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| July 31, 2014 --- Vol. 08, No. 31 | July 2014
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Alaska News Nuggets
GOLD/SILVER/COPPER – Nortec Minerals Corp. July 31 said a subsidiary, Fennor Minerals Corp., has signed two memorandums of understanding to acquire 100 percent interest in the Golden Zone property located in Southcentral Alaska, some 320 kilometers (200 miles) north of Anchorage. One MOU, with Chulitna Mining Company LLC, provides for Fennor to acquire Chulitna's interest in the property. The second, with Mines Trust Co. and Hidefield Gold, Limited & Hidefield Gold (Alaska) Inc., addresses the interests of the underlying landowners of the property. Together the MOUs provide for Fennor's acquisition of 100 percent interest in the Golden Zone Property, subject to cash option payments, shares and net smelter payments. Deposits and prospects at Golden Zone include a pipe-like body of stockwork controlled breccia mineralization in the late Cretaceous quartz monzonitic intrusive rocks, skarn zones near the intrusive - Permian carbonate and calcareous argillite contacts, and vein and shear-related mineralization in both the intrusive and meta-sedimentary and meta-volcanic rocks. Gold mineralization is associated with silver, arsenic, bismuth, antimony and copper values. The Golden Zone Breccia deposit contains an-NI 43-101 compliant resource of 1.97 million metric tons grading 3.41 grams per metric ton gold, 16.62 g/t silver and 0.11 percent copper in the measured category; and 2 million metric tons grading 2.37 g/t gold, 16.25 g/t silver and 0.09 percent copper in the indicated category. Both calculated at a cut-off grade of 1 g/t gold. Nortec reports that these resources were estimated in 2011 and do not include any subsequent drilling performed in 2011. An updated NI 43-101 technical report will be commissioned upon receipt of approval from regulatory authorities. Metallurgical tests carried out in 1994, 1996 and 1997 indicate gold recoveries of 82 to 85 percent and silver recoveries of 27 to 42 percent using a mill-flotation-cyanidation process at a grind size of minus-100 mesh. Nortec said roughly 80 percent of the copper should also be recoverable. Nortec subsidiary Fennor will raise C$1 million privately to update the resources and to assist in making plans to initiate a pre-feasibility study for Golden Zone. These plans will include detailed metallurgical test work, access road studies and preliminary cost analysis for development. Under the MOU, Fennor has agreed to pay Chulitna a C$50,000 signature payment upon TSX Venture Exchange approval of the Fennor-Chulitna MOU; C$250,000 in cash and C$250,000 in shares by the end of 2014; annual rental payments of C$50,000 in cash and C$50,000 in shares for years 2015, 2016, 2017, 2018 and 2019; Fennor will make advanced royalty payments of C$50,000 in cash and C$50,000 from 2020 until start of production. To acquire Mines Trust and Hidefield’s 30 percent joint venture interest in Golden Zone, Fennor will pay C$20,000 in cash to Mines Trust and C$30,000 in cash to Hidefield; issue 2.4 million shares of voting stock to Mines Trust and issue 3.6 million shares to Hidefield; grant a 1 percent net smelter return to Mines Trust and 1.5 percent NSR to Hidefield; and provide Mines Trust and Hidefield the right to participate in future financings undertaken by Fennor. The recent previous work on the Golden Zone property was primarily directed by David Hedderly-Smith, who will continue to consult for the project and offer any assistance as needed. Nortec is a Vancouver B.C.-based mineral exploration company with several projects in Finland.
RARE EARTHS – Ucore Rare Metals Inc. July 30 said the U.S. Geological Survey is moving forward with a laboratory and a field-based research program at the Bokan Dotson Ridge deposit in Southeast Alaska. The program is intended to advance the agency’s understanding of heavy rare earth element mineral resources. Currently, the U.S. relies on imports of heavy REEs and Bokan is considered a potential source. Ongoing research will examine in detail the mineralogy of the Dotson Ridge REE deposit. New fieldwork this summer included geological mapping of the Bokan intrusive complex and sampling of numerous associated REE mineral occurrences. The goal of this research is to characterize the tectonic environment which generated the mineralization. “These initiatives reaffirm that this Alaska-based deposit is increasingly recognized as an asset of critical importance to American high technology, defense systems and alternative energy. They also demonstrate a commitment to the understanding and advancement of this strategic resource at a federal level, which complements the tremendous support of state agencies in Alaska,” said Ucore President and CEO Jim McKenzie.
QUARTERLY UPDATE – Kinross Gold Corp. July 30 reported results for the second quarter 2014. During the quarter, Kinross produced 679,831 gold-equivalent ounces, compared with 655,381 million ounces during the same period last year. The all-in sustaining cost per gold-equivalent-ounce sold during the quarter ending June 30, 2014 was US$976, a decrease from the US$1,038 per ounce during Q2 2013. “Kinross’ focus on financial discipline and operational excellence continues to deliver results, with another strong quarter that puts the Company at the high end of its 2014 guidance range on production, and the low end of its 2014 guidance range on costs at the half-year mark,” said Kinross CEO J. Paul Rollinson. The company’s realized gold price during the second quarter of this year was US$1,285 per gold-equivalent oz, down from the US$1,394 during the same period of 2013. As a result, Kinross adjusted net cash flow dropped to US$228.3 million (US20 cents per share) during Q2 2014 compared to US$256.7 million (US22 cents per share) during the same period last year. Kinross expects to be within its 2014 forecast guidance for production (2.5-2.7 million gold-equivalent ozs), production cost of sales (US$730-780 per gold-equivalent oz sold), all-in sustaining cost (US$950-1,050 per gold-equivalent-ounce sold), and total capital expenditures ($675 million). At its Fort Knox Mine in Alaska, Kinross produced 174,904 ozs of gold during the second quarter of this year, a decrease from the 195,992 ozs produced during Q2 2013.
U.S. LISTING – Zazu Metals Corp. shares July 28 began trading on the OTCQX exchange under the ticker symbol ZAZUF. United States investors can find current financial disclosures, reports, and Real-Time Level 2 quotes for Zazu at www.otcmarkets.com. “We are pleased to welcome Zazu to the OTCQX marketplace,” said R. Cromwell Coulson, president and CEO of OTC Markets Group. “Trading on OTCQX will provide Zazu’s U.S. shareholders transparent trading and convenient access to its news and financial disclosure so they can more easily analyze, value and trade its securities.” Zazu’s primary asset is the Lik zinc-Lead deposit located some 14 miles (22 kilometers) from the high-grade Red Dog zinc mine in Northwest Alaska. Several analysts predict a shortfall in supply of zinc by 2015. Zazu, which has long considered Lik as a potential mine to help fill the expected zinc shortage, is advancing the project towards a production decision. “There are very few ways to invest in zinc in the US. Zazu’s Lik property, located in Alaska, has natural ‘sovereign’ appeal to US investors, aside from all its other qualities. Listing on OTCQX marketplace gives US investors clear access to trade in Zazu stock, broadening and enhancing our shareholder base,” said Matt Ford, Zazu’s President. Scarsdale Equities serves as Zazu's principal American liaison on OTCQX, responsible for providing professional guidance on OTCQX requirements. Zazu continues to trade on the Toronto Stock Exchange under the ticker ZAZ.
WARRANT EXTENSION – Freegold Ventures Ltd. July 28 reported it has further extended the expiry date of 1,648,297 purchase warrants issued pursuant to a private placement completed by the company on Aug. 2, 2012. The original expiry date of Feb. 2, 2014, which was originally extended to Aug. 2, 2014, has now been extended to Aug. 2, 2015. In addition, the expiry date for 50,000 warrants previously issued pursuant to a private placement completed by the company on Aug. 15, 2012 has also been extended. The original expiry date of February 15, 2014, which was extended to Aug. 15, 2014, has now been extended to Aug. 15, 2015. The per share exercise price of C25 cents remains the same for all warrants from both financings. Freegold said no insiders of the company hold any warrants that are being amended.
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