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.

January 24, 2013 --- Vol. 07, No. 04January 2013

Alaska News Nuggets

POLYMETALLIC – Pure Nickel Inc. Jan. 23 provided results from its 2012 exploration program at the Man nickel-copper-platinum group element project. This was the fifth season that Pure Nickel's joint venture partner, Itochu Corp., has funded exploration. With this work program of US$4.2 million, Itochu has spent approximately US$21 million on exploration at Man and currently holds a 30 percent ownership interest in the project. The joint venture agreement allows Itochu to earn up to a 75 percent interest by incurring US$40 million of exploration expenditures. The 2012 program included soil geochemical surveys (3,010 samples collected), detailed mapping, 48 line-kilometers of induced polarization geophysical surveys and 2,233 meters of core drilling. The program was designed to identify areas of potential nickel-copper-PGE mineralization at surface or at shallow depths. Drilling was used to test soil geochemical and/or IP anomalies for the presence of sulfides in bedrock. Pure Nickel said this work identified several new sulfide occurrences on the Alpha complex, with a number of soil geochemical and IP anomalies still to be tested. Of the eight holes completed, seven targeted soil or IP anomalies, and one hole was drilled to investigate magmatic stratigraphy. Minor amounts of magmatic sulfide mineralization were encountered in most of the drill holes, but assay results from these intervals were generally not significant. In hole PNI-12-063, however, highly anomalous nickel-copper-PGE mineralization was intersected across a significant interval. The hole targeted partially coincident IP and soil geochemical anomalies in the southern part of the Alpha complex, and returned an intersection of 80.95 meters grading 35 parts per billion gold, 106 ppb platinum, 174 ppb palladium, 0.17 percent copper and 0.25 percent nickel. A limited gold prospecting program was also completed to attempt to locate the lode source of the many placer gold occurrences in the area. Results were encouraging, with one sample of glacially transported material assaying 14 grams per metric ton gold and 4.6 percent nickel. The bedrock source of this sample is unknown, but additional gold prospecting will be undertaken in 2013 in an attempt to trace the source.

FINANCE – Coeur d'Alene Mines Corp. Jan. 24 announced its intention to offer, subject to market and other conditions, US$200 million of senior notes due 2021. The coupon on the notes will be 7.875 percent per year from the date of issuance, payable semi-annually in arrears. The notes will mature on Feb. 1, 2021. The notes will be fully and unconditionally guaranteed by certain of the company's subsidiaries. The notes will be sold to qualified institutional buyers in the United States pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933. Coeur intends to use the net proceeds from the offering to fund internal and external growth initiatives and for general corporate purposes, which may include repurchasing 3.25 percent convertible senior notes due 2028. The transaction is expected to close on or about Jan. 29, 2013, subject to the satisfaction of various customary closing conditions.

GRAPHITE – Graphite One Resources Inc. Jan. 21 filed an NI 43-101 technical report for its maiden inferred resource at the Graphite Creek property in Northwest Alaska. The resource for the Graphite Creek property is based on the results from an 18-hole, 4,248-meter drill program conducted in 2012. “Based on the size of the inferred and potential resource, we believe this to be the largest reported flake graphite deposit in the world, and look to take an aggressive approach to advancing the project towards production in the near future,” said Graphite One President Anthony Huston. “We have designed a comprehensive exploration program for 2013 that includes drilling, environmental studies, permitting, metallurgy, engineering, reporting and community relations initiatives; all of which are necessary steps for bringing the deposit into production.” The technical report, prepared by SGS Canada Inc., and APEX Geoscience Ltd., can be viewed at and

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] ---