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July 12, 2012 --- Vol. 06, No. 28July 2012

Alaska News Nuggets

GRAPHITE – Graphite One Resources Inc. July 12 provided an exploration update for its Graphite Creek property on the Seward Peninsula. So far this year, Graphite One has collected 307 rock grab samples and mapped along the known electromagnetic conductors to test strike extent and grade of graphite mineralization; completed drill holes 12GC001 and 12GC002 which tested surface graphite showings near Graphite Creek coincident with a high priority EM conductor; and completed 3 surface mini-bulk samples for mineralogy and metallurgical testing which total approximately 10.5 metric tons. Hole 12GC001 was drilled to 428.9 meters and hole 12GC002 to 380.1 meters. “We have extended the depths of the initial drill holes significantly more than originally planned due to continued mineralization. The initial drill logs are very encouraging with the intercepts being well mineralized over long intervals,” said Graphite One Resources President Anthony Huston. “Assays are pending and we are eager to confirm our initial findings.” Graphite One has installed its core logging and sample preparation facility in Nome. The company said this sample preparation laboratory – which will be managed by Ontario-based Actlabs – will ensure the highest level of QA/QC and timely receipt of analytical results.

FINANCE – International Tower Hill Mines Ltd. July 12 announced it is has arranged a non-brokered private placement financing to raise gross proceeds of up to C$25 million. The offering will occur in two stages. The first stage will consist of up to 7,692,307 common shares of the company at a price of C$2.60 per common share for up to C$20 million. This portion of the financing is anticipated to close on or before Aug. 3. The second stage of the offering will consist of that number of common shares that, when valued at a price equal to a 10 percent discount from the five day volume weighted average price for the common shares as at Sep. 10, will equal up to C$5 million (3 million shares maximum). While this portion of the placement will be priced 60 days from the announcement of the offering, the single place in the second stage is purchasing C$5 million of the first stage of the offering and has committed to close the second stage portion of the offering. Closing of the second stage is anticipated on or before Sep.21. It is anticipated that certain insiders of the company will participate in the offering. The company will pay a 4 percent cash finder’s fee in connection with a portion of the Offering. Tower Hill intends to use the net proceeds of the private placement for the completion of its bankable feasibility study at the Livengood Gold project in Alaska and for general working capital purposes.

COPPER – NovaCopper Inc. July 10 provided an update on the Upper Kobuk Mineral Project exploration program in the Ambler District of northwest Alaska. Four rigs were mobilized to the project with the goal of completing 15,000 to 18,000 meters of diamond drilling at three principal areas: the South Reef zone at Bornite where exploration in 2011 encountered significant thicknesses of high-grade copper mineralization; the historically explored Ruby Creek zone at Bornite where an initial resource estimate is underway and is expected to be completed in the third quarter; and Sunshine, a satellite polymetallic volcanogenic massive sulfide deposit located 7.5 miles (12 kilometers) west of the Arctic VMS deposit where previous drilling identified significant intersections of massive sulfide mineralization in the same stratigraphic horizon as the Arctic deposit. Additionally, the 2012 program consists of extensive surface exploration of the roughly 11-mile (18 kilometers) belt of prospective carbonate stratigraphy adjacent to the Bornite deposit. Two known mineralized occurrences – Aurora Mountain and Pardner Hill – along with broad areas of hydrothermal dolomite and anomalous soil geochemistry occur along the belt. Surface exploration will utilize both wide-spaced dipole/dipole induced polarization and radial line down-hole IP to identify new targets and further delineate extensions of known mineralization. An initial 60 line-kilometers of IP and 25 line-kilometers of soil sampling are currently underway as well as geologic mapping of the district to gain a better handle on the geologic controls to mineralization and target generation. This year's US$16.5-million exploration budget is mainly for exploration drilling, sampling and target delineation but also includes ongoing engineering reviews and metallurgical testing at the Arctic deposit. Initial metallurgical work on the Bornite deposit is also planned utilizing 2012 drill samples. Some 4,500 meters of drilling has been completed to the end of June. Initial assay results from this year’s drilling are anticipated towards the later part of August. NovaCopper’s long term objective for value creation is to demonstrate the potential for multiple deposits to total more than 10 billion pound of copper in the Ambler mining district. At May 31, NovaCopper had US$38.7 million in cash and cash-equivalents. The company expended US$3.9 million on operating activities during the six-month period ended May 31, compared with expenditures of US$3.0 million for operating activities for the same period in 2011. Details of NovaCopper’s financial results are described in the unaudited consolidated financial statements and management's discussion and analysis which will be available at www.novacopper.com, www.sedar.com and www.sec.gov.

GOLD – Goldrich Mining Co. July 9 reported that Goldrich NyacAU Placer, LLC – a 50-50 joint-venture company formed by Goldrich and NyacAU, LLC – has received a general mining permit for placer mining operations at Chandalar, Alaska. This permit enables mining operations to proceed at the Chandalar property about 200 miles (320 kilometers) north of Fairbanks. Goldrich NyacAU Placer has begun earth moving at Chandalar and anticipates the gravity recovery plant will be set up by mid-August. Commercial production is anticipated to begin by June 2013, although it could begin as early as this summer. An eventual production rate of approximately 10,000 ounces of fine gold per season is anticipated, but this could be significantly increased if a second gold recovery plant is put into production. Goldrich has not defined a mineral reserve according to SEC Industry Guide 7 criteria. However, based on drilling of the placer gold deposit to date and the anticipated production rate, Goldrich estimates the mine life will be approximately 25 years. The placer deposit is open to expansion in three directions and Goldrich believes the mine life may be significantly extended with additional drilling. Goldrich also reports that the placer gold partnership has completed construction of a new 30-man camp. This camp will be used primarily for placer mining operations and Goldrich’s existing camp will be used for hardrock exploration activities.

GOLD – Millrock Resources Inc. July 9 said drilling has begun a planned 1,500-meter drill program at the Estelle gold project 100 miles (160 kilometer) northwest of Anchorage. The project is a joint venture between Millrock (45 percent) and Teck American Inc. (55 percent), a subsidiary of Teck Resources Limited. Five of the planned holes will be drilled at the Oxide Ridge occurrence where Millrock cut 365.3 meters averaging 0.43 grams per metric ton gold during the 2011 drilling program. This hole (SE-001) intersected variably altered magmatic intrusive rock with quartz veins and stockworks containing gold mineralization over the entire length of the hole. Two additional holes of the 2012 program will be used to test geochemical anomalies in pyritic rocks on the margin of an intrusion at the RPM showing located at the south end of the claim block. Millrock’s 45 percent share of the 2012 exploration program is estimated to cost US$800,000. Under the terms of an agreement with Teck, Millrock will borrow up to the entire amount necessary to cover its share of the planned program costs. The loan, which bears a 6 percent interest rate, may be repaid by Dec.31, 2012, and if Millrock does so, it will retain its 45 percent interest. Millrock may elect not to repay the loan, and if it does not, its interest in the Estelle project will be reduced in accordance with the dilution formula contained in the joint venture agreement. If the planned program is carried out, and Millrock does not repay the loan, its equity interest in the project would be reduced to approximately 35 percent.

FINANCE – Heatherdale Resources Ltd. July 9 announced it has arranged a C$4.4 million private placement financing with Rathdowney Resources Ltd,, whereby Heatherdale will issue 22 million common shares to Rathdowney at a price of C20 cents per share. The issuance is subject to final approval by the TSX Venture Exchange. Rathdowney is a public company that has certain directors in common with Heatherdale. On completion of the financing, Rathdowney will own approximately 18.4 percent of Heatherdale’s shares. Under the terms of the transaction, Rathdowney will also have the right to nominate two individuals for election to Heatherdale's board of directors for so long as it retains at least a 10 percent interest in Heatherdale. The proceeds will be used to advance drilling and engineering studies at the Niblack Project and for general corporate and working capital purposes.

DISCHARGE PERMIT – Alaska Department of Environmental Conservation July 7 announced is in the process of developing an Alaska Pollutant Discharge Elimination System permit for Kinross Gold Corp.’s Fort Knox gold mine, located about 25 miles (40 kilometers) north of Fairbanks. DEC said dewatering wells around the perimeter of the pit at Fort Knox produce excess water or wastewater, and the proposal is to discharge non-contact, non-process, groundwater onto the surface in the Fish Creek drainage down-gradient of the mine. High quality wastewater from select dewatering wells will be combined and discharged. Since discharge is confined to only high quality ground water, water treatment will not be necessary to meet Alaska Water Quality Standards. The discharge rate is expected to be around 400 gallons per minute but may reach a maximum of 2,000 gpm. The outfall will discharge into the historic Fish Creek stream channel, Old Fish Creek channel, which is located below the tailings storage facility dam and north of the constructed wetlands complex’s Pond C. Written comments specific to the draft permit or requests for a public hearing on the APDES draft permit must be submitted by Aug. 6.

Written comments can be submitted via email to: [email protected] Or by mail to: Alaska Department of Environmental Conservation, Wastewater Discharge Authorization Program, 555 Cordova Street, Anchorage, AK 99501

GOLD – Nyac Gold LLC July 4 reported the completion of a 920-meter diamond drill hole (NYC11-04) at its Saddle Mountain prospect in the northeast corner of its Nyac gold property, a 50,775-acre mineral lease on lands held by Calista Corp. The hole was drilled near the center of a 7.5-acre hydrothermal breccia pipe in Jurassic andesitic volcanics that is coincident with a roughly circular aeromagnetic anomaly of 2,450 meters diameter that is thought to represent an underlying Cretaceous pluton. Surface quartz vein samples in the breccia pipe have yielded up to 59.2 grams per metric ton gold with anomalous silver and mercury values. The hole – which was intended to test a gold mineralization target within the pipe and in or near the cupola of the pluton at the root of the pipe – cut andesite that is pervasively potassically altered with biotite flooding plus disseminated and vein magnetite. Nyac said anydrite veining and flooding is prevalent to a depth of 750 meters. Hydrothermal alteration and fluidized hydrothermal brecciation often obliterate all original textures. Intercepts of interest in this hole include numerous quartz monzonite dikes known to carry anomalous gold; 16 feet 4.9 meters of quartz-carbonate vein breccia at 580 meters; and 28 meters of intensely QSP-altered porphyritic intrusive in two intervals below 812 meters. The altered intrusive is similar to a mineralized cupola occurring elsewhere on the property that may have generated the placer gold deposit in the creek draining the cupola. The hole was terminated in silicified QSP-altered andesite that contains up to 2 volume percent fine quartz-chlorite-anhydrite stockwork. The hole was capped for potential re-entry pending encouraging geochemical results. Nyac Gold hopes to complete at least 2,440 meters of drilling in deep holes in the breccia pipe this season.


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