The down under gold buzz moves to Canada

There’s been a lot of buzz recently about a massive gold nugget discovered in the historic gold fields region, of Kalgoorlie in Western Australia. If you look around it seems many historic mine sites are reopening to take advantage of historical indicated resources. Canada has many historical gold regions. The legendary Klondike Gold Rush in the Yukon, marked the beginning of one of the most productive periods in Canadian gold-mining history. Roughly 90% of Canada’s gold production comes from hard-rock underground and open-pit mines, with the majority being produced in Ontario and Quebec.

Signature Resources Ltd. (TSXV: SGU | OTCQB: SGGTF) is a Canadian gold exploration company with advanced and early exploration assets. They owns a 100% interest in the Lingman Lake gold property that includes 4 free hold patented claims and 50 staked claims covering an area of 9,896.8 hectares. Signature’s focus is on its core historical asset, the Lingman Mine Project, located in the Lingman Lake greenstone belt of northwestern Ontario. The Company’s other assets include two new early exploration projects: Lingside West and Lingside East. All three projects are located within the Lingman Lake greenstone belt. Signature is poised to advance and expand these projects centering on targeted diamond drilling of the high-grade gold zones.

The Lingman Mine Project

Comprising 606.8 hectares, the project hosts a historic estimate of 234,684 oz of gold (1,063,904 tonnes grading 6.86 g Au/t at a 2.73 g Au/t cut-off) on what has historically been referred to as the Lingman Lake Gold Mine. This historical resource estimate is based on prior data and reports obtained and prepared by previous operators, as is therefore not yet compliant. The Lingman Lake Gold Mine comes with an underground substructure consisting of a 126.5-meter shaft, and 3-levels at 46-meters, 84-meters and 122-meters depths.

The Lingside West Project 

Encompassing an area of some 9,120 hectares, the expanded Lingside West project consists of 492 claim cell units that lie directly west of the Lingman Mine project area. Signature’s future plans for the Lingside West project area is to follow-up on the high priority targets.

The Lingside East Project 

The Lingside East project area incorporates the eastern end of the Lingman lake greenstone belt and includes 144 cell claims totaling 2,880 hectares. Future plans for this project area include a high resolution airborne survey, and pending results of that survey, a ground follow-up program.

On October 11, 2018 Signature announced a successful completion of a high resolution GPS survey of the diamond drill casings from the drill campaigns conducted from 1987 to 1989. The survey was able to locate 84% of the drill casings, from a total of 154 drill holes.

Walter Hanych, President and CEO of Signature Resources commented: “We are very pleased with this result and we are very fortunate that the located holes had their casing intact. We will also be able to geo-reference other features in relation to the drill holes with a greater degree of accuracy, allowing us to produce better property scale maps.”

The Company is nearing the completion of winterizing its field camp in anticipation of a winter drill program in 2019, which can be funded by the recent $1.5M capital raise.

Gold is the flavor of the month (the last few months) in Western Australia, could Ontario Canada be next? Signature Resources has a historical resource and are moving on with other projects in their Lingman Lake Gold property in Ontario.

Neometals sends maiden shipment to “lithium giant” Ganfeng

The moment a plot of land successfully exports its first refined material is cause for celebration. It signifies the end of the period in which life becomes an alternating series of drill results, surveys and planning exercises. In a truly impressive time of eighteen months, Neometals Ltd. (ASX:NMT) (“Neometals”) have progressed their Mount Marion lithium project from final investment decision to first shipment, sending a new supply stream of one of the world’s most desirable metals northwards to China. Major lithium producer Jiangxi Ganfeng Lithium Co. have signed a life-of-mine offtake agreement, securing the site for a decade or more.

The Mt Marion lithium project is located approximately 40km south west of Kalgoorlie, Western Australia and is jointly owned by Neometals Ltd (13.8%), Mineral Resources Ltd (43.1%) and one of China’s largest lithium producers Jiangxi Ganfeng Lithium Co., Ltd (43.1%). The group advised today that the first shipment of 15,000 tonnes of lithium concentrates had been loaded onto the MV Pacific Venus at the Port of Kwinana, and last night departed on its journey to the Zhenjiang Port, China where the product will be delivered to Ganfeng. This first shipment follows the successful commissioning and continued ramp up of production from Mt Marion, which is forecast to produce 400,000 tonnes each year at full capacity.

Neometals and Mineral Resources initially signed a farm-in agreement in October 2009 which saw Neometals retain 100% ownership of the project while Mineral Resources would take full responsibility for construction and processing in return for a 40% share of net profit. In February 2011 this agreement was amended so that Mineral Resources could have direct ownership of a portion of the project, rather than taking 40% of the profit from sales. Ganfeng joined the party in September 2015 when an agreement was executed between Neometals, Mineral Resources and Jiangxi Ganfeng Lithium which resulted in Ganfeng taking a share in the Mt Marion mine, and agreeing to buy everything the mine ever produced.

On the British Geological Survey’s “Risk List”, last released in 2015, Lithium ranked 15th. The biggest producer is currently Australia, with Chile having the greatest reserves. The agreements in place with Ganfeng are not uncommon; the Chinese know that they lack the domestic lithium production necessary to meet their own demand and have been busy securing supplies from around the world. The spodumene mineral from the mine has been processed to produce lithium carbonate that will mainly be used in the production of batteries for hybrid cars. A pre-feasibility study estimated the demand for lithium carbonate in Asian markets to be 17,000tpa, that could be produced from 120,000t of chemical-grade spodumene concentrate, and Mt Marion was developed to tap this very demand.

Lithium carbonate is also used in several other industries such as lubricants, glass, pharmaceuticals, air-conditioning and ceramics. By-products recovered from the mining operations will include potassium feldspars, tantalum and mica. The mine is expected to initially produce 200,000 tpa of lithium oxide (Li2O) at 6% chemical grade spodumene concentrate, 60,000tpa of mica and 30 tpa of tantalite concentrate. The processing plant will include a modular system capable of increasing production in future.

Ganfeng are well-respected giants in the lithium game, and their bets are worthy of attention. Having similar interests in a lithium brine in Argentina, a pegmatite in Ireland and a spodumene down-under, the Chinese continue to drive the lithium supply chain.