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Tables $24.5M bid for Temex Resources JULY 27-AUGUST 2, 2015 • VOL. 101, NO. 24 • SINCE 1915
Commentary 3
Navigating CSR efforts through anti-corruption laws
Defiance Silver 4
Gets good results at San Acacio
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Sugar Zone may be even sweeter, Gold stocks that Harte Gold’s Roman says soared in 2015’s H1 BY TRISH SAYWELL
Development is picking up speed at Harte Gold’s (TSX: HRT; USOTC: HRTFF) Sugar Zone deposit, 60 km east of the Hemlo gold camp near Wawa, Ont., with a major financing, recent bulk sampling and toll-milling deals. Harte has signed a letter of intent with Barrick Gold (TSX: ABX; NYSE: ABX) to process a 70,000tonne bulk sample from the Sugar Zone mine at its nearby Hemlo mill, and signed a deal for a gold loan of up to US$6 million from metal merchant Auramet International. The term sheet with Auramet includes an undisclosed working capital facility on top of the loan of physical gold, and a final agreement is expected by the end of August. In May, Harte Gold signed a preliminary agreement with Sudburybased Technica Mining for a $20-million fixed price mining contract, and a final agreement is due before the end of July. Technica expects to mine bulk sampling to begin next January at a rate of 300 tonnes per day. “This will get the project started and cash flowing, and then the plan is to build our own See HARTE, Page 2
HARTE GOLD
Harte Gold president and CEO Stephen G. Roman at the Sugar Zone gold project in Ontario.
Callinex Mines attracts Resource Capital Funds BY TRISH SAYWELL
Max Porterfield, president and CEO of Callinex Mines (TSXV: CNX; US-OTC: CLLXF) thinks he’s got the projects, the people and soon, some of the money, to have a decent shot at making the next meaningful discovery in Manitoba’s prolific Flin Flon belt. The junior owns 100% of two projects that are within 16 km of Hudbay Minerals’ (TSX: HBM; NYSE: HBM) Triple Seven (777) zinc-copper-gold-silver mine and its Flin Flon concentrator, and in June Callinex appointed volcanogenic massive sulphide (VMS) experts Alan Vowles and J.J. O’Donnell to its technical team, both of whom have a history at Hudbay. Callinex has caught the eye of Resource Capital Funds (RCF), a U.S.-headquartered private equity fund that, since 1998, has supported 135 mining and mining-services companies in over 29 commodities and 44 countries. On July 13, Callinex announced
TNM July 27 2015 Issue.indd 1
that it expects RCF will acquire most of its upcoming $3-million, non-brokered private placement that will pay for more exploration at Callinex’s 100%-owned Pine Bay and Flin Flon projects. “As far as I know this will be RCF’s first foray into an earlierstage exploration company — it’s a new direction for them,” Porter field says in a telephone interview with The Northern Miner from his office in Vancouver. “We’re excited to have them, and they bring a lot more to the table and a lot more value-add than just their capital.” Under terms of the planned private placement, Callinex will issue 5 million flow-through shares at 30¢ per share, and another 5 million non-flow-through shares at the same price. The offering is expected to close on July 27. RCF is interested in Callinex for a number of reasons, Porterfield says, including its portfolio of properties that haven’t seen much See CALLINEX, Page 13
profitability and free Several gold producers cash flow for the last four have registered strong financial quarters,” Ogilshare price gains during vie says. the first half of 2015, deThe miner intends to spite price pressure on bump up grades again the yellow metal. The this year, and Ogilvie says spot gold price dipped that “a regional explora0.7% from last year’s tion program, coupled close to end June 30 at with continued success US$1,174 per oz. It has BY SALMA TARIKH at the operation, will act since fallen another as catalysts to further US$68.20 per oz. to finish July 21 at US$1,105.80. However, drive the share price.” Kirkland Lake will adopt a Dethere have been many gold stocks on the rise over the first half of the cember year-end, starting in 2016. The stock closed July 21 at $4.56. year, including the following: Kirkland Lake Gold (TSX: CIBC analyst Cosmos Chiu rates KGI; US-OTC: KGILF) ended the Kirkland as a “sector performer,” half year at $5.63 per share, up 68% with a $6 per share target. Lake Shore Gold (TSX: LSG; since the end of 2014, and up 119% since 2013. In November 2013 the NYSE-MKT: LSG) rose 64% to fincompany focused on better grades ish June at $1.28 per share. The instead of higher tonnage at its Ma- stock had been up 164% since the cassa gold mine in Ontario, leading end of 2013, coinciding with the miner expanding its Bell Creek mill to its recent success. Since that change, CEO George to 3,000 tonnes per day. This bolOgilvie explains the mine’s head stered output and trimmed costs grades are up 36% to 15 grams gold last year at its Timmins West and per tonne. Production in fiscal 2015, Bell Creek gold mines in Ontario. Gold production in the first half ended April, jumped 26% to 154,000 oz. gold over the earlier fiscal year, of 2015 totalled 95,600 oz., reladriving down costs. The firm also tively flat compared to the same reduced its 1,250-person workforce period last year. But preliminary to 1,000 employees. These factors cash costs and all-in sustaining have helped Kirkland “return to costs during the first half are both down 6% to US$551 and US$810 per oz., leading to a revised 2015 cost guidance. Lake Shore now expects costs to come in below its previous forecasts of US$650 to US$750 per oz. for cash costs, and US$950 to
NioCorp CEO provides cash to company BY TRISH SAYWELL
For the second time in less than two months, Mark Smith of NioCorp Developments (TSX: NB; USOTC: NIOBF) has dug into his own pockets for loans to the company he leads. The president, CEO and executive chairman loaned NioCorp US$1.5 million on June 17, and followed up with a US$2-million nonrevolving credit facility on July 1. The funds will help NioCorp refine its Elk Creek niobium project in southeastern Nebraska, and stay on track to complete a feasibility study. “I want to make sure that we don’t slow down any of the studies we’re undertaking to move this project forward,” Smith explains of his personal loans to the company. “In the last year we’ve been going at a feverish pace, and that is all about having confidence in a wonderful orebody and metallurgy that is getting better and better understood every day. Our goal is to develop this project, and we don’t
want to go slow, we want to get this technical work done so that we can do the financing and start construction, and I didn’t want any financial issues to get in the way of that speed, so I’m making sure the company has what it needs financially as we start the financing process.” Smith — who is also NioCorp’s largest shareholder, with an 11.8% stake in the company — says he expects to move Elk Creek into the construction phase of mine development in 2016, once a feasibility study is completed. Elk Creek is the only primary niobium deposit in the U.S. and the highest-grade undeveloped niobium deposit in North America, according to the company, which points out in its literature that the U.S. imports 100% of its niobium needs. Elk Creek also contains titanium and scandium. Indicated resources at Elk Creek measure 80.5 million tonnes grading 0.7% niobium pentoxide (Nb2O 5), 2.7% titanium dioxide
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