SEG 45 Final_qx4 - Society of Economic Geologists
SEG 45 Final_qx4 - Society of Economic Geologists
SEG 45 Final_qx4 - Society of Economic Geologists
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
OCTOBER 2005 • No 63 <strong>SEG</strong> NEWSLETTER 23<br />
acquisition <strong>of</strong> all the remaining common<br />
shares <strong>of</strong> Southern Platinum<br />
Corp. and will be named Lonmin<br />
Investments Canada Inc, which will be<br />
a wholly owned subsidiary <strong>of</strong> Lonmin<br />
plc. Lonmin has made significant<br />
progress with mechanization and<br />
automation projects. These will allow<br />
them to mine at a cost below 120 USD<br />
per tonne. The ultra-low pr<strong>of</strong>ile (ULP)<br />
mining method will be used at the<br />
Karee mine, which will ramp up to<br />
37,000 tpm <strong>of</strong> Merensky ore production<br />
by end 2005 and ultimately to 70,000<br />
tpm by mid-2006. In the six months to<br />
March 2005, Lonmin produced 666.303<br />
oz <strong>of</strong> PGM at a cost <strong>of</strong> around<br />
US$400/oz.<br />
ZAMBIA<br />
Albidon has idenitifed a strong electrical<br />
conductor that appears to be contiguous<br />
with nickel sulfide mineralization<br />
in three areas around the Munali<br />
nickel project. The strike length is 900<br />
m and the estimated depth to the top <strong>of</strong><br />
the conductor is 300 to 400 m. Drilling<br />
<strong>of</strong> the target is scheduled to start soon.<br />
Equinox Minerals has mandated a<br />
group <strong>of</strong> lenders to provide a total <strong>of</strong><br />
US$305M in senior and subordinated<br />
project finance facilities for the development<br />
and construction <strong>of</strong> the<br />
Lumwana copper project located in the<br />
northwestern province <strong>of</strong> Zambia. In<br />
addition to the Lumwana senior project<br />
financing, Equinox has mandated<br />
European Investment Bank, which c<strong>of</strong>inanced<br />
the Lumwana bankable feasibility<br />
study to provide further project<br />
financing. Equinox will also be providing<br />
additional equity for the development<br />
and construction <strong>of</strong> the Lumwana<br />
project.<br />
ALASKA<br />
Regional Correspondent:<br />
Curtis J. Freeman (<strong>SEG</strong> 1996)<br />
Avalon Development Corp.<br />
P.O. Box 80268<br />
Fairbanks, AK 99708<br />
Tel: 907-<strong>45</strong>7-5159<br />
Fax 907-<strong>45</strong>5-8069<br />
Email: avalon@alaska.net<br />
Website: www.avalonalaska.com<br />
WESTERN ALASKA<br />
Teck Cominco’s Red Dog mine saw<br />
continued strong operating pr<strong>of</strong>its in<br />
the second quarter <strong>of</strong> 2005 as a result <strong>of</strong><br />
strong Zn and Pb prices which averaged<br />
$0.55 and $0.<strong>45</strong> per pound, respectively.<br />
Operating pr<strong>of</strong>it was US$9M versus<br />
an operating pr<strong>of</strong>it <strong>of</strong> $10M in the<br />
same period in 2004. For the quarter,<br />
the mine generated 134.4 tonnes (t) Zn<br />
and 23.7 t Pb in concentrate vs. 138.8<br />
and 25.6 t Zn and Pb, respectively, in<br />
the 2nd quarter <strong>of</strong> 2004.<br />
NovaGold Resources and partner<br />
Placer Dome announced initial drilling<br />
results from its Donlin Creek project.<br />
The 2005 program included a 27,000-m<br />
(88,000 ft) drill program with 84 infill,<br />
geotechnical, and condemnation core<br />
holes and 25 condemnation-geotechnical<br />
reverse circulation holes. Detailed<br />
engineering, environmental, and design<br />
studies continued. Highlights included<br />
hole DC05-1013, which intersected 5<br />
mineralized intervals totaling 160.6 m<br />
grading 6.24 gpt Au, DC05-1061, which<br />
intersected 12 mineralized intervals<br />
totaling 226.9 m grading 4.50 gpt Au<br />
and DC05-1062 which intersected 6<br />
mineralized intervals totaling 134.3 m<br />
grading 5.33 gpt Au. Highlighting the<br />
open-ended nature <strong>of</strong> the mineralization<br />
at the ACMA portion <strong>of</strong> the deposit<br />
were holes DC05-1061, which bottomed<br />
in 54.1 m grading 5.12 gpt Au and hole<br />
DC05-1062, which bottomed in 77.3 m<br />
grading 5.24 gpt Au.<br />
St Andrew Goldfields Ltd. announced<br />
additional results from its Nixon Fork<br />
Au project near McGrath. Underground<br />
drilling results from part <strong>of</strong> the 4,973 m<br />
<strong>of</strong> underground drilling completed to<br />
date included intervals ranging from<br />
0.9 m grading 9.6 gpt Au to 1.3 m grading<br />
78 gpt Au. Drilling has confirmed<br />
that the J5A target now extends from<br />
the 380- to the 200-m level <strong>of</strong> the mine,<br />
while the 2204 target extends from the<br />
390- to the 240-m level. Updated<br />
resources for the project were also<br />
released and include total measured<br />
resources <strong>of</strong> 23,400 t grading 36.8 gpt<br />
Au (27,700 oz), indicated resources <strong>of</strong><br />
68,000 t grading 33.2 gpt Au (72,600<br />
oz) and inferred resources <strong>of</strong> 35,000 t<br />
grading 27.7 gpt Au (31,200 oz). The<br />
company indicated that permitting and<br />
engineering work continue with anticipated<br />
start-up <strong>of</strong> operation in late 2005<br />
or early 2006.<br />
Alaska newcomer Metallica<br />
Resources Inc. announced that it had<br />
acquired an option from Full Metal<br />
Minerals to earn a 65% interest in the<br />
latter’s Aleutian Islands and Alaska<br />
Peninsula projects by expending $4.5M<br />
in exploration and making cash<br />
payments totaling $250,000 over five<br />
years. Metallica can earn additional<br />
interest by taking properties through<br />
feasibility. The 2005 program already<br />
in progress consists <strong>of</strong> reconnaissance<br />
geological, geochemical and geophysical<br />
surveys on the Pyramid, Zachary<br />
Bay, Kawisgag, San Diego Bay, Bee<br />
Creek, Weasel Mountain and Mallard<br />
Duck Bay porphyry prospects, as well as<br />
on a large epithermal vein system at<br />
the Apollo-Sitka, Shumagin and<br />
Centennial deposits. Welcome to<br />
Alaska, Metallica Resources!<br />
Alaska newcomer Fury Explorations<br />
Ltd. has acquired an option to earn a<br />
<strong>45</strong>% interest in Full Metal Minerals’<br />
Ganes Creek project near Ophir by<br />
incurring exploration expenditures<br />
totaling $3.5M over four years and<br />
making cash and share payments to<br />
Full Metal, totaling $200,000 and<br />
800,000 shares. Additional interest can<br />
be earned by taking the project through<br />
feasibility to production. The target<br />
being explored is the source for the cobble-sized<br />
quartz with sulfide boxwork<br />
and coarse Au which are common in<br />
the district. Welcome to Alaska, Fury<br />
Explorations!<br />
Alaska newcomer Tonogold<br />
Resources, Inc. initial results on the<br />
Nyac gold project in southwestern<br />
Alaska acquired under lease from<br />
Calista Corp. To date over 1,400 samples<br />
have been collected from the<br />
Wallace, Bonanza Ridge, and Bonanza<br />
Creek prospects and four adjacent or<br />
newly recognized areas. Of the 518 surface<br />
geochemical samples reported to<br />
date for the Bonanza Ridge prospect, 58<br />
soil grid samples ranged from 0.105 to<br />
2.86 ppm Au. Seven rock chip samples<br />
taken during grid sampling ranged<br />
from 0.121 to 15.1 ppm Au. One rock<br />
chip sample from the Wallace prospect<br />
reported 7.2 ppm Au. Additional results<br />
are pending. Welcome to Alaska,<br />
Tonogold!<br />
EASTERN INTERIOR<br />
Teck Cominco announced that construction<br />
<strong>of</strong> the Pogo gold mine in<br />
Alaska continues to progress on schedule<br />
except for underground development<br />
work. A construction work force <strong>of</strong><br />
over 400 is currently working on the<br />
site. On June 30 surface construction<br />
was 75% complete with underground<br />
preproduction work 30% complete.<br />
Underground productivity has been<br />
slowed by poor<br />
ground conditions in to page 24 ...<br />
EXPLORATION REVIEWS