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March 06, 2014 --- Vol. 08, No. 10 | March 2014
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Nunavut
GOLD – Sabina Gold & Silver Corp. Mar. 4 reported an updated mineral resource estimate for its Back River gold project. This new estimate consists of a measured mineral resource of 10.4 million metric tons grading 5.2 grams per metric ton (1.76 million ounces) gold, an indicated resource of 17.9 million metric tons grading 6.1 g/t (3.54 million ounces) gold and an inferred resource of 8.2 million metric tons grading 7.3 g/t (1.93 million ounces) gold. Back River, located in the West Kitikmeot Region of Nunavut, is made up of a series of seven claim blocks, of which two, Goose and George, have been the primary focus of exploration and resource development. Results from drilling in 2013 and geologic modelling on all deposits has increased the mineral resource estimate at Back River. In October, Sabina published a pre-feasibility study for Back River based on an open-pit mine supplemented by underground operations that feed a 5,000-metric-ton-per-day whole ore leach process plant. Operations are designed to produce an average of 287,000 ounces gold per year over the life of mine. The project is expect to take two years to complete at an initial capital cost of C$605 million with an estimated payback of 3.3 years from the start of operations. “In 2013, we completed a very significant drill program of approximately 83,000 meters at Back River, none of which was included in the Back River pre-feasibility study released last fall,” said Sabina President and CEO Rob Pease, “We believe this increased mineral resource estimate will increase the potential for a larger mineral reserve on the project. Additionally, we continue to make progress on optimization studies which could present opportunities for improved gold recovery and mining methods, the results of which will ultimately be used to support a feasibility study.” In 2014, Sabina intends to continue to advance the Back River Project towards completion of a feasibility study with a potential resource expansion drilling program in and around the new resource at Echo, located on the Goose property; ongoing optimization studies, including metallurgical testing, mining method and schedule optimizations and additional trade-off studies; and continuation of the environmental assessment and permitting process, including the collection of additional environmental baseline data. Sabina expects to complete these studies and initiate a full feasibility study later this year. The budget and work program for 2014 will be announced towards the end of the first quarter. “Sabina ended 2013 with approximately C$58 million in the treasury, which will enable us to advance through permitting and engineering studies with a surplus of cash on hand. We are very excited about the next phase of growth for our company as we work to become a gold producer,” said Pease.
FINANCE – Advanced Explorations Inc. March 3 said it has entered into an memorandum of understanding with XinXing Pipes (Hong Kong) Co. Ltd., a subsidiary of XinXing Ductile Iron Pipes Group Co. Ltd. pursuant to which the parties have agreed to amend the terms of the convertible debenture agreement dated March 2, 2012. The company and XDIP have agreed in principle to defer the maturity date of the debenture until March 2, 2015 in order to allow the company flexibility in its operations for the next 12 months. In consideration of this deferral, the debenture shall accrue interest at a rate of 4 percent per annum commencing from the original March 2, 2014 maturity date. In line with the terms of the original debenture, the definitive amendment agreement shall restrict XDIP’s conversion rights at the maturity date to 19.84 percent of the total outstanding common shares of the company. The conversion price with be based on the previous five-day closing average on the day of conversion subject to TSX minimum price conversion requirements of 10 cents per share. The terms of the memorandum of understanding are subject to the execution of a definitive agreement and requisite approvals from the TSX Venture Exchange.
Also, Advanced Explorations Feb. 27 reported that it has closed the second tranche of the nonbrokered private placement previously announced on Nov. 11, 2013. Pursuant to the second tranche, a total of 10 million units were sold to Hebei Han-Xing Institute of Mining & Metallurgy Design Co., Ltd. at a price of C5 cents per unit for gross proceeds of C$500,000. Each unit consists of one common share of the company and one purchase warrant, with each warrant being exercisable to acquire one common share of the company at a price of C10 for a period of 24 months following the closing date of the offering. In total, the company has issued 18 million shares to Han-Xing, of which 8 million are held by Han-Xing’s chairman, Jia Bingguo, in a personal capacity. The company said it is pleased to have the support of Han-Xing and fully anticipates that it will benefit from this relationship through improved access to China’s technical and financial communities. Han-Xing is a renowned comprehensive mining and metallurgical institute in China that operates globally. Established in 1976, Han-Xing has provided engineering consulting services to over 960 projects worldwide. With the equity ownership by Han-Xing and Jia Bingguo, the company is confident that Han-Xing will assist Advanced Explorations in sourcing engineering, procurement, and construction management out of China, as the case may be, and generate necessary reporting to support financing from Chinese banks. All securities issued in connection with the second tranche are subject to a hold period that expires on June 28, 2014. The private placement remains subject to final approval of the TSX Venture Exchange.
FINANCE – North Arrow Minerals Inc. March 3 reported that the underwriters to the C$5 million bought-deal private placement that closed on Feb. 26 have notified the company that they will not exercise the over-allotment option related to the private placement.
GOLD/SILVER/COPPER – Aura Silver Resources Inc. Feb. 28 said the results of a comprehensive report completed by L.E Reed Geophysical Consultant Inc., supports, from a geophysical standpoint, drill targets established geochemically by Activation Laboratories Ltd.’s Spatiotemporal Geochemical Hydrocarbon technology for the Aura Lake area as well as the Dingo prospect northwest of Aura Lake, both part of the Greyhound project. As reported by Reed, “Correlations between the geochemistry and various geophysical data suggest support for the possible identification of gold and silver deposits at Aura Lake and a gold and copper deposit at Dingo.” This report may be accessed at www.aurasilver.com under the section projects/Canada. Aura says the potential sources of high-grade gold boulders (up to 28 grams per metric ton) and high-grade silver (up to 5,300 g/t) have been identified in close proximity to Aura Lake. The gold and copper targets at the Dingo prospect area northwest of Aura Lake are surface showings. New interpretation of geophysical data and SGH has refined the drill targets. Auras said this geophysical analysis has identified multiple structures/contacts at Aura Lake that may have provided a pathway for fluids carrying mineralization and are interpreted to support the drill targets originally defined by geochemical analysis. Aura Silver CEO and President Robert Boaz said, “The detailed geophysics analysis undertaken by Reed gives us further comfort that we are zeroing in on the source of high-grade surface gold, silver and copper mineralization. Despite the difficult market for all junior exploration companies we continue to enhance the value of our properties.”
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