page 11 www.MiningNewsNorth.com The weekly mining newspaper for Alaska and Canada's North Week of November 22, 2015 l EXPLORATION NEWS NUGGETS Compiled by Shane Lasley Novagold VP Williams joins Kaminak board of directors JV drills new zones of high-grade gold near Peak deposit at Tetlin Contango ORE Inc. Nov. 16 posted results from 19 of 32 holes drilled during the second phase of 2015 exploration at the Tetlin project near Tok, Alaska. This exploration was carried out by Peak Gold, a limited liability joint venture company formed to further the exploration and development of the Tetlin project. Royal Gold Inc. has the option to earn up to a 40 percent interest economic interest in Peak Gold by investing up to US$30 million prior to October 2018. “We are very pleased with the operations team at Peak Gold, managed by our joint venture partner Royal Alaska LLC, a wholly owned subsidiary of Royal Gold Inc.,” said Contango ORE CEO Brad Juneau. “This new phase II drilling, in conjunction with our 2015 phase I drilling pro- gram, has confirmed the presence of a gold mineralization in previously untested zones up to 3.5 kilometers (2.2 miles) away from the Peak deposit.” The 6,897 meters of drilling completed during the phase 2 program focused on two target areas – Peak West and North Peak-Blue Moon. Highlights from drilling at North Peak include: 1.92 meters of 70.9 grams per metric ton gold, 39 g/t silver and 0.015 percent copper in hole TET15165; 16.8 meters of 17.94 g/t gold, 4.2 g/t silver and 0.027 percent copper in hole TET15171; and 23.04 meters of 19.86 g/t gold, 4.2 g/t silver and 0.056 per- cent copper. Highlights from Peak West include: 5.54 meters of 22.08 g/t gold, 7.6 g/t silver and 0.11 percent copper, 6.25 meters of 6.45 g/t gold, 3.3 g/t silver and 0.126 percent cop- per, and 11.28 meters of 3.43 g/t gold, 2.8 g/t silver and 0.177 percent copper in hole TET15174; and 68.47 meters of 5.46 g/t gold, 0.4 g/t silver and 0.059 percent copper in TET15176. “Both of these new areas will require more drilling and analysis to define potential resource size,” said Juneau. In total, 14,059 meters of drilling was completed in 61 holes during the second phase of 2015 exploration at Tetlin. “The total amount spent during the 2015 exploration effort in phases 1 and 2 is approximately US$7 million, which is under budget as a result of more efficient opera- tions combined with more drilling from common surface pads,” the Contango ORE CEO added. “Peak Gold is work- ing to develop an exploration model to help determine new targets for future drilling, and the relationship between the separate zones of mineralization discovered to date. The joint venture will combine new drilling and assay results with information gained from surface samples and propri- etary ground and airborne magnetics and conductivity data to develop these future targets.” Promising copper-gold porphyry tapped at Shorty Creek project Freegold Ventures Ltd. Nov. 16 reported that the results of the fall 2015 drill program on its Shorty Creek project see NEWS NUGGETS page 12 Pogo District heats up Majors, juniors and prospectors position for exploring gold-rich area By SHANE LASLEY Mining News A s gold exploration cools globally, the search for the precious metal is once again heating up in the larger Pogo Mine region of Interior Alaska. One of the reasons this region continues to be a hotbed of gold exploration is Sumitomo Metal Mining Pogo LLC’s success in finding and expanding new deposits of high-grade gold on its Pogo Mine property, which anchors the Goodpaster Mining District. Another dozen promising prospects found beyond the borders of the Pogo Mine claims add to the intrigue of an area that stretches for some 70 miles along the Alaska Highway southeast of Fairbanks. Over the past year, global miners, junior explor- ers and prospectors have expanded known deposits, discovered new ones, consolidated land positions and assembled geological data – all in the search for another Pogo or Fort Knox mine in this gold-rich region of the Interior. Replenishing Pogo Sumitomo Metal Mining Pogo – a partnership between Sumitomo Metal Mining Company (85 percent) and Sumitomo Corp. (15 percent) – invested roughly US$15 million on exploration in the immediate Pogo Mine area during 2015, mak- ing this the largest exploration program in Alaska this year. Pogo General Manager Chris Kennedy told those attending the Alaska Miners Association Fall Convention in Anchorage that the exploration tar- geted nine areas “under our headframe” at Pogo. While the high-grade underground gold mine does not sport a headframe in the classical sense of the term, the mill facilities do happen to be posi- tioned on an island at the vertex of three high- grade gold deposits – Liese, North Zone and East Deep. Pogo began operation in 2006 by mining Liese, a zone immediately west of the mill. In 2010, SMM Pogo discovered East Deep, a twin to Liese that lies immediately east of the mill. Geological and metallurgical evidence indicates that the Liese and East Deep zones were once a single body of gold-rich mineralization split by a wedge of gold-barren igneous rock (diorite) on which the mill now sits. The discovery of East Deep – a deposit that is geologically and geochemically similar to the ore- body on which Pogo was founded – has been a boon for the Interior Alaska mine. SMM Pogo began developing East Deep in 2012 and has mined more than 731,000 tons out of the deposit since 2013. It was not until this year, however, that infrastructure was established to the point that the company considered development complete. North Zone, a group of higher grade vertical veins to the north of the mill, likely served as a conduit to deliver gold mineralized fluids to the flat-lying Liese and East Deep zones. This year SMM Pogo had nine drills focused on the discovery and expansion of targets surrounding the mill, including the northern end of the East Deep deposit, North Zone and Pogo South, a southerly expansion of the Liese zone. Kennedy said this work included some 219,500 feet of exploration drilling – 174,000 feet from surface and 45,500 feet underground – and about 103,000 feet of definition drilling. Ultimately, the goal is to replenish the gold mined out of reserves at Pogo this year. see POGO DISTRICT page 10 SUMITOMO METAL MINING POGO “Sumitomo Metal Mining is seeking a partner for the Stone Boy project.” –Yuki Beppu, project geologist, Sumitomo Metal Mining America SHANE LASLEY Peak Gold LLC has discovered new zones of skarn gold-copper mineralization at the Tetlin project near Tok, Alaska. Sumitomo Metal Mining Pogo continues to find new deposits of high-grade gold surrounding its Pogo Mine.
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www.MiningNewsNorth.com The weekly mining newspaper for Alaska and Canada's North Week of November 22, 2015
l E X P L O R A T I O N
NEWS NUGGETSCompiled by Shane Lasley
Novagold VP Williams joinsKaminak board of directors
JV drills new zones of high-gradegold near Peak deposit at Tetlin
Contango ORE Inc. Nov. 16 posted results from 19 of 32holes drilled during the second phase of 2015 exploration atthe Tetlin project near Tok, Alaska. This exploration wascarried out by Peak Gold, a limited liability joint venturecompany formed to further the exploration and developmentof the Tetlin project. Royal Gold Inc. has the option to earnup to a 40 percent interest economic interest in Peak Goldby investing up to US$30 million prior to October 2018.“We are very pleased with the operations team at Peak Gold,managed by our joint venture partner Royal Alaska LLC, awholly owned subsidiary of Royal Gold Inc.,” saidContango ORE CEO Brad Juneau. “This new phase IIdrilling, in conjunction with our 2015 phase I drilling pro-gram, has confirmed the presence of a gold mineralization inpreviously untested zones up to 3.5 kilometers (2.2 miles)away from the Peak deposit.” The 6,897 meters of drillingcompleted during the phase 2 program focused on two targetareas – Peak West and North Peak-Blue Moon. Highlightsfrom drilling at North Peak include: 1.92 meters of 70.9grams per metric ton gold, 39 g/t silver and 0.015 percentcopper in hole TET15165; 16.8 meters of 17.94 g/t gold, 4.2g/t silver and 0.027 percent copper in hole TET15171; and23.04 meters of 19.86 g/t gold, 4.2 g/t silver and 0.056 per-cent copper. Highlights from Peak West include: 5.54 metersof 22.08 g/t gold, 7.6 g/t silver and 0.11 percent copper, 6.25meters of 6.45 g/t gold, 3.3 g/t silver and 0.126 percent cop-per, and 11.28 meters of 3.43 g/t gold, 2.8 g/t silver and0.177 percent copper in hole TET15174; and 68.47 metersof 5.46 g/t gold, 0.4 g/t silver and 0.059 percent copper inTET15176. “Both of these new areas will require moredrilling and analysis to define potential resource size,” saidJuneau. In total, 14,059 meters of drilling was completed in61 holes during the second phase of 2015 exploration atTetlin. “The total amount spent during the 2015 explorationeffort in phases 1 and 2 is approximately US$7 million,which is under budget as a result of more efficient opera-tions combined with more drilling from common surfacepads,” the Contango ORE CEO added. “Peak Gold is work-ing to develop an exploration model to help determine newtargets for future drilling, and the relationship between theseparate zones of mineralization discovered to date. Thejoint venture will combine new drilling and assay resultswith information gained from surface samples and propri-etary ground and airborne magnetics and conductivity datato develop these future targets.”
Promising copper-gold porphyrytapped at Shorty Creek project
Freegold Ventures Ltd. Nov. 16 reported that the resultsof the fall 2015 drill program on its Shorty Creek project
see NEWS NUGGETS page 12
Pogo District heats upMajors, juniors and prospectors position for exploring gold-rich area
By SHANE LASLEYMining News
A s gold exploration cools globally, the searchfor the precious metal is once again heating
up in the larger Pogo Mine region of InteriorAlaska.
One of the reasons this region continues to be ahotbed of gold exploration is Sumitomo MetalMining Pogo LLC’s success in finding andexpanding new deposits of high-grade gold on itsPogo Mine property, which anchors theGoodpaster Mining District.
Another dozen promising prospects foundbeyond the borders of the Pogo Mine claims add tothe intrigue of an area that stretches for some 70miles along the Alaska Highway southeast ofFairbanks.
Over the past year, global miners, junior explor-ers and prospectors have expanded knowndeposits, discovered new ones, consolidated landpositions and assembled geological data – all in thesearch for another Pogo or Fort Knox mine in thisgold-rich region of the Interior.
Replenishing PogoSumitomo Metal Mining Pogo – a partnership
between Sumitomo Metal Mining Company (85percent) and Sumitomo Corp. (15 percent) –invested roughly US$15 million on exploration inthe immediate Pogo Mine area during 2015, mak-ing this the largest exploration program in Alaskathis year.
Pogo General Manager Chris Kennedy toldthose attending the Alaska Miners Association FallConvention in Anchorage that the exploration tar-geted nine areas “under our headframe” at Pogo.
While the high-grade underground gold minedoes not sport a headframe in the classical sense ofthe term, the mill facilities do happen to be posi-tioned on an island at the vertex of three high-grade gold deposits – Liese, North Zone and East
Deep.Pogo began operation in 2006 by mining Liese,
a zone immediately west of the mill.In 2010, SMM Pogo discovered East Deep, a
twin to Liese that lies immediately east of the mill.Geological and metallurgical evidence indicates
that the Liese and East Deep zones were once asingle body of gold-rich mineralization split by awedge of gold-barren igneous rock (diorite) onwhich the mill now sits.
The discovery of East Deep – a deposit that isgeologically and geochemically similar to the ore-body on which Pogo was founded – has been aboon for the Interior Alaska mine.
SMM Pogo began developing East Deep in2012 and has mined more than 731,000 tons out ofthe deposit since 2013. It was not until this year,however, that infrastructure was established to thepoint that the company considered developmentcomplete.
North Zone, a group of higher grade verticalveins to the north of the mill, likely served as aconduit to deliver gold mineralized fluids to theflat-lying Liese and East Deep zones.
This year SMM Pogo had nine drills focused onthe discovery and expansion of targets surroundingthe mill, including the northern end of the EastDeep deposit, North Zone and Pogo South, asoutherly expansion of the Liese zone.
Kennedy said this work included some 219,500feet of exploration drilling – 174,000 feet fromsurface and 45,500 feet underground – and about103,000 feet of definition drilling.
Ultimately, the goal is to replenish the goldmined out of reserves at Pogo this year.
see POGO DISTRICT page 10
SUM
ITO
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GO
“Sumitomo Metal Mining is seeking apartner for the Stone Boy project.”
–Yuki Beppu, project geologist, SumitomoMetal Mining America
SHA
NE
LASL
EY
Peak Gold LLC has discovered new zones of skarn gold-coppermineralization at the Tetlin project near Tok, Alaska.
Sumitomo Metal Mining Pogo continues to find new deposits of high-grade gold surrounding its Pogo Mine.
Though not all of the results are in,Kennedy said it looks “very, very good”that this year’s drilling will not onlyreplenish about 340,000 ounces of goldexpected to be mined at Pogo this year,but also will add to the mine’s life.
On the BrinkStone Boy Inc., the exploration com-
pany credited with discovering the Liesedeposit at Pogo, continues to seek newdeposits in the larger Pogo area.
Owned by subsidiaries of SumitomoMetal Mining (95 percent) and SumitomoCorp. (5 percent), Stone Boy has beenexploring Interior Alaska since 1991 andcurrently holds four properties in the gen-eral area of the Pogo Mine – Ink, MonteCristo, Skippy and Shaw.
Over the past three years, the Inkclaims, located about 15 miles (24 kilo-meters) southeast of Pogo, has been theJapanese firm’s primary focus, includinga US$1.3 million program completed in2014. This work has been completed inpartnership with Japan Oil, Gas andMetals National Corporation (JOGMEC),which holds an 18.23 percent interest inthe property.
Yuki Beppu, the geologist in charge ofSumitomo Metal Mining America’sexploration in Alaska, told the AMA con-vention crowd that exploration at Ink hasfocused on the Brink Core Zone, a bulk-tonnage gold deposit more akin to FortKnox than the high-grade Pogo minelocated about 21 miles (34 kilometers) tothe northwest.
In the Brink deposit, Stone Boy hasdrilled 29 drill holes (8,903 meters) todate. This work has traced the core zoneover an area measuring at least 500meters wide, 1,700 meters long and to adepth of 500 meters. The best hole,DH13-30, cut 514.4 meters averaging0.427 g/t gold.
Stone Boy’s other promising goldproperty, Monte Cristo, is located some40 miles (64 kilometers) west of Pogo.
The Naosi zone, a gold-silver-antimo-ny prospect within the larger MonteCristo property, had previously been oneof the primary exploration targets of theStone Boy project. In 2011, the partnersreleased results from drilling Naosi,including intercepts of 7.8 g/t gold, 19.7
g/t silver and 0.1 percent antimony over7.92 meters; and 22.83 meters grading 4.2g/t gold, 48 g/t silver and 0.17 percentantimony.
From 2008 through 2012, Stone Boydrilled 84 holes (16,670 meters) at Naosi,outlining the deposit for about 1,500meters along strike and to a depth ofabout 500 meters.
Beppu offered an invitation to compa-nies interested in joining the search foranother gold mine in the Pogo region.
“Sumitomo Metal Mining is seeking apartner for the Stone Boy project,” saidBeppu, who is based in Vancouver B. C.
Pogo district knowledgeHe said the Naosi deposit shares a lot
of similarities to LMS, a project thatMillrock Resources Inc. was given theoption to acquire under a larger agree-ment to acquire Corvus Gold Inc.’s assetsin the Pogo area.
As part of the agreement, Millrockacquired West Pogo gold property, whichcovers the projection of a favorable struc-ture that passes through the Pogo Mineabout two miles to the east.
The biggest part of the deal, however,
is an extensive geological database fromnearly two decades of exploration thatAnglogold-Ashanti and InternationalTower Hill Mines carried out in theGoodpaster Mining District where thePogo gold mine is located.
The acquisition of the proprietary data-base and Pogo West property is part of acollaborative agreement with a yet-to-be-named major mining company to seek outhigh-grade gold deposits in Alaska.
Millrock Chief Exploration OfficerPhilip St. George said, “With the acquisi-tion of the Anglogold-Ashanti database,our company will have the most compre-hensive store of geological knowledge onthis district. We will have a distinct com-petitive advantage for generating newgrassroots exploration targets for high-grade gold deposits with our strategicpartner.”
If Millrock and its un-named partnerdecide to further consolidate their holdingalong the structural trend that hosts Pogo,they may be interested in AuroraResources’ Money Rock property, agroup of claims just north of Pogo West.
Stone Boy’s Shaw project also is partof the block of state mining claims found
along the structural trend that hosts thePogo Mine, located just a couple of milesto the southeast.
As part of its deal with Corvus,Millrock also had the first right of refusalto acquire LMS, a gold prospect about 25miles southwest of the Pogo Mine.
Back in the gameAfter spending the last year quietly
consolidating a 26,639-acre land positionimmediately north of Stone Boy’s MonteCristo property, Great American MineralsExploration Inc. is gearing up for a US$2million drill program on its Uncle Samproperty in 2016.
“Game,” as the company is commonlyknown, is no stranger to the Pogo region.In fact, the privately held Nevada corpo-ration first discovered gold on the UncleSam property in 1998 and has held onto aposition in the region ever since.
Over the past 17 years, KennecottExploration, Stone Boy, Millrock andCrescent Resources Corp. have con-firmed an intrusive-related gold districtthat covers more than 30 square miles.
“It is a fantastic district,” Pat Smith,an independent director of GreatAmerican Minerals, told the AMA gather-ing.
Smith headed Kennecott’s Alaskaexploration programs for more than twodecades. During this tenure, Kennecottcut deals with Game and others in theregion to explore Uncle Sam for threeyears.
One area of particular interest is LoneTree where Kennecott Exploration hit“some fantastic intercepts of low grade,”according to Smith.
One hole drilled by Kennecott, USC-011, cut 19.2 meters averaging 2.03 g/tgold at the Lone Tree target.
While intrigued by some long inter-cepts of low-grade gold in the Lone Treearea, Smith said the best grades have beencut in the Wolf Zone, located in the south-ern portion of the property just north ofStone Boy’s Monte Cristo.
Millrock and Crescent drilled fourholes at Wolf in 2011, all of which cutdecent gold mineralization.
WLF-001 cut 2.74 meters averaging3.63 g/t gold, WLF-002 cut 11.46 metersaveraging 4.86 g/t gold, WLf-003 cut3.05 meters averaging 3.27 g/t gold andWLF-004 cut 2.13 meters averaging 1.81g/t gold.
10NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF NOVEMBER 22, 2015
continued from page 9
POGO DISTRICT
Liese Zone(L1/L2/L3)
North Zone(NZ3/NZ4/X VN)
East Deep(E1)
S. Pogo(L2_ext/SP1a)
4021
2015 Pogo Resource Veins
SUM
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see POGO DISTRICT page 11
11NORTH OF 60 MINING
PETROLEUM NEWS • WEEK OF NOVEMBER 22, 2015
Shane Lasley PUBLISHER & NEWS EDITOR
Rose Ragsdale CONTRIBUTING EDITOR
Mary Mack CEO & GENERAL MANAGER
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ADDRESS • P.O. Box 231647Anchorage, AK 99523-1647
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NORTH OF 60 MINING NEWS is a weekly supplement of Petroleum News, a weekly newspaper.To subscribe to North of 60 Mining News,
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North of 60 Mining News is a weekly supplement of the weekly newspaper, Petroleum News.
NORTHERN NEIGHBORSCompiled by Shane Lasley
see NORTHERN NEIGHBORS page 12
Contact North of 60 Mining News:Publisher: Shane Lasley • e-mail: [email protected]
Phone: 907.229.6289 • Fax: 907.522.9583
Kaminak adds Novagold VP Williams to boardKaminak Gold Corp. Nov. 16 reported the appointment of Richard
Williams to its board of directors. Williams, who has more than 30 years ofglobal mining experience, currently serves as Novagold Resources Inc.’s vice-president, engineering and development, where he is responsible for allaspects related to the engineering and technical advancement of the DonlinGold project in Alaska and Galore Creek project inBritish Columbia. Prior to joining Novagold, Williamsheld numerous positions with Barrick Gold Corp. and wasmost recently the project director of Barrick’s PuebloViejo project in the Dominican Republic. Williams has abachelor’s degree in chemical engineering from TrinityUniversity, San Antonio, Texas. He is also the co-inventorof three U. S. patents associated with Pressure Oxidationtechnology. Electrum Strategic Opportunities Fund L.P.nominated Williams to the Kaminak board pursuant to theterms of a C$22.5 million that makes Electrum a roughly10.3 percent stakeholder in Kaminak, assuming the exer-cise of all warrants held by the company. Kaminak President and CEO EiraThomas said, “Richard brings 30-plus years of mining experience to ourboard, having played key technical and corporate executive roles with Barrickon numerous, large scale mining projects at various stages of developmentaround the world. Moreover, in his current capacity as vice-president ofNovagold, he brings a wealth of northern project development experience thatis relevant to Kaminak as we work to complete the feasibility study and transi-tion towards development at our flagship, Coffee Gold project in Yukon,Canada.”
Alloycorp optimizes molybdenum mine planAlloycorp Mining Inc. Nov. 13 released the results from a Front End
Engineering Design study completed on the Avanti Kitsault molybdenumproject in western British Columbia. Based on the results of the study, anoptimized mine plan has been developed to target the highest grade reservesand softest ore zones first. The average molybdenum grade over the first fiveyears 0.092 percent and over life-of-mine is 0.078 percent. The mine is nowexpected to average roughly 12,994 metric tons of molybdenum and 1.2 mil-lion ounces of silver annually during the first five years. After by-productcredits for the silver, site cash costs are expected to be US$5.04 per pound ofmolybdenum over the first five years of production and US$5.24 per poundover life-of-mine. Total cash operating costs are expected to be US$6.91 perpound of molybdenum over the first five years of production and US$7.32per pound over life-of-mine. Pre-production capital costs estimates haveincreased by C$395 million, to C$1.2 billion in the FEED study. The mineoutlined in this study is expected to result in an after-tax net percent value (8percent discount) of C$346 million; internal rate of return of 12.7 percent;and a payback period of 5.3 years. Peter Mah, president, Avanti Kitsault MineLtd., and CEO, Alloycorp said, “The FEED has allowed us to firm up projectscope and estimates to a point where we can recommend an engineering, pro-
Looking to jump back into the goldexploration game, Great AmericanMinerals has re-acquired the propertiesthat make up its historical holdings atUncle Sam.
“Just in the last year, Game has beenable to consolidate the entire claim groupwe had back in the Kennecott days,”Smith explained.
Game has a budget of US$2 million tofund a phase 1 drill program planned for2016.
Richardson District Northern Empire Resources Corp. – a
prospect generator with early-stage goldproperties in Alaska and Nunavut and asilver property in Mexico – has consoli-dated a large 60,000-acre (24,282hectares) gold property in the RichardsonDistrict, just a couple miles southwest ofthe Uncle Sam and Monte Cristo proper-ties.
Like the other properties in the region,Richardson is prospective for intrusive-related gold deposits similar to the high-grade gold found at Pogo, located 45miles to the east, and at Fort Knox,roughly 85 miles to the northwest.
An estimated 118,640 oz. of placergold and 2,357 oz. of lode gold have beenmined in the Richardson District since1905.
“Richardson is one of the few goldexploration properties in Alaska which isroad accessible, bound on two sides byhigh transmission power lines, located inan mining friendly jurisdiction, and hostto multiple, large gold footprints,”Northern Empire Chairman John Robinssummarized.
Northern Empire has divided the enor-mous land package it has accumulated inthe area into two projects – Hilltop andRichardson.
Early in 2015, Northern Empireoptioned Hilltop, a portion of the largerRichardson property, to Sonoro MetalsCorp.
The partners said the trenching, andsoil and rock sampling carried out atHilltop has confirmed and expanded thefootprint of known gold mineralization atthis 31,720-acre property.
Highlights from the program includechannel samples returning up to 19.45 g/tgold and rock grab samples grading ashigh as 26.55 g/t gold.
Sonoro President and CEO KennethMacLeod said, “The exploration resultsfrom both phase 1 and 2 at Hilltop haveexceeded our expectations and supportour belief that the Richardson GoldDistrict will emerge as one of the mostexciting areas for gold exploration inAlaska as we advance this project.”
Northern Empire, meanwhile, com-pleted an independent exploration pro-gram on the Richardson property thatstretches southeast from Hilltop.
The work program at Richardson pri-marily focused on sampling in and to thenorth of Democrat Pit, the site of a70,000-short-ton bulk sampling programin 1988 that is reported to have produced2,000 oz. of gold.
Highlights from 23 rock samples col-lected in and around Democrat Pitinclude: 71.2 g/t gold and 48.6 g/t silver;4.6 g/t gold and 111 g/t silver; and 2 g/tgold and 233 g/t silver.
Robbins said the high-grade silver andgold collected from outcrop has refinedNorthern Empire’s exploration plans forthe 2016 season. l
continued from page 10
POGO DISTRICT
RICHARD WILLIAMS
demonstrate the potential for a signifi-cant copper-gold porphyry deposit at thisInterior Alaska property. The best inter-cept of the program was 91.4 meters of0.71 percent copper-equivalent. A totalof four holes were drilled during the2015 program, which was hampered bychallenging weather, including the sec-ond-largest for September snowfall in102 years. Despite the challenges,Freegold said the program demonstratesthe potential for Shorty Creek to host asignificant copper-gold porphyry depositand is looking forward to continuedrilling in 2016. The first three holeswere drilled at Hill 1835, an area inwhich Asarco tested with shallowdrilling in 1989 and 1990. The presenceof quartz feldspar porphyry was noted in
all three holes – SC-15-01, SC 15-02,and SC 15-03. Hole SC 15-04 was aban-doned twice due to difficult ground con-ditions. Hole 1 cut 35.1 meters of 0.2percent copper-equivalent from a depthof 3.96 meters, and 152.4 meters of 0.27copper-equivalent from a depth of 91.74meters. Anomalous copper-gold-silvermineralization was cut in hole 2.Freegold said the results suggest holesone and two were drilled in the pyritichalo of the deposit. SC15-03 was col-lared within a distinct magnetic high atHill 1835 which covers roughly a 750-by 1,000-meter area, and is located some250 meters to the southwest of any pre-vious drilling. This hole cut 292.6 metersof 0.13 grams per metric ton gold, 3.23g/t silver and 0.26 percent copper, or0.38 percent copper-equivalent, includ-ing 91.4 meters of 0.14 g/t gold, 7.02 g/tsilver and 0.55 percent copper, or 0.71
percent copper-equivalent. Freegold saidthe results appear to indicate that thehighest grade copper mineralization isassociated with the magnetic anomaly.The core of the magnetic high at Hill1835 is situated roughly 250 meterssouthwest of hole 3. Intense alterationconsisting of silica flooding, sericite,biotite, and quartz veining with sulfidesis present within SC 15-03. Of particularsignificance for the size potential of theShorty Creek Project is the similar mag-netic and geochemical signature found atHill 1710, which lies 2,500 meters north-west of Hill 1835. The geochemicalanomaly there is 2,000 meters long andremains open along strike. It directlycorrelates with the magnetic anomaly,which is in excess of 6,000 meters inlength and up to 1,500 meters in width.
Ucore’s new REE plantslated for early 2016
Ucore Rare Metals Inc. Nov. 16 pro-vided an update on the design and con-struction of the SuperLig 1 rare earthseparation pilot plant. “This is a signifi-cant pilot plant, with a total capital outlayin excess of US$3 million and a footprintanticipated to occupy the approximatespace of a few tractor trailers,” explainedUcore President and CEO Jim McKenzie.The initial purpose of the plant is to con-firm the effectiveness of molecularrecognition technology in the separationof rare earth elements at bulk scale. TheMRT process is a proprietary rare earthsand specialty metals separation methodthat utilizes specialty materials that bindselectively with ions based on multipleparameters such as size, chemistry, andgeometry. “SuperLig®1 will be the firstof its kind, as an MRT plant dedicated tothe separation and refining of REE’s andassociated valuable metals. The facilitywill be fully modular in design, with the
ability to install larger or smallercolumns and customized SuperLig® sub-strate as required, depending on the skewand the quantity of the feedstock beingtested,” McKenzie explained. The initialtest run of the pilot plant will utilize abulk mixed concentrate derived fromUcore’s Bokan-Dotson Ridge deposit inSoutheast Alaska. This work will takeplace in two stages. The initial phase willtarget the separation of the critical heavyrare earths – dysprosium, terbium andeuropium. After that, testing will aim toestablish the plant’s ability to separate anadditional eight REEs. Ucore said otherselect rare earths for which there is a lim-ited market will be separated on a pilotscale at a future date if deemed appropri-ate. It is expected that the plant will oper-ate at a flow rate in the range of 160liters of pregnant leach solution per day,capable of generating multiple kilogramsof rare earth carbonates per week basedon Bokan feedstock. As part of the mod-ular design, the SuperLig pilot plant willbe reconfigurable and upgradeable, withthe capability of accepting a wide rangeof feedstock from alternate sources, andof expanding the initial flow rate.Following the initial testing, the plantwill be utilized to confirm the effective-ness of SuperLig technology in separat-ing REE’s from a variety of feedstocksources in North America and beyond.Ucore COO Ken Collison said the plantwill be able to process material frommultiple types of REE mineralization aswell as tailings. “Our overriding objec-tive is to offer a flexible platform for thehandling of mixed concentrates frommultiple points of origin, running succes-sive batch processes quickly and effi-ciently, and reconfiguring for new inputproduct with minimal turnaround,” heexplained. “What’s more, the plant willbe capable of refining non-REE metals asrequired, including PGMs (platinumgroup metals), scandium and numerousother specialty metals.” SuperLig 1 isbeing designed and built at IBCAdvanced Technologies Inc.’s researchand development facilities in Utah.Ucore said long-lead time chemical com-pounds have been ordered and the manu-facture of SuperLig resins for use in theplant has begun. Initial testing of thecompleted pilot plant is anticipated totake place in early 2016. l
12NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF NOVEMBER 22, 2015
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NEWS NUGGETS
curement and construction strategy bestsuited for the company going forward,and supported by two project partnersready to execute on this strategy.” Withthe FEED study complete, Alloycorpsaid it will continue to engage a syndi-cate of lenders in the pursuit of financ-ing commitments. However, given therecent molybdenum price decline, thereis no certainty credit commitments willbe received at this time. In the mean-time, the company will evaluate alterna-tives to further de-risk the project forma technical perspective. Alloycorp alsohas entered into an agreement to amendthe terms of its existing US$50 millionbridge-loan facility, with goal ofincreasing the funds available under theloan by US$4.5 million. The interestrate on the bridge loan will remainunchanged at 12.5 percent per annum.Interest will be payable in cash at matu-rity. The default interest rate remainsunchanged and is payable at the appli-cable interest rate plus 5 percent perannum, compounded quarterly in arrearstogether with all other due but unpaidinterest. l
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