After marching steadily higher early in the week, gold and silver saw their biggest one-day losses in more than a month on Friday as hopes for more Fed money printing were dashed after the better-than-expected labor report. Still, both metals maintain…
Some shareholders have sued Hecla Mining Co. for stock losses they endured after the federal government shut down the Lucky Friday Mine for safety violations.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Feb. 2, 2012) - Orex Minerals Inc. (TSX VENTURE:REX) (“Orex“) is pleased to announce that it has signed a definitive Association Agreement with Fresnillo Plc (LSE:FRES) (“Fresnillo“) to explore and develop as one large project their respective mineral concessions in the Coneto gold-silver mining district in northern Durango State, Mexico.
Together, Orex and Fresnillo hold extensive contiguous mineral concessions totaling over 17,600 hectares in the heart of the historic Coneto mining district. These concessions cover more than 40 known mineralized epithermal quartz veins. The project will be managed by a technical committee in which both Orex and Fresnillo will have representation.
Gary Cope, President of Orex, says, “We are very excited about entering into an agreement with Fresnillo to advance the Coneto gold-silver project. Entering this agreement was a logical step, as both companies will bring land and expertise to the project and Fresnillo will contribute exploration funds. Fresnillo’s management is also showing their confidence in Orex by taking an equity position in Orex. We are looking forward to successful exploration together at Coneto.”
David Giles, Vice-President Exploration of Fresnillo Plc states, “We are pleased to have signed an agreement with Orex to evaluate the Coneto property using the combined experience of our exploration teams.”
Terms of the Coneto Association Agreement
About Orex Minerals Inc.
Orex Minerals Inc. is a junior mineral exploration company, comprised of highly qualified mining professionals with a focus on the exploration of prospective gold and gold-silver properties in Sweden and Mexico.
About Fresnillo PLC
Fresnillo Plc is the world’s largest primary silver producer and Mexico’s second largest gold producer, listed on the London Stock Exchange under the symbol FRES. Fresnillo has five producing mines, three development projects and five advanced exploration prospects, all of them in Mexico, as well as a number of other long term exploration prospects. In total, it has mining concessions covering approximately 2.1 million hectares in Mexico. Fresnillo has a strong and long tradition of mining, a proven track record of mine development, reserve replacement, and production costs in the lowest quartile of the cost curve for both silver and gold. Fresnillo’s goal is to maintain its position as the world’s largest primary silver company, producing 65 million ounces of silver and over 400,000 ounces of gold by 2018.
Ben Whiting, P.Geo., is the Qualified Person as defined in NI43-101 and takes responsibility for the technical disclosure in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
Gary Cope, President
This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties including the non-consummation of the transactions herein contemplated. Actual results may differ materially from those currently anticipated in such statements and Orex undertakes no obligation to update such statements, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Feb. 1, 2012) - Rye Patch Gold Corp. (TSX VENTURE:RPM)(OTCQX:RPMGF) (“Rye Patch Gold” or the “Company”) is pleased to announce assay results of its wholly owned subsidiary, Rye Patch Gold US Inc., from the 100% owned Gold Ridge Project located along the Oreana trend in Pershing County, Nevada. The Gold Ridge project is located approximately 1.6 kilometres west of Lincoln Hill and was acquired in 2007 by staking unpatented lode mining claims.
HIGHLIGHTS:
DISCUSSION:
The 2011 drill campaign completed 2,462 metres in 12 reverse circulation drillholes centered on the Silver Ridge target at Gold Ridge. The drill program tested two geologic targets along a 1.2 kilometre long mineralized zone. The first geologic target drilled is a low-angle thrust fault zone with quartz breccia and veins containing gold and silver mineralization. The second target consists of deformed jasperoid layers (silicified rock) in the hangingwall of the main north-south oriented thrust structure. The main jasperoid body is stratabound and is 10- to 30-metres in true thickness.
“The Gold Ridge drilling indicates another shallow, near-surface deposit may exist along the Oreana trend, and additional drilling is clearly warranted,”stated William C. Howald, President and CEO of Rye Patch Gold.
In the northern portion of the Silver Ridge target, drillholes GR-004 and GR-005 extend mineralization 200 metres down dip from GR-002 (drilled in 2010). GR-004 encountered 0.41 g/t Aueq over 54.9 metres, and a second zone returned 0.77 g/t Aueq over 19.8 metres. Both mineralized zones are within stacked, folded jasperoid layers within the axial zone of a north-south oriented anticline. GR-006 was drilled from the same site as GR-002 toward the northeast to test the northern extension of mineralization. GR-006 encountered two zones – 0.50 g/t Aueq. over 21.3 metres and 2.1 g/t Aueq. over 3 metres.
Along the southern portion of the Silver Ridge target, drilling results show mineralization is shallow and dominantly related to jasperoid formation. GR-014 returned 0.49 g/t Aueq. over 24.4 metres starting at 15.2 metres, and GR-015 returned 0.70 g/t Aueq. over 38.1 metres starting at 9.1 metres. The jasperoids have significant strike length along the limbs of the anticline with oxide potential that remains untested. The low-angle fault lies beneath the jasperoid zones at a depth of approximately 175 metres. Additional drilling is required to test the low-angle fault to the east where the zone should daylight.
Along the 1.2 kilometres length drilled to date, the low-angle fault zones show high-grade silver. Drillhole GR-010 returned 75 g/t Ag over 1.5 metres, and GR-004 returned 20 g/t Ag and 3.93 g/t Au over 3 metres. Additional drilling to east will test the up-dip portion of the low-angle fault zones at shallower depths. Table 1 summarizes the Gold Ridge drilling results.
| Table 1: Gold Ridge Project – 2011 Silver Ridge Target Assay Results | |||||||||
| Drillhole | Remarks | Au | Ag | Aueq | Drillhole interval | From | To | Total Depth | |
| g/t | g/t | g/t | metres (1) | metres | Metres | metres | |||
| GR-004 | Silver Ridge | 0.29 | 5.7 | 0.41 | 54.9 | 29.0 | 83.8 | ||
| Including | 0.73 | 15.7 | 1.05 | 7.6 | 74.7 | 82.3 | |||
| GR-004 | Silver Ridge | 0.54 | 11.8 | 0.77 | 19.8 | 102.1 | 121.9 | 196.6 | |
| Including | 0.75 | 5.7 | 1.06 | 12.2 | 108.2 | 120.4 | |||
| GR-004 | Silver Ridge | 3.93 | 20.1 | 4.33 | 3.0 | 149.4 | 152.4 | ||
| GR-005 | Silver Ridge | 0.13 | 21.1 | 0.56 | 21.3 | 4.6 | 25.9 | ||
| Including | 0.09 | 182.0 | 3.73 | 1.5 | 4.6 | 6.1 | 192.0 | ||
| GR-005 | Silver Ridge | 0.15 | 7.0 | 0.29 | 36.6 | 71.6 | 108.2 | ||
| GR-005 | Silver Ridge | 0.31 | 6.3 | 0.43 | 10.7 | 135.6 | 146.3 | ||
| GR-006 | Silver Ridge | 0.36 | 7.0 | 0.50 | 21.3 | 71.6 | 93.0 | ||
| Including | 0.6 | 15.8 | 1.00 | 6.1 | 80.8 | 86.9 | 181.4 | ||
| GR-006 | Silver Ridge | 0.9 | 58.7 | 2.10 | 3.0 | 105.2 | 108.2 | ||
| GR-007 | Silver Ridge | 0.2 | 3.2 | 0.27 | 18.3 | 117.3 | 135.6 | 182.9 | |
| GR-008 | Silver Ridge | 0.26 | 15.7 | 0.58 | 10.7 | 4.6 | 15.2 | ||
| GR-008 | Silver Ridge | 0.34 | 6.9 | 0.48 | 16.8 | 178.3 | 195.1 | 213.4 | |
| Including | 1.56 | 19.3 | 1.95 | 3.0 | 178.3 | 181.4 | |||
| GR-009 | Silver Ridge | 0.23 | 4.1 | 0.31 | 4.6 | 82.3 | 86.9 | 213.4 | |
| GR-009 | Silver Ridge | 0.07 | 10.7 | 0.28 | 6.1 | 185.9 | 192.0 | ||
| GR-010 | Silver Ridge | 0.18 | 2.5 | 0.23 | 16.8 | 12.2 | 29.0 | ||
| GR-010 | Silver Ridge | 0.002 | 75.5 | 1.51 | 1.5 | 157.0 | 158.5 | 190.5 | |
| GR-010 | Silver Ridge | 0.22 | 4.4 | 0.31 | 7.6 | 173.7 | 181.4 | ||
| GR-011 | Silver Ridge | 0.17 | 3.5 | 0.24 | 10.7 | 39.6 | 50.3 | 245.4 | |
| GR-012 | Silver Ridge | 0.15 | 5.0 | 0.25 | 3.0 | 1.5 | 4.6 | 167.6 | |
| GR-013 | Silver Ridge | 0.18 | 3.4 | 0.24 | 3.0 | 15.2 | 18.3 | ||
| GR-013 | Silver Ridge | 0.09 | 7.9 | 0.25 | 3.0 | 99.1 | 102.1 | 213.4 | |
| GR-013 | Silver Ridge | 0.05 | 7.2 | 0.20 | 24.4 | 161.5 | 185.9 | ||
| GR-014 | Silver Ridge | 0.34 | 7.4 | 0.49 | 24.4 | 15.2 | 39.6 | ||
| GR-014 | Silver Ridge | 0.12 | 5.5 | 0.23 | 9.1 | 143.3 | 152.4 | 227.1 | |
| GR-014 | Silver Ridge | 0.13 | 7.2 | 0.27 | 3.0 | 190.5 | 193.5 | ||
| GR-015 | Silver Ridge | 0.41 | 14.9 | 0.70 | 38.1 | 9.1 | 47.2 | ||
| GR-015 | Silver Ridge | 0.13 | 3.4 | 0.20 | 44.2 | 62.5 | 106.7 | 239.3 | |
| GR-015 | Silver Ridge | 0.14 | 3.1 | 0.20 | 6.1 | 166.1 | 172.2 | ||
| GR-015 | Silver Ridge | 0.02 | 16.6 | 0.36 | 4.6 | 225.6 | 230.1 | ||
| (1) NOT TRUE THICKNESS |
The Gold Ridge project has three target areas – Silver Ridge, Red Hill and Porphyry. In 2011, the Silver Ridge target was drilled.
As announced on May 18, 2010, May 11, 2009, and June 2, 2009, in respect of the Lincoln Hill, Wilco, and Jessup projects, Rye Patch Gold’s resource inventory along the Oreana trend now totals 1,182,780 ounces of gold and gold equivalent in the measured and indicated category plus 2,727,100 ounces of gold and gold equivalent in the inferred category. Table 2 summarizes Rye Patch Gold’s precious metal inventory in Nevada, USA excluding any resources within the LH claims. The LH claims contain five new discoveries and include the lands containing up to 20% of Rochester’s published proven and probable silver and gold reserve along with a significant portion of the published silver and gold resource, based on Coeur d’Alene Mine’s December 5, 2011, news release.
| Table 2: Rye Patch Gold’s NI43-101 Resource Inventory(1) | |||||||
| Property | Resource Category |
Tonnes (X 1,000) |
Gold Grade (g/t) |
Silver Grade (g/t) |
Contained Gold Ounces |
Contained Silver Ounces |
Contained Gold & Gold Equivalent Ounces (4) |
| Measured | 7,526 | 0.69 | 4.595 | 164,000 | 1,111,000 | 186,220 | |
| Wilco (2) | Indicated | 30,844 | 0.51 | 3.601 | 522,000 | 3,638,000 | 594,760 |
| Inferred | 121,838 | 0.41 | 5.075 | 1,660,000 | 19,871,000 | 2,057,420 | |
| Measured | 7,775 | 0.51 | 8.745 | 128,000 | 2,184,000 | 171,680 | |
| Jessup(2) | Indicated | 12,642 | 0.41 | 7.167 | 172,000 | 2,906,000 | 230,120 |
| Inferred | 4,494 | 0.55 | 7.922 | 77,000 | 1,146,000 | 99,920 | |
| Lincoln | Measured | - | - | - | - | - | - |
| Hill(3) | Indicated | - | - | - | - | - | - |
| Inferred | 17,215 | 0.69 | 17.143 | 380,000 | 9,488,000 | 569,760 | |
| Total Oreana Trend Measured & Indicated Resources | 986,000 | 9,839,000 | 1,182,780 | ||||
| Total Oreana Trend Inferred Resources | 2,117,000 | 30,505,000 | 2,727,100 | ||||
| (1) All resources on 100% basis. Metallurgical recoveries and net smelter returns are assumed to be 100%. Conforms to 43-101 resource definitions; |
| (2) Cutoff grade for Wilco Measured and Indicated resource is reported at 0.2 g/t Au for oxide mineralisation and 1.45 g/t Au for sulphide mineralisation. The Inferred resource cut-off grade is reported at 0.2 g/t Au for oxide, sulphide and carbonaceous ore types; however, a higher opt Au cut-off grade may be required to upgrade the inferred resource to the measured and indicated resource category. Cut-off grade for Jessup is reported at 0.2 g/t Au for oxide mineralisation and 0.34 g/t Au for transition and sulphide mineralisation; and |
| (3) The Inferred resource is reported at a cut-off grade of 0.34 g/t (0.01 opt) Aueq for oxide and transitional ore types; |
| (4) Wilco, Jessup and Lincoln Hill resources includes Au equivalent ounces (Aueq.); where Aueq. = (Au ozs) + (Ag ozs X $Ag/oz)/$Au/oz, for Au/oz = $1,200, and Ag/oz = $24. |
Rye Patch Gold maintains a strict quality control program at all of its projects. All reverse circulation and core samples are submitted to American Assay with prep-blanks, assay blanks, and gold and silver standards. Rye Patch Gold inserts approximately one quality control or quality assurance samples for every twenty samples submitted to the assay laboratory. The RC chips are logged and photographed on site. American Assay collects the samples and transports them to their preparation and analytical facility located in Reno, Nevada. Gold analyses are conducted on 1-assay ton prepped samples with gold determined using industry standard fire assay methods with an atomic absorption finish. Gold values above 10 g/t gold (over limits) are confirmed using fire assay with a gravimetric finish. Silver is analyzed using a four-acid digestion and an AA finish. Silver values over 100 g/t silver are re-analyzed using volumetric dissolution.
Mr. William Howald, AIPG Certified Professional Geologist #11041, Rye Patch Gold’s CEO and President, is a Qualified Person as defined under National Instrument 43-101. He has verified the information contained in, and has reviewed and approved the contents of, this news release.
Rye Patch Gold Corp. is exploring well-known mineral trends in Nevada – the world’s fourth-richest gold region. Starting with 150,000 inferred ounces of gold in mid-2007, this well-funded Company now has 1.2-million ounces of gold and gold equivalent in the measured and indicated category, plus 2.7-million ounces of gold and gold equivalent in the inferred category. Rye Patch Gold is a Tier 1, Nevada-focused and discovery-driven company seeking to build a sizeable inventory of gold and silver resource assets in the mining friendly state of Nevada, USA. The Company’s seasoned management team is engaged in acquisition, exploration, and development of quality resource-based gold and silver projects. Rye Patch Gold owns and controls over 175 square kilometres of prime mineral claims and leases along the Oreana and Cortez trends. The Company is developing gold and silver assets along the emerging Oreana trend, located in west-central Nevada, and is exploring 65 square kilometres along the Cortez trend adjacent to Barrick’s two new gold discoveries. The Company has established gold and silver resource milestones and time frames in order to build a premier resource development company. For more information about Rye Patch Gold, please visit our website at www.ryepatchgold.com.
On behalf of the Board of Directors
William C. (Bill) Howald, CEO & President
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company’s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company’s control. These factors include: the availability of funds, the financial position of Rye Patch to pursue legal undertakings; the outcome of legal action relating to the Rochester property and the LH unpatented claims, the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions. Litigation is inherently uncertain and factors that could cause actual results to differ materially from those in forward-looking statements include unexpected judicial findings of fact, previously unknown facts arising, and decisions which depart from past legal precedent and similar events.
Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Feb. 1, 2012) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO U.S. NEWSWIRE SERVICES
Brixton Metals Corporation (TSX VENTURE:BBB) (the “Company” or “Brixton“) is pleased to announce that it has entered into an agreement to complete a brokered private placement financing (the “Private Placement“), on a “best efforts” agency basis, through a syndicate of agents led by Euro Pacific Canada Inc. and Fraser Mackenzie Limited (the “Agents“). The Private Placement provides for the issue of up to 14,285,715 flow-through shares of Brixton (the “FT Shares“) at a price of $0.21 per FT Share for gross proceeds of up to 3,000,000. The closing of the Private Placement is scheduled to occur on or about February 22, 2012. All FT Shares issued pursuant to this Private Placement will be subject to a four month and one day hold period. The Private Placement is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.
In connection with the Private Placement, the Agents will receive a cash commission of equal to 7.0% of the gross of the Private Placement. The gross proceeds from the sale of the FT Shares will be used for exploration expenditures which will constitute Canadian exploration expenses (as defined in the Income Tax Act (Canada)) and will be renounced for the 2012 income tax year. These expenditures will be used on the Company’s Thorn property.
About Brixton Metals Corp.
Brixton is an exploration company engaged in the acquisition and exploration of precious metal assets. Brixton’s management is focused on advancing large-scale metal deposits to feasibility. The Thorn Project is Brixton’s flagship property and is centered on a network of silver-gold-copper-lead-zinc-bearing veins, breccia and porphyry mineralization. The Thorn property is located in northwestern British Columbia, Canada, about 50 km from the past producing Golden Bear Mine and 130 km southwest from the village of Atlin, BC. Brixton Metals Corporation shares trade on the TSX-V under the ticker symbol BBB and BBB.WT. For more information about Brixton please visit our website atwww.brixtonmetals.com.
On Behalf of the Board of Directors
Mr. Gary R. Thompson, Chairman and CEO
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation; statements about the closing date, use of proceeds and exercise of the Company’s option agreement, are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSXVenture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and Excelsior undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Midas Gold Corp. today announced further assay results from its ongoing exploration and definition core and reverse circulation (“RC”) drilling program on the Hangar Flats and Yellow Pine deposits at its Golden Meadows Project, Idaho. Previously reported 2011 assay results can be reviewed on the Corporation’s web site. Newly received results are summarized in Table 1, below, and highlight the discovery of new areas of high grade gold-silver-antimony +/- tungsten mineralization within the Hangar Flats and Yellow Pine deposits. Complete results are tabulated in Table 2 attached at the end of this news release.
HIGHLIGHTS
-- MGI-11-057 intersects 175.9m of 2.56g/t Au, 2.4g/t Ag and 0.22% Sb,
including higher grade intervals
-- MGI-11-134 intersects 23.3m of 2.12g/t Au and 332g/t Ag including 2.4m
of 1.4g/t Au, 3,160g/t Ag, 0.15% Sb and 0.85% W
-- MGI-11-152 intersects 22.9m of 4.91g/t Au and 1.9g/t Ag
-- MGI-11-159 intersects 44.2m of 2.04g/t Au, 4.7g/t Ag and 0.43% Sb
TORONTO, ONTARIO–(Marketwire – Feb. 1, 2012) – Continental Gold Limited (“Continental” or the “Company”) (TSX:CNL) is pleased to announce results for nine diamond drill-holes from the Company’s ongoing program at its 100%-owned Buritica Project in Antioquia, Colombia. Ten drills are currently on site as part of the Company’s Phase III, 60,000-metre diamond drill program for 2012.
Highlights
Yaragua (Figures 1 and 2)
--Â Step-out drilling to the west at the Yaragua System has extended the
   strike length of several veins between 50 to 75 metres and the veins
   remain open along strike and at depth. Significant intercepts include 25
   metres @ 13.3 g/t Gold and 16 g/t Silver (including 4.5 metres @ 52.8
   g/t Gold and 16 g/t Silver) in drill-hole BUSY224, which is outside the
   current National Instrument 43-101 ("NI 43-101") compliant resource
   estimate.
--Â BUSY238, the first deep penetrating drill-hole to test the Yaragua
   System vertically, was drilled to over 1,000 metres before completion.
   Significant intercepts below the current NI 43-101 resource estimate
   include 36 metres @ 6.7 g/t Gold and 11 g/t Silver. A second deep
   penetrating diamond drill hole is nearing completion and a series of
   deep holes are planned to probe the depth extent of the Yaragua System
   in 2012.
--Â Step-out drilling in eastern Yaragua demonstrated that the system
   remains open to the east and at depth. Results outside the current NI
   43-101 compliant resource model include 3.65 metres @ 13.5 g/t Gold and
   552 g/t Silver.
La Mano (Figure 1)
--Â BUSY228, the second drill hole completed at La Mano target prior to the
   end of 2011, yielded several high silver/gold mineralized zones at
   shallow depths and, encouragingly, at greater depths. A significant
   intercept to the south intersected 0.6 metres @ 55.4 g/t Gold, 6 g/t
   Silver and 1.42% Zinc. Two diamond drills are presently being mobilized
   to the La Mano target with drilling expected to commence towards the end
   of February. The next assay results from La Mano will be released once
   five to ten holes have been completed and analyzed.
Veta Sur System (Figures 1 and 3)
--Â BUSY231, the third deep penetrating drill hole to test the Veta Sur
   system, intersected 5.95 metres @ 125.9 g/t Gold, 66 g/t Silver and 1.6%
   Zinc before the hole ran into technical difficulty and was abandoned at
   approximately 550 metres down-hole, ending in mineralization. This hole
   extended the northern Veta Sur system by more than 100 metres of strike
   length and to a depth of approximately 500 metres from surface outside
   of the current NI 43-101 resource estimate. The reader should be
   cautioned that due to drilling difficulties, a recovery rate of 25% was
   achieved in this portion of the interval and, consequently, the result
   should only be regarded as an indication that high-grade mineralization
   occurs at this depth in the northern portion of the Veta Sur System. The
   Company intends to re-drill this hole in short order.
--Â BUSY225 drilled from northern Veta Sur intersected high silver/gold base
   metal-rich mineralization (including 1.9 metres @ 0.5 g/t Gold and 326
   g/t Silver), open laterally and at depth.
--Â BUSY226 encountered several broad mineralized intervals (for example 7.2
   metres @ 5.2 g/t Gold and 36 g/t Silver, including 1.55 metres @ 16.3
   g/t Gold and 115 g/t Silver) mainly outside the current resource model.
“Our exploration efforts at Buritica continue to expand the mineralized footprint of the project. The initial deep hole at the Yaragua System and the La Mano intercept bode well for an updated NI 43-101 compliant resource due to be released during the summer of 2012,” commented Ari Sussman, CEO. “The Company is well funded for its exploration and development programs with a $58 million budget for 2012.”
Details
Continental’s 100%-owned, 19,452-hectare project, Buritica, contains several known areas of high-grade gold and silver mineralization, of base metal-carbonate style (“Stage I”) variably overprinted by texturally and chemically distinctive high-grade “Stage II” mineralization. The two most extensively explored of these areas (the Yaragua system and the Veta Sur system, Figure 1) are central to this land package. The Yaragua System has been drill-outlined along 650 metres of strike and 600 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill intersected along 550 metres of strike and 1,180 vertical metres. Both systems are characterized by multiple, steeply dipping veins and broader, more disseminated mineralization and both remain open at depth and along strike, at high grades. Continental recently issued a NI 43-101 compliant maiden resource for parts of the Yaragua and Veta Sur systems. See “about Continental Gold” below.
Scotgold Resources ( LON:SGZ ) announced Tuesday it expects to receive a mining lease from the Crown for the Cononish gold and silver project  in May this year.
A unanimous decision by the Parks Authority to grant planning permission was received in October and by bid-March, consultants AMC should have completed the project development study, the group, based in Sydney Australia, said in a quarterly update.
Approval for Britain’s only commercial goldmine was given in October despite opposition from environmental groups about fears for the Loch Lomond and the Trossachs National Park and tourist interests in the area. The mine is around 1 kilometre inside the park boundary.
It was the second time Sydney-listed mining company Scotgold had applied to mine gold and silver at the Cononish site, which it bought in 2007.
It was turned down in 2010 over concerns about waste – 400,000 tonnes will be produced over the mine’s 10-year life – and rehabilitation. Production could start early in 2013.
The project consists of the establishment of a small underground mining operation with associated processing facilities and infrastructure. It is estimated the mine would produce around 20,000oz of gold and 80,000 oz of silver annually, according to Scotgold.
Scotgold is also undertaking exploration activities on its land position outside the park at the River Vein prospect and at its Grampian gold project, regional fieldwork including ongoing stream sediment sampling continued over the three months to end-December 2011.
Reprocessing of British Geological Survey aeromagnetic and gravity data over areas of the Grampian project area is nearing completion and results are awaited, but permission for a new airborne magnetic survey has not been granted.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 31, 2012) - Further to its press release of January 24, 2012, Starcore International Mines Ltd. (TSX:SAM) (the “Company”) announces that it has closed its non-brokered financing for gross proceeds of $2,252,500. The financing was in the form of 9,010,000 Units at $0.25 per Unit (a “Unit”), each Unit comprised of one common share of the Company (a “Common Share”) and one-half of one transferable share purchase warrant (a “Warrant”). Each whole Warrant entitles the holder to acquire one common share of the Company at a price of $0.35 to January 30, 2014.
Finders’ fees applied in this transaction in the form of cash commissions of $87,150 and 464,800 Agent Warrants, each Warrant entitling the holder to acquire one common share of the Company at a price of $0.25 to January 30, 2013.
All securities issued pursuant to the private placement are subject to a four month hold period to May 31, 2012.
For more information on the Company visit our website at www.starcore.com.
ON BEHALF OF STARCORE INTERNATIONAL MINES LTD.
Robert Eadie, President
The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.
After a tough year in 2011, there is definitely a good selection of underpriced junior resource stocks available for astute investors to focus on before the rest of the herd finally wakes up and smells the gold. In this exclusive interview with The Gold Report, Matthew Zylstra, mining analyst at Northern Securities, reviews the gold, silver and PGM markets and tells us why he believes that better times are ahead for junior miners in 2012, and which ones he particularly likes at current price levels.
The Gold Report: When you last spoke with The Gold Report in early March of last year, gold was trading around $1,420/ounce (oz) and silver was around $36/oz. Silver peaked about $49/oz in late April and then gold hit around $1,900/oz in September. Now we’re back up above $1,700/oz on gold and about $33/oz on silver. Where do you see these prices going this year, after it appears that they have likely bottomed out?
Matthew Zylstra: We’re long-term bulls on both metals. Gold has been correcting since September and it looks like it bottomed out around $1,500/oz. We believe the recent decline is a normal pullback in a longer-term uptrend where nothing has really changed to the outlook. We see a perfect environment for the metal—concerns over our currency debasement, negative real interest rates, geopolitical friction, etc. I expect gold will reclaim the 2011 highs and could reach $2,000/oz.
For silver, the picture is less clear. Silver is, in part, an industrial metal accounting for around 50% of demand and less of a currency. Silver peaked at almost $50/oz in April 2011 and the price has been very volatile. We think the move is a correction, again, in a longer uptrend going back to 2003. I expect silver will trade around the mid-$30/oz range this year.
We actually feel platinum has a lot of potential. South Africa, Zimbabwe and Russia account for about 90% of platinum production and there’s a scarcity of good platinum metals group (PMG) projects outside those countries. We expect increased investment demand and believe that supply disruptions, as well as resource nationalization concerns, will drive the price higher. We note that Sprott Asset Management has formed a physical platinum and palladium trust, which could boost investment demand.
TGR: So, what really happened to the platinum market? Historically, platinum traded at a 30–40% premium over gold. Does it have to do with industrial demand or what happened to cause it to trade below gold?
MZ: The main industrial use for platinum/palladium is automotive catalysts. With fears of a global slowdown, their prices came off. But our view is that supply is not going to be able to meet the demand going forward. And, as you mentioned, platinum has historically traded at a significant premium to gold but the value is now only about 95% of the price of gold.
TGR: Getting to the actual equities, the gold and silver stocks certainly didn’t track the metals prices very well the last year. What’s been the problem?
MZ: Gold stocks have performed poorly compared to the metals. We believe this has to do with investors being leery about another period similar to what occurred in 2008 when credit markets froze. Exploration and development companies, in particular, are sensitive to what’s going on in the capital markets since they require capital to continue exploration. Take, for example, Trade Winds Ventures Inc., which was acquired last year by Detour Gold Corp. (DGC:TSX). Shares of Trade Winds traded down to $0.03 in the 2008 crisis. Trade Wind shares were later bought for cash and stock, which at the time amounted to about $0.45 a share. My point is that people are nervous but that creates opportunity especially with what I believe will be a catch-up in equity prices.
TGR: I hope with metals prices staying up, the credit markets will be a little more optimistic and will loosen up a bit.
MZ: We certainly don’t expect another period like 2008. I think that was an aberration.
TGR: So, I hope the stocks start picking up here and not continue acting like gold is $800/oz and silver is $15/oz.
MZ: That is what we expect and the precious metals stocks could really get a boost on QE3 or other stimulus programs.
TGR: So, what do you think is going to be some sort of catalyst to get people more excited faster? Or is this just going to have to be a gradual progression and we are going to have to wait for $2,000/oz gold and $50/oz silver for people to really get into this market?
MZ: The disconnect between gold/silver prices and mining company equities has grown considerably. The sector is cheap by historical standards when you consider the price of gold miners’ shares relative to the price of gold. The Philadelphia Gold and Silver Index (XAU), which is an index of 16 precious metals and mining companies, is close to the lowest level it has been since the 2008 crisis relative to gold. We expect this ratio to gradually work its way back to the average. If we see gold mining stocks move up to even the low end of their historical range versus gold, it will mean a significant gain for many of these companies.
Increased merger and acquisition (M&A) activity in the sector will get people interested in a lot of these companies. As the price of gold and silver continues to rise, the economics become very compelling, especially for large- and mid-cap companies to acquire smaller players.
More interest in precious metals will help too. With what I see as a developing currency war—a race to devalue—I think more investors are going to turn to precious metals and related equities.
TGR: It certainly seems like there are a lot of smaller companies out there with some interesting looking projects that may be sitting ducks for being taken over. If they have to keep going back to the market to raise more money and create more dilution, that could be a problem. What’s your thinking on that?
MZ: Small exploration companies are going to continue to need funds to advance their projects, and costs have been increasing. That’s a major problem. The need to raise capital isn’t going to change but we are seeing alternative ways of financing such as gold and silver streams, alternative debt arrangements and joint ventures, which mean less dilution.
TGR: A lot of companies that were able to load up with plenty of cash at reasonable prices are obviously happy in this market. Do you think they’re going to get pushed to go out and do acquisitions?
MZ: I think what we’re seeing now are mining companies with the ability to acquire languishing juniors taking advantage of the environment. The seniors and intermediates, which have filled up their treasuries with robust gold and silver prices, certainly have the ability to do the same. At the end of the year we saw companies like Agnico-Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) acquiring Grayd Resource Corp, AuRico Gold Inc. (AUQ:TSX; AUQ:NYSE) acquiring Northgate Minerals, and New Gold Inc. (NGD:TSX; NGD:NYSE.A) acquiring Richfield Ventures Corp. and Silver Quest Resources Ltd. We see this trend intensifying, especially if mining company valuations don’t keep pace with rising metals prices.
TGR: That brings us to a little follow-up on some of the companies that you talked about last time. A couple of the junior producers you talked about were Barkerville Gold Mines Ltd. (BGM:TSX.V) and Orvana Minerals Corp. (ORV:TSX). Can you tell us what’s going on with them?
MZ: The market has been disappointed with production from both companies. Barkerville recently got a boost after receiving a permit for its Bonanza Ledge property, which is a high-grade open-pittable gold resource. The delay in getting that permit meant that production was not what we had originally expected. Updated resource calculations for the company’s Bonanza Ledge, Cariboo Quartz and B.C. vein zone in the first half of 2012 could be a positive there.
Orvana has two properties that were both put into production in 2011. In Spain, the company’s El Valle-Boinás/Carlés is an operating gold mine, which is not seeing the head grade we had expected. Grades are slowly increasing from around 2 grams per tonne (g/t) to an expected 3.5 g/t. Its other project in Bolivia, the Don Mario mine, has a different problem. It’s an open-pit, copper-gold mine where recoveries have been less than expected—around 50% versus 70–80% for copper. We look for recoveries to improve and think a lot of the bad news has been priced into the shares. We’re also encouraged by the fact that Bill Williams has now taken the helm of the company. Bill has exceptional operational technical expertise.
TGR: So you feel both of those are reasonable values at this point?
MZ: On Barkerville we’re taking a wait-and-see approach and have the stock rated as a hold. On Orvana we believe the negative news has been priced into the shares and valuation looks compelling.
TGR: So, how about some of the near-term producers that you follow, such as Canadian Zinc Corporation (CZN:TSX; CZICF:OTCBB)?
MZ: Canadian Zinc is a situation where the valuation has not kept up with the project. The company recently passed the major hurdle for environmental approval of its Prairie Creek mine. It’s a really interesting story—an old Hunt Brothers mine that could be in production in 2014 or maybe even as early as 2013. For readers who don’t know the history of the Prairie Creek mine, it is in the Northwest Territories and was just a few months away from going into production when silver prices collapsed in the early 1980s and the Hunt Brothers went bankrupt. It’s a high-grade silver-lead-zinc mine with much of the infrastructure in place that we think has a lot of potential. We actually believe this is an ideal time to own shares of the company since fundamentals have improved and the share price has drifted lower with the sector.
TGR: So that’s another one to watch closely and this may be a good time to be picking some up. What about some of the other junior explorers that you like and have talked about in the past?
MZ: For very near-term production I have followed but do not cover Armistice Resources Corp. (AZ:TSX). The company expects to produce 25,000 oz gold in 2012. At around $0.22/share, which is about 50% less than last year, valuation looks interesting. Two that I cover, which are exploration stories, are NioGold Mining Corp. (NOX:TSX.V; NOXGF:OTCPK) and Prophecy Platinum Corp. (NKL:TSX.V; PNIKD:OTCPK; P94P:FSE). NioGold continues to drill at its Marban project in Val-d’Or, Québec. This is a joint venture with Aurizon Mines Ltd. (ARZ:TSX; AZK:NYSE.A) where Aurizon is funding $20 million for exploration. We think the resource could grow fairly significantly from the current 960,000 oz to 1.4–1.5 million ounces (Moz). We actually think Marban could give Aurizon’s other project, Joanna, some competition. I think the valuation looks fairly attractive here, trading at about 60% lower than our calculated net asset value.
We’re also excited about the potential of Prophecy Platinum. Prophecy has the Wellgreen deposit in the Yukon, which contains 12 Moz of combined PGMs and gold plus 2.4 billion pounds (Blb) of nickel and 2.2 Blb of copper. The in-situ value is around $50 billion and we think a preliminary economic assessment due out in Q112 will show some strong economics for an optimized open-pit. The company is carrying out other work to derisk the project, including metallurgical studies and additional infill drilling for which we’ll start seeing results early this year.
TGR: So, that one is well priced at this point and a buy as far as you’re concerned.
MZ: Absolutely. The price drifted down after the excitement over the updated resource estimate, but it’s come down to a level where we think it offers very good value. We have a $6.40 target price.
TGR: So then, let’s look at some silver juniors. One that you follow is Cream Minerals Ltd. (CMA:TSX.V; CRMXF:OTCBB; DFL:FSE). What’s going on with that one?
MZ: Cream is a company I cover and which I visited late last year. It’s an exploration company with a 41 Moz silver deposit called Nuevo Milenio. It also has about 300,000 oz gold. We believe the company has the potential to really expand the current resource. Cream completed about 20,000 meters (m) of drilling in 2011 and we expect an updated resource out late Q112. This should actually upgrade a fair amount of the Inferred resource to Indicated and could add about 30% to that resource. We also see it doing another round of drilling of 20,000–30,000m in 2012, which we think has the potential to more than double the current resource.
TGR: That sounds promising.
MZ: Another one I don’t cover but I think is very interesting is Oremex Silver Inc. (OAG:TSX.V; OARGF:OTCBB; OSI:FSE). This is a small-cap silver exploration company with assets in Mexico. The company recently moved up on good initial results on its Chalchihuites project. The project is in the same area as First Majestic Silver Corp.’s (FR:TSX; AG:NYSE; FMV:FSE) Del Toro project, and we understand First Majestic is aggressively acquiring property in the area. The company’s flagship property, Tejamen, has a defined 51 Moz silver deposit. We think the president and CEO is also a real asset for a company with a market cap of around $20M. He’s been manager of exploration and development for Barrick Gold Corp. (ABX:TSX; ABX:NYSE) in South America.
TGR: So, are you expecting that 2012 is going to be the year that mining stock investors finally wake up and smell the gold and realize it’s time to get into this market?
MZ: I think this is the year! Investors have been cautious and focusing just on the downside, holding their money in cash. I think investors should be opportunistic and look for well-run companies with strong management and great assets.
TGR: Well, we’re certainly hoping for that also. We appreciate your joining us today and look forward to talking with you again.
MZ: Thank you and I appreciate the opportunity.
Analyst Matthew Zylstra joined Northern Securities in 2010 after having worked at Sprott Resource Corp. and investment counsel firm Foyston, Gordon and Payne Inc., a unit of Affiliated Managers Group Inc. He is focused primarily on junior precious metals producers and also follows some base metals miners. Zylstra has worked in the finance sector since 1999.
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Source: Zig LamboÂ
DISCLOSURE:
1) Zig Lambo of The Gold Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Gold Report: Detour Gold Corp., Barkerville Gold Mines Ltd., Orvana Minerals Corp., Aurizon Mines Ltd., Cream Minerals Ltd. Streetwise Reports does not accept stock in exchange for services.
3) Matthew Zylstra: I personally and/or my family own shares of the following companies mentioned in this interview: Orvana Minerals Corp., Oremex Silver Inc. I personally and/or my family am paid by the following companies mentioned in this interview: None. I was not paid by Streetwise for participating in this story.
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