Engineering & Mining Journal

FEB 2019

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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REGIONAL NEWS - U.S. & CANADA 8 E&MJ • FEBRUARY 2019 Ascot Resources to Acquire IDM Mining Ascot Resources Ltd. announced it in- tends to acquire all the outstanding shares of IDM Mining Ltd. The transaction will consolidate Ascot's Premier Gold project and IDM's Red Mountain project to create the leading high-grade gold development and exploration company in northwestern British Columbia's Golden Triangle near the historic mining town of Stewart. This area has hosted several prominent, profit- able, and high-grade gold mines. Each IDM shareholder will be entitled to receive 0.0675 of a common share of Ascot for each share of IDM held. The consider- ation values IDM at C$0.086 per share, representing a premium of 54% to IDM shareholders. Upon completion of the trans- action, IDM shareholders will hold 16.7% of Ascot shares on an outstanding basis. "At this time in the gold sector, scale is important and together with the Red Mountain project, the larger company will hopefully become a prominent gold devel- oper in terms of both grade and tonnage," said Derek White, president and CEO of Ascot. "In addition, the company will have experienced people with deep local knowl- edge and backgrounds in exploration, un- derground mine development, finance and mining operations, which will ultimately maximize value for shareholders." "In addition to long-term value for both shareholders of Ascot and IDM, this combi- nation provides a critical mass and option- ality for development of multiple high-grade gold deposits which will result in significant stakeholder benefits for citizens of the Nis- ga'a Nation, for my hometown of Stewart and for my friends in the border town of Hyder," said Robert McLeod, president and CEO of IDM. "The combined company will control two geological trends hosting sig- nificant exploration ground in the Golden Triangle, which remains highly prospective for additional gold-silver discoveries." Ascot's deposits and IDM's Red Moun- tain project are located within separate mineralized trends and have separate NI 43-101 mineral resource estimates. The proposed pro forma resource base would include 5.55 million metric tons (mt) of measured and indicated resources, aver- aging 7.68 grams per mt (g/mt) of gold, totaling 1.37 million oz of gold, with ad- ditional inferred resources of 6.35 million mt averaging 7.12 g/mt of gold, totaling 1.45 million oz of gold. Closing of the transaction is subject to the receipt of applicable regulatory approvals and other customary conditions and it is anticipated to be completed by the end of March 2019. Taseko Starting Up Florence Copper Project in Arizona Taseko Mines has announced that, fol- lowing receipt of all necessary state and federal operating permits, well-field op- erations have begun and injection and recovery systems have been fully ramped up at its Florence in-situ copper recovery project in Pinal county Arizona, about midway between Phoenix and Tucson. Following an initial leaching period, leach solutions were flowing at expected levels as of early January, and copper had been detected in solutions recovered from process sample wells. At full capacity, the Florence facility will produce an average of 85 million pounds per year (lb/y) of LME Grade A copper cath- ode over an operating life of about 21 years. The Florence deposit consists of a large porphyry copper sulphide system overlain by a thick and intensely fractured oxidized layer. The oxidized zone is saturated with ground water that is separated from the upper drinking-, agricultural-, and indus- trial-use aquifer by a thick layer of dense, low-permeability clay and separated from the deep groundwater by the relatively im- pervious sulphide system. This unusual, perhaps even unique, geological and hy- drological combination makes the oxidized zone ideal for in-situ copper recovery. eCobalt Increases Size of Idaho Cobalt Project eCobalt Solutions has reported plans to increase the targeted mine production rate at its Idaho Cobalt Project from 800 metric tons per day (mt/d) to 1,200 mt/d. The company anticipates that the new mine plan, with improved economies of scale, will create a more resilient project that can withstand the volatility recently experienced in the cobalt market. The Idaho Cobalt Project is based on 243 contiguous unpatented lode mining claims in east-central Idaho, approxi- mately 41.5 kilometers (km) west of the town of Salmon. The project will produce a marketable cobalt concentrate. eCobalt is working with Micon Interna- tional to finalize a feasibility study for the new mine plan. The increase in the tar- geted production rate is not expected to significantly delay achieving full produc- tion and will not require any adjustments to the planned surface disturbance of the mine and mill; therefore, no changes are expected for project permitting. Power Ore Acquiring Opemiska Copper Complex Power Ore Inc. has entered into an agree- ment to acquire a 100% interest in the Opemiska Copper Mine Complex in the Chibougamau region of Quebec from Explorateurs-Innovateurs de Quebec (Ex- In), a privately owned company. The com- plex encompasses 11 mining claims and includes the past-producing Springer and Perry underground mines. The Opemiska complex is located ad- jacent to the town of Chapais within the Abitibi Greenstone belt and within the boundaries of the province of Quebec's Plan Nord, which promotes and funds in- frastructure and development of natural resource projects. The transaction consolidates properties in the Golden Triangle.

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