NOW READ OUR ARTICLES IN 40 DIFFERENT LANGUAGES.
WEEKLY ONLINE NEWS STORY
You are receiving this weekly newsletter at no additional cost as part of your subscription to Petroleum News. If you do not want to receive this newsletter, email Shane Lasley at [email protected] to be removed from the list.

February 27, 2014 --- Vol. 08, No. 09February 2014

Nunavut

URANIUM – Kivalliq Energy Corp. Feb. 27 provided a project update for Kivalliq’s 340,268 acre Angilak uranium property in Nunavut. The update results from metallurgical and beneficiation testing performed on Lac 50 Trend uranium mineralization, including locked cycle alkaline leach tests, yellowcake precipitation, and a radiometric ore sorting study. “Our team continues to advance and de-risk the Angilak property by evaluating potential uranium extraction and processing options. The combination of high uranium recoveries and low re-agent consumption will have a positive impact on project economics. In addition, the radiometric sorting study demonstrated the potential to remove more than 50 percent of the waste rock prior to milling,” said Kivalliq CEO Jim Paterson. Highlights of the metallurgical and beneficiation testing include: Locked-cycle leach tests confirmed the ability to recycle 100 percent of the primary alkaline leach re-agents; low consumption of ancillary re-agents was demonstrated; >95 percent uranium recovery in 48-hour leach cycle; low impurity yellowcake product meets ASTM C976-13 standard specifications; and radiometric ore sorting showed potential to reduce dilution with up to 96.7 percent uranium recovered from 49.2 percent of the sample mass.

DIAMONDS – Peregrine Diamonds Ltd. Feb. 26 reported the results of an independent diamond valuation for a 1,013.5-carat parcel of commercial-size diamonds recovered from the CH-6 kimberlite pipe at its Chidliak project on Baffin Island, Nunavut. The average price was US$213 per carat and the entire parcel was valued at US$215,605. The modeled price ranged from a minimum of US$162 per carat to a high of US$236 per carat with a base case modelled price of US$188 per carat. The grade of the 404.2-metric-ton bulk sample that yielded the 1,013.5-carat parcel was 2.58 carats per metric ton for diamonds larger than the 1.18 millimeters square mesh sieve size. Within the parcel, the four largest diamonds weighing 8.87, 5.83, 4.62 and 4.11 carats had per-carat market values of US$4,076, US$3,455, US$2,900 and US$2,633, respectively. “The average price per carat and grade of this bulk sample clearly show that CH-6 could have rock value that is comparable with the richest kimberlites currently being mined,” said Peregrine CEO Eric Friedland. “We are more confident than ever that planned bulk sampling beginning in 2015 of other known pipes at Chidliak with economic potential could lead to the development of Baffin Island’s first diamond mine.” The valuation of diamonds recovered from the CH-6 bulk sample was carried out in Antwerp, Belgium by WWW International Diamond Consultants. Diamond prices were determined using their February 24, 2014 price book and their proprietary price modeling techniques which predict the average price per carat in a mine production scenario. Through its partnership in Diamonds International Canada Ltd., WWW performs the Canadian federal and provincial government diamond valuations for the four producing diamond mines in Canada and has been working with Canadian diamond production since 1998. WWW co-founder Richard Wake-Walker said, “The shape, color and size distribution profiles of this parcel compare very well with current Canadian diamond production. It is very encouraging to see such high-quality goods from a relatively small parcel and at such an early stage in the project.” Photos of the diamonds recovered from the CH-6 bulk sample can be viewed at: http://www.pdiam.com/s/Ch-6-Bulk-Sample-Photo-Gallery.asp.

FINANCE – Advanced Explorations Inc. Feb. 26 said it has received the second tranche of the nonbrokered private placement announced in November. The second tranche involves the sale of 10 million units at C5 cents per unit for proceeds of C$500,000. Each unit consists of one Advanced Explorations common share and one purchase warrant, with each warrant being exercisable to acquire an additional share for C10 cents for two years following the closing of the offering. The first tranche, which closed in December, involved the same number of units, prices and terms. Advanced Explorations is a Toronto-based resource development company focused on developing its Roche Bay and Tuktu Iron Ore Projects on the Melville Peninsula in Nunavut.

FINANCE – North Arrow Minerals Inc. Feb. 25 reported that it has issued 7.7 million common shares at a price of C65 cents per share for gross proceeds of C$5 million. The offering was led by Dundee Securities Ltd. on behalf of a syndicate including Mackie Research Capital Corp. The underwriters received a cash commission on the sale of the shares equal to 5 percent of the gross proceeds raised, excluding the gross proceeds from president’s list purchasers. The net proceeds will be used to fund North Arrow’s exploration and evaluation programs on its Canadian diamond properties, including the Qilalugaq (Nunavut), Redemption (Northwest Territories) and Pikoo (Saskatchewan) projects and for general corporate purposes. North Arrow and the Underwriters have mutually agreed to extend an over-allotment option to purchase up to an additional 2.3 million common shares for C65 cents each, for additional gross proceeds of up to C$1.5 million until March 7, 2014.

OPTION – West Melville Metals Inc. Feb. 17 said it has elected to exercise its right under the amendment to the Fraser Bay option agreement between West Melville and Roche Bay plc executed on May 10 by issuing 200,000 shares to the project vendor. Under the terms of the amendment, the dates by which the first and second options must be exercised have been extended from Sept. 30, 2013 to Dec. 1, 2014 for the first option and from Dec. 31, 2015 to April 15, 2017 for the second option. “We very much appreciate the cooperation of Roche Bay in concluding this arrangement,” said West Melville Metals President and CEO Rory Moore, Ph. D. “Both parties recognized that it would be challenging to finance a significant exploration program at Fraser Bay under current market conditions and concluded that delaying exploration work and preserving the capital structure of West Melville would be in the best interests of all stakeholders in the long term.” The Fraser Bay property is located on the west side of the Melville Peninsula, 180 kilometers (112 miles) southwest of the community of Hall Beach in Nunavut. It consists of a single mineral lease covering 3,228 acres that is currently owned by Roche Bay plc, with West Melville having an exclusive option to earn up to a 70 percent interest in the property by meeting a series of work and expenditure commitments, and making certain share payments.

MANAGEMENT – Canada Coal Inc. Feb. 14 reported that Abraham Jonker has resigned as president, CEO and director of the company, effective Feb. 28. R. Bruce Duncan, executive chairman of Canada Coal, will assume the role of president and CEO upon Jonker’s departure. “We are continuing our efforts to develop Canada Coal’s potential as a world-class coal asset and working with community and government stakeholders towards energy independence for the people of Nunavut,” said Duncan, who thanked Jonker for his contributions to Canada Coal. “We wish him all the best in his future endeavors,” he added. Canada Coal is focused on coal exploration and development in Nunavut through its two wholly-owned subsidiaries, Canada Sovereign Coal Corp. and 5200 Nunavut Ltd., and holds 86 active licenses covering more than 1.1 million hectares (2.7 million acres) located on Ellesmere Island and Axel Hieberg Island in Nunavut. Multiple high-quality thermal coal deposits were discovered on the company’s arctic coal license areas in Nunavut during a 2012 exploration program. More than 100 coal seams on the Fosheim Peninsula project area were assessed, resulting in the identification of extensive zones of low-sulfur, low-ash, sub-bituminous, thermal coal. The Fosheim Peninsula is the company’s primary exploration target and one of six coal license areas currently owned by the company.

URANIUM – Forum Uranium Corp. Feb. 6 said it has consolidated its North Thelon property interests by entering into a purchase and sales agreement with Agnico Eagle Mines Ltd. to acquire a 100 percent interest in Agnico Eagle’s Judge Sissons and Schultz Lake claims. Sufficient work has been done by Forum to keep these claims in good standing with minimal expenditures for three years. Agnico Eagle’s claims are strategically located immediately adjacent to AREVA Resources Canada Inc.’s 133 million-pound Kiggavik uranium deposit in Nunavut, which averages 0.54 percent U3O8, and is being permitted for an open pit and underground uranium mine that is projected to produce 8 million pounds per year over a mine-life of about 17 years. Under the terms of the agreement, which replaces the previous option agreement completed with Agnico Eagle in 2008, Forum will acquire a 100 percent interest in the Judge Sissons and Schultz Lake claims for C$250,000 cash, 675,000 common shares and a 2 percent net smelter returns royalty. On completion of the transaction, which is subject to approval of the TSX Venture Exchange, Agnico Eagle will own 4 percent of Forum’s outstanding common shares. Forum President and CEO Richard Mazur said, “This acquisition reinforces Forum’s strategy of maintaining a strong presence in both the Athabasca and Thelon basins. The Agnico Eagle purchase now gives Forum full control of a strategic landholding in close proximity to AREVA’s proposed Kiggavik uranium development. Our North Thelon project continues to be a long-term core asset that the company plans to revisit as uranium prices improve and as AREVA advances Kiggavik towards production.” As a further consolidation of Forum’s interests in the Kiggavik area, the company and its partner Nunavut Tunngavik Inc. have agreed to amend the terms of Forum’s mineral exploration agreement dated Jan. 1, 2009 on Inuit-owned land parcels BL-21 and BL-32 where Forum can earn a 100 percent interest, subject to certain terms and conditions. One of Forum’s best holes from drilling in 2011 on BL-32 is within 2 kilometers (1.24 miles) of one of Cameco’s discoveries, the Ayra showing. NTI has given Forum relief from work expenditures for 2014 and 2015 after which work must resume as scheduled under the terms of the agreement in 2016. Forum has the option to accelerate its work commitments and will continue to make its annual rental payments.


Did you find this article interesting? Email it to an associate.
Print this story

Mining News North - Phone: 1-907 522-9469 - Fax: 1-907 522-9583
[email protected] --- http://www.MiningNewsNorth.com
S U B S C R I B E