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Denison announces decision to advance Wheeler River Project following positive PFS results

Denison Mines Corp. (CNW Group/Denison Mines Corp.)

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Denison Mines Corp. (CNW Group/Denison Mines Corp.)

TORONTO , Dec. 18, 2018 /CNW/ – Denison Mines Corp. (“Denison” or the “Company”) (DML: TSX, DNN: NYSE American) is pleased to report that the Company’s Board of Directors and the Wheeler River Joint Venture (“WRJV”) have approved the advancement of the Wheeler River project, following a detailed assessment of the strong economic results produced by the recently filed Pre-Feasibility Study (“PFS”) prepared for the project in accordance with NI 43-101 (see news release dated October 30, 2018 ). In support of the decision to advance the Wheeler River project, the WRJV has approved a $10.3 million budget for 2019 (100% basis), which is highlighted by plans to initiate the Environmental Assessment (“EA”) process as well as engineering studies and related programs required to advance the high-grade Phoenix deposit as an in-situ recovery (“ISR”) mining operation. Denison’s share of the 2019 budget for Wheeler River is $9.3 million , which reflects Denison’s 90% ownership interest in the project (see news release dated October 29, 2018 ). View PDF version.

Highlights from Wheeler River 2019 Budget

  • Initiation of Environmental Assessment process:  The submission of a Project Description (“PD”), to Federal and Provincial Regulatory Authorities is planned for early 2019, which is expected to initiate a multi-year EA, consultation, and permitting processes for the project.
  • Commencement of ISR wellfield tests: Field tests involving the drilling of ISR wells into the Phoenix deposit will be designed to assess permeability throughout the deposit by completing pump and other hydraulic tests within the orezone. The drilling of ISR wells will also allow for the collection of additional groundwater and ore samples, as well as provide assistance in refining the estimated cost of wellfield development.
  • Initiation of metallurgical ISR pilot plant testing:  Extensive laboratory studies replicating the ISR flowsheet are planned to test and optimize the mineral processing aspects of the Phoenix operation. Studies are expected to include the assessment of lixiviant chemistry and performance under a variety of permeability and grade conditions.
  • Discovery focused exploration program: Following years of delineation drilling for the Phoenix and Gryphon deposits, planned exploration activities in 2019 are designed to evaluate high priority regional target areas by focusing on initial testing of targets at the sub- Athabasca unconformity – which could lead to the discovery of further uranium deposits that may be amenable to ISR mining.

David Cates , President and CEO of Denison, commented “With the potential for a Phoenix ISR operation to have the industry’s lowest operating cost per pound of U3O8, as outlined in the Wheeler River PFS, the Board of Directors unanimously approved the advancement of the project and the 2019 budget.  The initiation of the EA process, as well as engineering and field studies designed to ultimately support a feasibility study, illustrates the Company’s commitment to achieving the project development timeline outlined in the PFS and claiming the ‘pole-position’ amongst undeveloped uranium projects in the Athabasca Basin region.  With plans for 2019 including a discovery-oriented exploration program and various engineering programs designed to de-risk the mine plan for the Phoenix ISR operation, we have the potential for several meaningful catalysts to emerge during the year.”

A location map of the Wheeler River project is provided in Figure 1, showing existing and proposed infrastructure. Figure 2 shows the location of the high priority regional target areas planned for exploration drill testing in 2019.

Figure 1: Location map of the Wheeler River project, showing existing and proposed infrastructure (CNW Group/Denison Mines Corp.)

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Figure 1: Location map of the Wheeler River project, showing existing and proposed infrastructure (CNW Group/Denison Mines Corp.)

Figure 1: Location map of the Wheeler River project, showing existing and proposed infrastructure (Full Resolution)

Figure 2: Location of the high priority regional target areas planned for exploration drill testing in 2019, shown on the Wheeler River basement geology map. (CNW Group/Denison Mines Corp.)

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Figure 2: Location of the high priority regional target areas planned for exploration drill testing in 2019, shown on the Wheeler River basement geology map. (CNW Group/Denison Mines Corp.)

Figure 2: Location of the high priority regional target areas planned for exploration drill testing in 2019, shown on the Wheeler River basement geology map. (Full Resolution)

Wheeler River PFS: Phoenix ISR Highlights

The PFS considers the potential economic merit of co-developing the Phoenix and Gryphon deposits.  The high-grade Phoenix deposit is designed as an ISR mining operation, with associated processing to a finished product occurring at a plant to be built on site at Wheeler River.  Based on the PFS plan, first production from Phoenix is expected in 2024, with the development of the Gryphon deposit to follow with first production from Gryphon projected for 2030. The Phoenix operation is estimated to have a base case pre-tax Net Present Value (“NPV”) of $930.4 million (at 8% discount rate) representing the large majority of the project’s overall estimated pre-tax NPV(8%) of $1.31 billion – which includes the self-funding development of the Gryphon operation from cash-flows generated by the Phoenix operation.

The novel use of the ISR mining method at Phoenix pairs the world’s lowest cost uranium mining method with the world’s highest grade undeveloped uranium deposit ( Phoenix ) – in what could prove to be one of the world’s (1) lowest cost and (2) most environmentally friendly and responsible uranium mining operations.

  • Industry leading operating costs and comparatively low initial capex with ISR for Phoenix

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 (100%)

Base case pre-tax IRR(2)

43.3%

Base case pre-tax NPV8%(2)

$930.4 million (100%)

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

(1)

For further details on mineral reserves refer to the NI 43-101 Technical Report on Wheeler River titled “Pre-feasibility Study for the
Wheeler River Uranium Project, Saskatchewan, Canada” dated October 30, 2018 available on Denison’s website or 
on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml

(2)

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

(3)

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;

(4)

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

(5)

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

  • 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 lixiviant 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 federal and provincial representatives and stakeholder communities, to date, has been encouraging regarding the use of ISR mining.

Initiation of Environmental Assessment process

The PFS process identified the EA as a key element of the project’s critical path.  The PFS estimated a 3-4 year timeline to receive approvals under the existing regulations of the Canadian Environmental Assessment Act (“CEAA 2012”), allowing for construction to commence in 2022 with first production planned by 2024.

After careful consideration of the risks and opportunities associated with permitting and concurrent advancement of project engineering activities, the Company has decided to submit a PD and initiate the EA process in early 2019 for the Phoenix ISR operation, and to bring the Gryphon operation forward, at a later date, as required to achieve the PFS plan of Gryphon first production by 2030.  This is expected to simplify the EA and permitting process for the Phoenix operation and reduce the capital required to advance the project to a definitive development decision.

EA related expenditures planned for 2019 are estimated to be $2.5 million (100% basis) and, in addition to advancing the actual EA process, will include the continuation and expansion of the collection of certain baseline environmental data and the continuation of stakeholder consultation efforts.

Commencement of ISR wellfield tests

Additional field and laboratory work is needed to increase confidence and reduce risk in the ISR application at Phoenix . While preliminary field data supports the use of ISR, the ability to move fluids through the ore zone is an important technical risk that requires additional evaluation ahead of the initiation of a formal Feasibility Study (“FS”).

ISR field testing planned for 2019 is expected to include the installation of approximately 15 to 20 ISR wells into the Phoenix orebody, which is expected to provide a representative test of the various ore domains associated with Phoenix and the expected conditions in actual ISR operations. The field test is expected to have the following key objectives:

  • Confirm the ability to pump fluids through the various domains of the orebody and quantify volumes, pressures and other conditions required within the ore zones and surrounding host rock;
  • Confirm the ability, costs and schedule to drill larger diameter (8 inch) boreholes and set impermeable casings within the ground surrounding Phoenix ;
  • Confirm baseline water conditions in, and surrounding, the deposit for the design of water treatment during operations, closure plans and the completion of expected environmental assessments;
  • Obtain additional representative ore samples from core drilling to facilitate extensive ISR metallurgical testing; and
  • Obtain surface geotechnical data of soils for foundation designs.

Expenditures related to the field testing planned for 2019 are estimated to be $2.4 million (100% basis).

Initiation of metallurgical ISR pilot plant testing 

The PFS results are based on metallurgical test work which was focused on proving the applicability of ISR mining (via column test) and leachability (via conventional leach tests) for the development of the Phoenix operation.  As the project advances through the EA process and towards the initiation of a FS, additional metallurgical test work is required to both test and optimize the metallurgical processing elements of the Phoenix operation.  A customized laboratory test program is expected to be developed to properly achieve the desired metallurgical test objectives – which are likely to include the following:

  • Assess the performance of different lixiviants in a variety of permeability and grade conditions;
  • Evaluate the potential for build-up of contaminants in the lixiviant;
  • Evaluate opportunities to recover rare earth metals as a by-product;
  • Increase confidence in the concentration of the lixiviant for the process plant design; and
  • Improve confidence in ground restoration abilities and cost estimates.

A laboratory scale pilot plant is planned to run over a one-year period, starting during the second half of 2019, with approximately $0.5 million (100% basis) budgeted for the setup and initial operation of the pilot plant in 2019.

Other project development activities

A further approximately $1.7 million (100% basis) is budgeted for project development / evaluation related activities in 2019, including the completion of certain third-party review studies, additional engineering trade-off studies related to the proposed Gryphon operation, program management costs, and operator fees to the WRJV.

The 2019 program is part of a multi-year project development plan that calls for the completion of a FS by the end of 2020 and receipt of final environmental and permitting approvals in 2021 or 2022 – which is expected to position Denison to make a definitive development decision on the project.  Future activities in 2020 and beyond may include:

  • Drilling of pilot / test freeze holes to increase confidence in costs associated with establishing the freeze wall surrounding the Phoenix deposit;
  • Completion of condemnation drilling and mineral resource updates at Phoenix to ensure potentially economic mineral resources are encapsulated within the freeze wall perimeter; and
  • Initiation of a formal FS in accordance with NI 43-101.

Discovery focused exploration program

The 2019 budget also calls for a $3.2 million (100% basis) discovery focused exploration program at Wheeler River. The program consists exclusively of diamond drilling, including approximately 13,500 metres in 23 planned drill holes.

Following the completion of the PFS and given the highly encouraging results from the proposed Phoenix ISR operation, the exploration drilling program will be focused on initial testing of targets at the sub- Athabasca unconformity, with the potential to discover additional ISR amenable uranium deposits.  Potential for basement hosted uranium mineralization will not be ignored where opportunities also exist to evaluate prospective basement targets.

High priority regional target areas planned for testing in 2019 include K West, M Zone, K South, Gryphon South, Q South (East), and O Zone, each of which is shown in Figure 2.

About Wheeler River

Wheeler River is the largest undeveloped uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, in northern Saskatchewan – including combined Indicated Mineral Resources of 132.1 million pounds U3O8 at an average grade of 3.3% U3O8, plus combined Inferred Mineral Resources of 3.0 million pounds U3O8 at an average grade of 1.7% U3O8. The project is host to the high-grade Phoenix and Gryphon uranium deposits (discovered by Denison in 2008 and 2014, respectively), and is a joint venture between Denison (90% and operator) and JCU ( Canada ) Exploration Company Limited (10%). 

A PFS was completed, considering the potential economic merit of co-developing the high-grade Phoenix and Gryphon deposits, the results of which were announced on September 24, 2018 . 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 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 PFS is prepared on a project (100% ownership) and pre-tax basis, as each of the partners to the Wheeler River Joint Venture (“WRJV”) are subject to different tax and other obligations.

Further details regarding the Wheeler River project, including additional scientific and technical information relevant to the PFS, as well as after-tax results attributable to Denison’s ownership interest, are described in greater detail in the NI 43-101 Technical Report for the Wheeler River project titled “Pre-feasibility Study for the Wheeler River Uranium Project, Saskatchewan, Canada ” dated October 30, 2018 with an effective date of September 24 , 2018.  A copy of this report is available on Denison’s website and under its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml

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 in its exploration activities, please see Denison’s Annual Information Form dated March 27, 2018 filed under the Company’s profile on SEDAR at www.sedar.com.

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% 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 65.92% interest in the J Zone and Huskie deposits 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 Athabasca Basin, 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 www.sedar.com and its Form 40-F available at www.sec.gov/edgar.shtml. 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.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources and Probable Mineral Reserves: This news release may use the terms ‘measured’, ‘indicated’ and ‘inferred’ mineral resources. United States investors are advised that while such terms have been prepared in accordance with the definition standards on mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian National Instrument 43-101 Mineral Disclosure Standards (“NI 43-101”) and are recognized and required by Canadian regulations, the United States Securities and Exchange Commission (“SEC”) does not recognize them. ‘Inferred mineral resources’ have a great amount of uncertainty as to their existence, and 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 rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.  The estimates of mineral reserves in this press release have been prepared in accordance with 43-101. The definition of probable mineral reserves used in NI 43-101 differs from the definition used by the SEC in the SEC’s Industry Guide 7.  Under the requirements of the SEC, mineralization may not be classified as a “reserve” unless the determination has been made, pursuant to a “final” or “bankable” feasibility study that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made.  Accordingly, Denison’s probable mineral reserves disclosure may not be comparable to information from U.S. companies subject to the reporting and disclosure requirements of the SEC

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Categories
Base Metals Energy Precious Metals

GROUP TEN METALS Announces Discovery of Hybrid Zone as One of 14 Multi-Kilometer-Scale PGE-Ni-Cu Target Areas Identified at Stillwater West

VANCOUVER, British Columbia, Dec. 17, 2018 (GLOBE NEWSWIRE) — Group Ten Metals Inc. (TSX.V: PGE; OTC: PGEZF, FSE: 5D32) (the “Company” or “Group Ten”) provides an update on the Company’s flagship Stillwater West PGE-Ni-Cu project (“Stillwater West” or the “Project”) in the Stillwater district of Montana, USA, including a summary of 2018 field work which resulted in the recognition of the new Hybrid Zone PGE-Ni-Cu-Cr target that is one of 14 multi-kilometer priority target areas identified by field and data analysis activities to date.

Dr. Craig Bow, Chief Geologist, stated, “We are excited about the discovery of a fundamentally new type of platinum and palladium mineralization within the Stillwater Complex. Termed “Hybrid Zone” due to the complex mixtures of rock types and textures, this zone within the Chrome Mountain target area is characterized by broad intervals (10 to 150 meters) of highly anomalous PGE levels associated with chromite and base metal sulfide often in pegmatoidal Ultramafic Series lithologies. To date, mineralization has seen scout drilling only and remains open in all directions, emphasizing the underexplored nature of the ultramafic portion of the Stillwater Complex. We are committed to further exploration of this iconic mining district and believe in its potential to host significant new deposits.”

Including the new Hybrid Zone in the Chrome Mountain target area, Group Ten has identified a total of 14 multi-kilometer-scale target areas along the approximate 25-km strike length of the property (see Figure 1). These 3- to 8-km-long target areas have been defined by major high-level electro-magnetic conductors with broad coincident soil geochemical anomalies, and are further divided into eight ‘Platreef-style’ bulk tonnage PGE-Ni-Cu sulphide target areas (blue ellipses) and six ‘Reef-type’ higher-grade PGE target areas (red ellipses) including the Picket Pin PGE reef deposit.

The eight ‘Platreef-style’ bulk tonnage PGE-Ni-Cu target areas occur within the ultramafic and basal part of the Stillwater Complex and are highlighted by strong electro-magnetic conductive signatures that are characteristic of large bodies of massive to extensively disseminated sulphides. These geophysical targets have overlapping highly elevated palladium, platinum, gold, nickel, copper, and chromium values in soils and rock sampling. Individual target areas have from a few drill holes to as many as 30 wide-spaced holes that have intercepted significant levels of platinum, palladium and gold along with nickel, copper, cobalt, rhodium, vanadium and chromium.

The higher-grade ‘Reef-type’ PGE target areas at Stillwater West, occur both above and below Sibanye-Stillwater’s J-M Reef deposit, which hosts a Measured and Indicated resource of 31 million ounces at a grade of 17.0 grams per tonne (g/t) Pt+Pd, plus an additional 49 million ounces at 16.6 g/t Pt+Pd in Inferred resources1, plus past production of 10 million ounces at similar grades2 from three active mines. Less work has been completed on these Reef-type targets by Group Ten to date however surface sampling and drilling has reported significant mineralization that will be assessed in future work.

2018 Exploration Programs

The 2018 exploration program, the Company’s first at Stillwater West, confirmed the potential of the Project to host multiple large-scale, disseminated, polymetallic bulk tonnage deposits across the 25-km length of the claim blocks. Work was focused on exploration of the lower Stillwater Complex where the Company sees the potential for much larger mineralized systems than has been previously recognized in the district based on geological similarities with the northern limb of South Africa’s Bushveld Complex, a region which hosts Anglo American’s world-leading Mogalakwena PGE-Ni-Cu Mine, and Ivanhoe’s Platreef PGE-Ni-Cu project, which is currently under construction.

Work was conducted in the following key areas at Stillwater West in 2018:

  • Significant mineralized intervals from over 11,000 meters of core inventory were re-logged for assay and the application of new geologic models from the Platreef. Re-logging is now complete, with assays pending;
  • Surface prospecting and rock sampling of mineralized outcrops along approximately 20 km of the 25-km strike of the project was completed. Assay results are expected shortly;
  • Detailed surface mapping of the Basal and Ultramafic Series covering an approximate 7 km2 area was completed to augment the historical database and better define the stratigraphy of this underexplored portion of the Stillwater Complex;
  • Physical rock property measurements were completed on representative core and grab samples including magnetic susceptibility, conductivity/resistivity, IP (Induced Polarization) chargeability, and density. Rock property analysis is expected to be instrumental in developing new geologic and 3-D models for the different types of mineralization at Stillwater West;
  • Entry of all core data into the first property-wide 3D geologic database for modeling and target refinement. This effort is ongoing, with results expected in 2019;
  • Development of a predictive geologic model to drive future exploration efforts and follow-up drilling (ongoing); and prioritization of all targets along the 25-km-long strike length of the Project (now underway).

Next Steps

Results of the 2018 field program will be released in the coming weeks, with results of the greater modeling and mapping efforts expected to be on-going through Q1 of 2019. Group Ten will attend both the Vancouver Resource Investment Conference and AME Round Up trade shows in January, including core display at the latter.

About Stillwater West

The Stillwater West PGE-Ni-Cu project positions Group Ten as the second largest landholder in the Stillwater Complex, adjoining and adjacent to Sibanye-Stillwater’s world-leading Stillwater, East Boulder, and Blitz platinum group elements (PGE) mines in south central Montana, USA. With more than 41 million ounces of past production2and current M&I resources1, plus another 49 million ounces of Inferred resources1, the Stillwater Complex is recognized as one of the top regions in the world for PGE-Ni-Cu mineralization, alongside the Bushveld Complex and Great Dyke in southern Africa, which are similar layered intrusions. The J-M Reef, and other PGE-enriched sulphide horizons in the Stillwater Complex, share many similarities with the highly prolific Merensky and UG2 Reefs in the Bushveld Complex, while the lower part of the Stillwater Complex also shows the potential for much larger scale disseminated and high-sulphide PGE-nickel-copper type deposits, possibly similar to Platreef in the Bushveld Complex3. Group Ten’s Stillwater West property covers the lower part of the Stillwater Complex along with the Picket Pin PGE Reef-type deposit in the upper portion, and includes extensive historic data, including soil and rock geochemistry, geophysical surveys, geologic mapping, and historic drilling.
Note 1: Report on Montana Platinum Group Metal Mineral Assets of Sibanye-Stillwater, November 2017, Measured and Indicated Resources of 57.2 million tonnes grading 17.0 g/t Pt+Pd containing 31.3 million ounces and 92.5 million tonnes grading 16.6 g/t containing 49.4 million ounces.
Note 2: Public production records from Stillwater Mining Company from 1992 to present.
Note 3: Magmatic Ore Deposits in Layered Intrusions—Descriptive Model for Reef-Type PGE and Contact-Type Cu-Ni-PGE Deposits, Michael Zientek, USGS Open-File Report 2012–1010.

About Group Ten Metals Inc.

Group Ten Metals Inc. is a TSX-V-listed Canadian mineral exploration company focused on the development of high-quality platinum, palladium, nickel, copper, cobalt and gold exploration assets in top North American mining jurisdictions. The Company’s core asset is the Stillwater West PGE-Ni-Cu project adjacent to Sibanye-Stillwater’s high-grade PGE mines in Montana, USA.  Group Ten also holds the highly prospective Kluane PGE-Ni-Cu project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory, and the high-grade Black Lake-Drayton Gold project in the Rainy River district of northwest Ontario.

About the Metallic Group of Companies

The Metallic Group is a collaboration of leading precious and base metals exploration companies, with a portfolio of large, brownfields assets in established mining districts adjacent to some of the industry’s highest-grade producers of platinum & palladium, silver and copper. Member companies include Group Ten Metals (PGE.V) in the Stillwater PGM-Ni-Cu district of Montana, Metallic Minerals (MMG.V) in the Yukon’s Keno Hill silver district, and Granite Creek Copper (GCX-H.V) in the Yukon’s Carmacks copper district. Highly experienced management and technical teams at the Metallic Group have expertise across the spectrum of resource exploration and project development from initial discoveries to advanced development, including strong project finance and capital markets experience and have demonstrated a commitment to community engagement and environmental best practices. The founders and team members of the Metallic Group include highly successful explorationists formerly with some of the industry’s leading explorer/developers and major producers and are undertaking a systematic approach to exploration using new models and technologies to facilitate discoveries in these proven historic mining districts. The Metallic Group is headquartered in Vancouver, BC, Canada and its member companies are listed on the Toronto Venture, US OTC, and Frankfurt stock exchanges.

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FOR FURTHER INFORMATION, PLEASE CONTACT:
Michael Rowley, President, CEO & Director

Email: info@grouptenmetals.com Phone: (604) 357 4790
Web: http://grouptenmetals.com Toll Free: (888) 432 0075

Quality Control and Quality Assurance

Mr. Mike Ostenson, P.Geo., is the qualified person for the purposes of National Instrument 43-101, and he has reviewed and approved the technical disclosure contained in this news release.

Forward-Looking Statements

Forward Looking Statements: This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Group Ten believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Group Ten and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Categories
Base Metals Precious Metals Project Generators

MILLROCK RESOURCES Closes Tranche 2 of Private Placement

VANCOUVER, BRITISH COLUMBIA, December 14, 2018 – Millrock Resources Inc. (TSX-V: MRO) (“Millrock” or “the Company”) reports the non-brokered private placement announced on December 7, 2018 was oversubscribed and the Company raised a total of $1,044,500. A total of 3,445,000 units at a price of $0.10 per unit have been issued in Tranche 2 for gross proceeds of $344,500. Each unit consists of one common share of Millrock and one share purchase warrant (the “Unit Warrants”). Each Unit Warrant entitles the holder to purchase one additional common share at an escalating exercise price over a period of three years from the closing date as follows:

  • During the first year from the closing date the Unit Warrants are exercisable at $0.14 per share;
  • Thereafter, during the second year from the closing date, $0.17 per share; and
  • Thereafter during the third year from the closing date, $0.20 per share.

Finder’s fees of $600 and 6,000 Finder’s Warrants are payable to Sprott Private Wealth LP., in connection with this portion of the financing.
The common shares issued under this financing and any common shares issued pursuant to exercise of Unit Warrants or Finder’s Warrants are subject to a hold period and may not be traded until April 15, 2019.
This financing is subject to receipt of TSX Venture Exchange acceptance.
Proceeds from the financing will be used for project generation and general corporate purposes. The financing is subject to final approval from the TSX Venture Exchange.
About Millrock Resources Inc.
Millrock Resources Inc. is a premier project generator to the mining industry. Millrock identifies, packages and operates large-scale projects for joint venture, thereby exposing its shareholders to the benefits of mineral discovery without the usual financial risk taken on by most exploration companies. The company is active in Alaska, the southwest USA and Sonora State, Mexico. Funding for drilling at Millrock’s exploration projects is primarily provided by its joint venture partners. Business partners of Millrock have included some of the leading names in the mining industry: Centerra Gold, First Quantum, Teck, Kinross, Vale, Inmet, Altius, and Riverside. Millrock is a major shareholder of junior explorers PolarX Limited. and Sojourn Exploration Inc.
ON BEHALF OF THE BOARD
“Gregory Beischer”
Gregory Beischer, President & CEO
FOR FURTHER INFORMATION, PLEASE CONTACT:
Melanee Henderson, Investor Relations
(604) 638-3164
(877) 217-8978 (toll-free)
Some statements in this news release contain forward-looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.

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Categories
Base Metals Energy Precious Metals Project Generators

EMX ROYALTY Executes Agreement to Sell Four Polymetallic Projects in Norway and Sweden to OK2 Minerals

Vancouver, British Columbia–(Newsfile Corp. – December 13, 2018) – EMX Royalty Corporation (TSXV: EMX) (NYSE American: EMX) (the “Company” or “EMX”) is pleased to announce the execution of a purchase agreement (the “Agreement”) for the sale of the Bleikvassli, Sagvoll, and Meråker polymetallic projects in Norway, and the Bastuträsk polymetallic project in Sweden to OK2 Minerals Ltd. (“OK2”) (TSX Venture: OK). The Agreement provides EMX with a 9.9% equity interest in OK2, advance royalty payments, and a 3% net smelter return (“NSR”) royalty interest in the projects, as well as a 1% NSR royalty on OK2’s Pyramid project in British Columbia.

The four Scandinavian projects (the “Properties”) provide OK2 with a portfolio of prospective properties for its newly created European Business Unit, and will provide OK2’s shareholders, including EMX, with substantial value creation upside. The Properties contain historic mining areas and/or historic, drill-defined zones of polymetallic base metal mineralization (zinc-lead-copper) with variable levels of precious metal enrichments (silver ± gold). There is significant exploration potential, as little to no modern work has taken place on the projects, with the exception of Bastuträsk. Please see the attached map and www.EMXroyalty.com for more information.

Commercial Terms Overview (dollar amounts in USD, unless otherwise noted):

  • EMX will transfer to OK2 the Bleikvassli, Sagvoll, and Meråker exploration licenses in Norway, and its Bastuträsk exploration permits in Sweden at closing.
  • Upon the closing of this transaction, OK2 will undergo a corporate restructuring by share consolidation and change its name to Norra Metals Corp.
  • OK2 will issue to EMX that number of common shares of OK2 that represents a 9.9% equity ownership in OK2 at closing. OK2 will have the continuing obligation to issue additional shares of OK2 to EMX to maintain its 9.9% interest in OK2, at no additional cost to EMX (subject to a maximum of 13,398,958 post-consolidation common shares), until OK2 has raised CDN $5,000,000 in equity to fund exploration and development on the Properties, or until five years after closing, whichever occurs first. Thereafter, EMX will have the right to participate pro-rata in future financings at its own cost to maintain its 9.9% interest in OK2.
  • Further, there is an additional provision that requires OK2 to raise and spend CDN $2,000,000 on the Properties within two years of the closing date, otherwise EMX’s 9.9% equity ownership shall be increased to a 14.9% continuing equity interest (subject to a maximum of 21,350,956 post-consolidation common shares).
  • EMX will retain an uncapped 3% NSR royalty interest on each of the Properties. Within six years of the closing date, OK2 has the right to buy down up to 1% of the royalty retained by EMX on any given project (leaving EMX with a 2% NSR royalty) by paying EMX $2,500,000. Such a buy down is project specific.
  • EMX will receive annual advance royalty (“AAR”) payments of $20,000 for each of the Properties commencing on the second anniversary of the closing, with each AAR payment increasing by $5,000 per year until reaching $60,000 per year, except that OK2 may skip AAR payments on two of the four Properties in years two and three provided payments are made on the other two Properties in years two and three. Once reaching $60,000, AAR payments will be adjusted each year according to the Consumer Price Index (as published by the U.S. Department of Labor, Bureau of Labor Statistics).
  • EMX will receive a 0.5% NSR royalty on any new mineral exploration projects generated by OK2 in Sweden or Norway, excluding projects acquired from a third party containing a mineral resource or reserve or an existing mining operation. These royalties are not capped and not subject to a buy down.
  • EMX will also receive a 1% NSR royalty on OK2’s Pyramid project in British Columbia at closing.
  • EMX will have the right to nominate one seat on the Board of Directors of OK2.
  • Closing is subject to approval by the TSX Venture Exchange.

Properties Overview

The Scandinavian Properties contain a combination of Volcanogenic Massive Sulfide (“VMS”) and sedimentary exhalative (“SEDEX”) polymetallic deposits. Magmatic sulfide type nickel-copper-cobalt mineralization is also present on portions of the Sagvoll project in Norway.

Bleikvassli. The 6,000 hectare (“Ha”) Bleikvassli licenses are located near the Norwegian city of Mo-i-Rana, and contain the historic Bleikvassli mine area, which saw production of lead, zinc and silver mineralization from 1914-1997[1]. The mine was one of the last metal mines to operate in Norway, and was closed only when flooded in the late 1990’s. The styles of mineralization at Bleikvassli have been the subject of debate, with some authors favoring a VMS origin for the deposit, while others have favored a sedimentary exhalative (“SEDEX”) model. In either case, the deposit consists of stratiform/stratibound lenses of lead-zinc-silver massive sulfide mineralization, which locally grades into more copper and gold-rich compositions. The lenses mined at Bleikvassli constitute a portion of an extensive zone of sulfide mineralization that extends well beyond the mine area, as indicated by historic exploration drilling and extensive surface mapping.

Sagvoll. The 11,000 Ha Sagvoll project is located northeast of the Norwegian city of Trondheim. The Sagvoll licenses contain multiple areas of historic mining, where copper and other metals were mined in the 19th and early 20th centuries. VMS style mineralization is developed throughout the areas of historic mine workings, and along extensive geophysical anomalies that extend for over 25 kilometers along strike of the mine workings. Also present in the southeastern portion of the license area are historic nickel-copper sulfide mines and prospects.

Meråker. Like Sagvoll, the 18,600 Ha Meråker project is located near the Norwegian city of Trondheim, and contains multiple historic mines and prospects developed on trends of polymetallic VMS style mineralization. Copper was the chief product from many of the historic mines, but significant zinc mineralization is seen in the mine dumps and outcrops in the area. There are several parallel trends of mineralization within the project area, extending for nearly 30 kilometers along strike. Little modern exploration has taken place at Meråker.

Bastuträsk. The 4,700 Ha Bastuträsk exploration permits are located in the Skellefteå district, which is one of Sweden’s most prolific mining districts. VMS style sulfide mineralization was discovered at Bastuträsk by Boliden AB in the 1960’s, and was drilled intermittently in various programs through the early 2000’s. The mineralization is hosted by a folded sequence of volcanic and volcanoclastic sedimentary rocks. The mineralization does not outcrop in the area, and is only known through drilling and as projected from geophysical data. Drill defined zones of mineralization are developed over an area of several kilometers near the apparent nose of a prominent fold hinge.

Pyramid Project Overview

OK2’s 12,700 Ha Pyramid project is located along the Dease River at the northern edge of British Columbia’s “Golden Triangle” region. The project contains extensive zones of both porphyry gold-copper and epithermal style mineralization developed in Quesnel Terrane host rocks, one of the key hosts for porphyry deposits in British Columbia. The property has undergone extensive surface mapping, sampling and geophysical surveys, along with recent reconnaissance drilling (2016 and 2017). More information about the project, including drill results, are available on the OK2 website.

About EMX. EMX leverages asset ownership and exploration insight into partnerships that advance our mineral properties, with EMX receiving pre-production payments and retaining royalty interests. EMX complements its royalty generation initiatives with royalty acquisitions and strategic investments.

The sale of the Properties in Norway and Sweden to OK2 is another example of EMX’s execution of its royalty generation business model, and provides additional organic royalty property growth for EMX, as well as establishing a substantial equity position in the partner company. These interests provide EMX and its shareholders immediate exposure to equity upside, while the royalty interests provide longer term exposure to the optionality of continued exploration success and the potential for future mineral production revenues.

Dr. Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.

-30-

For further information contact:

David M. Cole
President and Chief Executive Officer
Phone: (303) 979-6666
Email: Dave@EMXroyalty.com

Scott Close
Director of Investor Relations
Phone: (303) 973-8585
Email: SClose@EMXroyalty.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release may contain forward looking statements that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merits of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as estimate, intend, expect, anticipate, will“, “believe”,“potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company‘s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to: unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended onSeptember 30, 2018 (the “MD&A”), and the most recently filed Form 20-F for the year that ended on December 31, 2017, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the 20-F and financial statements of the Company, is available on SEDAR at www.sedar.com and on the SEC’s EDGAR website at www.sec.gov.

Cannot view this image? Visit: http://media.zenfs.com/en-US/homerun/newsfile_64/c957666d8d323b019347528d8004e6c9
Cannot view this image? Visit: http://media.zenfs.com/en-US/homerun/newsfile_64/c957666d8d323b019347528d8004e6c9

Figure 1. Properties in Norway and Sweden sold by EMX to OK2.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/1508/41619_80f3f742c4c07bfe_002full.jpg

[1] Geological Survey of Norway Ore Database, Deposit Area 1832-012.

Categories
Base Metals

SOJOURN EXPLORATION Geochemical samples confirm high tenor precious and base metal values in multiple zones

Todd Creek Project geochemical samples confirm high tenor precious and base metal values in multiple zones

Sojourn Exploration Inc. (TSX-V: SOJ, OTCPK: SJRNF) is pleased to report analytical results of geochemical sampling from its 36,000 hectare Todd Creek Project, located 30 km northeast of Stewart in B.C.’s Golden Triangle.
The Todd Creek project is situated approximately 40 km southeast of Seabridge Gold’s KSM project, one of North America’s largest porphyry copper-gold deposits, and Pretium Resources’ Brucejack high-grade gold mine. The Todd Creek north and western property boundaries adjoin mineral claims actively being explored by Pretium as described in their recent press release (Pretium news release Dec. 6, 2018). Pretium’s 2018 exploration activities included drilling at their Koopa and American Creek prospects which are prospective for Eskay Creek style precious metal enriched VMS mineralization and porphyry copper-gold mineralization, respectively, and are located proximal to the Todd Creek property.
The 2018 reconnaissance sampling program at Todd Creek was completed following the closure of the property purchase agreement to acquire Millrock Resources’ Golden Triangle assets (Sojourn news release September 14, 2018), making Sojourn one of the largest claim holders in this highly prospective copper-gold metallotect. Significant results of the program are summarized in Table 1. Highlights include:
• Fifty rock chip and grab samples collected over a 0.7 by 1.2 km area within the untested Yellow Bowl Zone at Todd Creek averaged 0.68% copper (Cu), including ten samples with over 1% Cu. The Yellow Bowl Zone contains widespread Cu-rich magmatic-hydrothermal breccias and has never been drilled. Three kilometres north of Yellow Bowl, well mineralized breccias at the Fall Creek Zone returned up to 37.7 g/t gold (Au) and 5.3% Cu. • At the VMS Zone, eight samples of mineralization ranging from gossanous altered volcanics to semimassive and massive sulfides averaged 0.213 g/t Au, 30.1 g/t silver (Ag), 0.53% Cu, 0.53% lead (Pb) and 2.54% zinc (Zn), including individual assays up to 1.98% Cu, 9.15% Zn, 0.392 g/t Au and 112 g/t Ag. Mineralization has been traced over a strike length of 900 metres and has never been drill tested. • Samples from the newly discovered Smokin Zone at Todd Creek returned anomalous values in Au (to 0.266 g/t Au), arsenic (to 1120 ppm) and antimony (to 51 ppm). Mineralization is hosted in rhyolite breccias within Upper Hazelton Group mudstones, a similar stratigraphic position to the high grade Eskay Creek Au-Ag volcanogenic massive sulfide deposit located approximately 60 km to the northwest.
Table 1. Todd Creek highlight rock chip and grab samples from 2018 program (YB – Yellow Bowl; FC – Fall Creek; SMK – Smokin, VMS – VMS Zone).

Todd Creek contains widespread volcanic and intrusion-hosted copper-gold vein and breccia mineralization west of the central Todd Creek Fault, as well as polymetallic (zinc-lead-copper-gold-silver) volcanogenic massive sulfide (VMS) mineralization east of this important structure. The Todd Creek Fault is a major north-south structure which separates interpreted lower Hazelton Group stratigraphy to the west from interpreted upper Hazelton Group stratigraphy to the east. Reconnaissance sampling at Todd Creek in 2018 resulted in two significant advances in geologic understanding reinforced with geochemical results:

  1. The Cu-Au mineralization west of the Todd Creek Fault extends approximately six kilometres from the South Zone, through Yellow Bowl, to the Fall Creek Zone. Strongly altered, Cu-Au bearing porphyritic intrusions at Yellow Bowl suggest the presence of a porphyry system which has not been drill tested.
  2. VMS-style mineralization east of the Todd Creek Fault has been recognized as a much larger prospective area with the discovery of the Smokin Zone, almost ten kilometres north of the outcropping massive sulfides of the VMS Zone. Several other unsampled gossans support the concept that the VMS Zone may represent a small part of a more extensive and under-explored corridor prospective for Eskay Creek style, precious metal enriched VMS mineralization.

Yellow Bowl Corridor 
The Yellow Bowl Zone is central to a six-kilometre long corridor of strongly gossanous, altered and Cu-Au mineralized intermediate volcanic rocks, porphyritic intrusions and associated breccias. The Yellow Bowl Zone is located mid-way between the Au-enriched veins and breccias of the South Zone (historical 43-101 non-compliant resource of 207,000 tonnes grading 5.48 g/t Au, Hemlo Gold Mines Inc., 1988 Annual Report), and the multiple parallel zones of breccias and veins at the Fall Creek Zone. The untested Yellow Bowl Zone is located within a four-kilometre gap between historical drill holes in the Fall Creek and South Zones. The 2018 sampling program at Yellow Bowl, in conjunction with historical rock chip sampling, confirm Yellow Bowl represents a Cu enriched core zone, flanked by Au enriched mineralization at South Zone and Fall Creek. This core zone is interpreted as the upper levels of a significant porphyry Cu-Au system.
Fifty rock samples were collected across Yellow Bowl in 2018 and focused on recently deglaciated exposures of chalcopyrite-bearing hydrothermal breccias. The breccias have a strong east-west trend, and contain clasts of multi-brecciated quartz-chalcopyrite veins in a matrix of pyrite, chalcopyrite, and less common sulfosalts and sphalerite. These mineralized breccias are often spatially related to strongly altered porphyritic intrusions and associated hydrothermal-magmatic breccias.
The 2018 sampling data suggests a metal zonation exists between the central and southern parts of the Yellow Bowl Zone. Thirteen samples in the southern part of the zone contain higher average Cu grades (1.53%) along with anomalous Ag (average 23.1 g/t), Pb (0.05%) and Zn (0.14%), which is not seen elsewhere at Yellow Bowl. This is interpreted as a later phase of Ag-Pb-Zn enriched mineralization overprinting the southern part of the Cu-Au system. In the central part of the Yellow Bowl Zone, 34 samples averaged 0.38% Cu. However, Cu and Au values appear to increase with decreasing elevations, with 7 samples averaging 0.49% Cu and 0.19 g/t Au below 1500 metres. This includes a sample (L656607) assaying 1.26% Cu and 0.41 g/t Au in a strongly quartz-sericite-pyrite (QSP) altered intrusion.
Preliminary results from the 2018 IP geophysical survey indicate a significant chargeability anomaly underlies the Yellow Bowl Zone. Final interpretations will be released following receipt of the final report. The company aims to conduct a partner funded, first phase drill test of Yellow Bowl in 2019 for an underlying porphyry copper-gold system.
Due to time constraints, only limited sampling was carried out in the Fall Creek area (six samples) where historical trenching and shallow drilling by Noranda and others delineated multiple zones of brecciation and veining across 500 metres width and over strike lengths of up to 300 metres. Multiple drill intersections included 12.65 metres of 7.61 g/t Au and 1.58% Cu in NTC88-22 (Fall Creek A Zone). Two 2018 samples of breccia-hosted mineralization from the A Zone trench returned 37.7 g/t Au, 30.5 g/t Ag and 5.3% Cu (sample L656628) and 2.83 g/t Au, 9.8 g/t Ag and 2.42% Cu (sample L656627). High grade Cu-Au mineralization at South Zone and Fall Creek is hosted predominantly by variably hematite-altered andesitic volcanic rocks, within epithermal-like, banded, multi-phase brecciated quartz-jasperoidal silica-chalcopyrite veins.
VMS Corridor
Outcropping massive sulfides of the VMS Zone were discovered in 2008 below a receding glacier. However, the zone remains untested by drilling. Previous one to two metre channel samples of the zone returned grades up to 0.74% Cu, 1.35 g/t Au and 9.7% Zn. The 2018 samples successfully validated these tenors.
The VMS Zone is underlain by Hazelton Group mafic volcanic and volcaniclastic rocks. Pyrite-chalcopyrite-sphalerite-galena massive sulfide lenses within strong chlorite-sericite alteration selvages are hosted locally within lapilli tuff containing angular, massive sulfide clasts suggesting the possibility of multiple VMS horizons. The main massive sulfide lens ranges from 0.5 to 3.0 metres wide and is continuous for at least 60 metres along a northwest trend. Multiple lenses have been recognized and sampled and contain moderate to strong base metal values along an overall strike length of at least 900 metres. Sample S851010 was collected from a newly exposed zone of glacially polished outcrop and returned 0.17% Cu, 3.1% Zn, 0.95% Pb, 0.152 g/t Au and 27.6 g/t Ag.
Previous workers completed a property-wide VTEM airborne geophysical survey. The results of the survey indicate several linear conductors of 500 m strike-length are spatially related to the VMS Zone. These geophysical anomalies, including additional conductors identified to the south of VMS zone, have not been followed up.
The Smokin Zone is an extensive area of gossans identified in 2018 at the northern margin of an un-named glacier about 10 km north of the VMS Zone. Mapping of part of the gossanous area outlined a rhyolite breccia unit between a mudstone footwall and a coherent volcanic hanging wall in stratigraphy recognized as the upper Hazelton Group. Rhyolite clasts in the breccia are set in a matrix of very-fine sooty pyrite, arsenopyrite, chalcedonic quartz, open-space vugs and minor carbonaceous material (coal), suggesting a shallow subaqueous environment. A similar stratigraphic sequence sits immediately below the Eskay Creek VMS deposit.
Nineteen samples collected at Smokin Zone contained elevated gold pathfinders arsenic and antimony (averaging 156 ppm As and 17 ppm Sb), and locally anomalous gold and silver values, including sample L656630, which returned 0.266 g/t Au and 1.1 g/t Ag. The anomalism within this limited sampling data, as well as several newly exposed gossans and highly prospective stratigraphy east of the Todd Creek Fault, warrant an aggressive follow-up program in 2019.
Sojourn Exploration President Tyler Ruks comments: “Our 2018 Todd Creek reconnaissance program suggests that the Yellow Bowl zone, a gossan of significant size containing widespread, Cu-Au occurrences, represents the upper levels of an untested porphyry copper system. Yellow Bowl is flanked by distal, high grade gold-copper veins and breccias at South Zone and Fall Creek. Previously, the Yellow Bowl, South Zone and Fall Creek zones have been explored as distinct entities. The results of our 2018 program suggest that these zones are likely related and part of a large system, the core of which is completely untested by drilling. In addition, we have confirmed that the VMS Zone, located 5 kilometres southeast of Yellow Bowl and across the Todd Creek Fault, is hosted in interpreted Upper Hazelton Group stratigraphy, is far more extensive than previously thought and is virtually unexplored. Combined with the Smokin Zone, this large land position on the east side of the Todd Creek Fault represents a significant target for precious metal enriched, Eskay Creek style VMS mineralization. Lastly, the central Todd Creek Fault has been recognized as an important structure for further exploration. Our large land position includes 13 kilometres of this prospective lineament and we believe that there is significant potential for additional discoveries in its vicinity.”
Historical assays have not been verified by Sojourn but have been cited from sources believed to be reliable. Sojourn’s disclosure of a technical or scientific nature in this news release has been reviewed and approved by Jeff Kyba, PGeo, Vice President Exploration, who serves as a Qualified Person under the definition of National Instrument 43-101. Sample preparation was carried out at ALS Globals’s Terrace prep lab, and analyses were completed at its North Vancouver analytical laboratory. Samples were analyzed for 35 elements including copper by aqua regia acid digestion and ICP-AES, while gold was analyzed by fire assay (30 gram nominal sample weight), aqua regia digestion and ICP-AES. Over-limit copper (>1%), lead, zinc and silver (>100 ppm) were re-analyzed by aqua-regia digestion and ICP-AES (OG-46). Reconnaissance scale rock sampling as reported here is intended to indicate a range of typical grades associated with the mineralization observed, and does not imply the grade of a larger rock volume.
For further information please contact: Tyler Ruks, President and CEO at +1 (604) 638 3695
Investors are cautioned that Sojourn Exploration Inc. has not verified the data from the KSM, Brucejack and Eskay Creek deposits. Further, the presence and style of mineralization on these properties is not necessarily indicative of similar mineralization on the Sojourn Exploration Inc. properties. This news release contains statements about Sojourn’s expectations and are forward-looking in nature. As a result, they are subject to certain risks and uncertainties. Although Sojourn believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and Sojourn undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the accuracy or adequacy of this release.

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Categories
Base Metals Energy Exclusive Interviews Precious Metals

BOB MORIARTY’s Outlook On 2019

In a wide-ranging conversation, Bob Moriarty of 321 Gold discusses with Maurice Jackson of Proven and Probable geopolitics, economics, Bitcoin, precious metals and more.

VIDEO

AUDIO

TRANSCRIPT

Bob Moriarty’s Outlook on 2019 
Contributed Opinion

Source: Maurice Jackson for Streetwise Reports  (12/11/18)

Bob MoriartyMaurice Jackson

In a wide-ranging conversation, Bob Moriarty of 321 Gold discusses with Maurice Jackson of Proven and Probable geopolitics, economics, Bitcoin, precious metals and more.

2019
Maurice Jackson: Joining us for conversation is Bob Moriarty, the founder of 321 Gold and 321 Energy.com, and also the author of two of my personal favorite books, “The Art of Peace,” and “Nobody Knows Anything.” Mr. Moriarty, welcome to the show, sir.
Bob Moriarty: It’s very good to talk to you today, and it’s very funny because those are two of my favorite books, too.
Maurice: Sir, it’s always an honor to have you on our show. I would like to begin our discussion on your outlook for 2019. What are some topics of interest that we should focus on beginning with the political and economic landscape of the United States?
Bob: You’ve got to separate those, and we can do that, from an economic point of view. The trade war is a total disaster. It can only do damage. It already has done substantial damage. I think the everything bubble has popped, and we could see some real fireworks in 2019! The stock market has either topped or will top soon. Gold and silver appear to be bottoming. Platinum is the lowest relative to gold it has ever been. So, I’m literally buying platinum and I’m buying silver right now. I think that we may have a few more weeks of tax loss silly selling in the gold shares. But, I think that resources look good for next year, and everything else looks bad.
Politically, there’s just no predicting what Trump will do. Every day I get up, I look, I shudder. I’m not sure Trump knows what he’s doing. But, you and I were talking off mic, and one of the things that I said was, everybody needs to own some gold, they need to have some liquid cash, and they need to have a passport. The world is very precarious. Certainly you can see from the riots in France how swiftly things can go bad, and that all has to do with government spending money it doesn’t have and increasing taxes to pay for it.
Now, the problem is, governments across the globe have spent so much money that they can never tax the people enough, and the people are getting very tired of the cost of living go up and taxes going up, and they know the government is at fault, and they’re going to start hanging politicians here, very soon, and 2019 could be a lot worse than 2008 ever dreamed of.
Maurice: Speaking of that, let’s shift the focus here a little bit and talk about it on a global context here. Regarding geopolitics and the world economy, you somewhat reference it here, but what has you concerned the most?
Bob: Trump.
Maurice: Which will suffice in and of itself.
Bob: Trump is not dealing with a full deck, now to the extent that I’m glad he was elected president, because Hillary Clinton was far worse. But, Donald Trump is not dealing with a full deck. We have a coup d’état in progress. It’s been going on for several years where the FBI, and the DOJ, and the CIA, and the NSA are all trying to over throw Trump, and that’s a very bad thing. That’s not a good thing. It’s a bad thing. Have you ever been in a riot?
Maurice: No, sir, I have not.
Bob: Well, for 20 years, I flew small airplanes all over the world, and there were a couple of times that I got caught up in riots because things just started getting crazy. I was in Pakistan, and the locals decided they would start breaking up all the places that sold liquor, and when a mob forms, you see people at that very worst. When the banks close, when people can no longer cash checks, when their plastic money doesn’t work, Americans are three meals away from chaos, and it’s going to be bad, and I’m serious as a heart attack. Everybody should have a plan for getting out of dodge.
Maurice: And again, that plan is for our audience, a passport, physical precious metals, and some cash. And with regards to cash, would it be in a particular currency?
Bob: Whatever the local currency is. If you’re Canadian, you need Canadian dollars, and if you’re American, you need American dollars. Here’s the flaw. If the banks close, and the U.S. dollar goes to zero, you still need dollars because that’s what people are used to doing trade in. I’m not saying you need dollars because dollars are going to be more valuable. You need dollars because that’s how you conduct trade. I’m quite serious everybody needs a plan B. When everything goes to shit, I’m going to get out of dodge.
Maurice: Moving on to resource companies. Who has your attention now and going forward into 2019?
Bob: Miramont Resources Corp. (MONT:CSE; MRRMF:OTC) is absolutely one. They’ve just received a drill permit. It’s a Quinton Hennigh company. They have two world-class projects in Peru. They will start drilling in January. I expect to start seeing results in February or March. I think they will be world-class results. I think the market will recognize it. The company has gone from 13 cents, 10 days ago, to 26 cents (CAD) now, and that gives a market cap of about CA$13 million. Could they be CA$150 million in six months or a year? Absolutely. They’ve got plenty of money. They’ve got CA$6 million in the bank, so there’s no risk whatsoever with them going out, doing a big financing; and I expect to see solid, good results in the next two to three months.
The second company would be Irving Resources Inc. (IRV:CSE; IRVRF:OTCBB). Same story there. You and I were at Irving. We looked at CA$25,000/ton rock. We looked at the sinter. They will start drilling the sinter in January, and you can expect to see results six weeks, two months later. And, when you drill through $25,000 rock, you get a meter or two, and you’re going to have a stock that’s explosive. Irving was $1.10 a share two weeks ago, and it’s $1.80 right now, and it’s still cheap.
Maurice: How about Novo Resources Corp. (NVO:TSX.V; NSRPF:OTCQX). That’s one of our favorites as well.
Bob: Who?
Maurice: Novo Resources.
Bob: I’ve never heard of them. I’m going to be a little bit cagey here. I mean, that’s a terrible thing for me to say. Novo is, literally, having their AGM as you’re doing this recording, and I don’t want to say anything about Novo, until I hear the results of the AGM. But, I was there a month ago, Nova has an extraordinary future ahead of them, good management, tons of money in the bank. Quinton Hennigh is an absolute genius. Everybody hates the stock now, and how many times do I need to say, “You need to buy things when everybody hates them, and you need to sell them when everybody loves them.” And, you got all these people at the chat boards whining and crying, “Oh my God, Novo’s at a new low,” and I’m thinking, “Why did they not see that as an opportunity?”
Platinum hit $790 an ounce today. Why would you whine about that? That’s an opportunity. My God, it hasn’t been $790 an ounce in many, many years. It is so cheap. Buy stuff when it’s cheap, sell it when it’s expensive. It is not complicated.
Maurice: You’ll learn that in a book written by Bob Moriarty entitled “Nobody Knows Anything.” Bob, we’ll get to that in just a second. Before we leave here, full disclosure, Miramont Resources, Irving Resources, and Novo Resources, all three are sponsors of both 321 Gold and Proven and Probable, and by the way, unbeknownst to you, Bob, I will be interviewing Bill Pincus, CEO for Miramont Resources, this coming Friday.
Bob: Good. That’s going to be a must listen to. I talked to him a few days ago. I was nibbling at the shares at 13 and 14 cents, and, obviously, word was getting out because the stock, literally, has doubled in 10 days. They have a brilliant future ahead of them. Peru can be a difficult country to deal with. Bill Pincus has it totally under control. They should have been drilling six months ago, and they didn’t, and it’s no big deal, and they will be drilling shortly.
Maurice: Moving on to physical precious metals. You wrote a piece, recently, which is a must read, entitled “These 113 Analyst Believe Gold Will Go Parabolic to Three Thousand or More.” What compelled you to write this piece, and why now?
Bob: Well, here’s what’s very funny. I didn’t write the piece. The piece came out in 2011, okay. Now, I had been contacted in 2011, and the woman who wrote the piece wanted to know my prediction for gold, and I said, “Well, I’ll be happy to give you a prediction for gold.” “Tell me what the dollars going to be.” And she said, “Well, I have no idea what it’s going to be.” And I said, “Well, how can I tell you what gold’s going to be if you can’t tell me what the dollar’s going to be, because gold is the inverse of the dollar now.” We forget this, and we shouldn’t because it’s so basic. Anytime you’re talking about the price of any commodity, you’re talking about the commodity, and you’re talking about the currency it’s quoted in. Now, the funny thing is, gold had been up 12 years in a row, and everybody in the industry wanted to come out with an outrageous price.
Do you happen to know what the price of copper is today?
Maurice: $2.85 per pound.
Bob: From a mathematical point of view, if you wanted to predict the price of copper six months from now, from a mathematical point of view, what price should you predict? Because everything has to do with probability and permutations. If you know the price of copper, it’s $2.85 today, and you want to predict the price from six months from now, mathematically speaking, ignore your opinion, what price should you predict? $2.85.
Maurice: And that being because?
Bob: Everything goes up. We know that. And, everything goes down. And that fact of the matter is, all prices wobble up and down, and we forget that because we think, “I really like gold. I really like silver. I really like platinum. Therefore, it should go up every single day.” Well, markets don’t work that way. “Well, if it doesn’t go up every single day, it’s proof somebody’s manipulating it.” Well, actually, everything’s manipulated, so it’s not proof of anything.
What we forget that all of this variation in price has nothing to do with the commodity, and everything to do with the value of the dollar.When you include inflation, the value of the dollar changes every single day. Between noon today and noon tomorrow, the value of the U.S. dollar will change 10,000 times. Now, that’s actually insane from an economist point of view. If you’re a Martian and you came to earth and you found out the currency changed its value 10,000 times in a day, the Martian would say, “You know, you guys are all nuts down here,” and he would be correct.
But, in 2011 everybody watched gold go up 12 years in a row, so they thought, “well, mathematically, if it’s gone up 12 years in a row, that means it’s going to go up another 12 years in a row.” And they forgot things go up and things go down. It’s very funny because you look at those predictions seven years later, and we’ve got $1,200 and something gold, and you realize that people were being silly in their predictions. There are no experts, and there are no gurus, period.
Maurice: But, Bob, there is a way to navigate and make the value proposition, actually, work better for you, and I want to ask you this here. So, regarding physical precious metals, can you share with us, and you already have, but tell us why? What are you buying right now? You’re not buying gold.
Bob: No, as a matter of fact I sold gold here recently. This goes back to my basic thesis, and it’s the heart of the book, and it’s very important to understand. You buy things when they’re cheap and you sell them when they’re expensive. The ratio of silver and gold has varied from about 16:1, to 101:1 over the last hundred years. For 50 of those years, the price of gold was fixed. And for 50 of those years, the price gold and silver was variable. So, that should give you a good idea of the range. Now, the average over the last 100 years been 54:1; silver has gotten very cheap, else it has, literally in the last week where it was 86:1, and you go back to 2011, it got down to about 32:1 where silver was very expensive.
Everybody makes investing way too complicated because the first mistake they make is they listen to people who feed their fantasies. Okay. Would you vote for an honest politician?
Maurice: My answer is, I would.
Bob: If you voted for an honest politician, how many votes would he get in total?
Maurice: It sounds like probably would just be myself.
Bob: That’s correct, one vote. Politicians, television preachers and most financial analyst make their money, get their power, by feeding people’s fantasies. They tell people what they want to hear, and you’re always comfortable. If you got a certain belief set, if you believe that Catholics are horrible people, you want to go into a Baptist Church and listen to them talk about Catholics. If you think Muslims are horrible people, you want to go into a Catholic church and hear them talk about Muslims. We have prejudices. We have biases, and we listen to those people who feed those biases. I listen to TV preachers, and I’m sitting here thinking, how the hell could anybody listen to that unadulterated horse shit and send their money to these fools. But, the fools are the people in the audience throwing hundred dollar bills at people for telling what they want to hear.
And when you look at the state of politics in the United States, my God, it’s embarrassing. I mean, I can tell you because I spend a lot of time outside the United States, the rest of the world’s looking at the American political system saying, “You know, those people have gone off the deep end. They’re all crazy,” and they would be right.
Maurice: You know, what’s very important for our audience to understand here, is again, you didn’t say that silver is going to a certain numerical value. You just looked at the ratios between that and gold. Completely different perspective. I can share prior to me entering the public domain, I would listen to someone that would feed my paradigm, but silver is being manipulated, at the time, this is me 10 years ago entering the precious metals industry, and that silver’s going to hit this parabolic number of $150 to $200 any day now because of the Federal Reserve. And, that was my reasoning for purchasing physical silver, and then, I had the opportunity to be introduced to the likes of your work, and I shifted that paradigm, and took a more responsible approach, and I appreciate you so much sharing that. It’s a lesson that we all can learn from, and again, to learn more about lessons like that, the book that you’re referring to is “Nobody Know Anything.”
Bob: But, it’s as simple as you should buy what’s cheap, and you should sell what’s dear. Right now, silver’s cheap, gold’s expensive. Now, I’m not predicting $50,0000 silver. I’m not predicting $200 gold. I’m not predicting anything. I’m taking facts. The ratio has been 16:1, to 101:1, over 100 years. That should be the parameters. The average has been 54:1. Silver has spent less than 1% of the time over the last 100 years above 86:1. All investing is based on mathematics at its heart. A mathematical point of view, the chances that you’re profiting by buying silver and selling gold is 99%, and those are good odds.
Now, do I give a damn if silver goes down tomorrow? No. Okay. Same thing with platinum. My God, platinum’s the cheapest relative to gold it’s ever been in history. Yesterday, it was $460 an ounce cheaper than gold, yet for most of history since it was discovered in the 18th century, platinum’s had a premium to gold. So, buy platinum and sit.
Maurice: That’s exactly what we’re doing. We’re purchasing, very aggressively, both of those metals. May I ask you this as well? When you’re looking at buying your silver, are you looking at 100 ounce bars? Do you like government minted coins? Do you like rounds, junk silver? Tell us what you’re buying.
Bob: It’s funny you say that. I am cheap. Okay. Silver is silver is silver, and somebody contacted me and he had a good deal on 100 ounce bars. So, I bought 100 ounce bars. But, I would buy whatever is cheap. It’s all the same silver.
Maurice: Much agreed. I know some people have a certain perspective on getting government minted coins versus rounds, which are private minted coins, and I didn’t know if you had a particular interest in either one of those two.
Bob: It’s probably a good idea to have a variation. You can buy a tank of gas with a one ounce silver coin, but you can’t buy a tank of gas with a 100 ounce silver bar.
Maurice: True indeed. Bob, let’s shift our focus a little bit on something you and I both like to discuss as well, and let’s compare precious metals now with a different type of coin, bitcoin.
Bob: No. No. No. No. No. You mispronounced that word.
Maurice: I certainly did. Please share with the audience. What is the appropriate name for this.
Bob: Bitcon.
Maurice: And how rare is Bitcon, by the way.
Bob: How rare is salt water in the ocean.
Maurice: Well, I would say there’s a number of variations. Could you share with us, how many variations are there of Bitcon?
Bob: 2,513, roughly.
Maurice: And, isn’t that part of one of the big marketing aspects of Bitcon is that it’s supposed to be rare?
Bob: That’s not rare. You can’t have 2,513 variations and be considered rare.
Maurice: A year ago we had you on our show, and I believe at that time, we were looking at a $13,000 to $14,000 in U.S. currency on Bitcon, and today, we’re looking at $3,400. Is that correct? And, your analysis at that time, it was going to go its intrinsic value of zero. So, it appears to be heading that direction.
Bob: Allow me to ask you a question, because actually, we’re lower than $3,400 right now. If people would take the knowledge that they have, and their common sense, and some logic, they wouldn’t need to listen to experts. They wouldn’t need to listen to gurus. What is the value of a 99 cent stuffed toy?
Maurice: At the current market price, then it would be 99 cents.
Bob: Okay. What is the value of a Beanie Baby?
Maurice: Assuming that is the same toy that you’re referring to, then I would say 99 cents.
Bob: Everything, eventually, returns to its real value. Beanie Babies were going for thousands of dollars because, supposedly, they were rare, and it was this everybody wanted to jump in and everybody wanted to collect, and they thought they were valuable because they were rare. They were 99 cent stuffed toys.
Bob’s Wife: And we collected them.
Bob: That’s my wife and Mr. Brown.
Bob’s Wife: We got to them.
Maurice: And, introducing into the conversation, Bob, who do you have there with you?
Bob: Oh, that’s my wife, Mr. Brown, her pet stuffed sheep.
Maurice: And, Mr. Brown, is he valued at 99 cents as well?
Bob: No. He’s valued a lot higher than that. If my wife had the choice to get rid of me or get rid of Mr. Brown, it’s like no choice at all. Let’s go back to Bitcon and Beanie Babies. Which of those have value?
Maurice: Assuming for a child, they have some type of intrinsic value, but to someone purchasing it, I guess the current market price.
Bob: Well, no. Current market price could be absolutely incorrect.
Maurice: That’s correct because the value at one time was significantly higher.
Bob: Correct.
Maurice: Bob, you make a good point there.
Bob: The strange thing is, when Beanie Babies were selling for thousands of dollars, it was because they were mispriced because everybody was chasing the fear of missing out. You’ve must have Beanie Babies was the narrative at the time. The key here is, at the very worst, Beanie Babies still are 79 cent, or 89 cent, or 99 cent toys. So, let’s take that over to Bitcon and the 2,513 variations. What real value did they have? What intrinsic value is there there?
Maurice: I don’t see one.
Bob: Well, yeah. I see one. I know exactly what the real value is.
Maurice: And what is that?
Bob: You can too if you think about it.
Maurice: Alright, please share with us, sir.
Bob: Zero.
Maurice: That was my point.
Bob: You said you didn’t see it.
Maurice: My apologies, I was inferring, zero.
Bob: I went through and I re-read some of what I was saying last December. I did conducted a number of interviews because I was totally convinced Bitcon was at the top. I sought every measure that you would use to call the top of a bubble in December, but there were only 1,300 or 1,400 variations of Bitcon a year ago. That’s almost doubled, yet the price of Bitcon has gone from $20,000 to $3,400. Bitcon gone down over 80%, but is there anything preventing it from going to zero? Actually, the only thing preventing it is the number of fools in the world who still believe there is some value there.
There is no value there. There is nothing now. There was nothing a year ago, and there’s going to be nothing 10 years from now. Bitcon doesn’t have the value of a Beanie Baby, and this electronic Beanie Baby made of bits and bytes of no particular value, and the mere fact that it’s the biggest bubble in world history, okay, should tell you something. But, over $700 billion disappeared into Bitcon heaven.
Maurice: It’s important to note, as you were speaking here, I’m thinking, Bitcon, and a con artist tries to emulate and fool. When I look at every image I ever see of Bitcon, they make it look like a gold coin.
Bob: They make it look like a coin and the funny thing is, there weren’t any coins. There wasn’t anything.
Maurice: Absolutely. And, then they also use mining terms, like you’re mining bitcoin. That’s what imposter does. An imposter, as we’re referencing it appropriately here, Bitcon, the name fits very well.
Bob: But, here’s what really funny. There were two arguments. One is, that it’s some kind of electronic money, which it’s not. And the other is that it’s rare, and it’s certainly not rare, not with 2,513 variations of it. People are starting to wake up. But, it has been fraud from the get go. It was a bubble. The current bubble right now is marijuana. And, I’ll go you one better, and you’re going to have to guess at the answer here. What’s going to be the big bubble in 2019, or 2020, and 2021?
Maurice: Big bubble. You’re putting me on the spot here.
Bob: Damn straight I am.
Maurice: Let me ask you this then. Are we referring to a natural resource here, by chance?
Bob: Yep.
Maurice: For some reason, my initial instinct is saying lithium.
Bob: It’s already been on the bubble.
Maurice: Alright. If not lithium…
Bob: This new bubble is absolutely the equivalent of Bitcon and marijuana. We’re going to have a bubble that’s just going to go sky high. Everybody’s going to jump into, everybody’s going to think it’s the greatest thing in the world, and everybody’s going to buy it, and they’re going to drive the price up right to the root. What is it?
Maurice: Then, if it’s not lithium, then how about vanadium?
Bob: How about gold?
Maurice: Gold. Interesting. I was thinking more of on the base metals side here. Okay.
Bob: Here’s what’s crazy. Can you name a commodity that is incapable of going in a bubble?
Maurice: No, sir.
Bob: We’ve had stock market bubbles. We’ve had real estate market bubbles. We’ve had Bitcon bubbles. We’ve had marijuana bubbles. We had a silver bubble in 1980. Gold is going to have a bubble. Period. But, the purpose for me writing the book “Nobody Knows Anything” was to allow people to learn that they’re capable of thinking for themselves. There is going to come a time when gold’s expensive, silver’s expensive, platinum’s expensive, palladium’s expensive, rhodium’s expensive, and what do you do when they all get expensive?
Maurice: You should sell.
Bob: You better sell.
Maurice: Bob, as always, thank you for sharing your insights. Last question. What did I forget to ask?
Bob: You forgot to ask me about the book, “How to Invest In Natural Resource Companies.”
Maurice: Absolutely. What can you share with us?
Bob: What book?
Wife: What book?
Maurice: The book on “How to Invest In Natural Resource Companies.”
Bob: I think that’s a great idea. I think somebody really needs to dig in, get to work and start writing the book.
Maurice: Can you give us an update on that person who might be writing that book?
Bob: You’re coming in really broken. I’m having a hard time hearing you.
Maurice: Bob, you’ve got fill us in here. You’ve shared with us over a year ago that you’ll be writing a book, and a number of speculators have been waiting.
Bob: I can see your lips move, but I can’t hear anything you’re saying.
Maurice: For audience members, he’s pulling my leg here, and pulling your leg as well.
Bob: I have all the intentions in the world. I’ve started the book. I will do it.
Maurice: And you want to leave it at that? How about for 2019? Is that on the outlook there? Is that something on the horizon that. . .
Bob: Yeah. Yeah. 2019’s good. It give me a lot of time to come up with new excuses.
Maurice: Okay. Well, before we leave here, I reference Bob Moriarty’s two books, “The Art of Peace,” and “Nobody Knows Anything.” You can order your copy under our education tab. Proven and Probable does not receive any financial for selling or advertising. But, we see these books as a must have for your library. We’ve benefited financially from applying the axioms in the book. Bob, for someone listening who wants to get more information on your work, please share the websites.
Bob: 321 Gold, and 321 Energy. They’re free sites, and they are valuable.
Maurice: And, if you’re looking to sell or buy physical precious metals, we welcome a conversation. Please email me at maurice@milesfranklin.com or call me directly at 919-274-5680. And last but not least, please visit our website www.provenandprobable.com where we interview the most respected names in the natural resource space. If you would like to have a discussion regarding precious metals, please contact us at maurice@milesfranklin.com.
Bob Moriarty of 321 Gold, and 321Energy.com, thank you for joining us today on Proven and Probable.
Speaker 4: Thank you for joining us today on Proven and Probable. Remember to like and subscribe for more conversations with the most respected names in the natural resource space. Check out our website at www.provenandprobable.com. The information presented on Proven and Probable is provided for educational and informational purposes only without any expressed or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The information is not intended to be and does not constitute financial, investment, or trading advice, or any other advice. You should not make any financial, investment, or trading decision based on any of the information presented without first undertaking independent due diligence and consultation with a professional broker of competent financial advisor.
Bob and Barb Moriarty brought 321gold.com to the Internet almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
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.

Disclosure: 

1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Miramont Resources, Irving Resources and Novo Resources. 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: Miramont Resources, Irving Resources and Novo Resources are sponsors of 321 Gold and/or 321 Energy.
2) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Irving Resources and Novo Resources. 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: Miramont Resources, Irving Resources and Novo Resources are sponsors of Proven and Probable. Proven and Probable disclosures are listed below.
3) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click herefor important disclosures about sponsor fees.
4) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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Base Metals Exclusive Interviews Precious Metals

JAYANT BHANDARI | Trump: Why I am Increasingly a Fan, and about Resource Stocks

Trump: Why I am Increasingly a Fan

ValOro Resources (VRO), etc.

As time has gone by I have grown increasing respectful of Trump. Not only he is doing what he said he would, but he is also among those rare people who understand the problems that the West faces. Trump is having to deal with the massive problems that the earlier—short-terministic, populist and vision-less—regimes left behind. But people’s failure to put issues into perspective means that it is Trump who gets the blame. That is why I don’t like democracy, for most people use soundbite-level, isolated information—mostly rationalizations—to reach conclusions. Or more accurately they look for justifications for their emotions.
Despite all its flaws, the USA is still among the best places in the world.
As a child, I often dreamt of emigrating to America. America’s military-industrial complex rightly has a bad name. But, alas, if I had a switch to get rid of it, I would not use it. Without US interference, the world would be an extremely unstable place. For example, had the USA not interfered, Saudi Arabia, Iran, Iraq, Brazil, Libya, etc. would have all had nuclear weapons. Perhaps humanity would have seized to exist. Without US interference, the Third World tyrannies, tribal-warfare and massacres would have been much worse, which would have rightly kept their population-number under control, but also refugees would have flooded the West:

On investments…
Linked is a recent discussion with Cory Fleck on how I go about investing in the mining sector. In the same talk I mention a few stocks.
Here are some more that I like:

  • Novo Resources (NVO; C$1.95): At the current price, the market likely gives NVO value only for its cash and Beatons Creek project. The upside from conglomerate deposits is available mostly for free.
  • Altus Strategies (ALTS; C$0.045): I spent the last month in the UK, including visiting with ALTS management and some of its key shareholders. I am concerned about their G&A expenses, which have been too high for my comfort. But for now, the market capitalization is comparable to the share ownership that ALTS will eventually have of Canyon Resources, an ASX-listed company.
  • De Grey Mining (DEG; A$0.12): The situation here is similar to that of NVO, although I don’t know their management much. Their current market capitalization likely gives zero value to the conglomerate areas.
  • Amarillo Gold (AGC; C$0.20): AGC over the last few months has cleaned up their balance sheet by getting rid of the debt they had, sold a royalty to Royal Gold for a very good price, and have done a lot of work on the project. They currently have six drill-rigs at the project, drilling 15,000 meters. They expect new resources by the end of January 2019. Feasibility and basic engineering are expected in August 2019. The market is rightly worried about the country risk. And my superficial look at the latest financials tells me that their G&A expenses have gone up significantly. I hope they will be able to control it going forward.
  • ValOro Resources (VRO: C$0.11): VRO is being acquired. There is a nice arbitrage upside.
  • FPX Nickel (FPX; C$0.08): I am invested in this company not only because of the value I see, which might improve significantly when they have optimized the metallurgy, but also because their CEO, Martin Turenne, is one of the smartest young people I have known in the industry. He understands the macro issues driving the market and is a delight to discuss those issues with, which when the time comes, will enable him to look for the right majors to do off-take agreements with or to sell the project to.

On other matters…
Videos of last year’s Capitalism & Morality are now available. They are linked here.
The next Capitalism & Morality will be held on 3rd August 2019. Please register using the Paypal button on this page, if you haven’t already done so. One-third of the seats are already gone, and being a capitalist I do increase the ticket price—very substantially—as we get closer to the event.
Warm regards,

Jayant Bhandari

Associate: Rajni Bala

Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendation. I will not and cannot be held liable for any actions you take as a result of anything you read here. Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.

Categories
Base Metals Precious Metals Project Generators

MIRASOL RESOURCES | Mirasol Signs a Heads of Agreement with Newcrest Mining for the Gorbea Gold Projects in Chile and Announces Termination of the Zeus Agreement

VANCOUVER , Dec. 10, 2018 /CNW/ – Mirasol Resources Ltd. (TSX-V: MRZ, OTCPK: MRZLF) (the “Company” or “Mirasol“) is pleased to report that it has entered into  a non-binding heads of agreement (the “HoA“) with Newcrest International Pty Limited, a wholly owned subsidiary of Newcrest Mining Limited (“NCM“), for an Option to Farm-in on the Gorbea High-Sulfidation Epithermal (HSE) gold projects (the “Project“) in Chile , and is terminating the previously announced (news release February 26, 2018 ) NCM option agreement on the Zeus Project (Figure 1).

The Gorbea HoA is subject to NCM completing its due diligence review of the claims and the parties executing a formal option agreement (the “Agreement“) on or before January 15, 2019 or such later date as may be agreed. The key terms of the Agreement having been settled, the parties will execute the final Agreement once due diligence has been completed. Mirasol has granted an exclusivity period to NCM to complete these conditions.

The Gorbea Project comprises a package of projects totaling 26,684 ha, including the Atlas Au+Ag and the Titan Au (Cu) projects, located in the Mio-Pliocene age mineral belt of northern Chile.  The Gorbea properties were subject to a previous joint venture that was terminated in April 2018 , after the partner had incurred exploration expenditures in excess of US$ 8 million. The exploration identified a significant body of HSE gold mineralization at the Atlas project, which returned a drill intercept of 114 m grading 1.07 g/t Au, including 36 m grading 2.49 g/t Au (news release September 11, 2017 ). Mirasol is undertaking an integrated analysis of the extensive Atlas database and will provide a technical update on the project in the near term.

Option to Farm-in Agreement:

Under the terms of the HoA, NCM will have the right to acquire, in multiple stages, up to 75% of the Gorbea Project by completing a series of exploration and development milestones and making staged option payments to Mirasol. NCM has committed to spend a minimum of US$4 million and complete a minimum of 3,000 m of drilling over an initial 18-month period, subject to drill permitting timelines. NCM has assembled a Chilean based exploration team with significant HSE exploration experience and will operate the Gorbea exploration program.

Stephen Nano , CEO of Mirasol, stated that “we are pleased to again be partnering with the Newcrest team to explore some of our prospective Mio-Pliocene belt projects for district scale gold deposits.  Newcrest has allocated a combined US$7.3 million in separate agreements, for the exploration of Mirasol’s Gorbea and Altazor projects over the next 12 to 18 months.  We are working with Newcrest to advance the permitting process for the Atlas project in the Gorbea package, with the objective of drilling during the southern hemisphere summer.”

Terms:

Option phase:

  • A US$100,000 cash payment upon signing the Agreement;
  • NCM has a minimum commitment to spend US$4 million and drill minimum of 3000m in the first 18-month exploration program;
  • NCM will operate the project and will receive a 5% management fee; and
  • At the end of the option phase, NCM will have the right to exercise the farm-in phase of the Agreement.

Farm-in phase:

  • Stage 1: If NCM elects to exercise the option to farm-in, NCM will make a cash payment to Mirasol of US$500,000 , and will have the right to earn 51% of the Project over a 4.5-year period (total 6 years) by spending an additional US$15 million (total US$19 million ), which includes a minimum drilling commitment of 6,000 m on the Project to be completed within the first 2 years;
  • Stage 2: If NCM elects to proceed to Stage 2 of the farm-in, it will make a cash payment to Mirasol of US$650,000 and have the right to earn 65% of the Project over an additional 1-year period (total 7 years), by funding the delivery of a positive preliminary economic assessment, in accordance with NI 43-101 on a resource of not less than 1,000,000 ounces of gold at a cut-off grade of 0.30 grams per tonne (g/t);
  • Stage 3: If NCM elects to proceed to Stage 3 of the farm-in, it will have the right to earn 75% of the Project over an additional 2-year period (total 9 years) by funding the lesser of either: (i) additional expenditures after the completion of Stage 2 of US$100 million ; or (ii) the delivery of a positive bankable1 Feasibility Study, in accordance with NI 43-101;
  • Stage 4: After completion of Stage 3, Mirasol can elect to: (i) contribute its proportionate share (25%) of further development expenditures, (ii) exercise a one-time equity conversion option to convert up to 10% of its equity into a NSR royalty at a rate of 2.5% equity per 0.5% NSR royalty (max 2% NSR royalty) and then contribute funding to advance the Company’s remaining project equity interest; or (iii) dilute. The rate of dilution royalty for Mirasol (up to 2% and triggered upon dilution of its interest to 10%) will be adjusted based on the percentage royalty acquired as part of the equity conversion option. NCM will hold a 0.5% NSR buyback right at fair market value exercisable on the conversion royalty or the dilution royalty.

After NCM has met the minimum commitment in the Option phase, NCM may terminate at any time without liability. In the event that NCM should complete Stage 1, but elect not to proceed to Stage 2, then NCM’s 51% interest shall be adjusted to a 49% interest. In the event that NCM completes Stage 2, but elects not to proceed to Stage 3, then NCM’s 65% interest shall be adjusted to a 60% interest and the parties may agree to halt further exploration or continue and contribute in proportion to their interests or be diluted.

The HoA also contains other customary terms including extension rights to increase the duration of each stage 1, 2 or 3 for cash payments to Mirasol and pre-emptive rights provisions should either party elect to sell its interest in the Project.

Early Termination of the Zeus Agreement:

The companies have also agreed to the early termination of the Zeus Option to Farm-in Agreement that was previously announced on February 26, 2018 . Under the terms of the Zeus agreement, NCM had a minimum spend commitment of US$1.5 million in the first 18-month exploration program. The balance of the minimum commitment expenditures for Zeus that have not yet been incurred, will be applied towards the $4 million initial commitment for the Gorbea Project. NCM has also agreed to a US$200,000 early termination payment to Mirasol. Upon termination, NCM will have no retained rights in the Zeus project.

Mirasol wishes to thank NCM for its investment that has advanced exploration of the Zeus project.  Mirasol will report the exploration results from last season’s Zeus exploration program shortly. Mirasol has initiated the business development process to identify a new joint venture partner to continue exploration at the Zeus project during the 2019 southern hemisphere summer season. Mirasol maintains the view that Zeus is a prospective, underexplored, Au+Ag project located in prospective geological setting, 43km East of the Goldfields Salares Norte HSE project2 (of 3.7 Moz Au at 4.89 g/t Au and 49.5 Moz Ag contained within 23.3 Mt) in the Mio-Pliocene belt of Northern Chile .

About Newcrest Mining Limited

Newcrest is one of the world’s largest gold mining companies, operating five mines in Australia , the Asia – Pacific and Africa regions.  Newcrest has extensive experience developing and operating successful underground and open pit mines in culturally and geographically diverse environments. Newcrest seeks to identify and secure large mineral districts, or provinces, in order to establish long term mining operations.

About Mirasol Resources Ltd

Mirasol is a leading project generation company focused upon the discovery, and development of economic precious metal and copper deposits via a hybrid Joint Venture and self funded drilling business model.  Strategic Joint Ventures with major precious metal producers have enabled Mirasol to maintain a tight share structure while advancing its priority projects that are focused in high-potential regions of Chile and Argentina.  Mirasol employs an integrated generative and on-ground exploration approach, combining leading-edge technologies and with experienced exploration geoscientists to maximize the potential for discovery.  Mirasol is in a strong financial position and has a significant portfolio of exploration projects located within the Tertiary Age Mineral belts of Chile and the Jurassic age Au+Ag district of Santa Cruz Province Argentina .

Stephen Nano , President and CEO of Mirasol, has approved the technical content of this news release. Mr Nano is a Chartered Professional geologist and Fellow of the Australasian Institute of Mining and Metallurgy (CP and FAusIMM) and is a Qualified Person under NI 43 -101.

Under the terms of the pervious Gorbea Joint Venture (terminated in April 2018 ), all exploration was managed by the then joint venture partner. Pre-joint venture exploration on the projects was managed by Stephen C. Nano , who is the Qualified Person under NI 43-101.  Exploration data generated from the previous Gorbea Joint Venture program was reviewed and validated by Mirasol prior to release. The technical interpretations presented here are those of Mirasol Resources Ltd.

Mirasol applies industry standard exploration sampling methodologies and techniques. All geochemical rock and drill samples are collected under the supervision of the company’s geologists in accordance with industry practice. Geochemical assays are obtained and reported under a quality assurance and quality control (QA/QC) program. Samples are dispatched to an ISO 9001:2008 accredited laboratory in Chile for analysis. Assay results from surface rock, channel, trench, and drill core samples may be higher, lower or similar to results obtained from surface samples due to surficial oxidation and enrichment processes or due to natural geological grade variations in the primary mineralization.

Forward Looking Statements: The information in this news release contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. Mirasol disclaims any obligations to update or revise any forward looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

1

“Bankable” is defined as suitable to be submitted to a recognized financial institution as a basis for lending funds for the development of a mine

2

Gold Fields. (2017). Integrated Annual Report 2017.

SOURCE Mirasol Resources Ltd.

View original content: http://www.newswire.ca/en/releases/archive/December2018/10/c5011.html

Categories
Base Metals

FISSION 3.0 Targets Shallow, High-Grade Prospects with 18 Hole Program

TSX VENTURE SYMBOL: FUU 

Drilling to Commence on Wales Lake in December

KELOWNA, BC , Dec. 11, 2018 /CNW/ – FISSION 3.0 CORP. (“Fission 3” or “the Company“) is pleased to announce its Athabasca Basin winter exploration drilling program. This winter, the company plans to drill approximately 4,400 meters in 18 holes on 4 of its high-priority projects, prospective for hosting shallow, high-grade mineralization. The projects are located in 3 major regional districts of the Athabasca Basin: the emerging PLS area uranium camp in the southwest, the historic Key Lake area mining camp in the southeast and also the northern area of the Athabasca Basin. The program will shortly commence with two holes on the Wales Lake property located in the PLS area, where surveys have identified high-priority targets.

Fission 3.0 Corp. (CNW Group/Fission 3.0 Corp.)

View photos

 

Fission 3.0 Corp. (CNW Group/Fission 3.0 Corp.)

News Highlights

  • Multi-project winter drill program will focus on four key projects in the Athabasca Basin: Wales Lake, PLN, Key Lake and Cree Bay
  • Successful surveys and ground-prospecting have generated high-priority targets on each project
  • Within the Athabasca Basin region, the company’s properties are all located in areas that are prospective for near-surface uranium mineralization
  • Program will commence in December 2018 at Wales Lake in the PLS Area – a district proven to host major, high-grade uranium deposits
  • Winter drilling will include:

Ross McElroy , COO, and Chief Geologist for Fission, commented,

“Having recently completed an $8M financing, Fission 3 has both the funds and the backing to aggressively explore multiple properties. Our award-winning technical team has built an exceptional portfolio in the Athabasca Basin region that encompasses emerging and historic major uranium mining areas, with a particular focus on the potential to host shallow, high-grade mineralization. This winter will see an exciting start to a strategic and systematic campaign to discover new occurrences of high-grade uranium mineralization on Fission 3’s projects in the Basin.”

Fission 3’s Portfolio Strategy. Within the Athabasca Basin region, the company’s properties are all located in areas that are prospective for near-surface uranium mineralization in both basement and unconformity hosted models. The emphasis for land selection has been on identifying shallow-hosted mineralization potential in conjunction with underlying structural and alteration features associated with appropriate lithologic units, with a focus on being near historic mining districts (such as Beaverlodge / Uranium City in north-western Athabasca Basin region and Key Lake area in the eastern Athabasca Basin region) or emerging major mining districts (such as the south-western Athabasca Basin region). As such, property locations tend to be proximal to the Athabasca Basin margins. Most properties are drill-ready with airborne and some ground geophysics completed in order to quickly vector in to target selection.

Further Details on Projects and Drill Programs

PLS Area

Located in the southwest region of the Athabasca Basin, the PLS area has been the focus of 2 of the most significant recent discoveries of high-grade uranium deposits; Fission Uranium’s Triple R and NexGen Energy’s Arrow deposits. The area is considered the most important, emerging uranium mining district of the Athabasca Basin. Fission 3 has a portfolio of 3 properties covering 83,763 ha in the region surrounding these major deposits; the Patterson Lake North package, including Patterson Lake North “PLN” and Patterson Lake Northeast “PLN-NE” is located immediately to the north of Triple R, while Wales Lake and Clearwater West properties surround the area to the west and south of Triple R.

During the winter season, drilling will focus on PLN and Wales Lake. While the bulk of drilling will focus on high-priority targets at PLN, starting in January 2019 , for logistics and seasonal considerations, the drilling will start off with testing two holes in December on Wales Lake – Block C.

Wales Lake:  The 100% owned Wales Lake property comprises 30 claims in 3 non-contiguous blocks totaling ~35,440 hectares and is accessible by road with primary access from all-weather Highway 955.  Similar to Fission Uranium’s PLS property, Wales Lake occupies the same stratigraphic position within the Clearwater Domain and represents relatively shallow depth basement hosted target areas outside of the margin of the Athabasca Basin. From west to east the 3 blocks are referred to as A, B and C respectively.  Block A is the westernmost and is located ~30km west of Fission Uranium’s flagship high-grade Triple R uranium deposit. It comprises 2 claims in ~2,689 ha.  Block B is located a further ~6km to the east and comprises 4 claims in ~10,549 ha. Block C is the both the eastern-most and southern-most as well as the largest block and is located a further ~7km to the southwest. It comprises 24 claims in ~22,201 ha, and is located ~25km south of the Triple R deposit.

Wales Lake Drilling: The first 2 holes of a planned minimum of 4 holes – 1,000m program for Wales Lake – Block C will be drilled in December, with additional drilling planned for an upcoming summer program.  High-priority drill targets were developed using both airborne and ground geophysics surveys that were conducted by the Company.  A helicopter-borne airborne geophysical versatile time domain electromagnetic “VTEM” survey that was flown in 2017 over Block C identified numerous electromagnetic “EM” conductors in a structurally complex setting.  The survey showed multiple parallel and offset conductors in and along the edge of magnetic low corridors thought to represent either reactivated shear zones and/or pelitic lithologcial corridors, both known to be favorable to hosting uranium mineralization. Importantly a major structural flexure in the geology changes strike from NW-SE to NE-SW trend as is clearly seen in the magnetic survey.  This feature may represent a setting favorable for developing faulting and hydrothermal alteration, which are key components to developing high-grade uranium mineralization. The Triple R deposit, located ~30km to the north of this flexure represents a similar geological setting. A 21 line-km small moving loop ground EM survey was completed in November 2018.  The ground surveys consisted of collecting single lines of TDEM data over each of 12 airborne VTEM targets, to provide the detailed data required to prioritize drill targets.

PLN Package: The PLN package consists of a total of 36,537 ha in 37 mineral claims of which Fission 3 has a 90% interest in 27,408 ha (10 mineral claims) and a 100% interest in an additional recently staked 9,129 ha (27 mineral claims).  Azincourt Energy Corp. holds a 10% interest in 27,408 ha of the PLN property.

The property, just inside the Athabasca Basin, is prospective for high-grade uranium at shallow depth. The property is adjacent to, and part of the same structural corridor as Fission Uranium’s PLS project, host to the Athabasca’s most significant major, shallow-depth, high-grade uranium deposit.  Previous drill results show large scale potential. Drilling in 2014 identified a mineralized corridor associated with the A1 ~700m in strike length, where results returned significant mineralization and pathfinder elements (uranium, boron, copper, nickel and zinc) and included hole PLN14-019 which intercepted 0.5m at 0.047% U3Owithin 6.0m @ 0.012% U3O8.

PLN Drilling: A minimum 8-hole, 3,250m drill program has been approved by the PLN joint venture for 2019.  Five holes in 1,850m will be drilled during the winter program.  All five holes will test the A1 conductor stepping out 25m and 50m north along strike of prospective hole PLN14-019, targeting the same relative positioning of the mineralized pelite.

Key Lake Area

The Key Lake area is an important historic uranium mining district located in the southeast region of the Athabasca Basin. The Key Lake operations is owned by Cameco Corp. (83%) and Orano Canada Inc. (17%) and hosted the former Key Lake mine, which produced 208 million pounds of uranium between 1975 to 1997 and is home to one of the largest uranium mills in the world.  The key Lake mill processed ore from the McArthur River uranium deposit, until Cameco announced in 2018 that McArthur River mining would be suspended indefinitely due to sustained low uranium prices.  The area is considered highly prospective to discover significant new uranium occurrences. Fission’s  Key Lake Area Property portfolio consists of the Ford Lake, Gryphon West, Hobo Lake, Karpinka Lake and Morin Lake properties and totals 24,490 ha in 5 separate, non-contiguous properties. Locally the Key Lake area lies within the Key Lake Shear Zone (“KLSZ”), which is characterized as a broad northeast-southwest trending primarily metasedimentary corridor, and is expressed as a magnetic low in geophysical surveys. Within the KLSZ corridor numerous basement EM conductors are present.

Key Lake Drilling: Winter drilling on the Hobo Lake and Karpinka properties are planned for March. The current plan calls for 1,300m in 9 holes. Several holes will target major structural jogs in conjunction with moderate to high conductivity bright spots and historic gravity lows. These are features commonly associated with uranium mineralization. Other drill holes will test nearby elevated boron and associated potential alteration halo, as well as up-dip historical elevated uranium between graphitic gneiss and granitic contact near bedrock surfaces from historical drilling.

Cree Bay:  The Cree Bay property consists of 18 claims covering 14,080 ha located on the northern edge of the northern Athabasca Basin.  The town of Stoney Rapids is 20km to the north and the historic Nisto uranium mine is 13km to the northeast.  Previous work included a high resolution airborne magnetic and radiometric survey flown in 2015 and a ground DC resistivity survey in 2017.

Cree Bay Drilling:  The current plan calls for 750m in 2 holes. The Cree Bay property is on a nearby parallel trend with the Nisto Deposit where drilling by Forum Energy Metals Corp., (formerly Forum Uranium Corp.) encountered strong clay alteration and 50m faulted offset associated with a major structural lineament thought to trend down through the Cree Bay property.  A fence of two holes will be drilled on the same section targeting basement conductive features and resistivity low from DC resistivity survey conducted in 2017 on the northeastern resistivity grid.  The resistivity low could indicate clay alteration associated with reactivated faults, often the focus of uranium mineralization fluids.  A 9 line-km DC Resistivity ground geophysics survey will be conducted which will extend the existing northern resistivity grid to the southwest.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ross McElroy , P.Geol. Chief Geologist and COO for Fission 3.0 Corp., a qualified person.

About Fission 3.0 Corp.

Fission 3.0 Corp. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Kelowna, British Columbia . Common Shares are listed on the TSX Venture Exchange under the symbol “FUU.”

ON BEHALF OF THE BOARD                                  

“Ross McElroy”
                                                
Ross McElroy , COO         

Cautionary Statement: Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, 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”. Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Fission 3.0 Corp. which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and Fission 3 Corp. disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Fission 3.0 Corp.

Categories
Base Metals Energy Exclusive Interviews

MIRAMONT RESOURCES | On the Search for a Major Copper Porphyry in Peru

Bill Pincus the President, Director, and CEO of Miramont Resources sits down with Maurice Jackson of Proven and Probable to discuss the latest exciting developments at the Cerro Hermoso and Lukkacha Projects. Specifically, we will highlight the recent press release the highly anticipated drilling permits for Cerro Hermoso.

VIDEO

AUDIO

TRANSCRIPT

On the Search for a Major Copper Porphyry in Peru 
Contributed Opinion

Source: Maurice Jackson for Streetwise Reports  (12/10/18)

Maurice JacksonBill Pincus, president and CEO of Miramont Resources, speaks with Maurice Jackson of Proven and Probable about his company’s latest exploration efforts in Peru.

Miramonte Cerro Hermoso

Miramonte Cerro Hermoso
Maurice Jackson: Joining us for a conversation is Bill Pincus, the president, director and CEO of Miramont Resources Corp. (MONT:CSE; MRRMF:OTCQB), which is developing new opportunities in world-class mining districts.
Bill, we have some great news to share with current and prospective shareholders, but before we begin, for first-time listeners, please share who is Miramont Resources, and what is the thesis you’re attempting to prove?
Bill Pincus: Miramont Resources is a junior exploration company. We have two copper gold projects in Peru. Both are relatively early-stage prospects. One (Cerro Hermoso) is ready to drill, and one is getting near ready to drill, so what we’re looking for, what our thesis is, we’re looking for large bulk tonnage that has the potential to be very significant type ore deposits.
Maurice Jackson: Bill, provide us with some historical context on the region in Peru where Miramont has its projects.
Lukkacha
Bill Pincus: We’re working in Southern Peru, which is known as one of the world’s great copper provinces. You have the giant mines of Toquepala, Cuajone, Cerro Verde, and Quellaveco is now being developed. These all produce hundreds of thousands of tons of copper metal annually. Our project, Lukkacha, is located right in this belt. We’re about 10 kilometers from one of the newer porphyry projects, by, I believe it’s Anglo American. But most importantly, we’re in one of the world’s great copper regions, so as an exploration company, we are the hunters, and if you’re going to hunt the elephants that we’re looking for, you want to be in the elephant country, and that’s exactly where we are.
Maurice Jackson: Walk us through both of your projects and the value propositions they present to the market, beginning with Cerro Hermoso.
Two prospects
Bill Pincus: Cerro Hermoso is our most advanced project. This is the one that we will begin drilling early next year. When we first started looking at it, we were looking at it because of some pretty significant gold values we were finding in rock chip and rock channel samples. But as the project has emerged over the past year, with our continued exploration, it’s really turned into a copper polymetallic project, copper-gold-silver, as well as some lead and zinc. But I think copper is the primary metal.
And it has the potential to be a very, very significant, large bulk tonnage deposit. That’s what we’re exploring for, and that’s what we hope to find. So, you know, we hope when we begin our first round of drilling, a discovery round of drilling, to identify significant subsurface mineralization.
Maurice Jackson: Tell us about your second project, Lukkacha.
Bill Pincus: Lukkacha, which is further to the southwest of Cerro Hermoso, is a classic copper porphyry system. We have now concluded a round of both reconnaissance mapping, followed up with detailed mapping, and what’s emerging is the classic picture of a copper porphyry system, in terms of the typical alteration patterns you would expect, the typical mineralization patterns you would expect, and the typical geologic patterns you would expect. So, we would like to do a little bit more work on this. We’ve done detailed geochemical sampling, detailed mapping, but we do want to take it to a round of geophysics.
We have drill targets emerging, but obviously, we want to refine that before we actually drill. So, if all goes according to plan, we think we’re looking at a completely new porphyry system, un-drilled, that is exhibiting many of the characteristics of similar systems nearby.
Maurice Jackson: On the 4th of December, Miramont received some great news for current and prospective shareholders. What can you share with us?
Bill Pincus: We got our drilling permit. This is for the Cerro Hermoso property. To be very honest with you, the process was just a tad longer than we had anticipated, and we had to jump through a few more hoops than we anticipated, but we did get our drilling permits. We’ve been in touch with the driller, and we should have a rig on site, ready to turn, in the second half of January, 2019.
Maurice Jackson: Mr. Pincus, I’m going to have a multilayered question here for you. What is the next unanswered question for Miramont Resources, when can we expect an answer, and what determines success?
Bill Pincus: Well, the next unanswered question is what do we find in the Cerro Hermoso drilling? We’ve done everything we possibly can, and we have great drill targets, but you know, the true test is what’s in the subsurface. So, that’s the next unanswered question. As I said, we should start drilling late January, so I would expect answers probably early March.
Maurice Jackson: And what will determine success, sir?
Bill Pincus: Well, success will be this is the first round of drilling in a project that’s never been drilled. You know, a great lengthy ore section would be huge success, but I think we have to get enough intercept and grade to make us firmly believe that our geologic model is correct, and that we can move forward and predict what will happen in the future from there.
Maurice Jackson: Switching gears, talk to us about the capital structure.
Bill Pincus: Miramont has 50 million shares outstanding. We have warrants priced at 45 cents that expire in Nov.19. We closed yesterday, at 26 cents Canadian. We have no debt, so I would call it a clean, simple capital structure. Most of the shares are fairly tightly held.
Maurice Jackson: What keeps you up at night that we don’t know about?
Bill Pincus: Unanswered questions. You know, this project, Cerro Hermoso, has been really a lot of fun for me, and it’s followed a pattern that I think is characteristic of excellent prospects, which is every time we go there, every time we take another look, every time we investigate something, we find something new that encourages us that there’s significant mineralization in the system. You know, we’ve done all that work. Now, we had to test that with a drill rig, and I guess that’s what keeps me up at night. What are we going to find with that drill rig?
Maurice Jackson: Last question. What did I forget to ask?
Bill Pincus: Well, I’m not sure. I can’t think of anything off the top of my head. I would say that if any readers have any questions, they can get onto our website, where they could book a phone call with either myself or our vice president, Tyson King, 604.398.4493, and we’ll be able to answer any follow-up questions they may have.
Maurice Jackson: And Bill, in regards to that, if investors do want to get more information about Miramont Resources, please do share the website address with us.
Bill Pincus: Quite simple, www.miramontresources.com.
Maurice Jackson: And as a reminder, Miramont Resources trades on the CSE symbol MONT, and on the OTCQB symbol MRRMF. Last but not least, please visit our website www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.
Bill Pincus of Miramont Resources, 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.

Disclosure: 

1) Bill Pincus: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Miramont. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: Miramont.
2) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: No. 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: Miramont is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
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