Engineering & Mining Journal

MAR 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

Issue link:

Contents of this Issue


Page 17 of 67

REGIONAL NEWS - EXPLORATION ROUNDUP 16 E&MJ • MARCH 2019 Roxgold Acquiring Newcrest's Côte d'Ivoire Exploration Roxgold has entered into an agreement with Newcrest West Africa Holdings to acquire Newcrest's portfolio of 11 explo- ration permits in Côte d'Ivoire for total upfront consideration of $20 million. A further payment of $10 million will be due upon first gold production from any of the permits. The agreement includes the advanced Séguéla gold project, which hosts the Antenna deposit and a number of satellite opportunities. The Antenna deposit has an inferred resource of 5.8 million metric tons (mt), grading 2.3 grams (g) per mt gold for 430,000 ounces (oz) of contained gold. The deposit consists of near-surface, potentially open-pittable mineralization and is located near existing infrastruc- ture, including grid power, transport and water resources. Roxgold will further assess multiple priority exploration targets within 15 km of the Antenna deposit that have the po- tential to increase the resource base and enhance the economics of the Séguéla project by adding low-cost, near-sur- face ounces. In addition to Antenna, early-stage drilling by Newcrest has pro- duced results ranging from trace to 14 m at 58.1 g/mt gold from surface. In total, the permits acquired by Rox- gold encompass 3,298 km 2 across pro- spective Birimian greenstone belts, with significant scope to build on existing data and exploration work completed to date. Approximately $21 million has been in- vested in exploration and 117,000 m of drilling on the permits. Newcrest has been operating in Côte d'Ivoire since 2010 and discovered the Antenna deposit in 2016. Roxgold in- tends to keep key infrastructure and per- sonnel in place to ensure a smooth transi- tion of activities at the site. "This acquisition represents a mean- ingful addition to our growth pipeline, providing immediate additional resource upside and a large prospective land pack- age, all in an accretive transaction for Roxgold shareholders," Roxgold Presi - dent and CEO John Dorward said. "Rarely does such a large and carefully assembled land package become available from one of the world's leading gold producers, and Séguéla is expected to materially increase Roxgold's overall resource inventory, par- ticularly after we bring the deposit up to National Instrument 43-101 standards later this year." Exploration Briefs Trilogy Metals has added $2 million to its previously announced $16.2 million 2019 programs and budgets, increas- ing the exploration budget at its Upper Kobuk mineral projects in the Ambler mining district of northwest Alaska to $18.2 million. The additional $2 million has been approved for regional or dis- trict exploration focused on identifying and testing new drill targets within the Ambler volcanogenic massive sulphide (VMS) belt. "There are dozens of known VMS pros- pects along the 75-mile-long Ambler belt, including many with historic resources," Trilogy President and CEO Rick Van Nieuwenhuyse said. "It is exciting to be drilling new exploration targets again. We are confident that we can find additional high-grade polymetallic resources along this prolific mineral belt." ( Osisko Metals continues to receive posi- tive assay results from drilling at its Pine Point Mining Camp zinc-lead project near the south shore of Great Slave Lake in the Northwest Territories, Canada. In late January, the company reported one inter- sect in the East Mill Zone grading 8.07% zinc and 6.80% lead over 12.74 m within modeled pit boundaries, while another in- tersected 10.90% zinc and 4.28% lead over 6 m at the west edge of the modeled pit boundary. All intersections are within flat-lying tabular deposits, and all are lo- cated above 30 m depths. Osisko Metals President and CEO Jeff Hussey said, "It is worth pointing out that the high-grade, large-tonnage, near-surface mineralization at Pine Point is unique among its peer group, as nearly 90% of zinc mine production globally is sourced from underground mines, under- scoring the rarity of open-pit zinc assets like Pine Point. "Furthermore, with low-cost hydro- electric power available on site and a rail head located within 60 km, Osisko Metals is well-positioned to rapidly ad- vance Pine Point. While we announced our maiden resource for the project in December 2018, we are still receiving assay results from the 2018 definition drilling campaign, totaling over 40,000 m of additional drilling completed fol- lowing the cut-off date for the mineral resource estimate." ( OceanaGold continues to intersect high- grade gold mineralization during resource definition drilling along the East Graben vein at its WKP prospect in New Zea- land. Oceana began exploring the WKP prospect in August 2017 and to date has drilled 15,747 m in 29 holes. Since September 2018, 5,361 m have been drilled, focusing on resource definition drilling of the East Graben vein, one of three major low-sulphidation epithermal gold-silver veins identified to date. The drilling completed since the Sep- tember continued to intersect high-grade mineralization, increasing Oceana's confi- dence in the continuity of mineralization within the East Graben vein and associ- ated hanging-wall and foot-wall veins. Best true-width intercepts included 10.1 m grading 19.2 g/mt gold on the East Graben vein and 10 m grading 43.4 g/mt gold on a foot-wall vein. Oceana Gold President and CEO Mick Wilkes said, "For 2019, we expect to in- vest between $8 million and $10 million to drill the WKP target. Our current fo- cus continues to be the East Graben vein, which has not yet been fully delineated but currently extends 1,000 m along strike, with an average width of 5 m and an average grade of approximately 15 g/ mt. Two other high-grade veins have been identified in the foot wall and hanging wall of the main East Graben vein." (

Articles in this issue

Links on this page

Archives of this issue

view archives of Engineering & Mining Journal - MAR 2019