FINANCE/CONSOLIDATION – Millrock Resources Inc. Oct. 23 said it has closed a previously announced private placement of 80.9 million units at a price of C5 cents per unit for gross proceeds of $4.05 million. Each unit consists of one common share of Millrock and one share purchase warrant, with each warrant entitling the holder thereof to purchase one additional common share at a price of C7 cents until Oct. 21, 2016, and thereafter at a price of C10 cents per share until Oct. 21, 2019. Finder’s fees were paid as follows: C$171,200 and 4.28 million non-transferable finder’s options have been paid to Global Market Development LLC; $17,520 and 350,400 non-transferable finder’s warrants have been paid to Red Plug Capital Corp. The finder’s options entitle the finder to purchase units at C5 cents until Oct. 21, 2019. The finder’s warrants have the same terms as the warrants except that they are non-transferable. Additionally, Millrock reports that the 10:1 share consolidation announced on Sept. 22, 2014 will be effected on Oct. 24, 2014. Millrock’s name and trading symbol will remain the same.
EXPLORATION POTENTIAL – The Alaska Division of Geological & Geophysical Surveys Oct. 22 released a publication highlighting new radiometric age data for plutons and alteration associated with copper, molybdenum, and gold mineralization in the western Alaska Range northwest of Anchorage. The area is being actively explored by a number of mineral companies. Some of the new ages are much younger than any other age of mineralization previously recognized in the region and potentially open new targets for exploration in this part of the state. This DGGS report and data set presents 40Ar/39Ar radiometric age results (argon-argon dating) for selected igneous and related mineralized rocks encountered in the Styx River area of the western Alaska Range. Crystallization ages on biotite and hornblende from plutonic rocks range from about 60 million to 63 million years old; an alteration age on sericite in plutonic rocks is also around 63 million years old. These data, combined with previously published and other unpublished data, indicate that the large Mount Estelle plutonic complex, host to numerous copper, molybdenum, and gold prospects, has crystallization ages ranging from 63 million to 70 million years old, a much longer timespan than previously thought. The report also reveals that alteration closely associated with porphyry copper-molybdenum-style mineralization at the Copper Joe prospect, 10 miles south of the Mount Estelle Pluton, ranges from 10 million to 11 million years old. The young ages are on samples of sericite collected from a molybdenum-bearing vein and a copper-bearing vein from a mile away. Both samples are from an altered area approximately two miles in diameter outlined by DGGS airborne geophysical data. The 10-million to 11-million-year-old age is much younger than any other age of mineralization previously recognized in the region and potentially opens new targets for exploration of copper-molybdenum deposits in this part of the state. The samples were collected as part of a DGGS geologic mapping project in the Lime Hills C-1 Quadrangle about 110 miles northwest of Anchorage. The project area hosts multiple plutonic and volcanic igneous rocks of overlapping age, character, and distribution targeted by several active exploration projects in the Alaska Range. Radiometric age analyses (using 40Ar/39Ar) were performed by the University of Alaska Fairbanks Geochronology Laboratory. The data and report, DGGS Raw Data File 2014-21, can be downloaded at no charge from the DGGS website at http://dx.doi.org/10.14509/29134.
GOLD – Corvus Gold Inc. Oct. 22 reported a maiden mineral resource estimate for its LMS gold project in Alaska. At a 0.5 grams per ton cut-off, an inferred resource of 8.32 million metric tons averaging 1 g/t (267,000 ounces) gold was calculated for LMS. This resource estimate incorporates new drilling conducted by Corvus’ prior JV partner where the primary target has been a folded stratiform breccia horizon. This additional drill information and review allowed for a reinterpretation of the structural controls on the highest grade veins (713 g/t gold and 139 g/t silver over 1.8 meters in hole LM-06-29) which suggests that previous drilling has left the potential of the project untested. The LMS project is currently a non-core asset for Corvus, and the company has no immediate plans to carry out internally funded exploration on the project. Corvus remains fully focused on its new Nevada high-grade Yellowjacket discovery at its North Bullfrog project. Corvus CEO Jeff Pontius said, “This maiden resource and new high-grade target at our non-core LMS project represents the broad potential of the Corvus portfolio of projects and the proficiency of our exploration and discovery team. Although Corvus will not be initiating a follow-up exploration program in the near-term, the LMS project remains a future potential opportunity.”
COPPER – Copperbank Resources Corp. and Full Metal Minerals Ltd. Oct. 21 reported the completion of an arrangement among Full Metal, Choice Gold Corp. and 0999279 B.C. Ltd. to form Copperbank Resources Corp. The newly formed company’s portfolio includes Enexco International’s former Contact copper project in Nevada and Full Metal Mineral’s former Pyramid copper-gold project in Alaska. Full Metal’s Rob McLeod has been appointed CEO of CopperBank and Bill Willoughby, the former chief operating officer of Enexco, is president of the copper exploration and development company. It is expected that the common shares of Copperbank and warrants issuable in connection with the arrangement will commence trading on the Canadian Securities Exchange within the next seven-10 days. The symbol for Copperbank Shares will be “CBK” and is anticipated that the symbol for the arrangement warrants will be “CBK.WT.” Copperbank will provide a further update once the start of trading date is formally set.
SILVER/GOLD – Hecla Mining Company Oct. 20 reported preliminary production results for the third-quarter ending Sept. 30. Greens Creek’s third-quarter production of 1.9 million ounces of silver exceeded the second-quarter production of 1.7 million ounces as well as the third-quarter 2013 production of 1.8 million ounces. Through the first nine months of 2014 Greens Creek has produced 5.4 million ounces of silver, positioning the Southeast Alaska Mine at the high end of the expected annual production range of 6.5 to 7.0 million ounces of silver. The mill operated at an average of 2,221 tons per day during the third quarter. Hecla’s Lucky Friday Mine in Idaho produced 972,995 ounces of silver during the third quarter, an increase of more than 103 percent over the third quarter of 2013, due to the mine now operating at full production levels. Due to the strong production in the third quarter, Hecla now expects annual silver production at Lucky Friday of between 3 million and 3.2 million ounces in 2014. The fourth-quarter production is expected to be lower than the third quarter due to mine sequencing. The mill operated at an average of 858 tpd for the quarter. Third-quarter gold production of 28,977 ounces at the Casa Berardi Mine in Quebec is comparable to the second quarter production of 28,623 ounces. The mill operated at an average of 2,242 tpd for the quarter. “All three of our mines performed strongly in the third quarter, reporting higher production of silver, gold, lead, and zinc over the prior year, and we expect 2014 silver production to be at the high end of our previous guidance of 9.5 (million) to 10 million ounces,” said Hecla President and CEO Phillips S. Baker, Jr. “During the quarter we continued to advance our capital projects, including #4 Shaft at Lucky Friday, focused our exploration in Mexico and made the final payment of our Superfund settlement, and still ended the quarter with about US$222 million in cash, unchanged from the end of the second quarter.”
