Engineering & Mining Journal

MAY 2019

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REGIONAL NEWS - EXPLORATION ROUNDUP 18 E&MJ • MAY 2019 Australian Companies Create Joint-venture Project in Alaska Australian companies White Rock Miner- als and Sandfire Resources have signed an earn-in and joint-venture option agree- ment for Sandfire to participate in White Rock's multimetal Red Mountain project in central Alaska. The potential of the project is illustrated by 2018 field season results, which included drill-hole inter- cepts of more than 17% zinc, 6% lead, 1,000 grams (g)/metric ton (mt) silver, 6 g/mt gold, and 1.5% copper, as well as discovery of new massive sulphide miner- alization at the Hunter prospect. Sandfire can earn up to 51% of White Rock's 100% interest in the Red Mountain project by spending A$20 million on explo- ration over four years, with a minimum of A$6 million to be spent in 2019. Follow- ing completion of the exploration spend- ing requirement, Sandfire can elect to in- crease its interest in the project to 70% by sole-funding a further A$10 million and delivering a prefeasibility study with an ore reserve within a further two years. White Rock can then elect to contrib- ute its percentage share of expenditure to retain its 30% interest. The Red Mountain project includes a 475-km 2 land package covering numer- ous historic volcanic massive sulphide (VMS) prospects with little modern ex- ploration, providing the companies with a large strategic footprint over a potential new VMS district. "White Rock welcomes Sandfire as a joint-venture partner that shares White Rock's vision for the exploration and de- velopment of our exciting Red Mountain project," White Rock Managing Direc- tor and CEO Matt Gill said. "Securing a high-quality partner with world-leading expertise in the exploration and develop- ment of base metals projects is a strong endorsement to the quality and potential of our globally significant, high-grade VMS Red Mountain project." ( Exploration Briefs American Pacific Mining has entered into an earn-in agreement with OceanaGold with respect to American Pacific's Tus- carora gold project 50 kilometers (km) northwest of Elko, Nevada. Oceana can earn up to 51% of the project by invest- ing $4 million over the next four years. Oceana will have 60 days thereafter to exercise an option to earn an additional 24% by investing a further $6 million over the following four years. Oceana will make an initial $50,000 cash payment to American Pacific and, upon earning a 51% interest in the prop- erty, a second payment of $200,000 in cash or shares at Oceana's option. Oceana will be the operator. Upon Oceana completing its earn-in obliga- tions, a joint-venture management com- mittee will be formed. American Pacific CEO Warwick Smith commented, "We are very pleased to partner with OceanaGold at Tuscarora. The company's management and board of directors extend a warm welcome to the OceanaGold team as both sides work to add value to the project and define fur- ther drill targets across the large and his- toric land package. "This announcement adds excitement to the project and the company as we enter a new exploration season. OceanaGold is the perfect partner in our eyes, especially with the success they have had at Waihi in New Zealand, a similar high-grade epith- ermal system. For a company of our size, this transaction is a big milestone." ( Antipa Minerals reported in late March that Rio Tinto has confirmed its commit- ment to the Citadel project farm-in and joint venture in Western Australia's Pater- son province, with an indicative budget of $3.4 million allocated to the 2019 calen- dar-year exploration program. Subject to any changes that may be made consequent upon results, field conditions, and ongoing review, the 2019 program will include drill testing of new aerial electromagnetic conduc- tivity anomalies, Calibre resource exten- sional targets, geochemical targets, and several aeromagnetic targets. Additional IP surveys and testing of resultant and existing IP chargeability targets will also be undertaken. Antipa is resuming operatorship of the Citadel joint venture, including execution of the 2019 exploration program. Antipa has had past success at Citadel with the discovery of the Calibre and Corker de- posits and in defining the project's cur- rent combined resources of 1.64 million ounces (oz) of gold and 127,000 metric tons (mt) of copper. Under the terms of the joint venture, Rio Tinto can fund up to $60 million of exploration expenditures to earn up to a 75% interest in the Citadel project, which is located approximately 5 kilometers (km) east of Rio Tinto's recently announced Winu copper-gold-silver discovery. ( Iamgold has reported assay results from 14 diamond drill holes totaling 7,452 meters (m) completed as part of its 2017-2018 exploration drilling program on the Côté Gold joint-venture project 125 kilometers (km) southwest of Timmins, Ontario. The project is a 70/30 joint venture between Iamgold and Sumitomo Metal Mining Co. The drilling led to the discovery of in- trusive-hosted mineralization referred to as the Gosselin zone. In addition, the com- pany reported assay results from a drill core re-logging and sampling program of historical drill holes located along a poten- tial south-west extension of the discovery, referred to as the Young-Shannon zone. Iamgold Senior Vice President of Ex- ploration Craig MacDougall said, "The Gosselin zone is a new grassroots discov- ery, the result of our ongoing commitment to sustained exploration and an excellent group effort by the Côté exploration team. With the completion of a positive feasi- bility study for the Côté Gold deposit in 2018 demonstrating a solid development opportunity with a long mine life and low production costs, this exploration success continues to add to our track record of resource expansion and further enhances the long-term value of this ex- citing development project." (

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