Archive for July, 2009

Cloudbreak Resources Increases Size of Financing

Cloudbreak Resources Ltd. has increased the current private placement offering from a maximum of five million units to six million units at a purchase price of 6.5 cents per unit for total gross proceeds of up to $390,000. As previously announced, each unit will continue to comprise one common share and one warrant with each warrant entitling the holder to purchase one common share at a price of 10 cents per share for a period of five years from closing.

The company will also increase the private placement of 15 million flow-through units to 17 million flow-through units at a purchase price of 6.5 cents per flow-through unit for total gross proceeds of up to $1,105,000. Each flow-through unit will continue to comprise one common share issued on a flow-through basis and one warrant entitling the holder to purchase one common share at a price of 10 cents per share for a period of two years from closing.

The moneys from the sale of the units will be used for general working capital and for further development of the company’s Canadian properties. The moneys from the sale of the flow-through units will be used for the company’s exploration activities on its Canadian mineral properties.

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Alix and Cloudbreak Acquire More Land in White Gold District, Yukon

Alix Resources Corp. and Cloudbreak Resources Ltd. have collectively acquired a further 125 claims in the vicinity of Underworld’s White Gold discovery in the Yukon.

Alix and Cloudbreak entered into a joint venture agreement to jointly acquire and perform work programs in the White Gold district. These new claims bring the total claim count to approximately 150 claims, or 3,105 hectares, making this land position one of the largest in the vicinity of Underworld’s White Gold discovery of 103 metres of 3.4 grams per tonne gold.

Terms of the deal are: Alix and Cloudbreak shall issue to the vendor, Blair Naughty, 2.5 million shares and $25,000 from each company, issue a 3-per-cent net smelter return royalty with 1-per-cent purchasable for $1-million at any time plus commit to spend $250,000 in year one.

Alix and Cloudbreak are in the process now of performing a systematic geological and geochemical survey of the initial claim block.

It is the intention of the companies to continue surface exploration programs on all the claims with the goal of beginning a drill program this summer.

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Alix Resources Announces New CFO

Alix Resources Corp. is pleased to welcome Greg Amor, CA, as the company’s new chief financial officer. Mr. Amor brings to the company his substantial experience with junior exploration companies, gained while acting in senior executive positions with a number of TSX Venture Exchange-listed companies. The company will grant 100,000 options exercisable at 10 cents for a period of five years to Mr. Amor.

John Masters, who remains on as secretary, has resigned as CFO and the company thanks him for performing in that capacity.

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Northern Tiger Acquires Additional Properties in White Gold Area Play

Northern Tiger Resources Inc. has acquired through staking of two new 100-per-cent-owned properties, the Korat and Birman properties, near Underworld Resources’ White Gold property, roughly 90 kilometres south of Dawson City, Yukon, Canada. In addition, 14 claims were added contiguous with Northern Tiger’s principal gold property, Sonora Gulch and 42 claims were added to Northern Tiger’s DAD property (prospective for Minto-style copper-gold mineralization).

“We are excited about the exploration activity in the Dawson Range area this season,” says Greg Hayes, president of Northern Tiger Resources. “Our work on Sonora Gulch has established the potential for multiple styles of gold mineralization over large areas, and the exploration results throughout the region are demonstrating the potential of the entire district. Our current drill program at Sonora is on schedule and we look forward to conducting regional exploration on our other properties in the Dawson Range area.”

The Korat property consists of 34 quartz mineral claims (714 hectares) and is approximately 19 kilometres northwest of Underworld’s Golden Saddle zone. The Birman property consists of 24 quartz mineral claims (514 hectares) and is approximately 15 kilometres to the southwest of the Golden Saddle zone. Both blocks cover ground within the same district-scale geological setting as the White Gold property. No major faults or structural breaks are known to occur in the area between the properties and the White Gold discovery. Northern Tiger’s exploration crew carried out preliminary prospecting and soil sampling on the properties to follow up on anomalous antimony stream sediment values identified by government geochemical surveys. Results are pending.

Subject to approval by the TSX Venture Exchange, the company has agreed to issue a total of 100,000 Class A common shares and grant a 1-per-cent net smelter return royalty on each of the properties to an arm’s-length consultant in consideration for services rendered in identifying the target properties. About 0.5 per cent of the net smelter royalty return may be repurchased for $500,000. The common shares have a deemed price of 20 cents per common share, will be subject to a four-month restricted period and will be issued pursuant to exemptions from prospectus and registration requirements.

This news release was reviewed and approved by Carl Schulze, PGeo, qualified person for the Northern Tiger properties.

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Yukon (White) Gold Rush Fever

Richard (Rick) Mills

www.aheadoftheherd.com
                   As a general rule, the most successful man in life is
                             the man who has the best information

White Gold Area Play

Seemingly not a single day goes by without a news release about another company staking claims and citing recent drill results from Underworld Resources UW.v as the reason why. Underworld’s recent exploration success has created renewed interest in Canada’s Yukon Territory and in the market.

The importance of Underworld’s discovery cannot be overstated in the context of Yukon exploration and the markets in general. This kind of good news can excite the market for the entire junior gold exploration sector. Also area plays, where one company makes a discovery, then dozens of other companies rush in to stake all around them, are one of the very foundations of our junior markets.

Underworld’s assays are the most significant gold intercepts ever reported in the White River/Yukon River junction area and very possibly the best new gold discovery in Canada over the last several years. As the story at Underworld’s White Gold project unfolds I believe we can expect exciting times for those investors who get involved with the various companies participating in, what still are, very early days of this developing area play.

Geology and Mineralization

The White Gold District lies within the Tintina Gold Belt (a 200-km-wide, 1,200-km-long arc extending from northern British Columbia  into southwest Alaska) and is underlain by rocks of the Yukon-Tanana geologic terrane. The Tintina Gold Belt includes such large gold deposits as Pogo (3.6 M ozs P & P reserves), Fort Knox (3.8 M ounces P & P reserves, 1.7 M ozs M & I resources), True North, Donlin Creek (29.3 M ozs Au Proven & Probable reserves, 6.0 M ozs Au Measured & Indicated resources) and Shotgun.

No one has yet defined a geological model for the White Gold occurrences because the geology of the Underworld discovery is different than other discoveries in the Tintina gold belt. This could be significant because it might mean broad areas that had seen scant attention during past exploration efforts could now become the focus of intensive work programs that have a very real potential for success.

The Underworld discovery properties host multiple styles of gold mineralization including: quartz veins, hydrothermal breccias and disseminated sulphide targets indicated by widespread soil geochemical anomalies. The dominant mineralization at Golden Saddle is quartz, albite and carbonate breccias with low volumes of disseminated pyrite. At the Arc Zone mineralization is characterized by breccias with a matrix of sulphides including pyrite and arsenopyrite. Property basement geology consists of five stacked thrust sheets of lower to middle-amphibolite facies Yukon-Tanana schist and gneiss.

There is some consensus that mineralization is probably intrusion related due to elevated Molybdenum numbers and the hydrothermal alteration but no direct connection to an intrusion has been made so far. There is quartz in veins, stockworks and breccias as well as sulphides in what appears to be a linear moderately dipping structure. More drilling and study is needed to develop a geological model of the White Gold discovery.

Area Play

Located in a new emerging gold province in the Yukon Territory Canada, the White Gold area play has the potential to go for several years as field crews are mobilized to the Yukon and news flow will be constant from almost all the companies involved.

Underworld’s discovery has sparked a land rush, there are an increasing number of savvy explorers and market players staking whatever land they can get surrounding the discovery area. A select few companies will be buy and hold for drill results and many others will present trading opportunities.

Given very legitimate, and increasing daily, concerns about growing country risk this is an extremely timely article about a truly exciting gold area play. Canada’s Yukon Territory is one of the most geologically prospective and pro-mining jurisdictions in the world today.

All the elements of a new area play are here:
1) A spectacular new discovery, with new geology or a twist on old geology
2) A jurisdiction with safe and reasonable tenure.
3) An area amenable to mineral exploration and development.

The White Gold Area Play junior players are gathering for what could be one of Canada’s most important gold discoveries. There is huge upside potential in any of these juniors if they make another discovery. One drill hole could send their (and their neighbors) share price soaring. And if there is a new geological model for UW’s discovery this would open a whole new chapter in Tintina Gold Belt exploration. In alphabetical order (after Underworld) here are a few companies that I found very interesting and have singled out. Below these companies is an extensive, but likely not exhaustive, list of the White Gold Area Play juniors.

Underworld Resources (UW.v) –  The company who started it all. Low share count, 16,900 hectares of property in the area of their discovery and approximately $16,000,000 in their treasury.

Cariboo Rose (CRB.v)  – Has the 4,800 hectare Canadian Creek property 50 km southeast of White Gold. It is optioned out 60:40 with CRB holding 40%. The property has an untested soil gold-arsenic anomaly similar to White Gold. Details of this summer’s exploration program are pending. CRB is part of the Eastfield Group and follows the prospect generator model.

Kaminak Gold (KAM.v) – Has three properties totaling 7,680 hectares 27 and 8 km southeast of UW’s White Gold property. KAM was the first into the area and have announced an aggressive program totaling at least $500,000 for this year. KAM is part of the Discovery Group and follows the prospect generator model.

Northern Tiger (NTR.v) – Seven Properties totaling 5,244 hectares 65 km southeast of White Gold, Sonora Gulch is their flagship property.  Capstone CS.t, owner of the Minto mine, retains back-in rights to acquire a 65% interest in any of Northern Tiger’s projects located within a 50 km radius of the Minto Mine that are found to have mineralization amenable to processing in existing Minto Mine facilities. A $1-million dollar program is budgeted for this summer. Capstone owns 13.5% of the issued and outstanding shares of Northern Tiger.

Valley High Ventures (VHV.v) –Valley High acquired the 3,900 hectare Flume property, 30km northwest of UW’s White Gold, from Phelps Dodge. It is more advanced than most of the properties optioned by other area players and has had extensive soil sampling done.

Area Play Portfolio
UW.v      PEX.v
ALR.v     CDB.v 
MPS.v    NTR.v
HAO.v    AIX.v
MCI.v     HMI.v
NCM.v    SQA.v
ABR.v     NET.v
VHV.v     ALN.v
WER.v    SQI.v
ALN.v     URA.v
CRB.v     KAM.v
ATC.v     ADG.v

Canada’s Yukon Territory has a stable geopolitical environment and a tremendous wealth of mineralization. History has proven time and time again that junior exploration stocks can write a very exciting discovery story and reward investors with multiple returns on their capital. It is still very early days in the White Gold Area Play and the greatest rewards lie ahead of us.
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If you’re interested in the junior resource market and would like to learn more please come and visit us at.
http://www.aheadoftheherd.com/
 
Richard (Rick) Mills
www.aheadoftheherd.com
rick@aheadoftheherd.com

Bio – Richard is host of www.aheadoftheherd.com and invests in the junior resource sector. His articles have been published on over 60 websites including – Wall Street Journal, 321Gold, Kitco, USAToday, Safehaven, The Gold/Energy Reports, Gold-Eagle and Financial Sense.

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Pacific Ridge Does Rollback and Finances

Further to Pacific Ridge Exploration Ltd.’s news release of July 13, 2009, the company has proceeded with the 1:4 consolidation of its issued common shares without a change of name. Effective at the opening of the market on July 24, 2009, the company’s shares will trade on a consolidated basis under the symbol PEX (with new Cusip No. 694798208). Letters of transmittal will be forthcoming.

The company also announced that it is proposing to sell by way of non-brokered private placements up to 2.5 million flow-through shares to Canadian resident investors, each flow-though share priced at 20 cents to raise gross proceeds of $450,000, and up to 2.5 million units at a price of 20 cents per unit to raise gross proceeds of $450,000. Each unit consists of one common share and one-half of a transferable share purchase warrant, each whole warrant entitling the holder to purchase one common share at a price of 25 cents per share for 12 months.

The company will use the gross proceeds from the sale of the flow-through shares for Canadian exploration expenses (CEE), within the meaning of the Income Tax Act (Canada), with the company using its best efforts to ensure that such CEE qualify as a flow-through mining expenditure for purposes of the Income Tax Act (Canada), related to the exploration of the company’s mineral exploration projects located in Yukon, Canada. The company expects to renounce such CEE with an effective date of Dec. 31, 2009. The company will use the gross proceeds from the sale of the units for general working capital purposes and development of the company’s mineral property portfolio.

In connection with the private placements, the company is proposing to pay finders’ fees in cash (6 per cent) or shares equal in number to 6 per cent of the number of flow-through shares and units purchased by investors that may be introduced to the company by finders.

The private placements and payment of finders’ fees are subject to regulatory approval.

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Cloudbreak Announces Financing

Cloudbreak Resources is planning to proceed with a non-brokered private placement of up to five million units at a purchase price of 6.5 cents per unit for proceeds of up to $325,000. Each unit shall consist of one non-flow-through common share and one warrant with each warrant entitling the holder to purchase one common shares at a price of 10 cents per share for a period of five years from closing. The company also wishes to announce a non-brokered private placement of up to 15 million flow-through units at a purchase price of 6.5 cents per flow-through unit for proceeds of up to $975,000. Each flow through unit shall consist of one common share issued on a flow-through basis and one warrant entitling the holder to purchase one common share at a price of 10 cents per share for a period of two years from closing. The funds from the sale of units will be used for general working capital and for further development of the company’s Canadian properties. The funds from the sale of flow through units will be used for the company’s exploration activities on its Canadian mineral properties. Finders fees will be payable within the TSX Venture Exchange guidelines. This transaction is subject to the approval of the TSX-V.

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Silver Quest Acquires the Boulevard Property, Yukon

Silver Quest Resources is pleased to announce that it has entered into an agreement with Rimfire Minerals and Northgate Minerals to acquire a 100% interest in the Boulevard property located in the Whitehorse mining district, Yukon.

Pursuant to the Agreement, the Company can acquire a 100% interest in the Property by making staged cash payments totaling $200,000 ($40,000 upon regulatory acceptance), the issuance of an aggregate of 1,000,000 shares (200,000 upon regulatory acceptance) and work commitments of $3,000,000 ($200,000 in the first year) over a five year period. The Vendors retain a 2% net smelter royalty (“NSR”) on the property, with the Company having the right to buyback 0.5% of the NSR for $750,000. In addition, should the Company complete a National Instrument 43101 compliant resource estimate on the Property in excess of 1,000,000 ounces of gold in an indicated category, the Company will be required to make a one-time bonus payment of an additional 1,000,000 shares of its capital stock to the Vendors.

Under the terms of the Agreement, Silver Quest will also purchase from the Vendors proprietary data pertaining to soil, silt and rock sampling completed in areas around or near the Property. If the Company acquires open ground by staking within these defined areas, it will be required to issue additional common shares, up to a maximum of 500,000, and the additional property, if any, will be further subject to a 2% NSR in favor of the Vendors. The Company will be entitled to buyback 1% of the NSR for $1,000,000.

The Boulevard property comprises 238 contiguous claims and was the site of a significant new gold discovery by the Vendors in 2008. The property is located approximately 135 kilometres south of Dawson City, Yukon and approximately 35 kilometres due south of the newly discovered Golden Saddle zone of Underworld Resources Inc. The initial Boulevard area was selected from a much larger regional compilation and reconnaissance silt sampling program by the Vendors that led to the identification of anomalous gold and pathfinder elements in creeks. Detailed soil sampling in 2007 outlined the multielement geochemical anomaly that was the focus of a 2008 trenching program.

Gold mineralization was discovered in the first of three trenches designed to investigate portions of the 2.0kilometreby0.4-kilometre arsenicantimonygold soil geochemical anomaly in an area of sparse outcrop. The discovery trench TRV0801, returned 7.04 grams per tonne (g/t) gold over 6.0 metres. One hundred metres southeast, trench TRBV0802 returned 6.43 g/t gold over 2.0 metres. A third trench located 200 metres northwest of trench TRBV0801 appears to have been located off trend.

The Vendors subsequently completed an initial limited diamond drilling program, comprising seven short holes (524.9 metres). Gold mineralization was encountered in five of seven holes (totaling 524.9 metres), with hole BV0803 returning the best intersection of 0.9 g/t gold over 18 metres, including 1.9 g/t gold over 3.5 metres, approximately 45 metres down dip from trench TRV0801. Two holes tested beneath a second mineralized trench (TRV0802), returned 0.8 g/t gold over 4.2 metres and 0.5 g/t gold over 5.5 metres at approximately 20 and 30 metres down dip respectively. Two additional holes targeted anomalous arsenic-gold-antimony geochemistry located 220 metres and 1,110 metres along trend from the discovery area. Drill hole BV0807 returned 1.0 g/t gold over 3.3 metres in a subtle style of mineralization not observed in previous drill holes or trenches.

Gold mineralization is hosted in strongly sericite plus/minus clayaltered schists with disseminated pyrite, arsenopyrite and stibnite. Sulphide mineralization is finely disseminated in the wall rock of quartz vein arrays or occurs as massive sulphide veins within the arrays. Mineralizationhosting quartz vein arrays follow regional northwesterly structures along major contacts between lithological packages.

Silver Quest president, Robert Weicker indicates; “Through a change of focus and a merger of companies, both Vendors’ interests in the Boulevard property, have become available to the Company, which represent an exciting opportunity to expand on the 2008 gold discovery in this emerging exploration area.” To date, drilling and trenching have focused on a relatively small portion of a large multielement geochemical anomaly, resulting in the discovery of buried gold mineralization, with numerous other targets to be trenched and drilled tested.

The above scientific and technical information has previously been reported by Rimfire Minerals Corp., and reviewed by their qualified person Mark Baknes, MSc, PGeo, VP, exploration, a qualified person for the purpose of National Instrument 43101. Robert Weicker, P. Geo., is the qualified person as defined by National Instrument 43101 for Silver Quest resources Ltd., and has verified and reviewed the inclusion of the scientific and technical information in this release. A summer 2009 exploration program will include geological mapping, geochemistry and trenching, directed at the definition of further drill targets.

The agreements are subject to regulatory acceptance and all securities issued pursuant to the agreements will be subject to a four month hold period trading restriction from the date of issuance.

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Stina Acquires the Option to Earn 100% in Dime Property from Ryanwood

Stina Resources is pleased to announce that it has entered into an option agreement with Ryanwood Exploration to acquire a second claim group in the Dawson Mining District, Yukon Territory. Pursuant to the agreement REI has agreed to grant the Company an option to purchase a 100% beneficial interest in 128 claims referred to as the Dime Property (covering an area of 25 square kilometers or 6,400 acres), subject to a 2% net smelter interest in favor of REI (The Company has the option to purchase one half of the NSR for a payment of two million dollars). The Option Agreement is subject to the approval of the TSX Venture Exchange.

Pursuant to the Option Agreement, to exercise the option the company must:
i) Pay to REI:
a. $125,000 within fifteen days after the approval date of the Option Agreement by the TSX Venture Exchange;
b. $125,000 on or before June 26, 2010;
c. $100,000 on or before June 26, 2011;
d. $100,000 on or before June 26, 2012;
e. $150,000 on or before June 26, 2013;
ii) Issue and deliver to REI:
a. 250,000 common shares of the Company within five days after the approval date of the Option Agreement by
the TSX Venture Exchange;
b. 200,000 common shares of the Company on or before June 26, 2010;
c. 300,000 common shares of the Company on or before June 26, 2011;
d. 300,000 common shares of the Company on or before June 26, 2012;
e. 250,000 common shares of the Company on or before June 26, 2013;
iii) Incur Expenditures:
a. in the amount of $100,000 on or before November 15, 2009;
b. in the additional amount of $250,000 on or before November 15, 2010;
c. in the additional amount of $500,000 on or before November 15, 2011;
d. in the additional amount of $750,000 on or before November 15, 2012;

The Dime Property is located 42 kilometers north west of Underworld’s White Gold Project and covers a well known placer gold creek called Ten Mile. Ten Mile creek has produced coarse placer gold since the turn of the century and the placer deposits are believed to be locally derived. In 1998 Teck Corp. staked the ground surrounding two placer gold districts in the Dawson area. One was the area now covered by Underworld’s White Gold Property and the second one was a claim package in the Ten Mile Creek area. Teck worked on both properties for two or three seasons and successfully identified several promising targets however, the Company changed its focus in 2000 and dropped all their gold exploration efforts in the Dawson area. Shawn Ryan, a local prospector from Dawson City (and the principal of REI), understood the significance of Teck regional exploration work and staked the Dime Claims to cover a large co-incident gold and arsenic soil anomaly that was never followed up. Teck’s data shows that there is a broad anomalous zone up to 750 meters wide that and 1,200 meters in length and the anomaly appears to be open along strike within the Dime Claims.

The Company has retained an independent geologist to confirm the results reported by Teck and propose an exploration program to fast track the evaluation of the target area. Mining regulations in the Yukon Territory permit small scale, fast track exploration work including preliminary drill testing of targets like the gold-arsenic soil anomaly on the Dime Claims.

There has been insufficient exploration to define a Mineral Resource on the Dime Property, and it is uncertain as to whether, or not, further
exploration will result in the discovery of a Mineral Resource on the property. Carl Von Einsiedel, P. Geo, Inc. is a designated Qualified Person for the Company and was responsible for review of this news release.

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Ashburton Ventures Commences Work Program in the Yukon; Financing

Ashburton Ventures has commenced field work on its holdings in the Yukon, adjacent to Underworld Resources White Gold discovery. A geologic mapping and geochemical soil sampling crew moved into the properties over this past weekend to begin work on the first phase of exploration of the area.

Ashburton claims are immediately adjacent to the claims controlled by Underworld and approximately 10 kilometres north and slightly east of Golden Saddle. Analysis of the published regional geologic mapping suggests that both areas are hosted by similarly aged metamorphic rocks to those at the Golden Saddle discovery.

Work on the Ashburton ground is being directed by David Hedderly-Smith, PhD, PG, who is accompanying the crew in the field. He has done work in similarly aged rocks in east-central Alaska, 100 kilometres to the northwest, off and on since the 1970s.  Dr. Hedderly-Smith, a qualified person as defined by N.I. 43-101, has approved the information in this press release.

The company also announces it has arranged a non-brokered private placement of up to five million units at a price of 10 cents per unit for gross proceeds of up to $500,000. Each unit consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one additional share at a price of 12 cents per share for a period of 18 months from the date of issuance. A finder’s fee may be payable on each private placement of up to 10 per cent cash and up to 10 per cent share purchase B warrants. Each B warrant will entitle the holder to purchase one common share for 10 cents per share for a period of one year.

The private placement is subject to the acceptance for filing by the TSX Venture Exchange. The proceeds from the private placement will be used towards work programs and for general working capital.

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