April 8, 2014
There are a lot of business models for junior mining companies. Not all work all the time and when times are tight Bayhorse (V.BHS) CEO Graeme O’Neill wants “to deliver value to shareholders as quickly as I can.”
“We have to get out of the fund and spend cycle. Get production at a reasonable rate.” explained O’Neill. At the same time, O’Neill is a realist. “We got our barite mine permitted in 8 months; but the market crashed and no one cared.” (The mine was spun out to German interests and Bayhorse expects production to commence later this year. Bayhorse retained a 30% net profit arrangement with the new operator.)
The sale of the barite interest meant Bayhorse was positioned to act when it was presented with the Bayhorse silver mine opportunity in Eastern Oregon by American Cordilleran Mining Corp, (AMCOR). read more…Jay Currie
April 4, 2014
In this market simply surviving is an achievement. For Beaufield Resources (V.BFD) survival has meant running the company “pretending we don’t have any money” says CEO Jens Hansen who quickly added that, in fact, the company has between 3 and 4 million in its treasury.
Beaufield has been around since 1986 but in the late 1990’s Hansen took it over and, as he puts it, “fixed it up.” Part of Beaufield’s rehabilitation has been to acquire a portfolio of properties, some to develop, some to hold.
March 18, 2014 Beaufield released drill results for the Launay Gold Project in the Province of Quebec. This active property is in the Abitibi gold belt. Beaufield reported results which included 4.04 gpt over 15.52 meters. read more…
April 2, 2014
When Sandstorm Gold took over Premier Royalty, Abraham Drost had the opportunity to move from the structured financing gold space to taking on development of a gold mining operation at Bruce Reid’s Carlisle Goldfields (T-CGJ). Reid and Drost had been talking for a couple of years but it was not until December of 2013, when Carlisle put out a Preliminary Economic Assessment, that Drost could see the promising economics of the Lynn Lake Manitoba gold properties.Recognizing a deep value opportunity, Drost became a Director and CEO of Carlisle in February 2014.
“Lynn Lake has several brownfields projects,” explained Drost, “There is appreciable production history. In the 50’s and 60’s there was copper nickel production by Sherritt-Gordon Mines. Gold was produced by SherrGold at the MacLellan Mine in the 1980s though gold production ceased in 1989 due to low prices. A company called Blackhawk Mining also produced 400,000 ounces from two small open pits from what is now our Farley Lake Mine.” said Drost. A recent Preliminary Economic Assessment envisions open pit mine production on the Farley Lake and MacLellan deposits, processed at a single mill and sequenced over a 12 year mine life producing 1.7 million ouinces of gold. read more…Jay Currie
March 25, 2014
If you want to make a lithium-ion battery (LiBs) you need a little lithium and a lot of graphite. Graphite is the anode material in the battery but not just any graphite. It must be flake graphite that can be economically rounded and purified to form spherical graphite “SPG” the product that is actually used in the LiBs.
March 19, 2014 Northern Graphite (V.NGC) announced that it had developed and successfully tested a proprietary process for coating the SPG which is the final step in the process. It is the only junior graphite company to have done so. In this release Greg Bowes, CEO, commented “natural SPG will be a major part of the solution going forward due to its significant cost advantage over synthetic products. Our goals are to increase that advantage through proprietary coating and purification procedures, and to provide the industry with a stable, secure source of anode material produced in an environmentally acceptable manner.” read more…Jay Currie
March 21, 2014
Metallurgy can make all the difference to the economics of a gold deposit. Orefinders’ (V.ORX) announcement that it achieved a 93% gold recovery rate on rock from the stockpiles at its Kirkland Lake Ontario Mirado stockpile was critical news for this junior.
In the March 12, 2014 release announcing the metallurgical results President Bill Yeomans said, “The metallurgy for the Mirado gold mineralization is excellent because of simple mineralogy with fine gold associated with pyritic stockworks with little or no quartz veining. Custom milling of this material is clearly an option for the company, representing a potential source of non-dilutive financing.” read more…Jay Currie
March 18, 2014
UPDATE:March 19 – Denison Mines Signs LOI to Acquire International Enexco – read full release.
Drilling for uranium in the Athabasca Basin in the far North of Saskatchewan is cold work. But for International Enexco (V.IEC) the winter drilling season has produced a tantalizing look at the basement rock 650 meters down at the Mann Lake Uranium project operated by Cameco. read more…Jay Currie
March 13, 2014
First off, construction when we talked to Coughlan at the beginning of March was 60% complete. “We’ll begin stacking ore in April and our goal is to be up and running with the first gold/silver pour towards the end of May.” read more…Jay Currie
March 12, 2014
All over the world there are core shacks, drill logs, aerial survey data and records of the millions of drill holes geologists have sunk into what they hoped would be mineral deposits. Is there a hydrothermal graphite deposit in this mountain of data?
Alibaba Resources is counting on a big reward, 2 million dollars, and crowd sourcing to find the graphite needle in the data haystack. read more…Jay Currie
March 11, 2014
Building an iron mine is about more than the iron ore deposit. Alderon (T.ADV) President and CEO Tayfun Eldem explains there are “Three pillars: power, transportation and shipping.”
With its February 25th announcement of a Power Purchase Agreement with Newfoundland and Labrador Hydro Alderon has secured its power requirements. “The Power Purchase Agreement was a key infrastructure requirement and is critical in securing the previously announced debt financing and we are very pleased to have finalized it,” said Eldem. read more…Jay Currie
March 10, 2014
In the new junior mining world new, more realistic, business models drive investment. For Philippe Cloutier, President and CEO of Cartier Resources (V.ECR) that means “giving investors an exit strategy and making money.”
As Cloutier puts it, you begin with “Location, location, location!”, in this case the prolific Abitibi Gold Belt in the mining friendly jurisdiction of Quebec. “When the last gold bull run occurred in 2003 the majors and juniors bet on projects from the Abitibi. These were old deposits. None were new discoveries.”
Just like the majors, Cartier is working on projects in the Abitibi in order to de-risk the possibility of a solid return. “This is an area with services and good infrastructure. There is a history of past production. Although it is not exotic it is rewarding.” read more…