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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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.
VIDEO
AUDIO
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.
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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.
Vancouver, British Columbia: Calibre Mining Corp. (TSX-V: CXB) (the “Company” or “Calibre”) is pleased to report additional results for the on-going 2018 diamond drilling program on the Eastern Borosi Gold-Silver Project, Nicaragua (the “Project”). Exploration and drilling on the Project is being funded by Calibre’s JV partner IAMGOLD Corporation (“IAMGOLD”). Highlights
Initial Drill holes on the San Cristobal gold-silver vein-structure include a new high-grade discovery with intercepts returning;
8.04 metres grading 10.92 g/t Au and 859 g/t Ag (24.14 AuEq) including 1.55 metres grading 54.68 g/t Au and 3,957 g/t Ag (179.11 AuEq).
The San Cristobal Zone has been traced on surface with rock and soil sampling for approximately two kilometres with potential for several sub-parallel structures.
The 2018 diamond drilling program has to date completed 48 holes totaling 10,043.07 metres with results for two holes reported in this news release. Drilling with two diamond drill rigs has recently been concluded with additional drill results pending.
President and CEO Greg Smith stated: “Initial diamond drilling on the San Cristobal gold-silver structure has discovered epithermal veins hosting significant high-grade gold-silver mineralization including one of the highest-grade gold-silver intercepts drilled to date on the Eastern Borosi Project. Discovery drill hole SC18-002 intersected 8.04 m grading 10.92 g/t Au and 859.0 g/t Ag with the discovery remaining open along strike and down dip”.
Highlights of the recent H2 2018 Diamond Drilling at San Cristobal;
Hole
ID
From
m
To
m
Length
(m)
AuEq
(g/t)
Au
(g/t)
Ag
(g/t)
Pb
(ppm)
Zn
(ppm)
SC18-002
76.25
78.20
1.95
0.44
0.22
14.0
12
85
87.82
95.86
8.04
24.14
10.92
859.0
951
2,031
87.82
89.77
1.95
4.88
1.31
232.2
185
391
94.31
95.86
1.55
115.56
54.68
3957.0
4,649
9,788
Notes:
–
H2 2018 Drilling Highlights. See final table for complete recent results.
–
Intervals are core lengths / true width are estimated to be 80-90% of lengths
–
Length weighted averages from uncut assays.
–
g/t AuEq calculated using $1300/oz gold and $20.0/oz silver
H2 2018 Diamond Drilling Program
Drilling to date in 2018 has consisted of step out holes following up on previous high grade intercepts on a series of structures and drill holes testing new targets. Total holes completed to date: 48 – (3 Veta Loca “B”, 3 Guapinol, 13 Cadillac-Jaguar, 6 East Dome, 6 Main Blag, 12 La Luna, and 5 San Cristobal). Total meterage to date 2018 (completed holes): 10,043.07 metres – (468.17m Veta Loca “B”, 590.17m Guapinol, 2,414m Cadillac-Jaguar, 2,052.72 East Dome, 1,637.78m Main Blag, 1,994.88m La Luna, and 630.9m San Cristobal). The complete interval results for the recently received two drill holes are provided in the Table 2 below. Drill hole details and maps can be found on Calibre’s websitewww.calibremining.com.
Recent results have resulted in a new high-grade gold-silver discovery at the San Cristobal Zone. Drill hole SC18-002 intersected 8.04 metres grading 10.92 g/t Au and 859 g/t Ag (24.14 AuEq) including 1.55 metres grading 54.68 g/t Au and 3,957 g/t Ag (179.11 AuEq). The San Cristobal Zone has been traced on surface with rock and soil sampling for approximately two kilometres with potential in certain potions for several sub-parallel structures. Three additional drill holes have been completed at San Cristobal with results pending. A variation in the structural trend is noted and the new results will help to support the modeling and potential of the San Cristobal structure. IAMGOLD / Calibre – Eastern Borosi Project
Exploration to date on the Eastern Borosi Project has outlined several tens of kilometres of highly prospective mineralized structures located in an historic gold-silver mining district. Low sulphidation epithermal gold-silver mineralization intersected on the Eastern Borosi Project is hosted within porphyritic andesite and consists of structurally controlled, high energy quartz-carbonate vein breccias, vein-stockworks and discrete smokey quartz veins containing fine grained sulphide minerals. Targets have been defined by surface soil and rock sampling, trenching and previous drilling.
IAMGOLD has completed the First Option having made US$450,000 in payments to Calibre and completed US$5 million in expenditures and has vested a 51% interest in the Eastern Borosi Project. IAMGOLD has entered the Second Option with the right to earn a further 19% in the Project (by completing additional cash payments totalling $450,000 and further exploration expenditures totaling $5 million) having paid the first and second installments of $150,000 each and funding the on-going 2018 work program. The total potential investment by IAMGOLD to earn a 70% interest in the Project is US$10.9 million. 2018 Exploration and Drilling Program
The 2018 exploration and drilling program is nearly complete. Additional drilling has been recently completed on the Main Blag Deposit extension to the north and also included a few step out holes on the Cadillac Discovery. In addition to the drilling, target generative exploration is on-going consisting on wide-spaced soil sampling and surface rock sampling over selected areas. Remaining drilling results will be reported once they are received, verified and compiled. The results of the 2018 program will be reviewed and used to guide future exploration programs. Calibre Mining Best Practice
Calibre is committed to best practice standards for all exploration, sampling and drilling. Drilling was completed by independent firm Continental Drilling. Analytical quality assurance and quality control includes the systematic insertion of blanks, standards and duplicates. Samples are placed in sealed bags and shipped directly to Bureau Veritas Lab in Managua, Nicaragua for sample preparation and then to Vancouver, Canada for 50 gram gold fire assay and ICP-MS multi element analyses. The technical content in this news release was read and approved by Gregory Smith, P.Geo, President and CEO of the Company who is the Qualified Person as defined by NI 43-101. About Calibre Mining Corp.
Calibre owns a 100% interest in over 413 km2 of mineral concessions in the Mining Triangle of Northeast Nicaragua including the Primavera Gold-Copper Project and Santa Maria Gold Project. Additionally the Company has optioned to IAMGOLD (176 km2) and Centerra Gold (253 km2) concessions covering an aggregate area of 429 km2 and is party to a joint venture on the 33.6 km2 Rosita D gold-copper-silver project with Rosita Mining Corporation and Century Mining. Major shareholders of Calibre include gold producer B2Gold Corp, Lukas Lundin and management. Calibre Mining Corp. “Greg Smith” Greg Smith, P.Geo. President and CEO
For further information contact:
Ryan King 604 628-1012 www.calibremining.com 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. Cautionary Note Regarding Forward Looking Statements This news release contains certain forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate” “plans”, “estimates” or “intends” or stating that certain actions, events or results “ may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to materially differ from those reflected in the forward-looking statements. Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements including but not limited to those with respect to the price of gold, potential mineralization, reserve and resource determination, exploration results, and future plans and objectives of the Company involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Calibre to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Table 2 Eastern Borosi Project – H2-2018 Drilling Results
TORONTO, ONTARIO / ACCESSWIRE / December 18, 2018 / DNI Metals Inc. (DNI: CSE; DNMKF: OTC) (“DNI” or the “Company”)
DNI’s focus is Graphite in Madagascar, but due to the increase in certain battery metals pricing including the value of Vanadium, V2O5, from $5.89*per pound, in 2014, to over U$27.50 the increase of Cobalt, Co, from U$14.38* per pound, in 2013, to over U$25.06, the increase in Lithium, Li2CO3, from U$ 2.82* per pound to over U$30.00, DNI Metals Inc, is pleased to announce that a number of parties have shown renewed interest in its Black Shales Polymetallic deposit in Alberta.
Note: All the mineral prices have changed, the $Can/US exchange rate has changed, and input costs may have changed .*Prices as well used in DNI’s resource report dated August 27, 2013.
Dan Weir, CEO, commented, “I want to emphasize that DNI is focused on developing its Graphite deposits in Madagascar. The previous management team and board of DNI did an amazing job, developing the Alberta Black Shales deposits. Over $6.7 million was spent on developing the deposits. The new team and I were treating the Black shales as a non-core asset. It is great to see the renewed interest in the project, and the worldwide demand for Vanadium.”
Highlights of DNI’s Vanadium and Polymetallic Resource in Alberta.
Several studies on the resources and economic significance of the deposits have been completed and a summary of selected results is presented below. Further details can be found on SEDAR”
Vanadium – Buckton South- Inferred Resource – Lower Portion – Second White Speckled Shale Formation
Vanadium – Buckton – Inferred Resource – Lower Portion – in Second White Speckled Shale Formation
Six Mineralized zones
DNI’s Polymetallic Deposits – Battery and Electric car Metals
Letter of Intent
DNI has signed a Letter of Intent (“LOI”) granting a private company (“Privateco”) an option to earn up to a 51% interest in DNI’s Alberta Black Shales Deposit. The LOI is generally non- binding, except for matters related to, among others, exclusive dealing and confidentiality.
DNI will grant to Privateco the option to earn an initial 51% interest in the Black Shales Property as follows:
upon execution of the LOI, Privateco is paying ONE HUNDRED THOUSAND dollars (Cdn$100,000) to DNI;
on or before the date which is the earlier of 6 months from the date of the Definitive Agreement or 15 days after the date that Privateco completes an RTO/IPO transaction, Privateco would pay an additional ONE HUNDRED FIFTY THOUSAND dollars (Cdn$150,000) to DNI; and
by incurring exploration and development expenditures on the Property of at least ONE MILLION dollars (Cdn$1,000,000) on or before March 31, 2021.
Privateco is controlled by Jim Atkinson in trust and without personal liability for a corporation to be incorporated. This is an arm’s length transaction.
Dan Weir, CEO, commented, “Completing a deal with Privateco, will allow further development of its Vanadium / polymetallic assets, without sacrificing its Graphite Assets. We look forward to working with Privateco’ s professional team.”
DNI has also received interest from a First Nation group to purchase one claim of its eight claims of the Alberta properties and make the area into a provincial park. This could possibly include the area where DNI has its indicated resources, the Buckton zone.
Note: DNI is aware of six mineralization zones, 3 that have been drilled, and that the 3 stretch over 30 kms apart. The 6 form an even bigger area.
Black Shales – Vanadium
DNI Metals owns a Polymetallic black shales deposit in Alberta.
Mineral resources are hosted in two near-surface stacked black shale horizons which are mineralized with recoverable Mo-Ni-U-V-Zn-Co-Cu-Li-REEs-Y-Th-Sc and are partly exposed on surface. Six mineralized systems, or zones, have been identified on DNI’s Property in northeast Alberta.
Two zones, the Buckton and the Buckton South zones have inferred resources and the Buckton has in addition indicated resources.
Asphalt Mineralized Zone. Three holes were drilled over the Asphalt Mineralized Zone, in 2011. It is located approximately 30 kilometres to the south of the Buckton Mineralized Zone.
Buckton South – March 1, 2013 Technical Report
The Maiden Resource Estimate for the Buckton South Zone, SBH Property Northeast Alberta prepared by APEX Geoscience Ltd. classified an inferred resource consisting of 548 million short tons (497 million metric tonnes) of mineralized black shale extending over 3.3 square kilometres beneath less than 75m of overburden cover. This resource is hosted in the Labiche Formation and underlying Second White Speckled Shale Formation, which are two flat-lying Formations that are stacked to comprise a continuous thick zone of mineralized shale. The inferred resource is mineralized with recoverable Molybdenum (Mo), Nickel (Ni), Uranium (U), Vanadium (V), Zinc (Zn), Copper (Cu), Cobalt (Co), Lithium (Li), Scandium (Sc), Thorium (Th) and Rare Earth Elements Lanthanum (La), Cerium (Ce), Praseodymium (Pr), Neodymium (Nd), Samarium (Sm), Europium (Eu), Gadolinium (Gd), Terbium (Tb), Dysprosium (Dy) and Yttrium (Y). The Resource Study estimates that the maiden inferred resource is overlain by 122 million short tons (110 million metric tonnes) of glacial till overburden cover.
Buckton – September 9, 2013 Technical Report
The Updated and Expanded Resource Estimate for the Buckton Zone SBH Property Northeast Alberta, prepared by APEX Geoscience Ltd. expanded the inferred resource at the Buckton Zone from 3.5 billion short tons to 4.9 billion short tons, in addition to upgrading a portion of it to the indicated resource class by delineating a 300 million short ton indicated mineral resource. The inferred and indicated resources together extend over 21.9 square kilometres (approximately a 3kmx8km area), 20.4 square kilometres of which represents the aerial extent of the inferred resource.
Asphalt Mineralized Zone – Exploration Target
Three holes were drilled over the Asphalt Mineralized Zone*, located approximately 30 kilometres to the south of the Buckton Mineralized Zone*. A number of additional planned drill holes were deferred, including holes intended to upgrade a portion of the Asphalt Mineralized Zone* (previously named the Asphalt Potential Mineral Deposit*) into an inferred resource, and holes intended to verify projected extensions of the Zone* which is open in three directions.
As outlined in the SBH Technical Report, the Asphalt Potential Mineral Deposit* holds potential for hosting 109-132 million short tons of polymetallic mineralization extending over 4.5 square kilometers and is open in three directions. The Asphalt Potential Mineral Deposit* was recently renamed as the Asphalt Mineralized Zone* to harmonize nomenclature with Jun30/2011 amendments to NI-43-101. Although based on drilling and nearby outcrop exposures, the Asphalt Mineralized Zone*, as better outlined in the SBH Technical Report, is a target for further ongoing exploration, it is conceptual in nature as there has been insufficient drilling conducted over the Zone* to define a mineral resource, and it is uncertain whether further drilling will define a mineral resource over the Zone*.
DNI’s current drilling reinforces geological extrapolations which suggest good continuity of mineralization within the Asphalt Mineralized Zone*.
Details of the drilling completed over the Asphalt Mineralized Zone* (holes 11AS01-11AS03) are tabulated below, showing analytical results, as well as comparative grades from adjacent historic holes 7AS01 and 7AS02.
Hole
Depth
Zone Width** (m)
Weighted Average Grade (ppm) ***
Specific
#
(m)
From-To
Width
Mo
Ni
U
V
Zn
Cu
Co
Ag
Li
Gravity
11AS01
51.0
26.8-37.9
11.1
116
203
47
786
352
88
30
1.0
75
2.38
11AS02
106.5
95.5-106.5
11.0
65
137
30
682
281
89
23
0.9
85
2.48
11AS03
32.5
Hole Lost in overburden in bad ground @ 32.5m depth
7AS01
76.3
7.1-18.5
11.4
73
144
47
690
376
89
20
0.3
na
na
historic
7AS02
89.8
21.6-33.2
11.4
63
122
31
664
282
89
20
0.3
na
na
historic
Hole
Depth
Zone Width** (m)
Weighted Average Grade (lb/st) ***
#
(m)
From-To
Width
Mo
Ni
U
V
Zn
Cu
Co
Li
[MoO3]
[U3O8]
[V2O5]
11AS01
51.0
26.8-37.9
11.1
0.23
0.41
0.09
1.57
0.70
0.18
0.06
0.15
[0.35]
[0.11]
[2.80]
11AS02
106.5
95.5-106.5
11.0
0.13
0.27
0.06
1.36
0.56
0.18
0.05
0.17
[0.20]
[0.07]
[2.43]
11AS03
32.5
Hole Lost in overburden in bad ground @ 32.5m depth
7AS01
76.3
7.1-18.5
11.4
0.15
0.29
0.09
1.38
0.75
0.18
0.04
na
historic
[0.22]
[0.11]
[2.46]
7AS02
89.8
21.6-33.2
11.4
0.13
0.24
0.06
1.33
0.56
0.18
0.04
na
historic
[0.19]
[0.07]
[2.37]
Note: See notes attached to information tabulated above for the Buckton Mineralized Zone*.
The drilling over the Asphalt Mineralized Zone* serves to confirm historic drilling results. The results reiterate uniformity of grades between the Asphalt and Buckton Mineralized Zones* which are located some 30km apart, and continuity of bulk average grades over distances ranging 300m-760m between holes.
In addition, the recent drill results indicate that tonnages previously estimated for the Asphalt Mineralized Zone* in the SBH Technical Report, relying on historic information, are understated. While an estimated specific gravity of 2.1, per historic work records, was relied upon by the SBH Technical Report to estimate potential tonnages which might be hosted in the Asphalt Mineralized Zone*, specific gravity of the Speckled Shale as measured from the above drill core samples averages approximately 2.4 and, accordingly, revises potential tonnages estimated for the Asphalt Mineralized Zone* from 109-132 million short tons of polymetallic mineralization to 125-151 million short tons. The above specific gravity figures are consistent with results from surface sampling completed by DNI during the past two years.
NI 43-101 Disclosure
The information in this press release was taken from previous press releases and technical reports filed on Sedar between the years 2010-2014.
In 2013, the technical information had been prepared in accordance with Canadian regulatory requirements by, or under the supervision of, the following independent Qualified Persons: Mr. Eugene Puritch P.Eng. (per P&E Mining Consultants Inc.), Mr. Michael Dufresne P.Geol. (per APEX Geoscience Ltd.) and Mr. Bruce Cron P.Eng. (per Cron Metallurgical Ltd.) DNI’s previous Qualified Person in respect of its Alberta polymetallic black shale project is Mr. Shahé F.Sabag P.Geo., former President and CEO of DNI.
James Atkinson P.Geo, and Qualified person, has reviewed and approved the information contained in this press release. The reports prepared by the previous consultants were completed by competent, Qualified Persons and the present QP believes the information to be accurate.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no guarantee that all or any part of the mineral resource reported herein will be converted into a mineral reserve. An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The metal recoveries reported represent preliminary mineral recovery testing results collated from the collective bench scale laboratory testwork completed by DNI to date and may not reflect actual process recoverability that might be achieved in a mineral production operation, all of which is the subject of ongoing studies.
This press release contains forward-looking statements, including statements that relate to, among other things, the following: (i) the geological characteristics of the projects; (ii) the potential to discover additional mineralization and to extend the area of mineralization; (iii) the potential to raise additional financing; and (iv) the potential to expand and upgrade the resource estimate of the projects. Forward-looking information is subject to the risks, uncertainties and other important factors that could cause the Company’s actual performance to differ materially from that expressed in or implied by such statements. Such factors include, but are not limited to volatility and sensitivity to market metal prices, impact of change in foreign exchange rates, interest rates, imprecision in resource estimates, imprecision in opinions on geology, environmental risks including increased regulatory burdens, unexpected geological conditions, adverse mining conditions, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities, and other development and operating risks, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “objective”, “hope” and “continue” (or the negative thereof) and words and expressions of similar import. Although DNI believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis under “Risk and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.
Shaft 1’s continuing advance has intersected 29 metres of high-grade mineralization from underground mine development, beginning at a depth of 780 metres
Platreef’s long-term processed wastewater agreement finalized to supply most of the bulk water needed for the first phase of production
Platreef is positioned to become a major producer of palladium, which recently became more valuable than gold
Platreef’s Indicated Mineral Resources contain an estimated 26.8 million ounces of palladium, 25.6 million ounces of platinum, 4.5 million ounces of gold, and 1.8 million ounces of rhodium (a combined 58.7 million ounces of PGMs plus gold), plus 4.1 billion pounds of nickel and 2.1 billion pounds of copper, at a cut-off grade of 1 gram per tonne
Platreef’s Inferred Mineral Resources contain an additional 43.0 million ounces of palladium, 40.4 million ounces of platinum, 7.8 million ounces of gold, and 3.1 million ounces of rhodium (a combined 94.3 million ounces PGMs plus gold), plus 7.7 billion pounds of nickel and 4.1 billion pounds of copper, also at a cut-off grade of 1 gram per tonne
At the base-case cut-off grade of 2 grams per tonne, Indicated Mineral Resources contain an estimated 42.0 million ounces of PGMs plus gold, plus 2.4 billion pounds of nickel and 1.2 billion pounds of copper, with an additional 52.8 million ounces of PGMs plus gold, 3.4 billion pounds of nickel and 1.8 billion pounds of copper in Inferred Resources
Platreef’s T1 and T2 high-grade mineralized zones interpreted as much thicker versions of the high-grade mineralized reefs found on the Western and Eastern limbs of South Africa’s Bushveld Complex
Mokopane, South Africa–(Newsfile Corp. – December 18, 2018) – Ivanhoe Mines’ (TSX: IVN) (OTCQX: IVPAF) Co-Chairmen Robert Friedland and Yufeng “Miles” Sun, and Ivanplats’ Managing Director Dr. Patricia Makhesha, announced today that Platreef’s Shaft 1 has reached a depth of 850 metres below surface and development work has begun on the 850-metre station – the second of three horizontal mining access stations planned for Shaft 1.
The first mining access station has been constructed at the 750-metre level, following earlier development of a water-pumping station at the 450-metre level. The third mining access station will be developed at a mine-working depth of 950 metres. Shaft 1 is expected to reach its projected, final depth of approximately 980 metres below surface, complete with all four of the stations, in early 2020.
The Platreef mining team delivered the first high-grade mineralization from underground mine development to surface stockpiles for metallurgical sampling three months ago. The high-grade mineralization intersected in Shaft 1 is contained within two mineralized zones (T1 and T2) totalling 29 metres of the Turfspruit Cyclic Unit (TCU). A total of fifty grab samples from individual 3.2-metre-blast stockpiles yielded an average grab sample grade of 6.35 grams per tonne (g/t) platinum, palladium and rhodium plus gold (3PE+Au), ranging up to 9.6 g/t 3PE+Au, as well as significant quantities of nickel and copper.
The 29-metre mineralized intersection in Shaft 1 yielded approximately 3,500 tonnes of ore that will be used for bulk-scale metallurgical test work. Based on the estimated resource grade of the pilot hole for Shaft 1 (GT008), the 3,500 tonnes are expected to contain more than 400 ounces of platinum-group metals (PGMs).
Ivanhoe Mines indirectly owns 64% of the Platreef Project through its subsidiary, Ivanplats, and is directing all mine development work. The South African beneficiaries of the approved broad-based, black economic empowerment structure have a 26% stake in the Platreef Project. The remaining 10% is owned by a Japanese consortium of ITOCHU Corporation; Japan Oil, Gas and Metals National Corporation; and Japan Gas Corporation.
Photo: Stockpiles of Flatreef ore from the sinking of Shaft 1, with Shaft 1 headframe in the background.
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Long-term wastewater agreement finalized to supply most of the bulk water needed for the first phase of production at Platreef
Ivanplats, led by Dr. Makhesha, announced that it has finalized a long-term agreement with the Mogalakwena Local Municipality for the supply of local, treated wastewater to supply most of the bulk water needed for the first phase of production at the Platreef platinum-group metals, nickel, copper and gold mine now being constructed in South Africa.
Ivanplats signed a memorandum of agreement earlier this year with the Mogalakwena Local Municipality for the supply of a minimum of five million litres of treated water a day for 32 years, beginning in 2022, from the town of Mokopane’s new Masodi Treatment Works. Last week, the agreement was officially approved in a signing ceremony in Mokopane.
Ivanplats expects to begin receiving a small quantity of processed wastewater early next year after the Masodi plant has been commissioned. Further treatment will be conducted at the Platreef Mine’s on-site filtration plant to ensure compliance with Ivanplats’ quality standards. The initial supply will be used in Platreef’s ongoing underground mine development and surface infrastructure construction.
Ivanplats estimates that it will require approximately 7.5 million litres per day (Ml/day) of bulk water during the first-phase of steady-state production. A water-balance model developed for the mine calls for the bulk water for the first phase of production to consist of five Ml/day from the Masodi treatment plant, with the balance provided from ground water from local, licenced boreholes, and rainwater collected in storage ponds at the mine.
Photo: Platreef’s long-term wastewater agreement finalized between Dr. Patricia Makhesha, Ivanplats’ Managing Director (left), and Kenneth Maluleke, Mogalakwena Acting Municipality Manager.
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In July 2017, Ivanhoe issued an independent, definitive feasibility study (DFS) for Platreef covering the first phase of production at an initial mining rate of four million tonnes per annum (Mtpa). The DFS estimated that Platreef’s initial, average annual production ratewill be approximately 219,000 ounces of palladium, 214,000 ounces of platinum, 30,000 ounces of gold and 14,000 ounces of rhodium (combined 477,000 ounces of 3PE+Au), plus 21 million pounds of nickel and 13 million pounds of copper.
The Platreef DFS was based on the development of a large, mechanized, underground mine with an initial, four Mtpa concentrator and associated infrastructure. Platreef would rank at the bottom of the cash-cost curve, at an estimated US$351 per ounce of 3PE+Au produced, net of by-products and including sustaining capital costs, and US$326 per ounce before sustaining capital costs.
The thick Flatreef orebody at the Platreef Project is ideal for bulk-scale, mechanized mining. As underground development progresses, the mine plan calls for the addition of large, mechanized mining equipment, such as 14- and 17-tonne load-haul-dump machines and 50-tonne haul trucks to support the planned long-hole mining method.
The mineral resources used as the basis of the Platreef DFS were those amenable to underground selective mining. Detailed information about assay methods and data verification measures used to support the scientific and technical information is set out in the Platreef 2017 Feasibility Study NI 43-101 Technical Report dated September 2017, available under Technical Reports at www.ivanhoemines.com and on Ivanhoe Mines SEDAR profile at www.sedar.com.
Key features of the 2016 Platreef Mineral Resource estimate include:
Indicated Mineral Resources contain an estimated 41.9 million ounces of platinum, palladium, rhodium and gold with an additional 52.8 million ounces of platinum, palladium, rhodium and gold in Inferred Resources (using a cut-off grade of 2.0 g/t 3PE+Au).
Indicated Mineral Resources contain an estimated 2.44 billion pounds of nickel and 1.23 billion pounds of copper, with an additional 3.44 billion pounds of nickel and 1.78 billion pounds of copper in Inferred Mineral Resources (using a cut-off grade of 2.0 g/t 3PE+Au).
Indicated Mineral Resources totalling 346 million tonnes, at an average grade of 3.77 g/t 3PE+Au, 0.32% nickel and 0.16% copper, at a cut-off grade of 2.0 g/t 3PE+Au.
Inferred Mineral Resources totalling an additional 506 million tonnes, at a grade of 3.24 g/t 3PE+Au, 0.31% nickel and 0.16% copper, at a cut-off grade of 2.0 g/t 3PE+Au.
The 2016 Mineral Resource estimate was prepared by Ivanhoe Mines under the direction of Dr. Harry Parker, RM SME, of Wood Group (formerly Amec Foster Wheeler E&C Services Inc.). Dr. Parker and Timothy Kuhl RM SME, also of Wood Group, have independently confirmed the Mineral Resource estimate and are the Qualified Persons for the estimate, which has an effective date of April 22, 2016.
The platinum-to-palladium ratio at the Platreef Mine is approximately 1:1. Palladium and rhodium are used as catalysts to control exhaust emissions in gasoline-fuelled vehicles, while diesel vehicles mostly use platinum. Platinum also is used as the catalyst in zero-emission, hydrogen-powered, fuel-cell electric vehicles now being developed by leading, global automakers including Honda, Toyota, Hyundai, BMW, Mercedes-Benz and Hyundai.
A sustained palladium-supply deficit, coupled with robust demand from automakers, has seen palladium prices increase by approximately 50% during the past four months, making it more valuable than gold for the first time since 2002.
Chart: Palladium’s price increase since August 2018 (in blue) compared to gold (in white).
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Flatreef’s T1 and T2 mineralized zones are 29 metres thick at Shaft 1 intersection
The mineralized zones (reefs) at Ivanhoe’s Platreef Project are the thickest (Platreef’s T2MZ averages 24.7 metres at a 1 g/t 3PE+Au cut-off) among the known reefs in South Africa’s Bushveld Igneous Complex. Although substantially thicker on Ivanhoe’s Platreef Project, Flatreef’s exceptional T1 and T2 reefs have been correlated with the Bushveld Complex’s Bastard and Merensky reefs by Dr. Danie Grobler, Ivanplats’ Head of Exploration and Geology, and other Ivanplats geologists (Grobler et al., published in the international journal, Mineralium Deposita, 2018).
The Turfspruit Cyclic Unit (TCU), which hosts the majority of the Platreef’s selectively mineable Mineral Resources, has two mineralized zones that are laterally continuous across the Platreef Project. The T1 mineralized zone (T1MZ) occurs within cyclical magmatic units and feldspathic pyroxenite (ultramafic igneous rock) immediately below the Main Zone. The T2 mineralized zone (T2MZ) is hosted within a mineralized, PGM-enriched, very coarse-grained pegmatoidal pyroxenite distinct from the feldspathic pyroxenite above it and bound by a top chromite stringer.
The T2MZ occurs at a stratigraphic position similar to the world-renowned Merensky Reef. The T2MZ can be subdivided into an upper pegmatoidal orthopyroxenite, referred to as the T2 Upper, and a lower, less continuous pegmatoidal harzburgite, referred to as the T2 Lower. Recognition of the TCU and the pegmatoidal pyroxenite in 2012 was a key interpretive breakthrough for the Platreef Project.
Shaft 1 intersected the TCU below the Main Zone of the Bushveld Complex in September 2018. The upper T1 mineralized reef was intersected at a depth of 780.11 metres below the shaft bank (Figure 1). Shaft sinking proceeded to intersect the main T2 mineralized reef at a depth of 798 metres, beneath the upper chromitite stringer. The T2 mineralization gradually decreases over a vertical interval of 11 metres to the footwall norite contact at a depth of 809 metres. The total TCU width intersected within the shaft is 28.9 metres.
Photo:Dr. Danie Grobler, Ivanplats’ Head of Exploration and Geology(left), Jan Mapeka, Ivanplats Geologist (centre), and Gerick Mouton, Ivanplats’ Vice President and Project Director (right), at the intersection of the T1 mineralized reef in Shaft 1 at a depth of approximately 780 metres.
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Figure 1: Schematic section of the Platreef Mine, showing Flatreef’s T1 and T2 thick, high-grade mineralized zones (red and dark orange),underground development work completed to date in shafts 1 and 2 (white), and planned development work (gray).
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Figure 2: Flatreef cross section showing T1 and T2 mineralized zones (T1MZ and T2MZ)and the significant top loading of high-grade PGMs mineralization in the T2 mineralized zone.
Photo:Members of the Platreef Project team and its South African sinking contractor, Aveng Mining, in Shaft 1 at its intersection of the 29-metre Flatreef Deposit in September.
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Photo: Platreef’s underground mine development team includes three members from local communities (from left): Nkone Madubana, Learner Sinker; Katlego Nkwana, Learner Sinker; and Caroline Dzivhani, Geologist – who recently became fully certified underground miners.
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The 2016 consolidated Mineral Resources for the Platreef Project are shown in Table 1 (2.0 g/t 3PE+Au base case highlighted; other cases are included to show the sensitivity of the Mineral Resources to changes in cut-off grades).
Table 1: Platreef Mineral Resource – all mineralized zones (2.0 g/t base case).
Indicated Mineral Resources – Tonnage and Grades
Cut-off Grade (3PE+Au)
Mt
Pt (g/t)
Pd (g/t)
Au (g/t)
Rh (g/t)
3PE+Au (g/t)
Cu (%)
Ni (%)
3.0 g/t
204
2.11
2.11
0.34
0.14
4.7
0.18
0.35
2.0 g/t
346
1.68
1.70
0.28
0.11
3.77
0.16
0.32
1.0 g/t
716
1.11
1.16
0.19
0.08
2.55
0.13
0.26
Indicated Mineral Resources – Contained Metal
Cut-off Grade (3PE+Au)
Pt
(Moz)
Pd
(Moz)
Au
(Moz)
Rh
(Moz)
3PE+Au (Moz)
Cu
(Mlbs)
Ni
(Mlbs)
3.0 g/t
13.86
13.86
2.23
0.92
30.86
800
1 597
2.0 g/t
18.66
18.94
3.12
1.23
41.95
1 226
2 438
1.0 g/t
25.63
26.81
4.49
1.82
58.75
2 076
4 108
Inferred Mineral Resources – Tonnage and Grades
Cut-off Grade (3PE+Au)
Mt
Pt (g/t)
Pd (g/t)
Au (g/t)
Rh (g/t)
3PE+Au
(g/t)
Cu (%)
Ni (%)
3.0 g/t
225
1.91
1.93
0.32
0.13
4.29
0.17
0.35
2.0 g/t
506
1.42
1.46
0.26
0.10
3.24
0.16
0.31
1.0 g/t
1431
0.88
0.94
0.17
0.07
2.05
0.13
0.25
Inferred Mineral Resources – Contained Metal
Cut-off Grade (3PE+Au)
Pt
(Moz)
Pd
(Moz)
Au
(Moz)
Rh
(Moz)
3PE+Au
(Moz)
Cu
(Mlbs)
Ni
(Mlbs)
3.0 g/t
13.78
13.96
2.33
0.94
31.01
865
1, 736
2.0 g/t
23.17
23.78
4.26
1.56
52.77
1,775
3, 440
1.0 g/t
40.38
43.01
7.81
3.06
94.27
4,129
7,759
Mineral Resources have an effective date of April 22, 2016. The Qualified Persons for the estimate are Dr. Harry Parker, RM SME, and Timothy Kuhl, RM SME, who are employees of Wood Group (formerly Amec Foster Wheeler E&C Services Inc.) and independent of Ivanhoe. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
The 2 g/t 3PE+Au cut-off is considered the base case estimate and is highlighted. The rows are not additive.
Mineral Resources are reported on a 100% basis. Mineral Resources are stated from approximately -200 m to 650 m elevation (from 500 m to 1,350 m depth). Indicated Mineral Resources are drilled on approximately 100 x 100 m spacing (locally 150 m spacing); Inferred Mineral Resources are drilled on 400 x 400 m (locally to 400 x 200 m and 200 x 200 m) spacing.
Mineral Resources have been estimated on an externally undiluted basis and without consideration for mining recovery. Dilution and mining recoveries will vary with the geometry (dip, thickness, faulting and or irregularities in contacts) of the mineralization and the eventual mining method used.
Reasonable prospects for eventual economic extraction were determined using the following assumptions. Assumed commodity prices are Pt: $1,600/oz, Pd: $815/oz, Au: $1,300/oz, Rh: $1,500/oz, Cu: $3.00/lb and Ni: $8.90/lb. It has been assumed that payable metals would be 82% from a smelter/refinery and that mining costs (average $34.27/t) and process, G&A, and concentrate transport costs (average $15.83/t of mill feed for a 4 Mtpa operation) would be covered. The processing recoveries vary with block grade but typically would be 80%-90% for Pt, Pd and Rh; 70-90% for Au, 60-90% for Cu, and 65-75% for Ni.
3PE+Au = Pt + Pd + Rh + Au.
Totals may not sum due to rounding.
Grab sample assay results for Shaft 1 TCU intersection
Mineralized material from the Flatreef Deposit was extracted during the sinking of Shaft 1 through the TCU mineralized zones and then stockpiled on surface for individual 3.2-metre blasts. A total of 50 grab samples were collected for the T1 and T2 reefs, at surveyed shaft depths ranging from 780.11 to 808.9 metres.
The individual stockpile assay grades from the T1 feldspathic pyroxenite zone vary from 2.47 to 9.65 g/t 4E (platinum, palladium, rhodium and gold), with significant nickel and copper. A composite of individual grab samples for the different T1 stockpiles yielded an average grade of 6.04 g/t 4E and 0.40% nickel plus 0.19% copper (Table 2).
The T2 pegmatoidal pyroxenite composite grab sample assay grades are 6.72 g/t 4E,0.50% nickel and 0.24% copper. The average grade of all of the stockpile grab samples for the T1 and T2 mineralized zones is 6.35 g/t 4E, 0.45% nickel and 0.21% copper (Table 2).
The grab sample results reported above and listed in Table 2 are included for indicative purposes only as they were not subject to Ivanhoe’s normal rigorous internal QA/QC procedures applied to diamond drilling for Mineral Resources estimation. No standards, blanks or duplicates were included in the sample submissions, although internal QC was undertaken by Set Point laboratories (a division of Torre Analytical Services) in Mokopane, South Africa. The sampling methods employed to collect the grab samples, while thorough, are not considered adequate to produce an unbiased grade estimate of either the individual stockpiles or the shaft intersection as a whole. There also is considerable uncertainty as to the amount of cross contamination of each stockpile due to the degree of re-handling of material from shaft bottom to final stockpile position.
Platreef’s shafts 1 and 2 are located in an area of the project’s Indicated Resources that has lower grade and thickness than the adjoining mining areas; it will form part of the shaft pillar − a solid block of rock left around the shafts to protect the shafts and the surface buildings.
Figure 3 below is a grade-thickness plot (3PGE grade [g/t] multiplied by the thickness [m], which gives a metre-grams-per-tonne [mg/t]) of the Platreef Indicated Resources, showing the position of Shaft 1 (identified by the black star in the centre of Figure 3). The blue colours represent the lowest grade thickness, which are clustered around the yellow star marking the location of Shaft 1.
Ivanhoe’s initial mining plan at Platreef will focus on the thick, high-grade Indicated Resources (identified by the brown, orange and red zones) in close proximity to shafts 1 and 2. Drill intercepts in the thick, high-grade zones include hole TMT006, which intersected 90.64 metres (297 feet) with an average grade of 4.51 g/t 4E, plus 0.37% nickel and 0.20% copper. TMT006 was drilled approximately 360 metres south of Shaft 1.
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Figure 3: Grade–thickness plot of the T2 mineralized zone surrounding Shaft 1(yellow star).
Geology and mineralogy of the Shaft 1 Flatreef intersection
The dominant sulphide species in the T1MZ and T2MZ are represented by pentlandite (a nickel-rich sulphide mineral) and chalcopyrite (a copper-rich sulphide mineral), with lesser amounts of pyrrhotite and pyrite (iron sulphide minerals) in both reefs. Sulphide abundance is variable, but visually estimated in the shaft at an average of 5% for the T1MZ and up to 10% in the T2U, with large composite blebs (bubble-like inclusions of one mineral within a larger mineral) very common.
Photo: T1 mineralization within weakly-altered (chloritized) feldspathic pyroxenite at a depth of 784 metres. Sulphide mineralization is pentlandite (nickel sulphide) dominant, with lesser chalcopyrite (copper sulphide), and occurs as interstitial, disseminated to net-textured in the specimen shown.
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Photo: The T2 (Merensky) pegmatoidal orthopyroxenite, with large composite sulphide blebs consisting of pentlandite(nickel sulphide)-chalcopyrite (nickel sulphide)-pyrrhotite(iron sulphide).
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In September 2015, Ivanhoe Mines, Laurentian University (Sudbury, Canada) and the University of Limpopo (Turfloop, South Africa) forged an educational partnership. The principal goal was to develop and equip the University of Limpopo’s geology department to become a centre of excellence in geosciences. Since then, several Limpopo University students commenced postgraduate MSc and PhD studies at Laurentian University. Several of these studies are focused on the Platreef Project.
In April 2018, Ivanhoe geologists, together with Professor Wolfgang Maier, of Cardiff University, published a scientific paper detailing the first stratigraphic system for Ivanhoe’s Flatreef PGE deposit. The paper, titled “Litho- and chemostratigraphy of the Flatreef PGE deposit, northern Bushveld Complex”, was published in the prestigious, international, scientific journal Mineralium Deposita. The paper documents the down-dip and along-strike litho- and chemostratigraphy of the Flatreef Discovery, and its footwall and hanging-wall rocks. Based on stratigraphic, lithological and compositional comparisons to the layered rocks in the western Bushveld Complex, the layered sequence of the Flatreef Discovery, with its chromite-bearing footwall rocks, is unequivocally correlated with the interval between the UG2 chromitite, the Merensky and the Bastard Reef.
Shaft 1’s 750-metre, 850-metre and 950-metre stations will provide lateral underground mining access to the Flatreef orebody
The 750-metre and 850-metres stations on Shaft 1 will provide initial, underground mining access to the high-grade orebody, enabling lateral mine development to proceed during the construction of Shaft 2, which will become the mine’s main production shaft. As shaft-sinking advances, a third shaft station will be developed at a mine-working depth of 950 metres. The mining zones in the current Platreef Mine plan occur at depths ranging from approximately 700 metres to 1,200 metres below surface.
Shaft 1’s 750-metre station also will allow access for the first raise-bore shaft, which will have an internal diameter of six metres, to provide ventilation to the underground workings during the mine’s ramp-up phase.
Photo: Miners on the Shaft 1’s 750-metre level. The 750-metre and 850-metre stations will provide initial, underground access to the high-grade orebody.
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Excavation complete at Shaft 2 surface box cut; construction of concrete hitch (foundation) now underway
Excavation of the Shaft 2 box cut to a depth of approximately 29 metres below surface has been completed and construction now is underway of the concrete hitch (foundation). The hitch will provide the foundation for the 103-metre-tall concrete headgear (headframe) that will house the Shaft 2’s permanent hoisting facilities and support the shaft collar.
Shaft 2, to be located approximately 100 metres northeast of Shaft 1, will have an internal diameter of 10 metres, will be lined with concrete and sunk to a planned, final depth of 1,104 metres below surface. It will be equipped with two 40-tonne rock-hoisting skips with a capacity to hoist a total of six million tonnes of ore per year – the single largest hoisting capacity at any mine in Africa. Headgear for the permanent hoisting facility was designed by South Africa-based Murray & Roberts Cementation.
Photo: Platreef’s Shaft 2 box cut (now completed to a depth of 29 metres)alongside Shaft 1 headframe. Constructionof the concrete hitch (foundation) for Shaft 2 now is underway.
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Development focused on construction of a highly-mechanized underground mine
The Platreef Project is located on the Northern Limb of the Bushveld Complex, adjacent to Anglo Platinum’s Mogalakwena Mine.
The Platreef Project, which contains the Flatreef Deposit, is a tier-one discovery by Ivanhoe Mines geologists. Based on the findings of the July 2017 independent DFS, Ivanhoe plans to develop the Platreef Mine as a major underground mining operation in three phases to achieve: 1) An initial rate of four million tonnes per annum (Mtpa) to establish an operating platform to support future expansions; 2) a doubling of production to eight Mtpa; and 3) expansion to a steady-state 12 Mtpa.
Mining zones in the current Platreef mine plan occur at depths ranging from approximately 700 metres to 1,200 metres below surface. Primary access to the mine will be by way of a 1,104-metre-deep, 10-metre-diameter production shaft (Shaft 2). Secondary access to the mine will be via a 980-metre-deep, 7.25-metre-diameter ventilation shaft (Shaft 1), which is under construction. During mine production, both shafts also will serve as ventilation intakes. Three additional ventilation exhaust raises (Ventilation Raise 1, 2, and 3) are planned to achieve steady-state production.
Mining will be performed using highly productive mechanized methods, including long-hole stoping and drift-and-fill. Each method will utilize cemented backfill for maximum ore extraction.
Table 2:Compositesof grab sample assay results for individual blast stockpiles.
Reef type
Depth
From
Depth
To
4E g/t
Au g/t
Pt g/t
Pd g/t
Rh g/t
Cu %
Ni %
T1
780.0
783.2
2.47
0.43
1.24
0.77
0.07
0.15
0.32
T1
783.2
785.1
3.85
0.49
1.93
1.35
0.09
0.17
0.33
T1
785.1
788.7
8.32
0.67
4.23
3.23
0.19
0.20
0.43
T1
788.7
791.7
9.65
1.14
4.74
3.71
0.13
0.34
0.61
T1
791.7
795.7
5.48
0.48
3.03
1.87
0.11
0.16
0.36
T1
795.7
798.7
6.51
0.36
3.74
2.29
0.13
0.12
0.34
18.7
6.04
0.59
3.15
2.20
0.12
0.19
0.40
T2
798.7
800.4
8.43
0.40
4.34
3.44
0.25
0.27
0.55
T2
800.4
801.3
5.68
0.33
2.72
2.46
0.17
0.22
0.46
T2
801.3
802.2
5.95
0.31
2.92
2.57
0.16
0.21
0.44
T2
802.2
805.6
7.59
0.42
3.78
3.21
0.18
0.26
0.53
T2
805.6
808.9
5.95
0.34
2.78
2.68
0.16
0.26
0.54
10.2
6.72
0.36
3.31
2.87
0.18
0.24
0.50
T1 + T2
28.9
6.35
0.49
3.22
2.51
0.15
0.21
0.45
Qualified person
The scientific and technical information in this news release has been reviewed and approved by Stephen Torr, P.Geo., Ivanhoe Mines’ Vice President, Project Geology and Evaluation, a Qualified Person under the terms of National Instrument (NI) 43-101. Mr. Torr is not independent of Ivanhoe Mines. Mr. Torr has verified the technical data disclosed in this news release.
Detailed information about assay methods and data verification measures used to support the scientific and technical information is set out in the Platreef 2017 Feasibility Study NI 43-101 Technical Report dated September 2017, available under Technical Reports at www.ivanhoemines.com and on Ivanhoe Mines’ SEDAR profile at www.sedar.com.
About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa: the development of new mines at the Kamoa-Kakula copper discovery in the Democratic Republic of Congo (DRC) and the Platreef palladium-platinum-nickel-copper-gold discovery in South Africa; and the extensive redevelopment and upgrading of the historic Kipushi zinc-copper-germanium-silver mine, also in the DRC.
Information contacts
Investors Bill Trenaman +1.604.331.9834
Media North America: Bob Williamson +1.604.512.4856
South Africa: Jeremy Michaels +27.82.772.1122
Forward-looking statements
Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results , performance or achievements of the company, the Platreef Project, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the company’s current expectations regarding future events, performance and results, and speak only as of the date of this news release.
The forward-looking statements and forward-looking information in this news release include without limitation, (i) statements regarding the 29-metre intersection of the Flatreef Deposit at Shaft 1 is expected to contain more than 400 ounces of platinum-group metals (PGMs); (ii) statements regarding Ivanplats expects to begin receiving a small quantity of grey water from the Masodi water treatment plant early next year; (iii) statements regarding the expectation that Shaft 1 will reach its projected, final depth of 980 metres below surface, complete with the stations, in 2020; (iv) statements regarding Ivanhoe’s plans to develop the Platreef Mine as a major underground mining operation in three phases to achieve: 1) An initial rate of four million tonnes per annum (Mtpa) to establish an operating platform to support future expansions; 2) a doubling of production to eight Mtpa; and 3) expansion to a steady-state 12 Mtpa; and (v) statements regarding Platreef would rank at the bottom of the cash-cost curve, at an estimated US$351 per ounce of 3PE+Au produced, net of by-products and including sustaining capital costs, and US$326 per ounce before sustaining capital costs.
In addition, all of the results of the Platreef DFS constitute forward-looking statements and forward-looking information. The forward-looking statements include metal price assumptions, cash flow forecasts, projected capital and operating costs, metal recoveries, mine life and production rates, and the financial results of the Platreef DFS.
Readers are cautioned that actual results may vary from those presented.
All such forward-looking information and statements are based on certain assumptions and analyses made by Ivanhoe Mines’ management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believe are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure, industrial accidents or machinery failure (including of shaft sinking equipment), or delays in the development of infrastructure; and the failure of exploration programs or other studies to deliver anticipated results or results that would justify and support continued studies, development or operations. Other important factors that could cause actual results to differ from these forward-looking statements also include those described under the heading “Risk Factors” in the company’s most recently filed MD&A, as well as in the most recent Annual Information Form filed by Ivanhoe Mines. Readers are cautioned not to place undue reliance on forward-looking information or statements. Certain of the factors and assumptions used to develop the forward-looking information and statements, and certain of the risks that could cause the actual results to differ materially are presented in the “Platreef 2017 Feasibility Study, September 2017” available on SEDAR at www.sedar.comand on the Ivanhoe Mines website at www.ivanhoemines.com.
Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
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