PGE/GOLD – Caribou King Resources Ltd. Feb. 8 said it has approved its 2012 exploration program for the Vault gold-platinum group element property, located 140 kilometers (87 miles) northwest of Haines Junction and within 500 meters of Prophecy Platinum Corp.’s Wellgreen PGE-copper-nickel project. Caribou King’s 2012 exploration program at vault will include airborne geophysics as well as additional mapping and sampling to determine the extent of mafic and ultramafic rocks located on the property in late 2011. “We are seeing similarities in rock types on our Vault property to Prophecy’s Wellgreen deposit, and are looking to examine this situation very closely this upcoming season,” said Caribou King CEO Mike England. In 2011, rocks similar to those at Wellgreen were discovered at Vault, including gabbros, peridotite in outcrop, and a peridotite float grab sample with 93 parts per billion palladium and 42 ppb platinum. The property also hosts numerous high gold soil anomalies on the southeastern claims. Mapping and sampling completed in 2011 located quartz veins with up to 1.03 grams per metric ton gold in altered phyllites and andesites that are coincident with soil anomalies. An additional 103 claims were staked immediately southeast and contiguous with the property that will be assessed in 2012 for both potential gold and PGE mineralization. “Our intention is to define potential targets for this summer’s drill program in the Yukon,” England said. Caribou has entered an agreement with Alix Resources Corp. for 100 percent control of the Vault through a cash and share purchase subject to TSX approval.
Caribou King Resources Feb. 2 also reported that it has entered into an agreement with Alix Resources Corp. to purchase the remaining 51 percent interest from Alix in the five Yukon Territory properties that Alix and the company have been exploring since 2011. Initially Alix had an option to earn a 100 percent interest in the five properties pursuant to an option agreement with Strategic Metals Ltd. dated January 2011. In May 2011, Caribou and Alix entered into an option and joint venture agreement whereby Caribou had the right to earn a 49 percent interest in the properties from Alix by issuing 500,000 common shares to Alix and spending C$600,000 on the properties over two years. Subsequently, the parties staked additional claims north of the Corky copper-molybdenum-gold property, and east of the Vault gold property. With the completion of the work programs last year on the Corky and Vault properties, Caribou successfully earned its 49 percent interest, and it now wishes to acquire a 100 percent interest in the properties. In the proposed agreement, Caribou will pay C$200,000 cash and issue 1 million units to Alix to earn the additional 51 percent option of the properties. Each unit consists of one common share and one common share purchase warrant of the company. Each warrant will entitle Alix to acquire one common share of the company at a price of 25 cents per common share for a period of two years from the date of issuance. Caribou will assume the balance of the cash payments to Strategic Metals Ltd. to exercise the underlying option totaling C$2.5 million over the next three years. Upon earn-in, the properties will be subject to a 2 percent net smelter return royalty. Caribou will have the option to buy back 1 percent for $1 million.
GOLD – Yukon-Nevada Gold Corp. Feb. 8 reported that it has entered into a forward gold purchase agreement with Deutsche Bank AG, London Branch. Deutsche Bank has funded a US$20 million prepaid gold forward facility to Queenstake Resources USA, Inc., a wholly-owned subsidiary of the company. The company will use the proceeds for working capital and to further invest in the expansion of the SSX-Steer mine as it ramps up to 1,200 tons per day and to commence development of Starvation Canyon, including portal construction and equipment purchases, as part of the 2012 plan to commence production from that site at the company’s Jerritt Canyon Mine in Nevada. The facility is a forward contract structured to deliver 27,950 ounces of gold over a 43-month term in the amount of 650 ounces per month starting March 31. The 27,950 ounces of gold that have been committed under this gold facility represent approximately 3.90 percent of the gold reserves or 0.90 percent of the total gold resources at Queenstake’s wholly-owned Jerritt Canyon property in Nevada. The gold pricing valuation has been finalized and subsequent to the receipt of the US$20 million prepayment, which represents an initial pre-payment of about US$716 per ounce, the remainder of the purchase price for the gold will be paid to Queenstake upon completion of the monthly gold deliveries to Deutsche Bank and will be equal to the amount that the gold price exceeds US$850 up to a maximum gold price of US$1,750. In connection with the transaction, the company has issued to Deutsche Bank one share purchase warrant, which can be exercised to purchase 40 million common shares at a price of C44 cents per share on or before Feb. 7, 2015. Under the terms of the agreement, in the event that the actual monthly quantity of gold delivered by the company is less than the scheduled monthly amount, the shortfall can be made up, at the option of Deutsche Bank, by the issuance of common shares of the company. The conversion price per Share will be the five-day volume weighted average price of the company’s shares as traded on the Toronto Stock Exchange immediately prior to the monthly delivery date for the scheduled delivery month in which such gold shortfall payment obligation arises, less the discount as permitted by the TSX. In accordance with securities legislation currently in effect, the shares, the warrant and the warrant shares will each be subject to a “hold period” of four months, plus one day from the date of issuance of the aforesaid securities. In the case of the Warrant and the Warrant Shares, the hold period will expire on June 8. Yukon Nevada is also developing the Ketza River Gold Project in southeastern Yukon.
POLYMETALLIC – Gold World Resources Inc. Feb. 7 said it has engaged Aurora Geosciences of Whitehorse to act as agent for the company in preparing and submitting permit applications to obtain a Yukon Mining Land Use Class III Permit for the Mount Anderson project. Aurora will prepare the permit applications for a five-year Class III mining land use permit using the company’s NI 43-101 technical report as a guideline in designing the program with adjustments as necessary to accommodate regulatory or stakeholder concerns. Gold World said it has engaged Kingsdale Capital Markets Inc. to complete a private placement financing to raise up to US$700,000. Proceeds will be used to finance the 2012 exploration at the Mount Anderson Yukon polymetallic project.
SECURITIES – Northern Freegold Resources Ltd. Feb. 7 said the OTC Markets Group Inc. has listed its securities for trading on OTCQX, the highest tier of the OTC market. “The OTCQX platform supports a transparent marketplace with high quality issuers, financial information disclosure and efficient trading for U.S. investors,” explains OTC Markets Group President and CEO R. Cromwell Coulson. Northern Freegold began trading on the OTCQX on Feb. 7 under the symbol NFRGF. Investors can find current financial disclosures and real-time level 2 quotes for Northern Freegold at www.otcmarkets.com. “One of my priorities is to make it as easy as possible for investors to buy Northern Freegold stock. Our trading on OTCQX should, over time, help improve our presence in the U.S., which will offer significant benefits to all shareholders,” said Northern Freegold President and CEO John Burges. Dorsey & Whitney LLP will serve as Northern Freegold’s principal American liaison on OTCQX, responsible for providing guidance on OTCQX requirements and U.S. securities laws.
MANAGEMENT – Wolverine Minerals Corp. Feb. 3 reported the appointment of J. Douglas Blanchflower, P.Geo., as a director and vice president of exploration of the company. Blanchflower will be responsible for overseeing all of the company’s exploration activities. His main focus will be on the Yukon, where Wolverine has optioned 25 gold properties from Strategic Metals Ltd. The company also announced the appointment of W. Douglas Eaton, B.A., B.Sc. Geology, as technical advisor. Blanchflower brings 41 years of mineral exploration experience to Wolverine Minerals Corp. Since 1982 he has implemented, supervised and managed gold-silver, uranium and base metal exploration programs throughout North and South America and Asia. During his career, Blanchflower has served as a director and senior management with several mining companies including: Rea Gold Corp. during the discovery of the Rea VMS and Samatosum copper-silver deposits near Adams Lake, B.C. and Noront Resources Ltd. during the discovery and exploration of the McFaulds Lake copper-nickel-platinum group metals-chromium deposit. He is currently a director of Pacific Bay Minerals Ltd. and officer of Strike Graphite Corp. Eaton has been directly involved in mineral exploration in Yukon Territory since 1971. Eaton became a partner in Archer, Cathro & Associates (1981) Ltd. in 1981 and is currently president of that geological consulting firm. He has been actively involved in management of junior mining companies since the mid-1980s and has held senior officer or director positions with several TSX-V listed companies. Eaton is chief executive officer and president of Strategic Metals Ltd. and Silver Range Resources Ltd. Wolverine also reported the resignation of Paul Matysek from its board of directors.
