Posts Tagged gold
Serengeti Completes Exploration Access Agreement for Kwanika Project with Takla Lake First Nation
Posted by Admin in Corporate Updates, News Releases on August 5th, 2010
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.
Serengeti Expands Potential of South Zone at Kwanika
Posted by Admin in Drill Results, News Releases on September 21st, 2009
Serengeti Resources reports the additional results from this summer’s exploration program at the Company’s Kwanika property in British Columbia.
Two new mineralized intercepts from drilling on the South Zone indicate that the South Zone extends to considerably greater depth than has been previously noted. The drilling has also shown that the South Zone, which abuts against a fault on the west side, the “West Fault”, is open to the south and east as well as to depth. More drilling is underway to expand the South Zone.
The results include a deep intercept grading 0.43% copper, 0.02 g/t gold, 2.0 g/t silver and 0.049% molybdenum (0.80% copper equivalent) over 65.5 meters in hole K-136 and in hole K-124, 0.36% copper, 0.01 g/t gold, 1.4 g/t silver and 0.007% molybdenum (0.43% copper equivalent) over 58 meters. The intercept from hole K-124 is additional to the previously reported 242.5 metres of mineralization.
|
Drill Holes K-09-124, K-09-129 to K-09-137 Significant Analytical Results |
|||||||||||
|
Hole |
From (m) |
To (m) |
Interval (m) |
Copper % |
Gold g/t |
Silver g/t |
Mo % |
Copper Equiv. %* |
Gold Equiv. g/t* |
Zone |
Orientation (dip/azimuth) |
|
K-124 |
259.5 |
622.0 |
362.5 |
0.35 |
0.04 |
1.7 |
0.014 |
0.49 |
0.84 |
South |
Vertical |
|
Incl. 259.5** |
502.0 |
242.5 |
0.41 |
0.05 |
2.1 |
0.018 |
0.58 |
1.00 |
|||
|
And 564.0 |
622.0 |
58.0 |
0.36 |
0.01 |
1.4 |
0.007 |
0.43 |
0.73 |
|||
|
K-136 |
412.0 |
440.0 |
28.0 |
0.09 |
0.00 |
0.6 |
0.008 |
0.15 |
0.26 |
South |
-65º / 90º |
|
502.0 |
677.5 |
175.5 |
0.26 |
0.01 |
1.1 |
0.024 |
0.44 |
0.76 |
|||
|
Incl. 524.0 |
589.5 |
65.5 |
0.43 |
0.02 |
2.0 |
0.049 |
0.80 |
1.37 |
|||
|
And Incl. 660.0 |
677.5 |
17.5 |
0.33 |
0.01 |
0.8 |
0.003 |
0.36 |
0.63 |
|||
|
K-130 |
80.0 |
82.0 |
2.0 |
0.17 |
0.22 |
1.6 |
0.017 |
0.43 |
0.74 |
East |
-60º / 270º |
|
K-132 |
91.8 |
97.9 |
6.1 |
0.47 |
0.14 |
0.9 |
0.003 |
0.58 |
1.00 |
North |
-65º / 90º |
|
K-133 |
Incl. 140.3 |
249.1 |
108.8 |
0.04 |
0.01 |
0.1 |
0.000 |
0.05 |
0.08 |
North |
Vertical |
|
K-129, 131, 134, 135, 137 indicated NSV |
|||||||||||
*Copper and Gold Equivalent calculations use metal prices of US$1.75/lb for copper, US$12/lb for molybdenum, US$700/oz for gold and US$12.50/oz for silver and both assume metallurgical recoveries and net smelter returns of 100%. Copper (Cu) EQ = Cu% + (Mo% x 12/1.75) + (Au g/t x 12.86/22.06) + (Ag g/t x 0.23/22.06). Gold (Au) EQ = Au g/t + (Cu % x 38.60/22.5) + (Mo% x 264.72/22.5) + (Ag g/t x 12.50/700).
** Previously Reported.
“The drilling reported on here adds size and depth to the South Zone and clearly indicates major expansion potential to the south and east.” stated President and CEO David Moore. “Hole K-136 in particular has returned excellent grades adjacent to the West Fault on the South Zone. Recent geological and geophysical modeling has traced this newly identified fault six kilometers to the south, opening up a large area for future exploration. We are very encouraged by the newly demonstrated potential at depth in the South Zone as indicated by holes K-124 and K-136. We are currently drilling several additional holes testing this potential.” added Moore.
South Zone Drilling (K-124, and K-135 to 137): Shallow drilling prior to Serengeti’s exploration suggested a limited resource that required more testing. Serengeti’s recent work has indicated the potential for expansion is wide open. Vertical drill hole K-124, the upper portion of which was previously reported (see NR 2009-08 dated August 26, 2009) was deepened and as noted above an additional mineralized interval grading 0.36% copper, 0.01 g/t gold, 1.4 g/t silver, 0.007% molybdenum (0.43% copper equivalent) over 58.0 meters was intersected. The overall mineralized intercept in K-124 now grades 0.35% copper, 0.04 g/t gold, 1.7 g/t silver, 0.014% molybdenum (0.49% copper equivalent) over 362.5 meters. K-136, an angle hole drilled from the west, drilled though the West Fault and then encountered a 175.5 meter mineralized interval to the bottom of the hole at 677.5 meters, including an interval assaying 0.43% copper, 0.02 g/t gold, 2.0 g/t silver, 0.049% molybdenum (0.80% copper equivalent) over 65.5 meters. Due to orientation and deviation of the drill hole, the intercept in K-136 lies on the same section as K-124.
K-135 which was unmineralized was a west-directed angle hole drilled from the collar of K-124 and helped define the West Fault. K-137 was drilled off the north end of the South Zone and was not mineralized.
North Area Drilling (K-131 to 134): Hole K-131, 132, 133 were drilled in the vicinity of previously reported hole K-08-122 which intersected 0.42% copper, 0.06 g/t gold, over 76.2 meters, approximately one kilometer north of the Central Zone resource. These three recent holes demonstrate that the K-122 area is structurally complex, with the best interval, 0.47% copper, 0.14 g/t gold occurring over 6.1 meters in hole
K-132 and a broad zone of anomalous copper intersected in K-133. Hole K-134 which was drilled off the north east end of the Central Zone was unmineralized.
East Area Drilling (K-129 and K-130): Two holes were drilled in the north-east quadrant of the property, with K-130 encountering a narrow mineralized interval grading 0.17% copper, 0.22 g/t gold over 2 meters immediately below unexpectedly deep overburden. K-129, drilled 1.4 kilometers to the south did not intersect significant mineralization.
Drill Program Summary Drilling has now been completed on Serengeti’s Osilinka property and results will be released when available. Drilling has now resumed at the South Zone at Kwanika, after which the drill will be moved to test attractive targets on the Choo and Mil properties.
Lorraine Copper does Private Placement
Posted by Admin in Financings, News Releases on July 30th, 2009
Lorraine Copper has received subscriptions for a non-brokered private placement agreement, subject to regulatory approval, for the sale of up to 2,000,000 units (each unit comprises one common share and one share purchase warrant) at a price of $0.05 per unit. Each warrant provides for the purchase of an additional common share at a price of $0.10 per share for five years from the date of regulatory approval. The shares issued pursuant to this private placement, and any warrants exercised therefrom, shall be subject to a four-month hold period.
Total gross proceeds of the offering will be $100,000. The proceeds of the offering shall be applied to general working capital.
The company shall pay no fees or commissions on behalf of the placement.
This offering is subject to approval of the TSX Venture Exchange.
Alpha Gold Prepares for 2009 Program
Posted by Admin in Corporate Updates, News Releases on June 3rd, 2009
Alpha Gold today announced that a drill program of approximately 5,000 metres is slated to begin in early August 2009. Exploration in 2009 will initially focus on the Canyon Creek Skarn (“CCS”). The goal of the 2009 exploration program is to focus on targets that indicate the potential for new discoveries and some infill drilling that, if successful, will result in expanding the current resource and possibly demonstrating continuity or expansion of other zones.
The design and logistics of 2009 field program will be finalized when all historical property data has been completely integrated into the drilling database and will commence when ground conditions permit. “Once permits are in place and drill targets have been finalized, we will have a drill turning on the property,” explained Richard Whatley, President and CEO. Geophysical, geochemical and geological data are being compiled by Hungry Hill Geological Ltd., the Company’s new Geological Consultant, and all historical data re-analyzed in order to generate targets in and around the CCS and the Glover Stock. Diamond drilling using NQ core size on the CCS will focus on three priority areas: (i) infill drilling to better establish the resource parameters of CCS mineralized body needed for an NI 43-101 resource calculation; (ii) new step-out targets that have the potential to extend the existing CCS mineralized zone; and (iii) test drilling skarn-like geophysical and geochemical anomalies that have been, and may still be, identified.
During this season, aerial orthophotography of the Lustdust Property and real time GPS surveying of all drill collars are proposed which will add to the reconnaissance for advancing the potential of the CCS. The total cost of the 2009 drill program is estimated to be C$1.3 million. There is C$3 million in the treasury. It is expected that upon completion of the 2009 drill program, a stand alone resource estimate can be reinitiated on the CCS. Earlier work on an NI 43-101 compliant estimate was discontinued due to insufficient drill data and downhole geophysics to meet NI 43-101 criteria.
Serengeti Resource Estimate Confirms 1.6 Million Ounce Gold and 1.1 Billion Pound Copper Indicated Resource at Kwanika
Posted by Admin in News Releases, Resource Estimates on February 25th, 2009
Serengeti Resources is pleased to announce the initial mineral resource estimate for the Central Zone at the Company’s 100% owned Kwanika copper-gold property in British Columbia.
The estimate for the Central Zone is based on 78 holes totaling 40,784 meters drilled between 2006 and 2008 which establish the volume, grade, and continuity of the mineralization. The mineral resources are reported within a defined volume and at various cut-off grades as presented below in the table of Kwanika Central Zone Mineral Resources.
At a 0.25% copper equivalent (Cu Eq)1 cut-off the Kwanika Central Zone Mineral Resources are:
- 182.6 million tonnes of Indicated Mineral Resources grading 0.47% Cu Eq or 0.71 g/t Au Eq, containing 1.62 million ounces of gold and 1.15 billion pounds of copper; AND
- 28.5 million tonnes of Inferred Mineral Resources grading 0.32% Cu Eq or 0.49 g/t Au Eq containing an additional 0.2 million ounces of gold and 120 million pounds of copper.
A higher grade core within the zone, at a 0.4% Cu Eq cut-off, yields:
- 75.1 million tonnes of Indicated Mineral Resources grading 0.69% Cu Eq or 1.05 g/t Au Eq, containing 1.02 million ounces of gold and 680 million pounds of copper.
The estimate was prepared by independent geological and mining consultants, Scott Wilson Roscoe Postle Associate Inc., under the direction of David W. Rennie, P.Eng. an independent Qualified Person, as defined by the National Instrument 43-101. Mr. Rennie has reviewed and approved the contents of this release. A technical report providing details of the estimate will be filed on Sedar (www.sedar.com) within 45 days.
“We are extremely pleased to have achieved this important milestone at Kwanika.” stated Serengeti Resources President and CEO, David W. Moore. “This NI 43-101 compliant Indicated Resource containing 4.2 million ounces gold-equivalent is a very significant building block for the Company. In light of current market conditions, our efforts this year at Kwanika will focus on selectively testing targets in the vicinity of the resource area, including targets mentioned elsewhere in this release, to seek and expand additional high grade mineralized centers.” elaborated Moore.
Kwanika Central Zone Indicated Mineral Resources
|
CuEq |
Tonnage |
Au |
Au |
Cu |
Cu |
Cu Eq % |
Au Eq |
|
1.00 |
10.20 |
0.90 |
0.295 |
0.77 |
173.0 |
1.36 |
2.07 |
|
0.75 |
21.93 |
0.70 |
0.494 |
0.63 |
304.9 |
1.09 |
1.66 |
|
0.50 |
48.58 |
0.51 |
0.801 |
0.49 |
521.3 |
0.82 |
1.26 |
|
0.45 |
59.31 |
0.47 |
0.894 |
0.45 |
591.6 |
0.76 |
1.16 |
|
0.40 |
75.07 |
0.42 |
1.015 |
0.41 |
684.0 |
0.69 |
1.05 |
|
0.35 |
98.42 |
0.37 |
1.170 |
0.37 |
806.4 |
0.61 |
0.94 |
|
0.30 |
133.26 |
0.32 |
1.370 |
0.33 |
964.8 |
0.54 |
0.82 |
|
0.25 |
182.63 |
0.28 |
1.616 |
0.29 |
1,152.6 |
0.47 |
0.71 |
Inferred Mineral Resources
|
CuEq |
Tonnage |
Au |
Au |
Cu |
Cu |
Cu Eq % |
Au Eq |
|
1.00 |
0.01 |
0.83 |
0.000 |
0.61 |
0.1 |
1.16 |
1.77 |
|
0.75 |
0.22 |
0.52 |
0.004 |
0.51 |
2.4 |
0.86 |
1.31 |
|
0.50 |
1.15 |
0.40 |
0.015 |
0.39 |
9.7 |
0.65 |
0.99 |
|
0.45 |
1.59 |
0.37 |
0.019 |
0.36 |
12.5 |
0.60 |
0.91 |
|
0.40 |
2.99 |
0.31 |
0.030 |
0.31 |
20.6 |
0.52 |
0.79 |
|
0.35 |
6.20 |
0.27 |
0.053 |
0.27 |
36.4 |
0.44 |
0.67 |
|
0.30 |
14.47 |
0.23 |
0.106 |
0.22 |
71.4 |
0.37 |
0.57 |
|
0.25 |
28.54 |
0.20 |
0.181 |
0.20 |
122.5 |
0.32 |
0.49 |
Note 1: Copper and gold equivalent calculations use metal prices of US$2.00/lb for copper and US$900/oz for gold and do not include factors for metallurgical recoveries. Preliminary metallurgical testing on one composite sample from Kwanika has indicated 88.5% recovery for copper and 65.2% recovery for gold in a locked cycle test. Characterization work is underway on gold distribution and additional test work could result in improved gold recovery. Cu Eq = Cu % + [Au g/t x ( 900 / 31.1 / 2.00) / 22.06] Au Eq = Au g/t + [Cu % x ( 22.06 x 2.00) / ( 900 / 31.1)]
Note 2: CIM 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 volume or shell defined by long term metal price estimates of US $2.00/lb for copper and $900/oz for gold. A 0.25% Cu Eq cut-off is considered to be reasonable for a porphyry deposit open pit in this location.
Drilling elsewhere on the property has indicated three additional mineralized areas for which drilling density is not currently sufficient to estimate a resource (see table below). The South Zone, has approximate dimensions of 1000 meters by 300 meters; the South historical Zone, 600 meters by 300 meters; the North target is presently defined by one hole (see maps on www.serengetiresources.com). Importantly, all three areas remain open for expansion and additional targets also include a geochemically anomalous trend lying to the east of the Central Zone as well as a very attractive new target located 10 km to the south described in news release #2009-02 dated January 26, 2009. Drilling in any one of these areas could result in the discovery of additional high grade, near surface copper-gold mineralization.
Other Mineralized Zones
|
Zone |
# of Holes | Cu Eq %Cut-off |
Average Composite Intercept |
||||
| (Length m) | Cu% | Au g/t | Mo% | Cu Eq% | |||
| South |
14 |
0.25 |
82 |
0.36 |
0.13 |
0.013 |
0.53 |
| South Historical |
11 |
0.25 |
40 |
0.31 |
—- |
0.008 |
0.37 |
| North target |
1 |
—- |
76 |
0.42 |
0.06 |
trace |
0.46 |
Note 3: Copper equivalent calculation uses metal prices of US$2.00 per pound for copper, US$900/oz for gold and US$15/lb for molybdenum with no provision for metallurgical recoveries. Cu Eq = Cu % + [(Mo % x 15/2.00) + (Au g/t x 900 / 31.1 / 2.00 / 22.06)]
Note 4: Gold data are not available for the South Zone historical drilling.
The Kwanika discovery has demonstrated that important tonnages of higher grade, supergene-enriched porphyry copper-gold mineralization can occur in the Quesnel Trough of B.C., where very favorable geology for hosting these deposits is blanketed by widespread overburden. Modern geophysical techniques are now able to penetrate this overburden cover and open up this very large under-explored area for exploration. Within this region, Serengeti has extensive holdings with many high quality exploration targets which remain to be tested.
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 focused on the advancement of its Kwanika copper-gold project and on the discovery of gold and copper deposits on its extensive portfolio of properties in the highly prospective Quesnel Trough of British Columbia. 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 working capital position of approximately $9.0 million.
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 David W. Moore, P. Geo., President and CEO of Serengeti Resources Inc. Sample analysis for the Kwanika drilling was completed at Global Discovery Lab in Vancouver, BC. A comprehensive quality assurance/quality control program formed part of the sampling protocol in addition to the laboratory’s own quality assurance program.
Eastfield Acquires Gold Property in British Columbia
Posted by Admin in News Releases, Property Agreements on February 23rd, 2009
Eastfield Resources has recently staked a new property in British Columbia named Kilometre 26. The property is located 55 kilometres northwest of Fort St. James and is easily accessed by a major industrial road.
The property, which covers approximately 1,840 ha, is centred and extends 15 km along the regional Pinchi Fault Zone. The property was staked to cover the area where, in 1983, Cominco discovered a boulder which repeatedly returned assay grades ranging around 8.1 g/t gold. The style of mineralization and alteration encountered on the property with the boulder is similar to what has been called Mariposite Ore, in the historic Motherlode district of California.
The Pinchi Fault is a major structural feature that separates distinct geological terranes. It extends in a northwesterly orientation for more than 450 kilometres. Current hot spring activity on the Pinchi Fault at Tchentlo Lake, located 50 kilometres to the north of the Kilometre 26 property, confirms that this activity continues.
The Pinchi Fault with its terrane bounding character, ultramafic intrusive affinities, mercury mineralization and hot spring activity is analogous to the Melones Fault (Motherlode District) and the Stony Creek Fault (Mclaughlin Mine), both in California, and offers potential for hosting major gold deposits. Much of the area is overburden covered. Eastfield is inviting joint venture partners to fund exploration on Kilometre 26.
Skeena Acquires Gold Project in Toodoggone
Posted by Admin in News Releases, Property Agreements on February 5th, 2009
Skeena Resources Ltd. has acquired a high-grade gold occurrence covered by the historic Mets mining lease in the Toodoggone precious metals district in north-central British Columbia. This area was one of the more actively explored in B.C. during the 1980s and 1990s, firstly for near-surface, epithermal-style, high-grade gold and silver, and later for porphyry-style copper-gold deposits.
The single-most significant development in the area is the 55,000-ton-per-day Kemess porphyry copper-gold mine, 40 miles to the south of Mets. Other past producers in the area include the Lawyers mine, located 10 miles to the south, which produced 174,000 ounces of gold and 3.6 million ounces of silver, and the Baker and Shasta mines, located 14 miles south, which also saw intermittent production between 1980 and 1996. At Baker (now owned and seasonally operated by Sable Resources), approximately 81,878 tonnes were mined at an average grade of 15.68 grams per tonne gold and 291 g/t silver, while at Shasta, 113,113 tonnes were mined at an average grade of 5.33 g/t Au and 292 g/t Ag.
At the Mets property, the main area of interest consists of a tabular core of silicified rock and quartz-barite veining in three separate but genetically related zones: the A zone (and its extension), the footwall zone and the 400 South zone. Exploratory work between the mid-1980s and 1992 consisted of various geological and geochemical surveys, excavator trenching, 8,784 metres of diamond drilling, and 350 metres of underground development on one level. On this basis, two previous operators calculated a gold resource. These historic tonnages are quoted here for context only, as the calculations are not compliant with current Canadian Securities 43-101 reporting guidelines and will require both verification and updating. The A zone has a strike length of 140 metres, a true thickness of six to 10 metres and vertical extent of up to 75 metres. Measured geological resource for the A zone is 143,321 tonnes grading 11.31 grams per tonne gold (assessment report 16692, source B.C. Minfile). Inferred resource for the less tested combined footwall and N75 zones are 317,485 tonnes grading 11.31 g/t Au (source B.C. Minfile, property file — MEG Talk, Nov. 18, 1987).
In 1992, Cheni Gold Mines Inc. optioned the Mets property, completed an in-house feasibility study, permitted the project and undertook a brief underground program. Its last recalculation of the A zone resource was a “diluted mine reserve” of 53,215 tonnes grading 11.6 grams per tonne gold. Development material from this deposit was to have been trucked over two field seasons to the nearby Lawyers mill. The program was abandoned when the French owners of Cheni prematurely shut down their Canadian gold operations. In 1993, the stockpiled development rock was placed back underground, the adit was sealed and the site reclaimed.
At least five other areas of alteration, quartz veining and mineralization occur elsewhere on the Mets property with previous trench results up to 12 g/t Au over two metres. None of these targets have yet been drill tested. The interpreted fault offset of the A zone presents another priority target where a single diamond drill hole yielded 22.834 g/t Au over a core length of 7.1 metres.
The property acquisition also includes the nearby Belle claims which host two significant, undrilled occurrences. Previous work at the Belle South prospect has identified an argillic alteration zone 200 metres long by two metres wide where grab samples yielded up to 107 grams per tonne gold and 30 to 103 g/t silver. The Belle North prospect consists of a poorly exposed quartz-barite vein structure with a surface trace of greater than 450 metres and a width of 0.75 to 1.8 m. Grab samples of float were reported to assay up to 1,960 parts per billion Au and 12,400 ppb Ag.
The purchase agreement, with two non-arm’s-length directors of the company, provides for Skeena to acquire a 100-per-cent interest in the two properties for one million shares and the reservation of a 2-per-cent net smelter return (NSR) royalty interest. The NSR interest is purchasable at any time for $500,000. The agreement, which is subject to regulatory approval, was reviewed by an independent committee of the company.
The company will undertake a program of environmental assessment and re-engineering this season in order to again permit the property under the small mine section of the British Columbia Mining Act (health, safety and reclamation code).
The qualified person responsible for review of the technical data in this news release is J.R. Allan, PGeol, the company’s president and chief executive officer.
Alpha Gold Provides Corporate Update
Posted by Admin in Corporate Updates, News Releases on January 22nd, 2009
Alpha Gold reported that Richard Whatley has been named Interim CEO, following the passing of George A. Whatley, on December 16 of British Columbia, Richard earned degrees in both chemical engineering and biomedical engineering. He has worked as a professional consulting engineer and is experienced in the environmental aspects of mining.
Interim CFO is Natalie Whatley, who has managed the accounting for the Company for many years now. The Company’s near term objectives are to finalize the third quarter interim reports, pursue the completion of the NI 43-101 technical report on the Canyon Creek Skarn, and prepare for exploration after the spring thaw at Lustdust.
Alpha Gold’s corporate office will be maintained at 410 Donald Street, Coquitlam, British Columbia, V3K 3Z8.
Mr Whatley commented “With almost $3.5 million in working capital, Alpha Gold is well positioned to carry out additional exploration work in 2009. We look forward to announcing the current year’s program once the Board has had a chance to receive and review the technical report and recommendations from our geological advisor. The Board is also reviewing options to add strength to Alpha’s management and technical teams in due course.”
Northgate Minerals Reports Record Gold Production
Posted by Admin in Corporate Updates, Financials, News Releases on January 14th, 2009
Northgate Minerals Corp. released record gold production in the fourth quarter of 2008, as well as the 2009 production forecast and exploration plans for its Canadian and Australian operations.
(All figures are in United States dollars, except where noted.)
Fourth quarter 2008 highlights:
- Achieved record quarterly gold production of 118,265 ounces, bringing total 2008 production to a record 354,800 ounces;
- Strong turnaround at Fosterville with 26,398 ounces produced, representing a new quarterly record;
- Production at Stawell of 30,553 ounces of gold, the fourth-highest quarterly production in the long 26-year history of the mine;
- Kemess produced 61,314 ounces of gold and 14.4 million pounds of copper;
- Northgate’s average net cash cost of production for its three operating mines was $421 per ounce of gold;
- Doubled the total gold resource base to over four million ounces at the Young-Davidson property;
- Announced the discovery of significant extensions to three mineralized zones at Fosterville.
2009 production forecast highlights:
- Northgate is forecasting record gold production of 392,000 ounces from its three operating mines in Canada and Australia;
- Copper production from the Kemess mine is forecast to be 54 million pounds;
- Northgate’s average cash cost of production, net of byproduct credits, is forecast to be $461 per ounce of gold assuming a copper price of $1.40 per pound and exchange rates of $1 (Canadian)/$1.25 (U.S.) and $1 (Australian)/$1.43 (U.S.);
- Exploration spending in Australia is forecast to be $8.2-million, split almost equally between the two operations, in support of mine-life extensions;
- Exploration spending for the Young-Davidson property is forecast to be $1.2-million, which will focus on targets outside of the known resource area.
Ken Stowe, president and chief executive officer, commented: “When we acquired Perseverance Corp. only 11 months ago, our stated and primary goals were to quickly increase the mine life at Stawell through an aggressive exploration program and underground infrastructure enhancements, and to dramatically improve the productivity at Fosterville. The results are readily apparent. At Stawell, after only five months of ownership, we added 140,000 ounces to the reserve in July, the single-largest reserve addition in the mine’s history. At the same time, working conditions underground have dramatically improved through significant investments in ventilation and cooling. Furthermore, ore haulage costs have been reduced by approximately 30 per cent with the acquisition of larger trucks. At Fosterville, having successfully completed the conversion to owner mining, our considerable turnaround efforts began to show tangible results in all areas during the fourth quarter, with the mine reporting the highest quarterly production in its history at a cash cost of $513 per ounce. In addition, we made considerable progress on the heated leach circuit, which will further improve gold recovery at the operation while allowing us to retreat previously produced high-grade leach circuit tailings containing over 50,000 ounces of gold. Our strong balance sheet will allow us to continue aggressive exploration programs at both Australian mines, where we plan to invest $8.2-million, building on our success in the GG6 zone at Stawell and the recent exciting results from the Harrier underground zones at Fosterville. In Canada, production of gold at Kemess is expected to decline slightly from 2008 levels. Mining in the west end of the pit is currently scheduled to be completed by midyear, at which time the mill will begin processing lower-grade stockpiles and east pit ores. At Young-Davidson, we are taking a fresh look at all aspects of the mine development plan based upon the very impressive doubling of the gold resource base announced in December. Once this rescoping has been completed, we will then commence feasibility study work. With record combined gold production from Kemess, Stawell and Fosterville forecast for 2009 and strong prospects for continued exploration success in Australia and at Young-Davidson, the year ahead should be an exciting one for Northgate and our shareholders.”
Consolidated fourth quarter production results
SUMMARY OF OPERATIONS
Q4 2008 Q4 2007 2008 2007
Production
Gold (ounces)(1) 118,265 41,467 354,800 245,631
Copper (thousands pounds) 14,391 16,766 51,906 68,129
Net cash cost ($/ounce)(2) 421 18 445 (22)
(1) Full-year production for Fosterville excludes the change in
gold-in-circuit inventory previously recorded in production for the
first quarter.
(2) Fourth quarter and full year 2008 cash-cost figures are unaudited
estimates and are subject to revision.
RESULTS OF OPERATIONS -- KEMESS SOUTH MINE
Q4 2008 Q4 2007 2008 2007
Ore plus waste mined
(tonnes) 7,388,248 8,042,000 28,260,894 42,025,404
Ore mined (tonnes) 5,027,556 3,206,000 13,851,896 17,060,785
Stripping ratio
(waste/ore) 0.47 1.51 1.04 1.46
Ore stockpile rehandle
(tonnes) 1,173,710 2,367,337 7,152,037 4,012,198
Ore milled (tonnes) 4,171,027 4,238,626 16,924,271 17,802,317
Ore milled per day
(tonnes) 45,337 46,072 46,252 48,773
Gold grade (g/t) 0.661 0.459 0.505 0.627
Recovery (%) 69 66 67 68
Production (ounces) 61,314 41,467 185,162 245,631
Copper grade (%) 0.196 0.238 0.174 0.214
Recovery (%) 80 75 79 81
Production (thousands of
pounds) 14,391 16,766 51,906 68,129
Net cash cost
($/ounce)(1) 395 18 272 (22)
(1) Fourth quarter and full year 2008 cash-cost figures are unaudited
estimates and are subject to revision.
Operational performance
The Kemess South mine posted production of 61,314 ounces of gold and 14.4 million pounds of copper in the fourth quarter of 2008, which was considerably lower than the forecast of 74,000 ounces and 18.5 million pounds, respectively. Metal production was adversely impacted by a burst water pipe, which caused serious damage to the mill’s distributed control system (DCS), resulting in six days of downtime just before Christmas. This event, combined with a one-week delay in accessing some higher-grade ore in the western end of the open pit, was responsible for the shortfall in production during the quarter. However, the ounces that did not materialize in the fourth quarter of 2008 will be produced in the first quarter of 2009.
Mining operations returned to near-normal levels in the western end of the open pit once waste rock was removed from the northwest corner where localized sloughing had occurred earlier in the year. A new radar-based wall monitoring system was installed to ensure safe operation until the western end of the pit is mined out in mid-2009.
The mill operated at an average throughput of 45,337 tonnes per day during the quarter and would have achieved a more typical 49,000-tonne-per-day rate had it not been for the unexpected DCS-related outage that occurred just before Christmas. Recoveries in the mill of 69 per cent for gold and 80 per cent for copper were consistent with historic norms for the hypogene ore, which was processed during the quarter.
The cash cost of production at Kemess in the fourth quarter was $395 per ounce, which was significantly higher than earlier quarters of 2008 due to the precipitous drop in copper prices from an average of $3.62 per pound in the first three quarters to $1.77 per pound in the fourth quarter. For the full year of 2008, the cash cost of production at Kemess averaged $272 per ounce.
RESULTS OF OPERATIONS -- STAWELL GOLD MINE
Q4 2008 Q4 2007 2008 2007
Ore mined (tonnes) 177,561 152,791 629,665 652,372
Ore milled (tonnes) 183,415 170,554 698,396 721,723
Ore milled per day (tonnes) 1,994 1,854 1,908 1,978
Gold grade (g/t) 5.97 6.00 5.25 5.39
Recovery (%) 87 89 87 89
Production (ounces) 30,553 29,635 102,679 112,058
Net cash cost ($/ounce)(1) 393 n/a 541 n/a
(1) Fourth quarter and full year 2008 cash-cost figures are unaudited
estimates and are subject to revision.
The Stawell gold mine produced a total of 30,553 ounces of gold during the three months ended Dec. 31, 2008. This represents the highest quarterly production during 2008 and the fourth-highest quarterly production total in the 26-year history of the mine.
Mine production of 177,561 tonnes during the quarter increased to its highest level of the year, as improvements in the mine’s ventilation and cooling systems and the commissioning of three 60-tonne haul trucks increased the effective mining capacity.
Approximately 183,415 tonnes of ore at a grade of 5.97 grams per tonne were milled in the fourth quarter of 2008. Gold recoveries in the mill were 87 per cent, which were on target with plan and consistent with the 87-per-cent-to-90-per-cent historic range.
The net cash cost of gold for the fourth quarter was $393 per ounce, which was significantly lower than previous quarters of the year, attributable to the decreased mining costs, milling of higher-grade ore and the weaker Australian dollar relative to the United States dollar.
RESULTS OF OPERATIONS -- FOSTERVILLE GOLD MINE
Q4 2008 Q4 2007 2008 2007
Ore mined (tonnes) 167,182 154,887 511,542 799,188
Ore milled (tonnes) 165,654 213,543 540,725 931,886
Ore milled per day (tonnes) 1,801 2,321 1,477 2,555
Gold grade (g/t) 6.03 4.00 5.39 3.27
Recovery (%) 82 70 70 77
Production (ounces)(1) 26,398 19,198 66,959 73,378
Net cash cost ($/ounce)(2) 513 n/a 836 n/a
(1) Full-year production for Fosterville excludes the change in
gold-in-circuit inventory previously recorded in production for the
first quarter.
(2) Fourth quarter and full year 2008 cash-cost figures are unaudited
estimates and are subject to revision.
The Fosterville gold mine produced 26,398 ounces of gold during the three months ended Dec. 31, 2008, which was a quarterly record for the mine and substantially higher than forecast. The ore grade milled during the quarter was consistent with forecast; however, gold recovery was significantly higher due to the lower proportion of black shale ore in the mill feed and several leach circuit process improvements that were implemented based on the results of the pilot plant. Gold recovery is expected to improve further in 2009 once the $4.75-million heated leach circuit is commissioned in the first quarter.
Mine development activities continued at a high rate during the fourth quarter and now extend into the heart of the thicker, higher-grade sections of the main Phoenix orebody, which will support production over the next several years.
Net cash cost for the fourth quarter was $513 per ounce of gold, which was dramatically lower than the first three quarters of 2008, as Northgate worked on the turnaround of the operation. The decrease in costs is the result of increased mining rates, higher ore grades, improved gold recovery and the weaker Australian dollar relative to the United States dollar.
Year ending 2008 financial results
Northgate’s audited financial results for the year ended Dec. 31, 2008, are scheduled for release before market opens on March 4, 2009, and the corporation’s year-end conference call and webcast for investors and analysts will be held at 10 a.m. ET on the same day.
2009 production forecast
Northgate is forecasting a record year for production in 2009 of 392,000 ounces of gold at a net cash cost of $461 per ounce.
Gold Copper Cash cost
(ounces) (thousands (ounces)
of pounds)
Kemess 173,000 54,000 $517
Stawell 107,000 N/A $388
Fosterville 112,000 N/A $445
------- ------ ----
392,000 54,000 $461
Assuming copper price of $1.40 per pound and exchange rates of
$1 (Canadian)/$1.25 (U.S.) and $1 (Australian)/$1.43 (U.S.).
KEMESS SOUTH MINE -- PROJECTED 2009 MINE PRODUCTION Ore plus waste mined (tonnes) 24,523,000 Ore mined (tonnes) 18,024,000 Stripping ratio (waste/ore) 0.36 Ore milled (tonnes) 17,581,000 Ore milled per day (tonnes) 48,167 Gold grade (g/t) 0.484 Copper grade (%) 0.181 Gold recovery (%) 64 Copper recovery (%) 77 Gold production (ounces) 173,000 Copper production (thousands pounds) 53,800 Net cash cost ($/ounce) 517
In 2009, the mine plan calls for the removal of 18 million tonnes of ore and 6.5 million tonnes of waste from the Kemess open pit. During the first three quarters of the year, the Kemess mill will process higher-grade ore that will be mined from the western end of the open pit. Beginning in the fourth quarter, milling of much lower-grade ore from surface stockpiles and from the eastern end of the open pit is scheduled to commence.
The Kemess mill is expected to operate at a throughput of 48,167 tonnes per day with the mill operating at 90-per-cent availability. The majority of the ore milled during the year will be hypogene ore with only a small quantity (10 per cent) of supergene and leachcap ore. Total metal production for 2009 is anticipated to be 173,000 ounces of gold and 54 million pounds of copper.
Production of gold-copper concentrate is forecast to total 131,000 dry metric tonnes, which will be shipped to Xstrata Copper’s Horne smelter in Rouyn-Noranda, Que. Annual smelting and refining terms for 2009 are expected to settle at around $75 per dry metric tonne and 7.5 cents per pound of copper with no price participation and it is expected that Kemess concentrate will be processed on comparable terms.
The unit mining cost is forecasted at $1.75 per tonne moved and the total average unit cost of production is forecast to be $11.90 per tonne milled, including $3.17 per tonne milled for concentrate marketing costs. Assuming byproduct copper and silver prices of $1.40 per pound and $9 per ounce, respectively, and an exchange rate of $1 (Canadian) per $1.25 (U.S.), the net cash cost is projected to be $517 per ounce of gold produced in 2009.
Since Kemess is approaching the end of its mine life, capital expenditures will amount to only $3.6-million.
STAWELL GOLD MINE -- PROJECTED 2009 MINE PRODUCTION Ore mined (tonnes) 724,000 Ore milled (tonnes) 833,000 Ore milled per day (tonnes) 2,280 Gold grade (g/t) 4.49 Gold recovery (%) 89 Gold production (ounces) 107,000 Net cash cost ($/ounce) 388
In 2009, the Stawell mine plan calls for 833,000 tonnes to be milled at an average grade of 4.49 g/t. Gold recovery is forecast to be 89 per cent and total gold production is expected to be 107,000 ounces. Ore for the mill will be sourced from the GG3, GG5 and Magdala reserve blocks while development toward the newly discovered GG6 zone is completed. Unit operating costs are forecast to total $72 (Australian) per tonne milled, consisting of mining costs of $46 (Australian) per tonne mined, milling costs of $23 (Australian) per tonne milled, and general and administrative costs of $8 (Australian) per tonne milled.
Although Stawell is a mature and well-run operation, there are still certain areas where improvements can be made. Due to the success of the pilot plant project at Fosterville in 2008, the plant itself will be shipped to Stawell where tests will be conducted to determine whether the historic 89-per-cent recovery at the mine can be improved in the future.
Capital expenditures at Stawell are forecast to total $10-million including $2.8-million for new mining equipment, $3.5-million for additional ventilation improvements, $1.1-million for a tailings dam raise and $1-million for upgrades, and the purchase of critical spares in the mill. Mine development capital and resource definition drilling costs are forecast to be $17.1-million primarily related to the GG5 reserve block and development toward the GG6 zone, which will support production in 2010 and 2011.
Exploration expenditures of $4-million are forecast for 2009 and will focus on three targets. The first target will be Sub-GG6, where a 6,900-metre program will be conducted to follow up on 2008 drilling, which yielded some very-high-grade intersections. The second will be the promising North Magdala target, where a planned drill program of 5,000 metres will be conducted. Lastly, 2,000 metres will be devoted to the Wonga Gift target. The balance of the exploration budget will be devoted to the exploration of several other promising targets on the 1,000-hectare Stawell mining lease. In addition to this extensive diamond drilling program, Stawell geologists will continue their very successful program of revisiting resource areas in the upper areas of the mine to identify additional reserves, which can be mined with very low development costs due to their proximity to existing workings.
FOSTERVILLE GOLD MINE -- PROJECTED 2009 MINE PRODUCTION Ore mined (tonnes) 731,000 Ore milled (tonnes) 733,000 Ore milled per day (tonnes) 2008 Gold grade (g/t) 5.41 Gold recovery (%) 84 Gold production (ounces) 112,000 Net cash cost ($/ounce) 445
In 2009, the Fosterville mine plan calls for the mill to process a total of 731,000 tonnes at a grade of 5.41 g/t. Gold recovery is estimated to be 84 per cent on average during the year and total production is forecast to be 112,000 ounces. Mine production during the year will come primarily from the heart of the main Phoenix orebody with the remaining production from the Ellesmere orebody. Unit operating costs are forecast to total $97 (Australian) per tonne milled, consisting of mining costs of $54 (Australian) per tonne mined, milling costs of $34 (Australian) per tonne milled, and general and administrative costs of $10 (Australian) per tonne milled.
The heated leach circuit is scheduled to be commissioned in the first quarter of 2009. Pilot plant tests indicated that gold recovery of 90 per cent on average can be achieved once this circuit is in full operation. Once this last operational deficiency has been corrected, attention will be turned to reduce operating costs at the mine with the goal of lowering Australian-dollar-denominated cash costs per ounce by as much as 10 per cent by optimizing the operation.
Capital expenditures at Fosterville are forecast to total $12-million, including $2.1-million for the completion of the heated leach project, $2.1-million for new mobile equipment, $1-million for a tailings dam raise, $900,000 for equipment rebuilds and approximately $500,000 for the tailings retreatment project. Mine development capital and resource definition drilling costs are forecast to be $14.5-million primarily related to the continuing development of the Phoenix and Ellesmere orebodies.
Exploration expenditures in 2009 are forecast to be $4.2-million and will focus on three areas. The key focus of the exploration program is the Harrier underground zone, with an 11,500-metre program that is already under way to follow up on the excellent results obtained during the 2008 program. The second target area is Phoenix Deeps, the downplunge extension of the main orebody at Fosterville where a drill program totalling 5,300 metres is planned. The third target area is known as Pegasus, which is a theorized structural repeat of the Phoenix mineralization at greater depth that will be drill tested during the year. A total of 3,500 metres have been allocated to this program.
Young-Davidson project
Upon completion of the underground ramp development at the end of 2008, mining equipment was demobilized and the remaining shaft refurbishing work on the 13th level will be completed in early 2009. The number of people working at the property is now 23, down from an average of 115 in 2008, and this group will continue to perform a variety of activities related to permitting and development, while keeping the mine dewatered.
The new resource estimate was released in December, 2008, and a National Instrument 43-101 technical report will be filed on SEDAR and on Northgate’s website at the end of January, 2009. The project focus has now shifted to optimize the National Instrument 43-101 preliminary economic assessment report, which was filed in August, by incorporating the new, dramatically larger resource, using the geotechnical information that has been collected, and making better use of the existing ramp and shaft infrastructure at the site. Once this process is completed, a full feasibility study will be commissioned.
The rocks that host the Young-Davidson deposit are known to extend to the west under barren cover rocks. Historically, only a handful of drill holes have been tested along strike west of Young-Davidson. Other targets on the property are geophysical anomalies that have similar characteristics to those of the known Young-Davidson deposit. Exploration in 2009 will focus on these targets outside of the known resource area.
Two thousand nine exploration spending at Young-Davidson is forecast to total approximately $1.2-million out of a total project budget of $8.6-million. The balance of the expenditures will be for permitting, engineering and feasibility studies, and site care and maintenance.
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2010-09-07 09:30
