The Goose camp at Sabina's Back River gold project in Nunavut.
Nunavut gold developer Sabina Gold & Silver has cleared another permitting hurdle with the filing and acceptance of the company's Final Environmental Impact Statement (FEIS) for its Back River gold project.
The FEIS was submitted to the Nunavut Impact Review Board (NIRB) on Nov. 23 and has been deemed conformant with requirements. That clears the way for the document to enter the final technical review period, during which stakeholders can participate in the information request phase. Final public hearings are expected to be held in Q2 2016.
Following the review process, NIRB will issue its recommendation to the Minister of Indigenous and Northern Affairs Canada ("INAC") on whether or not the project should proceed. If the project successfully passes through this stage, the Company could be in a position to receive a project certificate during the second half of 2016.
"This is a major milestone in the permitting and environmental assessment process of the Back River Gold Project," said Bruce McLeod, Sabina's President & CEO. "The FEIS demonstrates how the Project will bring responsible sustainable development to the region, including training, jobs, creation of business opportunities as well as associated royalty payments and taxes. Additionally, we are very pleased with the positive results of the document's conformity review and look forward to continued engagement with the NIRB, the Kitikmeot Inuit Association, communities, various levels of government and other stakeholders as we move through the final stages of the environmental assessment process."
Sabina shares have bucked the sector-wide bear market trend and last traded at 0.64, a 52-week high, with an impressive year-to-date return of 80%.
Back River hosts 5.3 million ounces Measured and Indicated and 1.8 million ounces Inferred at average grades above 5 g/t Au. A Feasibility Study released earlier this year showed the potential to produce about 200,000 ounces a year for 11 years with a rapid payback of 2.9 years. At US$1,150 gold price and an 80-cent exchange rate, the Study delivers a potential after-tax internal rate of return of approximately 24.2% with initial CAPEX of $415 million.
Shares outstanding: 197 million
Market cap: $126 million
Cash and equivalents: $19 million
Lithium X has hired a chief hydrogeologist to help plan the initial drill program and delineate aquifers at the company's Clayton Valley North lithium brine project in Nevada.
Mr. Hawkins has 30 years of experience practicing environmental hydrogeology throughout the western United States and northern Mexico, including groundwater modelling and supervision of large-scale drilling programs for water supply development.
He will work closely with Lithium X's VP Project Development Tim Oliver, who said the detailed aquifer work will serve the company's long-term needs as it works toward a maiden resource estimate and beyond.
"Drilling for the resource definition may not strictly require the type of detailed aquifer characterization we will do in the first phase, but working smart means designing our program to serve multiple needs going forward,” Oliver said.
Lithium X has acquired the option to earn a 100% interest in the Clayton Valley North claims, which cover about 4,360 acres north of the only producing lithium operation in North America – Silver Peak, owned and operated by Albemarle (NYSE: ALB).
Shares outstanding: 28 million
Market cap: $11.2 million
Cash and equivalents: $2.2 million
NR: Lithium X Appoints David Hawkins as Chief Hydrogeologist
Yukon gold developer Rockhaven Resources has updated its resource estimate for the 100% owned Klaza project, which is road accessible.
The updated Inferred resource, prepared by AMC Mining Consultants, comprises a total Inferred Mineral Resource of 9,421,000 tonnes grading 4.48 g/t gold, 89.02 g/t silver, 0.75% lead and 0.95% zinc, for 1,358,000 oz gold, 26,962,000 oz silver, 155,417,000 lbs lead and 197,891,000 lbs zinc. The Mineral Resource has a gold equivalent metal content of 1,793,000 oz at a gold equivalent grade of 5.92 g/t.
"The updated Mineral Resource clearly demonstrates the potential of the road accessible Klaza deposit," stated Matt Turner, President and CEO of Rockhaven. "Deposit-wide metallurgical testing shows silver, lead and zinc are important co-products that could enhance the economics of the deposit. There is a high probability for further expansion because the mineralized zones included in the Mineral Resource are open for extension along strike and to depth and there are other parallel zones on the property that have not yet been systematically evaluated."
Metallurgical tests have yielded 96% gold and 91% silver recoveries and the project has a First Nations Exploration Benefits Agreement in place.
Rockhaven is part of the Yukon-focused Strategic Exploration Group. Strategic Metals (SMD-V) owns 46% of Rockhaven's shares and Strategic CEO Doug Eaton owns a further 11% plus stake.
Shares outstanding: 105 million
Market cap: $13.6 million
Working capital: $300,000
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Bob Dickinson's Amarc Resources is out with some long, low-grade intercepts at its IKE copper porphyry project in the B.C. Interior, the heart of the province's copper-mining industry.
Highlights from the 9-hole, 5,028-metre drill program include:
- 124 metres of 0.45% CuEQ1 @ 0.34% Cu, 0.022% Mo and 3.2 g/t Ag
214 metres of 0.37% CuEQ @ 0.26% Cu, 0.023% Mo and 2.2 g/t Ag
592 metres of 0.44% CuEQ @ 0.30% Cu, 0.032% Mo and 2.1 g/t Ag
86 metres of 0.47% CuEQ @ 0.33% Cu, 0.032% Mo and 2.2 g/t Ag
111 metres of 0.36% CuEQ @ 0.30% Cu, 0.010% Mo and 2.3 g/t Ag
In CEO Chat, geologist Rob McLeod commented: "Very impressed with the AHR results! Obviously an extensive porphyry system at IKE. Now that they have the discovery, Bob and Diane (Nicolson) can vector in to the high-grade."
Thompson Creek Metals (TCM-T) funded the 2015 work program and can earn up to a 50% interest through a staged funding process that includes completion of a feasibility study.
Shares outstanding: 142 million
Market cap: $9.2 million
Working capital: $1.2 million
NR: Amarc reports 2015 drill results from IKE copper-molybdenum-silver discovery, British Columbia
Athabasca Basin uranium explorer NexGen Energy is another company that has managed to defy a brutal bear market for junior mining companies. The company has closed a $21-million bought-deal financing at 64 cents that included partial exercise of the over-allotment option.
NexGen continues to add high-grade pounds to its Arrow project in the southwestern Athabasca Basin ahead of a maiden resource estimate expected in the first half of 2016.
Upon close of the financing NexGen will have about $36.5 million in the treasury.
NR: NexGen closes $21-million bought-deal financing
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Disclosure: Author owns shares of Sabina Gold & Silver, NexGen Energy and Rockhaven Resources. Sabina Gold & Silver and Lithium X are sponsors of CEO.CA, which makes us biased. This is presented for informational purposes and should not be considered investment advice. All investors need to do their own due diligence and take responsibility for trades.
