 CR20-70 46.0 541.0 495.0 318.2 0.17 0.012 0.008 0.009 0.03 7.26 including 46.0 382.0 336.0 216.0 0.20 0.014 0.005 0.007 0.01 7.41 and 500.4 541.0 40.6 26.1 0.21 0.014 0.024 0.020 0.03 7.64 Note Holes drilled at a 50-degree or 65-degree inclination. The lengths reported are core lengths and not true widths. True widths are estimated based on dip and core lengths but may change once Canada Nickel has sufficient information to determine the attitude, either of the ultramafic body or of mineralized zones within it.
Assays, quality assurance/quality control and drilling and assay procedures
William E. MacRae, MSc, PGeo, 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-bladed 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 (International Organization for Standardization/International Electrotechnical Commission) 17025-accredited lab. Analysis for precious metals (gold, platinum and palladium) is completed by fire assay while analysis for nickel, cobalt, sulphur and 17 other elements is 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.
Anaconda Mining produces 18,268 oz Au in 2020
Anaconda Mining Inc. has released production results and certain financial information for the three months and year ended Dec. 31, 2020. The Company expects to file its full audited annual financial statements and management discussion and analysis by March 2, 2021.Read More
Anaconda produced 18,268 ounces of gold in 2020 from its Point Rousse operation, achieving its annual guidance of 18,000 to 19,000 ounces, predominantly from Pine Cove Pit mine production, with the processing of ore from the Argyle Gold Mine commencing in late Q4 2020.Anaconda sold 17,918 ounces of gold in 2020, generating record metal revenue of $41.5 million at an average sales price1 of C$2,316 (US$1,728) per ounce of gold. As at December 31, the Company also had over 525 ounces in gold dore inventory, which was subsequently sold in January.The Pine Cove Mill achieved annual throughput of 459,085 tonnes during 2020, just short of its annual record throughput, representing a 14% increase over 2019, when the mill was impacted by unplanned maintenance.Mine operations moved 512,028 tonnes of ore during the year, including 103,557 tonnes of ore from Argyle in Q4 2020, at an average grade of 1.50 grams per tonne ("g/t") and at a strip ratio of 3.8 waste tonnes per ore tonne.The Pine Cove Pit has now transitioned to a fully permitted in-pit tailings facility, with over 10 years of capacity at current throughput rates.The Company announced the full exercise of share purchase warrants expiring on January 10, 2021, resulting in proceeds of $3,526,895 and the issuance of 7,837,544 common shares.As of December 31, 2020, the Company had a cash balance of $14.6 million and preliminary working capital1 of $13.8 million. The Company’s current loan balance as of December 31, 2020 was $1.9 million and the non-current portion was $0.8 million.
"While 2020 was an unusual year in so many ways, with all the uncertainty brought with the global pandemic, it ended up being a very strong year for Anaconda Mining and its operations at Point Rousse. Firstly, and above all, I would like to thank all our employees for their hard work and commitment under very challenging circumstances, ensuring the sustainability of the operation while maintaining the highest level of commitment to the health and safety of all members of the community in which we operate. The Company produced 18,268 ounces of gold to meet its annual guidance and achieved record metal revenue of $41.5 million, with excellent performance from the mine and mill operations. We are excited with the commencement of ore processing from our newest mine at Point Rousse, the Argyle Gold Mine, which will provide most of the mill throughput in 2021 as we guide to produce between 18,000 and 19,000 ounces of gold in the upcoming year. With a strong treasury and continued free cash flow generation we begin the year in a robust financial position and with a clear focus on growth."
~Kevin Bullock, President and CEO, Anaconda Mining Inc.
2021 GuidanceAnaconda is projecting to produce between 18,000 and 19,000 ounces of gold in 2021. Mill feed in 2021 will be predominantly from mining at the Argyle Gold Mine, with supplemental ore feed from Pine Cove and marginal stockpiles, although the Company continues to investigate opportunities to defer marginal ore feed. Operating cash costs per ounce1 for the full year are expected to be between $1,425 and $1,475 per ounce of gold sold (US$1,100 – US$1,145 at an approximate exchange rate of 0.775), reflecting the relatively lower grade profile of Argyle in the earlier part of the mine plan, the impact of processing lower grade marginal ore, and increased trucking costs to the Pine Cove Mill from Argyle. Mine grade will increase significantly towards the end of 2021 and into 2022 at Argyle which, along with a decrease in the stripping ratio, will lead to a marked decrease in operating cash costs per ounce sold. Furthermore, any opportunity to displace marginal ore will positively impact operating costs on a per ounce sold basis.
The Company expects to incur $6,600,000 of sustaining capital expenditures for the mine and mill operations in 2021, which includes approximately $3,800,000 of mine development for pushbacks at the Argyle Gold Mine, which will also support ongoing mining in 2022. Looking further ahead at Point Rousse, the Company continues to infill drill the Stog'er Tight extension and advance baseline permitting activities, given its strong potential to extend the life of mine of the Point Rousse operation.
In addition, milestones and catalysts for growth in 2021 include:Ongoing production and free cash flow generation from Argyle throughout 2021.Infill drilling at Stog'er Tight deposit to complete an updated Mineral Resource.Final drill results from the Goldboro Gold Project ("Goldboro") infill drill program in Q1 2021.An updated Mineral Resource for the Goldboro Gold Project in Q1 2021.Ongoing initial 10,000 metre drill program at the Tilt Cove Gold Project in Q1 and Q2 2021.Drill Program at the Lower Seal Harbour Property in Nova Scotia, proximal to Goldboro.Completion of the Goldboro Feasibility Study in Q4 2021.
Operating Statistics for the Three Months and Year Ended December 31, 2020During the fourth quarter of 2019, the Company processed a bulk sample for Goldboro (the "Bulk Sample") at its Pine Cove Mill (see press release dated January 16, 2020). Fourth quarter and annual 2019 mill statistics are presented both including the Bulk Sample, and on a Point Rousse stand-alone basis.
Three months Three months Year Year ended ended ended ended Dec. 31, 2020 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2019 Mine Statistics Ore production (tonnes) 110,455 123,302 512,028 413,139 Waste production (tonnes) 453,859 518,698 1,964,689 1,771,408 Total material moved (tonnes) 564,314 642,000 2,476,717 2,184,547 Waste: Ore ratio 4.1 4.2 3.8 4.3 Mill Statistics (including Bulk Sample in 2019) Availability (%) 91.5 97.1 96.3 89.6 Dry tonnes processed 107,257 110,474 459,085 401,499 Tonnes per day ("tpd") 1,274 1,236 1,302 1,228 Grade (grams per tonne) 1.39 1.49 1.42 1.52 Recovery (%) 86.8 83.1 87.4 82.3 Gold Ounces Recovered 4,171 4,411 18,268 16,181 Gold Ounces Sold 3,970 4,209 17,918 17,265
Excluding the operating results from the Bulk Sample, the Pine Cove Mill Statistics specifically for production from the Point Rousse operation are as follows:
Dry tonnes processed 107,257100,689459,085391,714 Tonnes per day ("tpd") 1,274 1,318 1,302 1,248 Grade (grams per tonne)1.39 1.27 1.42 1.46 Recovery (%) 86.8 84.0 87.4 82.8 Gold Ounces Produced 4,171 3,441 18,268 15,211 Gold Ounces Sold 3,970 3,306 17,918 16,362
Operations Overview for the Year Ended December 31, 2020Anaconda sold 17,918 ounces of gold in 2020 to generate record metal revenue of $41.5 million at an average realized gold price1 of C$2,316 (US$1,728) per ounce, representing a 41% increase in metal revenue compared to 2019 due to a combination of significantly higher gold prices and higher gold production. During the fourth quarter, the Company sold 3,970 ounces of gold from production from its Point Rousse operations, generating metal revenue of $10.0 million at an average realized gold price1 of C$2,503 per ounce (US$1,921).
The Point Rousse operation produced 18,268 ounces of gold during 2020, achieving annual guidance of 18,000 to 19,000 ounces, and representing a 13% increase over 2019 as a result of higher throughput and stronger recoveries. Production was predominantly from the Pine Cove Pit, where mining ceased in early Q4 2020 and mill production was maintained from the established stockpile of 100,000 tonnes. In 2021, production will be focused exclusively at Argyle, with mill throughput supplemented with marginal ore from the Pine Cove Pit.
Point Rousse Mine Operations – During the fourth quarter, the mine operation produced 110,455 tonnes of ore (of which 103,557 tonnes were from Argyle), a 10% decrease from Q4 2019 when mining was focused exclusively in the Pine Cove Pit. For 2020, the mine operation produced 512,028 tonnes of ore, a significant increase over 2019 when the first half of the year was focused on the lower tonnage profile Stog'er Tight Mine. The strip ratio for 2020 was 3.8 waste tonnes to ore tonnes, a decrease from 4.3 in 2019, as the mine operation completed mining in the Pine Cove Pit throughout 2020 and the tonnes of waste moved decreased accordingly. The strip ratio of 4.1 waste tonnes to ore tonnes in Q4 2020 reflects the impact of the commencement of development at Argyle.
As at December 31, 2020, the mine operation had stockpiled over 102,300 tonnes of ore, which included approximately 72,000 tonnes from Argyle at an average grade of 1.79 g/t. Going forward into 2021, the mine operations will be exclusively focused on production from Argyle, which together with existing stockpiles will contribute approximately 70% of mill throughput in the upcoming year, with Pine Cove and marginal stockpiles providing the balance.
Point Rousse Mill Operations – The Pine Cove Mill processing facility milled 107,257 tonnes during the fourth quarter of 2020, a 3% decrease compared to Q4 2019, the result of lower mill availability due to a planned shutdown for a mill liner change. For the 2020 year, the mill processed 459,085 tonnes of ore, an increase of 14% compared to 2019 due to strong mill availability of 96.3% in the most recent year compared to only 89.6% in 2019. The Pine Cove Mill has returned to consistent and sustainable operations since the challenges encountered in the early half of 2019, when unplanned maintenance of the regrind mill impacted mill availability, which in turn impacted throughput and recovery. Anaconda took the opportunity to accelerate other planned maintenance programs, invest in critical spares, and bolster preventative maintenance programs, the result of which can be seen with the strong performance of the mill in 2020.
Average grade during the fourth quarter was 1.39 g/t, a 7% decrease compared to Q4 2019 due to the impact of the Goldboro Bulk Sample in the comparative period, however a 9% increase when compared to ore milled only from the Point Rousse operation. The fourth quarter of 2020 reflected the impact of processing of 30,324 tonnes of ore from the relatively higher-grade Argyle deposit. Average grade for 2020 was 1.42 g/t, down slightly from 1.46 g/t in 2019 when comparing only to Point Rousse results, as ore feed in the first half of the prior year was mainly from the higher grade Stog'er Tight Mine. The mill achieved an average recovery rate of 86.8% in Q4 2020 and 87.4% for the 2020 year, both representing strong increases over the comparative periods of 2019, further reflecting the strong improvements that have been implemented at the mill operation.
Bonterra drills 5.2 m of 26.6 g/t Au at Gladiator
Bonterra Resources Inc. has provided results from the continuing 16,500-metre drill campaign at its Gladiator project focused on expanding the size and scope of the project as well as improve grade continuity for the upcoming mineral resources update expected this summer. Assays from eight holes received since November 30, 2020 are included in this press release and were highlighted by:Main Zone (Expansion): 26.6 g/t Au over 5.2 m in hole BA-20-29North Zone (Expansion): 15.6 g/t Au over 2.0 m in hole BA-20-23Read More
Detailed results are presented in Table 1.
Pascal Hamelin, CEO commented, “Recent assays have expanded both the size of the mineralized system and confirmed the high-grade continuity for the Main and North Zones at Gladiator. Drilling has been mainly focused on expanding the known mineralized envelope and improving confidence. Drilling continues to progress well and is on track to complete the 16,500 m campaign at Gladiator before the upcoming mineral resources estimate update expected to be released this summer.”
Gladiator Deposit Geology
The Gladiator deposit consists of three primary zones; the North, Main and Barbeau Zones. The North and the Main Zone are characterized by felsic dykes hosted mineralized quartz veins within steeply south-southeast dipping shear zones having developed at the contacts between mafic and intermediate volcanics and gabbroic intrusions. The Main Zone includes a secondary sub-parallel vein interpreted as a dislocated fold along the Main Zone structure. The North Corridor and South Zones are a series of mineralized zones spatially correlated with felsic dykes dipping to the south-southeast. These zones are interpreted to be subparallel and similar mineralized trends to the North and Main Zones. Additional “North Dipper” mineralized zones with trends moderately to steeply dipping northward, similar to the Barbeau Zone, are confirmed from the latest drilling (Figures 1 and 4).
Table 1 - Significant mineralized intersections of recent drilling Hole ID From (m)To (m)Length (m)Grade (g/t Au) Zone BA-20-23 39.7 40.5 0.8 1.1 North Dipper (South) 77.0 77.5 0.5 0.5 175.3 176.9 1.6 8.6 Main Including 175.8 176.9 1.1 12.3 206.0 213.9 7.9 0.8 217.0 218.0 1.0 2.7 288.0 290.0 2.0 2.3 North Corridor 297.0 300.0 3.0 2.4 North Corridor 308.0 308.7 0.7 3.5 North Corridor 315.0 317.0 2.0 15.6 North Including 315.5 316.2 0.7 44.2 342.6 343.1 0.5 2.4 North Corridor BA-20-24 67.0 68.0 1.0 0.8 North Dipper 108.0 109.0 1.0 0.6 North Dipper BA-20-25 70.0 70.8 0.8 0.6 Main 75.0 76.0 1.0 1.3 Main BA-20-26 129.0 137.0 8.0 0.9 North Corridor 151.0 153.0 2.0 0.9 North Corridor BA-20-27 55.0 57.0 2.0 1.2 115.0 115.5 0.5 6.5 133.8 134.4 0.6 1.2 146.9 148.5 1.6 0.5 Main 150.0 151.0 1.0 1.2 Main 169.7 170.9 1.2 2.9 Main 230.0 235.6 5.6 0.9 Main BA-20-28 113.5 116.9 3.4 0.6 North Corridor 122.2 123.0 0.8 1.0 North Corridor BA-20-29 166.3 167.0 0.7 2.3 Main 240.0 245.2 5.2 26.6 Main Including 242.0 243.5 1.5 91.3 277.5 278.5 1.0 1.1 North Dipper (Main) 316.2 316.9 0.7 1.9 North Dipper 333.0 334.0 1.0 1.1 352.0 353.0 1.0 0.6 North Dipper 386.0 388.5 2.5 3.4 South BA-20-30 187.5 194.0 6.5 1.2 Main 198.0 200.0 2.0 0.6 212.8 217.0 4.2 0.6 266.0 268.6 2.6 1.1 387.1 387.7 0.6 0.5
1) The meterage represents the length of the drilled lengths.
2) Estimated true widths for the interpreted Main, North, and South Zones range from at least 50% to 90% of the interval core length. The estimated true widths of the North Dipper and North Corridor Zones are unknown.
3) The mineralized intervals listed are above 0.5 g/t Au.
Five holes intersected the Main Zone (BA-20-23; 25; 27; 29 and 30). Highlights include 8.6 g/t Au over 1.6 m including 12.3 g/t Au over 1.1 m in hole BA-20-23 (Figure 2).
Two holes were drilled to target the North Zone (BA-20-23 and 26). Best results included 15.6 g/t Au over 2.0 m including 44.2 g/t Au over 0.7 m in hole BA-20-23 (Figure 3).
The latest drilling has intersected the Main and South Zones of which the best intervals returned: 26.6 g/t Au over 5.2 m including 91.3 g/t Au over 1.5 m and 3.4 g/t Au over 2.5 m respectively in hole BA-20-29 (Figure 4).
Moneta Porcupine to acquire Garrison project in Ontario
Moneta Porcupine Mines Inc. has entered into a definitive share purchase agreement with O3 Mining Inc. pursuant to which Moneta will acquire all of the issued and outstanding shares of Northern Gold Mining Inc., a wholly owned subsidiary of O3 Mining, which owns 100 per cent of the Golden Bear assets, including the Garrison gold project located adjacent to and contiguous with Moneta’s Golden Highway project in the Timmins gold camp.Read More
Under the terms of the Purchase Agreement, O3 Mining shall receive approximately 150 million common shares of Moneta (“Moneta Shares”). Upon completion of the Transaction, and prior to the financing described below, O3 Mining is expected to own approximately 30% of the outstanding Moneta shares.
Concurrent with the Transaction, Moneta will raise approximately $20 million in equity.
Transaction Highlights:Creation of a leading gold exploration and development company with 3,967,000 ounces (oz) gold (Au) in the indicated category and 4,399,000 oz Au in the inferred category located in the prolific Timmins Gold Camp3,335,000 oz Au open pit indicated gold resources and 2,270,000 oz Au open pit inferred gold resources632,000 oz Au underground indicated gold resources and 2,129,000 oz Au underground inferred gold resourcesAddition of 1,822,000 oz Au in the indicated category and 1,062,000 oz Au in the inferred category to Moneta’s mineral inventory immediately adjacent to the Golden Highway projectSubstantial development and operating synergies through an integrated project Potential for a much larger scale project than originally envisioned for the Preliminary Economic Assessment (“PEA”) on the South West deposit announced in September 2020Potential starter pit at Garrison with outcropping gold resources at higher grades and a lower strip ratio to augment the development of Moneta’s open pit resourcesAddition of 9,269 hectares (ha) (92.69 square kilometres (sq.km)) of adjacent and contiguous prospective ground to Moneta’s claim base in the Timmins Gold CampConcurrent $20 million equity financing to fund an aggressive drill campaignEnhanced capital markets profile and exposurePlatform for further district consolidation
Gary O’Connor, CEO of Moneta, commented; “The acquisition of the Golden Bear assets will transform Moneta into one of the largest gold development companies in North America with a significant resource and land holding in Canada’s most prolific gold mining camp. The Golden Bear assets, including the Garrison Gold deposits, are adjacent to our flagship Golden Highway project and provide significant synergies and multiple options for the development of our gold resources. Moneta will hold 3,967,000 ounces of indicated gold resources and 4,339,000 million ounces of inferred gold resources including both high-grade bulk tonnage underground deposits and near surface open pit resources. With completion of the proposed equity financing, the Company will be well funded to test the expansion potential of the integrated project. The Transaction provides a good endorsement of our project and adds a highly successful project development company as a partner”.
Jose Vizquerra, President and CEO of O3 Mining, commented: “O3 Mining is pleased to unlock value for our shareholders through our investment in, and support of, Moneta, and the possible future development of a large and long-life gold project in Timmins, Ontario – one of Canada’s most productive gold camps. The consolidation of these two historically fractioned mining camps will allow for a more systematic exploration strategy going forward, and unlock value for our shareholders and other Moneta shareholders alike as the project develops. We look forward to partnering with Moneta’s management team, through our board representation, and being part of Moneta’s growth story in the Timmins Mining Camp, in our role as a significant shareholder”.
Benefits to Shareholders
The Transaction is expected to result in the following benefits for our shareholders:One of the largest undeveloped gold mining projects in North America Potential for a much larger scale project than originally envisioned in the PEA studies recently completed on the Golden Highway and Garrison gold projects (The “Tower Gold Project”) with substantial economic benefits to be realized from operational and development synergiesLand position increased by 73% for resource expansion in the prolific Timmins Gold CampPotential starter pit at Garrison containing 1,070,000 oz Au at a grade of 1.04 g/t Au at a low strip ratio (2.7:1) and a cash production cost of US$721/oz of Au with outcropping gold mineralization to augment the development of Moneta’s open pit resourcesSignificant increase of gold resources in the indicated categoryCombined exploration agreements and consolidation of good working relations with the Wahgoshig First Nation Continued resource expansion potential and opportunities
The Transaction is subject to approval by a simple majority of the votes cast by Moneta shareholders, TSX approval and other closing conditions customary in transactions of this nature.
The Purchase Agreement includes, among other things, mutual non-solicitation provisions, a customary “fiduciary out” provision of Moneta and a right for O3 Mining to match superior proposals and a $1.42 million termination fee payable by Moneta to O3 Mining under certain circumstances.
Concurrent with closing of the Transaction, Moneta and O3 Mining will enter into an investor rights agreement (the “Investor Rights Agreement”) pursuant to which the Moneta board of directors shall be reconstituted to consist of eight individuals with O3 Mining entitled to nominate two directors and one newly appointed independent director to be agreed upon by the parties. Additionally, (i) for so long as O3 Mining holds greater than 25% of the issued and outstanding Moneta Shares, O3 Mining shall have the right to nominate two nominees for election as directors of Moneta; and (ii) for so long as O3 Mining holds greater than 10% of the issued and outstanding Moneta Shares, O3 Mining shall have the right to nominate one nominee for election as a director of Moneta and one nominee to the Technical Committee of the Moneta board of directors to be established following the closing of the Transaction. The Investor Rights Agreement includes, among other things, pre-emptive and top-up rights in favour of O3 Mining, a standstill provision for a period of 2 years and a share transfer restriction provision effective until December 31, 2022.
Moneta appointed a special committee of independent directors to consider and make a recommendation with respect to the Transaction. Based in part on the unanimous recommendation of the special committee of Moneta, the Purchase Agreement has been unanimously approved by the board of directors of Moneta. The Purchase Agreement has also been unanimously approved by the board of directors of O3 Mining. The Moneta board of directors recommends that shareholders vote in favor of the Transaction.
Maxit Capital LP has provided a fairness opinion to the board of directors of Moneta. The fairness opinion stated that, as of the date thereof and, based upon and subject to the assumptions, limitations and qualifications stated in such opinion, the consideration received under the Purchase Agreement is fair, from a financial point of view, to the Moneta shareholders.
Directors of Moneta holding an aggregate of 16.49% of the outstanding shares have entered into customary voting and support agreements with O3 Mining to vote in favour of the Transaction, subject to certain exceptions.
Moneta also intends to consolidate its share capital on a 6 for 1 basis (the “Consolidation”), subject to the receipt of all necessary approvals, following the closing of the Transaction. The Consolidation Resolution requires approval by not less than two-thirds (66 2/3%) of the votes cast by the Moneta shareholders present in person, or represented by proxy, at Moneta shareholder meeting.
Full details of the Transaction and other business of the Moneta shareholder meeting will be included in a Moneta management information circular that is expected to be mailed to Moneta shareholders in February 2021. It is anticipated that the Moneta shareholder meeting and the closing of the Transaction will take place in the second quarter of 2021.
The Company has entered into an agreement with Paradigm Capital Inc. (“Paradigm”) and Dundee Goodman Merchant Partners (“Dundee”) on behalf of a syndicate of underwriters (together with Paradigm and Dundee, the “Underwriters”), in connection with a “bought deal” private placement offering (the “Bought Deal Offering”) for aggregate gross proceeds of approximately C$17,000,000. The Bought Deal Offering will consist of 30,435,000 common shares of the Company that qualify as “flow-through shares” (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) (the “Flow Through Shares”) at a price of C$0.46 per Flow Through Share and 9,375,000 common shares (“Hard Dollar Shares”) at a price of C$0.32 per Hard Dollar Share.
In addition, the Company has granted the Underwriters an option to purchase that number of additional Flow Through Shares and/or Hard Dollar Shares on the terms described above for additional aggregate gross proceeds of up to approximately C$2,550,000, exercisable up to 48 hours prior to the closing of the Bought Deal Offering.
Concurrent with the Bought Deal Offering, Moneta is also undertaking a non-brokered private placement (together with the Bought Deal Offering, the “Offerings”) of subscription receipts (the “Subscription Receipts”) at a price of C$0.32 per Subscription Receipt for gross proceeds of up to C$3,000,000. The proceeds from the sale of the Subscription Receipts are expected to be deposited into escrow pending satisfaction of certain escrow release conditions, including closing of the Transaction. At the time the Transaction closes, each Subscription Receipt will be exchanged for one common share of the Company.
The Company will use an amount equal to the gross proceeds received by the Company from the sale of the Flow Through Shares, pursuant to the provisions in the Income Tax Act (Canada), to incur or be deemed to incur eligible “Canadian exploration expenses” that qualify as “flow-through mining expenditures” as both terms are defined in the Income Tax Act (Canada) (the “Qualifying Expenditures”) on future and current properties of the Company or a subsidiary thereof on or before December 31, 2022, and to renounce all the Qualifying Expenditures in favour of the subscribers of the Flow Through Shares effective on or before December 31, 2021. The proceeds from the sale of the Hard Dollar Shares and Subscription Receipts will be used for exploration and development activities on future and current properties of the Company or a subsidiary thereof and for general corporate purposes.
The Bought Deal Offering is expected to close on or about February 4, 2021. The Offerings are subject to certain closing conditions including the approval of the Toronto Stock Exchange. All securities issued pursuant to the Offerings will have a hold period of four months and one day.
Completion of the Transaction is not contingent on completion of the Offerings and completion of the Bought Deal Offering is not contingent on completion of the Transaction.
Moneta has engaged Maxit Capital LP (“Maxit”) as its financial advisor and Stikeman Elliott LLP as its legal counsel. Maxit has provided a fairness opinion to the Board of Directors of Moneta that, subject to the assumptions, limitations, and qualifications set out therein, the consideration paid by Moneta is fair, from a financial point of view to Moneta. O3 Mining has engaged Sprott Capital Partners LP as its financial advisor and Bennett Jones LLP as its legal counsel. Cassels Brock & Blackwell LLP is acting as counsel for the Underwriters.
Management will host a webcast and conference call to discuss the results of the transaction accompanied by Jose Vizquerra, President and CEO of O3 Mining, on Thursday January 14th, 2021 at 11:00 am (EST).
Conference call numberToll Free Dial-In Number: (833) 772-0367International Dial-In Number: (343) 761-2596
A replay of the conference call will be available at 2:00 pm on the Company’s website and by calling (800) 585-8367 or (416) 621-4642, Conference ID 9741619.
About the Golden Bear Assets
O3 Mining holds 9,269 ha of prospective land within the Golden Bear project located adjacent to or in near proximity to Moneta’s Golden Highway project, 100 km east of Timmins. O3 Mining completed an updated resource estimate and preliminary economic assessment (PEA) study on the Garrison Gold project within the Golden Bear project in December 2020. The study highlighted a measured and indicated open pit resource of 1,822,000 ounces contained within 66.3 Mt @ 0.86 g/t Au and an inferred open pit resource of 1,062,000 ounces contained within 45.3 Mt @ 0.73 g/t Au at a 0.30 g/t Au cut-off. The PEA study showed an open pit mining operation consisting of a 12-year mine life with an after-tax NPV5% of C$321MM, IRR of 33% and a 2.3 year payback. The project envisaged open pit mining producing 121,000 oz/pa in years 1 to 8 (94,000 oz/pa LOM), at a strip ratio of 2.7:1 at a cash cost of US$721/oz using a gold price of US$1,450/oz and an exchange rate of C US$0.75/C$.
Moneta’s land package in the Timmins Gold Camp covers 12,742 hectares (ha) including six gold projects plus a joint venture with Kirkland Lake Gold Corporation (TSX: KL) covering 4,334 ha. The Company’s flagship project, Golden Highway Gold Project is located 100 km east of Timmins and hosts a total indicated resource of 2,145,000 ounces gold contained within 55.3 Mt @ 1.21 g/t Au and a total of 3,337,000 ounces gold contained within 49.7 Mt @ 2.09 g/t Au in the inferred category at a 2.60 g/t Au at South West, 3.00 g/t Au cut-off for the other underground deposits and 0.30 g/t Au for the open pit deposits. The project includes a total of 1,512,000 ounces of open pit indicated resources contained within 50.5 Mt @ 0.93 g/t Au and 1,207,000 ounces of open pit inferred resources contained within 34.0 Mt @ 1.10 g/t Au. The project also includes 632,000 ounces of indicated underground resources contained within 4.9 Mt @ 4.05 g/t Au and 2,128,000 ounces of inferred underground resources within 15.7 Mt @ 4.21 g/t Au.
A PEA study was completed in September 2020 on the South West underground gold deposit, one of 6 deposits located on the Golden Highway project, and highlighted an underground bulk mining operation consisting of an 11-year mine life with an after-tax NPV5% of C$236MM, IRR of 30% and a 3.4 year payback, generating C$371MM LOM after-tax free cash flow. The project envisaged producing 76,000 oz/pa at a cash cost of US$590/oz at a gold price of US$1,500/oz and an exchange rate of US$0.77/C$. The open pit resources and new underground discoveries have not yet been subjected to a preliminary economic assessment study at Golden Highway.
Table 1: New Moneta; Mineral ResourcesOpen Pit Underground Deposit Tonnes Grade Ounces Tonnes Grade Ounces (t) (g/t) (oz) (t) (g/t) (oz) South West* Indicated 4,530,000 4.07 592,000 Inferred 9,607,000 4.01 1,238,000 Windjammer South* Indicated 40,582,000 0.84 1,100,000 6,000 3.90 1,000 Inferred 28,956,000 1.10 1,028,000 143,000 4.06 19,000 Westaway/West Block* Indicated Inferred 4,367,000 4.71 662,000 55* Indicated 9,896,000 1.30 413,000 Inferred 5,079,000 1.10 180,000 123,000 4.65 18,000 Discovery* Indicated 141,000 3.49 16,000 Inferred 658,000 4.00 85,000 Windjammer North* Indicated 182,000 3.98 23,000 Inferred 813,000 4.08 107,000 Garcon** Indicated 20,923,000 0.82 552,000 Inferred 7,056,000 0.87 197,000 903** Indicated 27,558,000 0.84 747,000 Inferred 30,760,000 0.69 682,000 Jonpol** Indicated 17,786,000 0.91 523,000 Inferred 7,521,000 0.76 183,000 Total Indicated 116,745,000 0.89 3,335,0004,859,000 4.05 632,000 Total Inferred 79,372,000 0.89 2,270,00015,711,000 4.21 2,129,000
*Micon International Ltd, December 08, 2020, **Ausenco Engineering Canada Ltd, December 14, 2020Figure 1: Moneta: Timmins Gold Camp ClaimsTo view an enhanced version of Figure 1, please visit:https://orders.newsfilecorp.com/files/4852/72051_9bd2138cd406699a_002full.jpgFigure 2: Moneta; Mineral Resource Location MapTo view an enhanced version of Figure 2, please visit:https://orders.newsfilecorp.com/files/4852/72051_9bd2138cd406699a_003full.jpg
O3 Mining to sell Garrison to Moneta for 149.5M shares
O3 Mining Inc. has entered into a definitive share purchase agreement with Moneta Porcupine Mines Inc., pursuant to which it has agreed to sell its wholly owned subsidiary, Northern Gold Mining Inc., in exchange for 149,507,273 common shares of Moneta, representing 30.1 per cent of the outstanding Moneta shares. Northern Gold owns 100% of the Golden Bear assets, including the Garrison gold project (“Garrison Project”), in the Kirkland Lake district of the Timmins gold mining camp in Ontario, Canada. Garrison is located adjacent to the Golden Highway Project where Moneta recently declared a mineral resource estimate of 2,144,200 ounces (oz) of indicated mineral resources and 3,335,300 oz of inferred mineral resources.Read More
The strategic consolidation of the Garrison and Golden Highway Projects under Moneta will create a leading gold development company in the prolific Timmins gold mining camp, allowing for their more systematic exploration and combined development in partnership with O3 Mining. This divestiture is part of O3 Mining’s broader corporate strategy to unlock value for its shareholders and maintain exposure to the development potential of the Garrison Project while allowing the Corporation to focus its resources on advancing its core assets. Its core assets are the Marban and Alpha gold properties situated in Quebec, Canada, where it is currently working to expand its gold mineralization through an extensive 150,000-metre drilling campaign with 12 drilling rigs.
Jose Vizquerra, President and CEO of O3 Mining, commented: “O3 Mining is pleased to unlock value for our shareholders through our investment in, and ongoing support of, our new partner, Moneta. This transaction will allow O3 Mining to partner in the future development of a large and long-life gold project situated in one of the world’s most famous gold producing districts through the consolidation of these two projects and their respective land positions. We look forward to partnering with Moneta’s management team, through our board representation and in our role as Moneta’s largest shareholder, and being part of its growth story. O3 Mining aims to be a supportive partner to Moneta as it advances the Garrison and Golden Highway Projects through the formation of a joint technical committee, board representation, and its ability to participate in future financings to maintain its pro-rata ownership position.”
Gary O’Connor, CEO of Moneta, commented: “The partnership with O3 Mining through the acquisition of the Golden Bear assets will transform Moneta into one of the largest gold development companies in North America with a significant resource and landholding in Canada’s most prolific gold mining camp. The Golden Bear assets, including the Garrison Gold deposits, are adjacent to our flagship Golden Highway project and provide significant synergies and multiple options for the development of our gold deposits. Moneta will hold approximately 4.0 million ounces of indicated gold resources and 4.4 million ounces of inferred gold resources including both high-grade bulk tonnage underground deposits and near-surface open pit resources, and access to the technical capabilities of O3 Mining team. With the completion of a proposed concurrent equity financing, Moneta will be well funded to test the expansion potential of the integrated project. We are excited about this transaction; it provides excellent value for the shareholders of both companies.”
- Creation of a leading gold development company with 4.0 million ounces of gold (Au) in the indicated mineral resource category and 4.4 million ounces of Au in the inferred mineral resource category and mineral inventory expansion opportunities on the combined landholdings of over 20,000 hectares in the prolific Timmins gold mining camp in Ontario, Canada
- Partnership between O3 Mining and Moneta under an investor rights agreement and including the formation of a joint technical committee, the right of O3 to nominate two directors for election to the board of directors of Moneta, and the right to participate in future financings to maintain its pro-rata ownership position
- Unlocking substantial developmental and operating synergies by consolidating the Garrison and Golden Highway projects
- Potential starter pit at Garrison with outcropping gold resources at higher grades and a lower strip ratio
- The overall footprint of the facilities can be reduced as common buildings, process plant area, and tailings storage areas are combined
- Enhanced capital markets profile and value proposition platform for further district consolidation opportunities
- Creation of a district-scale mining company under Moneta with enhanced critical mass which can command greater financial support from institutions to facilitate the execution of its business plan.
The Transaction is subject to the approval of Moneta’s shareholders at a special meeting expected to be held in April 2021. In addition, the Transaction is subject to the receipt of certain regulatory and stock exchange approvals and other customary closing conditions for a transaction of this nature. The Agreement includes, among other things, customary mutual non-solicitation provisions, a “fiduciary out” provision of Moneta, a right to match superior proposals by O3 Mining and a C$1.42 million termination fee payable by Moneta to O3 Mining under certain circumstances.
Concurrent with closing of the Transaction, O3 Mining and Moneta will enter into an investor rights agreement (the “Investor Rights Agreement”) pursuant to which the board of directors of Moneta will be reconstituted to consist of eight individuals, with O3 Mining entitled to nominate two directors and one newly appointed independent director to be agreed upon by the parties. Additionally, for a period of two years, O3 Mining shall have the right to nominate two nominees for election as directors of Moneta and, thereafter, for so long as O3 Mining holds greater than * 25% of the issued and outstanding Moneta Shares, O3 Mining shall have the right to nominate two nominees for election as directors of Moneta, and (y) 10% of the issued and outstanding Moneta Shares, O3 Mining shall have the right to nominate one nominee for election as a director of Moneta. The Investor Rights Agreement includes, among other things, pre-emptive and top-up rights in favour of O3 Mining, a 24-month standstill provision in favour of Moneta, and certain other restrictions in respect of O3 Mining’s dealings in Moneta Shares (including a prohibition from selling the Moneta Shares held by O3 Mining until December 31, 2022).
The directors of Moneta, collectively holding approximately 16.5% of the outstanding Moneta Shares, have entered into voting support agreements and have agreed to vote in favour of the Transaction, subject to certain exceptions. Moneta also intends to consolidate its share capital on a 6:1 basis, subject to the receipt of all necessary approvals, on closing of the Transaction.
In connection with the Transaction, Moneta will raise approxiamately C$20 million in equity, including the C$17 million Bought Deal Offering, as further described below.
Moneta entered into an agreement with Paradigm Capital Inc. (“Paradigm”) and Dundee Goodman Merchant Partners (” Dundee “), on behalf of a syndicate of underwriters (collectively, with Paradigm and Dundee, the “Underwriters”), in connection with a “bought deal” private placement offering (the “Bought Deal Offering”) for aggregate gross proceeds of approximately C$17 million. The Bought Deal Offering will consist of 30,435,000 common shares of Moneta that will qualify as “flow-through shares” (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) (the “Flow-Through Shares”) at a price of C$0.46 per Flow-Through Share and 9,375,000 common shares of Moneta (“Hard Dollar Shares”) at a price of C$0.32 per Hard Dollar Share.
In addition, Moneta has granted the Underwriters an option, exercisable in whole or in part up to 48 hours prior to the closing of the Bought Deal Offering, to purchase that number of additional Flow-Through Shares and/or Hard Dollar Shares on the same terms described above for additional aggregate gross proceeds of up to approximately C$2.55 million.
Concurrent with the Bought Deal Offering, Moneta will also undertake a non-brokered private placement (together with the Bought Deal Offering, the “Offerings”) of subscription receipts of Moneta (the “Subscription Receipts”), at a price of C$0.32 per Subscription Receipt, for gross proceeds of up to C$3 million. In conjunction with the closing of the Transaction, each Subscription Receipt will be exchanged for one Moneta Share.
Moneta will use an amount equal to the gross proceeds from the sale of the Flow-Through Shares, pursuant to the provisions in the Income Tax Act (Canada), to incur or be deemed to incur eligible “Canadian exploration expenses” that qualify as “flow-through mining expenditures” as both terms are defined in the Income Tax Act (Canada) (the “Qualifying Expenditures”) on future and current properties of Moneta or a subsidiary thereof on or before December 31, 2022, and to renounce all the Qualifying Expenditures in favour of the subscribers of the Flow-Through Shares effective on or before December 31, 2021. The proceeds from the sale of the Hard Dollar Shares and Subscription Receipts will be used for exploration and development activities on future and current properties of Moneta or a subsidiary thereof and for general corporate purposes.
Completion of the Transaction is not contingent on completion of the Offerings and completion of the Bought Deal Offering is not contingent on completion of the Transaction.
The Offerings are subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals including the approval of the Toronto Stock Exchange. The securities to be issued under the Offerings will have a hold period of four months and one day from the applicable closing date in accordance with applicable securities laws.
O3 Mining has engaged Sprott Capital Partners LP as its financial advisor and Bennett Jones LLP as its legal counsel. Moneta has engaged Maxit Capital LP as its financial advisor and Stikeman Elliott LLP as its legal counsel.
Moneta’s management will host a conference call to discuss the Garrison transaction on Thursday January 14, 2021 at 11:00 a.m. (Eastern time). O3 Mining’s President and CEO, Jose Vizquerra, and Moneta’s CEO, Gary O’Connor, will participate in this conference call.
Conference call number
Toll Free Dial-In Number: (833) 772-0367
International Dial-In Number: (343) 761-2596
About O3 Mining Inc.
O3 Mining, which forms part of the Osisko Group of companies, is a mine development and emerging consolidator of exploration properties in prospective gold camps in Canada – focused on projects in Quebec and Ontario – with a goal of becoming a multi-million ounce, high-growth company.
O3 Mining is well-capitalized and holds a 100% interest in properties in Quebec (133,557 hectares). The Corporation controls 66,064 hectares in Val-d’Or and over 50 kilometres of strike length of the Cadillac-Larder Lake Fault. O3 Mining also has a portfolio of assets in the Chibougamau region of Quebec.
Westhaven Increases Bought Deal Public Offering to C$13 Million
VANCOUVER, British Columbia, Jan. 14, 2021 (GLOBE NEWSWIRE) — Westhaven Gold Corp. (TSX-V:WHN) (“Westhaven” or the “Company”) is pleased to announce that it has agreed with Raymond James Ltd. (the “Underwriter”), in connection with the previously announced bought deal offering of units of the Company (the “Units”) at a price of C$0.70 per Unit, to increase the size of the offering to C$13 million (the “Offering”).Read More
Each Unit will consist of one common share of the Company and one-half common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one common share of the Company for an exercise price of C$1.00 per share for a period of two years from the Closing Date (as hereinafter defined).
The Company has agreed to grant Raymond James Ltd. an option (the “Over-Allotment Option”), exercisable in whole or in part at the sole discretion of the Underwriter, at any time for a period of 30 days from and including the closing of the Offering, to purchase from the Company up to an additional 15% of the Units sold under the Offering, on the same terms and conditions of the Offering to cover over-allotments, if any, and for market stabilization purposes.
The net proceeds from the Offering will be used to fund the exploration and development of the Company’s mining properties in British Columbia including Shovelnose, drilling to complete a maiden resource estimate, working capital and general corporate purposes.
The Units will be offered by way of short form prospectus in each of the provinces of Canada (except the Province of Quebec), pursuant to National Instrument 44-101 – Short Form Prospectus Distributions. The Units will not be offered or sold in the United States except under Rule 144A or in such other manner as to not require registration under the United States Securities Act of 1933, as amended.
The Offering is scheduled to close on or before February 4, 2021 (the “Closing Date”) and is subject to certain conditions including, but not limited to, receipt of all regulatory approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
Westhaven benefits from the B.C. Mining Exploration Tax Credit (METC) which is a permanent incentive to support investment in mining. The METC is a refundable B.C. income tax credit for eligible individuals and corporations conducting grassroots mineral exploration in B.C. and is worth 30% of qualified mining exploration expenditures.
The securities offered in the Offering have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Orea Mining arranges $1-million private placement
Orea Mining Corp. has arranged a non-brokered private placement for gross proceeds of up to $1-million.Read More
The Private Placement is for 5,882,353 units at a price of CAD$0.17 per unit. Each unit is comprised of one common share of Orea (a “Share”), and a half warrant. Each full warrant entitles the holder, on exercise, to purchase one Share at a price of CAD$0.30, for a period of 18 months from the closing date of the Private Placement.
A finder’s fee of 7 per cent payable in units will be paid in connection with the Private Placement in accordance with the policies of the Toronto Stock Exchange (the “TSX”). The Private Placement is subject to approval by the TSX.
Orea Mining intends to use the proceeds of the Private Placement for general working capital purposes.
Amerigo’s MVC produces 56.2M lb Cu in 2020
Amerigo Resources Ltd. has released its 2020 production results from Minera Valle Central, the company’s 100-per-cent-owned operation located near Rancagua, Chile.Read More
MVC produced 56.2 million pounds of copper at a cash cost of $1.76 per pound and 1.4 million lb of molybdenum. All dollar amounts in this news release refer to United States dollars.
Annual copper production results were 1 per cent below the latest guidance provided in the Q3 2020 production results. Annual molybdenum production was 6 per cent higher and annual cash cost was $0.02/lb lower than the company’s latest guidance.
PRODUCTION RESULTS 2020 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Fresh tailings Tonnes per day 123,690 136,011 119,285 119,435 120,037 Operating days 353 92 92 91 78 Tonnes processed 43,662,625 12,512,980 10,974,235 10,868,556 9,306,854 Copper grade 0.134% 0.135% 0.136% 0.137% 0.125% Copper recovery 19.9% 19.3% 20.4% 20.3% 19.9% Copper produced (million lbs) 25.6 7.17 6.68 6.66 5.13 Cauquenes tailings Tonnes per day 47,453 54,541 54,292 35,875 43,763 Operating days 326 91 79 89 67 Tonnes processed 15,488,590 4,985,031 4,362,040 3,164,898 2,976,621 Copper grade 0.251% 0.247% 0.245% 0.257% 0.261% Copper recovery 34.2% 34.2% 34.5% 34.9% 33.4% Copper produced (M lbs) 29.31 9.28 8.00 6.31 5.72 Fresh tailings plus cauquenes (M lbs) 54.95 16.45 14.68 12.97 10.85 Slag processing Tonnes processed 14,960 - - - 14,960 Copper grade 4.6% - - - 4.6% Copper recovery 80% - - - 80% Copper produced (M lbs) 1.23 - - - 1.23 Copper produced (M lbs) 56.18 16.45 14.68 12.97 12.08 Copper delivered (M lbs) 56.34 15.90 14.92 13.70 11.82 Cash cost ($/lb) 1.76 1.65 1.80 1.72 1.94 Molybdenum produced (M lbs) 1.41 0.50 0.37 0.35 0.19 Molybdenum sold (M lbs) 1.46 0.50 0.37 0.36 0.23
Q4 2020 results
In Q4 2020, MVC produced 16.5 M lbs of copper at a cash cost of $1.65/lb and 0.5 M lbs of molybdenum, which represent production increases of 12% for copper and 35% for molybdenum from Q3-2020.
Copper production was positively impacted by higher tonnage processing from fresh tailings and to a lesser degree from Cauquenes and from more operating days at Cauquenes but was 3% below the latest quarterly guidance due to lower-than-expected recoveries.
In Q4-2020, molybdenum production was 19% over guidance and cash cost was within guidance.
Q4 2020 PRODUCTION RESULTS SUMMARIZED October, 2020 November, 2020 December, 2020 Q4 2020 Fresh tailings Tonnes per day 135,574 136,535 137,627 136,011 Operating days 31 30 31 92 Tonnes processed 4,170,564 4,096,062 4,246,354 12,512,980 Copper grade 0.134% 0.134% 0.137% 0.135% Copper recovery 19% 19% 19% 19% Copper produced (M lbs) 2.39 2.31 2.47 7.17 Cauquenes tailings Tonnes per day 53,516 55,271 54,919 54,541 Operating days 31 30 30 91 Tonnes processed 1,643,851 1,658,130 1,683,050 4,985,031 Copper grade 0.249% 0.250% 0.243% 0.247% Copper recovery 35% 34% 34% 34% Copper produced (M lbs) 3.12 3.09 3.07 9.28 Copper produced (M lbs) 5.51 5.40 5.54 16.45 Cash cost ($/lb ) 1.61 1.69 1.67 1.65 Molybdenum produced (M lbs) 0.16 0.17 0.17 0.50
Water reserves at Colihues at year end 2020 remained high at 8.5 million cubic meters, which are sufficient for MVC to maintain projected Cauquenes tonnage processing through 2021.
MVC’s operations have continued without any significant disruptions due to Covid-19.
In 2021, Amerigo expects to produce 61.0 M lbs of copper and 1.5 M lbs of molybdenum at a cash cost of $1.79/lb. The following quarterly production breakdown is currently expected based on MVC’s mine plan, including grade and projected recoveries in each quarter.
QUARTERLY PRODUCTION BREAKDOWN Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Copper production (M lbs) 15.6 15.6 14.7 15.1 61.0 Molybdenum production (M lbs) 0.4 0.4 0.3 0.4 1.5 Cash cost ($/lb) 1.83 1.74 1.77 1.81 1.79
Production in H1 is expected to be stronger than in H2 given that MVC and El Teniente’s annual plant shutdown will take place in September and October instead of in Q1, as has been the case historically. MVC anticipates losing 8 production days due to the annual plant maintenance shutdown.
MVC has identified additional plant optimization initiatives together with its technical consultant 911Metallurgy Corp., most of which are expected to be completed by the end of Q2-2021, with some of the work continuing into Q3-2021. The Company’s 2021 production targets do not include any impact from the optimization work underway.
The Company’s 2021 cash cost forecast in this news release assumes a market copper price of $3.50/lb (2020: $2.80/lb), a molybdenum market price of $9.30/lb (2020: $8.8/lb) and an exchange rate of the CLP to the USD of $715 (2020: $792).
The projected 2021 cash cost is currently expected to be slightly higher than in 2020 due to a stronger projected CLP. A 10% change in molybdenum price could have a $0.02/lb impact on cash cost, and a 10% change on the CLP to USD foreign exchange rate could have an impact of $0.06/lb on cash cost.
At these assumed variables, the DET royalty would be $0.90/lb in 2021. The DET royalty is calculated on a sliding scale based on copper prices.
Projected 2021 EBITDA considering these combined variables is expected to be $50 million.
Annual sustaining capital expenditures (“Capex”) in 2021 are expected to be $5.3 million and capitalizable maintenance and strategic spares are expected to be $2.4 million. The most significant 2021 sustaining Capex project will be to further optimize the MVC water thickeners with a target increase in water recovery from 1,560 liters per second to 2,100 liters per second, at a cost of $3.6 million, followed by $0.7 million on miscellaneous plant improvements, $0.5 million on environmental safety and compliance projects and $0.5 million on information technology improvements at MVC.
With respect to MVC’s financial obligations, the Company currently expects the following to occur in 2021:
- a)MVC is expected to repay a $7.2 million loan due to El Teniente, which loan originated in 2020 in connection with price settlement adjustments. The loan will be repaid monthly in equal instalments of $0.6 million plus interest.
- b)MVC also expects to make two semi-annual bank loan payments of $4.7 million each plus interest in March and September. After these payments are made, MVC’s bank debt would be $37.5 million, currently due by September 2023. Under the terms of the loan agreement, MVC can make additional loan prepayments.
- c)Finally, MVC will make payments of approximately $1.3 million in connection with its molybdenum plant lease.
“We would like to thank our Amerigo and MVC employees and partners along with our shareholders for a successful 2020 which I believe is demonstrated in our production results. Despite the COVID-19 pandemic we were able to increase production consistently quarter to quarter. We look forward to 2021 and remain optimistic towards the sector and our industry,” stated Aurora Davidson, president and chief executive officer of Amerigo.
Release of 2020 results on Feb. 18, 2021
The Company will release its 2020 financial results at market open on Thursday, February 18, 2021.
Investor conference call on February 19, 2021
Amerigo’s quarterly investor conference call will take place on Friday, February 19, 2021 at 11:00 am Pacific Standard Time/2:00 pm Eastern Standard Time.
To join the call, please dial 1-800-806-5484 (Toll-Free North America) and enter passcode 1259759# to participate in the Amerigo Resources conference call.
The analyst and investment community are welcome to ask questions to management. Media can attend on a listen-only basis.