Tinka drills 9.1 m of 20.1% Zn at Ayawilca
Tinka Resources Ltd. has released new assay results for six diamond drill holes from the company’s 2020/2021 resource expansion and infill drill program at the Ayawilca project in Peru. Four holes are located at the Camp area (A20-180, 181, 182 and 183) and two holes at the South area (A21-185 and 187). The two holes at South Ayawilca intersected high-grade zinc-silver mineralization associated with massive sulphide mineralization over substantial widths and are expected to expand the indicated mineral resources at the project. Tinka has drilled approximately 7,600 metres in 21 completed holes during the 2020/2021 program. The company is compiling the drill data and completing geological interpretations in preparation for an updated mineral resource and preliminary economic assessment (PEA) scheduled for the middle of 2021. Assay results for the final four drill holes are still pending.Read More
- 4.1 metres at 17.7 per cent zinc and 34 grams per tonne silver from 302.9 m depth;
- 40.0 metres at 8.8 per cent zinc and 12 g/t silver from 324.0 m depth, including 9.1 metres at 20.1 per cent zinc and 23 g/t silver from 353.3 m depth.
- 1.7 metres (1) at 23.4 per cent zinc and 97 g/t silver from 133.3 m depth;
- 5.0 metres at 6.9 per cent zinc and 13 g/t silver from 289.6 m depth;
- 23.6 metres at 9.4 per cent zinc and 10 g/t silver from 304.3 m depth, including 9.6 metres at 12.5 per cent zinc and 14 g/t silver from 316.4 m depth.
- 1.3 metres (1) at 34.6 per cent zinc, 0.9 per cent lead and 190 g/t silver from 89.0 m depth.
- 5.9 metres at 11.4 per cent zinc, 1.9 per cent lead and 39 g/t silver from 225.2 m depth.
- 16.0 metres at 4.1 per cent zinc and 10 g/t silver from 240.0 m depth.
- 4.8 metres at 3.8 per cent zinc, 3.0 per cent lead and 93 g/t silver from 191.5 m depth;
- 3.9 metres at 21.1 per cent zinc and 33 g/t silver from 301.8 m depth.
- 6.0 metres at 3.0 per cent zinc, 2.1 per cent lead and 57 g/t silver from 202.0 m depth.
Mineralization is mostly associated with gently dipping sulphide mantos hosted in limestones. True thicknesses of the mantos are estimated to be at least 90 per cent of the downhole thicknesses. The intervals marked (1) are vein style hosted by sandstones and have an unknown true thickness.
President and chief executive officer of Tinka, Dr. Graham Carman, stated: “This is another set of strong drill results from Ayawilca. The results from the two South Ayawilca holes confirm that high-grade mineralization within the current indicated mineral resource boundary extends at least a further 80 metres to the northeast. Holes A21-185 and A21-187b were both infill holes, confirming our geological model and understanding of the geometry of the mineralization at South Ayawilca. These holes improve the confidence of our resource base.
“Our aim for this program has been to extend the indicated mineral resources at West Ayawilca southwards into the Camp area, and South Ayawilca further to the east. In both areas we have successfully discovered new zones of high-grade zinc and silver mineralization which will add value to the project. Eighty per cent of the holes in the program have now been reported. In the coming weeks we plan to advance the Ayawilca project with a resource update, carry out metallurgical testwork focusing on the silver-lead mineralization and begin work on a new PEA. The company remains in a strong position and is fully funded to complete this planned work. As the 2020/2021 drill program winds up we look forward to reporting the results of the remaining holes.”
The Ayawilca zinc zone contains an estimated 1.8 billion pounds of zinc and 5.8 million ounces of silver in the indicated category and 5.6 billion pounds of zinc and 25.2 million ounces of silver in the inferred category as sulphides (see news release dated Nov. 26, 2018). The Colqui silver zone 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 (see technical report dated July 2, 2019).
SUMMARY OF THE LATEST RESULTS FROM THE 2020/2021 DRILL PROGRAM AT AYAWILCA Drill hole From To Interval Zn Pb Ag In (m) (m) (m) (%) (%) (ppm) (ppm) A20-180 89.00 90.30 1.30 34.61 0.85 190 93 less than A20-181 225.20 231.10 5.90 11.41 1.93 39 1 and 313.80 314.50 0.70 24.90 0.02 17 3 A20-181a 240.00 256.00 16.00 4.07 0.08 10 1 A20-182 68.60 70.10 1.50 6.35 0.02 16 61 less than and 191.50 196.25 4.75 3.82 2.98 93 1 and 301.75 305.65 3.90 21.12 0.13 33 82 A20-183 163.20 163.60 0.40 29.90 0.04 86 295 less than and 202.00 208.00 6.00 3.04 2.06 57 1 less than and 279.00 286.70 7.70 1.79 2.16 69 1 A21-185 133.30 135.00 1.70 23.43 0.17 97 141 and 165.60 170.00 4.40 6.28 0.07 27 36 less than and 289.60 294.60 5.00 6.86 0.01 13 370 and 304.25 327.80 23.55 9.37 0.01 10 341 incl. 316.40 326.00 9.60 12.45 0.01 14 539 and 344.00 367.00 23.00 5.66 0.08 47 43 A21-187b 302.90 307.00 4.10 17.73 0.06 34 583 and 324.00 364.00 40.00 8.78 0.06 12 198 incl. 353.30 362.40 9.10 20.12 0.06 23 275
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, lead or copper and over 100 g/t silver are reassayed using precise ore-grade AAS (atomic absorption spectroscopy) techniques.
Altus consultant completes Bikoula strategic review
A strategic review by independent consultants Mining Plus U.K. Ltd. has been completed on Altus Strategies PLC’s 97-per-cent-owned high-grade Bikoula iron project, located in southern Cameroon. The Strategic Review will be used to determine the next steps for the development of the Project.Read More
Highlights:Strategic Review of high-grade Bikoula iron project in southern CameroonProcessing, product specification, development and shipment options reviewedHistorical drilling includes 30.8m at 57.9% Fe from 3.8 m (potential true width of interval)Bikoula hosts a deposit with a historic independent JORC compliant Mineral Resource Estimate of 46 million tonnes at 44% FeAt least 75% of the 13 km long priority target area remains untestedPrior metallurgical test-work yielded 62.26% Fe concentrate using gravity separationBikoula is located approximately 350 km by road from recently completed deep water portEnvironmental and Social Impact Assessment Study has been completed
Steven Poulton, Chief Executive of Altus, commented:
"We are pleased to report that independent consulting firm Mining Plus has completed a strategic economic review of the Company's high grade Bikoula iron project in southern Cameroon. The Project hosts a substantial colluvial iron weathered blanket, which rests above a primary iron deposit. The Strategic Review examined the processing, product specification and transportation options for Bikoula and will assist the Company in advancing the Project through next stages of development.
&#8216;'As previously reported, preliminary metallurgical test-work on representative samples from Bikoula has yielded a high grade 62.26% Fe concentrate, using gravity separation alone. With only 25% of the 13 km long strike length of Bikoula having been tested to date, we believe the Project has considerable exploration upside potential. Recent infrastructure improvements in the region, including a containerised deep-water port at Kribi as well as significant road improvements, are expected to further enhance the economics of the Project.
"The Project's economics are supported by the price of iron ore, which has traded above US$100/tonne since June 2020. The Company believes Bikoula represents an attractive standalone iron asset and we look forward to providing an update on the Project in due course."
Bikoula: Strategic Review
Mining Plus was engaged by the Company to produce an in-depth Strategic Review of the Project, analysing the work completed to date to create an updated financial model. The Strategic Review incorporates the potential positive impacts from recent infrastructure upgrades in Cameroon, including the completion of the deep water port at Kribi (located 350 km to the west of the Project) and the construction of new roads.
Mining Plus modelled the likely capital and operational expenditures, including transportation costs from the Project by road to Kribi. The likely product specification, processing routes and shipping options (including via container) were also reviewed. The Strategic Review will now be used by the Company to determine the next steps for developing the Project, including the potential to undertake a resource expansion drilling programme.
Bikoula: Project Summary
The 194 km2 Bikoula Project comprises the contiguous Bikoula and Ndjele exploration licences which are 99 km2 and 95 km2 in size respectively. Both of these licences were selected based on the presence of a significant magnetic anomaly coincident with historically mapped Banded Iron Ore Formation ("BIF"). The BIFs form the westerly strike extension of the Nkout iron deposit and are approximately 160 km northwest of the Mbalam iron deposit. A high resolution airborne magnetic survey completed by the Company has identified numerous priority drill targets.
Bikoula: Colluvial Blanket
Mineralisation at Bikoula comprises a blanket of colluvial haematite, which is typically mapped as 200-300m wide and reaches up to 500m wide in places. The colluvial blanket is located at surface and is typically up to 10m deep and reaches up to 23.7m based on drill undertaken by Altus. In places, it rests directly above a horizon of supergene enriched haematite, which in turn sits above a significant BIF.
Bikoula: Historic Work
As previously reported, Altus has undertaken systematic drilling and surface pitting over approximately 25% of the 13 km long Libi Hills Prospect.
Historic drilling by Altus
As previously reported, Altus has to date completed 48 diamond drill holes, totalling approximately 3,900m, at Bikoula. Over half of the holes intersected at least 20m of >40% Fe. Significant intersections (considered approximate true width) include:57.8m @ 51.4% Fe (including 30.8m at 57.9% Fe, from 3.8m)35.0m @ 55.9% Fe from 10.0m28.3m @ 49.9% Fe from 15.0m
JORC Mineral Resource Estimate
The Project hosts an iron deposit which is the subject of an historic independent Mineral Resource Estimate ("MRE") prepared by Coffey Mining South Africa (Pty) Ltd entitled "Mineral Resource Estimation and Classification of the Bikoula Iron Ore Project in Cameroon" dated April 2014 which Altus believes remains relevant and reliable. The MRE is reported in accordance with the JORC Code (the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves) under which an "inferred resource" is considered substantially similar to NI 43-101.
Table 1. JORC Inferred MRE (non-43-101), dated April 2014 (non-beneficiated) Zone Rock TypeTonnes(t) Fe(%)SiO2(%)P(%)TiO2(%)Al2O3(%)S(%)LOI3(%) Libi Colluvium39,000,00043.0 13.1 0.090.8 14.8 0.049.3 Supergene5,000,000 52.7 14.3 0.070.7 5.1 0.024.1 LomboColluvium1,000,000 43.6 22.0 0.090.4 8.1 0.036.2 Supergene1,000,000 38.9 35.3 0.080.2 4.4 0.023.4 Total 46,000,00044.2 13.9 0.080.7 13.4 0.038.5
Notes:The three dimensional block models were created using Inverse Distance Weighting in the estimation of all zonesNo cut-off grade considerations were made as modelling was based on lithology Loss on ignition
The key assumptions, parameters, and methods used to prepare the MRE were:Data from 48 diamond drill holes, totalling 3,889m and a database containing assay values for 1,300 samples.Coffey Mining South Africa (Pty) Ltd created a geological model based on the lithological logging and magnetic susceptibility data. A detailed statistical analysis was undertaken according to the geological model for each domain. Statistics for the raw and composited datasets were calculated. The compositing of the samples were undertaken for each domain. The mineralised layers were composited vertically into 5m composites.A geological model was constructed using Micromine modelling software. Grade estimation was undertaken using Datamine's Studio 3 software.No bulk density measurements were determined on the colluvial and supergene materials. Densities used in the mineral resource estimation were sourced from information on similar properties in the region.Half overall average drill hole spacing was used in the construction of the block model.The block sizes for the Lombo prospect and the northern portion of Libi prospect used 100m x 100m x 5m. The southern part of the Libi prospect used 250m x 500m x 5m. In all models, sub-celling was allowed to better represent the mineralisation volume.All the major oxides, total sulphur and loss on ignition (LOI) were estimated.Different search volumes were used for well-informed and less informed areas.A three-pass estimation strategy was applied to all models, applying an expanded and less restrictive sample search to the second and subsequent estimation passes, and only considered blocks not previously assigned an estimate. Inverse distance weighting technique (power 2) was used for all the domains.The grade estimation within the block model was validated by comparing the average block model grades with the average drillhole grades and by visual inspection. There were no material differences between these means.The MRE was classified based on drilling technique, logging quality, drill hole sampling recovery, sub-sampling techniques and sample preparation, quality of data, verification of assay, location of the sampling points, data density and distribution, database integrity, geological interpretation, modelling and estimation technique.
A Qualified Person has not done sufficient work to classify the historical MRE as a current mineral resource and Altus is not treating the historical MRE as a current mineral resource. However, it remains relevant to the Project and Altus believes it is also reliable. To verify the Historical Mineral Resource so that it can be considered a current mineral resource, a qualified resource consultant would need to review historical drilling data and prepare a mineral resource estimate in accordance with current resource methodology.
As previously reported, the colluvial and supergene mineralisation from Bikoula has been tested by Bureau Veritas (Perth) and SGS (Truro), respectively, and returned positive results, indicating a yield of 62.26% Fe concentrate from gravity separation alone.
The following figures have been prepared by Altus and relate to the disclosures in this announcement and are visible in the version of this announcement on the Company's website (www.altus-strategies.com) or in PDF format by following this link: https://altus-strategies.com/site/assets/files/5062/altus_nr_-_bikoula_17_march_2021.pdfLocation of the Bikoula Project in Cameroon is shown in Figure 1Magnetic survey results of the Bikoula Project is shown in Figure 2Location of Bikoula MRE in relation to magnetic anomalies is shown in Figure 3Priority targets at Bikoula are shown in Figure 4
Bikoula Project: Location
The 194 km2 Bikoula Project, comprising the Bikoula and Ndjele exploration licences, is located in southern Cameroon, approximately 150 km southeast of the capital city of Yaounde. The Project is accessible via a network of predominantly paved roads which also connect the Project to the recently constructed deep-water container port at Kribi. Bikoula is situated within 30 km from a proposed trans-Cameroon railway line that aims to service a number of iron deposits in the region, including the Mbalam and Nkout deposits, the latter of which is located directly along strike of the Project.
Bikoula Project: Geology
The Bikoula project was selected based on the presence of a significant magnetic geophysical signature. The Project area is underlain by the Ntem Unit of the Archaean Ntem Complex which is comprised of two main &#8216;series' – an intrusive group comprising tonalities and granodiorites, as well as a banded group made up of deformed granulitic gneisses. In addition, the complex hosts a number of discontinuous greenstone belts that are typically sheared and faulted, containing paragneisses, amphibolites, pyroxenites and banded iron formations.
Within the Project, metasedimentary rocks represent an interbedded sequence of exhalative chemical sediments and clastic units which weather near surface and grade into primary banded iron formations at depth. These steeply dipping iron-rich units trend along an approximately NW-SE strike and are sporadically cut by a number of E-W and NE-SW trending faults. Colluvial iron mineralisation at Bikoula comprises a blanket of unconsolidated weathered supergene BIF clasts, with grains of oxidised magnetite and depleted levels of silica. The colluvial material is usually found as a layer of variable thickness above BIF.
Canada Nickel accelerates expiry of warrants
Canada Nickel Company Inc. is accelerating the expiry date of its common share purchase warrants issued on Sept. 30, 2020, under the warrant indenture between TSX Trust Company and the company. Each of the warrants entitles the holder thereof to acquire one common share of the Company at a price of $2.10 per common share. As of March 16, 2021, 1,822,750 of the original 2,675,000 Warrants issued remain outstanding to be exercised.Read More
“The acceleration and exercise of these Warrants provides us additional runway to continue our drill program at our Crawford Nickel-Cobalt Sulphide Project, including our recently announced MacDiarmid nickel target once permits are received in early April, and progress the related feasibility study due for completion by the end of 2021,” commented Mark Selby, Chair and CEO of Canada Nickel.
Accelerated Expiry Date
The Company is entitled under the Warrant Indenture to accelerate the expiry date of the Warrants upon the occurrence of an Early Expiry Event (as defined in the Warrant Indenture). The Company has delivered to the Warrant Agent a notice of the occurrence of such Early Expiry Event and its election to accelerate the expiry date of the Warrants from September 30, 2022 to April 27, 2021 (the “Accelerated Expiry Date”).
Any Warrants that have not been exercised by 5:00 p.m. (Toronto time) on the Accelerated Expiry Date will automatically expire and no longer be exercisable.
Any questions regarding this acceleration or the exercise of the Warrants should be directed to the Company at: 647-256-1954 or email@example.com.
Kootenay Trenches 33.0 Meters of 2.67 gpt Gold Including 9.0 Meters of 5.29 gpt Gold at Male Gold Project, Mexico
VANCOUVER, BC, March 17, 2021 /CNW/ – Kootenay Silver Inc. (TSXV: KTN) (the “Company” or “Kootenay”) is pleased to announce the discovery of significant gold on its 100% owned Maria Elena gold project (“Male” or the “Property”), located approximately 100 kilometers south east of the city of Hermosillo in Sonora State, Mexico.Read More
Trenching conducted at the Property has exposed several exciting gold results. This program included a total of 8 trenches completed over four areas of the Property. Of the eight trenches, positive results from five (trenches 0,2,4,5,6) were received with results for the remaining trenches (1, 3 and 7) not encountering any significant veining or values. Highlights from the results received to date are as follows:
- 33 meters averaging 2.67 gpt gold
- Includes 9 meters of 5.29 gpt gold
- Includes 1 meter of 23.7 gpt gold
- 24 meters averaging 1.81 gpt gold
- Includes 8 meters of 3.98 gpt gold
- Includes 1 meter of 17.25. gpt gold
- 9 meters averaging 2.01 gpt gold
- Includes 1 meter of 15.45 gpt gold
Initial trenching was completed by an excavator with chip samples taken across one-meter lengths. Trench 0 returned narrow anomalous gold values to 0.38 gpt gold over one meter.
Gold mineralization is hosted by stock works of quartz and quartz carbonate veins formed by conjugate sets of veins striking northeast and northwest. These stock working veins form zones that range in apparent width, from a scale of one meter to over 30 meters. The zones form mineralized “structures” or trends that can be traced individually for hundreds of meters (generally 200 to 1000 meters). Further trenching is required to better determine true widths and continuity along strike.
The mineralized stock works are made of multiple veins that individually range from tens of centimeters to 1.7 meters in width. Numerous conjugate vein sets and associated stock work zones occur within a 1.5 by 1.5-kilometer area hosted within a diorite intrusion and are the source of the placer gold historically mined on the property.
Prior to trenching, earlier prospecting work by Kootenay indicated very anomalous gold in the quartz veins. Out of 426 select (prospector) grab samples and soils, 47% of the tests returned greater than 0.5 gpt gold, whereas 36% returned greater than 1 gpt gold and 16% retuned greater than 5 gpt gold. Individual gold values included highs of 260 gpt, 85 gpt, 81 gpt, 53 gpt and 51 gpt.
Historic activity at Male includes hundreds of dry placer pits that often tested into the gold bearing quartz veins in bedrock. The area is extensively covered by overburden and thus holds the possibility of hiding a potentially large gold deposit.
The gold is associated with irregular silver values exceeding 900 gpt however silver is generally low. Copper, lead and zinc is also anomalous with highs to 0.56%, 2.6% and 3.9%, respectively. Molybdenum and tungsten occur as well.
A 36-line kilometer ground magnetic survey has been conducted. Preliminary interpretation shows some association with magnetic trends striking northwest, north-south and northeast with the primary stock work trends. Interpretation of the mag data continues. Two IP lines which range about 2 kilometers each have also been run. These results are also being compiled.
Follow up steps involve interpretation of the geophysics to determine its usefulness in mapping the gold zones in covered zones, more trenching and then a decision on whether to drill or option the project.
The geophysical and trenching was conducted and paid for by a third-party with Kootenay submitting the trench samples for assay.
Sampling and QA/QC at Male
All technical information for the Columba exploration program is obtained and reported under a formal quality assurance and quality control (“QA/QC”) program. Samples reported were all taken in one meter long intervals and are chip samples. Samples were delivered by the Company to ALS Minerals (“ALS”) in Hermosillo. The samples are dried, crushed and pulverized with the pulps being sent airfreight for analysis by ALS in Vancouver, B.C. Analysis for silver, zinc, lead and copper and related trace elements was done by ICP four acid digestion, with gold analysis by 30-gram fire assay with an AA finish.
Frontier Lithium Welcomes former Chief Bart Meekis to its Board of Directors
SUDBURY, ON, March 17, 2021 /CNW/ – Frontier Lithium Inc. (TSX.V: FL) (OTCQB: LITOF) (FSE: HL2) (“Frontier” or “the Company”) is honoured to announce former Chief of Sandy Lake First Nation, Bart Meekis will be joining the Board of Directors. Bart Meekis is a member of the Oji-Cree First Nation of northwestern Ontario and resides in Sandy Lake, Ontario. Mr. Meekis previously served 16 years on the Sandy Lake First Nation council, including 4 years as Deputy Chief and 6 years as Chief.Read More
On council and as Chief, Mr. Meekis worked to improve communications and public relations, stabilize finance, and strengthen human resources. As Chief he worked on building partnerships to improve community infrastructure and housing, and essential power and road initiatives in the region.
Reginald (Rick) Walker, Chairman of Frontier Lithium commented “We are privileged to welcome Bart to Frontier Lithium’s Board of Directors. Bart’s knowledge and respect for the land, his life experiences, and wisdom will ensure that the communities of Deer Lake, Keewaywin, North Spirit Lake and Sandy Lake First Nations are further represented at the highest level of the Company. Bart has long been an advocate for sustainable, transparent and inclusive mineral development in the Oji-Cree region.”
Bart Meekis commented, “Over time I have grown to know and understand the Frontier Lithium family. We share a similar vision that offers hope, inspiration and opportunities to the youth of our northern communities.” Mr. Meekis added “I will continue my work with my elders, youth, our communities, and Frontier Lithium to help nurture a positive, progressive and mutually beneficial lithium resource development model in our region.”
FPX Files Amended PEA Technical Report
VANCOUVER, BC, March 17, 2021 /CNW/ – FPX Nickel Corp. (TSXV: FPX)(“FPX” or the “Company“) announces that, further to its news release dated September 9, 2020 and review by the British Columbia Securities Commission, it has filed an amended preliminary economic assessment (“PEA”) technical report (the “Amended Report”) for the Baptiste Project at its wholly-owned Decar Nickel District in central British Columbia. The amendment has not impacted the material components of the PEA, notably resources, metallurgy, mine plan, cost estimates, economic analysis and environmental matters.Read More
The Amended Report dated March 17, 2021 maintains an effective date of September 9, 2020 and can be found under the Company’s SEDAR profile and on the Company’s website.
The technical report dated September 9, 2020 has been amended solely to:
- Amend the certificates of certain Qualified Persons who contributed to the technical report;
- Include customary cautionary statements regarding the economic analysis included in the technical report;
- Amend language regarding site visits by Qualified Persons and their reliance on other experts; and
- Remove certain cut-off scenarios from tables providing sensitivity to various cut-off grades in the technical report.
At the PEA base case of US$7.75/lb nickel, the Baptiste Project is expected to generate an after-tax net present value (“NPV“) (8%) of US$1.7 billion and an after-tax internal rate of return (“IRR“) of 18.3%. A summary of the PEA highlights is provided in Table 1.
Table 1 – Baptiste Project PEA Results and Assumptions (all in US$)
|Pre-tax NPV (8% discount rate)||$2.93 billion|
|Payback period (pre-tax)||3.5 years|
|After-tax NPV (8% discount rate)||$1.72 billion|
|Payback period (after-tax)||4.0 years|
|Net cash flows (after-tax, undiscounted)||$8.73 billion|
|C1 operating costs 1||$2.74/lb nickel|
|AISC costs 2||$3.12/lb nickel|
|Processing throughput||120,000 tonnes per day|
|Mine life||35 years|
|Life-of-mine stripping ratio (tonnes:tonnes)||0.40:1|
|Life-of-mine average annual nickel production||99 million lbs.|
|Nickel price 3||$7.75/lb|
|Baptiste product payability (% of nickel price)||98%|
|Pre-production capital expenditures||$1.67 billion|
|Sustaining capital expenditures||$1.11 billion|
|Exchange rate||0.76 US$/C$|
- C1 operating costs are the costs of mining, milling and concentrating, on-site administration and general expenses, metal product treatment charges, and freight and marketing costs less the net value of by-product credits, if any. These are expressed on the basis of per unit nickel content of the sold product.
- AISC of all-in sustaining costs comprise the sum of C1 costs, sustaining capital, royalties and closure expenses. These are expressed on the basis of per unit nickel content of the sold product.
- Nickel price is based on the average of six long-term analyst forecast prices.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the conclusions or results as reported in the PEA will be realized.
The PEA was produced by a team of independent consultants who possess extensive expertise in their respective fields. Further details on the contributors can be found in the Qualified Persons section of the Company’s news release dated September 9, 2020.
About the Decar Nickel District
The Company’s Decar Nickel District claims cover 245 square kilometres of the Mount Sidney Williams ultramafic/ophiolite complex, 90 km northwest of Fort St. James in central British Columbia. The District is a two-hour drive from Fort St. James on a high-speed logging road.
Decar hosts a greenfield discovery of nickel mineralization in the form of a naturally occurring nickel-iron alloy called awaruite, which is amenable to bulk-tonnage, open-pit mining. Awaruite mineralization has been identified in four target areas within this ophiolite complex, being the Baptiste Deposit, the B target, the Sid target and Van target, as confirmed by drilling in the first three plus petrographic examination, electron probe analyses and outcrop sampling on all four. Since 2010, approximately US $24 million has been spent on the exploration and development of Decar.
Of the four targets in the Decar Nickel District, the Baptiste Deposit, which was initially the most accessible and had the biggest known surface footprint, has been the main focus of diamond drilling since 2010, with a total of 82 holes and over 31,000 metres of drilling completed. The Sid target was tested with two holes in 2010 and the B target had a single hole drilled into it in 2011; all three holes intersected nickel-iron alloy mineralization over wide intervals with DTR nickel grades comparable to the Baptiste Deposit. The Van target was not drill-tested at that time as rock exposure was very poor prior to logging activity by forestry companies.
As reported in the current NI 43-101 resource estimate, having an effective date of September 9, 2020, the Baptiste Deposit contains 1.996 billion tonnes of indicated resources at an average grade of 0.122% DTR nickel, containing to 2.4 million tonnes of nickel, plus 593 million tonnes of inferred resources with an average grade of 0.114% DTR nickel, containing 0.7 million tonnes of nickel, both reported at a cut-off grade of 0.06% DTR nickel. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Southern Silver Reports on Recent Property and Corporate Matters
The Company is doubling the size of the current drilling program on the Cerro Las Minitas Ag-Pb-Zn project from an initial 10,000 metre program to a 20,000 metre program. Drilling will continue with two drills targeting the east side of the Cerro where to date three near-surface sulphide lenses with Bonanza-grades of silver have been identified. Shallow oxide Au-Ag mineralization has also been confirmed in the Mina La Bocona area. Mineralization in all of these new target areas is separate from the existing mineral resources. The current program has completed 28 core holes totaling 12,040 metres since restarting drilling in September 2020. Assay results from 11 drill holes are pending and are anticipated over the coming weeks.Read More
Highlights from the current 2020-21 drill program include the following previously reported intercepts:
- 15.1m down-hole (8.0m est. TT) averaging 1,072g/t Ag, 18.8% Pb and 7.5% Zn (2,040g/t AgEq; 51.7% ZnEq); and
- 20.9m down-hole (9.0m est. TT) averaging 212g/t Ag, 0.64g/t Au, 3.7% Pb and 3.3% Zn (512g/t AgEq; 13.0% ZnEq) from the Bocona Chimney;
- 9.3m down-hole (6.1m est. TT) averaging 344g/t Ag, 0.59g/t Au. 5.7% Pb and 3.9% Zn (728g/t AgEq; 18.5% ZnEq) from the Muralla Chimney; and
- 9.0m down hole interval (6.7m est. True Thickness) averaging 625g/t Ag, 11.8% Pb and 7.5% Zn (1,454g/t AgEq; 30.0% ZnEq) at the South Skarn target.
The Cerro Las Minitas project is an advanced exploration-stage polymetallic Ag-Pb-Zn-Cu Skarn/CRD project located in southern Durango, Mexico.
The Cerro Las Minitas project as of May 9th, 2019 contains a Mineral Resource Estimate, at a 175g/t AgEq cut-off, of (1)
- Indicated – 134Moz AgEq: 37.5Moz Ag, 40Mlb Cu, 303Mlb Pb and 897Mlb Zn
- Inferred – 138Moz AgEq: 45.7Moz Ag, 76Mlb Cu, 253Mlb Pb and 796Mlb Zn
A total of 162 drill holes for approximately 71,750 metres have been completed on the Cerro Las Minitas project to date, with acquisition and exploration expenditures of over USD$27.0 million spent.
Oro Project, New Mexico, USA-drill program planned
The Oro Project is a 100% owned porphyry copper-gold property, located in southwestern New Mexico, USA, which includes patented land, State leases and BLM mineral claims totalling 22.3 sq. km., upon which several historic mines are located. The property covers a large, zoned Laramide-age mineralizing system containing a number of highly prospective, district-scale, copper-molybdenum and distal sediment-hosted, oxide-gold targets.
Targeting has been finalized based upon geophysical surveys and permits are pending for a 5,000m drill program, designed to test several of the copper-molybdenum porphyry and copper-gold skarn targets within a broad quartz-sericite-pyrite alteration zone, interpreted to overlie an unexposed porphyry centre. Drilling is expected to commence in Q3, 2021.
- Cerro Las Minitas working interest: In 2020, Southern Silver purchased a 60% indirect working interest in the Cerro Las Minitas property from Electrum Global Holdings LP for payment of US$15.0 million in periodic payments, the second of which was paid on March 15, 2021 in the amount of US$4.0 million as to 50% cash and 50% shares valued at a 20-day VWAP. 5,216,533 shares were issued, bringing Electrum’s current holdings to approximately 27 % of current issued capital.
- Warrant Exercises: In Summer 2020, Southern Silver raised $14.2 million in Unit sales. Since the closing of the equity raise and the working interest purchase in September 2020, the Company has received a total of $2,428,228 from shareholder exercises of share purchase warrants, inclusive of the recent 6,000,000 share purchase warrant exercise by Electrum Global Holdings LP for proceeds of $480,000. Additionally, the Company has received $477,470 from the exercise of incentive stock options and finders’ warrants.
HPQ-Silicon Resources begins trading on OTCQX
HPQ-Silicon Resources Inc.’s common shares are now trading on the OTCQX Best Market under the ticker symbol of HPQFF. The OTCQX Best Market is the highest market tier of OTC Markets, which operates financial markets for 11,000 U.S. and global securities. Trading on OTCQX will enhance the visibility and accessibility of the Company to U.S. investors. HPQ common shares will continue to trade on the TSX Venture Exchange under the symbol HPQ, and on the Frankfurt Stock Exchange under the symbol UGE.Read More
Excellon Resources loses $16.02-million in 2020
Excellon Resources Inc. has released financial results for the three-month and 12-month periods ended Dec. 31, 2020.Read More
Q4 2020 Financial and Operational Highlights (compared to Q4 2019)
Revenues increased by 41% to $9.0 million (Q4 2019 – $6.4 million)
Gross profit improved to $1.6 million (Q4 2019 – loss of $0.6 million)
Silver production increased by 37% to 355,581 oz (Q4 2019 – 259,282 oz), exceeding Q3 2020 as the strongest quarter of silver production since Q2 2014
All-In Sustaining Cost (AISC) per silver ounce payable decreased 21% to $21.19 (Q4 2019 – $26.76)
2020 Financial and Operational Highlights (compared to 2019)
Revenues of $26.2 million (2019 – $26.5 million) impacted by the temporary suspension mandated by the Government of Mexico in response to the COVID-19 pandemic in Q2 2020 (the “Suspension”)
Significant improvements in productivity and cost profile in H2 2020 (compared to H2 2019):
Record 43,332 tonnes mined (H2 2019 – 37,789 tonnes) and 45,237 tonnes milled (H2 2019 – 37,063 tonnes) from Platosa following restart in late Q2 2020
Silver equivalent (“AgEq”) production increased by 20% to 1,080,644 oz (H2 2019 – 896,838 AgEq oz
Production cost per tonne decreased by 23% to $239 per tonne (H2 2019 – $311 per tonne)
Net working capital totaled $9.8 million at December 31, 2020 (December 31, 2019 – $7.6 million), with cash and marketable securities of $10.7 million as at December 31, 2020 (December 31, 2019 – $6.7 million)
Other highlights during 2020 included:
Acquisition of Otis Gold Corp. adding two high-quality gold growth assets in Idaho, USA and developing team for the next phases of project advancement
Listed and commenced trading on the NYSE American, LLC exchange (the “NYSE American”)
Finalized transition to private electricity supplier at Platosa, resulting in a 33% unit-cost reduction for electricity
Released updated mineral resource estimate on the Evolucion Property delineating a large-tonnage silver, zinc, lead deposit immediately adjacent to the Miguel Auza Mill
Restarted underground and surface exploration on multiple targets at the Platosa Project
Completed successful drill permitting, land access and ramp-up of the drilling program at the Silver City Project in Saxony, Germany with high-grade discoveries from the first holes drilled on the property for precious metals in modern times
“Our greatest success in 2020 was ensuring the health of our people during the COVID-19 pandemic,” stated Brendan Cahill, President and Chief Executive Officer. “Our team in Mexico did an exceptional job in trying circumstances, while balancing the continued operation of our business. Coming out of the suspension in Q2 2020, we turned the operation around, improving productivity and reducing costs – though concentrate treatment charges remained high and a strain on cash flow. But 2020 set the stage for what we believe will be a new year full of resource growth and discovery, as we advance and commence drilling programs on almost all of our projects.”
Financial results for the three- and twelve-month periods ended December 31, 2020 and 2019 were as follows:
Revenues increased by 41% during Q4 2020, driven by a 39% increase in silver ounces payable and a 43% increase in the average realized silver price relative to the comparative period. Revenues for the 12-month period were impacted by the Suspension.
Cost of sales in Q4 2020 is $0.4 million higher than Q4 2019 reflecting the volume impact of a 22% increase in AgEq ounces sold in Q4 2020 partially offset by the impact of operational efficiencies realized through 2020 including lower personnel costs and a lower-cost private electricity contract that came into effect early in Q4 2020. Yearly cost of sales decreased by $3.3 million or 12% in 2020 versus 2019 reflecting an 18% reduction in AgEq ounces sold due to the Suspension, partly offset by care and maintenance costs of $1.9 million incurred during the Suspension.
Gross profit of $1.6 million in 2020 reflects a $3.0 million improvement over the prior year. Net loss increased by $4.8 million between Q4 2020 and Q4 2019 mainly reflecting a $4.7 million non-cash charge in deferred tax expense due to the de-recognition of deferred-tax assets. The associated tax-loss carry-forwards remain in force and are unaffected by this IFRS write-down. Yearly net loss in 2020 increased by $5.9 million compared to 2019 mainly reflecting a $3.8 million non-cash charge in deferred tax expense and a $2.8 million increase in finance expenses including $2.0 million in interest expense on convertible debentures issued in Q3 2020 and a US$6 million bridge loan from Sprott Private Resource Lending borrowed in Q1 and repaid in Q3 2020.
General and corporate administration expenses increased by $2.1 million, including an increase of $0.8 million related to non-cash stock-based compensation and an increase of $1.3 million in administrative expenses, including $0.6 million in corporate development costs, $0.3 million in salaries and wages and $0.2 million in public company costs related to the convertible debenture issuance and the listing on the NYSE American.
The $0.2 million increase in exploration expense in 2020 primarily reflects increased exploration activity at Silver City ($1.6 million increase in 2020) and work conducted on the Kilgore project ($0.7 million since acquisition in Q2 2020), partially offset by a delay of exploration activities in Mexico ($2.2 million decrease from 2019). Work continued on the Oakley project, which is under option to and funded by Centerra Gold Inc.
AISC net of by-products per silver ounce payable increased by $2.89 (or 12%) to $26.46 in 2020 (2019 – $23.57) driven by (i) lower silver sales volumes (impact of $0.94 or 4%), (ii) care and maintenance costs of $1.9 million during the Suspension, (iii) a 110% or $3.6 million increase in TC/RCs and (iv) a 11% or $1.5 million decrease in by-product credits relative to the prior year. AISC also includes $3.8 million related to sustaining capital expenditures including long-term dewatering infrastructure.
The increased TC/RCs were in line with charges in the global zinc and lead concentrate industry, which saw a marked increase in TC/RCs start in 2019 that continued into 2020. TC/RCs dropped marginally in Q3 2020 based on a renegotiated zinc offtake agreement, but the operation incurred higher penalties for deleterious elements, particularly antimony. After adjusting for $1.9 million in care and maintenance costs incurred during the Suspension, adjusted 2020 AISC is $24.35, or 3% higher compared to 2019. Excluding non-cash items, AISC was $24.28 in 2020 (2019 – $22.26).
All financial information is prepared in accordance with IFRS, and all dollar amounts are expressed in U.S. dollars unless otherwise specified. The information in this press release should be read in conjunction with the Company’s audited consolidated financial statements for the years ended December 31, 2020 and 2019, and associated management discussion and analysis (“MD&A”) which are available from the Company’s website at http://www.excellonresources.com and under the Company’s profile on SEDAR at http://www.sedar.com and EDGAR at http://www.sec.gov.
The discussion of financial results in this press release includes references to “cash flow from operations before changes in working capital items”, “production cost per tonne”, “cash cost per silver ounce payable”, and “AISC per silver ounce payable”, which are non-IFRS performance measures. The Company presents these measures to provide additional information regarding the Company’s financial results and performance. Please refer to the Company’s MD&A for the year ended December 31, 2020, for a reconciliation of these measures to reported IFRS results.
Operating Results & Outlook
Operating performance for the periods indicated below was as follows:
In 2020, Platosa continued to outperform 2019 productivity while reducing operating costs, improving safety performance and managing the ongoing threat posed by COVID-19. In the second half of 2020, the Company achieved record tonnes mined (43,332) and milled (45,237) following the Suspension and restart in late Q2 2020. Silver production in Q4 2020 increased by 37% to 355,581 oz (Q4 2019 – 259,282 oz), exceeding Q3 2020 as the strongest quarter of silver production since Q2 2014.
During 2020, the Platosa operation realized improvements in shift scheduling, mining methods, offtake arrangements and electricity costs, while completing a phase-2 tailings dam raise and strengthening the management and technical teams. Recoveries at the Miguel Auza processing facility improved on an annual basis, while plant reliability substantially increased.
Lower electricity prices from the newly activated natural-gas backed power contract at Platosa are expected to continue improving the operation’s economics, despite a price shock in mid-February 2021 that has since abated, but will impact costs in Q1 2021.
COVID-19 prevention, hygiene and safety measures, health screening, travel restrictions, contact tracing, testing and quarantine protocols are in place and have so far proven effective in protecting the workforce from confirmed COVID-19 cases that originated from community spread.
To date, there has been no material impact to production or the shipment of concentrate from any of the Company’s operations as a result of COVID-19. Additionally, there has been no significant disruption to the supply chain of the Company’s operations. Excellon continues to monitor and implement business continuity measures to mitigate and minimize to the extent possible any potential impacts of the pandemic that might emerge in our operations or affect our procurement and commercial activities.