Archive for category News Releases

EASTFIELD ANNOUNCES COMMENCEMENT OF EXPLORATION PROGRAM AT KILOMETRE 26 PROPERTY

Eastfield Resources Ltd. has commenced the fall exploration program at the Kilometre 26 gold-nickel project, located in central British Columbia, approximately 55 kilometres northwest of Fort St. James.

 The program, conducted by Oroandes Resource Corp., will attempt to define targets for a possible drill program in 2011. The current work includes a ground-based induced polarization (IP) and magnetometer survey, line cutting, soil sampling, prospecting, and rock sampling. Crews are on site and should complete the exploration over the next few weeks. The work program includes the completion of six line kilometres of new grid with soil sampling and geophysics to cover the full 30 kilometres of control grid.

Eastfield is also awaiting the results of microprobe work being undertaken to identify what sulphide minerals or alloys may be present in Kilometre 26 rocks where analytical results indicate that nickel contents vary between 0.15 per cent and 0.24 per cent (see Eastfield’s news release in Stockwatch of Oct. 14, 2010).

The current work will assist with examining the project ground for both the nickel target potential and epithermal hot springs gold potential along the regional Pinchi fault structure. First Point Minerals Corp. and Cliffs Natural Resources Inc. have made an important nickel discovery at the Decar property located approximately 30 kilometres to the west of the Kilometre 26 project. Both properties are located in similar geological settings of the Cache Creek terrane hosting serpentinized ultramafic rocks. The Kilometre 26 project is currently 5,645 hectares in size, has good access by a major industrial road, and recent logging has established a network of roads across the project.

Oroandes has the option to earn a 60-per-cent interest in Kilometre 26 from Eastfield by spending $1,575,000 on exploration, issuing 275,000 shares and making $107,500 in payments by Sept. 25, 2013.

, , ,

No Comments

LORRAINE COPPER ANNOUNCES CREW MOBILIZED TO THE LORRAINE COPPER GOLD PROJECT

Lorraine Copper Corp. has commenced the 2010 exploration program at the Lorraine project, which is being managed by Teck Resources Ltd. under a participation agreement with Lorraine Copper. The Lorraine property is located in the Quesnel terrane approximately 250 kilometres northwest of Prince George, B.C.

Teck has informed the company that it will be conducting a target generation program entailing the establishment of new soil geochemical surveys that will employ new techniques for seeing through overburden cover similar to what has been used successfully at the Kwanika Creek deposit to the south. It will also conduct a re-examination of existing drill core to apply newly developed alteration study parameters that have proven successful in other similar deposits to assist vectoring towards undiscovered mineralization.

Mineralization on the Lorraine property is related to alkalic intrusions and belongs to a deposit style that includes the Galore Creek project owned by Teck and NovaGold Resources Inc., the Imperial Metals Corp.-owned Mount Polley mine and the New Gold Inc.-owned New Afton project.

The Lorraine property is well served by resource infrastructure, including all-season roads, the Kemess power corridor to the northeast and the Canadian National Railway line to the southwest. The Lorraine project is located approximately 100 kilometres northwest of Terrane Metals Corp.’s Mt. Milligan project. A highlight from Teck’s most recent drill program in 2008 at Lorraine is drill hole L08-120, which intersected 159.2 metres grading 0.64 per cent copper and 0.30 gram per tonne gold in the Lower Main zone. The property consists of 119 claims totalling 30,659 hectares (75,759 acres).

Teck may earn a 51-per-cent interest in the Lorraine project by spending a total of $9.0-million by Dec. 31, 2010, and may increase its interest to 60 per cent by completing a feasibility study and to 65 per cent by arranging production financing. It is anticipated that Teck will earn the initial 51-per-cent interest after the completion of this year’s program.

On Sept. 11 of this year, Lorraine Copper staked an additional seven mineral claims (3,029 hectares) contiguous to the western side of the property.

G.L. Garratt, PGeo, is the qualified person who has reviewed and takes responsibility for this news release.

, , , , ,

No Comments

Serengeti Completes Exploration Access Agreement for Kwanika Project with Takla Lake First Nation

Serengeti Resources Inc. and the Takla Lake First Nation today announced signing of an Exploration Access Agreement for Serengeti’s Kwanika property, located 120 km north of Fort St. James in north central British Columbia. The Agreement covers all exploration and related activities on the Kwanika property until such time as a decision is made to enter into the mining permit application process.

Since Serengeti began exploration on the Kwanika property, it has consistently sought input from the nearby Takla Lake First Nation and hired many of its members to work at the site. The Agreement ensures that Serengeti will continue to provide Takla with opportunities to provide meaningful input into such aspects as environmental monitoring, protection of habitat for cultural important species, and protection of sites of important cultural or spiritual significance. It also provides training, employment, and business opportunities for members of the Takla Lake First Nation. In return, Serengeti has greater confidence in the continued access to the Kwanika property and the support of the local community as the project advances, as well as access to a local labour supply.

“We are very pleased to have reached this point in our relationship with Takla Lake,” said David Moore, President & CEO, Serengeti Resources Inc. “It has been very important to us from the outset of exploration on the property, that local communities support our endeavors.”

Chief Dolly Abraham of the Takla Lake First Nation, stated, “Takla has a policy of requiring all companies operating in our Territory to sit down with us and work out respectful agreements. Serengeti from the very beginning has been very proactive in seeking out a relationship with us, which is very important. That area is important to our Nation and members and we appreciate that Serengeti has been sensitive to our concerns about where they go, what they pay attention to in the environment, and how they do their sampling. It also means a lot to our people to be able to work close to home.”

Approximately 75% of staff on site during the 2010 exploration program are from the Takla community.

About Serengeti

Serengeti is a mineral exploration company managed by an experienced team of professionals with a solid track record of exploration success. The Company is currently advancing its Kwanika copper-gold project and exploring its extensive portfolio of properties in the highly prospective Quesnel Trough of British Columbia and has initiated exploration for gold-silver deposits in Mexico. Additional information on Serengeti’s projects can be found on the Company’s website at www.serengetiresources.com. Serengeti is well funded to advance its projects with a current working capital position of approximately $7.7 million which includes $2.9 million receivable from the B.C. government’s METC program. Serengeti has 46.2 million shares issued and outstanding and 51.5 million shares on a fully diluted basis.

, , ,

No Comments

Thompson Creek Enters Into Agreement To Acquire Terrane Metals Corp.

Thompson Creek to Acquire Major Growth Asset

Transaction advances development of the Mt. Milligan project in British Columbia

Thompson Creek Metals Company Inc. (“Thompson Creek”) (TSX:TCM)(NYSE:TC) and Terrane Metals Corp. (“Terrane”) (TSX VENTURE:TRX) jointly announce that they have entered into a definitive agreement pursuant to which Thompson Creek will acquire all of the issued and outstanding equity of Terrane. The transaction will be implemented by way of a court-approved plan of arrangement under British Columbia law (the “Arrangement”). Thompson Creek has also concurrently entered into an agreement with Royal Gold, Inc. (“Royal Gold”) with respect to the purchase and sale of 25% of the life of mine gold production (the “Gold Stream Transaction”) from Terrane’s Mt. Milligan Copper Gold Project (“Mt. Milligan”).

Under the Arrangement, holders of Terrane shares will receive C$0.90 in cash and 0.052 Thompson Creek common shares per Terrane share. The consideration implies an offer value of C$1.41 per Terrane share based on Thompson Creek’s closing price on the Toronto Stock Exchange (“TSX”) of C$9.90 per share on July 14, 2010. The consideration represents a premium of approximately 35% based on the volume weighted average trading prices of Thompson Creek and Terrane on the TSX and TSX Venture, respectively, for the 20 trading days ended July 14, 2010, and a premium of 21% to Terrane’s closing price of C$1.17 per share on the same day. The total value of the consideration offered to the shareholders of Terrane is approximately C$650 million.

Kevin Loughrey, Chairman and Chief Executive Officer of Thompson Creek, stated: “The acquisition of Terrane fits well in our strategic growth plan, providing us with clear production and revenue growth while diversifying our commodity exposure, all in a project with mining and milling processes, and a regulatory environment, with which we have considerable experience. We are utilizing a portion of cash on our balance sheet and our current cash generating capacity from existing operations while capitalizing on financing opportunities available through the Gold Stream Transaction. The upside from our existing asset base has been retained for our shareholders while structuring a transaction that we believe will be highly accretive on a cash flow basis once Mt. Milligan is in production. We believe with our Endako expansion, and now the Mt. Milligan project, we have substantially improved Thompson Creek’s growth profile.”

 Rob Pease, President and Chief Executive Officer of Terrane, stated: “We are pleased to join forces with Thompson Creek. Their financial depth, combined with the Royal Gold transaction, provides a clear path to complete funding of Mt. Milligan. Combined with their proven development and operating capabilities, this transaction has the opportunity to unlock the value of Mt. Milligan for all shareholders. Thompson Creek is committed to responsible development and mining and has an excellent track record of working cooperatively with host governments and communities wherever they operate, including British Columbia.”

 Chuck Jeannes, President and Chief Executive Officer of Goldcorp Inc. (“Goldcorp”), stated: “The Terrane management team has done an outstanding job in advancing Mt. Milligan towards development. The transaction with Thompson Creek provides a meaningful cash return for Terrane shareholders, while providing an opportunity to participate in the future success of Mt. Milligan through a combined, diversified, high growth base metals producer.”

 The transaction has been unanimously approved by the board of directors of Terrane following the report and favourable unanimous recommendation of a special committee of independent directors (the “Special Committee”). In doing so, the board of directors of Terrane determined that the Arrangement is fair to its shareholders and in the best interests of Terrane and authorized the submission of the Arrangement to the shareholders of Terrane for their approval at a special meeting of shareholders.

 Goldcorp has entered into a support arrangement with Thompson Creek under which it has agreed to vote in favour of the transaction. Goldcorp holds approximately 240.0 million preference shares and approximately 27.3 million common shares. Each preference share can, at the election of Goldcorp, be exchanged for one common share of Terrane. On a combined basis, Goldcorp’s shares represent approximately 58% of the outstanding voting equity of Terrane. In addition, certain officers and directors of Terrane holding approximately 1% of the common shares in aggregate have entered into support agreements.

 The board of directors of Terrane was advised by National Bank Financial Inc. (“National Bank Financial”) as financial advisor and Lang Michner LLP as legal advisor. The Special Committee was advised by Scotia Capital Inc. (“Scotia Capital”) as financial advisor and Fraser Milner Casgrain LLP as independent legal advisor. Each of National Bank Financial and Scotia Capital has concluded that as of July 14, 2010, the consideration to be received under the arrangement is fair, from a financial point of view, to the holders of common shares of Terrane. A copy of the National Bank Financial and Scotia Capital fairness opinions and the factors considered by the board of directors and Special Committee in approving the Arrangement, and other relevant background information will be included in the management information circular that will be sent to shareholders of Terrane in connection with the special meeting to consider the Arrangement.

 The transaction has been unanimously approved by the board of directors of Thompson Creek based upon, among other things, an oral fairness opinion from RBC Capital Markets. In doing so, the board of directors of Thompson Creek determined that the Arrangement is fair to its shareholders and in the best interests of Thompson Creek. The board of directors delegated the authority to provide final approval for the transaction to its executive committee.

 Benefits to Thompson Creek Shareholders

 The acquisition of Terrane is expected to provide the following benefits to shareholders of Thompson Creek:

 Mt. Milligan offers diversification beyond Thompson Creek’s current asset base of primary molybdenum deposits with the pro forma production profile providing for strong contributions from each of molybdenum, copper, and gold subsequent to the start-up of Mt. Milligan which is expected in 2013;

 The Gold Stream Transaction should allow shareholders to immediately capture value from gold production while providing funds for mine construction, retaining full leverage to base metal production and maintaining significant gold by-product credits;

 The combined business should have the ability to finance its strong combined project pipeline without equity dilution, which would generate significant production growth by 2013 when the Endako expansion and Mt. Milligan projects are expected to be completed; and

 Going forward, Thompson Creek should have avenues for future exploration and growth with a broader suite of earlier stage projects, including Mt. Emmons, Davidson and Berg that can be prioritized optimally for development and value creation.

 Benefits to Terrane Shareholders

 The transaction should provide the following benefits to shareholders of Terrane:

 Participation in a well-funded, diversified base metals producer, including ongoing exposure to Mt. Milligan, through the share component of the offer;

 Access to Thompson Creek’s proven development and construction expertise, and significantly greater financial resources to build and operate Mt. Milligan ; and delivery of an attractive premium with a meaningful cash component.

 Overview of Mt. Milligan

 Mt. Milligan is a construction-ready growth project. This transaction establishes Thompson Creek as a diversified, high growth base metals producer with a meaningful gold by-product. Terrane has a highly qualified and experienced management team; it is expected that many of these individuals will be retained by Thompson Creek.

 Upon closing, Thompson Creek will assume 100% ownership of Mt. Milligan, located approximately 150 km north-east of Thompson Creek’s existing Endako Mine. Mt. Milligan contains proven reserves of 274.6 million tonnes averaging 0.21% Cu and 0.44 g/t Au and probable reserves of 207.8 million tonnes averaging 0.19% Cu and 0.32 g/t Au, for a total proven and probable reserves of 482.4 million tonnes averaging 0.20% Cu and 0.39 g/t Au, totalling 2.1 billion pounds of contained copper and 6.0 million ounces of contained gold. Mineral reserves were calculated at US$4.10/t Net Smelter Return cut-off. Mt. Milligan has received an Environmental Assessment (EA) Certificate and a Mines Act Permit from the Province of British Columbia and the Environmental Assessment (EA) approval from the Government of Canada.

 Mt. Milligan will be a conventional truck-shovel open pit mine with a 60,000 tpd copper flotation process plant. The average annual production over the 22 year estimated mine life is expected to be 81 million pounds of copper and 194,000 ounces of gold (see Terrane press release October 13, 2009). Mt. Milligan is expected to provide approximately 400 direct permanent jobs and significant long-term economic benefits for the region.

 Thompson Creek intends to fund the remaining Mt. Milligan construction costs over approximately the next two and a half years from a combination of (i) pro forma combined cash balances, as adjusted for the April 16, 2010 Terrane equity offering, of approximately $178 million (all amounts in U.S. dollars, unless otherwise noted), (ii) the $311.5 million of proceeds from the Gold Stream Transaction, (iii) up to $250 million of debt finance in the form of equipment financing and a potential bank credit facility, (iv) internal cash generation, and (v) potential warrant proceeds including Thompson Creek’s existing warrants due in 2011 (potential proceeds of C$220 million) as well as the Terrane warrants due in 2011 and 2012 that will remain outstanding (potential net proceeds of approximately C$27 million).

 In June 2010, Terrane initiated the first phase of construction with a road contract and entered into a letter of intent with AMEC Americas Limited and Fluor Canada Ltd. to provide engineering, procurement and construction management services. Purchase orders have been made for long lead time items for the process plant and power supply equipment. Current development timelines are targeting the commissioning of the mine and mill complex in 2013.

 Other Terrane Assets

 In addition to Mt. Milligan, Terrane has a number of other earlier stage mineral projects, the most substantial of which is the Berg copper-molybdenum-silver deposit, located in British Columbia approximately 150 km southwest of Endako, and a similar distance from Thompson Creek’s Davidson project. Berg is a porphyry deposit with a current defined measured resource of 53.3 million tonnes at 0.48% Cu, 0.030% Mo and 4.5 g/t Ag and indicated resource of 452.7 million tonnes at 0.28% Cu, 0.038% Mo and 3.7 g/t Ag for a total measured and indicated resource of 506.0 million tonnes at 0.30% Cu, 0.037% Mo and 3.8 g/t Ag totalling 3.3 billion pounds of contained copper, 412 million pounds of contained molybdenum and 61.4 million ounces of contained silver. Mineral Resources were calculated at 0.30% copper equivalent cut-off grade (see Terrane press release May 19, 2009).

 Other assets include an interest in the Howard’s Pass Joint Venture, which retains rights to option, Net Profit Interest and Net Smelter Return payments from Selwyn Resources Ltd. in respect of a zinc, lead and silver deposit in the Yukon. Terrane is also a minority joint venture partner with Laurentian Goldfields in the Maze Lake gold project in Nunavut.

 Thompson Creek Assets

 Thompson Creek currently owns and operates long-life open-pit primary molybdenum mines and roasting facilities, including the Thompson Creek Mine in Idaho, the Langeloth Metallurgical Facility in Pennsylvania and 75% of the Endako Mine in Northern British Columbia. Thompson Creek expects 2010 molybdenum production will be in the range of 29 to 32 million pounds, comprised of 22 to 24 million pounds from the Thompson Creek Mine and 7 to 8 million pounds from its 75% share of the Endako Mine. The expansion project that is currently underway at the Endako Mine is expected to raise Thompson Creek’s share of annual molybdenum production at that mine to 11 to 12 million pounds per annum.

 Thompson Creek also owns a high-grade underground molybdenum deposit near Smithers, B.C. known as the Davidson Project. The Project was in the advanced stages of permitting when development was halted in November 2008 due to economic uncertainty. The Davidson Project is currently being re-evaluated regarding various operating alternatives and related economic analysis. Thompson Creek is currently evaluating and has an option to acquire up to 75% of the Mount Emmons Project, a high-grade underground molybdenum deposit in Colorado.

 Details of the Arrangement

 The completion of the Arrangement is subject to, among other things, the favourable vote of 66 2/3% of the Terrane equity shareholders at a special meeting called to approve the transaction. The Arrangement will require approval by the Supreme Court of British Columbia. In addition, the transaction will also be subject to certain other customary conditions, including receipt of regulatory approvals. Terrane has also provided Thompson Creek with certain other customary rights, including a non-solicitation covenant and a right to match competing offers. In the event that the transaction is not completed, Terrane has agreed to pay Thompson Creek a termination fee equal to C$20 million, under certain circumstances. Officers and directors of Terrane have entered into support arrangements with Thompson Creek under which they have agreed to vote their shares in favour of the transaction, such shares representing approximately 1% of the current outstanding Terrane shares.

 Terrane currently has approximately 459.4 million basic and 535.6 million fully diluted shares outstanding. Total consideration payable to shareholders will therefore comprise approximately C$413 million in cash and 23.9 million Thompson Creek common shares. Terrane’s existing stock options, which are all in the money, will be exercised on a cashless basis for total consideration of approximately C$6 million and 0.4 million Thompson Creek shares.

 Terrane’s existing two series of warrants (approximately 45.5 million expiring in April 2011 with a strike price of C$1.50 and approximately 18.0 million expiring in June 2012 with a strike price of C$0.85) will remain outstanding and, in accordance with their terms, the holders thereof will be entitled to receive the same cash and share consideration as Terrane’s common shareholders upon exercise. Thompson Creek has reserved approximately 3.3 million shares for potential issuance under these two series of warrants.

 Following the completion of the proposed transaction, Terrane shareholders’ will own approximately 14% of the combined company on a fully diluted basis, including Goldcorp holding approximately 7%.

 Copies of the acquisition agreement and certain related documents will be filed with Canadian securities regulators and with the United States Securities and Exchange Commission and will be available at the Canadian SEDAR website at www.sedar.com and the U.S. Securities and Exchange Commission’s website at www.sec.gov. The management information circular in connection with the special meeting of shareholders to consider the Arrangement is expected to be mailed to shareholders over the coming weeks. The circular also will be available as part of Terrane’s public filings at www.sedar.com.

 Terrane expects to hold a shareholders’ meeting in September to consider the Arrangement and closing will occur shortly thereafter assuming receipt of all required approvals.

 The Gold Stream Transaction

 Thompson Creek and Royal Gold have entered into an agreement by which, upon Thompson Creek’s acquisition of 100% of Terrane, the Gold Stream Transaction will become effective. Royal Gold will, as part of the Gold Stream Transaction, purchase gold equal to 25% of the life of mine gold to be produced from Mt. Milligan.

 Under the terms of the Gold Stream Transaction, Thompson Creek will receive staged cash deposits aggregating $311.5 million; $226.5 million of which will be paid at the closing of the Arrangement; and $85.0 million to be paid during mine construction. The deposits will be offset against Royal Gold’s purchase of gold under the agreement. Until the deposit is completely reduced, the price for gold will be the prevailing market price. For each of the first 550,000 ounces of gold delivered to Royal Gold, Thompson Creek will receive cash per ounce equal to the lesser of a cash production payment of $400 or the prevailing market price. To the extent that the prevailing market price exceeds $400 per ounce, the deposit will be reduced. For each ounce of gold delivered thereafter, Thompson Creek will receive the lesser of $450 or the prevailing market price in cash, with any excess purchase price used to reduce the deposit. Once the deposit is reduced to nil, only the cash portion of the purchase price will be payable.

 Advisors

RBC Capital Markets is sole financial advisor to Thompson Creek in connection with the proposed transaction. RBC Capital Markets delivered an oral fairness opinion to the effect that as of July 14, 2010 the consideration to be paid under the Arrangement is fair from a financial point of view to Thompson Creek. Goodmans LLP is legal counsel to Thompson Creek in Canada and McDermott Will &Emery is legal counsel to Thompson Creek in the United States.

 National Bank Financial is sole financial advisor to Terrane in connection with the transaction and provided a fairness opinion to the board of directors. Lang Michener LLP is legal counsel to Terrane. Scotia Capital is financial advisor to the Special Committee and provided a fairness opinion. Fraser Milner Casgrain LLP provided legal advice to the Special Committee.

 Other

 Thompson Creek currently has 139.8 million basic shares outstanding and 170.6 million on a fully diluted basis. At closing Thompson Creek will issue 24.2 million shares in share component consideration for Terrane’s 459.4 million basic and preferred shares outstanding and for cashless exercise of all options. Thompson Creek is reserving 3.3 million shares as potential consideration to the holders of the Terrane warrants. Post transaction, Thompson Creek expects its basic and fully diluted share count will be 164.0 million shares and 198.2 million shares, respectively.

 Darin Labrenz, P.Geo., Vice President Business Development with Terrane, is the qualified person who prepared or supervised the preparation of the scientific and technical information concerning the Mt. Milligan and Berg projects in this news release.

 Conference Call

 Thompson Creek and Terrane will hold a conference call and webcast for analysts and investors to discuss the transaction on Thursday, July 15, 2010 at 11:00 a.m. (Eastern).

 To participate in the call, please dial 647-427-7450 or 1-888-231-8191 about five minutes prior to the start of the call. A live audio webcast of the conference call will be available at www.newswire.ca and www.thompsoncreekmetals.com. An archived recording of the call will be available at 1-800-642-1687 or 416-849-0833 (Access code 88516022 followed by the number sign) from 11:00 a.m. (Eastern) on July 15 to 11:59 p.m. on August 13. An archived recording of the webcast will also be available at Thompson Creek’s website.

 About Thompson Creek Metals Company Inc.

 Thompson Creek Metals Company Inc. is one of the largest publicly traded, pure molybdenum producers in the world. Thompson Creek owns the Thompson Creek open-pit molybdenum mine and mill in Idaho, a metallurgical roasting facility in Langeloth, Pennsylvania and a 75% share of the Endako open-pit mine, mill and roasting facility in northern British Columbia. Thompson Creek is evaluating the Mount Emmons Deposit, a high-grade underground molybdenum deposit near Crested Butte, Colorado. Thompson Creek has an option to acquire up to 75% of the property. The Company is continuing to pursue permitting of the Davidson Deposit, a high-grade underground molybdenum deposit near Smithers, B.C. Thompson Creek has approximately 750 employees. Its principal executive office is in Denver, Colorado, and it also has an office in Toronto, Ontario. More information is available at www.thompsoncreekmetals.com.

 About Terrane

 Terrane Metals Corp. is an exploration and mine development company focused on the development of the Mt. Milligan copper-gold and Berg copper-molybdenum-silver projects in British Columbia, Canada. Goldcorp Inc. (NYSE: GG; TSX: G) owns a 52.4% equity interest in Terrane on a fully diluted basis. More information is available at www.terranemetals.com.

 Terrane Technical Disclosure

 For further information on the Mt. Milligan project, please see Terrane’s “Technical Report – Feasibility Update Mt. Milligan Property – Northern BC”, completed by Wardrop, a Tetra Tech Company, effective October 13, 2009, and press release dated October 13, 2009. For further information on the Berg project, please see Terrane’s “2009 Mineral Resource Estimate on the Berg Copper-Molybdenum-Silver Property, Tahtsa Range, British Columbia”, completed by Equity Exploration Consultants Ltd., and Terrane Metals Corp., June 2009, and press release dated May 19, 2009.

, , ,

No Comments

Eastfield Resources Announces the Return of the Zymo Project

Eastfield Resources Ltd. has received notification that that NGEx Resources Inc. (formerly Canadian Gold Hunter Corp.) has terminated its option to earn an interest in the 10,790-hectare Zymo copper-gold property, 45 kilometres by road west of Smithers, B.C. Eastfield is currently planning the next program on this project and expects to conduct a significant exploration program on the property this season. Eastfield has an option to earn a 100-per-cent interest subject to a net smelter royalty in the Zymo property from a private company.

Eastfield optioned the property in 2007. It completed a reconnaissance exploration program that year, which resulted in the discovery of a new copper-gold porphyry occurrence now named the Hobbes zone. In 2008, an extensive exploration program of geochemical sampling, geophysical surveying, geological mapping and core drilling significantly expanded the property’s potential. An induced polarization chargeability anomaly associated with extensive rock alteration was outlined, extending for over six km (open-ended) with widths of two to three km. Within this large area are four exploration targets now known as the FM (where Freeport McMoRan drilled six holes in 1999), Hobbes, RD and URC.

The Hobbes zone is the most advanced to date and has been tested with nine drill holes. All holes intersected significant mineralization and have outlined an open-ended, mineralized zone that extends more than 600 metres. The most westerly hole, ZY-09-16, intersected the longest interval of mineralization to date and indicates the potential for extensions, to the west and south. Hole ZY-09-14 was a vertical hole drilled at the site of ZY-08-9 (72.0 m of 0.72 per cent copper and 0.54 gram per tonne gold) and ZY-09-10 (57.0 m of 0.43 per cent copper and 0.32 g/t gold), and confirmed that mineralization continues to greater depths at this location where a mineralized interval of 273 m was intersected. ZY-08-12, located one km southwest of the Hobbes zone, intersected 99.00 m of 0.11 per cent Cu and may indicate a significant potential for extending the zone in this direction (for details, additional information including maps may be viewed on the company’s website).

The URC target is 1.5 km west of the Hobbes zone and is characterized by a 1.5-kilometre-long, coincident, copper-gold-in-soil anomaly. This target is beyond the end of the geophysical grid in an area with no outcrops. However, a sample of mineralized float was found in this area that returned 0.33 per cent copper and 0.22 g/t gold. This untested target further expands the discovery potential for the property.

Eastfield is pleased to have the Zymo property returned with significant advancements and new targets. The company is excited about the exploration potential of the project. Eastfield is currently developing plans for a program this season.

G.L. Garratt, PGeo, who is a qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release

, ,

No Comments

Serengeti to Drill at Kwanika

Serengeti Resources Inc. is planning to complete a 10,000-metre drill program on its Kwanika copper-gold project in the Quesnel trough of north-central B.C.

“This planned $2.7-million program provides the opportunity to move Kwanika over the development threshold both in terms of tonnage and grade,” said David Moore, president and chief executive officer of Serengeti. “The south zone offers the potential for discovery of near-surface, open-pitable mineralization,” elaborated Mr. Moore. The company expects to have the two-drill program started in early June, 2010.

The drill program will be composed entirely of step-out drilling to expand the existing resource at the south zone, where 70 per cent of the favourable target area remains to be tested. The company’s previously reported NI 43-101-compliant resources, combining the south and central zones, total 1.1 billion pounds of copper and 1.6 million ounces of gold in the indicated resource category, and one billion pounds of copper and 500,000 ounces of gold in the inferred resource category — all estimated at a 0.25-per-cent copper-equivalent cut-off grade (see attached table).

 

                     KWANIKA MINERAL RESOURCES

                   Cu eq %  Tonnage    Cu    Au    Ag     Mo  Cu eq
Zone    Category   cut-off       Mt     %   g/t   g/t      %      %

Central               0.40     75.1  0.41  0.42    --     --   0.69
        Indicated     0.25    182.6  0.29  0.28    --     --   0.47
        Inferred      0.25     28.5  0.19  0.20    --     --   0.32
South                 0.40     62.2  0.41  0.09  2.25  0.014   0.59
        Inferred      0.25    129.1  0.30  0.09  1.76  0.010   0.45

Note 1: Copper equivalent calculation uses the following U.S. 
prices: copper, $2 per pound; gold, $900 per ounce; molybdenum, 
$15 per pound; and silver, $12 per ounce; and makes no provision for 
metallurgical recoveries and net smelter returns. Copper equivalent
equals copper percentage plus (molybdenum percentage times 15
divided by two). Gold grams per tonne times (900 divided by 31.1 
divided by two divided by 22.06) plus (silver grams per tonne times 
12 divided by 31.1 divided by two divided by 22.06). The base case
cut-off used for the mineral resources was 0.25 per cent copper
equivalent, which is comparable to other porphyry copper open pit
deposits in B.C.

Note 2: Canadian Institute of Mining, Metallurgy and Petroleum
definitions were followed for mineral resource estimation
and classification. By prescribed definition, mineral resources
do not have demonstrated economic viability and indicated
resources have a higher degree of confidence than do inferred
resources. The mineral resources fall within a pit shell defined
by long-term U.S.-dollar metal prices of copper, $3 per pound; gold,
$1,000 per ounce; molybdenum, $15 per pound; and silver, $16 per ounce.

Note 3: The silver content of the central zone is not modelled; and the 
molybdenum content of central zone is not significant.

 

In addition to the budget for the Kwanika project, $1-million is allocated for target development work on other regional exploration targets in the company’s extensive portfolio, as well as financing for a new project development outside of B.C. Upon completion of this summer’s drill program at Kwanika, the company expects to update the resource estimate, followed by a preliminary economic assessment.

The company has been advised by Newcrest Mining B.C. Ltd. that it has elected to withdraw from the Croy Bloom/Davie Creek option agreement. The work completed at the property has resulted in the tenure being extended to 2019.

Quality assurance/quality control

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the company’s qualified person, Mr. Moore, PGeo, president and chief executive officer of Serengeti Resources Inc.

,

No Comments

Tad samples up to 0.14 m of 52.48 g/t Au at Hazelton

TAD Capital Corp. has completed the 2009 program on the north zone of the Hazelton prospect. Work consisting of geological, geochemical and geophysical surveys has resulted in several new high-grade gold discoveries and increased the area of known gold mineralization on the property to 1,400 metres by 800 metres.

The program focused on evaluating the extent of mineralization near the margins of a granitic stock. Numerous gold-bearing veins are present in three areas situated along the perimeter of a Cretaceous stock, which measures 600 metres in diameter. Indications are that the stock is part of a larger intrusive body mapped digitally by the Geological Survey of Canada in 2008. The composition of the concealed intrusion is unknown but judging from surface exposures it ranges from granite to granodiorite and includes monzonite phases and rhyolite dikes.

Gold mineralization on the property conforms to a broadly defined intrusion-related class of deposits with gold mineralization hosted within a thermal aureole. The distinctive features of this class of gold deposits are sheeted arrays of parallel, single-stage quartz veins which are found over tens to hundreds of metres and preferentially located in the pluton’s cupola. These types of veins are also described as reduced intrusion-related gold systems represented by the Fort Knox, Pogo, Donlin Creek and Dublin Gulch deposits in Alaska and the Yukon.

Past work had recognized that the sulphide mineralogy of individual veins varies along strike and possibly along the dip direction. Sulphide content ranges from 2 to 45 per cent, and consists mainly of arsenopyrite (up to 30 per cent) and pyrite (up to 30 per cent).

The mineralization observed to date has two mineralogical characteristics that impact the precious-metal grades: mineralization dominated by arsenopyrite-pyrite-banded intergrowths; and mineralization dominated by banded arsenopyrite with minor pyrite-galena-sphalerite-tetrahedrite at the vein margins.

Locally, the veins carry small amounts of copper sulphides that include tetrahedrite. This mineral association is of particular significance and has returned a high-grade gold of up to 52.48 grams per tonne gold in one sample.

Camp area

In the Camp area, there are a minimum of 13 quartz-sulphide veins present over an area measuring 150 by 200 metres. The area is situated between two deeply incised creeks named West Creek and East Creek. Work completed in 2009 resulted in the exposure of six new veins.

The majority of the veins strike northwesterly and have gentle dips to the northeast with true widths ranging from six to 47 centimetres. One of the newly found mineralized zones consists of two 25-centimetre-thick veins separated by a 30-centimetre zone of altered monzonite host rock. The veins were exposed in a 0.8-metre-by-one-metre trench and sampled across a 0.8-metre width. This site returned 1.91 grams per tonne gold and 8.0 grams per tonne silver (sample 723372).

Two veins in close proximity to each other have been exposed by shallow trenches (samples 723351 and 723352). The vein dipping gently to the north (723351) contained 20 per cent sulphides with arsenopyrite being the dominant sulphide. The vein dipping gently to the northeast contained relatively high pyrite and lesser arsenopyrite (723352). The latter vein returned 52.48 grams per tonne gold and greater than 100 grams per tonne silver.

Re-exposure of a 1988 trench has resulted in the documentation of a 127-metre-long quartz-sulphide vein striking 346 degrees. Several locations along this trench were re-excavated using hand tools and then sampled. The vein is dipping to the east-northeast at a 44-degree angle and ranges in width from 15 to 35 centimetres. Four channel samples returned an average weighted content of 3.74 grams per tonne gold and 9.13 grams per tonne silver. One sample from a silica-sulphide cemented fault fracture returned 3.62 grams per tonne gold and 6.4 grams per tonne silver across six centimetres.

, ,

No Comments

Northgate Reports Third Quarter Cash Flow of $50.5 million

Northgate Minerals Corporation  today announced its financial and operating results for the fiscal quarter ended September 30, 2009.  

                            Third Quarter 2009 Highlights

    -   Generated excellent cash flow from operations of $50.5 million or
        $0.20 per share, for a year-to-date total of $145.7 million

    -   Reported adjusted net earnings of $7.7 million or $0.03 per share

    -   Produced 80,791 ounces of gold and 11.9 million pounds of copper at
        an average net cash cost of $539 per ounce of gold

    -   Sold 85,397 ounces of gold at a realized price of $982 per ounce and
        12.8 million pounds of copper at a realized price of $3.39 per pound

    -   Successfully completed an equity offering for net proceeds of $88.5
        million to fund the development of the Young-Davidson mine

    -   Northgate's cash balance at the end of the third quarter 2009 was
        $235.9 million

    -   Successful organic growth at Northgate's operations:

        -  Discovered a significant extension of mineralization at
           Fosterville, confirming that the Phoenix fault system continues
           down plunge

        -  Discovered a new gold zone located 300 metres (m) east of current
           reserves at Young-Davidson. The new zone is completely open down
           dip. In addition to this discovery, Northgate also reported drill
           results for 29 shallow diamond drill holes located in and around
           historic mine workings immediately east of current reserves, which
           have the potential to add to the 2.8 million ounces of reserves
           already on the property

        -  Identified approximately 870,000 tonnes of additional mineral
           reserves containing 93,000 ounces at Stawell, extending the mine-
           life until Q2-2012

Financial Performance

 Northgate recorded consolidated revenue of $120.2 million in the third quarter of 2009, compared with $99.3 million in the same period last year. Revenues were higher due to a 25% increase in gold production over the same period last year combined with higher realized metal prices for gold and copper in the most recent quarter. Revenues for the nine month period ending September 30, 2009 were $374.3 million.

The net loss for the quarter was $8.6 million or $0.03 per share compared with a net loss of $29.4 million or $0.12 per share in the corresponding quarter of 2008. Adjusted net earnings were $7.7 million or $0.03 per share in the third quarter of 2009, which was significantly higher than the adjusted net loss of $28.4 million or $0.11 per share in the same period last year. Adjusted net earnings do not include certain non-cash items from its calculation of net earnings prepared in accordance with Canadian generally accepted accounting principles. Northgate has prepared this figure as it may be a useful indicator to investors. Non-cash items in the third quarter of 2009 include a $10.4 million write-down of investments in auction rate securities and a $5.8 million (net of tax) mark-to-market loss on Northgate’s copper forward sales contracts.

During the third quarter of 2009, Northgate generated excellent cash flow from operations of $50.5 million or $0.20 per share, which was a dramatic improvement over the $0.6 million or $0.00 per share generated in the corresponding quarter of 2008. In the first three quarters of 2009, Northgate has generated cash flow from operations of $145.7 million.

In the third quarter of 2009, Northgate’s cash and cash equivalents increased by $115.2 million following the completion of a bought deal financing with net proceeds of $88.5 million and strong free cash flow from operations. Northgate’s balance sheet now boasts cash and cash equivalents of $235.9 million and each operation is expected to generate strong operating cash flow for the balance of the year.

, ,

No Comments

Bard Ventures 2009 Drilling Commences Lone Pine Molybdenum Project

Bard Ventures is pleased to announce that it has started the 2009 diamond drilling on its Lone Pine Molybdenum Property. The initial 2009 phase of compilation of all historic exploration work, geological mapping, soil and rock sampling has been completed and after interpretation of these results the Company has decided to commence a diamond drill program of up to 10,000 meters. The Property is located approximately 15 kilometers north-northwest of Houston, BC, and is situated in the Omineca Mining Division.

Lone Pine Molybdenum Property:

The 2009 geological mapping and soil sampling identified the location of the favorable geological units including new areas of Alaskite and granites hosting visible molybdenum mineralization. The Alaskite intrusive is the main focus of the Lone Pine Property and in drilling it has been interpreted as being the most favorable lithology for molybdenum mineralization and is the host to the existing resource. During the field program all of the historical showings were re-located which comprised of old pits and trenches where molybdenum mineralization had been located All of the known showings located during the mapping program are located within the zone of anomalous Moybdenum in soils and it will be these areas that will be tested in the upcoming diamond drill program.

The Lone Pine Property currently has a calculated measured and indicated resource at a 0.04% Mo cutoff of 110,340,000 tonnes grading 0.083%Mo containing 201,733,000 in-situ pounds of molybdenum. (Please refer to News Release dated January 22, 2009 for full resource disclosure).

The Property has an ideal location for operations with established infrastructure including:

  • Highway 16;
  • a natural gas pipeline;
  • a major hydro power transmission line and transformer sub-station; and
  • is located only 15 kilometers from the CN rail line in Houston, BC.

No Comments

Serengeti Encouraged by Regional Exploration Results

Serengeti Resources is pleased to report on exploration results from six projects, including reconnaissance drilling on two properties and drill target development on four other properties. Encouraging indications of gold mineralization have been obtained from drilling on one property and very attractive targets for future drilling identified on four other properties. Results from recent additional drilling on Serengeti’s flagship Kwanika property are expected to be available in several weeks and will be released when available.

Fleet Target

Serengeti recently consolidated by staking, a key claim in the centre of its Fleet property. The claims, located 50 km SE of the Kemess Mine, host several porphyry-style copper-molybdenum-gold showings. The most developed target is defined by a five by one kilometer, open ended area of geochemical and geophysical anomalies. Historical shallow drilling in the 1970’s intersected copper-molybdenum mineralization, including 0.18% copper over 55 meters in one hole and 0.24% copper over 15 meters in a second hole. Geophysical surveys by Serengeti in 2008 and by prior operators in the mid 1990’s identified an open-ended Induced Polarization (IP) anomaly immediately adjacent to these intercepts. This IP anomaly is located in a covered valley-bottom which has not been targeted by previous explorers. In addition, sampling by Serengeti in 2008 of quartz veins outcropping on a ridge south of this IP anomaly, returned values as high as 2.8% copper, 1.3 g/t gold from selected grab samples. This is a high quality, largely covered, copper-molybdenum-gold target and additional work is planned for the 2010 field season.

Osilinka Drilling

A reconnaissance drilling program was carried out on the Osilinka property located 35 kilometer NW of Kwanika in late August and early September. Six widely-spaced shallow diamond drill holes were drilled to test several targets within a two by three kilometer area of geochemical and geophysical anomalies. In the eastern portion of the target area, a fence of three widely spaced holes identified several intervals of anomalous gold and minor Cu mineralization associated with zones of favorable silica and potassic alteration. Intersections include 1.88 g/t gold over two meters and a separate interval of 0.21 g/t gold over 18 meters in one hole and 0.10 g/t gold over 23 meters in the second. Three holes drilled in the western portion of the target area intersected un-mineralized mafic intrusive rocks.

The Osilinka property covers a 13 kilometer-long, complex magnetic anomaly of which less than half has been explored to date. The presence of porphyry-style alteration and anomalous gold in reconnaissance drilling highlights the potential of the Osilinka property to host a significant porphyry gold-copper deposit and additional work is planned for the 2010 field season.

Tchentlo — Indata Area Drilling

A reconnaissance drilling program was carried out in the Tchentlo-Indata area on the southern half of the Kwanika property during August 2009. The drilling area was located 10-25 kilometers south of Serengeti’s Kwanika copper-gold deposit, in what is interpreted to be a similar geological environment. Six widely spaced shallow diamond drill holes were drilled to test a series of geochemical and geophysical targets. Two holes drilled in the northern part of the property intersected weakly altered felsic intrusives with trace amounts of molybdenite. Two holes in the central part of the property did not penetrate what is interpreted as post-mineral sedimentary rocks similar to those that cover the Kwanika copper-gold deposit, 20 kilometers to the north. Two drill holes located in the south-eastern portion of the property encountered a zone of intensely silicified mafic intrusive with minor base metal mineralization, possibly located peripheral to a porphyry system.

Choo West Target

Compilation of proprietary prior geophysical data purchased earlier this year (see NR 2009-06 dated May 11, 2009) has identified several attractive targets on the western portion of Choo property. The new targets comprise several bulls-eye IP and magnetic anomalies, one to two square kilometers in extent and show similarities to targets recently described by Terrane Metals from the Mt Milligan area, located thirty kilometers to the east. This new area of interest lies west of the road network being used to support the recent drill program at Choo; (see NR 2009-11 dated October 13, 2009) so a helicopter supported follow-up program is planned for 2010 to confirm these targets.

Germansen & Valleau Targets

Mobile metal ion (MMI) partial extraction geochemistry was completed this summer over several IP targets previously identified by Serengeti at the Germansen and Valleau properties located 12 and 20 kilometers east respectively of Serengeti’s Kwanika property. At Valleau, two “rabbit-ear” or double peaked copper-silver-zinc anomalies were identified flanking IP chargeability anomalies, representing a classic drill target. At Germansen a linear zone of enriched copper was identified associated with an IP anomaly. Additional geochemical areas of interest were also identified on both properties. These targets could rapidly be upgraded for drilling by a follow-up program in 2010.

,

No Comments