Some financings but mostly bad news

Chinese government is looking for (ie. to buy) cheap, reliable uranium suppliers…   Fission’s PLS, Cameco’s Millenium and Rio’s Roughrider all look attractive. [Mining.com]

Elmer Fudd

 


Grief ahead in the diamond market as retail numbers slump while De Beers manages to stabilize rough prices by lowering volume. [Edahngolan.com]


Osisko buys into TerraX again…   taking an additional royalty for $1M to bring them to  3% and committing to buying some of TerraX’s financing. [Petroleum News of Alaska]

 

TRX


 

Another one bites the dust…   Jordan Capital merges with Mackie Research as Vancouver’s investment industry continues to “consolidate”.  [Stockhouse]

Gary Cooper


We can’t even give them away…   Miners want to sell mines but find no takers.   [Republic of Mining]

Nigeria

 


North American Tungsten Q1 results.   Not good news:  loss widens, grade and prices down, generator blew up.  [Junior Mining Network]

Cantung Mine

Cantung Mine


Wellgreen plans to spend $4.2M this summer drilling at… Wellgreen.  [Junior Mining Network]


North Arrow closes $4.4M bought deal.  [Junior Mining Network]


The cull continues: TSX-V delists 45 out of 2302 listing junior companies (2%)  in April & May.   Since last May they’ve delisted ~145 (6%)   [TMX.com]

Die off

Clubs, coal and lost data

Let’s form a club!   De Beers, Rio Tinto and Dominion Diamond pal up with Alrosa and others to create The Diamond Producers Association.  [Mining Weekly].  It’s been set up to “actively engage with industry and non-industry organizations to promote the interests of the diamond sector.”

First Board Meeting

First Board Meeting


Credit squeeze is reshaping the diamond business …. but rough diamond prices will still go up.  [New York Times]


Goldman Sachs says commodities suck and will for a while …. except zinc.  [Bloomberg]

GS


The TSX-V is at a crucial juncture:  compelling technical analysis on why the TSX-V will break-out above the 700 level. [CEO.ca]    To what?… 750?

TSX-V Short

But … in context…

TSX-V Long


Time to throw in the towel:  Teck to shut in production at all of its Canadian coal mines for 3 weeks this summer.  This will “will allow it to align production and inventory with changing coal market conditions.”  [Mining.com]

Surrender ~ Waving White Flag


Northquest trying to raise $4.4M  …  likely all coming from JV partner Nord Gold.  Looks like we might see some drilling at Pistol Bay near Rankin Inlet.  [Junior Mining Network]


Adamera sells its diamond data for Amaruk to Churchill Diamonds.    Looks like Chris Taylor has bigger ambitions that just poking around Kahuna.  [Junior Mining Network]


Look what we found in the closet!  Aston Bay finds some old (1999) gravity data from Storm (near Resolute Bay).  The ground survey improves the prospectivity of the kilometre-scale target with a coincident gravity high over the southern third of the SE Anomaly. This is highly suggestive of a large target that is drill-ready.  [Junior Mining Network]

Antique roadshow

We’re gonna be #1!

Yukon’s Premier: “Our goal is to make Yukon the #1 mining location!”    [Mining.com]

Oh really

Kennady Diamonds intersects 194 m of kimberlite at Kelvin..   looks like an in-fill hole.  [Newswire]

The dollar is on a bit of a tear this week so gold and base metals prices are down…. [Bloomberg]

DXY

 

Red Star finishes 1500 m drill program at Unga; puts out pump piece….    Hoping to “go supernova”.  [CEO.ca]

No NIMBY’s here:   Sweden relocates town of Kiruna to keep mining iron ore.    Moves everything – lock stock and barrel.   [Republic of Mining]

Kiruna

Avalon Rare Metals raises $4M.    Half in flow-through; no word how much will be spent in the NWT at Thor Lake. [Junior Mining News]

Canarc closes second tranche to explore Polaris (Taku River / BC-AK).  … raising $500K. [Junior Mining News]

 

Diamonds and the dog days of May

Northern Miner on success at Kennady Diamonds Kelvin pipe..

KDI

 

De Beers strategy to goose profits is encountering buyer resistance.  [Bloomberg]

I said drink

Contango Ore plans a US$ 5M program at their Tetlin gold project.  [Petroleum News of Alaska]

The EPA goes into damage control mode over its efforts to derail Pebble.  [Republic of Mining]

BS

Taku Gold is trying to raise $200K for TAG (near Engineer Mine). [Junior Mining Network]

Rumours around town that Selwyn Chihong has shut everything down at Howards Pass in a feud with the RRKD.

Time to check in on the Venture Exchange…. [Stockwatch]

So flat you could play pool on it.

So flat you could play pool on it

Space, gold and iron

Grab your axes:  US Congress passes bill on space mining!   Stand by for the next development…. [Mining.com]

Space mining

Peak gold looms: Q4 2015 is the definitive date.  after that, declining production, higher prices, etc. [Mineweb]

Happy Days

The twists and turns of Baffinland and their iron mine:  The QIA opposes any expansion of the shipping season for Mary River  meanwhile the Nunavut Planning Commission tells everyone it would love to help but it needs more money from Ottawa.  [Nunatsiaq Online]

The Federal Minister tells the NIRB to get the lead out:  Get moving on approving Agnico Eagle’s Meadowbank Mine Vault expansion.  [Nunatsiaq Online]

As expected:  Sabina’s Back River feasibility study is out and the promotional machine revs up.   Bruce McLeod (Prez / CEO) says a leaner, higher grade operation is the secret to success.  They’ll have pump this a bit if they want to do an equity raise: SBB is not exactly a high flyer of late. [Northern Miner / Mineweb]

SBB

Big turnout of junior mining companies expected at the Canadian Investor Conference Vancouver 2015 this weekend!  22 down from 68 last year.

Brent Cook in Nevada…

Brent Cook gave an interesting presentation to (mostly) geologists attending the Geological Society of Nevada’s 2015 Symposium.  This is a great event, held only every 5 years.   Attendance was down from 2010, likely because of cut-backs and layoffs.

The talk was entitled “SHOULD YOU QUIT YOUR JOB AT HOME DEPOT”  

The highlights:

  • Peak gold will happen this year.
  • Gold mining companies blew it from 2000 to 2012:
    • Big appreciation in gold price
    • Brokers bet on gold companies for leverage but….
    • Producers blew it achieving a dinky return on investment
    • Consequently: Investors (especially hedge funds) are leery about investing in gold producing companies – much less producers.
  • Major companies are damaging their deposits and their futures, trying to look profitable by:
    • High-grading
    • Cutting back (or all) exploration

Mine cheaper?

  • (Gold) exploration getting more difficult (you’ve heard this from him before):
    • Have to look deeper to find gold deposits
    • More and more low grade deposits being found; these are not economical.
    • Grade is king but most deposits being found are low grade.
    • Cost to find ounces has gone through the roof: It now costs $150M to find >100K ounces deposits .
    • It is taking longer and longer to permit deposits (will contribute to a gold gap).
    • Gold demand has grown steadily with population and wealth; no change in sight.

Discovery costs

  • Underfunded juniors are toast:
    • Investors have to identify one of the very few viable targets and be on the lookout for a “fatal flaw” arising in the story.
    • When asked for his advice to anyone running a junior with $500K in the bank his answer was: “You’re screwed”.
  • The market is bumping on bottom and now might be a good time to look at getting back in. Have to give him credit; he called last year well, suggesting it was a good time to forget the market and go on a cruise.

Brent Cook#4

 

 

Coffee, REE and platinum

Metal prices and other stuff

Uranium rally’s fizzling. Uranium bulls are getting gored. [IKN]

unhappy bull

Kennady Diamonds intersects 73 m of kimberlite at Faraday… maybe another Kelvin in sight!  [Junior Mining Network]   Here’s Will Purcell at Stockwatch on the results:

Patrick Evans’s Kennady Diamonds Inc. (KDI), up 29 cents to $4.84 on 61,000 shares, has some of its best drill hits yet at Faraday 2, a kimberlite enigma adjacent to its promising Kelvin pipe, 250 kilometres northeast of Yellowknife. As a result Kennady has boosted its kimberlite target to 12 million to 15 million tonnes, up from the 10 million to 13 million that it previously estimated. Two years ago Mr. Evans had hoped to prove the Kelvin and Faraday kimberlite complex held five million tonnes. Several years before that, De Beers Canada decided the project was not worth the effort. It turned it over to its Gahcho Kue co-venturer, Mr. Evans’s Mountain Province Diamonds Inc. (MPV: $4.97). (Mr. Evans used the play to launch Kennady Diamonds in 2012.) If Kennady hits the high end of its target and if subsequent tests support earlier grade estimates topping two carats per tonne at Kelvin and Faraday, the company could have upwards of 35 million carats. At just $118 (U.S.) per carat, the modelled average at nearby Gahcho Kue, those potential diamonds would be worth over $4-billion (U.S.).

 TerraX trying to raise $3.4M.  for their drilling programs at Yellowknife. [Junior Mining Network]

TSX-V at a tipping point!  A New Age rehash of Tony Simon’s theory about zombie juniors and how the exchange is going to crash or something….    [InvestorIntel.com]

Star Trek

Copper, zinc, lead,  all falling this week!  But wait – here is all you need to know:

DXY

The US dollar is up.

Something funny is up in the tin market.  Both prices and LME inventories are falling.  Unless somebody’s opened up a new tin warehouse this shouldn’t last long.

Both going down?

Both going down?

Guru watch:  Both The Resource Maven and The Daily Gold are getting bullish on gold.  But don’t forget dear reader that the Cambridge House May Show is just next week…..  [Mining.com / Cambridge House]

Coincidence

After the South32 spinoff and  a concerted effort to sell its dogs, BHP is left with $2.8B of coal & oil assets it can’t sell….  [Bloomberg]

Toxic waste

Oreninc Index of mineral exploration funding activity climbs to 5 week high …

Oreinc

A new way to discover gold and juniors bite the dust.

DeBeers buys one third of Synova… a Swiss manufacturer of automated diamond cutting equipment that could drastically reduce losses in diamond cutting operations… which would allow them to sell rough at higher prices.  [DeBeers]

Synova

Constantine doubles the resource at Palmer and plans a summer program.  to 8.1Mt @ 1.41% Cu, 5.25% Zn, 31 g/t Ag and 0.32 g/t Au. [Petroleum News of Alaska]

Happy news for mining promoters… Securities commissions are going to allow crowd-funding!  [IKN]

Ready for new investors...

Ready for new investors…

There’s a sure-fire way to discover a big gold deposit… look for complexity!  [Piercepoints.com]

Peregrine Diamonds completes 1200 m bulk tonnage drill program (558t) at Chidliakand tries to block BHP from selling their underlying royalty at CH-7 without offering first right of refusal.    [Peregrine Diamonds / Stockwatch]

Copper North trying to raise $1.7M.  [Junior Mining Network]

Cleaning out the stables… since the beginning of May:

Shovelling

News from Nunavut and outer space

Good start to Agnico Eagle’s Amaruq drill program north of Meadowbank… filled in 300 m gap in the deposit under Whale Lake [Northern Miner].

More feed for Meadowbank

More feed for Meadowbank

De Beers May sale results… cuts back on quantity but prices still fall 3%. [Rough & Polished]

Nunavut Impact Review Board blocks Areva’s Kiggaviq… has to tell the HTA exactly when they’ll start. [Resource Clips]

Baker Lake says "Nauk" to Kiggaviq

Baker Lake says “Nauk” to Kiggaviq

Okay, you can stop worrying about this:  NASA scientist says space mining is decades away.  And the CBC chimes in:  Space mining needs to be regulated.  [Mineweb & CBC]

Space mining

Canadian Zinc to drill 5,000 m at Akie.  [Junior Mining Network]

Pacific Cascade options 60% of Turner Lake in Nunavut from Bama Gold. [Junior Mining Network]

UCore increases resources by 20% at Bokan  and Will Purcell has something not bad to say about it for once:

Mr. McKenzie has made considerable strides in financing his mine but the arrangements are contingent on the company producing a workable feasibility study. That work is in progress. The juiced-up resource estimate will certainly help, but rare earth prices are much lower now than three years ago. Fortunately, Ucore’s rare earth oxides are loaded with the more desirable, and pricier, heavies.  [Junior Mining Network & Stockwatch]

Kennady Diamonds intersects more kimberlite at Faraday.   Looks like two lobes shaping up; not as simple as at Kelvin…[Junior Mining Network].

Oreninc Index is steady for the week…. [Oreninc.com]

Oreinc

but TSX-V financings drop again in April…

TSX-V financing