WEEKLY ONLINE NEWS STORY
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| March 20, 2014 --- Vol. 08, No. 12 | March 2014
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British Columbia
COPPER – Copper Fox Metals Inc. Mar. 19 said Teck Resources Ltd., operator of the Schaft Creek Joint Venture, has recommended a comprehensive series of studies to review all aspects of the Schaft Creek copper-gold-molybdenum-silver project in northwest British Columbia. The objective of the estimated C$2.5-million program is to review all data collected on the Schaft Creek project to the end of 2013 – including metallurgical, pit-slope design, geological modeling and environmental – in order to update and optimize various parameters of the project. The studies will be conducted internally by Teck and outside consultants will be retained, if, and when, necessary. The 2014 program also anticipates a field campaign of mapping and re-logging core to obtain a better structural understanding of the Schaft Creek deposit for pit-slope design and continued environmental monitoring.
FINANCE – Canarc Resource Corp. March 18 reported the closing of the first tranche of a non-brokered private placement. The first tranche of the financing consisted of 10.6 million units priced at C10 cents each for total proceeds of C$1.06 million. Each unit is comprised of one common share and one-half of a whole share purchase warrant. Each full warrant entitles the holder to purchase one additional share at C15 cents for a three-year period. A total of C$66,200 and 661,720 broker warrants as finders’ fees will be paid to arms-length parties for placing a portion of the financing. The shares and units are subject to a four-month-plus-one-day hold period from the closing date of the private placement. This private placement and the subscription of the purchasers are independent and separate of the proposed transaction announced on Feb. 24. The net proceeds of the unit private placement will be used for working capital purposes. The company also reported that its due diligence efforts with respect to complete a business combination whereby Canarc may acquire all of the outstanding common shares of Pan American Goldfields Ltd. are progressing and the Canarc expects to enter into a definitive agreement with Pan American before June 30.
GOLD – Banks Island Gold Ltd. Mar. 14 provided an update on the Bob Zone bulk sample program at the Yellow Giant gold property on Banks Island, British Columbia. The company has completed commissioning of its spiral concentrator at the dense media separation plant. The spiral concentrator allows the concentration of fine material which bypass the DMS circuit at the feed prep screen. Initial assays from the gravity concentrate assayed 86 grams per metric ton gold and 204 g/t silver. Banks Island said it will now be able to realize revenue from the sale of gravity concentrate in addition to its DMS concentrates. The spiral concentrator will also be utilized to recover gold from the existing sand stockpile onsite. The company estimates, based on volumes and assaying, that the sand stockpile contains 1,200 metric tons of material with an average grade of 28 g/t gold and 57 g/t silver. Banks Island President and CEO Benjamin Mossman said, “The addition of the spiral concentrator to the DMS Plant will allow significant increased concentrate production from processing of the Bob Zone mineralization while the grinding and flotation circuits are commissioned. The company is also encouraged by the rising price of gold, especially denominated in Canadian dollars, over the last 3 months. The combination of increased concentrate production and rising gold price will drive revenues to strengthen the treasury and provide a platform for the company's aggressive growth plans.” Banks Island reports that the trailer mounted grinding and flotation modules have been delivered to Prince Rupert and are ready to be shipped to Banks Island. The company is currently working on concrete formwork and site preparations for placement of these units. The company said it has drawn an advance of US$1 million from its US$6 million concentrate loan facility in March and plans to draw an additional US$1 million in the next several weeks to provide working capital while waiting on receipt of provisional payments from concentrate sales. The loan facility is part of an offtake agreement with Metallica Commodities Corp. for the sale of concentrates produced at the Yellow Giant gold property. The company has drawn US$4 million advance payment facility to date. A 200-metric-ton shipment of concentrate was made on Feb. 4 and further shipments are planned throughout March and April.
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