Friday, August 10, 2012

More good news from Sabina

After the last release of mediocre results SBB has drilled some whopper holes, of special note, 51.93 g/t Au over 16.1 m. Generally speaking, I find that if one multiplies the length of the mineralization by the tonnage, and it exceeds 100 something good is going on.

The release also details some preliminary exploration work on the Boulder and George properties. The potential for significant gold discoveries is still present on the back river project and in the future we could see an increase in the ~7 million oz Au on the property.

August 09, 2012
Sabina Announces High Grade Drill Results from Umwelt Deposit at the Back River Gold Project, Nunavut

Hole 12GSE217 returns 51.93 g/t Au over 16.10 m - expands high-grade G2 Zone;
Hole 12GSE214 returns 18.81 g/t Au over 21.90 m
New discoveries at Boulder and George Claim blocks

Vancouver, BC - Sabina Gold & Silver Corp (SBB.T) is pleased to announce new assay results from holes drilled at the Umwelt deposit as part of the 2012 exploration program at its 100% owned Back River Gold Project in Nunavut, Canada.

Work at Back River in 2012 is heavily focussed on infill, geotechnical and extension drilling at the Llama, Umwelt and George deposits as well as testing targets proximal to the existing deposits on the Goose property in support of the upcoming Back River Pre-Feasibility Study.

An additional goal of the 2012 exploration program is to test high priority shallow regional targets for new deposits on the George and Boulder claim blocks that could be of significant importance to the proposed Back River operations.

At Umwelt, Hole 12GSE217 returned 51.93 g/t Au over 16.10 m effectively extending the high grade core of the G2 Zone 100 m down plunge. This intercept is at a vertical depth of 700 m and targeted the gap between the current resources and hole 12GSE173 (9.50 g/t Au over 7.15 m) reported in June 2012. The G2 Zone (good grade, good width), first identified in 2011, forms a part of the growing underground resource at Umwelt.

As part of the Umwelt geotechnical program, hole 12GSE214 was drilled oblique to section and intersected 18.81 g/t over 21.90 m in the west limb at the bottom of the pit shell. Further analysis of this intersection will be completed in order to incorporate any appropriate impact on existing resources.

"Results from Umwelt continue to demonstrate the potential of this deposit," said Rob Pease, President & CEO. "We have now traced the mineralization over 300 metres down plunge of the known resources, and world-class results like those from hole 12GSE217 continue to increase our confidence in the high-grade and continuous nature of the deposit. We are very excited to learn how these results and the balance of the 2012 program will factor in to our anticipated resource update and 2013 pre-feasibility study for our wholly-owned Back River project."

Boulder Property Discovery

Exploration drilling has been completed on the Boulder Property located just 15 km north of the Goose Property and along the proposed winter road between George and Goose. This property has seen only limited exploration work in the past and is known to be underlain by highly folded iron formation similar to that of the Goose property. Historical prospecting has highlighted a number of areas with encouraging results and this work coupled with the company's highly successful exploration tool box has defined a significant number of high quality targets. The first hole of the program 12BRP001 testing one of these targets returned 4.05 g/t Au over 11.00 m including 5.78 g/t Au over 6.0 m in an extensive thickness of altered and locally sulphidized iron formation. The intersection is 120 metres vertically below a 1993 historic hole, 93P003, that returned 3.91 g/t Au over 12.15 metres. Further drilling has been completed to understand the controls and extent of this mineralization and assay results are pending

George Property Fold Forest Discovery

Exploration drilling on the George property continues to evaluate shallow, near surface targets that could positively impact future operations on this property. Significant new results have been received from the Fold Forest area, where holes 12GRL046 and 12GRL047 have encountered broad zones of mineralized oxide iron formation in a thickened antiform structure that can be traced for at least a 1.0 km strike length. Hole 12GRL046 intersected 5.92 g/t Au over 5.00 m including 11.04 g/t Au over 1.0 m within a broader 32.75 m wide interval of highly anomalous gold enriched iron formation. Hole 12GRL047, 300 m north of 12GRL046 intersected a 66.5 m wide zone of anomalously gold enriched iron formation including 7.37 g/t Au over 2.0 m and 5.79 g/t Au over 1.0 m. The iron formations encountered at Fold Forest are significantly thicker than the narrow units that are common at George and coupled with the sulphide mineralization, stratigraphic orientation, strength of alteration and density of veining offer good potential for a large thick deposit to be found in the system.

"These new discoveries continue to demonstrate the tremendous upside potential of the Back River Project to host additional gold deposits" said Rob Pease, President & CEO. "Our first hole at Boulder and the substantial thicknesses of iron formation that underlie this property suggests that there is much potential for a new deposit to be found." "Similarly, our work at George continues to discover interesting mineralization that could enhance the future operation planned there. These targets will be followed up next year".

The 2012 exploration program is expected to continue until the end of September with a combination of extension, resource conversion and geotechnical drilling on the Goose and George properties. The resource conversion and geotechnical drilling are intended to provide the technical information necessary to complete a Pre-Feasibility Study as part of Sabina's follow-up to its positive Preliminary Economic Assessment announced earlier this year.

Changes to Management Team

Sabina is pleased to announce that Mr. Angus Campbell will be joining the company as Vice President of Exploration. Angus will be replacing Mr. Peter Manojlovic who has left the Company.

Angus has a strong and diverse background in global mineral exploration. For the past several years he was Exploration Manager for Chile with BHP Billiton. He brings to Sabina a broad range of experience in green field and brown field exploration initiatives and projects, plus a deep understanding of diverse cultural and team environments and large project management. He also brings experience in managing health and safety, commercial risk and due diligence issues. Angus was a member of the Spence deposit discovery team who were honoured with the PDAC's Bill Denis Award in 1998.

Rob Pease commented: "We would like to thank Peter for his contribution to Sabina over the years and wish him the best of luck in his future endeavours. We look forward to welcoming Angus whose experience will help guide the Back River project through the next phase of advanced exploration and development, and whose project evaluation skillset will be vital as Sabina charts its long-term strategy."

Quality Assurance

True widths for the intercepts reported in this news release have not yet been determined.

The Qualified Person under NI 43-101 is Kaesy Gladwin, P. Geo, Senior Geologist for Sabina Gold & Silver Corp., who has approved this release as it pertains to the Umwelt results and Stanley Clemmer, P. Geo, Project Manager for Sabina Gold & Silver Corp, who has approved this release as it pertains to the George and Boulder results

Diamond drill core was sent to TSL Laboratories in Saskatoon, Sask. Quality control is monitored on a continual basis and utilizes a system of standards, blanks and duplicates to ensure analytical accuracy. The protocols and procedures used in 2012 are the same as those used in earlier campaigns by Sabina Gold & Silver Corp. and have been deemed appropriate in the Company's 43-101 compliant resource reports.

Thursday, August 9, 2012

Newstrike Capital V.NES

Newstrike Capital is a Vancouver based Gold and Silver exploration company working in Mexico. They have been on my watch list for a while as I feel that they are tremendously undervalued at this stage.

Newstrike is currently working on their "Ana Paula" project located in the historic Guerro Gold Belt (GGB) in Mexico. They acquired this property in july 2010 from GoldCorp. The GGB currently holds 15+ million  NI-43-101 compliant oz Au. This includes Goldcorps Los Filos mine with 11.5 million oz Au to date and Torex Golds' Limon property which currently sits at 5 million ounces and growing, both of which lie in the immediate vicinity of Newstrikes two large properties Aurea Norte (which includes the Ana Paula project) and Aurea Sur.

Aurea Norte

Most of the high grade mineralization has been found on this 59,600 hectare property, and more specifically within the boundaries of the Ana Paula project. A decent amount of drilling has been conducted on the Ana Paula project and the results have been quite impressive.

A few highlights from 2011, 2012..

-April 20 2011, 230.95 m of 7.51 g/t Au
-June 16 2011, 112.9 m 2.51 g/t Au
-June 27 2011, 190.15 m of 3.52 g/t  Au and 116 m of 4.71 g/t Au
-August 3 2011, 120 m of 4.6 g/t Au
-September 20 2011, 119.6 m of 3.76 g/t Au and 88.82 m of 2.58 g/t Au
-November 23 2011, 135.5 m 5.57 g/t Au and 75.3 m of 4.4 Au 

-March 14 2012, 175 m of 3.07 g/t Au
-April 19 2012, 81.45 m of 2.19 g/t Au
-June 18 2012, 102 m of 1.22 g/t Au
-August 1 2012, 103.11 m of 5.06 g/t Au

I really like the results that have been coming out of the Ana Paula project. Its important to note that they have a $15 million exploration budget for 2012, an NI 43-101 report, environmental permitting, and a total of 41,500 m of drilling completed. NES believes the results so far indicates high potential for significant bulk tonnage.


Wednesday, August 8, 2012

Volcanic Metals V.VOL

A few days ago I wrote a short post about the large amount of insider buying that has been going on with Volcanic Metals. Well, it appears as if Comstock Metals (V.CSL) is going to acquire controlling interest in VOLs flagship Walhalla property.

"Comstock Metals to Acquire Controlling Interest in the Walhalla Property, White Gold District, Yukon and Adds Rob McLeod to the Advisory Board
Comstock Metals Ltd. CSL
8/7/2012 12:13:16 PM

Comstock Metals to Acquire Controlling Interest in the Walhalla Property, White Gold District, Yukon and Adds Rob McLeod to the Advisory Board

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 7, 2012) - Comstock Metals Ltd. (TSX VENTURE:CSL) ("Comstock" or the "Company") is pleased to announce that it has entered into a letter of intent (the "LOI") with Seafield Explorations Ltd. ("Seafield") to acquire Seafield's 75% interest in a joint venture with Volcanic Minerals Ltd. for the exploration and development of the Walhalla Property located in the White Gold district in Yukon (described in further detail below).
Walhalla Property Highlights
  • Ridge-and-Spur and grid soil sampling has returned gold assay from below detection limit to 6.26 g/t gold (Au), 3.41 g/t Au, and 2.16 g/t Au.
  • Copper values in soil ranges from below detection limit to 266 ppm Cu
  • Silver values in soil range from detection limit to 7.9 g/t Silver
  • A large breccia system in subcropping bedrock extending approximately 2 km long and 200m wide is in close (?) proximity to soil anomalies
  • The breccia and associated silicification is thought to be related to the Teslin fault structures
The Walhalla Property, (the "property") consists of 1,988 quartz claims covering approximately 41,800 hectares located 120 km southeast of Dawson City in the Yukon. The property is located in the White Gold District immediately east of and contiguous with Pacific Ridge's Mariposa Project. Previous work on the property identified strong anomalous gold zones in soils as well as anomalous pathfinder elements such as arsenic and barium. About 1014 ridge-and-spur samples were taken in the western, north-eastern, and south-eastern parts of the property, and significant gold-in-soil anomalies were identified in all areas. Of particular interest was a 3.41 g/t gold-in-soil anomaly in the ridge-and-spur sampling, which was followed up by 366 grid soil samples that returned a value of 6.26 g/t Au - one of the top ten historically in the entire White Gold District. Copper-in-soils and silver-in-soils are also of interest based on the results received to date. Please refer to the figures posted on the Company's website under (
Prospecting identified area of float that appears to outline a large breccia system extending approximately 2 km long and 200 m wide. Some of the high gold-in-soils and coincident copper and silver anomalies are found near the breccia. This area of the property is located along the Teslin Fault, a major regional fault system which splays out on the property and is mid Cretaceous in age, which is the age of most Yukon gold mineralization. Other parts of this large property package are underlain by intrusive and metamorphic rocks similar to those found in the White Gold district to the west, and also those which host the Minto copper-gold mine to the south. A helicopter-borne high-resolution aeromagnetic survey was also flown over the property last year, and data from this survey will be used in conjunction with assay results to identify targets for follow-up work such as grid soil-sampling, trenching, and drilling.
The Walhalla project is considered prospective for discovery of several types of mineralisation, with gold the primary commodity of interest. The White Gold and similar deposits (Kaminak's Coffee gold deposit), as well as Comstock's own discovery at the QV Property are located to the southwest and northwest respectively and is the primary target. The property may be prospective for Minto style IOCG type copper-gold mineralisation (located to the southeast), as are VMS type deposits like Touleary, and Comstock intends to evaluate these possibilities also.
Comstock is planning to continue with ridge-and-spur, grid soil sampling and mechanical trenching programs to identify drill targets.
For detailed maps of the property and the locations, please visit the website at:
The technical information in this Release has been reviewed by Gordon Davidson, P. Geol., a Qualified Person as defined by National Instrument 43-101.
Terms of the LOI:
Under the terms of the LOI, the purchase consideration payable by the Company for the Walhalla Property will be (i) $300,000 cash costs incurred by vendor(s) to acquire the claims, (ii) issue 500,000 common shares of the Company, and (iii) issue an additional 500,000 common shares of the Company upon the determination of an NI 43-101-compliant 500,000 ounce gold resource on the Walhalla Property. Closing is subject to certain conditions, including the execution of a definitive agreement, the execution of a joint venture agreement with Volcanic Minerals Ltd. on terms satisfactory to Comstock, the receipt of all regulatory approvals and approval of the TSX Venture Exchange, and other customary conditions.
The acquisition is considered a related party transaction under TSX-V Policy 5.9 because Mr. Rasool Mohammad, an officer and director of the Company, is also the director of Seafield Explorations Ltd. The Company is relying on the exemption from the requirement to obtain a formal valuation and minority shareholder approval on the basis that the fair market value of the acquisition does not exceed 25% of Comstock's market capitalization. Following closing of the acquisition, Seafield and Mr. Mohammad [and their associates] will collectively hold approximately 8% of the outstanding common shares of Comstock (assuming the additional 500,000 contingent common shares are issued), or approximately 8.1% on a partially diluted basis."

I guess CSL feels pretty good about their QV (3.74 g/t Au over 75 meters) property and decided to pick up the property right next door with high grade soil sampling...a top 10 historically in the white gold district. We'll see if the LOI is approved by the exchange, I suspect it will be. The terms of the acquisition are a little strange with Seafields Exploration having the same CEO as Comstock, allowing them to go through with it without obtaining minority shareholder approval. From the press release.

"The acquisition is considered a related party transaction under TSX-V Policy 5.9 because Mr. Rasool Mohammad, an officer and director of the Company, is also the director of Seafield Explorations Ltd. The Company is relying on the exemption from the requirement to obtain a formal valuation and minority shareholder approval on the basis that the fair market value of the acquisition does not exceed 25% of Comstock's market capitalization."

The relationship between the three companies as it relates to the acquisition, interest, and ownership of the Walhalla property is a bit confusing if you haven't followed VOL. From a 2011 press release.

"Volcanic to acquire remaining 75% of Walhalla property 2011-10-18 18:22 ET News Release
Volcanic Metals Corp. has entered into an option agreement with Seafield Explorations Ltd. to acquire the remaining 75-per-cent interest (for a total 100-percent interest) in the Walhalla property,located in the emerging White Gold district
of the Yukon."

"In order to earn the 75-per-cent interest in the property, Volcanic
Pay $150,000 on confirmation of title;
Issue 500,000 shares on exchange approval;
Pay $150,000 on the earlier of six months after exchange approval and the completion of a non-flow-through financing of not less than $500,000;
Pay $50,000 and issue 500,000 shares on each of the first through third anniversaries of exchange approval;
Pay $100,000 and issue one million shares on the fourth anniversary of exchange approval;
Incur $1.5-million in exploration expenditures on or before the fifth anniversary of exchange approval"

As a shareholder in VOL I am curious to see how this plays out. It will depend upon the priority that CSL gives the exploring the Walhalla property, as far as VOL shareholders are concerned. After a failed rollback and a large drop in sp, it was doubtful that VOL would have been able to raise funding anytime soon to carry out a drill program. CSL has the means but one can bet most of their exploration work in the white gold district will be focused on their QV property. That being said, all VOL needs in the heating up Yukon is a few decent holes. I'm sure a future press release will specify the terms of the agreement further once the acquisition is approved. 

"The company is aggressively trenching, mapping and sampling on the discovery zone to get ready for a diamond drill program"

Initially, when I was looking at VOL it interested me because It was a large land package in a highly gold rich area which had fallen out of favor after a poor 2011 year for Yukon juniors. As well, the warrant price is over 5 times as high as the current share price and it has a small $1 million market cap and a tightly held share structure. It may be worth putting on your watch list, waiting for any news that drilling will be done on the Walhalla property.

PS: some minor exploration work has been conducted by VOL in the past. Encouraging results.

Tuesday, August 7, 2012

Sphere Resources

Sphere resources put out a press release today. The headline, which I'm sure pleased all holders of SPH, reads "Sphere Resources Subsidiary Spartan Gold Ltd Commences Its 2012 Exploration Program at Poker Flats and Ziggurat Properties Nevada, U.S.A."


Sphere Resources is an Australian/Canadian exploration company focused on gold discoveries in the Red Lake District of Ontario and on the Carlin Trend in Nevada. The website has a detailed account of their properties in Nevada, but I'm sure most investors are looking at their poker flats property, which is right next to Gold Standard Ventures rail road property where a large gold zone is being explored.

Although the photos on the website are, unfortunately, quite poor it can be seen that Gold Standard Ventures Railroad property directly borders the poker flats. I'm surprised that, by this fact alone, the SP is still sitting at a measly 0.03. Considering that prior to GSVs $2 pp it was trading at nearly 3 dollars with some of the most hype around it from a junior explorer drilling in the states. Its hard to believe there hasn't been a bit more interest in SPH.

Their website says they have a $1,200,000 exploration budget for 2012 and a $2,400,000 exploration budget for 2013, which I assume is being provided for by their subsidiary Spartan Gold. The relationship between SPH and Spartan (SPAG) is a strange one. SPAG has an option to earn up to 75% interest on the poker flats property and SPH owns 53% of SPAG. The two companies have the same CEO, Malcolm Stevens.

Anyways, SPH may be something to look into. A more detailed write up on SPH will come at some point in the future.

Saturday, August 4, 2012

Volcanic Metals...Loading up the truck

Volcanic (V.VOL) is a company focused on new gold discoveries in the white gold district of the Yukon. I plan on doing a more in-depth write up of the fundamentals at some point in the future, but figured I would bring up a few interesting things I've noticed over the last month or so with VOL.

Micheal Iverson, the president of VOL, has been loading up on shares all throughout this past month. Tuesday saw him pick up another 214,000 shares on top of the the other hundreds of thousands of shares he has been purchasing. In total, since June 7th he has loaded up on over a million shares. Quite significant considering the company has a just over one million dollar market cap.

As well, the companies website is undergoing construction. Could be nothing, but stuff like always raises a bit of speculation.

A quick glance at the sedar website shows a couple of 51-101 F3 (an oil and gas disclosure form), which is interesting as well.

half a year ago or more, I can't remember, VOL management proposed a 10:1 roll back of shares in hopes that it would allow them to attract funding more easily (not sure how?). The stock price was at 0.12 at the time, and news of the rollback, which didn't end up going through, seemed to cause a price drop to .05, which is where I bought shares. At 0.035 I see it as being highly under valued, especially as a number of excellent results have come out of the Yukon as of late...but I'll get to all that later.

Until then, watch the insider buying going on by management.

Calibre Mining (V.CXB)

Seeing as I'm in Nicaragua right now, I figured that now would be a good time to do a small write up on one of the my favorite juniors working in Nicaragua, Calibre Mining (V.CXB), trading on the Toronto Venture exchange.

Calibre is a Vancouver based company working in a prolific mining area in Nicaragua called the "Mining Triangle", roughly 250 km north east of Managua. Historically, this area has produced five million oz AU, four million oz Ag, and 305 million lbs of Cu. CXB has complete ownership, or partial owner ship of a five projects in the area, three of which I consider to be of particular interest.

Borosi Concessions

The Borosi concessions contains a total of 5 deposits. At this stage in the exploration process the La Luna and the Cerro Aeropuerto deposits are the two worth mentioning. In February of 2011 an NI 43-101 report was completed for the two deposits, the results indicating inferred resources of  835,450 oz Au and 4 282 070 oz Ag.
Global Inferred Resource (using a 0.6 g/t AuEq* cutoff grade)**
Tonnes and GradeTotal Contained Metal
DepositTonnesGoldSilverAu Eq*GoldSilverGoldSilverAu Eq*
Cerro Aeropuerto6,052,0003.6416.163.8922,013,48097,804,750707,7503,144,500757,000
La Luna2,539,0001.5614.011.783,972,16035,568,870127,7001,143,570146,000

This image from the companies website (which I'm not sure if I can use or not...) shows the data for the two deposits. The thing I like about these numbers is that exploration is not completed on the Borosi concession, and as it stands right now, they are ~ 160,000 oz short of 1million oz Au on this property alone. With three other largely unexplored deposits on the concession (Rosita, Santa Maria, and Bonanza) it is possible that further Au/Ag deposits will be found. A small amount of exploration has been conducted on the aforementioned deposits and gold has been found at very shallow depths. These deposits also lay adjacent to old open pit mines which together has produced over 2.5 million ounces of gold.

In 2010 Calibre entered into a joint-venture agreement with B2Gold which could see BTO earning a 51% interest in Borosi concession if they spend $8 million worth of exploration costs over a 3 year period.

Siuna Project

This concession, named after the nearby town of Siuna, contains a past producing mine, La Luz, and the note worthy Cerro Potosi prospect.

The La Luz mine is a past producing mine which saw 2.3 million ounces of high grade Au (4.14 g/t) removed from it. Calibre has secured a 100% interest in the mine and I assume further exploration work will be done in the future.

The Cerro Potosi prospect, located 1 km north of the Cerro Aeropuerto deposit, seems to support near-surface gold mineralization. A 2008 drill campaign by then owner Yamaha gold highlights a 16.2 meter interecept at 4.19 g/t Au. CXB geologists say that the Cerro Potosi prospect displays the same style of mineralization as the, now water filled, La Luna Mine. A more detailed account of the geology can be found on the CXB website as long as in their April 2011 NI 43-101 technical report                                               ( )

Primavera Project

With the most hype surrounding it, drill results from this project have resulted in most of the major gains and losses in sp to date. A significantly larger amount of exploration work has been done on the Primavera project than any other of Calibres' projects, and it has been identified as a large copper-gold porphyry deposit. B2Gold (T.BTO) currently holds a 51% interest in the Primavera Project, with a chance to earn more. BTO acted as operator on the last round of drill programs, deciding where to drill and what results to release.

In September 2011, after a preliminary trenching trenching campaign, CXB completed their phase 1 drill program which consisted of 3 drill holes over a total length of 668 m.

From the press release...

Drill HoleFrom
Length (m)Gold (g/t )Copper (ppm)
PR -11-0034.00127.85123.850.652,752

( A little note from the press release: "Drill hole PR-11-002 collared from the same platform but oriented 75 degrees from PR-11-001" )

Further drill results were released in April of 2012, which were deemed somewhat disappointing considering the high hopes for higher grade gold discovery on the porphyry deposit. As a result, the SP took a larger than 50% haircut hours following the release. Strangely enough, one of the holes, which proved to be the most impressive, was not released that round. As well, these holes were considerably large step out holes. I guess when you are the operator on a project whose results don't directly affect your own SP you can do such things. The next day, the TSX-V issued a stop trading on CXB and news was released that BTO had purchased 10% of CXB at a price over 50% less than what retail investors were paying not even 24 hours prior.


* Holes previously released (see news release dated January 20, 2012)

** Initial results for top 127.5 metres were previously released (see news release dated January 20, 2012). Hole was paused over the holiday break

*** No significant values

Note: Hole PR-12-010 was analyzed at Inspectorate's Labs in Vancouver.

CXB currently trades at 0.14.