Archive | Junior Exploration Sector

Cobalt 27 announces first-ever streaming deal for battery metals – by Gabriel Friedman (Financial Post – May 23, 2018)

http://business.financialpost.com/

‘It brings immediate free cash flow into the business’ — to the tune of about $30M a year from Ramu’s cobalt and nickel

Toronto-based Cobalt 27 Capital Corp. on Tuesday announced it will pay $145 million for the right to the cobalt and nickel from the Ramu mine in Papua New Guinea, in what marks the first streaming deal of its kind in the battery metals space.

The company, which announced an US$80-million credit facility earlier this month and US$185 million in equity financing in March, said it will not take on any new debt for the deal — a sign of the market interest for companies with exposure to battery metals as automakers prepare to increase electric vehicle manufacturing.

“This completely transforms our company because it brings immediate free cash flow into the business,” said Anthony Milewski, chairman of Cobalt 27. Continue Reading →

Osisko builds critical mass in Quebec – by Trish Saywell (Northern Miner – May 17, 2018)

http://www.northernminer.com/

In the first five months of the year, Osisko Mining (TSX: OSK) released resource estimates for two projects in Quebec while keeping in step with an ambitious drill program that is the largest of its kind in Canada.

Earlier this month, Osisko unveiled its first resource estimate on its 100%-owned Windfall deposit, 115 km east of the town of Lebel-sur-Quevillon. Windfall is one of the highest-grade resource-stage gold projects in Canada.

The company outlined an indicated resources of 2.38 million tonnes grading 7.85 grams gold per tonne for 601,000 ounces of contained gold and inferred resources of 10.61 million tonnes grading 6.7 grams gold for 2.28 million oz. of gold, using a cut-off grade of 3 grams gold per tonne. Continue Reading →

Familial ties drive mining company: Manitou Gold president says it’s about keeping communities thriving – by Karen McKinley (Northern Ontario Business – May 18, 2018)

https://www.northernontariobusiness.com/

For Pat Dubreuil, mining is personal. Especially when it comes to one project near his hometown of Dubreuilville, which his grandfather founded with his four brothers as a sawmill in 1961.

He wears many hats as a local businessman, but on May 15 he spoke as president of Manitou Gold, a junior mining company, giving an update on its Kenwest property, south of Dryden, and its Goudreau area properties and patents, east of Dubreuilville.

The latter project is special for him. They are untouched properties on the edge of significant past finds, which have great potential to rejuvenate the area’s economy. Continue Reading →

Dissident shareholders take control of Zenyatta Ventures – by Norm Tollinsky (Northern Ontario Business – May 18, 2018)

https://www.northernontariobusiness.com/

A group of dissident shareholders of Zenyatta Ventures took control of the graphite junior mining company at a special meeting in Toronto May 11, turfing four of the six directors, including president Aubrey Eveleigh and executive chairman Keith Morrison.

Francis Dubé, Brian Bosse and Eric Wallman were elected to replace them. Everleigh resigned as CEO on April 17 but had remained with the company as interim president and director as Zenyatta began a search for his successor.

The Thunder Bay-based exploration company owns the high-purity Albany graphite project, west of Hearst.“For a group of dissident shareholders to band together and unseat extremely entrenched incumbents is rare to say the least,” commented one shareholder at the meeting. Continue Reading →

‘We’re right at peak gold’: All major deposits have been discovered, declares Goldcorp chairman – by Gabriel Friedman (Financial Post – May 17, 2018)

http://business.financialpost.com/

‘Are we not looking for it? Are we bad at finding it? Or have we found it all? My answer is we found it all’

Ian Telfer, chairman of Goldcorp Inc., is the latest industry magnate to predict the world has reached “peak gold,” saying that from here on out, mine production will continue to decline because all the major deposits have been discovered.

“If I could give one sentence about the gold mining business … it’s that in my life, gold produced from mines has gone up pretty steadily for 40 years,” said Telfer. “Well, either this year it starts to go down, or next year it starts to go down, or it’s already going down.”

“We’re right at peak gold here,” he added. Although gold prices sank two per cent to US$1,289.86 per ounce this week, sliding below the psychologically significant US$1,300 mark for the first time this year, Telfer said that day that he remained “bullish” and predicted gold prices would surpass US$1,500 or US$1,600 per ounce before the end of the year. Continue Reading →

Meteoric landing for Australian cobalt hunter: Junior miner does the groundwork to go drilling in the Cobalt camp – by Staff (Northern Ontario Business – May 9, 2018)

https://www.northernontariobusiness.com/

Meteoric Resources, a western Australian cobalt explorer, is gaining ground in the cobalt country of northeastern Ontario.

The Perth-headquartered outfit has been on a staking binge this spring to enlarge its holdings and fast-track its exploration efforts. In early May, Meteoric grabbed more than 33-square-kilometres of prospective ground, about 40 kilometres northwest of the Town of Cobalt.

Dubbed the Beauchamp Cobalt Project, the company said the property “has all the right rock types combined with great geological structure, and we look forward to fast-tracking exploration at the property.” Continue Reading →

Drills confirming zinc at Pine Point – by Shane Lasley (North of 60 Mining News – May 10, 2018)

https://www.miningnewsnorth.com/

Osisko Metals Inc. May 8 said its winter drilling continues to confirm historical zinc mineralization at its newly acquired Pine Point zinc-lead project in Northwest Territories.

Located near the community of Hay River, the Pine Point project benefits from substantial infrastructure that includes road access, rail head in Hay River and hydro-electric power available on site. A preliminary economic assessment completed in 2015 examined several development scenarios and settled on a mining plan where 10 open-pit deposits are mined in sequence.

The deposits included in the mine plan host 25.8 million metric tons of measured and indicated resources averaging 2.9 percent zinc and 1.1 percent lead, plus 3.7 million metric tons of inferred resources averaging 2.9 percent zinc and 0.8 percent lead. Continue Reading →

Barrick makes small bet on junior with hope for big payoff – by Niall McGee (Globe and Mail – May 10, 2018)

https://www.theglobeandmail.com/

Welcome to the era of the micro deal. In a transaction about as far away as one could imagine from the multibillion-dollar deals of the past great commodity boom, Barrick Gold Corp. is taking a tiny bet on a junior mining company.

On Wednesday, the world’s biggest gold producer announced a 19.9-per-cent investment in Vancouver-based Midas Gold Corp. worth US$38-million. Barrick is acquiring 46.5-million shares at $1.06 a share, a 9-per-cent premium to its Tuesday close.

It’s the latest example of a senior gold company making a so-called “strategic investment” in a junior, with the hope that it will eventually pay off in the form of much needed added production. Continue Reading →

Comparatively high exploration spending belies sagging discovery rate – S&P Global – by Henry Lazenby (MiningWeekly.com – May 3, 2018)

http://www.miningweekly.com/

ANCOUVER (miningweekly.com) – Despite exploration budgets remaining at comparatively high levels in the past decades, geologists have only been able to find a fraction of the gold ounces they discovered in the preceding 18-year period, a new analysis conducted by S&P Global Market Intelligence shows.

The financial information and analytics firm said that despite exploration budgets having declined from the ten-year peak in 2012 to $54.3-billion in the past decade – almost 60% higher when compared with the $32.2-billion spent on gold exploration in the preceding 18 years – only 215.5-million ounces of gold has been defined in 41 discoveries over the most recent ten years, compared with 1.73-billion ounces found in 222 discoveries in the preceding 18 years.

“We have shown in previous research into lead times for gold assets, that it takes about 20 years for an asset to advance from discovery to production. Continue Reading →

Canada stock market shutdown pushes investors to explore options – by John Tilak and Fergal Smith (Reuters Canada – April 30, 2018)

https://ca.reuters.com/

TORONTO (Reuters) – A rare outage at Canada’s major stock exchanges could dent the credibility of operator TMX Group Ltd (X.TO) and encourage investors to explore alternative trading channels, fund managers and traders told Reuters.

Canada’s stock market suffered a partial shutdown on Friday, forcing TMX to halt trading more than an hour early. TMX has since said the exchanges will resume trading on Monday after “internal technical issues” were resolved.

The outage sent investors to TMX competitors and exchanges in New York that listed Canadian companies, traders said. Some of Canada’s biggest companies – including the likes of Suncor Energy (SU.TO) (SU.N), Enbridge Inc (ENB.TO) (ENB.N) and Barrick Gold (ABX.TO) (ABX.N) – are listed both in Toronto and New York. Continue Reading →

NEWS RELEASE: Pasinex Reports Net Income of $5.8 Million for 2017, Strong Operating Results at Pinargozu and Operating Guidance for 2018

https://pasinex.com/

TORONTO, ON – April 30, 2018 – Pasinex Resources Limited (CSE: PSE) (FSE: PNX) (The “Company” or “Pasinex”) today reported net income for 2017 of $5.8 million; a 700 percent increase from 2016 net income of $0.8 million.

Net income for the fourth quarter (Q4) of 2017 was $2.7 million compared to $0.6 million in Q4 2016. The significant improvement in the consolidated results is due to the strong operational and financial performance at Horzum AS (the 50% owned joint venture that holds the Pinargozu mine), which is reflected in Pasinex net income as Equity gain from Horzum AS.

Steve Williams, CEO of Pasinex commented, “We are very pleased with our 2017 financial results. Pinargozu reached its production expectations for the year resulting in a record year. This comes at a time of very strong zinc prices and we see this reflected in the robust 2017 financial results. We also received a $1.2 million dividend payment from Horzum AS in 2017 and we are expecting approximately $6.5 million in dividends paid to us during 2018.” Continue Reading →

Canada’s First Cobalt eager for more after U.S. Cobalt buy – by Barbara Lewis (Reuters U.S. April 25, 2018)

https://www.reuters.com/

LONDON (Reuters) – Canada’s First Cobalt, which has just bought another cobalt developer, is keen for more acquisitions to accelerate bringing on production to meet North American demand, a senior company official said.

Expectations of soaring demand for cobalt because of its use in electric vehicles has inspired a hunt for the mineral across the globe.

Governments and miners are anxious to secure supplies in more stable jurisdictions than Democratic Republic of Congo, which holds around half of the world’s reserves. Continue Reading →

Bright prospects for exploration industry: Opportunity and change in store for prospectors, junior miners in 2018 – by Ian Ross (Northern Ontario Business – April 23, 2018)

https://www.northernontariobusiness.com/

The good vibes of confidence and recovery in the mining industry from this past spring’s Prospectors and Developers Association of Canada (PDAC) convention in Toronto have filtered into northwestern Ontario.

Garry Clark, executive director of the Ontario Prospectors Association (OPA), expects this year to be a busy field season, judging from what he hears and sees walking the floor at the recent Ontario Prospectors Exploration Showcase held in Thunder Bay in early April.

Many companies are ready to do exploration work on their properties if they can raise the financing. Others have money in their treasury and were just waiting for the snow to melt. Clark is expecting to see a mix of new mineral discoveries in 2018 and some stale projects, not worked for years, springing back to life. Continue Reading →

Osisko Sees Perfect Storm Brewing For Base Metals – by Neils Christensen (Kitco News – April 18, 2018)

http://www.kitco.com/

(Kitco News) – One of Canada’s most renowned gold mining companies is wading into the base metals sector, particularly zinc, as prices continue to trade near their highest level in more than ten years.

Osisko Metals is celebrating its first year of operation as it continues to develop two of Canada’s most prominent past producing zinc mining camps.

The Osisko brand is more known for its success in the precious metals sector as it developed its Canadian Malartic project, country’s largest open-pit gold mine now owned by Agnico Eagle and Yamana Gold. Continue Reading →

Cobalt Firm Says Chinese Car Companies Keen to Secure Supplies (Bloomberg News – April 16, 2018)

https://www.bloomberg.com/

Cobalt 27 Capital Corp., owner of the world’s largest private stockpile of cobalt, said it is in talks for potential tie-ups with major Chinese companies seeking to secure supplies of the key metal in batteries powering electric vehicles.

Car and battery makers from China have approached Cobalt 27 to discuss long-term partnerships and supply contracts, Anthony Milewski, chief executive officer of the Canadian firm, said in an interview in Beijing on Monday. Milewski said he has at least 17 such meetings lined up in major Chinese cities over the next three days.

“There’s a lot of interest and it is natural because it is where all this will happen,” Milewski said, declining to identify the companies. “China is going to be the world leader of electric vehicles.” Continue Reading →