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.

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

British Columbia

GOLD – Pretium Resources Inc. April 16 offered an update on the activities underway and planned for 2014 at its high-grade gold Brucejack project in northwestern British Columbia. Pretium said it expects to file an environmental assessment certificate application this quarter once it receives the final application information requirements from the British Columbia Environmental Assessment Office, which is expected shortly. Once filed, the application will be evaluated for completeness over a 30-day period by regulators with the involvement of a working group including representatives of First Nations and local governments and other government agencies. Once the application has been accepted, the BC Environmental Assessment Office has a maximum of 180 days to complete its review and prepare an assessment report for a decision by the BC Minister of Environment and Minister of Energy and Mines. In coordination with the provincial permitting process, the Canadian Environmental Assessment Agency will review the environmental impact statement, which Pretivm will submit concurrently with the provincial EAC application. Provincial and federal approval of the EAC application and EIS, respectively, will allow statutory permits and authorizations to be issued to begin construction of a mine at Brucejack. Work to update the Brucejack feasibility study has been ongoing, with the mine plan and mining stopes now updated to incorporate the revised economic parameters of US$1,100-per-ounce gold, US$17/oz silver and $0.92 CAD:US exchange rate. Based on this work, the production rate of 2,700 metric tons per day has been confirmed. Other updates include equipment and materials pricing to the second quarter, and the update of labor rates, schedule and productivity. The amended Brucejack project feasibility study is on track for completion in June. On completion of the amended feasibility study, basic engineering will commence in the third quarter, including the order of long-lead items to facilitate the start of construction once permits for the project have been received. Subsequent to the bulk sample program, underground exploration in the Valley of the Kings Zone was undertaken to assess the geological nature of the stockwork mineralization between the dominant east-west system and the north-south Cleopatra structure in the area of the 426615E cross-cut and 615 lateral. Non-selective material, which featured visible gold to varying degrees, was bagged from the blast rounds from benching (rounds of 3 meters by 2 meters and ranging in length from 10 to 15 meters), and from raising (rounds of 1.5 meters by 1 meter by 2 meters). The gold mineralization was hosted in variably-oriented parts of the system, and not limited to a single structural feature. In February 2014, 1,000 metric tons of the bagged material from the 2013 Valley of the Kings exploration was processed at the Contact Mill in Montana. From the production of gravity and flotation concentrates, Pretium recovered roughly 3,120 ounces of gold. The bulk of the assays have been received to date from Inspectorate America Corporation, and final gold production remains subject to remaining assays and final establishment of weights and assays and settlement. The Valley of Kings hosts measured and indicated gold resources of 8.7 million oz (15.3 million metric tons grading 17.6 g/t gold). A portion of the proceeds from this one-time production will be used to fund initiatives in northern British Columbia promoting community development. Under British Columbia’s Mineral Tenure Act regulations, we are permitted to process up to 1,000 metric tons per annum per claim unit. We will evaluate the potential for the production of 1,000 metric tons of selective high-grade material later in the year. Crews are mobilizing to site to commence the 2014 exploration program at Brucejack which has been planned with a focus on continued resource definition in the Valley of the Kings, and which includes 15,000 meters of underground infill and step-out drilling to the east and west. The design of an access ramp from the 1345-meter level access ramp to the 1260-meter level is now being finalized.

GOLD – Banks Island Gold Ltd. April 16 reported the receipt of all major regulatory permits to allow commercial production at the Yellow Giant gold project on Banks Island, B.C. The British Columbia Ministry of Environment has issued an Environmental Management Act Permit for Yellow Giant Gold Property which authorizes the discharge of water from the rock stockpiles, plant area, and the underground mine at Yellow Giant. Banks Island also said it received a production tenure for the Yellow Giant project in the form of a British Columbia Mining Lease. The company has previously received its Major Mines Act Permit.

COPPER/GOLD – Romios Gold Resources Inc. April 16 reported the results of a summary interpretation report of a helicopter-borne Z-Axis Tipper Electromagnetic and aeromagnetic geophysical survey that was carried out on its Newmont Lake project in northwestern British Columbia. The company said that more than 17 discrete magnetic anomalies have been outlined in the survey completed by Geotech Ltd., of which nine currently appear to be unexplained geologically and could represent significant exploration targets. Based on a geophysical target model for alkaline porphyry mineral deposits and related skarn-type occurrences, Romios said at least 14 favorable resistivity and magnetic high-priority exploration targets have been identified. Romios President and CEO Tom Drivas said, “We are extremely pleased that the results of the geophysical surveys carried out by Geotech Ltd. readily identified the known copper-gold-silver occurrences on which Romios has been conducting exploration programs during the last several years. We are even more excited that the surveys identified new geophysical anomalies that could have significant exploration potential. Since the scope of the present study did not allow a full evaluation of the survey results, we are considering a more detailed interpretation of the geophysical data generated by the airborne survey which may include 3D ZTEM and 3D magnetic inversions and ground follow-up.”

GOLD – Seabridge Gold Inc. Apr. 15 said Revolution Resources Corp. has entered into an option agreement to acquire Seabridge’s Red Mountain gold project in northwestern British Columbia. Revolution, which has been focused on gold exploration in North Carolina and Mexico, is led by president and CEO Rob McLeod. Under the terms of the option agreement, Revolution can acquire all of Seabridge’s interest in Red Mountain by issuing to Seabridge 29.733 million company shares, representing 19.9 percent of the issued and outstanding shares of Revolution post issuance; paying Seabridge C$2 million cash in staged payments (C$1 million payable within 90 days and C$1 million within 18 months); and incurring C$7.5 million in exploration and development expenditures over three years. Revolution has the right to extend the deadline for expenditure of the final $2.5 million by one year by paying Seabridge C$250,000. Upon the commencement of commercial production, Revolution would make an additional one-time C$1.5 million cash payment to Seabridge and Seabridge will also retain the right to acquire 10 percent of the annual gold production from the property at a cost of $1,000 per ounce up to a maximum of 500,000 ounces produced (50,000 ounces to Seabridge). Alternatively, at Seabridge’s sole option, Seabridge may elect to receive a one-time cash payment of C$4 million at the commencement of production in exchange for the gold metal stream interest. The transaction will be subject to the approval of Revolution shareholders and the Toronto Stock Exchange. Seabridge Chairman and CEO Rudi Fronk said, “We are confident that Revolution’s management team has the experience and capacity to generate significant value from building a mine at Red Mountain which will benefit Seabridge as a Revolution shareholder and as participant in the project’s gold stream.”

FINANCE/POLYMETALLIC – Homestake Resource Corp. Apr. 14 reported that an arm’s length individual has agreed to loan Homestake C$100,000. The loan is repayable in 12 months and interest is payable quarterly at a rate of 8 percent per annum. At the election of Homestake, interest may be paid by the issuance of common shares in accordance with the policies of the TSX Venture Exchange. By way of security, Homestake will deliver to the lender a general security agreement and will also assign to the lender a loan agreement between Homestake, as lender, and a third party borrower. As additional consideration, Homestake has agreed to issue the lender 2 million purchase warrants. Each bonus warrant is exercisable to purchase a common share of Homestake at a price of C5 cents for a period of 12 months. Proceeds from the loan will be used to purchase a 625-square-kilometer (241 square miles) Kinskuch property located in northwestern British Columbia. Homestake has subdivided the Kinskuch property into four general prospect areas – Esperanza, which hosts an Eskay Creek-type high grade silver-gold system at the historic Esperanza mine; FH, which hosts a porphyry copper-gold drill target; Illiance, which host a high-grade silver-lead-zinc occurrence; and a fourth area has not yet been evaluated by the company. Homestake is seeking funding partners to drill targets that have already been identified at three of the prospect areas, while developing additional drill targets on this well-mineralized and extensive land package. Two specific targets have been identified recently as high priority from existing data; the Kitgold target as part of the Esperanza property package and the Goldstream target as part of the Illiance property package. Homestake President Joe Kizis said, “Homestake is leveraging our target-rich land position in this highly prospective mineral district by seeking funding partners, as we have done at our Homestake Ridge property by bringing in Agnico Eagle. We have subdivided the much larger Kinskuch property into four prospect areas because three of these areas have targets that we expect will be of interest to different types of mining companies. We are signing confidentiality agreements and showing data to various companies in anticipation of field examinations taking place beginning in June. With a $3 million spending commitment at our Homestake Ridge property and an anticipated 40- to 50-hole drilling program recently announced for 2014 by neighbor Dolly Varden Silver, we expect exciting news from the district.”

COPPER – Imperial Metals Corp. Apr. 11 reported the resumption of mill operations at Huckleberry copper mine on Apr. 5. The Huckleberry mill went down on Feb. 26, when a tooth failed on the semi-autogenous grinding mill bull gear, damaging this gear and one of the pinion gears on the dual drive mill. To enable the SAG mill to be restarted, the damaged teeth on the bull gear were re-profiled to reduce the load on these damaged teeth, the north pinion gear was replaced with a spare, and the rotation of the mill motors was reversed. A replacement bull gear and two pinion gears for the SAG mill have been ordered and are expected to be on site by September.

LISTING REVIEW – Canarc Resource Corp. April 7 provide additional information regarding the continued listing review being conducted by the Toronto Stock Exchange. The TSX has advised the company that in order to maintain the listing of its common shares on the TSX, Canarc must meet the TSX requirements with respect to working capital and property expenditures. The TSX has granted the company extensions with respect to these requirements and will be assessing the company’s progress with respect to the requirements in 30 days. In order to ensure that it has adequate working capital, the company has completed private placements since January 2014, raising a total of C$2.86 million. The company expects that this satisfies the TSX requirement with respect to working capital. As the completion of the company’s proposed transaction with Pan American Goldfields Ltd. may satisfy the TSX requirements with respect to property expenditures, the TSX will be reviewing the company’s progress with respect to the proposed transaction. Pursuant to the company’s letter of intent with Pan American, as announced on Feb. 24, the company has until June 30 to complete its due diligence and enter into a definitive agreement with Pan American. If Canarc determines that the proposed transaction with Pan American is not in the best interests of its shareholders and does not enter into a definitive agreement with Pan American by June 30, the company plans to incur expenditures of at least C$350,000 for exploration on its core existing projects during 2014. The company expects that this will satisfy the TSX requirement with respect to property expenditures.


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