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December 04, 2014 --- Vol. 08, No. 49December 2014

Northwest Territories

GOLD – Nighthawk Gold Corp. Dec. 3 reported results from the final nine holes of its recently completed 2014 drill campaign on its Indin Lake Gold Property in the Northwest Territories. Four holes were drilled at Colomac as part of Nighthawk’s ongoing resource expansion program, resulting in the discovery of a new high-grade gold zone; hole C14-06 intersected 52.50 meters of 7.78 grams per metric ton gold, including 21.00 meters of 16.73 g/t gold north of Zone 2.0. Multiple new wide areas of deeper gold mineralization also were encountered between zones 2.0 and 2.5; hole C14-04 intersected 20.25 meters of 1.79 g/t gold, 23.25 meters of 1.66 g/t gold, and 42.25 meters of 1.28 g/t gold. The remaining five holes were drilled along strike northeast of the Cass gold deposit, and effectively extended the mineralized corridor an additional 700 meters. Nighthawk President and CEO David Wiley commented, “The 52.5-meter intersection grading 7.78 g/t gold from Colomac hole C14-06 is the best drill result Nighthawk has produced since its inception. Through our 2014 drilling program, we have achieved our objectives of infilling and expanding our known areas of mineralization – by up to 700 meters – and finding higher grade material at an attractive proximity to surface. We will be working with the authors of our technical report to incorporate the results of this year’s program into our next resource update.” Nighthawk Chief Geologist Michael Byron, Ph. D., added, “These results validate our thesis that high-grade shoots of gold mineralization, similar to those previously defined at zones 2.0 and 3.5, are prevalent at Colomac. High gold grades over substantial lengths such as those reported in hole C14-06, present new opportunities, and we will look to take advantage of these high-grade areas as we continue to advance our project.” Nighthawk is focused on acquiring and developing gold mineral properties in the Northwest Territories. Its primary land position covers 229,791 acres, or 930 square kilometers, in the Indin Lake Gold Camp and includes an inferred mineral resource estimate of 39.815 million metric tons with an average grade of 1.64 grams per metric ton gold, for 2.101 million ounces gold using a cut-off grade of 0.6 g/t gold.

IOCG/POLYMETALLIC – Denendeh Exploration and Mining Company Ltd. Dec. 2 reported the results of its 2014 exploration program on the 8,114-hectare Camsell River mining property, located southeast of Great Bear Lake in Northwest Territories. The Camsell River property encompasses four former-producing silver mines, including the Silver Bear mine (often called the Terra mine) that operated from 1969 to 1985. During the 2014 program, DEMCo prospectors located occurrences of copper-gold and associated polymetallic minerals over a 10-kilometer-wide swath within what is now recognized as an IOCG- (iron-oxide-copper-gold) type mineralized system. Resampling of historic drill core produced two wide intercepts of copper-gold-zinc-lead silver mineralization in one hole, including 65.53 meters of 0.51 percent copper equivalent. Following on a compilation of historical mining, exploration and diamond drilling data, the 2014 summer program included recovery, re-logging and re-assaying of some of Terra Mines Ltd.’s drill core, as well as geological mapping and prospecting. Prospectors collected over 400 samples of mineralized material over an area 10 kilometers from north to south and nine kilometers from east to west. Assays of individual samples ranged up to maximum values of 16.302 grams per metric ton gold, 21.04 percent copper, 11.78 percent lead, 2.91 percent zinc, 279 g/t silver, 4.49 percent cobalt, and 0.55 percent bismuth, with minor credits for nickel, tungsten, platinum, palladium, molybdenum and antimony. These showings are mostly vein- or fracture-related sulphide occurrences that are not representative of wider zones; they are considered to be indications of an extensive mineralized system, and point to the possibility of larger, undiscovered deposits. The highlight of the drill core recovery program was the discovery of two wide intersections of polymetallic mineralization in diamond drill hole SS-81-001, which was drilled in 1981 by Terra Mines at the Smallwood silver mine, a satellite mining operation at the east end of the property. Geological mapping outlined a hydrothermal alteration system that coincides roughly with the distribution of the copper-gold and associated polymetallic mineral occurrences. Alteration, as the term is used by geologists, refers to changes in the chemical and mineralogical composition of rocks caused by the hydrothermal fluids that also create mineral deposits. The character of an alteration system is directly related to the type of mineral with which it is usually associated. Typically, alteration haloes are much larger than the mineral deposits that they are related to, and so they can be used to outline areas with the highest probability of containing a mineral deposit. The alteration system at Camsell River extends over a diameter of at least 10 kilometers (six miles), and it has the characteristics of alteration associated with IOCG mineralization. IOCG deposits include some of the world’s largest known reserves of copper and gold. In addition to having access to diamond drill core from the Terra Mines operation, DEMCo also inherited the results of airborne magnetic, electromagnetic and gamma-ray spectrometer surveys carried out over the property in 2007 by a previous operator. Fixed-wing magnetic survey data were used to make three-dimensional models of magnetic bodies in the subsurface. This work provided an independent confirmation of the configuration of the magnetite alteration zone, which had been inferred from geological field mapping. It also outlined a number of discrete zones of higher magnetic susceptibility that may have the potential to be spatially associated with undiscovered copper-gold and polymetallic mineral occurrences. The mineralized zones cut by diamond drill hole SS-81-001 are at, or very close to the margin of one such interpreted magnetic body. DEMCo CEO Darrell Beaulieu said, “The work that we did this summer at Camsell River has dramatically enhanced the mineral potential of the project. We started out with a group of four abandoned silver mines, and we now have a brand-new, very exciting exploration play with the potential to host a world-class mineral deposit. The two wide intersections in the Smallwood diamond drill hole have assay values that put them right in the range of grades that are being commercially exploited in large open-pit mines. It shows the kind of results that we might expect when we start our own drill program. That said, it’s a large area that needs to be explored, and there’s lots of work ahead of us yet.” The company is planning a gravity survey at Camsell River, as a next step in outlining potentially more massive iron oxide-rich zones that may be associated with copper-gold and other metals. Coincident magnetic and gravity anomalies are generally considered to be prime drill targets for IOCG mineralization. Additional drill core rehabilitation and resampling, and more mapping and prospecting are also planned, to more accurately characterize the details of the IOCG-style alteration and mineralization.

DIAMONDS – Margaret Lake Diamonds Inc. Dec. 2 said it has earned an undivided 60 percent interest in the Margaret Lake Diamond property, comprised of 19,716.4 hectares (48,720.2 acres) of mineral claims contiguous to the north and west of Kennady Diamonds Inc.’s Kennady North project in Northwest Territories. The claims lie just 78 kilometers north of the East Arm of Great Slave Lake and are bounded to the south by both the Kennady Diamonds and De Beers-Mountain Province Diamonds joint venture ground packages. To earn its 60 percent interest, Margaret Lake Diamonds was required to make a cash payment in lieu of filing assessment work in 2013 (about C$100,000) and incur not less than C$1 million in exploration expenditures by Oct. 13, 2014. The company has exceeded the expenditure requirement, having undertaken ground till sampling and an airborne geophysical survey on the property this past summer. In particular, it completed the airborne survey using the HeliFalcon gravity gradiometer system over the entire property at 75-meter line spacing to obtain high-definition gravity-gradiometry and magnetic gradiometry. Flown at an average 45 meters above terrain, the survey was designed to isolate any high-definition gravity and magnetic anomalies. The company plans to use these data to define potential kimberlite drill targets. The junior may earn an additional 10 percent interest for a total 70 percent undivided interest in the Margaret Lake Property by incurring an additional $1 million in exploration expenditures by Oct. 13, 2015. There are no option payments, share considerations, or royalties payable. The company will continue to be the operator of all exploration programs on the property. Margaret Lake Diamonds President and CEO Paul Brockington said, “Earning an initial 60 percent interest in the Margaret Lake Property is a major milestone for the company. We acquired the right to earn an interest in the property in March 2014, and in the space of seven months have completed an extraordinary amount of exploration on it, despite some challenging circumstances. We expect to be receiving results from the airborne survey and till sampling in the next couple of months, and have already delineated several targets worthy of drilling based on preliminary results. Work completed to date has given us confidence in the kimberlite potential of the property and to continue with the next phase of exploration.” In addition to the Margaret Lake Property, the company staked and owns a 100 percent interest in four additional claims to the north and contiguous to the property totaling 3,483 hectares and also has an option to earn up to a 49 percent interest in Canterra Minerals Corp.’s Marlin Property. The Marlin Property comprises 23 mineral claims covering an area of roughly 260 square kilometers (100.4 square miles) and lies contiguous to the north and west of the Kennady North Diamond project and west of the Margaret Lake Property. On the Marlin Property, a total of 126 till samples were collected by Canterra and contained a 1.0-millimeter-by-1.0-millimeter-by-1.4-millimeter off-white, modified octahedral diamond as well as several anomalous indicator minerals, including pyropes. In addition a 1,500-line-kilometer HeliFALCON gravity gradiometer survey combined with airborne magnetics was flown over the northern portion of the Marlin property on 75-meter-line spacings at an average 45 meters above terrain to isolate any high-definition gravity and magnetic anomalies. A digital terrain model, together with detailed bathymetry, using WorldView2 high-resolution satellite imagery, was also completed and will enhance data interpretation and potential kimberlite target definition.

DIAMONDS – Dominion Diamond Corp. Nov. 26 reported that Rio Tinto plc, the parent company of the operator of the Diavik Diamond Mine (Diavik Diamond Mines (2012) Ltd.), has approved the development of the A-21 pipe at the Diavik Diamond Mine, in which the company holds a 40 percent stake. DDMI has estimated the total capital cost for the development of the A-21 pipe to be about US$350 million at the company’s estimated Canadian/US dollar exchange rate of $1.11 (on a 100 percent basis), with the company's share being US$140 million. The A-21 resource is well understood, and A-21 diamond production is planned for late calendar 2018. The A-21 production will provide an important source of incremental supply for Diavik, ensuring the continuation of existing production levels. The A-21 ore body is located under a lake requiring construction of a dike to isolate the open pit operations. The bulk of the requisite infrastructure for the A-21 pipe is already in place from the previous dike construction and pit operations at the Diavik Diamond Mine, and the necessary operating licenses and agreements are in place for project implementation. The A-21 ramp up is anticipated to commence immediately, with the first equipment and supplies scheduled to be transported in early 2015 to the Diavik mine site on the seasonal winter ice road. Four years of dike construction and pre-stripping (2015-2018) are expected to be followed by approximately five years of open-pit mining. The Diavik Joint Venture has approved the 2015 program of work. Expenditure on the development of the A-21 pipe in 2015 will relate to crushing costs, pipeline construction and initial dike foundation and abutment work in preparation for expected dike construction during the 2016 and 2017 summer seasons. Pre-stripping of the open pit is expected to commence in 2018 following dewatering of the pool within the dike. DDMI has estimated that the A-21 pipe contains (on a 100 percent basis) 3.6 million metric tons of measured resources, at a grade of 2.8 carats per metric ton, and 400,000 metric tons of indicated resources at a grade of 2.6 cpt. These estimates were calculated as of Dec. 31, 2013. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The company intends to publish a detailed summary of the updated reserves-only mine plan for the Diavik Diamond Mine, plus A-21, once these have been approved by DDMI. Dominion expects to receive an updated estimate of the mineral reserves and mineral resources at the Diavik Diamond Mine from DDMI in the first calendar quarter of 2015. Using the prices from the company’s September 2014 rough diamond sale and the current diamond recovery profile of the Diavik processing plant, the company has modeled the approximate rough diamond price per carat for the A-21 pipe to be about US$145 per carat.


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