Inventus trades heavily on Sudbury update

Inventus Mining Corp. [IVS-TSXV] shares advanced in heavy trading Monday January 13 after the company said it has updated the terms of a previously announced non-brokered private placement that aims fund projects in the Sudbury, Ontario region.

It said the updated private placement will be for up to 12.4 million units at 10.5 cents per unit, raising gross proceeds of $1.3 million.

Each unit will consist of one common share and one common share purchase warrant, each of which will entitle the holder to acquire one common share for 17 cents for a period of two years after the closing date of the offering.

Inventus shares advanced on the news, rising 8.3% or $0.01 to 13 cents on volume of almost 9.0 million. The shares are currently trading in a 52-week range of $0.07 and 16 cents.

Inventus is a mineral exploration and development company with a focus on the Sudbury mining district. Its flagship asset is a 100% interest in the advanced exploration stage Pardo Paleoplacer Gold Project, which is located 65 km northeast of Sudbury. The portfolio also includes the 100%-owned Sudbury 2.0 property located 40 km northeast of Sudbury.

Proceeds of the offering will be used to fund exploration on the Sudbury 2.0 Project, and to advance bulk sampling at the Pardo Project, Inventus said in a press release.

Pardo is the first important Paleoplacer gold discovery found in North America, Inventus said. Paleoplacer deposits consist of placer concentrations of minerals in which the host material is a consolidated rock (sediment comprising weathered detritus that was subsequently cemented together). The prefix “paleo” simply means ancient.

The Witswatersrand Paleoplacer gold-uranium deposits in South Africa have produced 1.6 billion ounces of gold.

Inventus is working towards a 50,000 tonne advanced exploration bulk sampling program at Pardo.

Meanwhile, the company has also focused on continued exploration of priority targets identified on its Sudbury 2.0 property. It said a program to evaluate and discover new areas of hydrothermal alteration and brecciation radiating from the Temagami Magnetic Anomaly (TMA) has been successful. Five new gold-copper showings were identified on the property in the summer of 2019.

For example, an old prospecting trench on the southeast shore of Laura Lake was located and sampled. One sample from the old workings returned an assay of 7.5 g/t gold and 0.2% copper. The showing has no records of exploration other than the old trench and could predate the 1900s.

The discovery of these new gold-copper showings over quite an extensive area on the Sudbury 2.0 property has provided additional evidence that the TMA may be the fluid source for this mineralized hydrothermal system.

Inventus initially acquired the Sudbury 2.0 property to explore above the TMA for evidence of a mineralized mafic/ultramafic intrusion.  The discovery of a mafic dyke with gold-copper mineralization at Laura Creek, located in the core of the TMA is the most significant geological find on the project to date.

“Initial geochemistry of the dyke has warranted intensive prospecting, mapping and sampling of this new dyke that may ultimately reveal the first geological insight into the source of the TMA and its economic potential,” Inventus has said.

Manitou Gold up 22% on financing news

Manitou Gold Inc. [MTU-TSXV] said Thursday it is poised to accelerate exploration at its 100%-owned Goudreau project near Wawa, Ont., after closing a $3 million financing and announcing strategic investments by Alamos Gold Inc. [AGI-TSX, NYSE] and O3 Mining Inc. [OIII-TSXV].

The Goudreau project consist of 22,500 hectares of consolidated gold properties located on the Michipicoten Archean Greenstone Belt. The assembled lands consist of 37 kilometres of strike length with at least seven under-explored large-scale deformation zones showing favourable lithology.

The entire set of properties are located between Alamos Gold’s Island Gold Mine and the past-producing Renabie Gold mine near the town of Missanabie.

Manitou shares advanced on the news, rising 22% or $0.01 to $0.055 on volume of 1.3 million. The shares are currently trading in a 52-week range of $0.02 and $0.07.

The rally came after Manitou said it has closed a brokered private placement of 40 million flow-through shares at $0.05 per share and 20 million units at $0.05 per unit, generating proceeds of $3 million.

Each unit consists of one common share and one common share purchase warrant. Each warrant is exercisable at $0.05 into one common share for a period of five years following the date of issuance.

Manitou said Alamos Gold has purchased 36.7 million common shares in connection with the offering, representing 19.9% of the issued and outstanding shares of Manitou immediately after closing on a non-diluted basis. Prior to the offering Alamos did not own any Manitou shares.

As a result, Alamos and Manitou have entered into an investor rights agreement giving Alamos the following rights:

  • The right to nominate one director to Manitou’s board.
  • Non-dilution rights, such that Alamos can retain its pro-rata ownership in Manitou by participating in any subsequent share issuance, so long as Alamos retains at least 10% of Manitou’s common shares on a partially-diluted basis.
  • The right to participate in a joint exploration committee which will be established to discuss and advise on the exploration strategy for Manitou’s Goudreau Project.

Meanwhile, O3 Mining Inc. and its assignees have collectively bought 14.5 million units of the offering, representing approximately 7.9% of the issued and outstanding shares of Manitou immediately after closing, as calculated on a non-diluted basis (or 15.7% on a partially diluted basis assuming the exercise of warrants comprising such units only).

Manitou has agreed to grant O3 Mining the right to nominate one director to the Manitou board as well as non-dilution rights such that O3 Mining can retain the pro-rata ownership of it and its assignees in Manitou as held immediately after closing by participating, directly or through its assignees, in any subsequent share issuance as long as O3 Mining and its assignees retain at least 7.5% of Manitou’s outstanding common shares on a partially-diluted basis.

The gross proceeds of the flow-through share portion of the offering will be used by the company to incur Canadian exploration expenses within the meaning of the Income Tax Act (Canada) related to the Goudreau Project on or before December 31, 2020, for renunciation to subscribers of flow-through shares effective December 31, 2019.

Brokerage fees of 8% cash were paid and 4.8 million broker warrants issued to IBK Capital Corp., which acted as agent in the offering. All securities issued and issuable in connection with the offering are subject to a statutory hold period ending on May 1, 2020.

Newrange sees opportunity in Red Lake gold camp

Newrange Gold Corp. [NRG-TSXV] has signed an option deal to earn a 100% interest in a gold property in the Red Lake mining district of northwestern Ontario from Aurcrest Gold Inc. [AGO-TSXV].

Aurcrest jumped 33% or $0.01 to $0.04 on volume of 300,000, Tuesday. The shares trade in a 52-week range of $0.01 and $0.045.

The Western Fold property consists of approximately 2,300 hectares in the Birch-Uchi greenstone belt and is located approximately 12 kilometres north west of First Mining Gold Corp.’s [FF-TSX, FFMGF-OTCQX, FMG-Frankfurt] Springpole gold deposit (4.67 million ounces of indicated material).

The Western Fold property contains a magnetic signature that is indicative of a strongly folded iron formation similar to the one that hosts Newmont Goldcorp Corp’s, [NGT-TSX, NEM-NYSE] Musselwhite gold mine in northwestern Ontario. Although the Western Fold iron formation has never been drill-tested, this geological setting is considered to be highly prospective for gold mineralization.

“Iron formation gold deposits are known around the world as a subset of Precambrian gold deposits,” said Newrange CEO Robert Archer. “Having worked at the Musselwhite mine and the Tucano gold mine in Brazil (Great Panther Mining Ltd. [GPR-TSX, GPL-NYSE American]), I am personally familiar with this geological model,” he said.

Archer said Newrange President Robert Carrington is familiar with the Springpole deposit from his tenure as CEO with Gold Canyon before the company was purchased by First Mining.

“As such, we are no strangers to Northwestern Ontario, which is enjoying a resurgence of exploration success,’’ Archer said. “We see the Western Fold property option as a low-cost and potentially high-reward opportunity for the company while we continue to advance our flagship Pamlico project [in Nevada].”

The terms of the agreement allow Newrange to earn a 100% stake in the project in return for cash payments of $200,000 and the issuance of one million shares over two years. The agreement is subject to a 2.0% NSR royalty, half of which can be purchased for $1 million.

On Tuesday, Newrange shares were unchanged at 13 cents and trade in a 52-week range of 10.5 cents

Prior to Tuesday’s Red Lake announcement, Newrange had been focused on its Pamlico gold project, which is located about 20 kilometres southeast of Hawthorne, along U.S. Highway 95. The project covers the historic Pamlico group of mines as well as the nearby Good Hope, Gold Bar and Sunset mines.

Exploration to date has been insufficient to define a mineral resource that would meet National Instrument 43-101 standards of disclosure. However, hopes that this could soon change is based on Pamlico’s location and previous history.

Drilling by previous operators and owners intersected very high-grade mineralization. One drill hole intersected 4.6 metres, grading 239.7 grams per tonne gold, and included 0.8 metres assaying 702.5 grams per tonne in an area called the Merritt Zone.

But due to the fact that the property had previously been in private hands since 1898, it remains underexplored in terms of modern exploration techniques.

In a December 16, 2019 press release, Newrange said it had launched an Induced Polarization (IP) geophysical survey at Pamlico. “We are pleased to have started the IP survey in an attempt to better define the trend of gold mineralization at Pamlico,” Archer said in the release.

He said the IP will hopefully help to detect fluid pathways and buried sulfide concentrations, generating drill targets for subsequent follow up.

Newrange recently raised $1.05 million from a non-brokered private placement of 10.5 million shares priced at 10 cents each. It said proceeds would be used to advance the Pamlico Project. It is expected that a second and final tranche of approximately $450,000 should be completed January, 2020, the company said.

Company Updates From Management – Tue 17 Dec, 2019

Great Bear Resources – Recapping the recent high grade drill results at the Gap and Auro Zones

Great Bear Resources (TSX.V:GBR & OTCQX:GTBDF) released another round of high grade drill results yesterday. The Company now claims to have 4km of strike length at the 100% owned Dixie Lake Property in the Red Lake District of Ontario.

Chris Taylor, President and CEO of Great Bear Resources joins me to recap the most recent drill results and outline what is next in the 200,000 meter drill program. We also discuss the plans for testing both along trend (the LP Fault) and at depth.

If you have any further questions for Chris regarding Great Bear please email me at Fleck@kereport.com.

Click here to visit the Great Bear website and read over the full news release.

Company Updates From Management – Mon 16 Dec, 2019

Riverside Resources – Recapping the highlights of 2019 and looking ahead to the work on tap for 2020

Riverside Resources ( TSX.V:RRI & OTCQB:RVSDF) had a busy year in both Mexico and Ontario. The Company signed an exploration deal with BHP to focus on copper in Mexico as well as acquiring additional properties in Mexico and entering Ontario.

John-Mark Stoude, President and CEO of Riverside and Freeman Smith, VP Exploration join me to recap the highlights of 2019 and more importantly share what they have planned for 2020. As the environment for resource companies continues to improve Riverside will be looking to get some deals completed and drilling underway on it’s projects in both Mexico and Canada.

Click here to visit the Riverside Resources website and recap the news of the year.

Canada Cobalt up on Castle Mine silver find

By Peter Kennedy

Canada Cobalt Works Inc. [CCW-TSXV; CCWOF-OTC; 4T9B-FSE] advanced in active trading Friday December 13 after the company said drilling has intersected massive native silver mineralization at its Castle Mine property in northern Ontario.

The former cobalt and silver producing Castle Mine property is located 85 km northwest of the historic Cobalt silver mining camp at and near the Town of Cobalt.

Records show that over 9.5 million ounces of silver and 299,847 pounds of cobalt was recovered from the Castle Mine. That includes the 3.0 million ounces produced by Agnico-Eagle Mines Ltd. [AEM-TSX, NYSE], before a collapse in the price of silver prompted Agnico-Eagle to abandon the operation in 1989.

In a December 4, 2019, press release, Canada Cobalt said diamond drilling had commenced at Castle East for first-ever follow-up on the Robinson Zone, a high-grade discovery that was highlighted by a 2011 drill hole (CA-11-08) that cut 40,944 g/t silver over 0.45 metres within a broader core length of 3.1 metres grading 6,476 g/t silver.

This discovery, aided initially by geophysics and now supported by a high technology camera, is less than 2 km east of three prolific past producers in the Gowganda Camp – the Castle, Capital and Siscoe mines.

Those deposits were exploited along the shallow western margin of the productive Nipissing diabase that dips toward the very under-explored Castle East area, where Canada Cobalt is now targeting additional deposits, within and outside the diabase.

Canada Cobalt said it has enhanced the exploration opportunity at the Robinson Zone by using a custom-built borehole inspection camera to successfully reach the 2011 drill hole intersection of spectacular native silver at a vertical depth of 420 metres.

The company said its technical team was able to view, identify and film the vein. This provided an invaluable geometric characterization of the unit, allowing for an accurate plotting of a series of wedge holes designed to pierce the vein structure at four different points to immediately build out this high-grade discovery.

Following completion of the wedge holes, the company said a new hole will be drilled to intersect the vein structure(s) closer to surface.

On December 12, 2019, Canada Cobalt said initial and ongoing follow-up drilling at the Castle East Robinson Zone high-grade silver discovery has intersected massive native silver mineralization over a wider vein width up-dip from drill hole CA-11-08, further supporting the potential for a rich new silver-cobalt system in the heart of a basin area immediately adjacent to the three past producing mines.

The announcement came after the close of trading on December 12.

When trading resumed on Friday, Canada Cobalt shares advanced on the news, rising 4.7% or $0.02 to 44 cents on volume of 1.08 million. The shares trade in a 52-week range of 25 cents and 60 cents.

Following four successful short wedge holes that provided important pierce points into this northwest-southeast striking and southwest dipping vein structure, Canada Cobalt said it has just commenced a program of new holes from surface aimed in part at determining the full extent of what it said is a highly mineralized “shoot.”

Canada Cobalt said the deposit model and history of the camp, and the broader Northern Ontario Silver-Cobalt district, shows that these narrow but unusually rich vein shoots (generally one to six inches in true width are in rare cases up to 12 inches in true width) can extend for tens or even hundreds of feet (pinching and swelling).

They are typically surrounded by strongly mineralized wall rock and often within a network of closely spaced parallel veins and veinlets in addition to silver-filled fractures.

Canada Cobalt is a company that is positioning itself to become a vertically integrated North American leader in cobalt extraction and recovery. It is aiming to develop a number of business lines that include exploration and mining, production of cobalt-rich gravity concentrates and the sale of concentrates to battery cathode makers in Asia and Europe.

Another line of business may also involve the use of proprietary technology called Re-20X which is designed to efficiently extract cobalt from ore and produce cobalt sulphate to the specifications required by battery sector end users.

The Re-20X technology is currently being tested at SGS Lakefield Research Ltd. at Lakefield, Ont., to see if it works for extracting cobalt, lithium and other metals from used lithium-ion batteries.

It is a strategy that is being led by Canada Cobalt President and CEO Frank Basa, a 60-year-old metallurgist, who worked for Agnico-Eagle Mines during the 1980s. During that time, he was instrumental in the development of the Re-20X process.

Gowest raising $6 million for Timmins exploration

Gowest Gold Ltd. [GWA-TSXV] said Tuesday December 10 that it intends to raise up to $6 million from a non-brokered private placement with proceeds earmarked for the company’s 100%-owned Bradshaw deposit and for working capital purposes. The Bradshaw deposit is located on Gowest’s Frankfield property, which is part of the company’s North Timmins gold project in northern Ontario.

The non-brokered private placement consists of 20 million units at 20 cent each, expected to generate gross proceeds of $4 million, and up to just over 9.0 million flow-through units at 22 cents each, generating gross proceeds of up to $2 million.

Each unit consists of one common share and one half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one common share of the company at 30 cents for a period of 24 months after closing.

Each flow-through unit will consist of one common share and one half of a warrant. Each warrant entitles the holder to acquire one common share at 30 cents for a period of 24 months after closing. The common shares underlying the warrant will not be issued as flow-through shares.

Gowest shares recently traded at 19 cents in a 52-week range of $0.08 and 50 cents.

The private placement may close in one or more tranches. However, it is anticipated that closing will occur by December 23, 2019.

Gowest is exploring additional gold targets on its 100-km2 North Timmins Gold Project. It includes the Bradshaw deposit, which is estimated to contain an NI 43-101-compliant indicated resource of 2.1 million tonnes, grading 6.19 g/t gold or 422,000 ounces. On top of that is an inferred resource of 3.6 million tonnes, grading 6.47 g/t gold, or 755,000 ounces.

A June, 2015 feasibility study estimated that Bradshaw also hosts reserves in the probable category of 277,000 ounces.

In October, 2018, QMX Gold Corp. [QMX-TSXV] entered into a custom milling agreement with Gowest. Under the agreement, QMX said the Aubel mill would be the focus of an initial pilot program involving the processing of up to 120,000 tonnes of ore from Gowest’s Bradshaw deposit for a period of one year. QMX said Gowest pledged to fund the restart of the crushing, grinding and flotation circuits, which were winterized in mid-2016 following the termination of mining activities at the Lac Herbin Mine.

The Aurbel gold mill and tailings facility is located 15 km east of Val d’Or, Quebec.

However, Gowest recently said it had terminated the agreement with QMX after striking a deal to process up to 30,000 tonnes of Bradshaw deposit ore at Northern Sun Mining Corp.’s [NSC-TSXV] Redstone Mill in Timmins. Under the agreement with Northern Sun, Gowest is responsible for certain care and maintenance costs at Redstone and has agreed to provide a standby fee of $200,000. The deal with Northern Sun expires on September 30, 2020.

Company Updates From Management – Tue 10 Dec, 2019

Gatling Resources – Updates on the 35,000 meter drill program

Nav Dhaliwal, President and CEO of Gatling Exploration kicks off today by updating us on the current 35,000 meter drill program at the Larder Property on the Cadillac Larder Fault. We discuss the strategy of tying together the three deposits (Cheminis, Bear Lake, Fernland) already proven out on the project as well as the exploration at the new Kirr Vit discovery. With under 20,000 meters of the drill program released the Company has a lot of news coming.

Click here to visit the Gatling Exploration website and read over the Company presentation.

MacDonald Mines active on SPJ drilling news

MacDonald Mines Exploration Ltd. [BMK-TSXV; MCDMF-OTC] rallied in active trading Monday December 9 after the company released new drilling results from its Scadding Powerline Jovan (SPJ) property near Sudbury, Ontario where the company has previously intersected high-grade gold.

The latest results are from four holes of its now completed fall 2019 drilling program. The company said results are highlighted by hole SM-19-022 with the discovery of a significant zone of near-surface gold mineralization north of the Scadding East-West Pit. That drill hole returned 7.99 g/t gold over 26.2 metres, including 10.98 g/t gold over 4.98 metres and 11.54 g/t gold over 13.24 metres at a depth of 16 to 42 metres.

MacDonald said 25 holes have been completed with nine holes reported to date. The remaining 16 holes are being processed and assay results will be announced as they are received.

MacDonald shares advanced on the news, rising 6.0% or $0.05 to $0.09 on volume of 2.75 million, making it the most actively traded stock on the TSX Venture Exchange on Monday. The shares are currently trading in a 52-week range of $0.025 and 21 cents.

Based in Toronto, MacDonald is focused on precious metals exploration, primarily in Ontario. The company has a 100% interest in the SPJ property, which covers 10,000 hectares, and is located in a polymetallic gold district that remains under explored.

The historic Scadding Mine, located on the SPJ property, produced 144,000 tonnes of ore at a grade of 7.43 g/t gold. The Norstar Mine, located within 500 metres of the Jovan property, produced 63,000 tonnes of ore at a grade of 7.2 g/t gold.

In a November 19, 2019 news release, MacDonald said it had expanded its current 2,000-metre drilling program with plans to drill an additional 7,500 metres at SPJ.

“Based on the positive results to date, MacDonald’s objective is to continue to expand the footprint and the extent of the high-grade gold mineralization around the Scadding Mine deposit and further explore regional targets, well beyond the mine area, where current and historic prospecting exhibit significant gold, copper, cobalt, and nickel showings that may be indicative of a much larger gold-rich iron-oxide-copper-gold system at work in the region,” said MacDonald President and CEO Quentin Yarie in the November 19 news release.

The structures targeted [by the 2019 fall drilling program] include those associated with gold mineralization in the North, South, and E-W pits of the Scadding Mine, the Scadding Underground Mine, the Villeneuve discovery, the historic New Zone located between the Scadding Mine and the E-W Pit, and a historic pit located between the New Zone and E-W Pit. Evidence of chlorite alteration associated with gold mineralization was observed in all the completed drill holes, the company said in Monday’s press release.

“Our 2019 drilling program shows that significant zones of near-surface, high-grade gold mineralization are present beyond the original footprint of the historic operations of the Scadding Deposit,” Yarie said.

“Having successfully completed the first phase of our diamond drilling program at Scadding, we will now finalize the logging of all remaining drill holes, update our geological model of the deposit and define the next targets for the budgeted early 2020 diamond drilling program” he said.