Monday, July 30, 2018

Taseko Mines Limited - TKO.t

Taseko Mines Limited - TKO.t is the owner (75%) and operator of the Gibraltar Mine, the second largest open pit copper-molybdenum mine in Canada.

On July 5, 2018 the company reported News

Taseko Mines Limited (TSX: TKO; NYSE American: TGB) announces that it has purchased copper put options with a US$2.80 strike price for five million pounds per month through December 2018.

“Our strategy has been consistent since 2009; acquire out of the money put options on an opportunistic basis to protect a minimum copper price for a portion of the Company’s production during short-term periods of copper price weakness,” commented Russell Hallbauer, President and CEO of Taseko.

Tuesday, July 24, 2018

Novo Resources Inc - NVO.v

Novo Resources Inc - NVO.v owns the approximately 10 square kilometer Beatons Creek Tenements in Western Australia and has the right to earn a 70% interest in the approximately 1,800 square kilometer Pilbara Paleoplacer Gold Project in Western Australia.
On June 28, 2018 the co released News

Novo Resources Corp. is pleased to announce that the upper gold-bearing unit at Comet Well displays strong continuity in outcrop and drilling.

On March 13, 2018 the co released News

Novo's Comet samples return 10.4 g/t, 1.5 g/t Au

Novo Resources Corp. has provided results for the first two bulk samples from Comet Well, part of Novo's greater Karratha gold project in the Pilbara region of Western Australia. Sample KX157, a 7.143-tonne bulk sample previously reported to contain numerous gold nuggets, returned an impressive grade of 10.4 grams per tonne gold. Sample KX158, a 6.853-tonne bulk sample encompassing conglomerate and footwall dolerite, returned 1.5 g/t gold.
Shares of Novo Resources have been on a climb since the company announced on July 12 it had found gold nuggets up to 4 cm long during trenching at its Purdy’s Reward paleoplacer gold prospect in Western Australia. The company’s stock nearly tripled from 96¢, only to gain another 33¢ to $3.15 per share on Aug. 8, when assay results of a 700-kg bulk sample delivered 87.8 grams gold per tonne and 46.1 grams per tonne. The sample represents the top metre of an 11-metre thick stacked sequence of mineralized conglomerates, similar in style to deposits seen within South Africa’s 1.5 billion oz. gold Witwatersrand Basin.

The watermelon-seed shaped nuggets were originally eroded out of an ancient gold system and re-deposited via rivers in a large outwash zone. Novo has traced the nugget-rich, 2.7 billion year old conglomeratic package almost continuously along an 8-km strike length. The rocks dip 10 degrees to the southeast under a cover of basalts.

Monday, July 23, 2018

Gold in a 'death cross'

Gold has sunk into a correction, and some forecast further downside. The precious metal entered a death cross at the end of June, a bearish technical signal where the 50-day moving average crosses below a 200-day.

Chartists say the next real support level is going to come in around $1,200 to $1,210. Gold has not moved below $1,200 since March 2017. It has fallen more than 6 percent in the year to date, while the S&P 500 has added 5 percent.

Saturday, July 21, 2018

Montepuez ruby mine, Mozambique

The Montepuez ruby deposit is located in the northeast of Mozambique. Covering 33,600 hectares, it is the most significant recently discovered ruby deposit in the world.

The concession is located at a geologically critical junction between the north-south trending Mozambique Belt and the east-west trending Zambezi Belt. Both are “treasure-bearing” Neoproterozoic orogenic belts within the global Pan-African tectonic framework.

Estimates of probable ore reserves are 432 million carats at a diluted grade of 15.7 carats per tonne.
Gemfields PlC (LON:GEM) announced last year that Montepuez has enough reserves to last 21 years. Rubies are formed when fluid derived from the parental magma interacted with the host rocks under a silica unsaturated environment. After hundreds of millions years of erosion, rubies are liberated from the host rock and transported and concentrated by water and eventually settled in alluvial, colluvial, and eluvial deposits.
At its inaugural June 2014 auction of ruby and corundum Montepuez ruby achieved $33.5 million or an average $18.43 per carat with 92 percent sold by lot.

The auction saw 2.03 million carats of ruby and corundum placed on offer, of which 1.82 million carats were sold.

If this is the case, the stone could yield a cut and polished ruby with a wholesale value of $1.5 million or more.
In November 2015 Gemfields discovered a 40.23-carat ruby at Montepuez which it has called “one of the most important rubies unearthed in recent times”

While the yield from the rough varies, one may assume 30 to 40 percent. This should provide a 12 to 16 carat gem. The question is how clean the stone is and if it requires heat treatment. A clean stone without heat treatment is more valuable.
The stone is significant because it attests to the mine’s ability to produce important rubies.

Due to the rarity of rubies, the discovery of a 40-carat ruby is comparable to finding a 100-carat rough diamond.

Thursday, July 19, 2018

Peregrine Diamonds Ltd. - PGD.t

Peregrine Diamonds Ltd. - PGD.t is focused on the flagship Chidliak Diamond project, located 120 kilometres from Iqaluit, Nunavut.

The company released an Inferred Mineral Resource for CH-6 of 11.39 million carats of diamonds in 4.64 million tonnes of kimberlite to a depth of 250 metres at a grade of 4.16 carats per tonne.
On July 19, 2018 the company released News

Peregrine Diamonds Ltd. is pleased to announce that it has entered into an arrangement agreement with De Beers Canada Inc. under which De Beers will acquire all of the Company’s outstanding common shares for $0.24 per share in cash or a total equity value of approximately $107 million pursuant to a plan of arrangement under the Canada Business Corporations Act. The transaction represents a 50% premium to Peregrine’s share price of $0.16 on July 18, 2018, and a premium of 44.5% to the volume weighted average price of the shares for the 20-trading days ended July 18, 2018.