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.

November 20, 2014 --- Vol. 08, No. 47November 2014

Yukon Territory

ZINC – Overland Resources Nov. 20 said the final analytical results from 362 geochemical soil samples collected recently at the Yukon Base Metal Project have highlighted an area that is highly anomalous in zinc at the Junction project which significantly elevates the prospectively of this previously under-explored area. The Yukon Base Metal Project covers 305 square kilometers (118 square miles) of the Selwyn Basin in eastern Yukon Territory. With the recent renewal of the mining land use permit, Overland mobilized a technical team to undertake first pass geological mapping and soil sampling over several of the regional targets at the Junction and Selous project areas. At Junction, Overland says results indicate areas anomalous in zinc of over 400 parts per million in the northern portion, including highly anomalous assay results up to 3,990 ppm zinc. The company says these results compare favorably with the elevated zinc results that were originally recorded over the Andrew, Darcy and Darin Zinc deposits, which currently host resources that total 12.6 million metric tons at 5.3 percent zinc and 0.9 percent lead. The highest 20 anomalous results from initial systematic soil sampling around these prospects included results ranging between 1,565 ppm to 11,900 ppm zinc. Overland says these results are from broadly spaced samples collected over an area that had previously been subject to virtually no exploration. A follow-up exploration program will be undertaken in 2015, with an aim of delineating additional high grade resources that are amenable to open pit mining. Overland currently has $900,000 cash at hand, low overheads and a market cap of under $3 million. The company is also evaluating new quality project opportunities to add to its portfolio.

FINANCE – Wellgreen Platinum Ltd. Nov. 20 said it has completed a C$9.1 million non-brokered equity financing at about an 11 percent premium to the 10-day volume weighted average trading price of the company’s common shares on the TSX Venture Exchange. Pursuant to the private placement, the company issued 15,118,104 common shares of the company on a “flow-through” basis, at C60 cents per share. The shares issued under this private placement are subject to a four-month hold period, expiring on March 21, in accordance with applicable securities laws and the rules and policies of the TSX Venture Exchange. Wellgreen Platinum paid finder’s fees of about C$244,000 in connection with the private placement. The net proceeds of the private placement will be applied towards continuing exploration and development activities as part of initiating planned pre-feasibility level studies on the company’s Wellgreen PGM-nickel-copper property located in southwestern Yukon Territory. Wellgreen Platinum President and CEO Greg Johnson, said, “We are pleased to be able to strengthen the company’s shareholder base and balance sheet with this financing at a premium to the market. These mining-focused investors recognize the quality and potential of the Wellgreen assets despite the extended difficult market conditions in the resource sector. The proceeds from this financing will allow us to advance to planned pre-feasibility-level studies and environmental work on the Wellgreen project and will place the Company in a solid financial position into 2015.” While the company’s focus this year has been on work to support an updated preliminary economic assessment, activities at Wellgreen have included roughly 3,000 meters of reverse circulation and core drilling along with 11,000 meters of re-logging and new sampling of remaining historic drill holes. The results from this program will be incorporated into the pre-feasibility study programs in 2015. In addition, as part of the PFS work, the company continues to gather baseline environmental monitoring data on flora, fauna, and surface and subsurface water in the project area for use in the environmental assessment process. Field activities at the Wellgreen project are currently in the process of winding down for end of the year. Wellgreen Platinum continues to advance its work toward completing an updated PEA for the Wellgreen project by the end of 2014. Achieved milestones related to this work include an updated mineral resource estimate announced by the company on July 24; additional metallurgical test work, with results announced by the company Sept. 3; an update of the operating and capital costs for the project; and ongoing mine planning and mill process design work.

REGULATORY FILING – Golden Predator Mining Corp. Nov. 20 reported the completion and filing of the preliminary economic assessment National Instrument 43-101 independent technical report for the company’s Brewery Creek gold project in Yukon Territory. The independent technical report was prepared by Tetra Tech EBA, SGS-E&S Engineering Solutions Inc., Resource Modeling Inc. and Gustavson and Associates following the guidelines of the Canadian Securities Administration National Instrument 43-101 and Form 43-101F. The report is titled “Preliminary Economic Assessment for the Brewery Creek Property Yukon Territory, Canada.” The report is filed on SEDAR and can be viewed at www.sedar.com and at www.goldenpredator.com.

FINANCE – Klondike Gold Corp. Nov. 20 said it has closed a previously announced non-brokered private placement financing of 3,125,000 flow-through shares at a price of C20 cents per share for proceeds of C$625,000 and 9,568,082 non-flow through units at a price of C18 cents per unit for aggregate gross proceeds of C$2,347,255. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of C20 cents per common share until Nov. 17, 2017. The securities issued in connection with this Financing will be subject to a statutory hold period of four months and a day, which expires on March 18, 2015. Finder’s fees associated with the financing were paid in cash to Red Plug Capital in the amount of C$27,414.00. Net proceeds raised through the financing will be used, in the case of the FT Shares, to incur “Canadian exploration expenses” in respect of the company’s Yukon properties as defined in the Income Tax Act (Canada) as well as, in the case of the Units, for exploration and development of Canadian mineral properties and for general working capital purposes. “I am very pleased with the response to the financing and appreciate our investors’ interest in the offering which is a positive comment on the quality of our exploration properties” said Peter Tallman, president and CEO of Klondike Gold. The company also reported that pursuant to this transaction, Fiore Financial Corp., a company owned and controlled by Frank Giustra, acquired ownership and control of 1,580,389 units at C18 per unit, representing 4.93 percent of the issued and outstanding common shares of the company. The Radcliffe Foundation, a company controlled by Frank Giustra, acquired control of 887,239 Units at C18 cents per unit, representing 2.77 percent of the issued and outstanding common shares of the company. As a result of this acquisition of securities, Fiore Financial, Frank Giustra personally, and The Radcliffe Foundation hold in aggregate, 5,677,378 common shares of Klondike Gold, representing 17.74 percent of the current issued and outstanding shares of the issuer and would own 8,145,006 common shares, representing 23.63 percent on a partially diluted basis, assuming exercise of the 2,467,628 warrants held by Fiore Finanical and the Radcliffe Foundation. Trisec Securities Inc., a company owned and controlled by Roberto Aquilini, also acquired 814,656 units of Klondike Gold at C18 cents per unit, representing 2.54 percent of the current issued and outstanding common shares of the company. As a result of this acquisition, Trisec Securities Inc. and 451178 BC Ltd., both companies owned and controlled by Aquilini, hold in aggregate, 3,654,156 common shares of the issuer, representing 11.42 percent of the current issued and outstanding shares of Klondike Gold and would own 4,731,312 common shares, representing 14.30 percent on a partially diluted basis, assuming exercise of the 1,077,156 warrants held by Trisec Securities. Giustra, together with his joint actors, and Trisec Securities Inc., together with its joint actors, has acquired the units for investment purposes and, as disclosed in an early warning report, may in the future acquire or dispose of securities of the company, through the market, privately or otherwise, as circumstances or market conditions warrant.

COPPER – Copper North Mining Corp. Nov. 17 said it appoint Joseph Ringwald, P.Eng., as project manager to oversee all work related to the completion of a new feasibility study for the Carmacks project. As a consultant and advisor to the company, Ringwald will work closely with the joint engineering team of JDS Energy and Mining Inc. and Beijing General Research Institute of Mining and Metallurgy to undertake the new feasibility study for the copper-gold-silver project in central Yukon. Copper North President and CEO Harlan Meade said, “I am very pleased to again be working with Mr. Ringwald in managing the re-engineering of the Carmacks Project and completion of a new feasibility study and advancement of the project to construction.” Ringwald is a mining and mineral processing engineer with feasibility study experience with Selwyn Resources, Brett Resources, Geocomp International Consulting, Tournigan Energy, AMEC, Crew Resources, SRK and Placer Dome Technical Services. He will work together with Morris Beattie, Ph. D., P. Eng. who is also a consultant, advisor and a key member of our engineering team responsible for all metallurgical matters. Metallurgical test work is progressing to confirm the optimal leach design and operating parameters for the leaching of copper followed by leaching of gold and silver. Initial test results, for simulation of the vat leach environment, indicate shorter leach times for copper than expected, opening up new opportunities for the leach plan. An additional test work program is in progress to determine the feasibility of an agitated tank leach process as an alternative to vat leaching. Agitated leaching would further shorten copper leach times and also has possible application for gold and silver recovery. The engineering team will meet in Beijing in early December to advance the plan for start of the engineering studies by JDS and BGRIMM. The metallurgical work and development plan is scheduled for completion by year-end and establish the base for the new feasibility study which is targeted for completion in the third quarter of 2015.


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