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March 27, 2014 --- Vol. 08, No. 13March 2014

Northwest Territories

ZINC-LEAD – Tamerlane Ventures Inc. March 26, 2014 reported that it has received an updated NI 43-101 summary technical report for its Pine Point zinc-lead project in the Northwest Territories. The technical report provides for a 12-year mine life. Using metal prices of US95 cents zinc and US$1.00 lead, the Pine Point project has a net present value exceeding C$111.68 million and an internal rate of return of 35 percent. The proven and probable reserves for 10 deposits at Pine Point, including the R-190 deposit, are summarized in the technical report. They total more than 25.6 million metric tons with average grades ranging from 2.6 percent zinc with 0.7 percent lead up to 12.47 percent zinc with 6.1 percent lead. Of the six underground deposits classified as reserves in a 2008 technical report, only one deposit, R-190, has been included in the financial analysis of this 2014 technical report. Reserves in the remaining five 2008 underground deposits have been reclassified as measured and indicated resources. The new technical report was prepared by Albert Siega, P.Eng, MBA, an independent engineering and project consultant, in conjunction with Paul Gann, P.Geo. Siega Technical Report believes experience from the R-190 underground mine is essential to final evaluation of the remaining five deposits to reserve status. The technical report will be filed on SEDAR by March 28. After several months under a court order granting protection from creditors, Tamerlane was placed in receivership in late January. The company is currently in the process of selling its assets and business.

GOLD – Nighthawk Gold Corp. March 26 reported assay results from 18 historical holes drilled from 1986 on its recently acquired Cass gold deposit at its Indin Lake gold property in the Northwest Territories. Nighthawk also proposed consolidating its shares on a five-to-one basis. Highlights of the historic drill results include hole 86-34, which intersected 36.85 meters of 5.67 grams per metric ton gold, including 16.30 meters of 10.08 g/t gold, and 9.80 meters of 14.05 g/t gold; hole 86-18 which intersected 26.65 meters of 6.53 g/t gold including 16.75 meters of 8.94 g/t gold, and 4.30 meters of 16.45 g/t gold; and hole 86-27 intersected 41.40 meters of 3.35 g/t gold including 27.90 meters of 4.55 g/t gold, and 12.00 meters of 6.51 g/t gold. The majority of the historic drill intersections lie within 75 meters of surface. On the consolidation of Nighthawk shares the company said the move aims to optimize its capital structure to better attract capital financing and enhance future growth opportunities. In December, Nighthawk optioned four mining leases from Geomark Exploration Ltd., a subsidiary of Pine Cliff Energy Ltd. The agreement encompasses not only the Kim and Cass gold deposits but also several other prospects. The Cass deposit is connected by road to Nighthawk’s Colomac Gold Property located 20 kilometers to the northeast. Mineralization is characterized by stockwork quartz-carbonate veins with minor pyrite, pyrrhotite and arsenopyrite within a northeast trending intrusion. About 13,500 meters of historic drilling traced the mineralization over a strike length of 360 meters and to a depth of 210 meters. The deposit remains open in all directions.

GOLD/POLYMETALLIC – TerraX Minerals Inc. Mar. 25 said it has begun 2014 drilling at the Yellowknife City gold project in the Northwest Territories. The first hole was collared on the Northbelt property, the strike extension of the geology which hosted the previously producing Con and Giant gold mines. This marks the first drilling on the Northbelt since 1996, a period of 18 years. TerraX’s first drill campaign will total some 6,000 meters of drilling and test three initial target areas; the Barney Shear, which is the extension of the Con-Giant shear system; the Crestaurum zone, which is a high-grade zone with nearly 200 historical drill intersections; and the Homer Lake base and precious metals target at the north end of the property The first hole at Homer Lake will target a buried conductor identified by airborne surveys in 2013 that has never been drilled. This target area is within 500 meters of a previously established ice road which makes winter access easier and with much less environmental impact than overland access in summer conditions. TerraX expects to be able to take advantage of 6-8 weeks of ice road use before spring breakup. Although Crestaurum and the Barney Shear are currently TerraX’s highest priority gold targets, the logistics associated with Homer Lake access dictate that it be drilled first. Homer Lake was originally discovered from surface prospecting in the 1930s and six mineralized structures were delineated during reconnaissance prospecting by TerraX in 2013. One structure has been traced for 1,200 meters and has chip sample results of 7 meters grading 0.50 grams per metric ton gold, 90.2 g/t silver, 4.25 percent lead and 0.89 percent zinc. A parallel structure sampled by TerraX returned 5 meters grading 1.54 g/t gold, 95.5 g/t silver, 3.13 percent lead and 1.59 percent zinc. A grab sample by TerraX from a third structure graded 0.60 g/t gold, 529 g/t silver, greater than 20 percent lead, and 9.44 percent zinc. Historical reports of drilling on another structure included 6.1 meters of 2.54 g/t gold, 204 g/t silver, 10.82 percent lead, 6.03 percent zinc and 0.55 percent copper less than 50 meters below surface. In July 2013 TerraX carried out an airborne electromagnetic survey which revealed a 1,200-meter long, north-trending conductor at the Homer Lake target, 400 meters of which is highly conductive. The source of this conductor is buried and 3-D modeling indicates a top of the conductor at approximately 110 meters below surface, with a steep westerly dip. None of the known surface mineralized zones mentioned above were conductive in the 2013 survey, and the buried conductor has never been tested by drilling. This conductor will be the target of this initial 750-meter drill program planned at Homer Lake, following which the drill rig will be moved to south end of the property to commence drilling at Barney and Crestaurum.

DIAMONDS – Mountain Province Diamonds Inc. Mar. 24 provided an update on progress at the Gahcho Kué diamond project, a joint venture between De Beers Canada (51 percent) and Mountain Province Diamonds (49 percent). At the end of February, the overall Gahcho Kué project was 17 percent complete and first production remains on schedule for the third quarter of 2016. In a statement issued on March 21, and available at www.debeersgroup.com, De Beers confirmed that there has been no change in the project schedule and that “both partners are happy with the progress to date.” Mountain Province reports that roughly 670 truckloads of equipment and supplies have been delivered to Gahcho Kué on the 2014 ice road and about 100 additional truckloads are expected to be delivered by the end of March. There are currently some 120 people on site, and this number is expected to increase through the balance of the year. At peak construction, about 700 people will be employed at Gahcho Kué. Work to date has been completed without any lost-time injuries. Construction of the main airstrip has begun and prefabricated units of the main camp have been delivered to Gahcho Kué. The main camp and airstrip are expected to be ready for use by mid-2014. Delivery and installation of eight 500-cubic-meter fuel tanks has been completed and fuel deliveries are currently underway. Construction of two 18,000-cubic-meter fuel tanks is also underway. Sufficient fuel will be delivered to site to support the construction operation for the next twelve months. Photographs of site activities are available at www.mountainprovince.com. Preparation of the feasibility study update is continuing and the results are expected to be announced by the end of the month. Mountain Province said it will provide further details on financing plans upon completion of the updated feasibility study. Processing of the Gahcho Kué full Land Use Permit and Class A Water License remains on schedule and the company anticipates the new permits to be approved during the second half of 2014.

FINANCE – North American Tungsten Corporation Ltd. March 24 reported that is has obtained approval from the TSX Venture Exchange for the conversion right to a principal amount of US$9 million of debentures previously issued. The convertible debentures will be convertible into common shares of the company at a price equal to C12 cents per share. The convertible debentures apply a fixed exchange rate of C$1 = US94 cents. N.A. Tungsten obtained shareholder approval relating to the conversion right at its annual general meeting of shareholders Feb. 21. As a result of the conversion right, directors Ronald A. Erickson and Kurt Heikkila now own directly and/or control more than 55 percent of N.A Tungsten’s issued and outstanding shares – 36.4 percent directly and 19.0 percent through Minnesota-based private investment firm Queenwood Capital Partners II LLC and David S. Erickson of Minnesota controls a further 10.7 percent of the company’s issued and outstanding shares.


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