PATIENCE IS A VIRTURE - WHEN WILL THINGS GET BETTER
With summer about to start there is little joy to report in the market if you a junior resource stock investor however a couple of recent drilling successes provided some moments of happiness if you were long with the correct stocks. We start with British Columbia and Colorado Resources (CXO-TSX-V) North ROK project 200 kms north of Stewart located along BC Highway 37 south of the village of Iskut in northwest BC.
Drill hole NR13-001 returned 333.0 meters of 0.51% copper and 0.67 g/t gold. The first 242 meters of the hole was hosted in a typical porphyry-copper-style altered monzonite intrusion and assayed 242 meters of 0.63% copper and 0.85 g/t gold. The remaining 91 meters of the hole intersected altered volcanics assaying 0.20 % copper and 0.19 g/t gold. CXO stock rocketed up from 16 cents in late April to around a dollar in mid-May then in late May moved to around $1.50 based on the completion of four 400 plus meter drill holes that must have had good visual features. Could the North ROK project be another Red Chris project of Imperial Metals (III-TSX) a nearby neighbor and host to 301.5 million proven and probable reserve tonnes grading 0.35% copper and 0.274 g/t gold? Red Chris is about 20 kms to the north of North ROX and 80 kms south of Dease Lake.
Environmental approvals and permitting are in progress for a conventional shovel and truck open pit operation with an average mining rate of about 30 million tonnes with a maximum rate of about 40 million tonnes per year with a life of mine of 28.3 years. As a reminder Imperial Metals' stock had a meteoric stock price history ranging from a low of $8.50 to a high of $17.50 since early 2012 and now trading around $10.80. With good land access and power facilities in place there is a lot of potential for North ROK given a 350-meter-by-700 meter cu-au geochemical anomaly that is coincident with a similar-sized area of increased magnetic susceptibility and IP chargeability.F
urther drilling is planned while working with the local Tahitan First Nations' community and local contractors to provide mutual benefit to all parties. In the Yukon, Colorado announced an option amendment agreement to an acquisition of certain mineral claims in the Mayo mining district referred to as the Oro project. The project is subject to an option and joint venture agreement with a wholly owned subsidiary of Gold Fields Limited whereby Colorado has granted Gold Fields an option to earn up to 70% interest in the Oro property.
The property covers 36,000 hectares located in the mineral-rich MacMillan pass area of the Yukon. Previous exploration delineated widespread stratiform barite-lead-zinc-silver mineralization highlighted by the Tom claims containing two mineralized bodies containing nine million tons of 8.6% Pb, 8.4% Zn and 2.8 oz/t Ag. In addition to the base metal targets Colorado has identified Carlin style anomalies that will be investigated by Goldfields.
Uranium, still does not command the attention of the investing world but do not neglect this energy component. The daily press highlights pipe lines crossing international boundaries transporting oil and the fears of shale gas advancements strike fear to contaminations to local water supplies all with controversial issues both with pro and anti support from local and national bodies. This debate is beyond the scope of this scribe. Alpha Minerals Inc (AMW-TSX-V) and Fission Uranium Corp (FUS-TSX-V) the new off spring of Fission Energy, still continue to advance their South Patterson Lake project in Saskatchewan.
Fission was taken over by Denison Mines Corp (DML-TSX) and it then became Fission Uranium still retaining its 50% interest in the South Patterson Lake project. On May 16 the JV announced some more impressive intersections from nine holes in the R00E Zone showing a continuous area of broad uranium mineralization at shallow depth.
Highlights include in hole PLS 13-043, 22 meters of 4.8 % U3O8 including a four meter intersection (83.5 m to 87.5 m) of 20.73% U3O8. On May 20 some more spectacular drill results were released highlighted by Hole PLS 13-059 on line 030E comprising an Upper Zone from 55.5 m to 62.0 m grading 3.61% U3O8 and a Lower Zone from 65.5 m-86.0 m grading 8.57% U3O8 including a higher grade interval of 9.4m (74.5m-84.0 m) grading 17.78% U3O8. Two additional holes reported economic grades of uranium.
The companies announced an aggressive $6.95 million summer and fall drill program for the project to expand three uranium zones, R00E, R390 and R789E as well as testing the highest priority radon anomalies. Other additional work will include metallurgical testing of cores and baseline study for future environmental reporting purposes. Both stocks traded higher with Alpha going to $4.05 and Fission to 0.71 cents.
Both Alpha and Fusion announced separate JV's in Saskatchewan. Alpha reported radon targets located on the Skull Lake JV with Acme Resources Inc (ARI-TSX-V). The project straddles the margin of the Carswell Impact Structure along a possible easterly extension of the Cluff Lake uranium deposits. The Cluff Lake deposits produced more than 60 million pounds of uranium from multiple deposits with an average grade of approximately 0.90 % U3O8 over the period 1982 to 2005. Fission formed a 50% JV with Azincourt Resources Inc (AAZ-TSX-V) on their Patterson Lake North project.
The project covers 10 contiguous claims totaling 27,408 hectares immediately north of and adjacent to Fission's Patterson Lake South project with Alpha. Azincourt announced the completion of a non-brokered private placement of 10 million shares at 15 cents a shared. Azincourt stock after a temporary halt opened on May 13 and traded in the 23 cent range and within two days moved up to 30 cents. Airborne geophysical surveys and 2,500 meters of drilling are schedule to commence as soon as permits are obtained.
Active uranium explorer Forum Uranium Corp (FDC-TSX-V) and JV partner NexGen Energy Ltd (NXE-TSX-V) reported intersecting 1.34% U3O8 in a drill hole over three meters from shallow depths at Zone A on the north side of Maurice Bay on the northwest part of the Athabasca Basin. Forum stock traded sideways a 38 cents and NexGen at 35 cents.F
rom Japan we hear Japan's largest utility company Tokyo Electric Power Co. (TEPCO) may restart some its idled nuclear reactors. Currently 13 of TEPCO's 13 nuclear reactors remain shut undergoing checks and upgrade equipment. Four of seven reactors at its Kashiwazaki Kariwa could start up as early as this December. Cameco Corp (CCO-TSX) stock has looked firm in May trading up to $23.00 but steady at $22.50. Their North Butte, Wyoming in-situ uranium mine commenced production as a satellite facility to their Smith Ranch-Highland mine. Production is scheduled to produce 300,000 pounds of U3O8 this year and increase to 700,000 pounds in 2015.