URANIUM | NexGen Announces 64% Increase in Average Annual After-tax Cash Flow in Pre-Feasibility Study, After Tax NPV of $3.7BN, 43% Increase in

VANCOUVERNov. 5, 2018 /PRNewswire/ – NexGen Energy Ltd. (“NexGen” or the “Company”) (TSX:NXE, NYSE:NXE) is pleased to announce the results of an independent Pre-Feasibility Study (“PFS” or the “Study”) and Mineral Resource update of the basement-hosted Arrow Deposit, located on the Company’s 100% owned Rook I project (“Arrow” or the “Project”) in the Athabasca Basin in Saskatchewan, Canada.  The PFS was completed jointly by Wood Group, and Roscoe Postle Associates Inc. (“RPA”), with other technical inputs completed by sub-consultants.

Pre-Feasibility Study Highlights

Table 1 – Summary of Arrow Deposit Pre-Feasibility Study (based on US $50/lb U3O8)

PEA (July 31, 2017)



After-Tax Net Present Value (8% discount)

CAD $3.49 Billion

CAD $3.7 Billion


After-Tax Internal Rate of Return (IRR)



After-Tax Payback

1.1 Years

1.2 Years


Initial Capital Costs (“CAPEX”)

CAD $1.19 Billion

CAD $1.25 Billion


Average Annual Production (Life of Mine)

18.5 M lbs U3O8

25.4 M lbs U3O8


Average Annual Production (Years 1-5)

27.6 M lbs U3O8

29.0 M lbs U3O8


Average Daily Throughput

1,448 tonnes per day

1,039 tonnes per day


Average Annual Grade

1.73% U3O8

3.09% U3O8


Mine Life

15 Years

9 Years

-6 years

Average Annual After -Tax Net Cash Flow
(Life of Mine)

CAD $553 Million

CAD $909 Million


Average Annual Operating Cost (“OPEX”,
Life of Mine)

CAD $8.37

 (US $6.70)/lb U3O8

CAD $ 5.81

 (US $4.36)/lb U3O8


Operating Margins (Life of Mine)




Note: PEA based on CAD $1.00 = US $0.80, PFS based on CAD $1.00 = US $0.75

  1. CAPEX – Increased due to the introduction of Provincial Sales Tax (PST) applicable to capital projects.  Excluding PST, initial capital costs reduced by approximately CAD $64 Million to CAD $1.18 Billion (0.5% lower than PEA). Additionally, due to the reallocation of tailings management to operating costs, the sustaining capital component of capital expenditures has been significantly reduced.
  2. Mine Life – PFS is based on Indicated Resources only and does not include the current additional Inferred Resources 91.70 M lbs of U3O8 contained in 4.84 M tonnes grading 0.86% U3O8 or further potential increases in the resource base at Arrow that remains open in many directions (Figure 1).

Leigh Curyer, Chief Executive Officer, commented: “An assessment across all of the PFS metrics, results in a substantial improvement to the PEA with a 64% increase in average annual after tax net cash flow. Incorporating only the Indicated Mineral Resource, the life of mine drops from 15 to 9 years, yet the increase in average annual grade – whilst maintaining a consistent capex and lower opex – results in an after tax NPV of $3.7BN. In addition, the 43% increase in Indicated Mineral Resource growth during 2017 demonstrates with closer spaced drilling, Arrow improves and optimizes mine production plans.

With these strong PFS results,  the Company is expediting Arrow to Feasibility by initiating a 2 stage 125,000m (10 rig) high density drilling program. This will be the largest drilling, geotechnical and hydrogeological focused program in the history of NexGen. Preparations are well underway with the program brought forward and scheduled to commence in early December 2018.

I would like to take the opportunity to congratulate the entire NexGen team, key consultants, local communities and Government departments for their outstanding commitment and execution of Arrow’s development.”

Conference Call

NexGen will host a conference call today, Monday November 5, 2018 at 11.00 AM Eastern Standard Time.

To join the call please dial (+1) 416 764 8688 (local/international) or (+1) 888 390 0546 (North America toll free) with passcode 49399985 and an operator will assist.

A recorded version of the proceedings will be available on NexGen’s website ( shortly after the conference.  The playback numbers are (+1) 416 764 8677  (local/international) and (+1) 888 390 0541 (North America toll free) and the playback passcode is 399985 #.  The playback will be available until Tuesday, February 05, 2019.

Table 2 – PFS Sensitivity to Uranium Price

Uranium Price ($ USD/lb U3O8)

After-Tax NPV8

After-Tax IRR

After-Tax Cash Pay Back

$80/lb U3O8

CAD $6.62 Billion


0.8 Years

$60/lb U3O8

CAD $4.65 Billion


1.0 Years

$50/lb U3O8

CAD $3.66 Billion


1.2 Years

$40/lb U3O8

CAD $2.67 Billion


1.5 Years

$30/lb U3O8

CAD $1.69 Billion


1.9 Years

$25/lb U3O8

CAD $1.19 Billion


2.3 Years

Key Updates of the 2018 PFS from the 2017 PEA

  • Reduction in CAPEX due to a reduced mine footprint as a result of higher head grades and also the reallocation of the underground tailings to operating costs. If the recently introduced PST is ignored for an apples-to-apples comparison on capital cost estimates from the PEA to the PFS, the PFS capital cost would be even lower.
  • 31% reduction in average annual OPEX to CAD $5.81/lb U3O8(from CAD $8.37/lb U3O8) despite the PFS recategorizing the underground tailings to OPEX instead of sustaining capital as per the PEA. These costs account for 21% of OPEX.
  • 43% increase in Indicated Mineral Resources from 179.5 M lb of U3O8 contained in 1.18 M tonnes grading 6.88% U3O8 from the March 2017 Mineral Resource estimate to 256.6 M lbs of U3O8 contained in 2.89 M tonnes grading 4.03% U3O8.
  • Average Annual Production increase from 18.5 M lbs U308 in the PEA to 25.4M lbs U308 due to higher head grades increasing from 1.73% U308 in the PEA to 3.09 % U3O8 in the PFS.
  • Average mining rate decrease from 1,448 tonnes per day to 1,039 tonnes per day.
  • Metallurgical pilot plant and bench scale testing optimized recovery resulting in increased total processing recovery rate to 97.6% versus 96.0% in the PEA.
  • Metallurgical process was updated resulting in ammonia being eliminated entirely from the process which strengthens the environmental performance of the envisioned Rook I Project.
  • Metallurgical paste-fill test work confirmed proof of concept for uranium tailings to be used for cemented paste backfill underground.
  • Lateral development reduced from 78,805 metres to 39,908 meters due to a reduced mine footprint.
  • Vertical development was reduced from 3,832 in the PEA to 3,059 due to the elimination of a fresh air raise which has been redesigned and combined with the primary production shaft.

Mineral Resources

The Arrow Deposit Mineral Resource estimate was updated, and the Indicated Mineral Resources form the basis for the PFS. The Indicated portion of the resource has increased by 43% from the previous resource estimate (see News Release dated: March 6, 2017).  The updated estimate comprises an Indicated Mineral Resource of 256.6 M lbs of U3O8 contained in 2.89 M tonnes grading 4.03% U3O8, including the A2 High Grade Core of 181.0 M lbs of U3O8 contained in 0.46 M tonnes grading 17.85% U3O8 and an Inferred Mineral Resource of 91.7 M lbs of U3O8 contained in 4.84 M tonnes grading 0.86% U3O8.

The tonnes, grades, and classification of the Mineral Reserves defined in the PFS mine design are summarized below in Table 4.

Table 3 – Arrow Mineral Resource Estimate

March 2017 Arrow Mineral Resource Estimate 

 2018 Arrow Mineral Resource Estimate 

 Diff. Between Arrow 2018 & 2017 Mineral Resource Estimate 


 Tonnage (Tonnes)

 Grade (U3O8%)



(U3O8 lb)

 Tonnage (Tonnes)

 Grade (U3O8%) 

 Metal U3O8 (U3O8 lb)

 Tonnage (Tonnes)

 Grade (U3O8%) 



(U3O8 lb)

 Indicated Mineral Resources 











 A2 HG 











 No Indicated in 2017 







 A3 HG 

 No Indicated in 2017 

















 Inferred Mineral Resources 





















 A2 HG 




















 A3 HG 
























 Combined into A3 & A4 
















CIM Definition Standards were followed for Mineral Resources, Mineral Resources are reported inclusive of Mineral Reserves.


Mineral Resources are reported at a cut-off grade of 0.25% U3O8 based on a long-term price of US$50 per lb U3O8and estimated costs.


A minimum mining width of 1.0 m was used, with a Mineral Resource effective date of May 25th, 2018.


Numbers may not add due to rounding.


Mineral Resources that are not Mineral Reserves do not have demonstrated economics.

Mineral Reserves

The PFS defines Probable Mineral Reserves of 234.1 M lbs of U3O8 contained in 3.43 Mtonnes grading 3.09% U3O8 from the Indicated Mineral Resources. The Probable Mineral Reserves include diluting materials and allowances for losses which may occur when material is mined.

Table 4 – Arrow Probable Mineral Reserves

Probable Mineral Reserves


Tonnage (Tonnes)

Grade (U3O8%)

Metal U3O8 (U3O8 lb)















CIM definitions were followed for Mineral Reserves.


Mineral Reserves are reported with an effective date of May 25, 2018.


Mineral Reserves include transverse and longitudinal stopes, ore development, and incremental ore.


Stopes and ore development were estimated at a cut-off grade of 0.25% U3O8. 


Incremental ore is material between 0.03% U3O8 and 0.25% U3O8 that must be extracted to access mining areas.  0.03% U3O8 is the  limit for what is considered benign waste and material that must be treated and stockpiled in an engineered facility.


No by-product credits have been included in the Mineral Reserve statement.


Mineral Reserves are estimated using a long-term metal price of US$45 per pound U3O8, and a 0.75 US$/C$ exchange rate (C$1.00 = US$0.75). 


A minimum mining width of 3.0 m was applied for all longhole stopes.


The density varies according to the U3O8 grade in the block model.  Waste density is 2.464 t/m3


Numbers may not add due to rounding.

RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource or Mineral Reserve estimates.

Mine Plan and Production Profile

A detailed mine plan based on conventional long-hole stope mining was engineered using Indicated Mineral Resources only. Geotechnical studies during Pre-Feasibility supported the conventional longhole stoping mining method including the use of longitudinal and transverse stopes, 30 m level spacing, and the nominal stope strike length of 15 metres to 30 metres. This represents an excellent stope stability range for underground mining in highly competent conditions. The geometry of the Arrow Deposit enables decoupled production areas in both the A2 and A3, allowing flexibility of mine sequencing. The PFS production profile is underpinned by longhole stopes in the transverse orientation through A2 High Grade mineralization. Arcadis was engaged in the modeling and assessment of radiological effects of underground uranium mining, and they fully endorsed the proposed mining methods and overall plans. The ability to mine transverse longhole stopes through the A2 High Grade will support significant scheduling flexibility enabling NexGen to correlate supply quickly and inexpensively to market conditions.

Furthermore, given the competency and conditions of the underground environment, all waste streams from the process plant are planned to be stored underground.

The PFS mine plan, using a 0.25% U3O8 cut-off grade, includes Probable Mineral Reserves consisting of 234.1 M lbs of U3O8 contained in 3.43 M tonnes grading 3.09% U3O8 that will be extracted by underground mining in an initial nine (9) year mine life.  The mine production schedule envisions a life of mine rate of 1,039 tonnes per day. The underground workings will be accessed by two shafts, the first supporting personnel movements, materials, ore, waste and fresh air. The production shaft will have divided compartments, ensuring that fresh air, and personnel entering the mine, remain isolated from ore being skipped to surface.  The second shaft will be used for exhaust air and secondary egress. Mining extraction is estimated to be 95% of mineralized tonnes for both ore development and stopes. Planned dilution was included in the generation of the stope shapes, and additional backfill dilution (at zero grade) was included where appropriate. Overall rock dilution is estimated to be 31%, with additional backfill dilution applied on secondary stopes only. Figure 3 below presents the annual mining schedule based on set assumptions.

Processing and Underground Tailings Management Facility (“UGTMF”)

The PFS confirmed processing and production of Yellowcake from the Arrow Deposit with conventional processing technology. The main components of the processing plant are:

  • Grinding
  • Leaching
  • Liquid-Solid Separation via Counter Current Decantation
  • Solvent Extraction
  • Yellowcake Precipitation
  • Yellowcake Packaging
  • Paste Tailings Plant

A detailed metallurgical study resulted in process recovery increasing to 97.6% (versus 96% in the PEA). In addition, the ammonia strip process envisioned in the PEA was updated to an acid strip process in the PFS, resulting in the complete elimination of ammonia in the processing facility. Elimination of ammonia from the processing facility will ultimately lead to improved effluent discharge performance.

The Study also confirmed that all processed waste streams can be stored in an Underground Tailings Management Facility (“UGTMF”). The Study also confirmed the geotechnical design, size and sequencing of the UGTMF included in the PFS mine plan. The UGTMF will significantly reduce the surface footprint of the Project and represents continued and ongoing reclamation during operations, allowing for industry leading environmental sensitivity.

PFS test work confirmed paste fill strength meets or exceeds all requirements set in the original design for a potential Paste-Backfill to be used for underground stope stability. The Study confirmed the suitability of the tailings from Arrow Uranium Deposit for use as cemented paste backfill.

NexGen is committed to advancing the Project with innovative approaches to mine design, management and operation in order to deliver enhanced environmental, social and economic performance.

Capital Costs

A capital cost estimate (Class 4 – AACE International classification guidelines) was produced for the PFS. The pre-production CAPEX for the contemplated underground mine, process plant and supporting infrastructure at Arrow are estimated at CAD $1.247 billion with sustaining capital costs of CAD $262 million (including $48 Million for decommissioning). Wood and RPA estimated the capital costs based on a three-dimensional civil model, a mechanical equipment list, material takeoffs, vendor budget quotations on major and secondary equipment, and inputs from leading expert service providers who have experience in construction projects and cost estimation both in the Athabasca Basin and globally. Pre-production construction is envisioned to be complete in three (3) years, the construction phase will be supported by a labour force consisting of skilled labour, trades people, professionals and administration. The Study determined the total personnel hours required for pre-production construction is 3,557,000 hours. The CAPEX is summarized below in Table 5.

Table 5 – Summary of Capital Cost Estimates

PEA 2017

PFS 2018

Capital Cost Estimates ($ CAD Millions)
















Process Plant, Infrastructure & Indirects
























Total Capital Costs








Notes on Variances

  • Mine – Reduced mining extents due to increase in mining head grades as a result using Indicated Resources only.
  • Process Plant, Infrastructure & Indirects -Tailings management costs re-allocated to operating costs.
  • Decommissioning – Higher resolution on decommissioning costs.
  • Contingency – Increased confidence level of cost estimates.

Operating Costs

The OPEX estimate outperformed the PEA and is based on a shaft-accessed underground mine with a conventional longitudinal and transverse long-hole stope mining method, conventional processing facility and underground processed waste management facility. While in operation the PFS defines a required workforce of 491 persons, the expertise required ranges from skilled labour, equipment operators, mining professionals, technical professional, management and administrative. NexGen’s community-first approach ensures opportunities are prioritized within the local region. The OPEX is summarized below in Tables 6 and 8, and the per unit all-in sustaining cost is summarized in Table 7.

Table 6 – Unit Operating Cost Estimates

OPEX Per Pound

PEA $ CAD/lb U308

PFS $ CAD/lb U308




Mineral Processing



General and Administration



Total Operating Costs



Table 7 – PFS All-In Sustaining Cost Estimates (“AISC”)


PFS $ CAD/lb U308

Operating Costs


Revenue Royalties




Reclamation Cost


Sustaining Capital




Table 8 – Per Tonne Operating Cost Estimates

OPEX Per Tonne






Mineral Processing



General and Administration



Total Operating Costs



Future Programs

  • As of September 30, 2018, the Company had $133 million in the treasury which fully funds NexGen for the the upcoming and planned programs.
  • Immediate initiation of a 10 rig diamond drilling 2 stage program of 125,000 m focusing on conversion of Arrow Indicated Mineral Resources to Measured of 70,000 m aimed at conversion of Inferred to Indicated Mineral Resources; and 55,000 m to enable additional optimisation of mine production plans.
  • Continued UGTMF study to optimise tailings density and further reduce tailings volume.
  • The capital costs associated with the process plant and associated infrastructure will now undergo an evaluation to review opportunities for capital cost optimization.
  • Project schedule and timeline are also being reviewed to identify opportunities to advance the development.
  • Automation and electric mining equipment continue to evolve rapidly, and opportunities for inclusion are currently being pursued.
  • Detailed evaluation of alternative energy solutions which will further offset electricity costs and support NexGen’s environmental initiatives.

About NexGen

NexGen is a British Columbia corporation with a focus on the acquisition, exploration and development of Canadian uranium projects. NexGen has a highly experienced team of uranium industry professionals with a successful track record in the discovery of uranium deposits and in developing projects through discovery to production.  NexGen owns a portfolio of prospective uranium exploration assets in the Athabasca Basin, Saskatchewan, Canada, including a 100% interest in Rook I, location of the Arrow Deposit in February 2014, the Bow discovery in March 2015, the Harpoon discovery in August 2016 and the Arrow South discovery in July 2017.

Technical Disclosure

The technical information in this news release with respect to the PFS has been reviewed and approved by Paul O’Hara, P.Eng. of Wood., David Robson, P.Eng., M.B.A., and Jason Cox, P.Eng. of RPA, each of whom is a “qualified person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI-43-101“).

The Mineral Resource Estimate was completed by Mr. Mark Mathisen, C.P.G., Senior Geologist at RPA and Mr. David Ross, P.Geo., Director of Resource Estimation and Principal Geologist at RPA.  Both are independent Qualified Persons in accordance with the requirements of National Instrument (NI) 43-101 and they have approved the disclosure herein. All other technical information in this news release has been approved by Mr. Troy Boisjoli, Geoscientist Licensee, Vice President – Operations & Project Development for NexGen.  Mr. Boisjoli is a qualified person for the purposes of NI 43-101 and has verified the sampling, analytical, and test data underlying the information or opinions contained herein by reviewing original data certificates and monitoring all of the data collection protocols.

A technical report in respect of the PFS will be filed on SEDAR ( and EDGAR ( within 45 days of this news release.

SEC Standards

Estimates of mineralization and other technical information included or referenced in this news release have been prepared in accordance with NI 43-101. The definitions of proven and probable mineral reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. As a result, the reserves reported by the Company in accordance with NI 43-101 may not qualify as “reserves” under SEC standards. In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Additionally, disclosure of “contained pounds” in a resource is permitted disclosure under Canadian securities laws; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measurements. Accordingly, information contained or referenced in this news release containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of United Statesfederal securities laws and the rules and regulations thereunder.

Technical Information

For details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the Mineral Resource please refer to the technical report entitled “Technical Report on the Preliminary Economic Assessment of the Arrow Deposit, Rook 1 Property, Province of Saskatchewan, Canada” dated effective September 1, 2017 (the “Rook 1 Technical Report”) prepared by Jason J. Cox, P.Eng., David M. Robson, P.Eng., M.B.A., Mark B. Mathisen, C.P.G., David A. Ross M.Sc., P.Geo., Val Coetzee, M.Eng., Pr.Eng., and Mark Wittrup, M.Sc., P.Eng.,P.Geo. each of whom is a “qualified person” under NI 43-101. The Rook I Technical Report is available for review under the Company’s profile on SEDAR at A technical report in respect of the PFS will be filed on SEDAR ( and EDGAR ( within 45 days of this news release providing details of the Rook I Project including the quality assurance program and quality control measures applied and key assumptions, parameters and methods used to estimate the Mineral Resource.

Forward-Looking Information

The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof.

Forward-looking information and statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about NexGen’s business and the industry and markets in which it operates. Forward-looking information and statements are made based upon numerous assumptions, including among others, that the proposed transaction will be completed, the results of planned exploration activities are as anticipated, the price of uranium, the cost of planned exploration activities, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment, supplies and governmental and other approvals required to conduct NexGen’s planned exploration activities will be available on reasonable terms and in a timely manner and that general business and economic conditions will not change in a material adverse manner. Although the assumptions made by the Company in providing forward looking information or making forward looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.

Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual results, performances and achievements of NexGen to differ materially from any projections of results, performances and achievements of NexGen expressed or implied by such forward-looking information or statements, including, among others, negative operating cash flow and dependence on third party financing, uncertainty of the availability of additional financing, the risk that pending assay results will not confirm previously announced preliminary results, imprecision of mineral resource estimates, the appeal of alternate sources of energy and sustained low uranium prices, aboriginal title and consultation issues, exploration risks, reliance upon key management and other personnel, deficiencies in the Company’s title to its properties, uninsurable risks, failure to manage conflicts of interest, failure to obtain or maintain required permits and licenses, changes in laws, regulations and policy, competition for resources and financing, and other factors discussed or referred to in the Company’s Annual Information Form dated March 31, 2017 under “Risk Factors”.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.

There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.


View original content to download multimedia:–300743805.html

Base Metals Exclusive Interviews Precious Metals

GROUP TEN METALS | On the Search for Platinum Group Metals in Montana

Michael Rowley, president and CEO of Group Ten Metals sits down with Maurice Jackson of Proven and Probable to discuss his companies exploration for platinum, palladium, nickel, copper and cobalt in the Stillwater area of Montana.  This is part 2 of a 3 part series introduction into the value proposition of the Metallic Group of Companies. Important Note: Enclosed is a Financing Opportunity of Accredited Investors.




Original Source:
Maurice Jackson: Welcome to Proven & Probable. I’m your host, Maurice Jackson. Joining us today is Michael Rowley, president and CEO of Group Ten Metals Inc. (PGE:TSX.V; PGEZF:OTCQB), which is known for platinum, palladium, nickel, copper and cobalt in the Stillwater district in Montana.
This interview is the second of a three-part series introducing the value proposition for the Metallic Group of Companies comprising Metallic Minerals, Group Ten Metals and Granite Creek Copper. These are three separate leading exploration companies, each with a different metal of focus, but with a common approach to business under the proven management of the Metallic Group.

Earlier we interviewed Greg Johnson to talk about Metallic Minerals and its exciting high-grade silver projects in the Yukon. Today we turn our focus to a second company in the Metallic Group, Group Ten Metals, a leading explorer for platinum, palladium, nickel, copper and cobalt in the world-famous Stillwater district in Montana.
Mr. Rowley, for someone new to the story who is Group Ten Metals, what is your flagship project, and what is the thesis you are attempting to prove?
Michael Rowley: Group Ten is a leading explorer for platinum group metals—these include platinum, palladium and rhodium, along with nickel, copper and cobalt.

Our flagship project is the Stillwater West project where we have consolidated a very large land position alongside Sibanye-Stillwater’s three producing mines in the heart of the Stillwater Igneous Complex in Montana. It’s one of the world’s premier platinum and palladium producers and is one of the only platinum group metal producing mines outside of South Africa or Russia.
Geologically, Stillwater is a large, layered, mineral-rich magmatic system, very similar to the Bushveld complex in South Africa, which hosts over 75% of the world’s platinum, as well as enormous quantities of copper, nickel, gold and other metals.
We see the potential for large-scale disseminated and high-sulphide PGE-nickel-copper type deposits similar to the multi-100-million-ounce deposits in the Platreef district of the northern limb of the Bushveld Complex, and we are the first to apply the new geological models from the Platreef district to the Stillwater district, despite these well-known similarities.
In addition to bringing the land position together with a wealth of data, we have also assembled a truly world-class team, to which we recently added one of the most celebrated Platreef geologists, Dr. David Broughton of Ivanhoe.
Maurice Jackson: Please share where in Montana the Stillwater West Project is located, and provide us some historical context.
Michael Rowley: The project is located in south-central Montana where we adjoin the three producing Stillwater mines, which were bought by Sibanye, a South African gold producer, in 2017 for $2.2 billion. The district is famous for the size and grade of its palladium-platinum mines, which are the highest grade in the world, and the largest outside of Africa and Russia with over 14 million ounces of past production, and over 80 million ounces of resources still in the ground. The PGMs occur along with nickel and copper sulphide, so these are also nickel and copper mines.
Historically, the district, including our block of claims, was also mined for high-grade nickel, copper, chrome and other metals such as cobalt.
The history at Stillwater parallels the developments at the Bushveld Complex in South Africa, so they share more than geology in that regard. Both districts were recognized over 100 years ago for their mineral riches, and both supported a number of mines for varying commodities. And, in both districts, the discovery of high-grade “reef-type” platinum group metal deposits in the 1970s produced large-scale operations that were the sole focus of exploration efforts until the 1990s when regulatory changes forced a release of mineral rights to other operators. In Montana, these changes were in the form of amended U.S. claim fees, while in South Africa it was the end of apartheid. In South Africa, the resulting exploration efforts lead to the development of Anglo American’s Mogalakwena Mines, a giant at over 265 Moz PGMs and a very profitable operation that is the largest open-pit platinum mine in the world. Adjacent to that, Ivanhoe is now building the Platreef mine on the same system with over 112 Moz platinum plus substantial nickel and copper values.
We are the first operators to consolidate the lower Stillwater Complex under one owner, to recognize the similarities of the two systems, and to bring a focused exploration program for Platreef-type deposits to the Stillwater complex in Montana.
Maurice Jackson: Group Ten is exploring for platinum, palladium, nickel, copper and cobalt in a world-class district; compare and contrast how your deposits compare to similar districts like South Africa’s Bushveld, and also your neighbors in Montana at Sibanye-Stillwater.
Michael Rowley: The Bushveld and Stillwater complexes are both layered magmatic systems, which means that they were both created when enormous amounts of metal-rich magma cooled, forming these massive districts nearly 3 billion years ago. As a result, both districts have high-grade PGM-Ni-Cu deposits in the upper layers and they also have lower zones where magmas where allowed to mix, creating thick intervals of sulphide mineralization enriched in PGMs.
At Bushveld, two basic types of mines have been developed for these two deposit types: narrow high-grade PGM mines on two reef-type deposits, and more recently bulk mining operations in the Platreef district such as Anglo’s Mogalakwena mines and Ivanhoe’s underground mechanized operation.
At Stillwater the operating mines have focused on narrow, high-grade reef-style deposits. These are the highest grade in the industry, but no systematic effort has been undertaken to explore for and develop Platreef-style mineralization. Group Ten Metals is now exploring in the lower part of the complex for potential large-scale Platreef deposits in the Stillwater district, following the parallels of the same type of settings in South Africa that have produced the Platreef deposits.
Maurice Jackson: Mr. Rowley, we’ve covered some good background on the Stillwater West Project, walk us through the project.
Michael Rowley: Let’s begin with some of our claim holdings in the Stillwater district and some of the existing resources and operations there. As you can see on the Regional Claims Map, Group Ten’s Stillwater West land position, shown in yellow and orange, is a large 25-km-long claim block located directly adjacent to Sibanye’s three operating Stillwater mines (shown in grey). Proximity to the existing mines provides access to infrastructure such as roads from the west and from the northeast.

Maurice Jackson: What can you share with us regarding the geology and the potential that we have at the Stillwater West project?
Michael Rowley: This is a layered magmatic system, and layering is visible in the geologic map of the Stillwater Complex, as it shows the J-M reef deposit—this is the world’s highest-grade major PGE deposit at 16 g/t, and, at 80 Moz, the largest outside of South Africa and Russia.
Looking at the cross-section of the Stillwater Complex shown on the District Geology figure, this layering is clearly visible. Layers of metal-rich magma were laid down at formation, and then the whole system was later tipped up 60 degrees, which is more amenable to both mining and exploration as mineralization starts right at surface.

Like the Bushveld complex in South Africa, narrow reef deposits occur in the middle and upper layered portions of the igneous system, while the lower portion of the complex, shown here in orange, purple and light blue, are the basal layers where magma mixed with pre-existing rock, created large, disseminated and massive sulphide deposits such as those in the Platreef district in South Africa. Though it was previously recognized these areas had significant nickel and copper mineralization, this is the first time the potential for large PGM deposits with nickel and copper have been recognized, and the similarities to the large deposits in South Africa make this a very exciting exploration target for Group Ten.
Maurice Jackson: What can you share with us regarding geophysics?
Michael Rowley: A geophysical survey measuring the electrical conductivity of the rocks was conducted over the entire property. High metal contents in the rocks would make them highly conductive so this survey gives a very good indication of metal sulphide content of the mineralization that hosts the PGMs, copper and nickel. This type of geophysics is one of the main targeting tools used by companies exploring for metal sulphide deposits and maps the PGE-Ni-Cu targets, as shown in the top half of slide 8. The survey results indicate seven very large highly conductive targets across the lower part of the complex (highlighted by large blue ellipses as Platreef-type deposits), and five high-grade reef type targets (highlighted by red ellipses), above the lower part of the complex, where they would be expected.

Surface and drill results confirm that these conductors are mineralized with PGMs, nickel and copper, and that a good relationship exists between conductivity and metal content. However, Group Ten will be the first company to systematically drill test these targets in the basal zone for these types of deposits. The strongest conductive targets have yet to be tested, so these are very exciting priority targets for us.
Note that the main part of the property is over 20 km long, and that these individual targets are 3 to 6 kilometers in length each, large enough individually to contain a deposit the size of Ivanhoe’s or Anglo American’s Platreef deposits!
Maurice Jackson: What do we know about the soil geochemistry?
Michael Rowley: In addition to the geophysics, we have identified very high levels of metals in soils covering an 18-kilometer-long area with high levels of platinum, palladium, nickel and copper. These elevated metals in soils correlate well with the geophysical targets and the shape of the underlying geology. Group Ten’s work in 2018 was the first property-wide effort to target large-scale Platreef-type systems in the lower Stillwater Complex and to see this combination of large scale geochemical and geophysical targets is very rare.

Maurice Jackson: Tell us a bit more about these geologic targets that you have identified.
Michael Rowley: Below is a picture of some of the core from our property showing strong sulphide mineralization with PGE-Ni-Cu-Co values in the lower part of the Stillwater Complex.
We have identified two primary target types: the high-grade “reef-type” type deposits that are being currently mined by Sibanye-Stillwater and the Platreef-type that Group Ten is targeting based on evidence in the data, and geologic parallels with the Bushveld in South Africa.

Maurice Jackson: What do we know about the styles of mineralization in this kind of geologic environment?
Michael Rowley: In terms of mineralization and mineralization type, slide 11 presents and compares reef type and Platreef-type targets. The Reef type deposits are presented in the brown color box and photos, and we’ve taken the Merensky and the J-M Reef as examples, one from Bushveld and one from Stillwater. Very high grade, very narrow thickness. On the right hand side of the slide are some good pictures showing what it’s like to operate in these mines. Merensky happens to be flat lying, and the mines are deep and expensive to operate. It is expected that many of these marginal Merensky mines will close due to their high costs, which should drive platinum prices in the coming years, with continued reduction of supply even as demand for platinum and palladium continue to grow.
The lower picture on the right shows mining of the J-M Reef deposits at Stillwater, at a 60 degree angle that’s more amenable to mining.

The key take-away from this slide is the scale of the Platreef-style deposits shown in the grey box in the lower left of the slide with the picture of Mogalakwena mine. The thicknesses that we see in the mineralization, and the contained metal in these deposits—these are very large and economically attractive bulk mining operations. It’s worth noting that Anglo American’s Platreef Mogalakwena Mines are the largest and most profitable platinum mines in the world. Ivanhoe’s adjoining Platreef Mine is going to be a very high-tech underground bulk mining operation that looks similarly very economically attractive, and that’s potential that we see at Stillwater West.
Maurice Jackson: The Stillwater West is considered a large brownfields exploration property; how is this important in terms of the potential for exploration discovery and development?

Michael Rowley: Brownfields is a term for a property that is in an area that has had past discoveries and/or production. So this in contrast to a greenfields property, which is outside of proven mining areas.
Many people don’t realize that the majority of exploration dollars spent in the mining industry go to exploration around existing mines because it is one of the best places to make new discoveries and to rapidly be developed and produced using existing infrastructure. The adage is “the best place to find a mine is right next to an existing one.”
In this case, at Stillwater, we have consolidated the district alongside three operating mines owned by Stillwater-Sibanye and are exploring in this same highly productive geologic environment, significantly increasing the probability of making new discoveries and potentially allowing for rapid development of low capital deposits because they are near surface and have the benefit of existing roads, power and other infrastructure already in the district.
Maurice Jackson: Group Ten has other assets in its portfolio. Where are these located, and please provide us with some historical background.

Michael Rowley: Following the Metallic Group model of acquiring quality assets in districts during the low parts of the metals price cycle, Group Ten has another PGE nickel copper project in the Kluane belt of the Yukon. This adjoins Nickel Creek Platinum’s Wellgreen project. World-class geology, and excellent potential for scale and grade there. We are seeing good interest in this asset as well but it’s at an earlier stage than the Stillwater asset.

We also have the Black Lake/Drayton gold project, which adjoins First Mining’s Goldlund project and Treasury Metals Goliath project in the Rainy River belt of Ontario. We have several groups looking at this project as it is a 30-kilometer-long belt of productive geology that sits between two multi-million-ounce gold deposits. We’ve consolidated an impressive land position and database during the bear market and this is a very active exploration district.

Maurice Jackson: What work have you done this year, and how do you prioritize them alongside your flagship Stillwater West project?
Michael Rowley: Work programs at Kluane were focused on target refinement with an eye to adding value and assisting some of the parties from whom we have had expressions of interest. Similarly, in Ontario our work has consisted of refining targets and presenting the potential of the project to the groups we have under CA looking at a possible acquisition or partnership.
Maurice Jackson: You are just wrapping up exploration for this season at Stillwater West so when should we expect to see the next results from this year’s work?
Michael Rowley: This was only our first year on the ground at Stillwater and yet, because of the amount of information we have including surface sampling, mapping, drilling and geophysics we have already identified 12 major targets on the property.

In addition, we have re-logged over 11,000 meters of core that is in our possession, some of which was assayed incompletely, or never assayed at all, and certainly never looked at with the bulk tonnage model we are using. Those results, and the new 3D models they will drive, are expected to give us a lot of news flow over the next several months as we detail the information in each of our target zones with the objective to develop and refine the targets for drilling and to focus on those areas that we may be able to rapidly advance towards new resources.
Maurice Jackson: What is management’s philosophy, are you looking to build mines or are you focused on exploration?

Michael Rowley: We are very much focused on the opportunity to make discoveries and to rapidly advance those to resource definition, as shown on slide 13. This stage can be one of the greatest periods for value creation in mining for investors. It’s not uncommon that the value that’s created in that initial discovery and resource development phase may not be exceeded again until these projects actually go into production, often times many years later.
Maurice Jackson: Switching gears, I’ve learned from some of the most respected names in the natural resource space—Rick Rule, Doug Casey, Jayant Bhandari, Mickey Fulp, Bob Moriarty—that the people running the business are equally, if not more important, than the latent material in the ground. Mr. Rowley, please introduce us to your board of directors and management team, and what unique skill sets do they bring to Group Ten Metals?
Michael Rowley: The quality of the Stillwater asset in particular has enabled us to attract a remarkable team. Dr. Craig Bow, who was part of the original discovery at Stillwater, is back leading the team now. Dr. Dave Broughton, of course of Ivanhoe, awarded for the discovery of the Platreef deposit and other world-class mines for Ivanhoe, just recently joined as senior technical advisor. They both are very excited about the potential here, and are experts in this type of deposit. In addition, we have a number of experienced team members who have worked in this region for decades. Its a great group of people to work with. And of course the Metallic Group management team, Greg Johnson, Gregor Hamilton, Bill Harris, myself, all of us veterans are of the industry. The team brings great depth of experience with specialized expertise in PGM and nickel systems.

Maurice Jackson: Tell us about your share structure, options and warrants.

Michael Rowley: It’s early days, we have a market cap of about $8 million, and about 44 million shares outstanding. Key point is we have $3 million of both in the money warrants that are callable and that’s after bringing in about $800,000 worth of those to date.
Maurice Jackson: What is your burn rate?
Michael Rowley: Presently it is about $50,000 per month. That includes our technical team and we do a good job of keeping costs down by sharing office and other back office expenses with the Metallic Group companies.
Maurice Jackson: Do you have institutional investors at this point?
Michael Rowley: We have a couple of mining-focused institutional funds with one out of Europe and one out of Toronto and a great set of high net worth investors.
Maurice Jackson: What is the float?
Michael Rowley: It’s pretty tightly held so probably about 20 million shares, and we turn over about one or two million shares per month.
Maurice Jackson: Mr. Rowley, multilayered question, what is the unanswered question for Group Ten Metals, when should we expect results, and what will determine success?
Michael Rowley: We have a lot to report through coming months as we continue the work to refine the highest priority drill targets for 2019. We have over 11,000 meters of core that has been re-logged and in places re-sampled, we have completed a comprehensive program of surface mapping and sampling and are integrating the drill information along with the surface work and geophysics.
We will be reporting a large number of assay results over coming months from our 2018 programs and are excited to be able to begin 3D modelling of the geophysics and drilling towards developing a predictive 3D geologic model of the lower Stillwater Complex targets.
Maurice Jackson: Mr. Rowley, in the introduction we alluded to the Metallic Group of Companies, please tell more about this.

Michael Rowley: Group Ten Metals is part of a collaboration of leading exploration companies with some common directors between the companies and a similar approach to business. The Metallic Group of Companies includes Metallic Minerals TSX-V: MMG, which is focused on high-grade silver in the Yukon Territory; Group Ten Metals focused on platinum and palladium along with nickel and copper, in the Stillwater District, of Montana; and the newest company to join the group, Granite Creek Copper, as a newly launched copper focused exploration company with an exciting project right next door to a high-grade copper producer in the Carmacks District of the Yukon.
These three companies have each focused on acquiring large blocks of brownfield holdings during the low part of the metal price cycle, adjacent to operating mines with infrastructure and facilities already in place in the districts. All three companies have multiple targets that have potential for major new discoveries, and are focused on large-scale targets that would be of interest to the major mining companies.
We are applying new technologies to the extensive historical data on these projects that allow us to fast-track target development and refinement and drive rapid advancement to the resource delineation stage.
In each of these situations with these operating mines next door, there is an opportunity to be able to fast track development on these targets by utilizing the existing infrastructure in their respective districts. There is also the potential for partnering with those operators or, if we’re successful in discovering very large scale deposits, to see interest by other larger companies.
The Metallic Group of Companies are reducing costs by having a common admin group and CFO, as well as allowing us to have a deeper technical team with some specialists that can be shared across the group.
It’s an exciting group of companies with a common philosophy. Our objective is to build real value for the Metallic Group investors going forward.
Maurice Jackson: Finally, what did I forget to ask?
Michael Rowley: I think that was a very comprehensive overview of Group Ten, and thank you for it. Perhaps in closing, I’d like to touch on a couple of catalysts ahead. On the industry side, we mentioned South Africa and the costs of mining there and the expected closure of a lot of those high-cost platinum mines. It has been a well-established pattern of falling PGM production out of South Africa year-on-year and the CPM Group’s work out of New York indicates that a lot of mine closures are expected soon, in 2019 and 2020. This is going to have a huge effect on platinum prices, because 75% of the world’s PGMs comes out of those reef deposits in South Africa. It’s also worth noting that we have significant nickel, copper and cobalt, which are such important metals for the rapidly growing battery and technology metals space.
We are very bullish on these metals after a seven-year bear market. With most commodity price cycles running four to six years, we believe that the upside opportunity in these metals moving into the next cycle ahead could be very significant.
Lastly, the fact that the Stillwater West project is a U.S.-based project adjoining these world-class, enormous PGM mines in Montana, with all the existing infrastructure in place can allow us to fast track our progress there.
Maurice Jackson: In our first interview, we shared that there was a financing opportunity for accredited investors. Please share the details with us.
Michael Rowley: We recently announced that we are in the process of completing the initial offering for our newly created copper company, Granite Creek Copper.
Maurice Jackson: For someone listening that wants to get more information on Group Ten Metals, the website address is And as a reminder Group Ten Metals trades on the TSX-V:PGE and on the OTCQB:PGEZF. For direct inquiries please contact Chris Ackerman at 604-357-4790 ext. 1 and he may also be reached at
And last but not least please visit our website, where we interview the most respected names in the natural resources space. You may reach us at
Michael Rowley of Group Ten 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.

Want to read more about Base Metals? Sign up to receive the FREE Streetwise Reports’ newsletter.
 Newsletter Sign-Up

1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Proven and Probable disclosures are listed below.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click herefor important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.
Proven and Probable LLC receives financial compensation from its sponsors. The compensation is used is to fund both sponsor-specific activities and general report activities, website, and general and administrative costs. Sponsor-specific activities may include aggregating content and publishing that content on the Proven and Probable website, creating and maintaining company landing pages, interviewing key management, posting a banner/billboard, and/or issuing press releases. The fees also cover the costs for Proven and Probable to publish sector-specific information on our site, and also to create content by interviewing experts in the sector. Monthly sponsorship fees range from $1,000 to $4,000 per month. Proven and Probable LLC does accept stock for payment of sponsorship fees. Sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.
The Information presented in Proven and Probable is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. You should not make any decision, financial, investments, trading or otherwise, based on any of the information presented on this forum without undertaking independent due diligence and consultation with a professional broker or competent financial advisor. You understand that you are using any and all Information available on or through this forum at your own risk.

Precious Metals

JUNIOR MINING | Doug Ramshaw of Minera Alamos

Original Source:
Enclosed is an interview with Doug Ramshaw on the value proposition of Minera Alamos.
We are not affiliated with

Oil & Gas

Oil & GAS | Encana Stacking Up Opportunities in $7.7B Newfield Combination

Encana Corp. has clinched a deal to buy Oklahoma stalwart Newfield Exploration Co. in a stock trade worth an estimated $5.5 billion, as well as assuming $2.2 billion net debt, expanding its four core exploration areas of North America’s onshore to a solid five.
Calgary-based Encana said the deal, announced early Thursday, would add myriad opportunities across Newfield’s 360,000 net acres in two deep regions of the Anadarko Basin better known by their acronyms, the STACK and SCOOP, i.e. the Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties, and the South Central Oklahoma Oil Province.
“This strategic combination advances our strategy and is immediately accretive to our five-year plan,” Encana CEO Doug Suttles said. “Our track record of consistent execution gives us confidence to accelerate and increase shareholder returns…When combined with our cube development model, expected synergies and relentless focus on efficiency, we are positioned to deliver highly efficient growth and quality returns.”
Encana in the past few years has streamlined its efforts to focus on only four areas of Texas and Canada, what it has called the “core four,” within the Permian Basin and Eagle Ford Shale of Texas, and Canada’s Montney and Duvernay formations.
With Newfield, Encana expects oil and condensate production to increase by more than 54%, with proved reserves climbing by around 85%. Newfield’s Oklahoma portfolio also contains more than 6,000 gross risked well locations and about 3 billion boe net of unrisked resources. In addition to the SCOOP/STACK, Newfield has holdings in the Arkoma Basin of Oklahoma, Williston Basin of North Dakota, Uinta Basin of Utah and assets offshore China.
The merger would create North America’s second largest unconventional resources producer, with pro forma 3Q2018 production of 577,000 boe/d, including liquids output of around 300,000 b/d, according to Encana.
“This transaction is the best path forward for our company,” Newfield CEO Lee K. Boothby said. “The combination of the two companies provides our investors with the very attributes that should be differentiated in today’s energy sector — operational scale, proven execution in development of large, liquids-rich onshore resource plays, a peer-leading cost structure and an exceptionally strong balance sheet…
“Throughout our 30-year history, Newfield has worked to create a strong portfolio of assets managed by some of the best and brightest people in the business. The merger will accelerate the development of these assets and as a result, capture full value for our owners.”
Encana estimated annual synergies of $250 million through bigger scale, cube development and overhead savings.
Newfield shareholders would trade each share for 2.6719 Encana common shares, which implies that Encana is paying a 35% premium for Newfield, based on closing stock prices Tuesday.
The deal is expected to be completed by the end of March. Encana shareholders would own about 63.5% of the combined company, with Newfield owning 36.5%. Two Newfield directors also would join the Encana board.
Once completed, Encana plans to raise the dividend by 25% and expand share buybacks to $1.5 billion, funded with free cash flow and cash on hand.
“The Encana-Newfield merger marks another significant transaction in the upstream space, but in our view only represents the tip of the merger and acquisition iceberg that will emerge in 2019,” Tudor, Pickering, Holt & Co. (TPH) analysts said. “Our thesis on this topic is fundamentally grounded in the view that shale has matured and as such companies will look to industry consolidation to gain scalable cost synergies and inventory. All of this is a healthy (and necessary) evolution in the upstream space.”
Analysts said they could “easily think of more than 10 additional deals where there should be a strategic asset rationale or cost synergies that would make sense heading into 2019,” representing more than $38 billion in market cap.
“Newfield is a particularly interesting transaction as the name was trading almost on top of current estimated proved, developed producing (PDP) valuation…From an asset consolidation perspective, the Permian will likely be a hotbed of activity next year,” the TPH team said. “Buckle up, as the upstream merger train has left the station and next year will likely be a wild ride.”
Williams Capital Group LP analyst Gabriele Sorbara estimated the deal is worth $11.26/boe of proved reserves, $37,869/flowing boe/d of production and $7,225/undeveloped acre in the STACK/SCOOP.
Wood Mackenzie senior analyst Roy Martin, who handles corporate upstream, said Encana has made “its boldest move yet,” with the Newfield deal.
“Encana has a long track record of ambitious acquisitions, but the Newfield purchase tops its $7.1 billion Permian purchase of Athlon Energy Inc. in 2014. It also makes Encana one of the top five unconventional producers in North America.”
Under Encana’s “back to winning” strategy that it launched in 2013, the company has been moving away from natural gas and realigning its portfolio toward liquids.
“More than $17 billion in acquisitions, in the Eagle Ford, Permian and now the Midcontinent, have been matched with $11 billion in noncore asset sales since launching this strategy.
“The results have been transformative,” Martin said.
Acquiring one of the Anadarko Basin’s top operators “marks an opportunistic purchase for Encana. It will benefit from acquiring an undervalued company, even based on our conservative modelling view. Encana can also afford it…
“There are significant benefits from becoming a larger North American player with multi-basin exposure,” Martin added. “Against the backdrop of Permian headwinds such as takeaway capacity constraints, cost inflation and geological risks related to parent/child wells, the Midcontinent complements the Eagle Ford as an attractive alternative investment option.”
Encana on Thursday also issued its third quarter results, reporting production across the North American onshore was up 33% from a year ago to 378,300 boe/d. Natural gas volumes climbed 27% to 1.197 Bcf/d, and oil output also increased 27% to 95,500 b/d. Natural gas liquids plant condensate was up 47% to 41,000 b/d, while other liquids output was 73% higher at 42,200 b/d.
Net earnings for 3Q2018 totaled $39 million (4 cents/share), down from year-ago profits of $294 million (30 cents), in part on $241 million in derivatives losses. Total operating expenses were higher from a year ago at $1.14 billion from $865 million, with operating income reversing a year-ago loss to $119 million from minus $4 million. Revenue increased year/year to $1.26 billion from $861 million.

ISSN © 2577-9877 | ISSN © 2158-8023

Base Metals Precious Metals

BOB MORIARTY | Zinc and Lithium in Ireland

Original Source:

Bob Moriarty

Oct 31, 2018
I just got back from an interesting visit to Ireland. From 1975 to 1985 I was working flying small aircraft to new owners all over the world. Gander Newfoundland and Shannon Ireland were natural jumping off points for ferry pilots. The distance between the two via a great circle route is 1922 nautical miles. Give me five minutes and a glance at a wind chart and I could generate a flight plan from memory. I must have flown it 150 times and stayed in Shannon 80-100 times. And after I flew under the Eiffel Tower I was smart enough to continue on to Shannon from Paris.
Forty years ago Ireland was a different world than today. In 1841 the population was over 8.1 million people. It was one of the most densely populated countries in Europe. After the famine from 1845 until about 1850the population was cut in half and has only now grown back up to 4.8 million. All that I saw during the 1970s and 1980s was a land without opportunity. For a century Ireland’s biggest export was its young people. I remember reading something in one of my trips that 47% of the GDP went for cigarettes and booze. It was a land without hope.
I’m not a EU fan. It was ill conceived and I think doomed to failure. However Ireland benefited greatly. While we were driving around the country visiting different projects it seemed the construction industry was booming. The hotels were inexpensive and comfortable. The food was magnificent.
In the 1970s I used to say that in Ireland all you ate were boiled potatoes, boiled meat and boiled carrots. The only way to tell the difference was the color. The carrots were pale yellow and the meat was a dismal gray. Everything tasted exactly the same, carrots, meat and potato. It was dismal then but dismal no more.
Lithium was popular in early 2018 after a short rally from December of 2017 until February of 2018. Redzone Resources soared from $.20 in early December to $.75 a share in January. Redzone with 23 million shares was doing very well. A lack of news and a dull stock market for resources has brought the share price back to as low as $.10 recently even in the face ofgood exploration progress.
I talked to Redzone management and learned they were announcing an option on a major lithium project in Ireland. Since I was traveling to the country to see a young and upcoming zinc company I managed to fit in visits to both companies during the same week.
On October 23rd Redzone announced an option for up to 90% of a highly potential lithium property in Ireland. What they call the North West Leinster lithium project is not really a Plan B for the company. An extraordinary opportunity jumped up and company president Michael Murphy jumped on it. Ireland has an interesting and long history with lithium.
I visited the project with Wilson Robb last week. A year ago he had been chatting with someone at the geological survey for Ireland and casually asked if anything interesting had opened up. And the North West Leinster Lithium project literally fell into his hands for the cost of two years property payments. He looked around the industry for a good junior to vend the property into and discovered Redzone. The deal makes a lot of sense. All of the money goes into the ground and REZ can earn up to 90%.
The option requires REZ to spend 1 million Euros within two years to earn 51% of the property. They can earn a further 24% by spending another 2 million Euros within five years. And the last 15% requires a PEA from Redzone and a cash/stock payment to the vendor of 500,000 Euros.
A Chinese lithium producer named Ganfeng Lithium has been in a JV with a Canadian junior named International Lithium on a project just to the Southeast of the North West Leinster property. Ganfeng Lithium has agreed to spend $10 million to earn 79% of ILC’s Avalonia project. ILC has two drills turning on the project and has intersections of up to 2.23% Li2O over 23 meters. That is a home run intercept.
The Irish government seems to be highly mining friendly and has conducted various regional geological studies over the years and made the information freely available. Clearly the potential as shown in the government surveys suggests the North West Leinster project to have even more potential than the ILC Avalonia project. So Redzone is picking up an option on a superior lithium project over a Chinese lithium producer funded project and doing so at 1/3 of the price.
With Redzone share price in the dumps but still with almost $1 million in the kitty, I suggested to Michael Murphy that he start drilling off his Arizona project but conduct the basic groundwork in Ireland prior to drilling as soon as possible. If you like lithium, you should be looking at Redzone. They are now a two-pronged fork.
The second company I visited last week in Ireland is named Group Eleven Resources (ZNG-V). I’m not a big fan of the name but I am a big fan of both the commodity and the company. Group Eleven is a zinc company and zinc is both in short-term and long-term shortage. Mines are being shut down and the industry realized years ago that we need to be opening new zinc mines as old mines become deleted.
Bart Jaworski is the tactical genius behind Group Eleven. He saw the dismal state of the resource markets back in 2015 and realized that even the majors were dumping projects in order to clean up their balance sheets. He wanted to rationalize zinc production in Ireland and succeeded. He put together a giant package of three major projects any of which would be considers as having company making potential. The majors were literally giving projects away.
He was smart enough to convince Mag Silver to back him politically and financially and managed a major coup in putting the three properties together. We visited all three last week.
Normally I believe I can do a better job at communication than the companies I deal with. I don’t care if they are poor at communication as long as they are good at either exploration or mining but in the case of Group Eleven I want anyone interested in zinc to visit the site and spend a lot of time there. The site is wonderful and covers everything about zinc and their company.
Glencore Plc. has a major zinc property in Ireland they call Pallas Green near Group Eleven’s Stonepark zinc property. Glencore has 145,000 employees and does $200 billion a year in turnover. Mining is a tiny part of the Glencore stable yet the company has almost a 44 million ton resource at Pallas Green with two drills turning now. They have had as many as eight rigs working. It’s a major project of them.
Group Eleven’s Stonepark is higher grade and closer to the surface. There is no way Glencore is going to start a mine at Pallas Green without doing a deal with Group Eleven. Stonepark is a JV with a local Irish company eager to move the project forward. They are fully funded for this year’s exploration program and will have drill results coming out for months.
The second major project for ZNG is Ballinalack made up of a 60% interest for Group Eleven and 40% for a Chinese company with a name so meaningless to western readers that I wouldn’t write it. The Chinese company is one of the largest zinc producers in China and needs more feed.
The last but not least project for ZNG is their Silvermines project that is not a silver property, it’s a lead, zinc property but located near a historic silver mine from the 17th century. It is 100% owned by Group Eleven. Exploration on the project was primitive and in the case of all three major projects, modern exploration should be far more effective.
I’m a giant fan of both Redzone and Group Eleven. Redzone still has $900,000 in the bank. Group Eleven is well cashed up with $3.5 million in the till.
We need a lot more lithium and while lithium companies abound, most are flogging dead horses. Redzone has a past producing mine in Arizona and a wonderful project in Ireland next to another lower grade project that a lithium producer has made a $10 million work commitment to. Group Eleven has brilliant management and their technical team is second to none in Ireland. I love both companies.
Redzone and Group Eleven are both advertisers. I have bought shares in the open market for both companies. As a shareholder naturally I am biased. Do your own due diligence.
Redzone Resources
REZ-V $0.13 (Oct 30, 2018)
REZZF-OTCBB 23.4 million shares
Redzone Resources website
Group Eleven Resources
ZNG-V $0.14 (Oct 30, 2018)
GRLVF-OTCQB 59.8 million shares
Group Eleven Resources website
Bob Moriarty
President: 321gold

321gold Ltd


Precious Metals

JUNIOR MINING | Columbus Gold Continues Moving Forward on the Permitting Process for the Montagne d’Or Gold Project in French Guiana

VANCOUVER, British Columbia, Nov. 01, 2018 (GLOBE NEWSWIRE) — Columbus Gold Corp. (CGT: TSX, CGTFF: OTCQX) (“Columbus”) is pleased to provide a permitting update for the Montagne d’Or gold mine project located in French Guiana, France.

In September 2018, the French National Commission of Public Debate (the “CNDP”) published a report (the “Report”) on the public hearings carried-out for the Montagne d’Or gold project, which concluded in the summer of 2018 (news release dated August 7, 2018). The hearings and the Report were successfully completed over a 5-month period as scheduled.

The Report consolidates the feedback gathered from 14 public meetings, which attracted approximately 1,500 participants, and an online platform that had 5,928 visits and generated 232 opinions, 211 questions, 184 comments, and 39 contributions.

The Report recommends that the Montagne d’Or joint venture (Columbus 44.99% and Nordgold 55.01%) consider the following in order to pursue development of the Montagne d’Or project:

  • Do not underestimate cultural values;
  • Improve transparency;
  • Be more precise on the definition of risk management measures;
  • Test wherever possible, several options on sensitive elements of the project;
  • Take into consideration recommendations of the French Geological and Mining Research Bureau (BRGM);
  • Prioritize options that minimize risks and impacts, to help ensure that Montagne d’Or will be a responsible mining operation.

Pursuant to the procedures established by the CNDP, the Montagne d’Or joint venture has until December 7, 2018 to declare in the Journal Officiel (a government publication) if it intends to proceed with permit applications to develop the Montagne d’Or gold project; taking into account the CNDP’s above recommendations, and any modifications to the development plan resulting thereunder.

In addition, in July 2018 the French government formed a committee to assess the social and economic benefits, and the impacts, of the development of the gold mining industry in French Guiana, taking into consideration in particular Montagne d’Or, the most advanced large gold project in French Guiana.  The committee is a joint ministerial task-force under the direction of the French Ministers of Environment, of Economy and Finance, and of Overseas Territories.  Columbus and the Montagne d’Or joint venture are working closely with this task-force, which is expected to deliver its conclusions in a report to the relevant ministers in December 2018.


Columbus is French Guiana’s leading gold exploration and development company.  Columbus holds a major interest in the world-class Montagne d’Or gold deposit.  A feasibility study for Montagne d’Or was filed in May 2017, and the permitting process is currently underway.  Columbus is also earning into the Maripa gold exploration project where past drilling has returned excellent near surface results, including 36 meters of 4.3 g/t gold.


Robert F. Giustra

For more information contact:

Investor Relations
(604) 634-0970 or

Certain statements and information contained in this press release constitute “forward-looking statements” within the meaning of applicable U.S. securities laws and “forward-looking information” within the meaning of applicable Canadian securities laws, which are referred to collectively as “forward-looking statements”. The United States Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. Forward-looking statements are statements and information regarding possible events, conditions or results of operations that are based upon assumptions about future economic conditions and courses of action. All statements and information other than statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as “seek”, “expect”, “anticipate”, “budget”, “plan”, “estimate”, “continue”, “forecast”, “intend”, “believe”, “predict”, “potential”, “target”, “may”, “could”, “would”, “might”, “will” and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.  Forward-looking statements in this and other press releases include but are not limited to statements and information regarding: its plans, or modifications thereunder, to develop Montagne d’Or ; the construction and development plans for the Montagne d’Or gold mine, including anticipated timing thereof; the satisfaction of additional requirements to the construction of the Montagne d’Or gold mine, including but not limited to, the submission and processing of mine permit applications; the delivery of a concluding report from the French joint ministerial task-force for Montagne d’Or; and the earning into of the Maripa gold exploration project.  Such forward-looking statements are based on a number of material factors and assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on forward-looking statements contained in this press release. Some of the known risks and other factors which could cause actual results to differ materially from those expressed in the forward-looking statements are described in the sections entitled “Risk Factors” in the Annual Information Form of Columbus Gold Corp., available on SEDAR under Columbus’ profile at  Actual results and future events could differ materially from those anticipated in such statements. Columbus undertakes no obligation to update or revise any forward-looking statements included in this press release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.


Capitalism & Morality 2019

Saturday, 3rd August 2019

7:30 to 7:55 am: Registration and coffee
7:55 to 8 am: Introduction by Jayant Bhandari
8 to 9 am: “South Africa: The Reality Obscuring the Ideal,” by Simon Roche
9 to 9:30 am: “Changing Culture of the Youth in the West,” by Prof. Ian Plimer
9:30 to 10 am: Coffee
10 to 10:40 am: TBA
10:40 to 11 am: “Things that Annoy a Grumpy Old Libertarian,” by Adrian Day
11 to 11:40 am: “Open Borders?,” a debate between Rakesh Wadhwa and Frank Raymond; moderated by Albert Lu
11:40 to 12:50 pm: Lunch
12:50 to 2:20 pm: “Prejudice, Discrimination, Racism and ‘the West vs. the Rest’,” a discussion between Doug CaseyRick Rule, and Jayant Bhandari; moderated by Albert Lu
2:20 to 2:50 pm: Coffee
2:50 to 3:30 pm: “Kidnapping the Goddess of Eris,” by Rick Rule
3:30 to 4 pm: “The Virtue of Selfishness,” by Mary Lou Gutscher
4 to 4:20 pm: “Are You a Libertarian?” by Rajni Bala
4:20 to 4:40 pm: “The Effect of Mexican Immigration into the US,” by Jorge Ramiro Monroy
4:40 to 4:50 pm: Break
4:50 to 5:20 pm: “The World without the USA,” by Jayant Bhandari
5:20 to 6:00 pm: “The Characters of My Novels, and the Archetypes They Represent,” by Doug Casey
Event Rooms 1300-1500
Segal Graduate School of Business
500 Granville Street
Vancouver, BC, Canada V6C 1W6
(This is an independent event, not affiliated with the School)
Jayant Bhandari
Price (until 15th November 2018):
C$117 for individuals; C$80 for those from the media; C$80 for those under 25 year old.

(For discounted price, please contact us for a link to register)
Other Events: There will be organized dinners on 2nd & 3rd August 2019. Also, there will be a picnic in the morning of 4th August 2019. These events will be charged separately.
Refund Policy: You can ask for a full refund (minus any transaction fee) until 1st July 2019. Thereafter a 25% deduction applies. No refund will be made for cancellation after 15th July. We are happy to change the name of the participant if you want someone else to take your place. Price of the ticket increases significantly as we get closer to the date of the event.
Linked here are video recordings of earlier year seminars.

Energy Oil & Gas

ENERGY AND GOLD | This Oil Junior Is About To Tap Into Its Hidden Gem

Micro-cap oil explorer/producer Jericho Oil (TSX-V:JCO, OTC: JROOF) has spent the last three years assembling an impressive package of oil producing assets in Oklahoma. Jericho boasts a portfolio consisting of ~55,000 net acres in one of the hottest basins in the United States, including an interest in ~16,000 net acres in the STACK Play, one of the world’s top resource plays for horizontal development. While Jericho’s portfolio churns out nearly 1,000 barrels/day of oil production it’s the potential for growth through exploration where the real upside for Jericho shareholders exists.
In 2018 Jericho has been exploring more aggressively on its properties including drilling 3 STACK wells. Recently Jericho has begun talking about what it calls its “hidden gem”; Jericho’s “Osage Extension” play in northeast Oklahoma has company management very excited about the next few months. The Osage Extension is listed 3rd in Jericho’s “playbook” (its list of assets), however, this hidden gem could deliver substantial upside. Jericho has been studying the Osage Extension from a geological standpoint for many months and they are finally ready to drill it. Because the holes in the Osage Extension are shallower it will be cheaper to drill (sub-$3 million) than the STACK wells that Jericho has already completed this year.
Jericho feels that there is at least as much upside on its Osage Extension play and they will be tapping into this upside for roughly ½ the drilling cost of the STACK. The market has been focusing on Jericho’s STACK property package for much of 2018 and I believe most investors have forgotten about this hidden gem in the Osage Extension – it’s not something that Jericho has talked about a lot (because they were working to get a better understanding of it) and it’s not something which Jericho gives itself much reserve value for. That could change drastically over the next several months after Jericho begins drilling its hidden gem by the end of November.
The way to build a big oil company is through drilling and production growth. After spending 2 ½ years building a valuable portfolio of oil assets in Oklahoma (when oil prices were much lower than today’s US$67/barrel), Jericho is committed to unleashing the potential that these assets hold. JCO has begun to tap into this potential with its STACK wells and now the Osage Extension is next.
Jericho shares have strong support in the C$.50-$.55 area which roughly correlates to a US$50 million market cap (JCO has 128.6 million shares outstanding [~46% held by insiders]):
JCO.V (Daily)
As Jericho progresses with its growth plans I expect to see a move back up to the next area of resistance near C$.75 (almost 50% above current levels) followed by a rally back to all-time highs (C$1.38) reached earlier this year after Jericho announced initial results from its first STACK well.
The market loves exploration news, especially exploration news that indicates production growth. Jericho’s hidden gem might be about to deliver just what the market wants. Shrewd investors have the opportunity to use the recent market weakness which has resulted from a tumultuous broader market environment to pick up Jericho shares at support just before Jericho begins drilling its hidden gem.

The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Jericho Oil Corp. is a high-risk venture stock and not suitable for most investors.. Consult Jericho Oil Corp’s SEDAR profile for important risk disclosures.
EnergyandGold has been compensated to cover Jericho Oil Corp. and so some information may be biased., EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or 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 such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on for important risk disclosures. It’s your money and your responsibility.
admin | October 31, 2018 at 12:56 pm | Tags: JCO.VJericho OiloilOklahoma | Categories:Jericho Oiloiloil stocksOklahoma | URL:
Base Metals Energy

URANIUM | Denison Announces Filing of Technical Report for Wheeler River PFS

TORONTOOct. 30, 2018 /PRNewswire/ – Denison Mines Corp. (“Denison” or the “Company”) (DML: TSX, DNN: NYSE MKT) today announces that it filed a technical report under Canadian Securities Administrators’ National Instrument 43-101 Standard of Disclosure for Mineral Projects for its 90% owned Wheeler River Project in Saskatchewantitled “Pre-feasibility Study for the Wheeler River Uranium Project, Saskatchewan, Canada” dated October 30, 2018 with an effective date of September 24, 2018.

View PDF version.

The technical report is posted on the Company’s website at and is available under its profile on SEDAR at and on EDGAR at  This report supports the disclosure made by the Company in its news release dated September 24, 2018 (the “News Release”) and there are no material differences contained in the technical report from the information previously disclosed in the News Release.

As outlined in the News Release, the PFS considers the potential economic merit of co-developing the Phoenix and Gryphon deposits.  The high-grade Phoenix deposit is designed as an In-Situ Recovery (“ISR”) mining operation, with associated processing to a finished product occurring at a plant to be built on site at Wheeler River.  The Gryphon deposit is designed as an underground mining operation, utilizing a conventional long hole mining approach with processing of mine production assumed at Denison’s 22.5% owned McClean Lake mill.

Taken together, the project is estimated to have mine production of 109.4 million pounds U3O8 over a 14-year mine life, with a base case pre-tax Net Present Value (“NPV”) of $1.31 billion (8% discount rate), Internal Rate of Return (“IRR”) of 38.7%, and initial pre-production capital expenditures of $322.5 million. The base-case economic analysis assumes uranium sales are made at UxC Consulting Company, LLC’s (“UxC”) annual estimated spot price for mine production from the Phoenix deposit (from ~US$29/lb U3O8to US$45/lb U3O8), and a fixed price for mine production from the Gryphon deposit (US$50/lb U3O8).

Using the same price assumed for the project’s 2016 Preliminary Economic Assessment (“2016 PEA”), a fixed uranium price of US$44/lb U3O8 (“PEA Reference Case”), the PFS produces a combined pre-tax project NPV of $1.41 billion – representing roughly 275% of the $513 million pre-tax project NPV estimated in the 2016 PEA.

Pre-Feasibility Study Highlights

  • Phoenix delivers exceptional operating costs and manageable initial capex with ISR

Mine life

10 years (6.0 million lbs U3O8 per year on average)

Probable reserves(1)

59.7 million lbs U3O8 (141,000 tonnes at 19.1% U3O8)

Average cash operating costs

$4.33 (US$3.33) per lb U3O8

Initial capital costs

$322.5 million

Base case pre-tax IRR(2)


Base case pre-tax NPV8%(2)

$930.4 million

Base case price assumption

UxC spot price(3) (from ~US$29 to US$45/lb U3O8)

Operating profit margin(4)

89.0% at US$29/lb U3O8

All-in cost(5)

$11.57 (US$8.90) per lb U3O8


See below for additional information regarding Probable reserves;


NPV and IRR are calculated to the start of pre-production activities for the Phoenix operation in 2021;


Spot price forecast is based on “Composite Midpoint” scenario from UxC’s Q3’2018 Uranium Market Outlook (“UMO”) and is stated in constant (not-inflated) dollars;


Operating profit margin is calculated as uranium revenue less operating costs, divided by uranium revenue.  Operating costs exclude all royalties, surcharges and income taxes;


All-in cost is estimated on a pre-tax basis and includes all project operating costs and capital costs, divided by the estimated number of pounds U3O8 to be produced.

  • Gryphon leverages existing infrastructure and provides additional low-cost production

Mine life

6.5 years (7.6 million lbs U3O8 per year on average)

Probable reserves(1)

49.7M lbs U3O8 (1,257,000 tonnes at 1.8% U3O8)

Average cash operating costs

$15.21 (US$11.70) per lb U3O8

Initial capital costs

$623.1 million

Base case pre-tax IRR(2)


Base case pre-tax NPV8%(2)

$560.6 million

Base case price assumption

US$50 per pound U3O8

Operating profit margin(3)

77.0% at US$50/lb U3O8

All-in cost(4)

$29.67 (US$22.82) per lb U3O8


See below for additional information regarding Probable reserves;


NPV and IRR are calculated to the start of pre-production activities for the Gryphon operation in 2026;


Operating profit margin is calculated as uranium revenue less operating costs, divided by uranium revenue.  Operating costs exclude all royalties, surcharges and income taxes; 


All-in cost is estimated on a pre-tax basis and includes all project operating costs and capital costs, divided by the estimated number of pounds U3O8 to be produced.

  • Selection of ISR mining method for high-grade Phoenix deposit – Following the completion of the 2016 PEA, the Company evaluated 32 alternate mining methods to replace the high-cost Jet Bore Mining System (“JBS”) assumed for the Phoenix deposit in the 2016 PEA. The suitability of ISR mining for Phoenix has been confirmed by significant work completed in the field and laboratory – including drill hole injection, permeability, metallurgical leach, agitation, and column tests. Results demonstrate high rates of recovery in both extraction (+90%) and processing (98.5%) following a simplified flow sheet that precipitates uranium directly from the uranium bearing solution (“UBS”), without the added costs associated with ion exchange or solvent extraction circuits.
  • Novel application of established mining technologies – Given the unique geological setting of the Phoenix deposit, straddling the sub-Athabasca unconformity in permeable ground, the project development team has combined the use of existing and proven technologies from ISR mining, ground freezing, and horizontal directional drilling to create an innovative model for in situ uranium extraction in the AthabascaBasin. While each of the technologies are well established, the combination of technologies results in a novel mining approach applicable only to deposits occurring in a similar geological setting to Phoenix – which now represents the first deposit identified for ISR mining in the Athabasca Basin.
  • Environmental advantages of ISR mining at Phoenix – The Company’s evaluation of the ISR mining method for Phoenix has also identified several significant environmental and permitting advantages, namely the absence of tailings generation, the potential for no water discharge to surface water bodies, and the potential to use the existing Provincial power grid to operate on a near zero carbon emissions basis. In addition, the use of a freeze wall, to encapsulate the ore zone and contain the mining solution used in an ISR operation, eliminates common environmental concerns associated with ISR mining and facilitates a controlled reclamation of the site. Taken together, the Phoenix operation has the potential to be one of the most environmentally friendly mining operations in the world. Owing largely to these benefits, consultation with regulatory agencies and stakeholder communities, to date, has been encouraging regarding the use of ISR mining.

The PFS has been completed in accordance with NI 43-101, Canadian Institute of Mining, Milling and Petroleum (CIM) standards and best practices, as well as other standards such as the AACE Cost Estimation Standards.

Wheeler River Project

The Wheeler River project is the largest undeveloped uranium project in the eastern portion of the Athabasca Basin region in northern Saskatchewan, Canada.  The project is situated in close proximity to important regional infrastructure, including the Provincial electrical transmission grid and an all-season Provincial highway.  Since Denison became the operator of the project in 2004, two high-grade uranium deposits have been discovered and now account for combined Mineral Reserves and Mineral Resources (100% Basis) as follows:

  • Probable Mineral Reserves of 109.4 million pounds U3O8





Lbs U3O8





59.7 million





49.7 million





109.4 million



Reserve statement is as of September 24, 2018;


CIM definitions (2014) were followed for classification of mineral reserves;


Mineral reserves for the Phoenix deposit are reported at the mineral resource cut-off grade of 0.8% U3O8. The mineral reserves are based on the block model generated for the May 28, 2014 mineral resource estimate. A mining recovery factor of 85% has been applied to the mineral resource above the cut-off grade;


Mineral reserves for the Gryphon deposit are estimated at a cut-off grade of 0.58% U3O8 using a long-term uranium price of USD$40/lb, and a USD$/CAD$ exchange rate of 0.80.  The mineral reserves are based on the block model generated for the January 30, 2018 mineral resource estimate.  The cut-off grade is based on an operating cost of CAD$574/tonne, milling recovery of 97%, and 7.25% fee for Saskatchewan royalties; 


Mineral reserves include diluting material and mining losses;


Mineral reserves are stated at a processing plant feed reference point;


Numbers may not add due to rounding.

  • Indicated Mineral Resources (inclusive of Reserves) of 132.1 million pounds U3O8 (1,809,000 tonnes at an average grade of 3.3% U3O8); plus
  • Inferred Mineral Resources of 3.0 million pounds U3O8 (82,000 tonnes at an average grade of 1.7% U3O8).

The PFS does not include any economic analysis based on estimated Inferred Mineral Resources.

The project is a joint venture between Denison (90% and operator) and JCU (Canada) Exploration Company Limited (“JCU”) (10%).

Qualified Persons

The disclosure of the results of the PFS contained in this news release, including the mineral reserves, was reviewed and approved by Peter Longo, P. Eng, MBA, PMP, Denison’s Vice-President, Project Development, who is a Qualified Person in accordance with the requirements of NI 43-101.

The disclosure of a scientific or technical nature regarding the Phoenix and Gryphon deposits, including the mineral resources, contained in this news release was reviewed and approved by Dale Verran, MSc, P.Geo., Pr.Sci.Nat., Denison’s Vice President, Exploration, who is a Qualified Person in accordance with the requirements of NI 43-101.

For a description of the data verification, assay procedures and the quality assurance program and quality control measures applied by Denison, please see Denison’s Annual Information Form dated March 27, 2018 filed under the Company’s profile on SEDAR at

About Denison

Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. In addition to its 90.0% owned Wheeler River project, which ranks as the largest undeveloped high-grade uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, Denison’s Athabasca Basin exploration portfolio consists of numerous projects covering approximately 320,000 hectares. Denison’s interests in the Athabasca Basin also include a 22.5% ownership interest in the McClean Lake joint venture (“MLJV”), which includes several uranium deposits and the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest and Midwest A deposits, and a 65.45% interest in the J Zone deposit and Huskie discovery on the Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie are located within 20 kilometres of the McClean Lake mill.

Denison is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and is the manager of Uranium Participation Corp., a publicly traded company which invests in uranium oxide and uranium hexafluoride.

Cautionary Statement Regarding Forward-Looking Statements

Certain information contained in this press release constitutes “forward-looking information”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation concerning the business, operations and financial performance and condition of Denison.

Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”, or the negatives and / or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. In particular, this press release contains forward-looking information pertaining to the results of, and estimates, assumptions and projections provided in, the PFS, including future development methods and plans, market prices, costs and capital expenditures; the Company’s current plans with respect to the commencement and completion of an EA and feasibility study on the project; assumptions regarding Denison’s ability to obtain all necessary regulatory approvals to commence development; Denison’s percentage interest in its projects and its agreements with its joint venture partners; and the availability of services to be provided by third parties. Statements relating to “mineral resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral resources described can be profitably produced in the future. 

Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Denison to be materially different from those expressed or implied by such forward-looking statements. Denison faces certain risks, including the inability to permit or develop the project as currently planned, the unpredictability of market prices, the use of mining methods which are novel and untested in the AthabascaBasin, events that could materially increase costs, changes in the regulatory environment governing the project lands, and unanticipated claims against title and rights to the project. Denison believes that the expectations reflected in this forward-looking information are reasonable but there can be no assurance that such statements will prove to be accurate and may differ materially from those anticipated in this forward looking information. For a discussion in respect of risks and other factors that could influence forward-looking events, please refer to the “Risk Factors” in Denison’s Annual Information Form dated March 27, 2018 available under its profile at and its Form 40-F available at These factors are not, and should not be construed as being exhaustive.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Any forward-looking information and the assumptions made with respect thereto speaks only as of the date of this press release. Denison does not undertake any obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in its expectations except as otherwise required by applicable legislation.


View original content to download multimedia:

Precious Metals

JUNIOR MINING | Irving Resources Receives Mining Permit at its Omu Gold-Silver Project, Hokkaido, Japan

October 30, 2018
Vancouver, British Columbia, October 30, 2018 (Globe Newswire) – Irving Resources Inc. (CSE:IRV) (“Irving” or the “Company”) is pleased to announce it has received approval from the Ministry of Economy, Trade and Industry (“METI”) of its Omui Mine Plan covering mining and exploration related activities at its Omui Mining License (“Omui”). Omui is part of Irving’s 100% controlled Omu gold-silver project, Hokkaido, Japan.
Approval of this Omui Mine Plan is a very important step and allows Irving to bulk sample and ship the material offsite, and conduct diamond drilling and other advanced exploration activities. Omui is one of Irving’s key high grade target areas at Omu. With this approval, Irving must now submit the Omui Mine Safety Regulation for acceptance.
Approval of Irving’s Omu Sinter drilling permit, a separate application from the Omui Mine Plan, is currently awaited. Omu Sinter is another one of the high priority targets at Omu.
As discussed in the Company’s news release dated October 19, 2018, Irving is currently working with Mitsui Mineral Development Engineering Co., Ltd. (“MINDECO”) and Rodren Drilling Ltd. to mobilize a diamond drill to Omu. Further updates about timing of drilling will be provided as these various items are organized.
“Approval of our Mine Plan by METI is very encouraging”, commented Akiko Levinson, President and Director of Irving Resources. “Not only does this give us approval to conduct bulk sampling, trenching and diamond drilling, this establishes Irving as a mining company in Japan”.
Quinton Hennigh (Ph.D., P.Geo.) is the Qualified Person pursuant to National Instrument 43-101 responsible for, and having reviewed and verified, the technical information contained in this news release. Dr. Hennigh is a technical advisor and director of Irving Resources Inc.
About Irving Resources Inc.:
Irving is a junior exploration company with a focus on gold in Japan. Irving also holds, through a subsidiary, Project Venture Agreements with Japan Oil, Gas and Metals National Corporation (JOGMEC) for joint regional exploration programs in the United Republic of Tanzania, the Republic of Malawi and the Republic of Madagascar. JOGMEC is a government organization established under the law of Japan, administrated by the Ministry of Economy, Trade and Industry of Japan, and is responsible for stable supply of various resources to Japan through the discovery of sizable economic deposits of base, precious and rare metals.
Additional information can be found on the Company’s website:
Akiko Levinson,
President & Director

For further information, please contact:
Tel: (604) 682-3234 Toll free: 1 (888) 242-3234 Fax: (604) 641-1214