The core shack at Roundup is where you find serious teams who are still funding exploration projects in a harsh market. It’s also one of the better places to talk shop on existing or emerging discoveries. Monday, we did Part I. Today, in Part II, a few more stories catch our eyes.
Barrick Gold (ABX-T) – Alturas
Around April last year Barrick noted it had made a gold discovery in Chile. (I wrote about it here and more extensively here in a long Q&A with Barrick.) It’s a broad, fairly thick, oxide gold target that came out of Barrick’s decision to re-evaluate its ground in the El Indio belt back in 2010. Companies wanted to farm in on the ground. But Barrick thought it had better take a closer look before letting someone else farm-in.
So the team, led by Rob Krcmarov, VP exploration, identified untested alteration at Alturas. They sampled at surface. They found some gold and silver and also realized that the favourable package of rocks probably extended below a barren lithocap. It did. Drilling has shown broad, oxide mineralization 50-100 metres thick in a roughly 1 sq-km area with hits like 82 metres @ 2.16 g/t Au, along with zones of both lower and much higher grade. Some suggest the deposit may contain some 3-7 million ounces gold. It’s very near the Chilean border with Argentina.
Agnico Eagle (AEM-T) – El Barqueno
Agnico picked up this project in Jalisco state, Mexico, through a takeover of Cayden Resources in 2014, with additional but also important ground picked up from Soltoro in 2015. Agnico has been drilling numerous targets on the project rather extensively and has shown extensions to multiples zones of gold-silver mineralization. It’s targeting the near-surface epithermal vein systems that it hopes may make the basis for another heap-leach operation (as in the past on the property albeit on a small scale.) Before Agnico took on the project, Cayden gets credit for showing that widespread gold mineralization on the property was more extensive than previously thought. In this respect Agnico has been doing the same with recent drilling showing broad high-grade gold near surface in some veins.
Arizona Mining (AZ-T) – Hermosa – Taylor deposit
Arizona has focused heavily on extending zinc-lead-silver carbonate replacement deposit at depth in recent rounds of drilling at Taylor (which also contains bulk tonnage resources at surface.) It’s been looking quite good for Arizona, which happens to operate in, yes, Arizona. As it goes deeper, it continues to hit both broad zinc-lead-silver mineralization with very high-grades therein. It gets hits like 65 metres @ 5.09% zinc, 4.48 % lead, and 1.35 ounces silver. The deposit looks to be a couple hundred metres wide strike some 600-700 metres, plunging to the northwest. Notably, the team recently welcomed Jim Gowans, ex-co-President of Barrick, as President and CEO. The company was founded by Chairman Richard Warke. Management has recently funded the company.
Cash: $2.7 million raised in November.
Nevsun (NSU-T) – Harena
This is a VMS deposit near to Nevsun’s operating Bisha base metals mine in Eritrea. With mining operations in full swing at Bisha, in the past year Nevsun has focused on its nearby resources. Harena is proving particularly interesting as drilling in the past few quarters shows that it extends and broadens nicely at depth. One of its deeper drill holes yet hit a lens with 70 metres @ 1.31% copper and 2.84% Zinc including 12 metres @ 3.58% copper and 1.95% zinc, along with moderate gold and silver values. The value here is obvious for Nevsun, which may, if expanded resources at Harena prove economic, extend Bisha mine life considerably.
Cash: $434million (September 2015)
Integra Gold (ICG-V) – Lamaque project – Triangle
In short, Integra is showing that a previously under-appreciated set of veins in the Triangle zone on the Lamaque property in Quebec yield very high-grade gold over decent widths. It pulled drilling together in a 2015 resource giving: 2.6 million tonnes @ 7.37 g/t Au in indicated resources and 3.9 million tonnes @ 6.89 g/t Au in inferred resources. Since then Integra has done a fair bit more drilling. Indeed, some 90,000 metres, one of the larger drill programs commanded by a junior. It’s showing strong extension to resources at often high grades. The resource update should be interesting.
Cash: $25 million (August 2015)
Marketcap: $108 million