Delrey expands portfolio with BC vanadium properties

Delrey Metals (CNSX: DLRY) has acquired two B.C. vanadium projects by issuing 5.5 million shares to BC Vanadium, a private company.

The Star and Porcher vanadium properties cover a combined 67.4 sq. km in northwest B.C., near the small logging community of Oona River on Porcher Island. The properties host iron-titanium-vanadium mineralization in titaniferous magnetite. Historic samples from the properties graded as high as 0.84% vanadium oxide. The company believes the new zone may indicate a cobalt-copper-zinc volcanogenic massive sulphide style of mineralization.

The properties are located near the historic Surf Point gold mine, on the northwest corner of Porcher Island, which operated from 1919 to 1939. Delrey says a strong magnetic anomaly covering up to 35 sq. km likely indicates historic mapping failed to realize the full extent of mineralization on the properties. It plans to begin testing its theory by flying a high resolution airborne magnetic survey on the properties this winter.

Delrey now has three battery metal projects in its portfolio. The company recently finished a phase one exploration program at its Sunset cobalt-copper-zinc property in southwest British Columbia. In September 2018, the company collected 708 soil samples, 68 rock samples and 11 stream sediment samples at Sunset.

As a result of the sampling, the company both extended its cobalt-copper-zinc anomaly about a kilometer to the west and discovered a new zone, called Roughrider, which graded up to 4.3% copper. The company believes the new zone may indicate a cobalt-copper-zinc volcanogenic massive sulphide style of mineralization.

Shares of Delrey Metals are currently trading at 36¢ with a 52-week range of 21¢ to 50¢. The company has an $8.5 million market capitalization.

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Newmont updates gold and copper outlook for 2019 and 2020

Newmont Mining (NYSE: NEM) expects its attributable gold production will reach 5.2 million ounces in 2019 and 4.9 million ounces in 2020, while attributable copper production will be 45,000 tonnes in both years.

All-in sustaining costs for gold will come in at US$935 per oz. in 2019 and US$975 per oz. in 2020, while AISCs for copper will reach $2.45 per lb. next year and $2.55 per lb. in 2020.

Longer term, attributable gold production will range between 4.4 million and 4.9 million ounces through 2023, at AISCs of US$875 and US$975 per oz., while copper production increases to between 45,000 tonnes and 65,000 tonnes through 2023 due largely to higher grades at its Boddington mine in Western Australia.

“We began transforming our business six years ago,” Gary Goldberg, Newmont’s CEO, told analysts and investors on a conference call this morning about the updated guidance, noting the company had monetized non-core assets, advanced profitable growth in four regions, added more than 2 million ounces of gold at AISCs of about US$750 per oz., invested in exploration; and restored its balance sheet.

Goldberg also noted that 70% of Newmont’s production and reserves are in the United States and Australia.

The company estimated total consolidated capital will come to US$1.07 billion in 2019 and US$730 million in 2020

“We built our two newest mines, Merian [South America] and Long Canyon [Nevada], on time and 20% below budget,” he said. “In 2017, we reached commercial production at our Tanami expansion [Australia] and this year we completed three profitable expansions, including Twin Underground and Northwest Exodus, where both projects extended mine life and added lower-cost production in the prolific Carlin district in Nevada; and most recently, Subika underground, which was completed on schedule and within budget, adding higher grade, lower cost gold production at the Ahafo mine in Ghana.”

Looking ahead, he continued, the company is executing three projects that will be completed before the end of 2019—the Ahafo mill expansion in Africa, where first production and commercial production are expected in the second half of 2019; Quecher Main in Peru, where commercial production is also expected in the second half of 2019 and will add oxide production at its Yanacocha mine; and Tanami Power in Australia’s Tanami Desert, Australia; which is expected to lower power costs by about 20% starting in the first quarter of 2019.

Goldberg also noted that the company’s pipeline “is among the best in the gold sector in terms of depth and capital efficiency”, and gives Newmont “the means to maintain steady production while growing margins and reserves.”

In addition, Newmont invests in advancing its longer term projects, with newly added projects including the Cripple Creek and Victor and Saddle Underground projects in North America; Golden Mile in Australia, and the Apensu underground in Africa.

The company estimated total consolidated capital will come to US$1.07 billion in 2019 and US$730 million in 2020. Of that, development capital will be US$390 million in 2019 and US$70 million in 2020.

At presstime in New York, Newmont was trading at US$32.67 per share.

David …read more

Bushveld Minerals fined for breaching AIM’s listing rules

Vanadium miner Bushveld Minerals (LON:BMN) will have to pay £490,000, reduced from a previous fine of £700,000, as the London Stock Exchange (LSE) determined the company breached of two of the AIM’s listing rules.

The violations were the result of the South African miner failing to meet its regulatory obligations in relation to its undertaking to pay an exclusivity fee to the vendors of Vametco.

They go back to April 2016, when Bushveld paid a fee for exclusivity prior to its acquisition of Vametco, without informing its nominated adviser.

Violations were the result of the South African miner failing to meet its regulatory obligations when paying an exclusivity fee to the vendors of Vametco.

A nominated adviser or NOMAD is a firm or company which has been approved by the LSE as an adviser for the Alternative Investment Market (AIM) and whose name has been placed on the register of nominated advisers published by the LSE.

The payment also required an immediate announcement and suspension of the shares, something that did not happen for a further two weeks.

Chief executive Fortune Mojapelo apologized and said today’s settlement will allow Bushveld to move forward.

“The company has expressed regret in relation to the breaches arising from these matters and reiterates that it takes its AIM Rules obligations seriously and has put in place measures to ensure that the events giving rise to these breaches are not repeated in the future,” Mojapelo said.

He noted the company had grown from a junior explorer with a market capitalisation of under £20 million to a primary vanadium producer with a market capitalisation in more than £490 million, as per today.

Vanadium has been one of the best-performing commodities this year, climbing 166% to around $128 per kg, due mainly to a broad-sweeping environmental crackdown in China that has curbed some production.

As a result, miners of the metal used to harden steel  are some of the best-performing stocks this year, with shares in Bushveld itself up 410% and its larger rival Largo Resources (TSX: LGO) up by 165%. Bushveld reported profits after tax of £21.1m in the first half, up from £1.1m a year earlier.

Vanadium, however, is increasingly being used in the making of so-called flow batteries, which are long-lasting and durable, allowing utilities to constantly use them for large amounts of energy.  These properties have positioned them as an alternative to lithium-ion batteries produced by companies such as Tesla for the storage of intermittent renewable sources of energy.

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Aura Resources optimistic about Arizona gold project

Before the end of the year, Aura Resources (TSXV: AUU) decided to share its plans for the Gold Chain project, which the Ontario miner acquired last July.

In a press release, the company said that as soon as 2019 kicks off, they want to start mapping and sampling the area using geophysics, geochemistry, alteration studies and advanced deposit modeling. The idea is to obtain information that will be later integrated with historical drill data.

While this campaign is ongoing, management will also start the permitting process for drilling in the hope that it is possible to turn on the drills in the Spring.

The Gold Chain project is located in the San Francisco district, Mohave County, western Arizona. It is about 7 kilometres northeast of Bullhead City and about 120 kilometres southeast of Las Vegas, Nevada.

Aura explained that the property consisted of 86 unpatented claims containing numerous exposures comprised of epithermal-style gold mineralization, which are within an area of about 10 square kilometres.

Historical records show that limited mining occurred prior to 1940. Later on, companies such as Fisher-Watt, Anaconda, Western States, Ivy Minerals and American Copper and Nickel Corp explored the area during the 1980s. According to the archives, most of the previous exploration employed a ‘detachment’ structural model owing to a close spatial relation between gold mineralization and a fault breccia developed at the Tertiary/Pre-Cambrian contact at one of the historical mines.

“The geologic work conducted in the 1980s identified features consistent with a ‘detachment-type’ gold deposit similar to other deposits which were successfully explored in the eastern Basin and Range province during that time. Although the historic model may remain applicable, drill hole data suggests a steeper structural component and possibly representing the upper levels of epithermal veins spatially related to numerous rhyolite dikes and plugs in both the footwall and hanging wall of the detachment structure. I suspect that drilling in the 1990s did not sufficiently consider a steeper mineral conduit and many of the holes were terminated prematurely or entirely missed the gold zone. The existing resource, although not NI 43-101 compliant, may be readily expanded by testing the margins at slightly greater depths and different angles,” Aura’s President & CEO, Robert Johansing, said in the media statement.

Johansing reiterated that a large amount of technical data has been compiled and is currently being evaluated prior to the upcoming field program.

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Osisko Metals releases Pine Point inferred pit resource

NORTHWEST TERRITORIES – Osisko Metals, headquartered in Montreal, has updated the inferred pit resource for the Pine Point zinc-lead deposit near Hay River. The estimate was prepared by BBA Inc.

The Pine Point pit constrained, inferred resource is 38.4 million tonnes grading 4.58% zinc and 1.85% lead (6.58% zinc equivalent). Contained metals total 3.9 billion lb. of zinc and 1.6 billion lb. of lead. The East Mill, Central and North zones contain the bulk of the metals, hosting 2.3 billion lb. of zinc and 900 million lb. of lead. The estimate incorporates 42 new pits and expansions of two historical pits.

Osisko divides the in pit resource at Pine Point into five geographic zones or deposits – West, North, Central, East Mill and N204. (Image: Osisko Metals)

Next year Osisko plans to test the brownfield mineral potential along the entire 65-km Pine Point trend. A new resource estimate is planned for the second half of the year with the aim of upgrading a significant portion of current resources to the indicated category.

Osisko Metals corporate presentation includes details of the Pine Point project. See it at www.OsiskoMetals.com.

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International Lithium estimates 25-year mine life at Mariana JV with new study

International Lithium (TSXV: ILC; US-OTC: ILHMF) could produce 10,000 tonnes lithium carbonate equivalent per year over a 25 year mine life at its Mariana lithium brine project, according to a recent preliminary economic assessment. It could also produce 84,000 tonnes per year sulphate of potash.

The project, located in Salta, Argentina, has an estimated US$192 million after tax net present value at a 10% discount rate and a 20% after tax internal rate of return.  It would cost an initial US$243 million and an additional US$46.6 million in annual operating costs. It could generate US$143 million in annual revenue.

The project is a joint venture between Ganfeng Lithium (SHE: 002460) and International Lithium. Ganfeng owns 82.75% of the project, although International Lithium can increase its 17.24% ownership by 10% through a back-in right.

The Mariana project contains 765 billion litres grading 306 milligrams per litre lithium and 9,457 milligrams per litre potassium for 747,000 tonnes lithium carbonate equivalent. International Lithium estimates that brine within the project area covers 135 sq. km and extends from 0.5 metres below surface to at least 329 metres below surface.

The company is now primarily focused on Mariana as well as its 30 sq. km Raleigh Lake lithium project in Ontario. It has two other lithium projects in Ontario called Mavis Lake and Forgan Lake, as well as the Avalonia lithium joint venture in Ireland with 55% owner Gangeng.

Shares of International Lithium are currently trading at 5¢ with a 52-week range of 4¢ to 22¢. The company has a $5 million market capitalization.

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Losing licence to operate new and biggest threat to miners — EY

Losing licence to operate new and biggest threat to miners— EY

Mining companies across the globe now consider the risk of losing their licence to operate as the biggest risk to their businesses in the next two years, a new study shows.

According to the 11th annual EY survey of 250 executives, the topic was listed sixth in the list of the ten major risks facing mining and metals firm in 2019-2020. Other challenges listed by the participants were rising nationalism, changing community perceptions of mining operations and the impact of automation on the workforce.

More than half (54%) of executives questioned name licence to operate (LTO) as the top of the risk, showing an important shift in the industry from profit to social responsibility for first time in the 11-year history of the survey.

With the sector seeking to redefine its image as a sustainable and responsible source of the world’s minerals, the report cites rising societal expectations, the impact of advancing technology on stakeholders and a need for greater collaboration with all stakeholder groups as drivers for escalating risk.

Source: EY Top 10 business risks facing mining and metals in 2019-2020 report.

“Licence to operate has evolved beyond the narrow focus of societal and environmental issues. There are now increasing expectations of shared value outcomes from mining projects,” EY global mining and metal advisory leader Paul Mitchell said.

Recent examples of this are Indian conglomerate Tahoe Resources, Adani Enterprises and Australian rare earth miner Lynas.

In September, Guatemala’s highest court confirmed the suspension of Tahoe Resources’ mining licence for its Escobal silver mine and ordered the Ministry of Energy and Mines (MEM) to carry out an immediate consultation of the local indigenous population.

A month later, Adani had to take an 896.4 million rupees ($13.3 million) write-down on its Carmichael coal mine in Australia’s Queensland state due to delays and legal challenges.

And this week, Malaysia set a series of conditions to Lynas, including the needed to remove radioactive waste collected as a result of its activities over the past six years, if it wants its licence renewed.

Digital threat

Last year’s top risk, “Digital effectiveness,” fell one position to second place in the 2019-2020 ranking. The implementation of innovative technology remains a key challenge to the sector. And while miners are making significant strides in applying digital solutions to single issues, the findings indicate that they are failing to do so across the whole value chain.

Mining and metals companies are currently not able to compete with other sectors for tech-savvy talent.

A majority of respondents (72%) said they were investing 5% or less of their budgets on digital. Meanwhile, a recent EY poll of more than 600 mining and metals executives, found that 37% of management have little or no knowledge of the digital landscape.

Disruption is a new entrant to the report ranking, taking the eighth position. With automation already disrupting workforces, and 31% of respondents stating that technology companies have the potential to play a more dominate role in the sector, disruption is pervasive throughout …read more

Government rejects Sierra Metals’ tailings EIA for Yauricocha expansion

PERU – SENACE, the Peruvian National Environmental Certification Service, has rejected Toronto-based Sierra Metals’ environmental impact assessment for the expansion of the tailings management facility at the Yauricocha polymetallic mine in the Yauyos province.

Sierra Metals has 15 business days to provide a re-evaluation to the authorities to initiate a review process. This process will delay the start of the expansion project because the company cannot proceed with the application for a construction permit for the dam extension without approval of the EIA.

The delay will also extend the final submission of the ITS document that has to be approved before the company can increase mine output by 20% to 3,600 t/d.

Igor Gonzales, president and CEO of Sierra Metals commented, “While we are disappointed, we do not believe this decision was made with all the facts.  Key members of the management team are going to meet with authorities to provide and demonstrate full compliance with the requirements. The expansion plans in Mexico to 3,600 t/d at Bolivar and to 1,200 t/d at Cusi are not affected by this decision and they are still on track, and on budget to be completed in Q1 2019.”

The most recent corporate presentation is available at www.SierraMetals.com.

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Vancouver miner allowed to explore gold property in Manitoba – with conditions

Alto Ventures (TSXV: ATV) announced today that it has received a work permit to carry out exploration programs consisting of line cutting, ground geophysics and 3,000 metres of diamond drilling on its Oxford Lake project in Manitoba, central Canada.

The work permit, however, was issued with certain conditions including a requirement that a heritage resource impact assessment is completed before work begins.

Given these provisions and the fact that the beginning of the winter season would have been the perfect time to carry out the work, Alto management team said it doesn’t plan to start drilling right away.

“A decision as to whether to proceed with a drill program will be made prior to the winter of 2020,” the company’s President, Mike Koziol, said in a media statement.

The Oxford Lake gold property is located approximately 150 kilometres southeast of the town of Thompson. The property consists of 17 contiguous unpatented mining claims which together cover approximately 2,870 hectares and two Mineral Exploration Licenses, covering approximately 23,600 hectares.

The property includes the Banded Iron Formation hosted Rusty Gold Deposit, with historical resources of 800,000 tonnes averaging 6 g/t gold (approximately 154,000 contained ounces of gold) as well as several other gold occurrences. There is also the Blue Jay gold zone, which lies on trend and 2 kilometres east of the Rusty Deposit and it too is associated with BIF.

Drilling by Alto in 2012 on the Blue Jay Zone intersected two zones of high-grade gold mineralization in hole RUS12-03; Zone One – 2.7 m averaging 6.7 g/t Au including 22.5 g/t Au over 0.5 m and Zone Two – 6.8 m averaging 5.7 g/t Au including 11.7 g/t Au over 1.6 m and 16.5 g/t Au over 1.0 m.

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Atlantic offers resource extension drill results for three projects

NOVA SCOTIA – Vancouver-based Atlantic Gold Corp. has updated the results for its most recent resource extension drilling at its three gold projects near Halifax.

At the Touquoy gold deposit, intersects were of good lengths and there were some very high grades for an open pit project. Assays included 6.25 g/t gold over 6 metres; 5.19 g/t over 5 metres; 1.65 g/t over 16 metres; 1.64 g/t over 9 metres; and 1.57 g/t over 15 metres. In these holes, mineralization was encountered less than 50 metres below surface.

Drilling at the Fifteen Mine Stream gold deposit lacked the higher grades of Touquoy, but the lengths of the intersections were notable. Assays included 1.59 g/t gold over 15 metres; 2.91 g/t over 9 metres; 0.95 g/t over 22 metres; 1.41 g/t over 26 metres; and 1.06 g/t over 28 metres. Drilling cut the gold mineralization at depths between 100 and 220 metres below surface.

There was one genuine bonanza grade at the Cochrane Hill gold deposit – 30.2 g/t gold over 1 metre. Other highlights include 1.65 g/t over 21 metres; 10.38 g/t over 4 metres; 2.39 g/t over 8 metres; and 7.96 g/t over 6 metres.

Atlantic Gold has put the detailed results of this drill program in the news release dated Dec. 5, 2018.

This story first appeared on Canadian Mining Journal

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Victoria Gold boosts Eagle’s ounces and grade in Yukon

Victoria Gold Corp. (TSXV: VIT) has increased the tonnage, gold grade and ounces in the measured and indicated category at its Eagle deposit in the Yukon, where the Toronto-based company expects to start pouring gold in the second half of 2019.

Once in production, the open-pit deposit will produce about 200,000 ounces of gold a year for more than a decade, according to a 2016 feasibility study, and will be the largest gold mine in the Yukon’s history.

The resource update boosts Eagle’s ounces of gold in the measured and indicated resource by 12.4% and the gold grade by 2.4%. The inferred resource measures 7.3 million tonnes grading 0.89 gram gold and 1.7 grams silver for 210,000 ounces of gold and 402,000 ounces of silver.

The updated resource incorporated 58 new diamond drill holes completed since the feasibility study, and has added 450,000 ounces of gold to the project, the company says.

Eagle now contains 198.72 million measured and indicated tonnes grading 0.64 gram gold per tonne for 4.08 million ounces of gold. Inferred resources add 12.78 million tonnes averaging 0.49 gram gold for 204,631 ounces of contained gold.

The latest resource for Eagle doesn’t include the Olive-Shamrock deposit, but the company intends to update that resource once all of the 2018 drill results are in hand.

Based on the 2016 resource, Olive-Shamrock contains 9.5 million measured and indicated tonnes grading 1.08 grams gold and 2.11 grams silver per tonne for 329,000 ounces of contained gold and 645,000 ounces of contained silver. The inferred resource measures 7.3 million tonnes grading 0.89 gram gold and 1.7 grams silver for 210,000 ounces of gold and 402,000 ounces of silver.

The Eagle project, where construction is 60% complete, is part of Victoria Gold’s 100%-owned Dublin Gulch gold property, about 375 km north of Whitehorse and about 85 km from the town of Mayo.

It is accessible by road year-round and commercial grid power is available about 45 km from the site. An airstrip suitable for commercial planes lies 80 km to the south.

A 250-person all-season camp is on site.

At presstime Victoria Gold was trading at $0.37 per share within a 52-week trading range of $0.30 and $0.47.

This story first appeared on The Northern Miner

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Troilus Gold builds strategic land position in Quebec

Troilus Gold Corp. (TSX: TLG; US-OTC: CHXMF) has tripled its land position with the acquisition of 11,300 hectares to the northeast of its Troilus mine project in Quebec.

Troilus is advancing its Troilus gold project immediately to the south, and has drilled more than 36,000 metres at the project this year.

Last month the company updated the resource to 121.7 million measured and indicated tonnes grading 1.00 gram gold-equivalent per tonne for 3.92 million ounces of contained gold. Inferred resources add 36.1 million tonnes grading 1.01 grams gold-equivalent for 1.17 million ounces of inferred.

Troilus acquired the new land it is calling Troilus North from Emgold Mining Corp. for 3.75 million of its common shares and $250,000 in cash.

In October Troilus kicked off a preliminary surface exploration program focused on applying its structural and geological model regionally to the Troilus belt and collected 172 samples from 157 outcrops. With Troilus proving to have an economic project in Quebec and showing resource growth potential, we believe that the stock should trade more in line with peers.”

The company says uncovering bedrock below mossy overburden, prospecting and mapping have identified gold-bearing mineralization over nearly two kilometres, leading directly into the Troilus North property.

On Dec. 4 the company reported one of the rock grab samples returned an assay of 110 grams gold. The sample was taken about 1 km northeast of the project’s J4 open pit, extending the mineralized zone 1.8 km towards the Troilus North property. The new zone of mineralization extends from the edge of the J Zone to the northeast, and J4 North extends onto the Troilus North property.

Another sample directly adjacent to Troilus North and 1.8 km northeast of the J Zone returned 4.33 grams gold, 1% copper and 49.5 grams silver. A third taken from the northeast limit of the J4 pit returned 1.4 grams gold, 0.6% copper and 10.3 grams silver.

“The first pass work northeast of the J Zone has defined a clear continuation of mineralization across the northern strike of the Troilus property and onto the Troilus North project,” Justin Reid, the company’s CEO stated in a press release. “No exploration of any significance has been conducted on this property in 30 years.”

Between 1997 and 2010, the Troilus mine northeast of Val-d’Or produced 2 million ounces of gold and nearly 70,000 tonnes of copper under the ownership of Inmet Mining Corporation.

The project falls within the area outlined by Plan Nord, a project unveiled by the provincial government in May 2011. Plan Nord is a 25-year, $80 billion development project focused on the region of Quebec that is north of the 49th parallel.

Troilus Gold has about $20 million in cash and no debt.

At presstime in Toronto, Troilus was trading at $0.60 per share within a 52-week trading range of $0.40 (Nov. 12, 2018) and $2.25 (January 22, 2018).

John Sclodnick of National Bank of Canada Financial Markets has a target price of $3.00 per share.

“The current trading level presents a very compelling entry point,” the analyst wrote in a research note on …read more