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July 17, 2014 --- Vol. 08, No. 29July 2014

Nunavut

FINANCE – Northquest Ltd. July 14 reported the closure of the second tranche of a non-brokered private placement in which Northquest issued 10 million units to Nord Gold N.V. at a price of C20 cents per unit to raise C$2 million. Nordgold now holds 12,777,777 common shares of Northquest, representing 22.6 percent of the issued and outstanding common shares on a non-diluted basis, and warrants to acquire up to an additional 6,388,889 shares. Nordgold has the right to appoint one representative to Northquest’s board of directors and the right to participate pro rata in all future equity issuances by Northquest, subject to certain conditions. In connection with Nordgold’s appointment right, Northquest has increased the size of the board to five and appointed Igor Klimanov, development project director of Nordgold, to the board. Klimanov has been with Nordgold since its inception as the gold mining division of OJSC Severstal in 2007. In September 2009, he was appointed to the board of directors of High River Gold Mines Ltd. Previously, he was CEO of High River and manager for strategy and corporate development at Severstal Resources. Igor holds a Ph.D. from the Swiss Federal Institute of Technology and an Engineering Physics degree from the Moscow Engineering and Physics Institute. Jon North, President and CEO of Northquest stated: “I am delighted to report the closing of this transaction with Nordgold together with the other benefits that will accrue to Northquest because of this transaction. I am also very pleased to report that in early July two Nordgold executives and a technical team of two of Nordgold’s geologists completed their due diligence assessment of the Pistol Bay property in Nunavut, Canada , which included a four day site visit by the technical team. As expected, the results of the site visit were positive and we are very happy to have the confidence and approval of Nordgold and their endorsement of the Pistol Bay Gold Project. We look forward to working with Nordgold on the development of the Pistol Bay project in the Canadian Arctic.”

SILVER/GOLD – Aura Silver Resources Inc. July 10 reported that Agnico Eagle Mines Ltd. has begun an initial 1,000-meter drill program on Aura Silver's Greyhound property in Nunavut as part of an earn-in agreement that allows Agnico Eagle the right to earn up to a 70 percent interest in the Greyhound property. The drill program will target three distinct areas around Greyhound’s Aura Lake claim group: south and south east Aura Lake, where multiple one ounce gold samples and silver samples of up to 5,380 grams per metric ton were found by Aura Silver during soil sampling and the examination of sulfide-rich boulders; north Aura Lake, where base-metal samples assaying up to 9.2 percent copper and 18.5 percent zinc were found during prospecting by Aura geologists; and the Dingo prospect to the northeast, where prior discoveries include copper mineralization in a 200- by 300-meter gossan zone and in the area of a 1,000-meter quartz vein which assayed up to 9.1 g/t gold and 96.6 g/t silver. During this initial drill program, approximately 300 meters will be drilled for each area. All targets are located near the access road that connects Agnico Eagle’s Meadowbank Mine to the Baker Lake community. “This is an exciting time for Aura Silver as we hope to realize the value of the work we have done to date and which our partner has evaluated by analyzing both the geochemical and geophysical anomalies in all three target areas,” said Aura Silver CEO Robert Boaz. “This is a highly prospective area of Nunavut and we are happy that Agnico Eagle has joined us in our exploration endeavors.”

IRON – Specialty ArcelorMittal sheet piles, produced in the Belval and Differdange mills in Luxembourg, are making their way by ship to the high arctic, Baffinland Iron Mines Corp. reported July 11. There, they will be used to construct a sheet pile dock at Milne Inlet, which will serve as the port for Baffinland’s Mary River project. Straight web sheet piles, AS 500- and HP-bearing piles, as well as special piles fabricated by a specialized local subcontractor, are being shipped from Antwerp, Belgium, to Nunavut to form part of the Milne dock. The dock will support a two-tower radial ship loader and reclaim conveyor system that will load vessels with iron ore from Baffinland’s Mary River deposit. Antwerp is the headquarters of ArcelorMittal logistics, and Baffinland felt that ArcelorMittal logistics was best-suited to provide marine transportation services to deliver the sheet piles to North America. Baffinland is focused on developing large, high-grade iron deposits on the Mary River property.


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