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April 17, 2014 --- Vol. 08, No. 16April 2014

Alaska News Nuggets

FINANCE – Ucore Rare Metals Inc. Apr. 17 closed the third and final tranche of a non-brokered private placement that grossed C$7.88 million. The first tranche, which was completed on Apr. 11, involved 10.58 million units at C38 cents per unit for gross proceeds of roughly C$4.02 million. On Apr. 16, Ucore issued an addition 8.1 million units at C38 cents for approximately C$3.08 million. A day later, the company raised an additional C$779,000 by issuing 2.05 million units at C38 cents. Each unit from the three tranches consists of one Ucore share and one purchase warrant. Each warrant entitles the holder to acquire one Ucore share for C50 cents. Warrants from the respective tranches expire on Apr. 11 and Apr. 17, 2017. Ucore paid finder's fees totaling C$26,942 and issued a total of 140,900 finder's warrants pursuant to certain subscriptions that were accepted in connection with the second and third tranches. Each finder's warrant entitles the holder to acquire one Ucore share at C38 cents until Apr.16 and Apr. 17, 2016. The net proceeds from the financing will be used for permitting and feasibility studies for the Bokan Mountain rare earth element property in Southeast Alaska and general working capital. “The funds were raised on a cost-effective basis and the investors' apparent support for the company and our projects and plans is exceptional,” said Ucore President and CEO Jim McKenzie. “We look forward to the next steps and the progress that will be made on the Bokan Mountain project and our continued march toward the intended development of a low cap-ex rare earth mineral mine and separation facility in Alaska.”

ZINC – Millrock Resources Inc. April 16 said it has staked the Lisburne project, a large claim group in Northwest Alaska that is prospective for large-scale zinc-lead-silver deposits. “We have seen an increasing interest in zinc from mining and smelting companies. We can see the potential for zinc shortages and price increases in the medium to long term and therefore have decided to act on this conceptual target. We will be looking for a strategic partner to advance the project to the drilling stage,” said Millrock President and CEO Greg Beischer. The Lisburne project is located 20 kilometers (12 miles) south of Cape Lisburne on the coast of the Chukchi Sea. It consists of 83 State of Alaska claims covering roughly 13,100 acres (5,300 hectares). The claim blocks cover age-equivalent rock strata that are known to host the Red Dog district zinc-lead-silver deposits approximately 140 kilometers (85 miles) to the southeast. Stream sediment samples collected by the United States Geological Survey indicate strong zinc and barium anomalies on the claims. The Red Dog Mine, a joint venture between Teck Corp. and NANA Regional Corp., is one of the world’s largest producers of zinc and lead. The sediment-hosted replacement ores are of exceptional grade and the deposits are large. Of the four known deposits at Red Dog, mining operations are currently extracting ore from Aqqaluk, which is reported to have 45.4 million tons of probable reserves containing 15.8 percent zinc and 4.1 percent lead at the end of 2013. Millrock Chief Exploration Officer Phil St. George said, “Red Dog is truly a world-class zinc mine. We feel there is excellent potential to discover similar deposits on our claim block. Our claims have strong zinc and barium anomalies in areas that are underlain by Red Dog time equivalent stratigraphy. Our geologists have extensive geologic knowledge of the Red Dog region rocks and are familiar with the most effective exploration techniques for the deposit type. Our local experience will allow for efficient exploration and will hopefully lead to discovery of any zinc-lead-silver deposits that may exist in this area.”

POLYMETALLIC – Constantine Metal Resources Ltd. April 16 reported that it has been awarded the right to lease the Haines block, a 99,257-acre land package contiguous with and surrounding its 16,000-acre Palmer property in Southeast Alaska. Constantine President and CEO Garfield MacVeigh said, “We are very pleased with the opportunity to secure this large, prospective and strategic land package. The Haines Block further consolidates Constantine’s district-scale property position and provides control of the entire tract of available land in the region with known volcanogenic massive sulfide potential.” Constantine was the successful applicant in a competitive lease process offered by the Alaska Mental Health Trust Authority, a state corporation within Alaska. The Trust owns the subsurface mineral estate of the Haines block, and for a small subset of the block, located adjacent to the Palmer property, land is held fee simple for which the Trust own both the surface and subsurface estate. Constantine and the Trust aim to finalize terms and conclude signing of the lease in advance of the summer field season. General lease terms are expected to include annual rental of US$25,000 per year for the initial three-year term; and work commitments of US$75,000 per year, escalating US$50,000 annually. The lease is also expected to include certain production royalties. Constantine said the Haines block shares similar geology to the Palmer property and is considered prospective for hosting high-grade massive sulfide mineralization. The property also covers areas upland of the active Porcupine placer gold district that has historically produced an estimated 82,489 ounces of gold. Constantine notes that this is the first time the Haines block has been offered to the public for competitive lease, and the property has had very limited exploration in recent decades.


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