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Junior Exploration Sector

Mining exploration incentives hinted at by Northern Development minister (CBC News Sudbury – December 2, 2015)

http://www.cbc.ca/news/canada/sudbury/

Mines minister Michael Gravelle promises details by the end of the year

Ontario’s minister of Northern Development and Mines is hinting at exploration incentives to be unveiled in the next few weeks.

Michael Gravelle made the comment while responding to a mining report from the Ontario Chamber of Commerce that called on the government to do more to encourage mining development in the province.

“I can say, I think, without getting myself in too much trouble, that our strategy will certainly be speaking to a number of the issues related to the need to drive exploration in the province of Ontario.”

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Oban Mining Corporation: The New Osisko Bigger and Better?


Film Produced by Ivor Barr, Director and Executive Producer of IDNR-TV Natural Resources Television

http://www.obanmining.com/

Oban Mining CEO & Director John F. Burzynski was one of the three partners who successfully developed the Osisko Mine in Quebec’s Malartic-Cadillac region, part of the lengendary Abitibi-Greenstone belt which is shared between Northeastern Ontario and Northwestern Quebec. It is considered on of the top gold discoveries of the past decade.

The other two partners in the Osisko Mine are Sean Roosen and Robert Wares – both of whom are on Oban Mining’s Board of Directors. The three are well known in Canada’s mining sector, winning the prestigious 2007 PDAC Bill Dennis Prospector of the Year Award:

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How Canadian chauvinism led to the decline of the TMX – by Terence Corcoran (National Post – (November 27, 2015)

The National Post is Canada’s second largest national paper.

It was the fullest expression of Canadian corporate nationalism. A convergence of the mightiest financial poobahs in the country: bank executives, public pension managers, regulators, politicians — all out to protect the vital organs of Canadian capitalism, the nation’s stock exchanges, from the foul clutches of a foreign company.

“We must ensure,” said Jim Prentice, then vice-chair of Canadian Imperial Bank of Commerce, “that the so-called ‘mind and management’ of Canadian finance do not migrate to London, or for that matter to New York or Hong Kong.”

That was in March 2011. More than four years have passed since Prentice, along with TD Bank CEO Ed Clark and others, joined forces to thwart a proposed merger of the TMX with the London Stock Exchange.

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NEWS RELEASE: Harte Gold – Sugar Zone Deposit Bulk Sample Update

Harte Gold from Harte Gold on Vimeo.

http://www.hartegold.com/

Toronto – November 10, 2015 – HARTE GOLD CORP. (“Harte Gold”) (TSX: HRT / Frankfurt (FSE: H4O) announced today that the first blast to cut the Portal was been completed on October 30, 2015 and underground ramp development is currently underway. Harte Gold also announced that Roger J. Emdin, P.Eng., has joined the Harte Gold team as Vice President, Projects.

Bulk Sample Project

With the commencement of underground ramp development and site development to support operations through winter 2016, near completion, Technica Mining Inc. (“Technica”) has transitioned to two-shift 24-7 operations. Click here for site pictures and video from the recent site visit.

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NEWS RELEASE: Underground Activities Temporarily Suspended at the Phoenix Gold Project; Rubicon to Enhance Its Geological Model and Develop an Implementation Plan

Rubicon Minerals First Gold Pour: June 2015 from Rubicon Minerals on Vimeo.

http://www.rubiconminerals.com/

TORONTO, ONTARIO–(Marketwired – Nov. 3, 2015) – Rubicon Minerals Corporation (TSX:RMX)(NYSE MKT:RBY) (“Rubicon” or the “Company”) today announced it is moving to suspend underground activities at the Phoenix Gold Project (the “Project”) while it enhances its geological model of the F2 Gold Deposit and develops a project implementation plan.

“We believe in the potential of the Phoenix Gold Project,” said Michael Winship, interim President and Chief Executive Officer of Rubicon. “We have high-grade gold mineralization with extensive infrastructure, in one of the top producing gold camps in the world. Similar to other high-grade, narrow-vein, underground gold deposits, the geology can be quite challenging and requires additional analysis to be fully understood. During the trial stoping period, we have discovered that the F2 Gold Deposit is much more geologically complex compared to our understanding of it from historical drilling.”

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Rubicon Minerals shares plunge on Phoenix gold project suspension – by Peter Koven (National Post – November 4, 2015)

The National Post is Canada’s second largest national paper.

The meltdown at Rubicon Minerals Corp. highlights the risk of building a gold mine without getting to know the deposit as well as possible.

The Toronto-based miner’s shares plunged as much as 68 per cent on Tuesday after it halted underground development of the Phoenix gold project. Rubicon said it needs to do further work to understand the deposit in order to mine it most effectively.

“We believe there is considerable room for improvement in the development of the Phoenix gold project,” interim chief executive Michael Winship said on a conference call. He added that it is a complex, narrow-vein deposit that is more difficult to mine than surface drilling suggested. The company is now studying a mix of possible mining methods.

The stock closed down 55 per cent at 26 cents Tuesday. The problem, experts said, is that Rubicon may have identified these problems much sooner if it hadn’t moved so quickly.

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[Wallbridge Mining] Sudbury junior joint ventures with Lonmin on Sudbury PGM project – by Ella Myers (Northern Ontario Business – November 2, 2015)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Sudbury’s Wallbridge Mining Company started the next phase of exploration on its Parkin Properties in October, with funding from Lonmin. Wallbridge and Lonmin announced their agreement for the project in mid-September. Lonmin will be funding the project up to $11 million, with the potential to earn up to 50 per cent interest. This was an amendment to their existing North Range Joint Venture agreement (NRJV).

Lonmin is currently Wallbridge’s largest shareholder. The start date of Oct. 1 coincides with the beginning of Lonmin’s fiscal year.

Wallbridge initially worked with Impala Platinum Holdings Limited on the Parkin Properties. Josh Bailey, vice-president of exploration, said that in December, Wallbridge opted to purchase Implats’ 49.6 per cent interest in the joint venture by making cash payments over the next five years.

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Struggling junior miners hope Liberals extend exploration tax credit – by Peter Koven (National Post -November 2, 2015)

The National Post is Canada’s second largest national paper.

Canada’s junior mining sector is waiting with bated breath to see if Justin Trudeau’s incoming Liberal government will maintain a tax credit that has helped companies raise billions for exploration.

Miners argue that the 15-per-cent Mineral Exploration Tax Credit (METC) is an invaluable tool that encourages companies to work in Canada and helps keep the sector active during commodity downturns, including the current one. But there are detractors in the academic community who say it is just another inefficient benefit that favours one industry over another.

During the federal election campaign, the Liberals were the one major party that did not form a strong position on the METC, which is set to expire in March. The Conservatives said they would extend the credit for three years, and increase it to 25 per cent for remote projects, like Northern Ontario’s “Ring of Fire.” The NDP mused about making the METC permanent.

Rod Thomas, president of the Prospectors & Developers Association of Canada (PDAC), said he is optimistic the Liberals will continue with it. “I think they recognize it is vital to the industry,” he said in an interview.

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As downturn bites, Australia’s miners could turn to crowdfunding – by James Regan (Reuters U.S. – November 2, 2015)

http://www.reuters.com/

SYDNEY – Nov 2 A pair of former miners are hoping to launch a crowdfunding website in Australia for small mining companies struggling to raise capital via traditional outlets as lenders turn their back on the sector.

Crowdfunding in Australia to raise equity is prohibited under the nation’s Corporations Act. The founders of Mineral Intelligence Pty, however, are counting on this to change by the end of the year under pro-business initiatives being considered by lawmakers.

U.S. securities regulators approved new crowdfunding rules on Friday, allowing start-up companies to raise money for the first time from mom-and-pop investors over the internet.

Over the past three years, tens of thousands of jobs have gone in Australian mining, once the nation’s economic engine, while some executives have taken pay cuts or forsaken bonuses to support the bottom line in the absence of fresh capital.

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The Canadian resource sector’s messy duty to consult – by Dwight Newman (National Post – October 30, 2015)

The National Post is Canada’s second largest national paper.

Dwight Newman is professor of law and Canada research chair in indigenous rights, University of Saskatchewan and visiting fellow, James Madison Program, Princeton University.

This week, closing arguments were heard in a lawsuit that highlights the Ontario provincial government’s slowness in developing clear approaches to the duty to consult Aboriginal communities and in offering any clarity to those attempting to operate in the Canadian resource sector.

The decision to be rendered has widespread implications. The case has parallels to the situation of other resource companies, and it highlights the significant dangers in governments trying to muddle through the interaction between Indigenous rights and resource development without making clear decisions and enacting clear legal frameworks. Future prosperity for Aboriginal and non-Aboriginal communities alike will be affected by what happens with these sorts of lawsuits.

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He shorted Bre-X. Now fund manager is going long NexGen – by Tommy Humphreys (CEO.ca – October 28, 2015)

http://ceo.ca/

Disclosure note: Author is long NXE and biased. NXE was a CEO.CA sponsor in 2014 but is not anymore. Author will trade the stock without further notice. This is provided for information purposes only and is not investment or professional advice of any kind. Always do your own due diligence and speak to a licensed investment advisor prior to making any investment decision. Junior mining stocks such as NexGen Energy are incredibly risky and can lose their entire value. Read NexGen’s profile on www.SEDAR.com for important risk disclosures. You are responsible for your own trades.

The Toronto office of Warren Irwin, hedge fund manager and CEO of Rosseau Asset Management, is decked out with memorabilia from Bre-X Minerals Ltd., the largest and most famous gold mining fraud in history.

Irwin made a fortune as a young money manager trading Bre-X stock. He had heard about the Indonesia-focused exploration company in 1995, and had some experience in the country and with gold miners.

Irwin encouraged Deutsche Bank, his employer at the time, to take a position in Bre-X at roughly $13 per share. The bank declined, so Irwin acquired a substantial position for his personal account at approximately $18 a share.

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Gloom hangs over [Quebec] mining convention – by Robert Gibbens (Montreal Gazette – October 26, 2015)

http://montrealgazette.com/

Miners at the Quebec Mineral Exploration Association’s Xplor event in Montreal this week not only are battling the lowest metal prices in 11 years, cutting costs and scratching for capital, they’re coping with a more complicated permit process.

“It’s taking three years or more to complete federal and Quebec clearances, including environmental, sustainability, social requirements and benefits pacts with the native peoples,” said Guy Bourassa, chief executive of Nemaska Lithium Inc.

“It’s a huge and costly challenge for mine finders and developers since you don’t get financing until the permitting process is fully completed,” he said from Quebec City.

Nemaska’s $500-million Whabouchi hardrock lithium project in the James Bay area, 300 kilometres north of Chibougamau, has won full authorization.The ore will go by truck and rail to a new processing plant at Shawinigan and the resulting top-grade lithium carbonate will head for new-generation battery-makers.

“We’ve been lucky with rising lithium prices, contrary to gold, base metals, rare earths, iron ore and most other commodities, and now I’m negotiating the long-term financing needed for Whabouchi’s 2018 start-up,” he added.

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NEWS RELEASE: Canada’s Junior Miners must embrace unconventional strategies to survive continued economic challenges – PwC report

Bleak numbers lead miners on innovative paths to disrupt the downturn

TORONTO, Oct. 6, 2015 /CNW/ – The drying up of equity and debt markets coupled with new lows in cash reserves have pushed Canada’s junior mining industry on a further downward financial trend, according to PwC’s annual report on the TSX Venture’s top 100 junior mining companies. But the industry is looking to innovate and collaborate in an effort to move forward.

According to the 9th annual Junior mine report, Time for Change, the top 100 juniors raised $514 million in equity financing in 2015, down 25% from last year, while debt financing fell 27% to $278 million over the same period. Despite attempts to reduce spending, cash reserves are dwindling to new lows as the top 100’s on-hand cash dropped on average from $10 million to $7 million.

These numbers are paired with news that overall revenue is down 28% from 2014, a drop of nearly $195 million, balanced slightly by an 18% reduction in overall net losses. Market capitalization dropped significantly from $7.9 billion to $4.8 billion as of June, 2015.

“The challenges in the junior mining sector persist and the industry is really at a crossroads,” said Liam Fitzgerald, PwC’s Canadian Mining Leader.

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Canadian firm fights gold mine ban by leftist Greek government – by Angeliki Koutantou (Reuters Canada – October 2, 2015)

http://ca.reuters.com/

ATHENS (Reuters) – A Canadian company appealed to Greece’s top court on Friday to overturn a ban on its plans to develop a gold mine in a forested area of northern Greece, in a case widely seen as a test of the leftist government’s approach to foreign investment.

Vancouver-based Eldorado’s venture to extract gold and other ores on the verdant Halkidiki peninsula is seen as one of the top investments in a country racked by a debt crisis since the end of 2009. The company has put in more than $600 million since 2012 and plans to invest another $1 billion in its quest for gold, copper and zinc at two other sites.

But a day before resigning to call a general election, Prime Minister Alexis Tsipras’ government revoked Eldorado’s permit for the Halkidiki mine in mid-August, citing environmental grounds, in a move that showed Greece remains a risky bet for investors.

Eldorado then suspended all its activities at the mine and made most of its 1,300 workers temporarily redundant.

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NEWS RELEASE: Horizonte consolidates Araguaia nickel project through acquisition of Glencore project

/PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL./

LONDON, Sept. 28, 2015 /CNW/ – Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) (‘Horizonte’, ‘HZM’ or ‘the Company’) the nickel development company focused in Brazil, is pleased to announce that it has reached agreement to indirectly acquire through wholly owned subsidiaries in Brazil the advanced high-grade Glencore Araguaia nickel project (‘GAP’) in north central Brazil (the ‘Proposed Transaction’). GAP combined with Horizonte’s 100% owned high-grade Araguaia nickel project (‘Araguaia’ or ‘Araguaia Project’) creates one of the world’s largest nickel saprolite projects in terms of size and grade, in a premier mining jurisdiction that has a defined path to feasibility.

Highlights

  • The combination of GAP and Horizonte’s Araguaia Project will create one of the largest saprolite nickel projects in the world (the “Enlarged Project”).
  • Additional resources with potential to provide ore grading 2% nickel for the first 10 years of mine life.
  • Higher nickel grades are expected to improve project economics delivering a shorter capital repayment period and a lower break even nickel price.
  • Upfront consideration on closing of US$2M to be satisfied through issue of HZM shares.
  • Total acquisition cost US$8M.
  • Placing of new shares to raise £1.55M through existing cornerstone shareholders.

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