FINANCE – Millrock Resources Inc. Oct. 1 reported it has increased the previously announced non-brokered private placement. The company has received strong interest from parties that, if their subscriptions are accepted in full by Millrock, will become “reporting insiders” as defined under National Instrument 55-104. The financing will now consist of up to 80 million units at C5 cents per unit for gross proceeds of up to C$4 million. Each unit shall consist of one common share of Millrock and one purchase warrant, with each warrant entitling the holder thereof to purchase one additional share at C7 cents for a period of two years, and thereafter at a price of C10 cents per share for an additional period of three years. Millrock expects to pay finder’s fees in connection with this financing. The securities issued under this financing will be subject to a hold period of four months from the closing date. Millrock said the proceeds from the financing will be used for project generation, project marketing to partners and for general corporate purposes. The financing is subject to approval of the TSX Venture Exchange.
POLYMETALLIC SKARN – Contango ORE Inc. Sept. 30 said it has entered into a master agreement with Royal Gold Inc. for the formation of a joint venture to advance exploration and development of its Tetlin properties, subject to the approval of the company’s stockholders and the satisfaction of other conditions. Upon closing of the master agreement, Contango and Royal Gold will form a limited liability company to hold the joint venture assets, and the joint venture will be managed according to a joint venture agreement. Royal Gold will invest an initial US$5 million to fund exploration activity, and will have the option to earn up to a 40 percent economic interest in the joint venture by investing up to US$30 million, inclusive of the initial US$5 million investment, prior to October 2018. The proceeds of Royal Gold’s investment will be used by the joint venture for additional exploration and development of the Tetlin properties. Under the agreement Contango will contribute its 676,200-acre Tetlin lease and some 83,720 acres of state of Alaska mining claims near Tok to the joint venture. In January, Contango reported an indicated resource of 5.97 million metric tons averaging 3.46 grams per metric ton gold, 11 g/t silver and 0.25 percent copper for 783,115 gold-equivalent ounces at Tetlin’s Peak zone. Additionally, this skarn deposit has an inferred resource of 3.85 million metric tons averaging 2.07 g/t gold, 14.28 g/t silver, 0.23 percent copper for 332,969 gold-equivalent ounces. This 760,000-acre land package, together with other personal property, is valued at US$45.7 million by the joint venture. Contango Ore President and CEO Brad Juneau said, “We are excited that Royal Gold has agreed to join our effort to expand upon the promising exploration work we have initiated on the Tetlin lease and neighboring claims covering over 750,000 acres. Royal Gold has demonstrated experience and expertise that will be invaluable in expanding upon our Chief Danny Prospect, including the Peak Zone discovery. We look forward to working with Royal Gold on this venture.” Contango Ore anticipates seeking approval of its stockholders at its annual meeting of stockholders to be held later this year. No record date or meeting date has yet been set for the annual meeting. Contango Ore stockholders holding beneficial ownership of approximately 39 percent of the company’s stock have agreed to vote in favor of the Royal Gold joint venture transaction.
FINANCE – Graphite One Resources Inc. Sept. 30 reported the closing of a second tranche of its previously announced non-brokered private placement. The C$2.95 million raised in this tranche, along with the first tranche that closed on August 27, brings the total to C$4.98 million. Pursuant to this closing, Graphite One has issued a total of 22,686,925 units at C13 cents each. Each unit consists of one common share and one non-transferable purchase warrant. Each Warrant entitles the holder to purchase one additional common share of the company at C20 cents during the first two years from the date of issuance and C25 cents per share during years three and four from the date of issuance. No new insiders were created, nor any change of control occurred, as a result of the offering. Graphite One has paid finders’ fees to date in the aggregate amount of C$166,166 and issued 1,278,200 non-transferrable share purchase warrants, subject to the same prices and conditions as the warrants described above. Graphite One expects to close on a third tranche by the middle of October of up to an additional 5,165,385 units for total gross proceeds of C$671,500. NHP Asset Management AG based in Zurich Switzerland, serving and advising high net-worth clients and companies globally, will be subscribing for C$600,000 as part of this third tranche. The net proceeds of this offering will be used for exploration and development of the Graphite Creek project and for general working capital purposes.
POLYMETALLIC VMS – Constantine Metal Resources Ltd. Sept. 29 provided an update on the 10,000-meter drill program on the Palmer volcanogenic massive sulfide project in Southeast Alaska. Step-out drilling continues to expand the South Wall Zone both laterally and to depth. Assay results are reported for nine new drill holes, including CMR14-65 which cut 89 meters grading 0.79 percent copper, 5.03 percent zinc, 21.1 grams per metric ton silver and 0.32 g/t gold – the widest intercept to date. True width is estimated to be 70 percent of drilled width. CMR14-65 tested the eastern edge of the South Wall electromagnetic conductor plate – a 400-meter by 400-meter target area modelled from borehole geophysical data that is on-trend from the known resource. The center of the intersection is located about 50 meters east and 50 meters vertically above the CMR14-54 intersection reported in July that returned 22.1 meters grading 2.48 percent copper, 4.05 percent zinc, 24 g/t silver and 0.39 g/t gold. Constantine President and CEO Garfield MacVeigh said, “CMR14-65 is an exceptionally wide massive sulfide intersection located adjacent to the thick, high-grade intersection in CMR14-54. Combined, these holes indicate the presence of a significant zone of thick massive sulfide that is open to expansion in multiple directions. The Palmer Project is in the exciting resource expansion stage, and the ability to rapidly build tonnes has been well demonstrated with the ongoing success of the 2014 drill program.” The 2014 exploration program plans for at least 10,000 meters of drilling, of which approximately 6,913 meters in 11 holes have been completed and reported on to date. The objective of the program is to increase inferred mineral resources and expand the footprint of the mineralized system. The program does not include definition or in-fill type drilling. Three to four drills have been active on the project since late May, utilizing a coarse grid pattern with nominal 100 meter step-outs. Hole deviation has resulted in larger, or smaller, step-outs than planned for some holes, as for example occurred with hole CMR14-63 that intersected the EM plate about 100 meters further up-dip than planned. CMR14-63 intersected a 33.9 meter wide mineral assemblage (0.12 percent copper, 1.69 percent zinc, 0.06 percent lead, 12.8 g/t silver and 0.1 g/t gold) which is interpreted to be distal in character, with multiple layers of well mineralized chert and massive barite-sulfide interlayered with more weakly mineralized sedimentary units and tuff. The 89-meter intersection in hole CMR14-65 near the eastern edge of the EM plate consists of alternating layers of semi-massive to massive barite-sulphide and mineralized cherty breccia with approximately 15 percent cross-cutting mafic dykes. The majority of the intersection is non-conductive barite-sphalerite dominant mineralization, with the lowermost 15.7 meters consisting of massive chalcopyrite-pyrite-pyrrhotite dominant mineralization that correlates with the modelled EM conductor. No significant copper-rich feeder zone was intersected in CMR14-65, which suggests drilling has yet to test the central, vent-proximal portion of the system in this area. A total of five holes have tested the EM plate as part of the 2014 program, testing less than 25 percent of the total EM plate target area. Significant mineralization has been intersected in all five holes and confirms that the EM plate is associated with a well-developed zone of massive sulfide mineralization. New results extend the South Wall Zone a further 100 meters west and 50 meters lower in elevation. South Wall mineralization has now been defined over a vertical distance of greater than 650 meters, and 500 meters along strike. In addition to holes targeting the EM plate, hole CMR14-59 successfully intersected western extensions of the South Wall with 15.4 meters grading 1.03 percent copper and 2.88 percent zinc. This intersection is located approximately 90 meters west and 60 meters below a 4.8-meter intersection grading 0.85 percent copper and 21.62 percent zinc (hole CMR08-17). The zone remains open to further expansion to the west. Constantine said drilling is ongoing to expand these exciting new areas of mineralization. Borehole geophysical survey work has been added to the 2014 exploration program with the objective of both refining and expanding the EM plate for the conductive portion of this new deep zone of mineralization. Based on data from other parts of the mineral deposit, the conductive part of the zone typically correlates with the core of the massive sulfide lens, whereas non-conductive mineralization may extend considerable distance laterally. Drilling at the EM plate target has yet to identify a strong footwall feeder zone like that observed for South Wall Zone I, where hole CMR08-14 intersected 46.4 meters grading 2.92 percent copper and 2.98 percent zinc, over a third of which consisted of feeder style stringer mineralization. In addition to resource expansion at South Wall, a portion of the drilling has been dedicated to testing reconnaissance targets. This includes targets to the east and north of the South Wall resource, as well as, to the northwest of the RW zone where a drill is currently in operation targeting an area down-dip of the high-grade Little Jarvis showing (located about 1,000 meters northwest of the South Wall resource). Plans to test other prospects such as Cap and MHC have been postponed until 2015 due to a shift in priority following the discovery of thick, high-grade massive sulfide at the South Wall EM plate target.
