HEY. Is it REE You’re looking for? The hunt for rare earth elements

HEY. Is it REE You’re looking for? The hunt for rare earth elements

Rare earth elements (REEs) are big business these days, a big and somewhat complex business. Along with lithium and other ‘critical metals’ they’re hitting headlines, liquifying their own markets and striking fear into governments. But why?Here we offer a glancing guide to the mysterious systems that control their geological distribution and the politics surrounding their criticality.

WHAT ON EARTH?

Figure 1: The rare earth elements, highlighted in yellow. [13]
Figure 1: The rare earth elements, highlighted in yellow. [13]
You’ve probably read about the importance of REEs and skimmed articles in the Mining News while dribbling our 9am coffee, but it’s worth knowing what they are and why we’re so excited about them. REE is the group term used to describe the lanthanide group elements and normally yttrium & scandium (as they share similar chemical properties). Figure 1 shows a periodic table with the REEs highlighted.

WHY ON EARTH?

From yttrium based monitors in car fuel tanks, Promethium compound ‘glow-in-the-dark’ emergency signs, and samarium-cobalt magnets used in computer processors and mobile phones, we are currently intertwined with REEs throughout our daily lives, probably without even noticing, a few examples are shown in figure 2.

Your phone might look like a neat shiny box on the outside, but inside, thousands of components whizz and engage with each other to bring you every cute video of a cat playing the piano.

Figure 2: Global use of REEs in 2010 [14]
Figure 2: Global use of REEs in 2010 [14]
Around 60 different metals are used in a modern mobile phone, not just your common conductive copper and gold for wires, but also a host of more obscure elements from neodymium in the miniature phone speaker magnets, to the lanthanum in your crystal clear and scratch resistant screen.

While we might prize and value our phones, they’d be no use without a decent source of clean energy to charge them up and rare earths play a big part in the capture and supply of wind and solar energy too.

RARE ON EARTH?

So, what’s the fuss about? Just dig some more up?

A brief look at REE abundance worldwide shows there’s more of them combined in the earth’s crust than copper [1] and, we’re not panicking about copper? (Or are we?).

Well, the term ‘rare’ might not be suitable for their overall abundance of around 40ppm, but it certainly does apply to their distribution. Mineable sources for REEs are few and far between and their chemistry in geological systems is still not well understood so, this makes finding and accessing these resources difficult. On top of this, the amounts needed are so small (<0.1g/device) and the costs of extracting REEs from their host rocks so high, that mining companies are struggling to get REE projects off the ground outside of China.

Figure 3a: Hybrid satellite image of Bayan Obo, Inner Mongolia [15]
Figure 3a: Hybrid satellite image of Bayan Obo, Inner Mongolia [15]
Figure 3b: Worker carrying REE clays [15]
Figure 3b: Worker carrying REE clays [15]

Figure 3c: Worker processing REE ore [15]
Figure 3c: Worker processing REE ore [15]
No problem, we’ll just use Chinese REEs…

In 2012 an estimated 95% of the world’s supply of REE originated in China, this is not only a geological phenomenon, but also an economic and political one. Although massive resources exist worldwide, notably in the Canada, Turkey, America and Australia [2], China has used its global economic power to fix the market supply and prices, thus undercutting other exploration and extraction projects, making them impossible to finance and operate. While several countries have retained stockpiles (notably the USA) [3], these have been reserved specifically (and controversially) for military use in times of emergency [4].

Several researchers and international institutions (including the United Nations) have suggested that gross environmental and human rights issues are attached to the mass production of REE in China. Beijing University, suggests that a 17.1% increase in average water table pH can be seen around ‘in-situ-leaching’ mines and some 32000 deaths can be attributed to controversial mining methods in the south of China [5]. A 2012 UN report argues further to suggest REE mining is the greatest cause of freshwater biodiversity loss and risk to human life facing modern China [6].

HOW ON EARTH?

Figure 4: Classic REE deposit forming environments [8]
Figure 4: Classic REE deposit forming environments [8]
We all want a phone, but we don’t like child labour and environmental destruction… Let’s see what we can do about this dilemna. We’ve now started to put our heads together in Europe to normalise our industrial supply (see EU-RARE andSOS RARE), with some €1 billion being put aside as part of Horizon 2020 in the EU, to investigate critical resources here at home (including REEs, lithium and many industrial minerals).

This is great news, where shall we start? It’s not all going to be complicated science jargon is it? Unfortunately for us, yes, the money is being used to fund advanced economics projects, geochemical research, field investigations and hi-tech, hi-definition analysis of known REE deposits to help us to find and target more REE resources in Europe. That doesn’t mean that it can’t be shared though, let’s look at what we’ve learned so far and where we’ve already found REEs…

The cartoon in Figure 4 shows all the common geological environments that EU-Rare and SOS-Rare have been investigating. REEs are known to show an affinity for alkaline igneous intrusions and their associated fluids and weathering products so, exploring these is a great way to kick off.

Figure 5: REE bearing Eudialite in Nepheline Syenite from the Norra Kärr igneous complex in Southern Sweden.
Figure 5: REE bearing Eudialite in Nepheline Syenite from the Norra Kärr igneous complex in Southern Sweden.

Magmatic deposits of REEs are normally found within deep crustal peralkaline intrusions that have been either contaminated when melted, or subject to some chemical evolution during cooling. This can cause concentrations of higher field strength elements like Zr, REE, Nb, and Ta in layers or regions of the intrusion

Europe’s biggest alkaline intrusions are found in Greenland (Ilimaussaq), Sweden (Norra Kärr), Portugal (Serra de Monchique) and Romania (Ditrau). These igneous intrusions commonly host pockets of minerals such as eudialyte and monazite which contain REEs, but also radioactive Th, which makes their separation and use as an ore difficult and potentially environmentally risky.

So, with many magmatic ores off the table for their radioactive contents, the most promising new projects for REEs in Europe actually come from supergene (secondary surface formed) deposits associated with the weathering of these intrusions. Deposits such as those in Serra de Monchique in Portugal, where thousands of years of autochthonous weathering have produced deep soil profiles (Figure 7) which preserve the REEs in organic acids and on the surface of clay minerals, but allow Th to be leeched away.

These ‘ion-adsorption type’ deposits (IAD) are responsible for around 40% of the REE mining in Tropical Southern China and are being explored in Madagascar [7] and the rainforests of Brazil. Surprisingly, they were recently discovered, thousands of miles outside of their predicted tropical range, by a team from the University of Brighton (UK) while working in Portugal [8].

These IAD soils can theoretically have their REEs stripped out using weak solutions such as ammonium sulfate or even sea water to separate the REEs from the soils [9]. They are thus highly favorable for their lower environmental impacts, but their grade is normally far lower (by around 10x) than in primary igneous sources and more soil needs to be processed for the same amount of REE. This means that, more often than not, these deposits aren’t enriched enough to be profitable.

Figure 6: A deep REE enriched soil profile near Monchique in Portugal [8]
Figure 6: A deep REE enriched soil profile near Monchique in Portugal [8]

LET’S JUST RECYCLE WHAT WE’VE GOT?

Oh, we wish we could, really! There’s an estimated 15.6 KG of electronic waste per person in Europe alone waiting to be processed. Unfortunately, every single component in a phone uses a unique and complex collection of alloys that need to be processed individually for their REE content and normally, it costs more to smash up a phone and manually pick apart the pieces than to dig more up, it’s partly an economics issue… It’s partly a global supply Vs demand issue which surrounds and complicates all recycling initiatives.

Until recently the global demand for electronic products (and thus, REEs) centered around America, Europe, Australia, Japan and other developed countries and we’d mined just about enough to maintain that demand.

As of 2015 there were more mobile phones being used in India than in the USA, Japan, Germany and the UK combined. Even if we were to achieve an impossible 100% rate of recycling of old devices, we’d still be some 300,000,000 short of supplying REEs for India’s new market alone [10]. This is before we account for Brazil, Russia and other major developing economies, And that’s just for mobile phones! Recycling, while an important addition to our resources, is sadly never going to meet our ever-expanding requirements.

IS THERE A SIMPLE SOLUTION?

To be honest… Not yet, but we’re working on it! From projects investigating the recycling of mining waste [11] to ways of extracting REEs without Th [12], from searching for alternative technologies to tuning the recycling process, there are countless EU and international projects underway as I write. It looks promising, but needs the support of big electronics manufacturers to progress, a commitment from industry to cleaner and more environmentally friendly resources would promote the existing research and save it from stagnating while we burn into forests and pour acid into ancient soils, a bigger commitment from governments to control poorly sourced metals would go even further.

For now, all we can do is keep lobbying industry, demanding cleaner and more ethical products and buying the best we can, keep voicing our concerns for environmental protection and keep pushing the science we’ve already got for all its worth to find a cheapermore sustainable route to the technology we crave!

For more information on REEs see the EU-RARE and SOS RARE websites and keep an eye on their twitter feeds for up to date research and reporting.

REFERENCES

[1] K. H. Wedepohl, “The composition of the continental crust,” Geochimica et Cosmochimica Acta, vol. 59, no. 7, pp. 1217-1232, 1995.
[2] D. Hoatson, D. Jaireth and Y. Miezitis, “The major rare-earth-element deposits of Australia: Geological setting, exploration, and resources,” Geoscience Australia, Canberra, 2011.
[3] M. Humphries, “Rare Earth Elements: The Global Supply Chain,” Congressional Research Service (USA), 2013.
[4] EPA, “Rare earth elements: A review of production, processing, recycling and associated environmental issues; EPA600/R-12/572,” United States Environmental Protection Agency, 2012.
[5] X. Yang, “China’s ion adsorption rare earth re sources, mining consequences and preservation,” Environmental Development, pp. p.131-136., 2013.
[6] D. Petley, “Global patterns of loss of life from landslides,” Geology G33217.1 , 2012.
[7] E. Marquis, M. P. Smith, G. Estrade and K. Goodenough, “Ion adsorption-type REE deposit associated with the Ambohimirahavavy alkaline complex: potential controls on mineralisation,” Applied Earth Science, vol. 126, no. 2, 2017.
[8] L. Hardy, M. P. Smith and B. Nason, “A novel mechanism for the formation of tropically weathered REE ion adsorption deposits,” Applied Earth Science, vol. 126, no. 2, p. 63, 2017.
[9] V. G. Papangelakis and G. Moldoveanu, “Recovery of rare earth elements from clay minerals,” in ERES2014: 1st European Rare Earth Resources Conference, Milos (Greece), 2014.
[10] ITU, “ICT revolution and remaining gaps,” https://www.itu.int/en/ITU-D/Statistics/Documents/facts/ICTFactsFigures2015.pdf, 2015.
[11] E. Deady, E. Mouchos, K. Goodenough, B. Williamson and F. Wall, “Rare earth elements in karst-bauxites: A novel untapped European resource?,” in ERES2014: 1st European Rare Earth Resources Conference, Milos (Greece), 2014.
[12] A. Schreiber, J. Marx, P. Zapp, J. Hake, D. Voßenkaul and B. Friedrich, “Environmental Impacts of Rare Earth Mining and Separation Based on Eudialyte: A New European Way,” Resources, vol. 5, no. 4, 2016.
[13] K. Toeda, “JASRI,” 2017. [Online]. Available: http://www.spring8.or.jp/en/news_publications/research_highlights/no_56/. [Accessed 10 2017].
[14] Canadian Institute of Mining, “Global use of REE,” 2013. [Online]. Available: http://www.cim.org/en/RareEarth/Home/GlobalUseofREEs. [Accessed 10 2017].
[15] Reuters, “RTXU1EC,” 31 10 2010. [Online]. Available: http://pictures.reuters.com/.

Written by Liam Hardy for Spotlight Mining.

We host a variety of articles from a range of sources, our content, while interesting, should not be considered as formal financial advice. Always seek professional guidance and consult a range of sources before investing.

Delrey Metals Sichern Sich Neue Schürfrechte fur Batteriematerialen auf Porcher Island, BC

DELREY METALS SICHERN SICH NEUE SCHÜRFRECHTE FÜR BATTERIEMATERIALIEN AUF PORCHER ISLAND, BC

Liam Hardy – December 2018 – Bayreuth, Germany
Translated by Martin Giger

Die in Vancouver ansässige Delrey Metals (FRA: 1OZ – CSE: DLRY) hat heute Morgen angekündigt, dass sie ihre Tätigkeiten in British Columbia (Kanada) um zwei neue, spannende Objekte erweitern werden.

Seit ihrem Börsendebüt im Oktober ringt Delrey in einem heftig umkämpften Markt darum, wieder Oberwasser zu haben. Zwar brachte die Veräusserung von 7.5 Mio Stammaktien à je 0.20 kanadische Dollar (C$) 1.5 Mio C$ auf, doch bis Donnerstag dem 6. Dezember war die Aktie um 8.3% gefallen und eine Analyse von simplywall.st zieht mit einer aktuellen Überbewertung der Aktie von 5.9% eine eher düstere Prognose.

In einem volatilen Markt mochten Investoren Delrey als junges Unternehmen, das Batteriemetall-Projekte in der Frühphase erkundet, mit gehöriger Skepsis begegnet sein. Ich bin definitive der Meinung, sie sind einen zweiten Blick wert.

Das Team:

Morgan Good (Gründer, Vorsitzender, CEO und Direktor) ist nicht gerade der Inbegriff eines alternden Wall Street Börsencrash-Veteran, mit welchem Marktanalytiker noch immer bevorzugt anzubändeln scheinen, doch wir leben in einem modernen Markt. Der Bergbau findet sich im direkten Konkurrenzkampf um Investoren mit modernen Kryptowährungen und einer florierenden Cannabisindustrie. Mit moderner Technologie wird nach modernen Rohstoffen gesucht. Ich bin der Meinung, da sollte ein frischeres Gesicht auch positive wahrgenommen warden.

Morgan ist seit 15 Jahren im Bergbau-Finanzsektor tätig und damit bestens vertraut mit Explorationsprojekten in Britisch-Kolumbien (BC). Er ist Gründungsmitglied von Patriot Capital sowie amtierender CEO und Direktor der ALQ Gold Corp. (CSE:ALQ), die seit August 2017 rund C$20 Mio an Kapital aufgebracht hat und deren Aktie seit ihrem Börsengang um ein 3,6-Faches angestiegen ist. Unter dem Strich hat Morgan bereits über $40 Mio erfolgreich aufgebracht.

Vorstandskollegen:

Mike Blady ist der amtierende Direktor und CEO von Golden Ridge Resources (TSXV:GLDN), die kürzlich eine neue alkali-porphyrische Gold-Kupferlagerstätte im goldenen Dreieck Südostasiens entdeckt hat. Im Weiteren ist Mike leitender Direktor der GTEC Holdings (TSXV:GTEC).

Leighton Bocking war zuvor Leiter der Unternehmensentwicklung bei Gold Standard Ventures Corp., auch war er in der Unternehmensentwicklung bei Timmins Gold Corp. tätig. Während seiner Zeit dort haben die beiden Berbauunternehmen kumulativ über $100 Mio aufgebracht.

Alastair Brownlow ist der neu einberufene CFO des Unternehmens. Mit ihm hat Delrey einen jungen aber erfahrenen Bergbau-Bilanzprüfer an Bord geholt.

Was Delrey beim Börsengang hatte:

Regional geology surrounding the Delrey Metal’s Sunset copper-cobalt property in BC, Canada
Regional geology surrounding the Delrey Metal’s Sunset copper-cobalt property in BC, Canada

Die Sunset Co-Cu-Lagerstätte ist unmittelbar nördlich von Whistler gelegen, was dem Erschliessungspotential entschieden zugute kommt – zurzeit ist es jedoch nur saisonal erreichbar (ausser man geniesst eine winterliche Langlauftour mit 40 kg Gesteinsproben am Rücken, natürlich!).

Das Lizenzgebiet wurde zuerst in den 1970er-Jahren von Rio Tinto bezogen. Unterkreidezeitliche Vulkanablagerungen der Gambier-Gruppe wurden identifiziert, dieselben Einheiten, in welchen auch die bekannte, hochgradige Britannia Cu-Zn VMS-Mine beherbergt ist. Die Gegend wurde 1991 bebohrt, zudem wurde in früheren Explorationsprojekten Magnetometrie durchgeführt, Oberflächenschürfproben genommen und das Gebiet kartiert.

Auch wenn offiziell zwar noch nichts entdeckt wurde, suchen Delrey nach einer VMS-Lagerstätte ähnlich der nahe gelegenen Britannia-Mine sowie nach gold- und silberführenden metasomatischen Adern, wie sie in den nahe gelegenen Northair oder BrandywineVorkommen angetroffen warden. Historische Daten offenbaren geochemische und geophysische Anomalien. Für die Beurteilung von an diese Anomalien angrenzende Gebiete sind bereits C$ 165’000 bereitgestellt.

In diesem Frühstadium ist Sunset noch nichts Weltbewegendes – doch gerade darin liegt seine Schönheit. Eine grosse Unbekannte in einer verheissungsvollen Geologie, zudem noch gut gelegen. Ich denke, der anfängliche Sprung ins kalte Wasser beim Börsengang wird sich für den stets optimistischen Privatinvestor auszahlen.

Neuzugänge:

Heute Morgen hat Delrey die Aneignung von zwei neuen Schürfrechten bekanntgegeben, die sich auf Porcher Island befindet, im Skeena-Bergbaudistrikt von BC südwestlich der Ortschaft Prince Rupert. Die Objekte sind ganzjährig erreichbar mittels Wasserflugzeug und Helikopter oder per Boot entlang dem Oona-Fluss von Prince Rupert. Im Gebit wird zurzeit intensiv Holz geschlagen, wofür ein Netzwerk von Rückewegen angelegt wurde im Nordwesten und Südosten. Dies eröffnet die Möglichkeit für kosteneffiziente Exploration und Erschliessung.

Geological map showing major units and Delrey Metal’s new claims
Geological map showing major units and Delrey Metal’s new claims

Das Grundstück setzt sich aus sieben Konzessionen zusammen mit einer Gesamtfläche von 3122,16 Ha und kann bei Bedarf in beliebige Richtung erweitert werden. Der nordwestliche Zipfel der Insel, ungefähr 9 km vom Grundstück entfernt, beherbergt die hochgradige Surf Point Goldmine, welche zwischen 1919 und 1939 betrieben wurde aber aufgrund des zweiten Weltkrieges aufgegeben werden musste.

Das Gelände wird von zwei Nord-Süd-laufenden Gabbro-Gängen durchschlagen, welche Eisen-Vanadium-Titan-Vererzungen in beinhalten in der Form von massivem Titanomagnetit .

Massive magnetite from a Skeena, BC quarry, similar to that expected within Delrey Metal’s new license. (image – Researchgate, Malcolm Southwood)
Massive magnetite from a Skeena, BC quarry, similar to that expected within Delrey Metal’s new license. (image – Researchgate, Malcolm Southwood)

Die Gänge wurden auf der Oberfläche kartiert und messen 5,2 km x 1 km beziehungsweise 4 km x 0.6 km. Auf historischen 200 m residuales magnetisches Totalfeld-Karten der Resources Canada Corp. fallen die Gänge zusammen mit starken magnetischen Anomalien. Eine begrenzte Beprobung der Gabbros wurde 1961 von McDougall durchgeführt und ergaben Konzentrat-Konzentrationen von 0.3% bis 1.5% Ti und 0.2% bis 0.5% V (oder 0.34% bis 0.84% V2O5).

In einem Bericht des geologischen Dienstes der vereinigten Staaten (USGS) von 1975 wird die Grösse der Lagerstätte auf Porcher Island als mittel eingeschätzt, mit Erzgehalten von >25% Fe, 2% TiO2 und 0.2% – 0.35% V2O5, das Magnetkonzentrat mit einem Gehalt von 60% Fe, 0.3% -1.5% TiO2 und 0.3% – 0.9% V2O5. Besagter Bericht stützt sich allerdings auf eine begrenzte Oberflächenbeprobung.

Das Grundstück hat gezeitenbegrenzten Seeanstoss und befindet sich weniger als 39 km vom Prince Rupert Tiefseehafen entfernt, der mit einer maximalen Fahrwassertiefe von 35 m internationalen Seeanschluss bereitstellt. Von Prince Rupert ist jeder nordamerikanische Hafen an der Westküste binnen acht Tagen erreichbar, was eine ideale markterschliessung der Mine garantiert.

Government commisioned aeromag survey showing coincident highs with regional geology on Porcher Island, BC, Canada
Government commisioned aeromag survey showing coincident highs with regional geology on Porcher Island, BC, Canada

Dieses Grundstück setzt sich aus vier Konzessionen zusammen, die eine Fläche von 3646,8 Ha umfassen und in mehrere Richtungen erweiterbar ist. Es befindet sich in einem historischen Bergbaugebiet.

Der östliche Teil des Grundstücks wurde 1955 von One Resources Canada Corp. nach Eisenerz exploriert und bebohrt. Zwölf kurze (<50 m) Diamantbohrlöcher mit einer Gesamtlänge von 696 m wurden abgeteuft, um eine per terrestrischer Magnetometrie entdeckten kleinen magnetischen Anomalie zu beproben. Im Projektbericht wurde geschlussfolgert, dass ‘mindestens einige hunderttausend Tonnen magnetitführendes Gestein mit einem Eisenerzgehalt in der Grössenordnung von 35%’ im Gebiet vorkommt (PF671671).

Auf der 200 m residuales magnetisches Totalfeld-Karte der One Resources Canada Corp. ist zu erkennen, dass sich in der Mitte der Star-Claims ein magnetisches Hoch von 5 km x 7 km Grösse befindet. Während früheren Untersuchungen wurde lediglich die östliche Begrenzung dieser Anomalie bebohrt, ein Hinweis darauf, dass ein potentiell signifikant grösseres Vorkommen im Westen des Grundstückes existiert.

Während die historischen Bohrprogramme den Magnetit nicht auf Vanadium analysiert haben ist auf einer regionalen geochemischen Karte des geologischen Dienstes von Britisch-Kolumbien aus dem Jahr 2000 ersichtlich, dass das Gebiet bis zu 148 ppm Vanadium (99% Percentil) sowie 5.06% Eisen in der Schlufffraktion des Bodens beinhaltet. Diese beeindruckenden geochemischen Werte reflektieren die Entwässerung, die die grosse magnetische Anomalie entlang ihrer vielen Seiten flankiert.

Das Star-Grundstück hat das Zeug zu einer bedeutenden Vanadium-Entdeckung mit einer grossen magnetischen Anomalie (5 km x 7 km), das entwässert wird von Wasserläufen mit extrem ungewöhnlichen Vanadium in der Sedimentfracht und einem auf mehrere hunderttausend Tonnen geschätztes Magnetit-Vorkommen am Rand.

Was wir erwarten können

Delrey haben angetönt, dass sie noch ein paar Tricks auf Lager haben. Nebst den neuen Grundstücken und Rechten wird diesen Winter mit dem Erwerb neuer Anteile gerechnet.

Das Team hat erst gerade mit ihrer Explorationstätigkeit vor Ort begonnen und wir hoffen darauf, starke erste Resultate zu sehen nach einem turbulenten Jahr für die Investorenzufriedenheit und Einstiegsprojekte in Kanada.

Die ersten neuen Karten und geologischen Analysen von Porcher werden 2019 erwartet und wenn das Ergebnis stimmt, werden bestimmt Bohrungen folgen.

Was Liam denkt:

‘Ich bin recht begeistert vom Porcher-Projekt, ich persönlich habe eine Schwäche dafür, bei Projektanfang die komplexe Geologie zu enträtseln, vom Mysterium zum klassischen geologischen Modell. Falls Delrey ihre Ergebnisse publiziert haben wir Zugang zu einem wertvollen Datensatz zum Gabbro und zur grünschieferfaziellen Metamorphose auf Porcher Island, was die Exploration erheblich Vorantreiben könnte und uns Geologen auch mit etwas versorgt, worüber wir sabbern können.

Ich werde dafür sorgen, dass das Team uns mit Modellen, Daten und Bildern auf dem Laufenden halten wird.’

Cheers!


This is an original article by Liam Hardy, translated by Martin Giger from the University of Cape Town.

This article was not paid for by any shareholders or employees of Delrey Metals or their subsidiaries. Spotlight Mining are an independent publisher and do not own shares of have financial interest in Delrey Metals or their subsidiaries.

 

Spotlight Mining host a variety of articles from a range of sources, our content, while interesting, should not be considered as formal financial advice. Always seek professional guidance and consult a range of sources before investing.

January podcast and new publications

Hello 2019…

After a wonderful break over the festive period we’re all back to the grind, I hope everybody had a refreshing time away with families and friends.

During the break I had the pleasure of a Skype chat with Canadian Mining Hall of Fame member Rob McEwen. We discussed McEwen Mining’s ongoing expansion into South America and their development in Timmins as well as Rob’s personal interests in stem cells and regenerative medicines… and of course, we dug in for Rob’s 5 year forecast for gold and the mining industry. You can listen to our discussion in this week’s podcast on our SoundCloud Channel:

If you’re planning to pick up a copy of Resource World magazine this February, you’ll find my latest publication featuring an interview with Adrian Rothwell from KORE Mining as I review the geology and resource potential of their Californian gold-oxide projects. I’d say its definitely worth a read, but I am quite biased.

Once again, thanks for stopping by. I look forward to crossing paths with all of you again soon. Have a great day.

Liam

www.SpotlightMining.com

Podcast Episode 2: Featuring Chris Taylor from Great Bear Resources

Podcast Episode 2: Featuring Chris Taylor from Great Bear Resources

This week Liam speaks to CEO and President of Great Bear Resources Chris Taylor about the history and future of their Red Lake gold project in Ontario, Canada.

Join us at our Soundcloud Channel and soon via Spotify and ITunes to hear about awesome emerging projects around the world.

If you can’t listen to the podcast right now, our friend Sara Kurt has kindly gone and transcribed it for you! We hope you enjoy and look forward to crossing paths again soon.

Drilling for gold at the Great Bear (TSXV: GBR) Red Lake Deposit, Ontario

Drilling for gold at the Great Bear (TSXV: GBR) Red Lake Deposit, Ontario

Liam Hardy:         Good morning everybody. Thank you very much for joining us here at the podcast, our second edition of the podcast. I’m Liam Hardy and today, I’m joined by Chris Taylor, the CEO and president of Great Bear resources, who have a high-grade gold project in Red Lake Ontario, how you doing stay Chris?

Chris Taylor:          I’m doing great Liam. Thanks very much.

Liam Hardy:  Your company are looking pretty strong at the moment, share price is booming, could you tell us a bit about yourself and the company?

Chris Taylor:          Well, by background, I’m an exploration geologist, I’ve done a lot of work in advanced stage projects that have gone into production with some of my past staffs from mid-tier producer experience. We’ve got our company Great Bear resources, it’s a Canadian gold focused Explorer with projects in the Red Lake District of Ontario.

Liam Hardy:  Yeah. Which is a really busy district at the moment, there’s a lot of people around you and at Confederation Lake down the road. Can you tell us a bit about the history of that region?

Chris Taylor:          Well, the project that we’ve picked up, it’s called the Dixie property and it’s been the original discovery was back in the 1980’s by a tech resources. So many people will recognize that name, so they discard gold in an area that was not previously known to occur and the reason being the project doesn’t have very much bedrock exposure.

So although we’re finding the same kind of high-grade gold mineralization and the same kind of rocks that you see gold produced in in the rest of the district, it was not found here during the original Gold Rush just because of the lack of exposed bedrock to be able to see the gold and so we followed up on Tech original discovery and lo and behold, we’re finding high-grade gold results that are very shallow, generally, less than a hundred meters is where we’ve explored so far and very similar to other major deposits in that district.

Liam Hardy:  So it sounds pretty good Chris, a lot of mining history and other companies operating in the area, are you looking at the same geology as the historic deposits in the region?

Chris Taylor:          Yeah. Similar geology, similar grades, similar thicknesses, some of the highlight results that we’ve come up with recently both gold wise and geologically would be I will say ten meters of sixteen grams, you know sixteen meters of twenty-six grams, seven meters of sixty-eight grams and about a couple of meters of about a hundred grams and those would all be from different zones that we’ve discovered and geologically.

Yeah, many of the same rock types that hosts gold elsewhere in the district, we have these mafic sequences, these ultramafic units that we’ve recently discovered and the same kind of big regional fold structures in the greenstone belts that localized the gold mineralization for instance at the Maine Red Lake gold mine, which is operated by Gold Corp and it’s produced somewhere in the neighborhood of about twenty million ounces.

Liam Hardy:  Yeah. The greenstone belts, you’re looking in a famous worldwide in West Africa, Australia and all across Canada for producing high quantities of gold but it’s not always easy to pick out, what techniques you use in trying to find your deposit?

Chris Taylor:          Well, mainly, drilling. So there is physical work that we did, there’s historical geophysical data that we inherited and then we did a high-resolution airborne magnetic survey, really for the first time on the property and that showed some very significant regional geological contacts that hosts the gold, some of those are over ten kilometers long as we’ve been drilling along about so far about two and a half, 2.3 kilometers of one of those contacts and we’ve been hitting gold and while all the drilling that we’ve done so far and what we’re discovering is a number of different zones that are controlled by different geological context, they all host high-grade gold mineralization and it’s certainly a pattern that we’re seeing across several kilometers of strike lengths at this point.

Dixie Lake, Red Lake District, skyline

Dixie Lake, Red Lake District, skyline

Liam Hardy:  Yes. So looking at your team, your variability of heavy geology focused, I’ve noticed the whole team has a geology background, do you find that helping you or?

Chris Taylor:          Yeah. We basically put together, if you look at the comprehensive team, it’s even more on the geology and discovery side because you know you have myself who’s the structural geologist and an exploration geologist. I’ve got my partner Bob Singh, he’s an exploration geologist, I think this is his eighteenth year in the Red Lake mining camp, working there and then we’ve got four geologists that previously worked for the main mine there was gold corp, so you know collectively we did the maths the other day and just in Red Lake focused drill experience, we had over a hundred and ten years collectively within the team and that’s really probably your dominant reason why we’re getting such a good discovery, a track record here on the property is because the people that are working on it have seen this before, they’ve seen the same type of gold mineralization, the same type of context that controlled gold, the same alteration features and obviously, the same high-grade gold results at other projects in the district where they’ve spent so many years.

Liam Hardy:  Yeah. It seems to be a good recipe for success to build a team from the geology upwards, not many companies do that these days.

Chris Taylor:          Yeah. Well, it’s a privilege and certainly were privileged to work with good quality people, it’s definitely added a lot of value for our shareholders, they benefit from that experience.

Liam Hardy:  So the company have just raised quite a bit of cash to continue drilling, what do you plan to do with that?

Chris Taylor:          Well, we are embarked on about a thirty thousand meter, a hundred and fifty drill hole program now, so we should be drilling continuously from now through 2019 and that will generate about a hundred and fifty drill holes. So I guess by about this time next year, we’d be looking at about sixty-five to seventy thousand, well, sixty-five, yeah, but that’s sixty-five to seventy thousand meters of drilling in total on the property and probably somewhere in the neighborhood of three hundred and fifty possibly four hundred drill holes completed by that time. So that should give us a good idea of the scope, of the gold bearing system, which really were just scratching the surface on it and the number of gold zones that are that are hosted on the project.

Liam Hardy:  It’s a pretty strong drill season, how is drilling in the region, is the access good?

Chris Taylor:          Oh, yeah, our project Dixie is literally right off the side of the highway or another way to look at it, is that the highway to town, which is the main paved all-season, all-weather highway runs through the northern part of our claims, so I think our drill site now is about two or three kilometers off the road and it’s effectively the project is a big clear-cut, there’s a logging company that’s active in the area, so all the trees are being stripped off and you end up with a bunch of logging roads that give access all over it. So it’s been very convenient and cost-effective to work on as well, so for instance that thirty-thousand-meter program that we’re doing now, we’re anticipating the all-in cost, like drilling staff costs everything else, us saying will probably come to about five to five and a half million dollars. So with our recent financing, I think we’re sitting right now with about fifteen million dollars in the bank. So we should still be probably in the neighborhood of about ten million dollars when we finish the current program on hand, you know by this point next year.

Field sampling across the GBR Dixie gold project in Northern Ontario, Canada

Field sampling across the GBR Dixie gold project in Northern Ontario, Canada

Liam Hardy:  It’s a pretty good cost for a project in Ontario, it can be quite difficult and expensive there sometimes.

Chris Taylor:          Yeah. It’s about a hundred and seventy dollars a meter for everything, so that’s very cost effective, that’s because the drillers live in town, they live in Red Lake and we end up benefiting from that. Now everybody’s happy, they’re home with their families at night and it’s about a fifteen-minute drive from downtown to our drill site.

Liam Hardy:So nobody’s stuck in traffic, nobody’s waiting around.

Chris Taylor:          Absolutely correct.

Liam Hardy:  So you’ve got a strong drill campaign, good contacts in the community, good connections around you, when you finish this campaign, where are you looking to push the project long term?

Chris Taylor:          Well, we’ll have to see how big the gold system really is, I mean obviously, if we keep finding new gold zones, the way we have been, we’re going to need to do more work after that and that’s why we raised more money than we needed for the immediate program, we wanted to have the ability to immediately follow up on new discoveries, you know lately, we’ve generated that kind of three consecutive back to back to back high-grade gold discoveries, the Dixie limb, the Hin stone and the South limb zone and I expect when we start drilling these new targets that we’ve now defined, you know we would expect to find additional zones as well. So long-term plans would be certainly you know over the long term, you would you would like to show really the scope of the system, which I don’t think is understood at this point, we know it’s big but we don’t know how big and then obviously once we determine how many zones we have and the state of the data, like the density of drilling in the future, we’d be looking at a resource construction, we’re just not there yet because it’s too new of a discovery we need to figure out what we’re working with first before we start sinking dense drill grids into all these various targets.

Liam Hardy:  Two new and potentially too big to put a number on it yet?

Chris Taylor:          Yeah. At the moment, it’s a brand new discovery or it’s actually a trio of brand new discoveries, so it’s going to take us some time to figure out how many of these zones that we’re actually dealing with, we just came out for instance with our latest news release with several additional targets over kilometers of strike links. So it’s not feasible to drill that all off in you know at resource level of drilling, you know in a year, there’s just too much of a system there to fully explore within that time and so it’s going to take us, I would imagine at this rate if we drill aggressively, it’ll take us a couple of years to figure out exactly how much we’re dealing with, the benefit to our shareholders is that we’re dealing with a growing system and new gold results that are going to be issued steadily during that time. So with our recent track record, we’d be looking at putting out results every couple weeks or every few weeks, so probably even over the short term here, we would close down the current placement and then we would talk about issuing follow up results as they just continue to come in, It’ll be a steady process.

Visible gold in 2018 hole DHZ-002 at GBR's gold deposit near Dixie Lake

Visible gold in 2018 hole DHZ-002 at GBR’s gold deposit near Dixie Lake

Liam Hardy:  Yeah. It’s a good way to do it long term. So you’ve been on the road for, I think you said about five weeks recently, is that right?

Chris Taylor:          Yeah. I’m continuing to get the message out, I’ve been in a number of different cities and I’ll even be headed to… I think I’m in Switzerland next week, so I’ll be in Zurich for a while.

Liam Hardy:  Yeah. Well, when your next major conferences you’ll be at, if people want to catch up with you?

Chris Taylor:          I think that’s next week, I’ll be in Switzerland, I’m home for a week, I have a series of meetings set up for early November and then I believe I’m in Frankfurt and I’m in London, I’m headed to Belgium after that as well, the week after that. So quite a bit of travel as we introduce the company across good portions of the world here.

Liam Hardy:  I’d say those are the three best places in Europe to get the best beer as well. So you’ve picked well.

Chris Taylor:          Yeah. Thanks very much.

Liam Hardy:  Yeah. So thank you very much for your time Chris, it’s looking good for Great Bear and we look forward to hearing more.

Chris Taylor:          Thanks Liam, appreciate it.

Liam Hardy:  Cheers. Have a great day. Thank you.

So thanks to Chris Taylor CEO of Great Bear resources, if you’d like to know more about Great Bear, you can check out greatbearresources.ca.

I’ve been Liam Hardy reporting for Spotlight Mining, you can catch all of our podcasts at www.soundcloud.com/spotlightmining

If you’d like to hear any more from us, we’re going to be at the mines and money conference in London next month as well as the 121 meeting and Mining Investment London. So you can catch up with our booths there and say hello. We’ll be recording interviews and publishing as much content as we can to keep you up to date with the events there.

Thanks for stopping by and I’m sure we’ll speak again, G’day.


Our intro music this week was provided by Chicago based musician Derek Clegg – Listen to more of his work at www.derekclegg.com

Transcription of the podcast was completed by our friend Sara Kurt. Follow this link if you have anything to be transcribed.


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Spotlight Mining hosts a variety of articles from a range of sources, our content, while interesting, should not be considered as formal financial advice. Always seek professional guidance and consult a range of sources before investing.