Friday, September 28, 2012

News from Prosperity Gold Fields/Nunavut Comment

Prosperity Gold Fields released a news release today. PPG is a junior working in southern Nunavut, just above the border of Manitoba, on their Kiyuk Lake project (They also have another property in the Yukon). From the pictures on their website, their camp is fairly small with only 2 facility looking buildings and a handful of cabins.

Prosperity has never been on my watch list, I just caught their news release as I was looking at stockhouse this morning. I didn't find the news to be all that exciting other than the fact that it mentioned their property was in Nunavut, a place I have a keen interest in as far as gold exploration goes. I read the press release then went on to look through their site a bit.

The independent technical report on the website gives an interesting but of history on Kiyuk Lake, as it relates to gold exploration....

     "The Kiyuk Lake area of southern Nunavut received little recorded exploration attention until Comaplex
Minerals Corp (Comaplex) conducted regional exploration in the early 1990s using publically available
lake sediment geochemistry, airborne magnetic geophysical survey data and reports of gossanous rocks
identified during government regional mapping. This exploration work by Comaplex confirmed the gold
mineralization at Kiyuk, however, despite recommendations to continue exploration on the property in the
1989 assessment report (Hauseux, 1993) Comaplex eventually let their mineral right lapse. The property
was left dormant until 2003 when it was restaked by M. Hauseux and S. Sumacz. Since then the claims
were intermittently worked and the property expanded by optioner Newmont Canada Limited, it was then
returned to the claim holders in early 2009 and subsequently optioned to Evolving Gold Corp.. The option
agreement was then transferred to Prosperity Goldfields Corp. late in 2010. The summer of 2011 saw
exploration by Prosperity Goldfields, and included 2679 m of diamond drilling and minor surface
prospecting / sampling. A more detailed review of work conducted on the property can be found in the
table following. No historical mineral resource or mineral reserve estimates have been made for the Kiyuk
Lake gold mineralization. Furthermore, no gold production has been undertaken from the area"

Of this 2679 m of drilling three noteworthy results were found:

Cobalt discovery, 31.4 m at 2.41 g/t Au
Rusty discovery, 42.4 m at 3.3 g/t Au
Gold Point discovery, 63.6 m at 2.8 g/t Au

The Rusty and the the Cobalt holes are both respectable drill results. Below is a picture which gives an idea of the amount of exploration work done at each area and the distance between them.

Nunavut and the Canadian arctic are interesting areas because they largely unexplored (from a resources point of view, among many others) and there is, given what geologists know about the geological history of the land, high potential for gold; as we are finding out. From a scientific perspective, there really is very little known about its geological qualities. The 3D models being put together by geologists working for exploration companies are some of the most advanced models put forth for this area.

That being said, exploration can be tough and costly up north. Infrastructure is next to non-existent and companies are having to come up with their own strategies for getting in supplies, and moving them around (most of it involving costly float plane and helicopter trips).

I know a number of companies are in the early stages of conducting an environmental impact study up by Bathurst inlet. The idea is to build a small port then a road. The Helicopter trip (which I had the luxury of taking twice) took 40 minutes with favorable wind. Long way for trucks to go. That being said, PPG, being closer to the Manitoba border, may not have such a difficult/costly go of it. Kind of the best of both worlds, remote enough to have a chance to find something big in a place most haven't bothered to look, but still close enough to infrastructure.

As well, the Inuit community has seemed quite co-operative in the stories which I have been following.

Anyways...I'll continue to keep my eye out for the interesting stories coming out of the Canadian Arctic and I'll be putting PPG on my watch list.

Monday, September 17, 2012

Sabina Drill Results

The Arctic drilling season is just a couple of weeks at most from being over and investors will see a few months of none or very minimal news coming from their juniors up north. Sabina released a press release today detailing what they believe to be a new shallow, high grade, discovery between the Umwelt and llama deposits near goose lake at their back river project. We can expect to have further drilling conducted on the area when drilling begins again sometime in late February. It will be interesting to see if this new discovery turns into anything of value.

For those who haven't been following Sabina, they are a gold and silver company with nearly 7 million oz Au in the ground and money in the bank. They say they plan to bring their back river project to a mine by 2016 but we'll see if they can raise the money or if they don't get bought out. If I recall correctly, they have around 160 million in the bank. Heres a link a write up I did on them a month or so ago. When I wrote about them then I think they were trading somewhere around 2.00.

Note that in the last paragraph posted here Sabina states that true widths are not yet known, and that they expect to have the pre-feasibility study out by 2013

Sabina Announces New Shallow High Grade Discovery at Back River Project, Nunavut

Hole 12GSE226 Returns 12.68 g/t Au Over 15.45 m from 52.00 m Down-Hole; Infill Drilling at George Confirms High-Grade Nature of Locale 1 Deposits

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 17, 2012) - Sabina Gold & Silver Corp. (TSX:SBB) is pleased to announce new assay results from holes drilled at its Goose and George properties as part of the 2012 exploration program at its 100% owned Back River Gold Project in Nunavut, Canada.
Near-Surface Discovery
At the Goose property, a shallow new zone of gold mineralization has been discovered between the proposed Umwelt and Llama open pits. The Wing Zone was discovered by drill holes targeting the extension of the Llama deposit at depth. This new zone lies predominantly on the west limb of a south-plunging anticlinally folded iron formation sitting above and to the west of the deep extension of the Llama deposit.
Hole 12GSE226 intersected 12.68 g /t Au over 15.45 m in the western part of the zone starting at a down-hole depth of 52.00 m. The hole then went on to intersect the eastern limb of the fold returning several significant intercepts including 5.86 g/t Au over 1.05 m, 3.91 g/t Au over 3.00 m, 4.19 g/t Au over 2.95 m and 17.63 g/t Au over 0.60 m between 213.10 and 245.80 m.
The hole finally intersected its target at depth, returning 7.14 g/t Au over 4.05 m in the deep extension of the Llama Main West zone, Below the zone, a sample from a sediment-hosted dyke yielded 7.08 g/t Au over 0.80 m.
A step out hole 100 metres to the southeast of 12GSE226 encountered the Wing Zone again. Hole 12GSE231 returned various lower-grade intersections in both the eastern and western parts of the zone including 2.43 g/t Au over 19.15 m. At target depth in the Llama Main West deep extension zone, 12GSE231 returned intercepts of 14.31 g/t Au over 2.00 m, and 16.34 g/t Au over 1.55 m. Ongoing drilling is continuing to trace the Wing Zone mineralization as it plunges to the south.
"We are pleased to have another high-grade near surface discovery to follow-up on," said Rob Pease, President & CEO. "The Wing Zone's strategic location, near the proposed mining infrastructure and right in between the proposed Llama and Umwelt open pits, makes it of significant interest to us. Results like these continue to demonstrate the prospectivity of our vast land holdings at Back River."
Llama Drilling Highlights
Hole IdFrom
Zone Name
12GSE22643.9045.201.302.28Wing Zone West
52.0067.4515.4512.68Wing Zone West
including57.2059.001.800.00Wing Zone West
(core loss interval)
and59.0064.705.7028.30Wing Zone West
213.10214.151.055.86Wing Zone East
227.10230.103.003.91Wing Zone East
245.20248.152.954.19Wing Zone East
including245.20245.800.6017.63Wing Zone East
260.15260.650.503.00Wing Zone East
518.70522.754.057.14Main West
including518.70520.101.4012.77Main West
539.65540.450.807.08Gwky Core
True widths have not yet been determined
George Infill Drilling
The George property sits approximately 60kms north of the Goose claim block and contains underground resources of 2,727,000 tonnes grading 8.14 g/t Au for a total of 714,000 indicated ounces of gold and an additional 1,857,000 tonnes grading 8.92 g/t Au for a total of 533,000 inferred ounces of gold. The resources at George are made up of a series of deposits on the property and are the Preliminary Economic Assessment contemplates these deposits to be mined at Back River.
Currently three drills are focussed on infill drilling at George to upgrade the resources from Inferred to Indicated. The program is currently focused on the Locale deposits which contain the bulk of the George resources. Five of the first six holes at Locale 1 have confirmed the robust nature of the gold mineralization. Highlights include hole 12GRL058 (16.16 g/t Au over 7.85 m), 12GRL063 (6.12 g/t Au over 18.40 m) and 12GRL064 (16.85 g/t Au over 4.82 m).
Locale 1 Drilling Highlights
Hole IdFrom
Zone Name
12GRL058215.4223.257.8516.16Locale 1
including217.45218.551.174.69Locale 1
and220.5221.150.6525.29Locale 1
12GRL060245.95255.69.656.37Locale 1
12GRL061103.31040.724.4Locale 1
233243106.31Locale 1
including238241317.41Locale 1
246247.71.72.02Locale 1
252261.19.116.83Locale 1
including253258528.91Locale 1
including255258337.83Locale 1
12GRL063217235.418.46.12Locale 1
12GRL06425726031.43Locale 1
27127212.37Locale 1
27727814.44Locale 1
28128873.9Locale 1
294.182994.8216.85Locale 1
True widths have not yet been determined
The 2012 exploration program is expected to continue until the beginning of October 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 the ongoing Pre-Feasibility Study anticipated in 2013.

Sunday, September 16, 2012

News from Newstrike

NES is one of my favorite junior plays right now. They are consistently releasing excellent results from their Ana Paula project. Just the other day they released more news highlighting 174.48 meters grading 5.45 g/t Au.

The stock closed at 2.22 on friday and I am curious to see where it will go on Monday Sept 17th. When I wrote about them about a month ago they were trading somewhere around 1.45.

One of the things I like about NES is the depth of mineralization. The gold is not that deep. Anyways, here is the press release...

Newstrike Capital Inc. NES
9/12/2012 10:29:17 PM

Newstrike Capital Intersects 76.27 Meters of 10.57 g/t Au Within a 174.48 Meter Interval of 5.45 g/t Au At the Ana Paula Project
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 12, 2012) -
Newstrike Capital Inc. (TSX VENTURE:NES) ("Newstrike" or the "Company") announces the results from 4,948 meters of drilling completed this period as part of the 2012 drill program in progress at the Company's 100%-owned Ana Paula Project in the Guerrero Gold Belt. The results are from the ongoing delineation program in the southeast quadrant and from new exploration in the southwest quadrant. Drill results from the Breccia Zone delineation program remain in strong gold mineralization and further follow up drilling is planned.
Highlights from the delineation program include:
  • AP-12-108 intersected 4.50 meters of 0.95 g/t Au, 3.10 meters of 4.44 g/t Au, 11.37 meters of 3.21 g/t Au and 11.59 meters of 1.00 g/t Au in a step out hole west of AP-11-28 and 29.
  • AP-12-109 intersected 55.22 meters of 0.81 g/t Au and 17.0 g/t Ag, including 18.81 meters of 1.28 g/t Au and 27.1 g/t Ag.
  • AP-12-111 intersected from surface 174.48 meters of 5.45 g/t Au and 11.8 g/t Ag that includes a 76.27 meter interval of 10.57 g/t Au and 15.8 g/t Ag. Other intersections further downhole include 31.85 meters of 1.14 g/t Au, 34.92 meters of 1.27 g/t Au, and 11.50 meters of 2.59 g/t Au, among others.
  • AP-12-114 intersected 57.98 meters of 2.27 g/t Au that includes a 38.91 meter interval of 3.14 g/t Au. Another intersection of 31.71 meters of 2.31 g/t Au that includes a 15.78 meter intersection of 4.15 g/t Au, and further downhole another 25.68 meter intersection of 2.36 g/t Au, 20.04 meters of 2.64 g/t Au and 10.30 meters of 0.53 g/t Au among other intersections.
  • AP-12-115 intersected 55.70 meters of 2.56 g/t Au and 10.5 g/t Ag that includes 9.53 meters of 5.06 g/t Au and 35.8 g/t Ag and another 13.25 meter interval of 5.39 g/t Au and 6.4 g/t Ag. 
Table 1 provides drill hole collar locations while Table 2 provides a selection of assay results.
Table 1: Preliminary drill hole collar locations.
Drill HoleENElev.
Delineation Drill Program
Drill holes AP-12-105, 106, 107, 108, 109, 110, 111, 112, 114 and 115 are part of the delineation drill program currently underway on the Ana Paula Project that is advancing towards an initial resource estimate. Delineation is progressing rapidly while results continue to demonstrate significant gold mineralization in both the high grade Breccia Zone and the lower grade monolithic breccia zone of the southeast quadrant. Further step out drilling also continues to intersect strong mineralization in a north-south trending corridor of lower grade stratigraphic mineralization.
Northeast quadrant infill drill holes include AP-12-105 and AP-12-108 that tested the lower grade stratigraphic mineralization. AP-12-105 is a steeply inclined hole that intersected the typical multiple mineralized intervals including 23.18 meters of 0.57 g/t Au, 9.35 meters of 0.56 g/t Au, 20.55 meters of 0.42 g/t Au, 5.14 meters of 0.45 g/t Au, and 9.30 meters of 1.15 g/t Au.
AP-12-108 is an inclined hole that was a 150 meter step out to the west and downdip of mineralization first intersected in AP-11-28 and 29 (March 21st, 2011). AP-12-108 intersected stronger mineralization including best intervals of 3.10 meters of 4.44 g/t Au, 11.37 meters of 3.21 g/t Au and 11.59 meters of 1.00 g/t Au.
Drilling in the southeast quadrant tested a variety of targets including the high grade breccia zone, the lower grade monolithic breccia to the south and the lower grade stratigraphic mineralization. The strongest mineralization from this area continues to come from the Breccia Zone delineation drill holes. AP-12-111 is a vertical infill hole between AP-11-19 and AP-11-37 (January 18th and April 20th, 2011). AP-12-111 intersected strong mineralization over a 294.13 meter interval that does not meet the 0.2 g/t Au cutoff protocol but that averages 3.64 g/t Au and 8.24 g/t Ag overall. This interval includes 174.48 meters of continuous mineralization of 5.45 g/t Au and 11.8 g/t Ag that also includes 105.97 meters of 8.52 g/t Au and 14.69 g/t Ag, or a 76.27 meter interval of 10.57 g/t Au and 15.8 g/t Ag. This interval includes 28 discrete samples over a total of 32.22 meters that each assay 10.0 g/t Au or more and also includes 58 discrete samples over a total of 65.76 meters that assay 5.0 g/t Au or more.
AP-12-114 and 115 are vertical infill holes that also tested the Breccia Zone. Both holes remain in strong mineralization where AP-12-114 intersected 57.98 meters of 2.27 g/t Au that also includes 38.91 meters of 3.14 g/t Au. Other intersections include 31.71 meters of 2.31 g/t Au that includes 15.78 meters of 4.15 g/t Au, an additional 25.68 meters of 2.36 g/t Au and 10.30 meters of 0.53 g/t Au. AP-12-115 intersected 55.70 meters of 2.56 g/t Au and 10.5 g/t Ag that includes 13.25 meters of 5.39 g/t Au. Other intersections include 34.35 meters of 0.53 g/t Au, 46.05 meters of 0.90 g/t Au that includes 16.30 meters of 1.19 g/t Au and 5.20 meters of 2.97 g/t Au.
Drill hole AP-12-112 successfully tested the continuity of the lower grade monolithic breccia at depth beneath AP-12-94 (June 28, 2012), intersecting 55.22 meters of 0.81 g/t Au and 17.0 g/t Ag and another intersection of 18.87 meters of 1.28 g/t Au and 27.1 g/t Ag. The lower grade monolithic breccia is located up hill and to the south of the high grade Breccia Zone.
Drill holes AP-12-106, 107, 110 and 112 each tested the boundaries of the lower grade mineralization that surrounds the Breccia Zone. The strongest mineralization from this group is from AP-12-112, a vertical hole testing the southwestern boundary of mineralization. AP-12-112 intersected strong mineralization over multiple intercepts typical of the lower grade stratigraphic controlled mineralization, including 7.90 meters of 0.69 g/t Au, 11.65 meters of 2.06 g/t Au, 9.75 meters of 0.71 g/t Au, 23.37meters of 1.45 g/t Au and 4.50 meters of 1.52 g/t Au.
The weakest intersections from this group of drill holes are from AP-12-107 and AP-12-110, both of which tested the eastern boundary of mineralization. Both holes intersected weakly anomalous gold over discrete sample intervals, the best of which was a 1.90 meter intersection of 1.15 g/t Au from AP-12-110.
The delineation drill program is continuing as planned with four drill rigs on site. New holes were added to the program to follow up these results and to complete the process of delineation as the Company continues to advance Ana Paula towards a resource estimate. Deposit modelling is ongoing and until that process is complete true widths can be assumed to be less than or equal to the reported intervals.
Southwest Quadrant - Exploration drill program
Drill holes AP-12-104 and 113 both tested targets in the southwest quadrant that are part of a series of new exploration holes testing the contact zone between highly altered sediments and an altered and mineralized intrusion that outcrops in this area. Some of the better intersections from AP-12-104, an inclined hole drilled to the east, intersected 7.66 meters of 0.41 g/t Au, 3.29 meters of 2.91 g/t Au, 2.89 meters of 1.10 g/t Au that also returned 18.9 g/t Ag and another intersection of 4.91 meters of 0.68 g/t Au.
AP-12-113 is also an inclined hole that intersected multiple lower grade intervals of mineralization at depth, including 7.69 meters of 0.34 g/t Au, 5.40 meters of 0.54 g/t Au, 7.39 meters of 0.34 g/t Au, 5.72 meters of 0.69 g/t Au and 2.66 meters of 0.93 g/t Au among other intersections. The Company will continue to test a variety of planned exploration targets as drilling progresses throughout 2012.
The Ana Paula Project is central to Newstrike's 88,000 hectare mineral claims located in the Guerrero Gold Belt and forms part of a district scale mining camp that is host to Torex Gold's advanced Morelos Project and to Goldcorp's producing Los Filos Mine. Ken Thorsen, a director of the company and a qualified person under NI 43-101 has reviewed the contents of this press release. The drill program and all project operations are conducted under the direction and supervision of Dr. Craig Gibson, PhD, CPG and a qualified person under NI 43-101.
Newstrike maintains strict QA-QC protocols for all aspects of their exploration programs that include the systematic insertion of blanks and standards into each sample batch. SGS laboratories or ALS Chemex performed assay analyses reported in this release. All samples are assayed using the respective laboratories certified and industry standard assay techniques for gold and multi-element packages and for over limits; Au was analyzed by 50 gram fire assay with an atomic absorption finish, and other elements were analyzed by multi-element ICP packages.
The reported mineralized intervals in core tend to be separated by "barren" intervals that may or may not contain narrow anomalous sections and local high-grade spikes that are not included in the calculations of mineralized intervals. Unless specified otherwise, reported intersections are calculated according to a protocol that uses a 0.20 g/t Au cut off for bounding assays. Reported grade intervals are based on the original uncut assay certificates as received from the assay labs. They do not include check assays pending at the time of reporting. The dip of the geology and the mineralized intersections varies across the property and the true widths are not accurately known at this time. True width can be expected to be equal to or smaller than the reported intervals.
A table of all weighted grade intercepts over a 0.20 g/t Au cut off is available on the company website together with drill location maps and sections at
A table of selected highlights of weighted grade drill assay intersections:
Drill holeFromToInterval