Galway targets new North America gold district

Toronto-headquartered Galway Metals says the strong drill results rolling in from its project in New Brunswick supports its view that Clarence Stream is an emerging new gold district. On Tuesday, the company reported assay results from drilling south of the Richard zone and between the Richard and Jubilee zones. Hole 87 yielded some of the best intersections in the company’s history, intersecting 10.6 g/t gold over 97 m and 1.2 g/t gold over 32 m.

Fresnillo buys Naranjillo property in Mexico

TSX-V-listed Plata Latina says silver major Fresnillo has exercised its option to purchase its the Naranjillo property, in Mexico. The option stems from a 2017 agreement that provided Fresnillo subsidiary Metalúrgica Reyna with a three-year term in which to conduct exploration and exercise the option. The Naranjillo project is a grassroots epithermal silver/gold discovery made by the company in 2012 and is located in the Mexican Silver Belt, about 35 km southeast of the Guanajuato mining district.

Positive infill results from Corvus’ Mother Lode deposit

Infill drilling at Corvus Gold’s (TSE: KOR) Mother Lode deposit in Nevada has intercepted higher-grade and broader than expected mineralization.

Highlights include 88.4 metres of 1.92 g/t gold and 56.4 metres of 1.92 g/t gold: both of these holes targeted areas with limited drill data, intersecting better grades and geometries than suggested by the current resource model.

The drill holes also expanded the new oxide Central Intrusive zone (CIZ) below the main zone, which was discovered in January.

“The ongoing infill/step-out part of the phase-4 drill program has generated favorable results for expansion of the overall Mother Lode mineral resource model,” Jeffrey Pontius, the company’s president and CEO said in a release.

“In addition, the continued positive indication from the bottoms of these holes, showing a sizeable oxide system at CIZ, is encouraging and Corvus will direct some of its deeper core tail drilling program toward evaluating the zones significance and its relationship to the deep intrusion target currently being tested.”

Measured and indicated resources at the 36.5-sq.-km Mother Lode project stand at 53.4 million tonnes at 0.68 g/t gold for a total of 1.16 million ounces with additional inferred resources of 16.2 million tonnes at 0.46 g/t gold for a total of 241,000 ounces; 54.2 million of these tonnes are in the heap leach category.

The company’s 91-sq.-km North Bullfrog project borders mother lode; both are located within the past-producing Bullfrog mining district, within the Walker Lane trend, host to epithermal gold systems. Mother Lode is a new discovery of a sediment-hosted gold system.

(This article first appeared in the Canadian Mining Journal)

Rio Tinto, Calibre enter Nicaragua exploration deal

Rio Tinto Exploration has entered into an option agreement with Calibre Mining (TSX: CXB), pursuant to which Rio Tinto can earn up to a 75% interest in Calibre’s Borosi project in northeast Nicaragua.

The Borosi project hosts both gold-silver and copper-gold resources in two areas, as well as multiple lesser explored copper-gold skarns, low-sulphidation epithermal gold-silver vein systems and bulk tonnage copper-gold porphyry targets.

Furthermore, the companies have entered into a strategic exploration alliance agreement, under which they will work together to identify and acquire exploration concessions in Nicaragua, with a focus on copper-gold porphyry, skarn and epithermal precious metal systems.   

Rio Tinto will have a five-year option to acquire a 55% interest in the Borosi project by incurring $10 million in qualifying expenditures, of which $3 million is committed to be incurred within two years of obtaining the necessary permits and approvals.

If Rio Tinto exercises the first option and earns a 55% interest in the project, it has the right to earn an additional 10% interest by incurring a further $15 million over a three-year period. Thereafter, the company would have the right to earn an additional 10% interest, for an aggregate interest of 75%, by incurring another $20 million over a subsequent three-year period.

Calibre has been designated as the initial operator of the field work being completed under the earn-in agreement and will receive a fee equal to 10% of expenditures.

Sumbawa discovers copper-gold deposit in Indonesia

Sumbawa Timur Mining (STM), a joint venture between Vale (NYSE: VALE) and Antam, has announced the discovery of the copper and gold at the Onto deposit in Indonesia.

STM has been conducting exploration activities within the Hu’u Project CoW since 2010. The Onto deposit was originally discovered in August 2013 Hu’u , and, since then, 64 diamond drill holes have been drilled to determine the size, extent and characteristics of the deposit.

STM is the owner of the Hu’u Project in Nusa Tenggara Barat Province and has been conducting exploration activities within the project since 2010.

It is a ‘world-class discovery that positions the company to be a leading copper producer in Indonesia,” STM said in a media release.

The December 2019 STM resource estimate reports a total Indicated resource of 0.76 billion tonnes (Bt) @ 0.93% Cu and 0.56 g/t Au and a total Inferred resource of 0.96 Bt @ 0.87% Cu and 0.44 g/t Au.

“The Onto deposit discovery demonstrates the value and opportunity associated with the Hu’u Project,” STM president Bede Evans said.

“With the project now in the feasibility study in exploration stage, we look forward to advancing the project with the aim of developing a world-class mining operation.”

GOLD: Positive infill results from Corvus’ Mother Lode deposit

NEVADA – Infill drilling at Corvus Gold’s Mother Lode deposit has intercepted higher-grade and broader than expected mineralization. Highlights include 88.4 metres of 1.92 g/t gold and 56.4 metres of 1.92 g/t gold: both of these holes targeted areas with

The post GOLD: Positive infill results from Corvus’ Mother Lode deposit appeared first on Canadian Mining Journal.

Australian miners form Broken Hill Alliance

Impact Minerals (ASX: IPT) signed a non-binding MoU with Castillo Copper (ASX: CCZ) and Squadron Resources, both also holders of large tenement packages around the Broken Hill mine, to form the new Broken Hill Alliance.

In a press release, the companies said that Impact will contribute the rights to silver-lead-zinc Broken Hill-style mineralisation and other associated styles of mineralisation to the Alliance.

The MoU is an initial six-month agreement to market the Alliance’s ground holding to potential strategic partners, with the marketing to be led by Castillo. If a suitable partner is found, then the three parties will form a special purpose vehicle which will acquire the relevant tenements and metal rights from the three parties in return for equal shareholdings (33.3% each) in the new SPV company.

“With palladium and rhodium yet again reaching record prices late last week and now being well funded following our recent successful capital raising, we are gearing up to return to exploration at our unique Broken Hill project where our previous drilling there has delivered exceptional grades of all six platinum group metals (palladium, platinum, rhodium, ruthenium, osmium and iridium), not to mention gold, nickel and copper as well,” Mike Jones, Impact Minerals’ managing director, said in the media brief.

The Broken Hill Ni-Cu-PGE project is located 20 kilometres east of the Broken Hill silver-lead-zinc mine in New South Wales, in southern Australia, and consists of one Exploration Licence covering 200 square kilometres in the richly mineralised Curnamona Province.

Rio Tinto in Nicaragua exploration deal with Calibre

Global miner Rio Tinto has entered into an agreement to earn up to 75% in TSX-listed Calibre Mining’s Borosi project, in north-east Nicaragua. The project hosts gold/silver and copper/gold resources in two areas, as well as multiple lesser explored copper/gold skarns, low-sulphidation epithermal gold/silver vein systems and bulk tonnage copper/gold porphyry targets. Further, Calibre and Rio Tinto also entered into a strategic exploration alliance agreement under which they will work together to identify and acquire exploration concessions in Nicaragua, with a focus on copper/gold porphyry, skarn and epithermal precious metal systems.

Eldorado revamps Kisladag and expects over 450,000 ounces annually

Following last week’s release of year-end results and five-year guidance from Eldorado Gold (TSE: ELD), the intermediate-producer’s stock soared over 30% in one day and breached eight-year highs.

Eldorado also announced a 15-year mine life at its Kisladag open pit operation in Turkey after completing long-cycle heap leach tests and replacing the tertiary crushing circuit with a high-pressure grinding roll (HPGR) circuit.

“Kisladag has been a cornerstone asset of Eldorado for over a decade, producing over three million ounces of gold and generating significant value for all stakeholders during that period,” George Burns, the company’s president and CEO said in a release.

“Following the resumption of full operations last spring, and the significant work and testing undertaken by the Eldorado team over the past 18 months, we are pleased to announce a mine life extension at Kisladag that puts this asset back in the core of our portfolio.”

This year, the company expects to produce 520,000 ounces to 550,000 ounces

This year, the company expects to produce 520,000 ounces to 550,000 ounces at AISCs of $850 to $950 per ounce. Over the next five years, it anticipates production from its four operating mines to average over 450,000 ounces.

Last year, the Eldorado’s gold output was at 395,331 ounces at AISCs of $1,034 per ounce with $150.6 million in cash flow generated from operating activities, before changes in working capital.

Increased leach time with HPGR appears to increase heap leach recoveries at Kisladag to 56% with an updated average annual gold production expected at 160,000 ounces at AISCs of $800 to $850 per ounce.

Over the next five years, Kisladag and the underground Lamaque mine in Quebec, which declared commercial production last March, appear to be the largest gold contributors.

Eldorado also operates the underground Efemcukuru mine in western Turkey and the Olympias gold-silver-lead-zinc mine in northern Greece.

In addition to its gold-producing operations, in Greece, Eldorado holds the Skouries and Perama Hill projects which are currently on care and maintenance: Skouries was placed on care and maintenance at the end of 2018 due to ongoing permitting delays.

In January, Eldorado announced the discovery of the Ormaque zone at its Lamaque operation.

(This story first appeared at the Canadian Mining Journal)

SILVER-GOLD: Excellon to acquire Otis in all-share deal

TORONTO – Producer Excellon Resources has announced plans to acquire developer Otis Gold in an all-share deal worth an estimated $32.3 million, based on the most recent stock close prices. Excellon’s main producing asset is the high-grade underground silver-lead-zinc mine

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