VANCOUVER, Dec. 20, 2018 /PRNewswire/ – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX:NXE, NYSE:NXE) is pleased to announce that it has filed a technical report on the Arrow Deposit, Rook I Project (the “Technical Report”) pursuant to National Instrument 43-101 “Standards of Disclosure for Mineral Projects” (“NI 43-101”). The Technical Report supports the disclosure made by the Company in its November 5, 2018news release announcing the results of the maiden pre-feasibility study for the Arrow Deposit located on the Company’s 100% owned, Rook I Property.
The Technical Report, bearing an effective date of November 5, 2018, is entitled: “Technical Report on the Pre-feasibility Study of the Arrow Deposit, Rook I Property, Saskatchewan, Canada” and was prepared by Mr. Paul O’Hara, P.Eng. of Wood., Mr. Jason J. Cox, P.Eng. of RPA, Mr. David M. Robson, P.Eng., M.B.A of RPA, and Mr. Mark B. Mathisen, C.P.G. of RPA, each of whom is a “qualified person” for the purposes of NI 43-101.
NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production. NexGen owns a portfolio of prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook I, location of the Arrow Deposit in February 2014, the Bow discovery in March 2015, the Harpoon discovery in August 2016 and the Arrow South discovery in July 2017.
Forward-Looking Information
The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.
Forward-looking information and statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about NexGen’s business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions, including among others, that the proposed transaction will be completed, the results of planned exploration activities are as anticipated, the price of uranium, the cost of planned exploration activities, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment, supplies and governmental and other approvals required to conduct NexGen’s planned exploration activities will be available on reasonable terms and in a timely manner and that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward looking information or making forward looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of NexGen to differ materially from any projections of results, performances and achievements of NexGen expressed or implied by such forward-looking information or statements, including, among others, negative operating cash flow and dependence on third party financing, uncertainty of the availability of additional financing, the risk that pending assay results will not confirm previously announced preliminary results, imprecision of mineral resource estimates, the appeal of alternate sources of energy and sustained low uranium prices, aboriginal title and consultation issues, exploration risks, reliance upon key management and other personnel, deficiencies in the Company’s title to its properties, uninsurable risks, failure to manage conflicts of interest, failure to obtain or maintain required permits and licenses, changes in laws, regulations and policy, competition for resources and financing, and other factors discussed or referred to in the Company’s Annual Information Form dated March 2, 2018 under “Risk Factors”.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
Toronto, Ontario and Vancouver, British Columbia–(Newsfile Corp. – December 20, 2018) – Minera Alamos Inc. (TSXV: MAI) (“Minera” or the “Company”) is pleased to provide an update of its 2018 development activities at the La Fortuna (“Fortuna” or the “Project”) gold project located in Durango, Mexico.
“As one of two foundational assets that have been rapidly advanced this year, La Fortuna now has key permitting and technical milestones in place. This provides a path to a commercial production decision in the second half of 2019,” commented Darren Koningen, Chief Executive Officer. “Minera can now begin development activities at La Fortuna that will run in parallel with the proposed development of the Santana gold project and allow for our development team to transition from Santana to Fortuna as the year progresses.”
2018 La Fortuna Project Development Highlights
The completion of a Preliminary Economic Assessment (“PEA” – see further details below) demonstrating robust project economics including an after-tax internal rate-of-return of 93% and an all-in sustaining cost (“AISC”) of $440/oz [net of by-product credits].
The receipt of a positive notification from the Mexican environmental authorities (Secretaria de Medio Ambiente y Recursos Naturales – “SEMARNAT”) confirming the successful completion of the technical review phase of the Company’s application (Estudio Tecnico Justificativo – “ETJ”) for the change of land use to construct mining and processing facilities at the Fortuna project area. Following the completion of the change of land use payments made earlier this month, SEMARNAT is now in a position to issue the formal approval documentation for the project.
The completion of the geotechnical studies and design of the “dry-stack” tailings containment facilities for the Project which were submitted to the Mexican Federal Environmental Agency (Secretaria de Medio Ambiente y Recursos Naturales or “SEMARNAT”) as part of the mine permitting process.
The identification of a new area (“La Pista”) approximately 1300m southwest of the Company’s La Fortuna Main Zone resource that contains significant near surface disseminated gold/silver mineralization with “heap leach style” intervals of up to 50m in width. Rock sampling surrounding the new target zone has returned assays up to 8 g/t Au and 30 g/t Ag over a mineralized area of approximately 500m x 300m. Plans were completed to include testing of the new area in addition to other known areas of historical mining as part of the Company’s Fortuna exploration plans for 2019.
Production and Economic Highlights from La Fortuna PEA
The Company has filed on SEDAR the independent Preliminary Economic Assessment (“PEA”) titled “NI 43-101 Technical Report, Mineral Resource Update and Preliminary Economic Assessment of the La Fortuna Gold Project, Durango State, Mexico”. The PEA results were previously disclosed in the Company’s news release dated August 16th, 2018 and prepared by CSA Global Geosciences Canada Ltd (CSA Global) of Toronto, Canada in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The report, which is effective as of July 13th, 2018 can be found under Minera’s profile at www.sedar.com and on the company website.
Production highlights
Average annual contained-metal production of approximately 50,000oz Gold Equivalent (43,000oz Gold, 220,000oz Silver, 1,000t Copper).
5-year mine life based on initial resource “starter pit” with 2.0 Mt of mineralization (3.68 g/t Au, 20 g/t Ag, 0.27% Cu) processed at 1,100 tpd average processing rate.
215koz of Gold, 1.1Moz of Silver, and 5kt of Copper produced in concentrates.
Robust economics using metals prices of $1,250/oz Au, $16/oz Ag, and $5,725/t Cu:
All-In Sustaining Cost (AISC) of $440/oz [net of by-product credits]
After-Tax NPV at 7.5% of $69.8M and IRR of 93%.
Pre-Tax NPV at 7.5% of $103.8M and IRR of 122%.
Low initial capital costs and rapid payback:
Pre-production capital costs of $26.9M.
Payback period of 3.9 11 months.
2,000 t/d mill already purchased awaiting shipment to site reduces up-front capital.
Significant Upside
Current PEA completed on project “starter pit” resource only, a single zone of drilled mineralization that appears to remain open geologically.
Additional milling capacity – project permitted for a 2,000 tpd operation with the PEA based on a starting rate of 1,100 tpd.
Numerous opportunities for significant economic improvement – improved gold recoveries, reduced initial capital costs, etc.
Notes:
“AISC per ounce” is a non-GAAP financial performance measures with no standardized definition under IFRS; additional reference info at bottom of release
Base case prices for gold, silver and copper were assessed at values approximately 2%-7% below the three-year trailing average prices for each of the metals and below the majority of the publicly available forward looking estimates available as of July 2018
PEA Cautionary Note:
Readers are cautioned that the PEA is preliminary in nature and there is no certainty that the PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Additional work is needed to upgrade these mineral resources to mineral reserves.
Minera Alamos is an advanced-stage exploration and development company with a growing portfolio of high-quality Mexican assets, including the La Fortuna open-pit gold project in Durango with positive PEA completed, the Santana open-pit heap-leach development project in Sonora with test mining and processing completed and the Guadalupe de Los Reyes open-pit gold-silver project in Sinaloa with mine planning in progress. The Company is awaiting the pending approval of permit applications related to the commercial production of gold at both the Santana and Fortuna projects.
The Company’s strategy is to develop low capex assets while expanding the project resources and pursue complementary strategic acquisitions.
Mr. Darren Koningen, P. Eng., Minera Alamos’ CEO, is the Qualified Person responsible for the technical content of this press release under National Instrument 43-101. Mr. Koningen has supervised the preparation of, and approved the scientific and technical disclosures in this news release.
Caution Regarding Forward-Looking Statements
This news release may contain forward-looking information and Minera Alamos cautions readers that forward-looking information is based on certain assumptions and risk factors that could cause actual results to differ materially from the expectations of Minera Alamos included in this news release. This news release includes certain “forward-looking statements”, which often, but not always, can be identified by the use of words such as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These statements are based on information currently available to Minera Alamos and Minera Alamos provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements with respect to Minera Alamos’ future plans with respect to the Projects, objectives or goals, to the effect that Minera Alamos or management expects a stated condition or result to occur and the expected timing for release of a resource and reserve estimate on the Projects. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, the economics of processing methods, project development, reclamation and capital costs of Minera Alamos’ mineral properties, the ability to complete a preliminary economic assessment which supports the technical and economic viability of mineral production could differ materially from those currently anticipated in such statements for many reasons. Minera Alamos’ financial condition and prospects could differ materially from those currently anticipated in such statements for many reasons such as: an inability to finance and/or complete an updated resource and reserve estimate and a preliminary economic assessment which supports the technical and economic viability of mineral production; changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Minera Alamos’ activities; and other matters discussed in this news release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Minera Alamos’ forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Minera Alamos’ forward-looking statements. Minera Alamos does not undertake to update any forward-looking statement that may be made from time to time by Minera Alamos or on its behalf, except in accordance with applicable securities laws.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
It’s December and we continue to see strong progress at Pumpkin Hollow. Both underground and surface works are proceeding according to schedule and, as you can see from the first photo below, the site is steadily transforming. For comparison, check out our October update. Below are some additional photos and comments on some of our recent activity.
East Main Shaft
We now have a 2-boom jumbo and rock bolter on site (both Epiroc) and an R1600 LHD (CAT). We have completed the 2850 shaft station, have sunk the shaft down to the 2770 shaft station level and are now developing the 2770 shaft station. This is an important station as it will house our material handling system. This system will be responsible for hoisting ore out of the mine and, during development, it will be our main haulage from the 2850 level via a drop-raise. This will allow us to handle the waste from our 2850 lateral development.
East-North Ventilation Shaft
We have completed the sub-collar (that was in progress during our last update) and have commenced pre-sink activity. The shaft has now been sunk 100ft down from the sub-collar. In the photos you’ll see an impressive 220-ton crane (in red) which has been facilitating our rapid progress on the East-North shaft work.
We completed the foundations for the winches and main hoist in November and have also installed the winches and hoist on those foundations. We are now working on the foundations for head frame and we expect delivery of the Galloway in the coming month.
Surface Works
Preliminary work for the surface facilities and processing plant continues to move forward briskly. We have completed the earth works for the low-grade/high-grade stockpile area along with the earth works for the processing plant. We have also made significant progress on the earth works for the support buildings and we are currently re-routing the 25kv power line to its final location.
Additional Information
For further information please visit the Nevada Copper corporate website (www.nevadacopper.com) and visit our Pumpkin Hollow virtual tour.
NEVADA COPPER CORP.
Further information call:
Rich Matthews
VP Marketing and Investor Relations
Nevada Copper Corp
rmatthews@nevadacopper.com
1 (877) 648-8266 – Work | (604) 355-7179 – Mobile www.nevadacopper.com
Miles Franklin was founded in January, 1990 by David MILES Schectman. David’s son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin’s primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
We are rated A+ by the BBB with zero complaints on our record. We are recommended by many prominent newsletter writers including Doug Casey, Jim Sinclair, David Morgan, Future Money Trends and the SGT Report.
Vancouver, British Columbia–(Newsfile Corp. – December 20, 2018) – Pacific Empire Minerals Corp. (TSXV: PEMC) (OTCQB: PEMSF) (“Pacific Empire”, “PEMC” or the “Company”), a hybrid prospect generator focused in British Columbia is pleased to announce it has entered into an option agreement to acquire a 100% interest in the Sat Property located in the Babine Copper-Gold Porphyry district in central British Columbia. The Sat Property covers 50 square kilometers and is within 15 km of the past-producing Bell and Granisle copper-gold porphyry deposits.
About the Sat Property
Historical work conducted on the Sat Property includes over 3,000 metres of diamond drilling, 180 line-km of induced polarization surveys, collection of over 3,500 soil geochemical samples and ground and airborne geophysics. Historical drilling focused on was has been interpreted as a “pyrite halo”, measuring approximately 1,200 x 600 metres. Drilling encountered biotite-feldspar porphyry dikes and sills which intrude moderately to intensely chlorite-epidote-calcite altered andesitic volcanics, argillite and basalt. Anomalous copper values are present in several holes, though intercepts indicating a potentially economic deposit have not been encountered to date.
Thorough data compilation and review has outlined several target areas untested by drilling, the most significant of which is situated adjacent to the interpreted pyrite halo where bedrock exposures are obscured by glacial overburden. A network of logging roads make the Property ideally suited for PEMC’s reverse circulation drill.
Details with respect to the consideration payable for the Sat Property acquisition are as follows:
Table 1. Option agreement terms.
Timing
Cash Payments *
Share issuances
Upon signing
$5,000
–
First anniversary of Effective Date
$5,000
50,000
Second anniversary of Effective Date
$10,000
100,000
Third anniversary of Effective Date
$20,000
150,000
Fourth anniversary of Effective Date
$25,000
200,000
TOTAL =
$65,000
500,000
The vendors of the property hold a 1% net smelter royalty (“NSR”). The Company may purchase one half of the NSR at any time from the vendors for $500,000. *
* Dollar amounts expressed in Canadian dollars
This property acquisition remains subject to approval of the TSX Venture Exchange. Any securities issued as consideration under this option agreement will be subject to a statutory hold period of four months and one day from the date of issuance.
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The most significant deposits and occurrences in the Babine Lake area are temporally and spatially related to Eocene (50 Ma) Babine intrusions. These host more than a dozen deposits and occurrences in addition to the past producing Bell and Granisle open-pit mines which processed 130 million tonnes with average recovered grades of 0.40% copper and 0.15% gold between 1966 and 1992.
Babine intrusions occur as small stocks, plugs and dike swarms emplaced along northwest-trending regional faults developed in arc-derived Mesozoic volcanic and sedimentary assemblages. The dominant host rock for copper-gold mineralization is a distinctive, fine- to medium-grained, crowded biotite feldspar porphyry (BFP) of granodiorite composition. Copper-gold mineralization occurs as chalcopyrite and bornite within narrow quartz-filled fractures and stockworks and as disseminations within and marginal to BFP intrusions.
Although most of the known porphyry deposits and occurrences were found by basic prospecting and stream sediment geochemistry, subsequent exploration in the Babine area has been hampered by extensive glacial overburden cover.
Pacific Empire’s President, Brad Peters, added: “The addition of the Sat Property increases our land position in the Babine Copper-Gold Porphyry District to over 15,000 hectares with numerous drill targets. We intend to focus our 2019 exploration efforts in this area, though we will continue to advance other projects in our portfolio.”
Qualified Person
Rory Ritchie, P.Geo., Vice President of Exploration for the Company, serves as a qualified person as defined by National Instrument 43-101 and has reviewed the scientific and technical information in this news release, approving the disclosure herein.
About Pacific Empire Minerals Corp.
PEMC is an exploration company based in Vancouver, British Columbia, that employs a “hybrid prospect generator” business model and trades on the TSX Venture Exchange under the symbol PEMC and on the OTCQB Markets under the symbol PEMSF.
By integrating the project generator business model with low-cost reverse circulation drilling, the company intends to leverage its portfolio by identifying, and focusing on, the highest quality projects for partnerships and advancement.
ON BEHALF OF THE BOARD,
“Brad Peters“
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation, are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
MECHANICAL SORTING YIELDS GOLD-RICH CONCENTRATES AT KARRATHA; EGINA TERRACE GRAVEL RETURNS POSITIVE GOLD RESULT
VANCOUVER, BC, December 20, 2018 – Novo Resources Corp. (“Novo” or the “Company”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce gold-rich assay results from concentrates generated by mechanical sorting trials conducted on four bulk samples from its Karratha gold project and encouraging gold recovery from its first terrace gravel bulk sample at Egina. Karratha mechanical sorting trial yields gold-rich concentrates:
In order to test the potential viability of mechanical rock sorting as a means of concentrating gold from conglomerates at Novo’s Karratha gold project, four bulk samples were collected, crushed, screened and tested using a TOMRA mechanical rock sorter (forfurther details, please refer to the Company’s news release dated November 19, 2018). High-grade assays from sorted rock concentrates provide a first indication that this technique is effective at upgrading gold into small volume concentrates (Table 1, below).
Mechanical sorting was conducted on material ranging from 6 to 63 mm (10 to 63 mm for sample KX237. Fractions larger than 63 mm and finer than 6 mm are currently undergoing assaying. Once all analyses have returned, an assessment of the effectiveness of mechanical rock sorting will be made.
Mechanical rock sorted concentrates range from 0.07-0.48% of total sample mass, a remarkably small fraction. Given the high-grade assays of these concentrates, ranging from 92.1-792.4 gpt Au, it appears that gold is being significantly upgraded by mechanical rock sorting.
Optimizing crushing to reduce volumes of fines and oversize, effectively maximizing the amount of material being sorted, should further improve the potential of this technology.
Novo believes mechanical sorting technology could be a critical component of the Karratha gold project moving forward.
“Concentrate grades received from the recent Tomra mechanical rock sorting trials are impressive, reflecting the capability of the scanning and sorting technology to differentially select gold bearing rock,” commented Mr. Rob Humphryson, CEO and Director of the Company. “Total system gold recovery efficiency will be fully understood upon receipt of assay results from all process streams and feed size ranges, with these results expected during January 2019”.
Egina terrace gravel bulk sample returns encouraging gold recovery:
Novo recently completed processing its first bulk sample of terrace lag gravels at its new Egina gold project. As discussed in the Company’s news release dated December 13, 2018, approximately 95 cubic metres of pristine lag gravel (density approximately 1.6 tonnes per cubic metre) were excavated from an area in the northeast part of mining lease M47/560. The sample was transported to nearby Station Peak camp for treatment through the Company’s IGR3000 gravity gold plant (Figure 1). The IGR3000 utilizes Falcon centrifugal concentrators to capture fine and medium sized gold particles and a discharge sluice to capture large nuggets. Multiple fractions of gold generated from this sample are illustrated inFigure 2.
A total of 107.88 grams of raw gold were recovered from 95 cubic metres of gravel. Fine gold and small nuggets recovered by Falcon concentrators account for 18.55 grams of the total. A further 49.16 grams were captured in the discharge sluice. One large nugget weighing 40.17 grams was recovered from the oversize pile using a metal detector. X-ray fluorescence analysis of gold nuggets indicates gold purities ranging from 91-93% with silver making up most of the balance.
Assays of tailings are in process.
Dominantly coarse gold suggests simple processing techniques can likely be employed during potential future large-scale gold recovery at Egina.
Very little clay is present resulting in short scrubbing times and short settling times to clarify return water.
Novo plans an aggressive program of collecting and treating similar-sized bulk samples in 2019 with the intent of establishing a first ever resource at Egina. Novo also has plans for large-scale test sampling. As described in the Company’s news release dated October 30, 2018, Novo thinks lag gravels mantling the vast erosional terrace at Egina could host a significant gold deposit. The shallow nature of these gravels makes them a particularly attractive target.
“The results of our first bulk sample at Egina are very encouraging.” commented Mr. Rob Humphryson, CEO and Director of the Company. “This 95 cubic metre sample was collected from a gravel horizon between 1m and 3m below surface, requiring no drilling, blasting or crushing. The current geologic model has not constrained the gravel horizon in any direction or for any distance across the erosional terrace. In addition to ongoing bulk sampling during 2019 to confirm gold concentrations on a broader scale, exploration field work will be directed towards understanding the lateral extent and continuity of the system. We are very excited about the possibility for this system to be laterally expansive, with obvious connotations for a future large scale and low cost mining operation”
The initial mineral sorting concentrates have been analyzed via Photon assay and are subject to QA/QC and other assay techniques that are currently being performed by MinAnalytical Laboratory Services Australia in Perth, Australia.
PhotonAssay provides a non-destructive chemistry-free approach to gold assay. It bombards samples with high-energy X-rays, causing short-lived excitation of atomic nuclei of targeted elements (e.g., gold). These excited nuclei give off a characteristic signature that can be detected and used to calculate concentration. The analysis is completely non-destructive, and all samples have been retained for further analysis
Dr. Quinton Hennigh, P. Geo., the Company’s, President and Chairman and a qualified person as defined by National Instrument 43-101, has approved the geological content of this news release. About Novo Resources Corp.
Novo’s focus is to explore and develop gold projects in the Pilbara region of Western Australia, and Novo has built up a significant land package covering approximately 12,000 sq km with varying ownership interests. For more information, please contact Leo Karabelas at (416) 543-3120 or e-mail leo@novoresources.com
On Behalf of the Board of Directors, Novo Resources Corp. “Quinton Hennigh”
Quinton Hennigh
President and Chairman Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Forward-looking information
Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, statements as to planned exploration activities and the expected timing of the receipt of results. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, customary risks of the mineral resource industry as well as the performance of services by third parties.
Dan Weir the Executive Chairman of DNI Metals sits down with Maurice Jackson of Proven and Probable to discuss a number of topics for current and prospective shareholders regarding environmental permit, Resource Estimate on the flagship Vohitsara, LOI on Alberta Black Shales Deposit, and a Financing Opportunity.
Progress Reported with Graphite, Vanadium Projects on Two Continents Contributed Opinion
Source: Maurice Jackson for Streetwise Reports (12/19/18)
Dan Weir, executive chairman of DNI Metals, speaks with Maurice Jackson of Proven and Probable about the progress his company has made with its graphite project in Madagascar, as well as developments with its Alberta project.
Maurice Jackson: Joining us for a conversation is Dan Weir, the executive chairman of DNI Metals Inc. (DNI:CSE; DMNKF:OTC), which is establishing itself to become one of the world’s leading graphite producers. Mr. Weir, welcome to the show, sir. Dan Weir: Hi, Maurice, and greetings from Madagascar. Maurice Jackson: Glad to have you back on the program. We brought you on today to provide us with an update on a number of important topics for current and prospective shareholders. But before we delve into today’s interview, for first time listeners, who is DNI Metals, and what is the thesis you’re attempting to prove? Dan Weir: DNI Metals is a public company. It’s been around for about 35 years. DNI had a number of different projects. It first started out as a nickel company. It used to be called Dumont Nickel Incorporated, and it was shortened to DNI Metals. And it had, at one point, a gold asset in Utah. We still own a royalty on that gold asset. And then the previous management was focusing on a very large polymetallic deposit up in Alberta, which I think we’ll talk about a little bit later. When I took over in late 2014, we decided to focus the company on graphite in Madagascar. Our projects in Madagascar are the company’s main focus, and that focus is to get our projects in Madagascar into production. Maurice Jackson: Speaking of Madagascar, in our last interview, you referenced your commitment to getting the environmental permit and a purposed timeline. What can you share with us regarding the environmental permit? Dan Weir: What I’ve tried to do over the last two months is put out press releases to the market and discuss how we’ve been moving forward with the environmental permits. In one of our press releases in October, we mentioned that we had terminated our previous team. We brought a whole new team in to complete the work. I’ve been spending a lot of time in Madagascar to make sure that that is all happening. And you can see from a lot of press releases we have been making great headway. Some of the documents weren’t filed properly with the government agency, the Office National pour l’Environnement Madagascar, also called the ONE. And we have those documents filed. We have to do two site visits, a technical site visit and then a public consultation visit.
On December 5 and 6 when I was here, we did the technical visits. They went very well. And in mid-January we will do the public consultations, three public consultations, one for the district and then one for Marofody and Vohitsara, respectively. Thereafter, DNI Metals will have completed everything to receive the environmental permit. We are very excited that we’ve been moving forward. So it’s been great, Maurice. Maurice Jackson: Speaking of the Vohitsara, can you provide us with an update on the resource estimate? Dan Weir: Yes. We have hired Micon, a company from Toronto. It is very well known around the world for its expertise in resource studies. In the first week in January, Micon will be coming to visit our flagship project, the Vohitsara in Madagascar, to conduct a site review. DNI Metals believes that we can have the main resource for the Vohitsara property completed by late January, early February. We are very excited about the timing because around the same time we should be receive the environmental permits, so very exciting times coming for DNI Metals shareholders. Maurice Jackson: Moving onto Canada, Dan, you referenced the Alberta Black Shells Deposit, which also a part of the DNI project portfolio. It’s been overshadowed with your projects in Madagascar. Tell us a little bit more about this deposit and why is the market is specifically excited about the deposit there? Dan Weir: We had put the project on hold. It was a really a non-core asset. Previous management spent over $6.7 million. There are six outcroppings or six mineralized zones that we know of stretching well over 30 to 50 kilometers right near the tar sands or the oil sands in northern Alberta in Canada. It’s what they call a polymetallic. So all sorts of different minerals are in the there, rare earths, uranium, cobalt, nickel, zinc. But what’s been really exciting lately is the fact that it has a lot of vanadium in it and cobalt and lithium. As the world moves forward with battery metals, those are key components, as well as the graphite being a key component of a lithium-ion battery.
So we’re very excited about all of that. We’ve had a number of people come to us who are interested in doing something with that project. Again, I want to emphasize this, that we’re focused on graphite. We will continue to focus on graphite. But we have done a great deal where a group is going to earn into our property in Alberta. It is going pay us a cash component and will spend a minimum of $1 million to earn into 50% of the project. At that point DNI will have 49% of the project, and we will have a carried interest to a full bankable feasibility study.
So, in essence, another group is going to manage the project. It will do all the work on the project. I will help, but really it won’t take up any of my time, and it allows me to focus on Madagascar and the graphite. But it allows DNI to have a 49% interest in a very big vanadium, cobalt, lithium, rare earth-type deposits. That has some potential. So we’re very excited. Again, we get a carried interest all the way to the bankable feasibility study. And at that point we can decide whether or not we want to put up the capital to build the processing plant or get diluted down to a 2% royalty. We’ll see at that point. Maurice Jackson: Dan, before we leave the deposit there, I want to discuss vanadium a little bit more in detail here. Most investors know very little about the metal. Can you share with us where the demand will be coming from regarding vanadium? Dan Weir: Some investors may not have heard about a vanadium redox battery. It’s very different from a lithium-ion battery. Vanadium redox tend to be used for very, very large storage of energy. So if you had a wind farm or if you had a solar farm and you wanted to store the energy, a vanadium redox battery would be a very good battery for that. It’s not a good battery to use in a car, a cell phone, or your laptop. That’s where a lithium-ion battery has its use. These are big stationary-type batteries. But what’s really driven the price in vanadium lately, and remember when we did the feasibility studies on the Alberta property, vanadium was at around $5.80. It’s now well over $22 a pound.
The primary reason for the price increase in vanadium is that China has just put in new construction laws where a higher percentage of rebar, which is used to strengthen concrete, has to have vanadium in it. That is for two reasons, strengthening the rebar, and helping in the corrosion factors of the rebar. Therefore demand is going through the roof for vanadium. Maurice Jackson: Switching gears. Dan, DNI will be conducting a financing. Can you share the details with us? Dan Weir: Yes. As DNI Metals completes our environmental licenses/permits, and as we move forward on the resource study, our ultimate goal is to complete those, we would do a much larger financing to build the pilot plant, buy the machinery needed. And by machinery, I mean the bulldozers and excavators and additional equipment. But in the meantime, you will see also from our press release, we’re negotiating with some of the locals to buy some of their land. It’ll actually likely be more of a 99-year lease, which we can renew for another 99 years. Again, we’re negotiating all of that. To have some money in the bank right now to be able to use what I’m negotiating will help us.
So it’s nice right now to have some money in the bank. It lets me continue my work, what I need to do here in Madagascar, and sets us up for the next financing. Hopefully in and around some time in February or March that’ll be the time when we want to do a much larger financing to build everything. So we decided to come up with a convertible debenture where investors who buy the debenture, if they hold on to the debenture for one year, there’s a one-year term on the debenture, we’ll pay them a 12% coupon. At that point you can convert the debenture into stock at 8 cents (CAD). You get a unit on the conversion, and all the details are in our press release. Or you can take the cash. Your choice at the end of one year. So this is really a short-term type loan to the company as we develop some of the things we need to do over the coming months. Maurice Jackson: Dan, to summarize what we’ve covered today, what is the next unanswered question for DNI Metals? When should we expect results, and what determines success? Dan Weir: As you’ve seen from a lot of our press releases recently, I have really tried to be open to the market and give exact details of what we’re doing and how we’re doing things for the environmental licenses, for the resource report, and now for potentially developing some of the Alberta projects. So there’s not a lot else out here right now that hasn’t been made public. We’re working our butts off to get things done in Madagascar. I’m staying on top of it and moving it all forward. Maurice Jackson: What did I forget to ask? Dan Weir: I don’t think you forgot to ask anything. Maurice. You’ve been to the property twice. You’ve seen how exciting it is. I’m really pushing to make sure that we get this into production and get there as soon as possible. That’s my mandate, and that’s what I’m doing. Maurice Jackson: Dan, for someone who wants to get more information regarding DNI Metals, please share the contact details. Dan Weir: The best thing to do is email me, because I will be going back and forth between Toronto and Madagascar. It’s DanWeir@DNIMetals.com and the website is www.DNIMetals.com. Maurice Jackson: And as a reminder, DNI Metals trades on the CSE: DNI. And on the OTC: DMNKF. DNI Metals is a sponsor of Proven and Probable, and we are proud shareholders for the virtues conveyed in today’s interview. And last but not least, please visit our website www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.
Dan Weir of DNI Metals, thank you for joining us today on Proven and Probable. Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.
1) Dan Weir: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: DNI Metals. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: DNI Metals.
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Greg Romain the President, Director, and CEO of Gowest Goldsits down with Maurice Jackson of Proven and Probable to discuss the value proposition of the becoming the next Gold Producer in Timmins on their flagship project the Bradshaw Deposit. In this interview we will address the Gowest Gold’s provide a historical reference on the Timmins Region, the value proposition of the Bradshaw Deposit, strategic goals, management team, capital structure, and PFS. For current and prospective shareholders there are details enclosed as well for financing opportunity for accredited investors.
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TRANSCRIPT
Small-Cap Exploration in Timmins Gold Belt Contributed Opinion
Source: Maurice Jackson for Streetwise Reports (12/18/18)
Greg Romain, CEO of Gowest Gold, sits down with Maurice Jackson of Proven and Probable to discuss his company’s aim of being the next gold producer in Canada’s Timmins gold camp.
Maurice Jackson: Joining us today is Greg Romain, the president, CEO and director of Gowest Gold Ltd. (GWA:TSX.V), which is focused on becoming the newest gold producer in Timmins.
For someone new to the story, who is Gowest Gold, and what is the thesis you’re attempting to prove?
Greg Romain: Gowest Gold is a junior exploration company listed on the Toronto Venture Exchange. We are focused on our North Timmins Gold Project, and in that part of that North Timmins Gold Project, we own 100% of the Bradshaw Gold Deposit, which we are currently in a bulk sample and moving towards full production. The Bradshaw is turning out, and we hope, to be the next, newest gold mine in the Timmins Camp not next to an existing headframe built in the last 25 years.
Maurice Jackson: Mr. Romain, please provide us with some historical mining context on the Timmins region, so we may have a better understanding on why Gowest Gold has focused their efforts specifically in Timmins.
Greg Romain: I was born and raised in Timmins, and so I view Timmins as a great mining jurisdiction. In the last 100 years, there has been over 70 million ounces of gold that’s been produced in the camp, and there are a number of deposits that are currently being mined. For example, you’ve got Goldcorp that is mining up in Timmins, as well as Tahoe, its Lake Shore deposit, and a few other smaller ones that are being mined by other various companies.
We and, more specifically, my father-in-law, initially made the discovery. He was on discovery teams of other gold mines in the past and identified this deposit, which we are now hoping to bring into production.
Maurice Jackson: Gregory, now that we have covered the historical mining context on the Timmins region, please introduce us to your flagship project, Gowest North Timmins Gold Project and the value proposition it presents to prospective shareholders.
Greg Romain: The Bradshaw Deposit is located north of the city of Timmins and east of the Kidd Creek Mine. The Kidd Creek Mine is the deepest base metal mine in the world, which is owned by Glencore. Most of the mining companies in the Timmins Camp are situated along what is known as the Porcupine-Destor Fault. We are located north on the Pipestone Fault. The Pipestone Fault is the same time period and event as the Porcupine-Destor. When Kidd was discovered back in the 1960s, they flew Airmag surveys and did some ground drilling looking for more base metals. They came across gold but couldn’t follow it. It was in the early 2000s that the founder of Gowest got his hands on a governmental and geophysics survey, pieced things together, and came up with the initial half-a-million-ounce resource in 2006.
It’s very prospective area that holds a lot of opportunity. Gowest picked up a large land package along the Pipestone Fault. We now own approximately 25 kilometers along the Pipestone Fault, and it still has been underexplored. When I took over the company, the focus was to develop the Bradshaw into an operating mine, generate cash flow, and use that to continue the exploration. We have a number of other zones near Bradshaw that we have done a little bit of drilling and have identified gold and eventually want to turn those into resources as well. So, there’s a great opportunity there.
Bradshaw itself, the mine site is close to the city of Timmins, therefore we already have good infrastructure, great knowledge of the people, great working relationship with the First Nations because they’ve been working with mining companies for a long time. So, all in all, the Timmins area is one of the best areas in my view and in terms of mining and opportunities that present themselves.
Maurice Jackson: Gregory, I believe you’re being a little conservative here with us. Gowest Gold has a multi-million-ounce potential here. Talk to us a little bit more about the resource.
Greg Romain: The resource total is about 1.2 million ounces, and if you break that down, you’re looking at about 450,000 to 500,000 ounces of Indicated ounces of about 6 grams resource. In that, you’ve got a reserve of about 277,000 ounces at about 5 grams grade of fully diluted, and that resource is an 800-meter strike length down to about 500 meters. And then, from 500 meters down to 800 meters, you’ve got about 800,000 ounces of Inferred ounces at about 6 grams as well. It’s open along strike, and it’s open along depth. It’s turning out to be one of the longest strikes ever found in the Timmins Camp.
Maurice Jackson: Gowest Gold has outlined a three-phase approach to growth on how it plans to optimize the North Timmins Gold Project. Please share the strategy with us.
Greg Romain: Phase One we are going to focus on the Bradshaw. We are using existing capacity in the Timmins Camp to process. If I step back a moment, the ore at Bradshaw is our single-pyrite refractory gold. It’s a similar type of gold structure that is found, for example, at Barrick and Newmont in Nevada. Placer Dome, Red Lake operation, part of their deposit is refractory in nature as well.
Once we mill, we’ll produce a concentrate, and we’ll ship that concentrate to a third party for processing. To accomplish this our goal is to get Bradshaw into production, use existing infrastructure, and get the project up and running. At the same time, continue to expand the Bradshaw to get into multi-million-ounce resource and then look at building our own infrastructure or acquiring infrastructure within the camp. This way, we’ll realize additional sav
ings and more to the bottom line.
The second phase is to continue the growth of the Bradshaw Deposit but also other existing zones in our portfolio that are within a kilometer of Bradshaw, which are the Sheridan, Roussain and Dowe zones. The Sheridan zone is to the west. Roussain zone’s to the north, and the Dowe zone is just to the south of Bradshaw. All of these zones have had some preliminary drilling done on them, but they’ve never been turned into a resource. As you can appreciate, cash is hard to raise, and we treat dollars like manhole covers. And again, we try to focus and do one thing right and then move from that center point.
The second phase would be to take Bradshaw, which our PFS indicates an average when we are in full production of approximately 50,000 ounces a year, but we are already have plans to increase that to 100,000 ounces per year. In the PFS, we had a single ramp, going into the sinter of the deposit. We have plans to ramp off the main ramp and then get a number of more faces moving so that way we can get our production up to 100,000 ounces per year.
And at the same time, we have a third phase is outside of the Bradshaw in the zones that are within the kilometer. As I mentioned earlier, we have got a 110-square-kilometer land package. We have a large land package on this underexplored area of the camp that we have done quite a bit of geophysics work, soil sampling, and there are a lot of correlations between what we see outside of I call it the Bradshaw Project area with Bradshaw.
We are pretty excited about what we have and pretty keen on developing it. But again, our view is to grow it internally and move outwards as opposed to try to be the biggest and the best for everybody. We are going to do it one step at a time.
Maurice Jackson: Mr. Romain, walk us through the Bradshaw site.
Greg Romain: At the Bradshaw site we have offices, dry and change rooms. Gowest Gold has about 30,000 tons of mixed development ore sitting on site. We have completed over 2,000 meters of underground development, and our water treatment plant is up and running. Although we are just moving through the bulk sample phase, and we have permits, we are well along the way of applying for our permits to continue mining. We have designed the mine footprint to really be set up for full mining production, so it isn’t like we built a small little footprint just for a 30,000-ton bulk sample, and then we have to start all over again. We have been doing things in parallel, which is how I’ve always run businesses.
Maurice Jackson: Let’s discuss the bulk sample program and moving towards production. Gowest has accomplished some milestones this year on the Bradshaw Project. What can you share with us regarding the underground development?
Greg Romain: Gowest Gold has completed over 2,000 meters of underground development this year. This includes commissioning of the main ramp and a portal. The portal and the ramp are sufficient to bring us into future, full production mining. We have developed the three levels so far at 30, 45 and 60-meter levels, and we have initiated silling, and really, we are right at the stopes now. So, we have got about 30,000 tons of mixed-development ore on surface, and then we are ready to start mining.
The development follows the gold structures, and all the work that we have done to date shows great continuity and great opportunities. It’s one thing to be an explorer on surface drilling holes, but once you’re underground, you really get to see it. We have been able to confirm and enhance our geological model and what we see. We believe there’s a lot more structures that we’ll be able to prove out, and so far on the project, the most important thing, there’s been no injuries at the project to date. Everything has gone really well on the underground construction.
Maurice Jackson: What steps have you taken this year on preparing for production?
Greg Romain: In preparing for production, our water treatment plant is fully operational, and the discharge is environmentally compliant. That’s a big step. Also, we have introduced ore sorting and X-ray ore sorting and laser sorting, and this will enhance our reserve grade. We are going to reject plus 50% of the waste rock, effectively doubling the grade of the ore from 5 grams up to 10 grams that will be delivered to the mill.
As one can appreciate, while we are still chasing the vein and minimizing dilution at the mining phase, it allows us to reject the waste before it hits the mill. So, there’s a big cost savings because we are going to be shipping this ore to a third party for processing, so we are going to be able to ship less. Also, our cost will be less in the mill because we are not going to be processing the waste material. So, that is very important. We continue to do metallurgical test work. And so far, our tests have showed that we get 97% recoveries, and we continue to optimize the processing cost on the flotation circuit.
One of the biggest things in underground mine operation is ground stability, and we have been able to demonstrate stable and competent ground conditions in both the ore and waste areas. That’s very, very important. We are going to be able to revise our geological model sharply to expand the mineralized area of potential. We see lots of opportunities to expand the mineralization envelopes as we move forward.
In terms of the concentrate, we are going to produce a high-grade concentrate ranging in-between 2 and 3 ounces per ton. That concentrate will be shipped to a third party. Currently, we have an agreement with a company called Humon, which has a large smelting operation in China. Gowest Gold went out on pricing to a number of different groups both in the Americas, outside of the Americas, and that was the group that gave us the best deal at this point. Recently, we signed a 12 million agreement with QMX to use its Aurbel Mill to process the ore into a high-grade gold concentrate.
Maurice Jackson: Regarding the processing and milling agreement, have you come across any challenges that were unforeseen?
Greg Romain: The processing of the concentrate was fairly straightforward. There were no issues. Regarding the mill, we ran into a challenge and this is where current and prospective shareholders may be looking at the Gowest share price wondering “Well, what happened?” Gowest signed a definitive agreement at the end of 2017 with a company called Northern Sun to acquire 50% of the Redstone Mill in Timmins. The Redstone Mill was the perfect mill for Gowest, providing float cells and it could produce a concentrate.
We signed the definitive agreement working towards getting Ontario government consent for the Redstone to process third-party ore. In April of this year, we were notified by Northern Sun that its parent company out of China had a re-org and decided that it wanted to terminate the ownership agreement, the Gowest acquiring 50%. And furthermore, it decided it didn’t even want to process our ore, period, even though Northern Sun had received written permission, which we had seen a copy from the Ministry of the Environment to Process.
This left Gowest Gold in a hole as you can imagine. Here we are sitting with some mixed-development material on the surface. We are at the stopes, and part of our funding was precluded on us having a milling agreement. When that stopped, then the funding stopped, which, let’s just call it, “We hit a speed bump.”
This led us to spend months of negotiating to find a new mill,
which we successfully ended up doing. Now, we are in the throes of a financing, but that was the major issue that we faced in the milling side of things. Our view was try to minimize capital spent to get the project up and running. But as you can imagine, you’re saving on capital, but sometimes some things are outside of your control. And unfortunately, we ended up running into a bit of a jam. When we signed the 50% definitive agreement, in the agreement, it said that we couldn’t solicit anybody else. So, for a period of a number of months, I was working with the group that we signed the 50% definitive agreement, and as such was precluded from talking to anybody. But once it ended, then we moved on to other opportunities. So, that really impacted us from a timeline and funding perspective.
Maurice Jackson: Walk us through the processing of the Bradshaw Gold Deposit.
Greg Romain: We are going to mine the ore from underground, bring it up. We are going to crush it at site. We are going to crush it down to about an inch, 3/4 of an inch, and then from there, we are going to run the material through the laser X-ray sorter. The sorter will reject up to 50% of the waste rock. From there, the sorted gold ore will be trucked to the Aurbel Mill, and then from the Aurbel Mill, we’ll produce a high-grade concentrate of 2 to 3 ounces per ton. And then, from there, it will be shipped from the Port of Montreal to China. The agreement we have set up with the folks at the Humon Smelter is we get paid 90% of the value of the shipment once it’s on the boat in the Port of Montreal, and then the balance will be remedied once it hits China.
Maurice Jackson: What kind of time allowance has the company established on the evolution of the Bradshaw Project?
Greg Romain: I joined the company in mid-2008, but I wasn’t doing what I would say is true work until 2009, and the reasoning was that the Bradshaw Deposit was owned 50% by two private companies. So, I spent the better part of 2008 and the beginning of 2009 pulling the private owners’ half into Gowest, as well as the surrounding land. At the end of 2009, we raised approximately $6 million, so the true work started in 2010. Currently, Gowest Gold expects to have the bulk sample completed towards the end of mid-2019, subject to financing, and then be into commercial production the beginning of 2020.
As well as some of the catalysts not only growing the Bradshaw, but we also want to start spending some money, some time, and effort on the Sheridan and the Roussain zones to get that into resource status as well and add to our ounces.
Maurice Jackson: We have covered phase one. Let’s move on to phase two, which is doubling your production rate to 100,000 per year. Gowest Gold has three additional gold zones. Please provide us with some background on each of these zones.
Greg Romain: The first zone is the Sheridan zone, which is located approximately one kilometer east of the Bradshaw. We drilled several holes back in 2013. The Sheridan zone was owned by a private company called New Texmont. The owner at the time, who has since passed, indicated that they had pulled out a couple thousand ounces of gold there. I can’t prove or disprove that. But what we did do is we drilled a few holes in 2013, and we got some pretty good grades, grades that we have reported anywhere between 5 to 6 grams over 4 with anywhere between 1 and 4.5 meters. So, there were some good grades, and it was all shallow drilling, less than a couple hundred meters.
Therefore, this is one area we want to go back to because that’s about less than a kilometer from Bradshaw. The current resource is about 800-, 900-meter strike length. But we have drilled 1.3 kilometers on that strike length, and we have done some big stepouts that are not included in the current resource. And, as well, at depth at Bradshaw, we have drilled 1,200 meters and still found mineralization.
North of the Bradshaw, we have the Roussain zone. It’s an old American Barrick property that we picked up from Goldcorp several years ago. We drilled a few holes up there as well and hit 4-5 grams. One hole was 4 grams over 13 meters, so again, only a couple holes, again shallow drilling, but we see that there’s opportunities up there as well to hit that area. And then, south of us, we have got the Dowe zone, and there’s some historical drilling, again, in around the 3–4 gram range, again, very shallow drilling, less than 200 meters.
We drilled some of our largest grades underground this year at the Bradshaw, and we think that that’s going to provide us with a great opportunity to enhance the value. We intersected, and this is all public, gold values of the project 150 grams of gold in a new zone outside the current resource. We have also identified a number of new gold zones in the bulk sample area that we found once we were underground. And also, we have gone through some of the historical core, and because we are using the X-ray sorter, we also own a hand-held X-ray gun. The hand-held X-ray gun picks out the arsenic, and the gold is pretty predominantly associated with the arsenic. When you get high level of arsenic, plus 10,000 parts per million, you’re looking in the 3–5 grams per ton.
Gowest Golld spent a little bit of time over the summer going through some of the old core, and we found core outside of our resource that contained gold that really had never been analyzed. Again, our gold is fully disseminated. It’s not easy to see by the naked eye, and again, things we have learned now being underground has changed the way we view it, which is not really uncommon once you go underground, and has afforded us an opportunity that we think will be able to add ounces to Bradshaw itself and help us grow towards the 100,000-ounce mark.
Maurice Jackson: Moving on to Phase 3. Talk to us about Blue Sky exploration and potential.
Greg Romain: Gowest Gold has approximately 110 square kilometers of land located on the Pipestone Fault. We have about 25 kilometers of property on the Pipestone Fault itself, which we are seeing in addition to people that are outside Gowest Gold that have come by to look at, and it think that we are just sitting on the tip of the iceberg, and that it really lends itself to a much greater potential.
In addition, Gowest Gold has completed quite a bit of geophysics, IP surveys, soil testing. And we have used the Bradshaw kind of as the marker, and we have done a lot of test work on Bradshaw. And now, we are testing all the other sites, and we are finding a lot of things light up and are similar to what we found on Bradshaw as the marker so to speak. So, we are pretty excited about the opportunities. Again, more work has to be done, but I think there’s a lot of interesting targets and opportunities that present itself to grow outside of that call it the Bradshaw area that I talked about, the Roussain zone and the Sheridan zone. I think as you move away, there’s going to be a lot more opportunities.
Just south of Bradshaw, the previous San Gold had a company called SGX, which was its exploration company up in Timmins. And there’s a resource just south of Bradshaw that is very near to us. That deposit’s 50 meters of overburden, and they’ve recognized in the past that the only way they’ll get to it is through Bradshaw. Bradshaw just happens that there’s a large outcrop, and it’s the only out
crop of that size in the area. It’s really flat, bog-type situation. And on the Pipestone Fault, if you follow it further east, you’ve got a number of other deposits down at that end of it, which Kirkland Lake has the Taylor Mine and there’s the old Black Fox mine.
So, there’s lots of opportunities on the Pipestone Fault. It’s just that where we are there’s lots of overburden, and it was people’s last thoughts. But obviously, it’s not our last thought. It’s such a profit center for us.
Maurice Jackson: Talk to us about CSR. What type of relationship does Gowest Gold have with the community?
Greg Romain: As I mentioned at the top, I was born and raised in Timmins. I still have family in Timmins, lots of family in Timmins, and I have a very good relationship with the city of Timmins. I have a very good relationship with the First Nation groups. I’ve worked with them for the last eight, nine years, very closely. They’ve been very forthcoming and very proactive and very supportive of what we are doing. Everywhere from the city of Timmins through the Mining School, we have hired students in the summertime, and even there’s a new mayor who’s just taken over. There was an election recently, but even the past mayor was a mining-friendly mayor, and I always had great support from the city and all the community.
Maurice Jackson: Greg, as things come to fruition here, talk to us about the community and how many people will be gainfully employed here.
Greg Romain: Well, we expect once the mine gets up and running to what’s called the 50,000 ounce per year, phase one approach, we look to employ probably 70 to 80 people, possibly a few more. That’s just up in the Timmins area. There’d be a few more probably at corporate, but if we can get a mill built in Timmins, then you’re looking at another 20 to 30 people as well. So, all told, you’re probably looking at 100 people getting being employed up in the area, which is significant for the town. I can tell you when I’m back in Timmins, and people bump into me, they’re rooting for us because they all know about the big players and the big guys. But as I said to you, it’s been 25 years since anything’s been built from a greenfield. We have lots of supporters, and people want to see this happen. So, it keeps me excited to know that the community’s behind it.
Maurice Jackson: Before we discussed the management team, are there any reversionary interests or royalties on the North Timmins Gold Project?
Greg Romain: There are a few small royalties on the North Timmins Gold Project, but on Bradshaw itself, on the 100%-owned Bradshaw, there’s only a 1% royalty currently with Sandstorm.
Maurice Jackson: Are there any redundant assets such as patent mining claims?
Greg Romain: No, there are not.
Maurice Jackson: Sir, we have covered a lot of ground. Let’s conduct a brief recap.
Greg Romain: Gowest has enough ground to host multiple mines. We are targeting a near-mine exploration, and we are in striking distance of building the next new gold mine in Timmins. The Bradshaw Deposit has all the earmarks of the historical mines in Timmins. We have a large, large land position, and it’s situated in a world-class mining camp with great infrastructure.
Maurice Jackson: Switching gears, I learned from some of the most surely successful in the industry, from Rick Rule, Doug Casey, Jayant Bhandari, Mickey Fulp, and Bob Moriarty, that the people running the business are equally if not more important than the latent material in the ground. Mr. Romain, please introduce us to your Board of Directors and management team and the unique skillsets they bring to Gowest Gold.
Greg Romain: When I took over Gowest, the Board at the time had been there a long time, and they stated, “Greg, do what you want with the Board. Change it the way you see fit.” What I’ve always tried to do when I’ve run a company is get people on the Board that I’m not looking for people just to agree with me all the time. I’m looking for people to challenge me, and I look for people with different skillsets. And fortunately, I’ve been able to do that here.
A few names, Fraser Elliott, the chairman, he’s been involved in a lot of different financings and understands the business quite well. John Frostiak retired from Barrick, but he was involved in building the autoclaves for Placer Dome up at Red Lake, a very well-known, a very technically sound individual. Larry Phillips was a co-founder of IAMGOLD, which most people up there will know IAMGOLD.
We also have Yungang Wu. He’s one of the representatives because one of our shareholders is out of China, and they own 23% of Gowest. Yungang was the fellow that introduced me to the folks in China, but he’s also a geologist. He QP’d several resources up in the Timmins Camp, including Temex, which currently is owned by Lake Shore or owned by Tahoe-Lake Shore operations.
As well as I’ve got some really great mining people and technical people, and Greg Hart was underground mine manager for the operations for Goldcorp up in the Porcupine Camp in Timmins. Garth’s worked on a number of projects. He’s a metallurgical engineer, very sound, as well as Jeremy, who was involved with a number of discoveries and who heads up our director of explorations.
So, we have got a really sound team that are a great skillset that have been passionate, and they’ve invested and have been pushing this project forward with me.
Maurice Jackson: Tell us about Greg Romain. What makes him qualified for the task at hand?
Greg Romain: I don’t like talking about myself because in my view, it’s not about me. It’s about the people around me. It’s the people that make it happen. I equate myself as general manager or a coach. When you bring the best people, you give them the tools, and let them go. I’m a person who perseveres, and I never give up.
A lot of people in my position would be easily give up trying to build a new mine from a greenfield, and as you know, there’s very few that do it. I think that’s what qualifies me. Janet and I, who was the CFO, ran Norcast, which was a manufacturer of consumable products for the mining industry, and we were very successful at that and taking it public as an income trust. It’s selling it again, so we have been through it. We understand things, and again, it’s keeping people motivated and surround yourself with the best people. Fortunately, through my career, I’ve gotten to know a lot of great people, and they’ve all come back to try and help push this project forward.
Maurice Jackson: Tell us about your capital structure.
Greg Romain: Currently, we have about 370 million shares outstanding. We have 27 million warrants outstanding with the average price at about a quarter. We have about 12 million options at about 11 cents on average. Fully diluted, we are about 410 million in shares. Our largest shareholder’s out of China, a private company called Fortune Future. It owns approximately 23%, along with management that owns about 11% and other insiders, including insiders, we are probably about 41% of the company.
Our trading range when we are up about 52-week high of
20 cents, and we are floating around in the four or three and a half cent mark right now. So, our market cap is hovering around a $15 million-dollar mark. Again, a big part of that is when we announced that the definitive agreement was going to move aside, and then we had to go and start over again on the processing side. So, that really impacted us, with the exception of cash, which we are working on now, I think we have a great opportunity here at Gowest.
Maurice Jackson: Let’s discuss some numbers. How much cash or cash equivalents do you have?
Greg Romain: Right now, we don’t have a lot of cash in the bank, and we are out doing a raise. We announced up to $5 million, plus our largest shareholders are visiting next week as well. Plus, we are looking at other strategic options to move the project forward from a funding perspective.
Maurice Jackson: Talk to us about past cash flow distribution.
Greg Romain: We have got about $8.6 million of debt, and in that, it includes $3 million of convertible at our discretion. The money that we got that we have been using has been all going into the ground, has all been going into the development of Bradshaw. We have spent approximately $12 million on Bradshaw. We need another approximately CA$15 million to get us into full production is what our financial models look at today. Everything goes into the Bradshaw, and that’s been our focus. It hasn’t moved from that.
Maurice Jackson: What is your current burn rate?
Greg Romain: So, to answer that question, if we were operating without the glitch that we ran into, our burn rate from a corporate G&A perspective is about $120,000 a month on average. That’s from a corporate side. Right now, we are on call it care and maintenance. Our burn rate’s about $200,000 to $250,000 a month. As I mentioned, we are underground, so we are trying to sustain and keep things dewatered while we work our way through the financing piece now that we have got the mill to mill the ore.
Maurice Jackson: Are there any Change of Control Fees?
Greg Romain: The only Change of Control Fees are in the lending agreement with our lenders that we owe US$5.6 million to, and then also, the CEO and CFO have employment contracts.
Maurice Jackson: Gowest Gold conducted a prefeasibility study. When was this completed, and what gold price was used to determine the economics?
Greg Romain: The PFS was completed in June 2015, and it was done at the gold price of US$1,200 and at an exchange rate of about a $1.30, I believe, $1.25, or 80 cents exchange rate to be exact. On that PFS, the NPV was about US$40 million. The initial capital was about $21 million. Sustaining capital was about $21 million. This is all U.S. dollars. The average gold production in the PFS was 40,500, but I just want to caution everybody. That includes the bulk sample in pre-production once we get into the production years, once we stabilize things here at 50,000 ounces per year.
The life of mine operating costs were about US$821 per ounce, and the all-in sustaining cost was about $891 per ounce. So, the IRR was 27%. The life of mine was eight and a half years. This was 2015. We have been underground. We have done a lot of work since. But the folks that provided us with some of the funding out in New York, obviously, we have done a lot more work that we just haven’t gone out and re-published a 43-101. But I can tell you that things are still looking positive from that aspect.
Maurice Jackson: All right, sir. You survived the storm. Mr. Romain, multi-layered question. What is the next unanswered question for Gowest Gold? When should we expect results? And what determines success?
Greg Romain: Results, pending financing, which we have hope to close on some financing within by the end of the year, and then close the balance of it early next year. We expect to start the bulk sample towards the beginning of the second quarter. We should expect to have the bulk sample done about six months after that. At the same time, we are hoping, again subject to financing, to do a little more in-field drilling and then short some of the zones. And then, by the end of the year, come out with a new, updated resource along with plans to get us into production. Final plans, I’m referring, that we expect to have permits by then, so I think that’ll be the success. That’ll be the success if by this time next year, you and I are speaking again, and we can say, “We completed the bulk sample. Here’s all the great news, and we are now headed into full production.” That to me will be success.
Maurice Jackson: What keeps management up at night that we don’t know about?
Greg Romain: One of the biggest things that frustrates me as a CEO of a publicly traded company is that you can’t always put out news releases because sometimes you’re working on things. Until it’s completed, there’s not much you can say. For myself, and the chairman and the CFO and a lot of the technical people, we are all shareholders in the company. We have bought all along. Last year, I purchased stock in the $0.20s, and most recently, I bought stock at 8 cents. So, it’s painful, but at the same time, we are going to put out news when it’s justified, and it makes sense.
We are in a space that’s a very difficult space, and people under a lot of pressure. I understand that shareholders want to hear what’s going on. They want news. I think in our case, I may be a conservative kind of guy, right, but I’m not just going to pump something for the sake of pumping because I just think that is wrong. But I will tell the truth, and I will give you the news when I know what the news is. Management would love to be out buying stock right now in the market, but at the same time, there’s a lot of things we are working on that we have got to be careful that we are not off-side as well, right?
So, it’s a fine balance, and it’s one that keeps me up. The communication and how we can do a better job, and hopefully, as we move forward, we’ll continue to put out the releases in a timely manner that meet expectations of all shareholders. But at the same time, it’s information that’s going to be meaningful to the reader. I can’t just put out information for the sake of putting out information.
Maurice Jackson: If you would, sir, you referenced a financing opportunity. Share the specifics with us.
Greg Romain: Yes. We announced about a week or so ago that we are raising up to $5 million by way of a non-brokered, private placement, and it’s cheap. It’s at $0.05, and I think it’s a great deal for people. At a nickel with a two-year warrant at 7 cents, and these are all Canadian dollars.
Maurice Jackson: What question did I forget to ask?
Greg Romain: You’ve covered just about all the bases, and hopefully, I’ve been able to explain things clearly enough to the readers out there and, hopefully, get to come back sometime soon to give you an update. Hopefully, in a few months when we get some feed into the mill.
Maurice Jackson: Greg, for someone listening that wants to get more information on Gowest Gold, please share the website address.
Maurice Jackson: And as a reminder, Gowest Gold trades on the TSX.V: GWA, and on the OTC: GWSAF. For direct inquiries, please contact Greg Romain at (416) 363-1210. He may also be reached at info@gowestgold.com.
Greg Romain of Gowest Gold, thank you for joining us today on Proven and Probable.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.
1) Greg Romain: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Gowest Gold. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: Gowest Gold. 2) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Proven and Probable disclosures are listed below. 3) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click herefor important disclosures about sponsor fees. 4) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 5) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. 6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
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Andy Schectman the President of Miles Franklin Precious Metals Investments sits down with Maurice Jackson of Proven and Probable to discuss the strategic advantages available to precious metals investors regarding tax loss selling, and the value proposition of owning precious metals IRA, which is redeemable in cash and or physical precious metals.
“For the last 6 months we have responded ‘it is happening right before your very eyes!’”
“The coming crash is a mathematical certainty and one that historians will ask in the future, ‘what were they thinking.’ While CNBC parades clown after clown to tell you this is a buying opportunity, I would simply advise DON’T BE STUPID and use your own common sense! We lived through the biggest super cycle of credit the world has ever seen… how do you think this ends?”
Bill Holter understands the financial dangers confronting the world, particularly in Europe and the U.S. As for timing he said, “it is happening right before your eyes.”
The global economies must service about $250 trillion in debt, which is too much debt! The multi-decade central bank and government response to crises has been throwing dollars at the crisis and “fixing” excess debt problems with more debt. Like ten pounds of hamburger sitting in hot sun, the debt problem may not be rotten yet, but it will spoil soon.
The markets agree—they breached multiple danger zones. Nonsense touted by Wall Street cheerleaders and politicians will help as much as treating stage four pancreatic cancer with aspirin.
WHAT DO CHARTS AND DATA TELL US?
Global central banks “printed” about $20 trillion in “funny money” that bailed out banks, levitated stock and bond markets, lowered interest rates to near zero or below, and allowed politicians to spend, spend and spend. But the flow of created dollars, euros, yen and francs is slowing, and projected to go negative in early 2019.
Central bank printed “funny money” and fractional reserve banking boosted stock and bond markets and increased debt to unsustainable levels. Withdrawing that “funny money” will weaken bond and stock markets. The process is accelerating.
The NASDAQ 100 Index includes the FAANG stocks and other high-flying tech stocks:
The uptrends broke following the 2000 bubble and the 2007 market peak. The NASDAQ 100 Index peaked in September of this year and turned down. Prices have fallen below the uptrend line, the danger zone. Perhaps tech stocks will rally again and make new highs. Perhaps Santa will deliver gifts from an anti-gravity powered sleigh to every boy, girl, politician and fund manager in the world… but don’t bet on those possibilities. The risk is high.
The NASDAQ 100 to S&P 500 Index Ratio:
This ratio is one measure of excessive valuation in tech stocks. Note the bubble highs for the ratio in 2000, and the excessive highs in 2018. The ratio rolled over in August of this year before the peak in the NASDAQ 100 Index.
Amazon P/E: 87 (Yahoo – Dec. 17 – has been much higher.)
Netflix P/E: 96 (Yahoo – Dec. 17 – has been much higher.)
Bubble anyone?
The Russell 2000 Index to DOW ratio:
This ratio shows the broader market peaked earlier this decade and has recorded progressively lower ratios. The most recent rollover in the ratio was July 2018. Expect lower prices for the Russell 2000, broader market, DOW and NASDAQ.
Apple stock has rewarded investors. The ratio of Apple to the S&P 500 Index shows the rapid rise of Apple stock prices. The ratio rolled over in October of this year, about when the NASDAQ 100 peaked.
Another high-flyer is Netflix stock. It peaked at $423 in June 2018 and has fallen 37% as of December 14th. It’s P/E is still high, the company puts out good products, carries huge debt, and burns cash like there will be no tomorrow. Hmmmmm.
The Netflix to NASDAQ ratio rolled over in June 2018. Netflix and Facebook stocks gave early warnings of a stock market peak and correction.
The broader market turns lower before the high-flyers, which attract considerable attention plus extra dollars from investors and central banks. (The Swiss Central Bank invested in FAANG stocks.)
One measure of broader market internals is weekly NYSE new highs minus NYSE new lows. An excess of new highs shows strength while many new lows should worry the bulls. The graph of new highs minus new lows shows weakness during most of 2018. The rollover occurred in January at the momentum peak in the stock markets. New lows exceeded new highs since September of this year.
SUMMARY:
1) Bill Holter says the crash is happening now. Ignore at your own risk.
2) Global debt is about $250 trillion. Markets might crash, but the debt remains. Expect defaults and hyper-inflation within several years.
3) Global central banks are withdrawing liquidity from economies. The stock markets know and respond by falling.
4) The NASDAQ 100 and FAANG stocks—the strongest—have rolled over and broken long-term upward trend lines. This parallels what happened in 2000 and 2007. Oops!
5) The ratio of the NASDAQ 100 to the S&P 500 Index has rolled over.
6) P/E ratios for FAANG stocks are high and have been much higher. Their stocks are correcting. More downside lies ahead.
7) The ratio of the broader Russell 2000 to the DOW rolled over long ago. Most stocks are weaker than the indices suggest.
8) NYSE new highs minus new lows peaked in January and have been negative since September.
CONCLUSIONS:
· The risk of a crash or extended correction is large. The potential reward from additional stock market gains looks tiny or long gone.
· Prices, charts, P/E ratios and other ratios support this analysis. Most stocks, indices and ratios have rolled over.
· One of the best markets to buy NOW is silver. It has been weak since 2011 and is due for a rally. Cost of production is near current prices. Investor demand could rocket higher. Consider this chart showing the (weekly data) ratio of silver prices to the NASDAQ 100 Index.
Silver prices are too low compared to the NASDAQ. Now (several months ago) is the time to recycle dollars out of over-priced stocks and into silver.
Silver prices are too low by most measures. Stock prices are too high. Housing and auto sales are weak. It is late in the credit cycle—think 2000 and 2008 again. Assess risk versus reward and buy silver with currency units recycled from other assets.
Miles Franklin sells silver. Call them at 1-800-822-8080 and tell them you agree with the Deviant Investor about silver. Your price will not change, but I might receive a benefit if you give my name as your reference.
If you have questions or comments, email me: deviantinvestor “at” gmail.com.
Miles Franklin was founded in January, 1990 by David MILES Schectman. David’s son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin’s primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
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Initial work program at Prinsep returns a grab sample of 8 g/t gold
Unconstrained gold in soil anomalies at the Eagle and Hawk prospects
Crow area returns anomalous gold and copper values
VANCOUVER , Dec. 18, 2018 /CNW/ – NxGold Ltd.(“NxGold” or the “Company“), (TSXV: NXN) is pleased to provide additional results from its most recently completed field program at the Mt. Roe Project located in the Pilbara region of Western Australia . Results are now available from gridded soil sampling and prospecting samples from follow-up work on anomalous stream sediment samples as part of the continuing systematic approach to target area identification and drill target refinement at Mt Roe. Results from an initial program at Prinsep are also available. On-going metal detecting work has also identified additional nuggets consistent with our targeting approach. Prinsep
A total of 7 stream sediment samples were collected and a soil grid with 80 m line spacing and 80 m sample spacing was taken for a collection of 60 samples. This was an initial work program focused on historical areas worked by prospectors using metal detectors. No significant stream sample values were returned. Soil sample results ranged from detection limit to a high of 180 parts per billion (“ppb”) gold, with areas of weak base metal and silver anomalies. However, eleven selective rock grab samples were collected which returned values from detection limit to 8.6 g/t Au. Expanded soil grids and additional prospecting is required to better understand the controls on mineralisation at Prinsep. Eagle Area
Soil sampling (86 samples) has defined a possible intersection of a north-northwest trending feature and a northeast trending feature associated with the core of the magnetic high feature previously identified. The anomalous zone is approximately 500 m long and varies from 60 m to 120 m in width and may explain only a small portion of the +1.2 km long section of anomalous stream samples previously reported. The soil samples returned gold values ranging from detection limit to 244 ppb goldwith the anomalous zone defined by values greater than the 80th percentile value (17 ppb gold). The anomalous zone is not constrained to the north or southwest. Expanding the soils lines to the northwest and southwest in an effort to identify the ultimate extents of anomaly along with selective infill sampling to better define the core anomaly may be included as part of the next field program. Hawk Area
Soil sampling (26 samples) has identified a roughly 100 m by 300 m anomalous area that is still open to the northwest and southwest. The soil samples returned gold values ranging from detection limit to 828 ppb gold with the anomalous zone defined by values greater than the 80th percentile value (17 ppb gold). This anomalous zone explains the previously reported highly anomalous stream sediment samples. Next steps for this area include adding additional soils lines to close off the soil anomaly to the northeast, southeast and southwest and detailed prospecting and sampling of surface exposures. Crow Area
Following up on anomalous stream samples, three rock grab samples were collected from sub-cropping vein material and float vein material. These samples returned anomalous gold, copper, and silver values as presented in the table below and may explain the single high value stream sample previously reported from this area.
Sample
Prospect
Au g/t
Ag g/t
Cu %
Description
2311
Crow
0.01
0.025
0.0023
veins amygdaloidal basalt with coarse epidote.
2312
Crow
0.36
34.4
2.597
vein breccia, chalcopyrite, chalcocite, malachite and limonite.
2313
Crow
1.29
26.8
2.521
Float vein breccia, chalcopyrite, chalcocite, malachite and limonite, 40 cm wide.
Additional prospecting and a detailed soil grid program will assist in further identifying a target in this area. Swan Area
Soil sampling (27 samples) has identified a roughly 100 m by 300 m anomalous area that is still open to the northeast and southwest; additionally, a single sample on the edge of the grid indicates the potential for a second soil anomaly to the west of the Swan Area which could correspond to a previously reported anomalous stream sample. The soil samples returned gold values ranging from detection limit to 152 ppb gold with the anomalous zone defined by values greater than the 80thpercentile value (17 ppb gold). This anomalous zone explains the previously reported highly anomalous stream sediment samples. Next steps may include additional soil lines to the northeast and west to identify the extents of the current soil anomalies, trenching across the known Swan Area structure on strike from previous trenching or scout drilling across and at depth of the known auriferous structure. Christopher McFadden , Chief Executive Officer commented, “It is pleasing that in a relatively short period of time our team has evaluated the property for different mineralisation styles and advanced to the drill target delineation stage through the systematic exploration of the Mt Roe tenements. This systematic approach will also be used to evaluate the Prinsep tenements which are showing interesting targets and the newly granted tenements at Mt. Roe.”
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. About NxGold
NxGold is a Vancouver-based exploration company. The Company owns 80% of the Mt. Roe gold project located in the Pilbara region of Western Australia. The Company has also entered into an earn-in agreement with Meliadine Gold Ltd. to earn up to a 70% interest in the Kuulu Project (formerly known as the Peter Lake Gold Project) in Nunavut . Technical Disclosure
The on-going sampling programs of stream sediments, soils, rocks and chip samples involve a quality assurance and quality control (QA/QC) program that includes the collection of field duplicates and insertion of certified reference materials at frequency of roughly one in ten samples. Rock samples, stream samples and some chip samples are selective in nature and are not representative of mineralisation on the property. All samples have been sent to Intertek Genalysis in Perth , WA for preparation and analysis. Rock and chip samples were analysed using a 50g fire assay for gold and a 10g aqua regia, 32-element inductively coupled plasma optical emission spectroscopy (‘ICP-OES’). Samples with visible gold or returning >10 g/t gold by fire assay are subject to a screen fire assay analysis. Stream sediment samples were analysed using 1000g bulk leach extractable gold analysis with Leachwell accelerant followed by ICP-MS with a 10g sample split for aqua regia 32 element ICP-OES analyses.
Stream samples were field screened fine fraction (minus 80 mesh) with a collected mass of 10-12kgs. Soil samples were field screened to minus 4mm with a collected mass of approximately 4kg. All samples were split by a two-tier riffle splitter in a secure storage facility into a laboratory sample and a retained reference sample.
Surface material was scraped away, followed by loosening of material with a prospector’s pick and lifting the material onto a sieve screen with a plastic scoop. Samples where sieved down in the field to minus 4 mm, directly into a sample bag. 4 kg of sieved material was collected for each sample. Sample depths went down to approximately 25 cm at each site. Samples were sealed in a cloth bag until split by a two-tier riffle splitter in a secure storage facility. Locations of each sample were recorded by a handheld GPS.
NxGold advises that the Mt Roe Gold project is an early stage exploration project utilising an evolving gold deposit model for a paleo-placer style of mineralisation. Abundant exploration work is required to understand the previously unrecognised sedimentary geology and confirm if the source(s) of the coarse gold is located within NxGold Ltd.’s tenements. There is no certainty of the discovery nor definition of a mineral resource.
The scientific and technical information in this news release has been prepared or approved by Darren Lindsay , P.Geo., Vice President Exploration and Development, of the Company, a “qualified person” within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Cautionary Statement Regarding “Forward-Looking” Information This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to activities, events or developments that the Company expects or anticipates will or may occur in the future including whether the proposed acquisition will be completed. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof. Such forward-looking information and statements are based on numerous assumptions, including among others, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, and that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company’s planned exploration activities will be available on reasonable terms and in a timely manner. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate. Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves or resources, reliance on key management and other personnel, potential downturns in economic conditions, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, and risks generally associated with the mineral exploration industry, environmental risks, changes in laws and regulations, community relations and delays in obtaining governmental or other approvals. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
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