Metals Update 23/06/2021

Globex Mining holders re-elect five directors at AGM

All five nominees listed in Globex Mining Enterprises Inc.’s 2021 management information circular were re-elected as directors at Globex’s annual and special meeting of shareholders held today in Rouyn-Noranda, Que.

At the meeting, the following individuals were re-elected as directors of Globex on a vote by ballot, with the following results:

Nominee                    Votes For   Votes Withheld

Jack Stoch                16,792,974           16,785
Dianne Stoch              15,038,863        1,770,896
Ian Atkinson              12,281,473        4,528,286
Chris Bryan               15,052,174        1,757,585
Johannes H.C. van Hoof    15,024,973        1,784,786

Director biographies are available in the Management section of Globex’s website at http://www.globexmining.com.

At the meeting, Globex’s shareholders also appointed MNP LLP, Chartered Professional Accountants as Globex’s auditor.

In addition, Globex’s shareholders adopted a resolution in the form annexed as Schedule A to the 2021 management information circular approving an extension of five years to the term of stock options held by four insiders of the Corporation on a vote by ballot, excluding for purposes of the vote shares held by the four insiders and their respective associates and affiliates, as follows:

    Votes For        Votes Against

Number        %       Number      %   

8,349,697  78.6    2,272,970   21.4

Southern Silver six-million-share private placement

The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced May 25, 2021.

Number of shares:  six million shares

Purchase price:  50 cents per share

Warrants:  three million share purchase warrants to purchase three million shares

Warrant exercise price:  75 cents for a two-year period

Number of placees:  30 placees

Total pro group involvement:  50,000 (one placee)

Finders’ fees: ┬áRed Cloud Securities Inc. receives $90,000 and 180,000 non-transferable warrants. Each non-transferable warrant is exercisable into one unit at a price of 50 cents for two years after the closing. Each unit comprises one common share and one-half of a common share purchase warrant. Each whole warrant is exercisable at 75 cents for two years. Fort Capital Partners receives $60,000 and 120,000 non-transferable warrants, each exercisable at 50 cents for two years. Canaccord Genuity Corp. receives $7,500 and 202,500 non-transferable warrants, each exercisable at 75 cents for two years. Haywood Securities Inc. receives $30,000 and 60,000 non-transferable warrants, each exercisable at 75 cents for two years. BMO Nesbitt Burns receives $2,000. CIBC Wood Gundy receives $2,500 and 5,000 non-transferable warrants, each exercisable at 75 cents for two years. Gerhard Merkel receives $15,250 and 30,500 non-transferable warrants, each exercisable at 75 cents for two years. Pertinax Capital BVBA (Thibaut Lepouttre) receives $5,000. Echelon Capital Markets receives $1,250 and 2,500 non-transferable warrants, each exercisable at 75 cents for two years.

Orca Gold 1,231,740 shares for services

The TSX Venture Exchange has accepted for filing the company’s proposal to issue 1,231,740 shares at a deemed price of 30.5 cents to directors, officers and employees in consideration of services provided to the company for the period ending June 30, 2020.

Insiders:  Alex Davidson, $30,496, 99,996 shares at 30.5 cents; Robert Chase, $27,250, 89,344 shares at 30.5 cents; David Field, $23,152, 75,908 shares at 30.5 cents; Derek White, $22,250, 72,950 shares at 30.5 cents; Richard Clark, $152,567, 500,219 shares at 30.5 cents; Kevin Ross, $59,195, 194,081 shares at 30.5 cents

For further details, please see the company’s news release dated Dec. 23, 2019. The company shall issue a news release when the shares are issued.

Orca Gold 432,487 shares for services

The TSX Venture Exchange has accepted for filing the company’s proposal to issue 432,487 shares at a deemed price of 39 cents to directors, officers and employees in consideration of services provided to the company for the period ending Sept. 30, 2020.

Insiders:  Robert Chase, $13,625.04, 34,936 shares at 39 cents; David Field, $13,625.04, 34,936 shares at 39 cents; Derek White, $11,125.14, 28,526 shares at 39 cents; Richard Clark, $76,686.09, 196,631 shares at 39 cents; Kevin Ross, $29,597.49, 75,891 shares at 39 cents

For further details, please see the company’s news release dated Dec. 23, 2019. The company shall issue a news release when the shares are issued.

Orca Gold 193,568 shares for services

The TSX Venture Exchange has accepted for filing the company’s proposal to issue 193,568 shares at a deemed price of 62.25 cents to directors, officers and employees in consideration of services provided to the company for the period ending Dec. 30, 2020.

Insiders:  David Field, $13,625.04, 21,888 shares at 62.25 cents; Richard Clark, $77,793.20, 124,969 shares at 62.25 cents; Kevin Ross, $5,144, 8,262 shares at 62.25 cents

For further details, please see the company’s news release dated Dec. 23, 2019. The company shall issue a news release when the shares are issued.

Erdene shareholders approve matters at annual meeting

Erdene Resource Development Corp.’s shareholders voted in favour of all items of business brought before them at the company’s annual meeting of shareholders held on June 23, 2021, in Halifax, N.S. Details of the meeting are provided herein.

Appointment of Board and Executive

At the Meeting, shareholders voted in favour of Erdene management’s nominees to the board of directors, with details of the proxy voting results as follows:

 Nominee        Votes For % For Votes Withheld% Withheld
Peter C. Akerley    106,055,900100.00      0          0.00   
Dr. Anna G. Biolik  106,055,900100.00      0          0.00   
John P. Byrne       105,755,90099.72    300,000       0.28   
T. Layton Croft     105,755,90099.72    300,000       0.28   
Kenneth W. MacDonald100,091,78094.38   5,964,120      5.62   
Cameron McRae       106,048,24599.99     7,655        0.01   
David V. Mosher     106,055,900100.00      0          0.00   
Hedley Widdup       106,019,90099.97     36,000       0.03   

Following the Meeting, Erdene’s board of directors appointed its officers for the coming year, namely: President and Chief Executive Officer {ۡ –} Peter Akerley; Chairman of the Board {ܑ –} T. Layton Croft; Chief Financial Officer {݅ –} Robert Jenkins; and Corporate Secretary {ݸ –} Suzan Frazer.

Oroco receives approvals for Santo Tomas drill programs

Oroco Resource Corp. has received approval from the Chihuahua state and Sinaloa state offices of the Mexican Secretariat of Environment and Natural Resources (SEMERNAT) to conduct drill programs from a collective 55 approved drill locations in the Brasiles zone and the North zone of its Santo Tomas project. While initial plans are for one hole per location, if warranted by results, the company will be able to target different areas of the zone with multiple holes per location.

The Chihuahua state office of SEMERNAT approved the company’s 46 drill locations, supporting a 28-person camp and access road network at the Brasiles zone. The program will test the Brasiles gossan zone (identified in surface exposure and further defined by the 3-D IP program) and the Western blind target identified by the 3-D IP program.

The Sinaloa state SEMERNAT office has approved a non-environmental-impact nine-drill-location program in the North zone, which is intended to confirm and expand the historical North zone resource. While this approval does not allow for the construction of new roads, the deployment of light, highly portable drill rigs with helicopter support will offset this restriction. During this initial program, the company will pursue the unified environmental impact assessment and change of land use permit, as recommended by SEMERNAT, which will allow for the construction of access roads, more drill locations and supporting infrastructure throughout the North zone.

The company will now proceed to install water storage and distribution facilities to support the drilling at the Brasiles and North zones, and will shortly mobilize drill equipment to commence the drill programs.

“We are very pleased with the co-operation and support we have received from the Sinaloa and Chihuahua offices of SEMERNAT,” stated Ian Graham, the company’s president. “We see this positive relationship as integral to the success of the Santo Tomas project.”

Dynacor Gold completes Veta Dorada plant expansion

Dynacor Gold Mines Inc. has completed its expansion at its Veta Dorada plant on June 15, 2021. On Monday, June 21, 2021, the entire mill was operating with ore at a new all-time high rate of 400 tonnes per day, a 16-per-cent increase from May 2021’s throughput level.

The expansion now complete will soon enable Dynacor to process above 430 tonnes per day, a minimum 25-per-cent increase from its May, 2021, throughput level of 345 TPD. The new agitation tank, ball mill, pump, piping and other related equipment have passed all quality assurance tests.

June, 2021, ramp up schedule

  • June 15: Construction and installation of the expansion equipment completed;
  • June 16 to June 17: Testing of new expansion equipment, first empty, then followed with water;
  • June 18: Testing the three ball mills with ore at a rate of 400 TPD;
  • June 19 to June 20: Fine-tuning all equipment over the weekend at a continuous rate of 400 TPD;
  • June 21: All equipment operating with ore at a new all-time high rate of 400 TPD.

As the mill continues to run through tests and operate effectively, the corporation will be preparing to raise the ore throughput levels to 430 TPD in July, 2021.

Jean Martineau, president and chief executive officer of Dynacor, states: “The completion of our new expansion is another step to meeting our strategic milestone of growing the company’s gold sales to record levels. As we continue to see a surge in demand for our services from the ASM gold ore industry, Dynacor is poised for continued increases in throughput levels worldwide.”

Completion of the plant was both on schedule and budget. As previously reported, the Veta Dorada plant has been steadily increasing its daily output for the last number of years. Today Dynacor is a significant ASM ore purchasing and processing company strategically located minutes off the Pan American Highway in Peru.

Highgold increases Johnson Tract drilling to 20,000 m

Highgold Mining Inc. has expanded the size of the planned drill program at the Johnson Tract polymetallic gold project (JT) in south-central Alaska, United States. The program will be the largest in the project’s history with an increase of 25 per cent to 20,000 metres from the previously announced 16,000-metre program. proceeds raised from recently exercised warrants provided the impetus for expanding the program and accelerating exploration efforts at Johnson.

Drilling began this week with two rigs positioned at the JT deposit, and one rig positioned at the DC prospect. Plans are for 50 to 70 per cent of the program metreage to be drilled at the JT deposit area, and 30 to 50 per cent at regional prospects.

“It feels great to have the drills turning again at Johnson,” commented president and chief executive officer Darwin Green. “During the off season, our geological team developed and refined a large number of high-quality drill targets that we are eager to pursue. The upsized program allows us to more aggressively test these target areas, particularly amongst the regional prospects, most of which are being drill-tested for the very first time.”

Drill targets

In its 2021 drill program, Highgold will focus on expanding the JT deposit and making new discoveries within the Johnson district. The program will also include definition drilling and metallurgical work in support of a future mineral resource update and potential engineering studies. For more information on the Johnson Tract exploration program, join Mr. Green this Thursday for a live webinar with Adelaide Capital.

At the JT deposit area, priority targets to be tested include the:

  1. JT deposit — Expansion along strike and down-plunge in nominal 100-metre stepouts from the 750,000 ounces at 10.9 grams per tonne gold equivalent (AuEq) indicated mineral resource;
  2. Footwall copper zone — Stepouts at depth from the copper-rich mineralized feeder zone first discovered in 2019 (20.7 metres at 32 g/t silver, 2.4 per cent copper, 4.9 per cent zinc) in hole JT19-089, including seven metres at 66 g/t Ag, 4.7 per cent Cu, 9.7 per cent Zn;
  3. Revised fault offset target — Testing the new interpretation of the JT deposit fault displacement;
  4. GAP target — Widely spaced fans of holes to test the poorly drilled area immediately along strike to the northeast from the JT deposit and the inferred source of mineralized boulders grading up to 26 g/t Au, 4.1 per cent Cu and 4 per cent Zn;
  5. New 2020 volcanogenic massive sulphide zone — Follow-up on the 2020 intercept, which returned 7.8 metres at 6.1 per cent Zn, 1.6 per cent Pb, 0.2 per cent Cu, 0.7 g/t Au, 36 g/t Ag in hole JT20-114, including 3.9 metres at 9.1 per cent Zn, 2.3 per cent Pb, 0.3 per cent Cu, 0.8 g/t Au, 47 g/t Ag.

Johnson district regional prospects to be tested include the:

  • DC prospect — Characterized by a series of large gossan alteration zones similar in style to the JT deposit and including the 500-by-1,000-metre silver-rich New Vein field discovered by Highgold geologists last season that consists of multiple sets of low-sulphidation epithermal crustiform quartz veins, vein swarms and siliceous breccias;
  • Milkbone prospect — Located 400 m west of the silver-rich New Vein field at the DC prospect, this prospect is defined by a strong gold-in-soil anomaly (70 to 4,390 parts per billion Au) with supporting high-grade rock sample results from near-source boulders and subcrop (up to 184 g/t Au);
  • Kona prospect — a large-scale alteration zone associated with a strong induced polarization chargeability geophysical anomaly.