Several of the companies on the Highballer list dropped headlines over the past week.
Below is a brief summary of these news events. Right to it…
Prime Mining (PRYM.V) – (PRMNF.OTC) – (04V3.FRA)
On January 12th, Prime Resources announced Phase-1 results from stepout drilling at Noche Buena, one of eight known deposits at their wholly-owned Los Reyes Project in Sinaloa State, Mexico.
Noche Buena Deposit Size Expanding at Los Reyes
These results—13 new core holes of the 24 holes drilled during Phase-1—all encountered potentially economic open-pit-grade mineralization at Noche Buena, the furthest deposit to the southeast along the 2.3 kilometer long Central Structure.
Of the main corridors of mineralization at Los Reyes, the Central Structure is the least explored.
(the resource at this flagship project currently stands at 633,000 ounces of gold and 16,604,000 ounces of silver Indicated PLUS an additional 179,000 ounces gold and 6,831,000 ounces silver Inferred)
Noche Buena stepout drilling highlights:
- Drill hole 21NB-22: 3.16 g/t Au and 74.5 g/t silver Ag over 3.0 meters (2.7 meters estimated true width (etw)); plus 3.49 g/t Au and 82.4 g/t Ag over 1.0 meter (0.9 meters etw) contained within a 26.9 meters (24.3 meters etw) zone grading 0.91 g/t Au and 44.5 g/t Ag;
- Drill hole 21NB-23: 4.75 g/t Au and 109.7 g/t Ag over 3.8 meters (3.8 meters etw) plus 4.83 g/t Au and 250.5 g/t Ag over 3.0 meters (3.0 meters etw) contained within a 19.7 meters (19.7 meters etw) zone grading 1.89 g/t Au and 75.8 g/t Ag (nice hit);
- Drill hole 21NB-21: 2.92 g/t Au and 24.3 g/t Ag over 14.8 meters (12.8 meters etw) plus 1.09 g/t Au and 65.6 g/t Ag over 5.0 meters (4.3 meters etw);
- Drill hole 21NB-17: 4.38 Au and 7.6 gpt Ag over 2.4 meters (2.2 meters etw) within a 13.2 meters (12.0 meters etw) zone grading 1.27 g/t Au and 12.65 g/t Ag.
Noche Buena remains open in both directions along strike and at depth to the northwest and the southeast.
This Jan. 12th press release went on to state that 35 drill holes (9,900 meters) of core and RC drilling have so far been completed as part of its $18 million Phase-2 exploration program that began November 1, 2021.
Phase-2 will include 45 holes (8,665 meters) along the Central Structure, of which 21 holes (4,000 meters) will target Noche Buena.
The Noche Buena portion of the Central Structure has now been tested and mineralization identified along approximately 600 meters of its known 1,000 meter strike length. The structure remains open along strike and at depth both to the northwest and the southeast. Phase 2 drilling is planned to test extensions to the northwest towards San Miguel, where there is strong potential to join the two deposits, and to the southeast where the structure has been traced in surface mapping.
All told, Phase 2 is budgeted to include over 50,000 meters of drilling in approximately 250 drill holes—a campaign that will involve resource expansion and (regional) exploration drilling across this 13,800-hectare property. The drills are expected to turn until late October 2022.
“Currently there are assays pending for 40 drill holes containing over 8,200 sample intervals. The assay backlog was caused by the Christmas break and delays at the assay laboratory that are now being addressed.”
Drilling at Los Reyes resumed on January 5th.
This campaign represents an aggressive push along the resource expansion and exploration curve. There are currently six core rigs and one reverse circulation rig on-site, with an additional core rig expected by month-end.
Daniel Kunz, Prime’s CEO:
“Access constraints and topography meant that the Central Structure historically received much less exploration than Guadalupe and Tahonitas-Zapote. The Central Structure is a very significant 2.3 km-long target that contains 3 known deposits at San Miguel West, San Miguel East and Noche Buena, but has only been explored over approximately 50% of its strike length and mostly to a depth of only 625 meters above sea level (“asl”). This is relatively shallow compared to the productive elevation for mineralization as encountered at Guadalupe and Tahonitas-Zapote. Taken collectively, the Phase 1 Noche Buena results show that the Central Structure needs to be explored along its full strike length for open pit resources”.
A list of all drill hole assays—everything received to date—can be viewed here.
Teuton Resources (TUO.V) – (TEUTF.OTC) – (TFE.FRA)
On January 12th, Teuton reported assays out of Treaty Creek, the Company’s flagship asset located in the prolific Golden Triangle of northwest British Columbia.
Teuton Reports 1.91 g/t Gold Eq. Over 85.4 M in Step-out Hole GS-21-125 and Significantly Extends Gold-Copper Mineralization of the Goldstorm Deposit to the Northeast
Here, Teuton’s JV partner, Tudor Gold (TUD.V), tabled final drill results from a 30,108-meter 2021 drill campaign—a program that targeted resource expansion/definition drilling at the Goldstorm Deposit, exploration drilling at the Calm Before the Storm Zone (CBS), as well as surface and channel sampling at the Eureka Zone.
Included in this press release are the results of three diamond drill holes that were completed at the Goldstorm Deposit along sections 113+00 NE and 118+00 NE, 500 metres apart, as well as the third exploration diamond drill hole at the recently discovered Calm Before the Storm Zone. Results of a continuous surface channel sample line completed at the Eureka Zone are also included.
As highlighted in my maiden Teuton piece a few days back, the Copper Belle-Goldstorm Deposit at Treaty Creek hosts a Measured and Indicated resource of 19.4 million ounces of AuEq and an Inferred resource of 7.9 million ounces of AuEq.
This is a deposit that appears destined to grow, perhaps significantly so.
January 12th drilling and surface sampling highlights:
- Drill hole GS-21-125 intercepted the DS5 domain (refer to the map above), which averaged 0.82 g/t AuEq over 258.0 meters, including 1.91 g/t AuEq over 85.4 meters. The hole ended in gold-copper mineralization as unstable ground conditions prevented the completion of the hole.
- Drill hole GS-21-127, the farthest northeast step-out hole completed to date (approximately 200 meters northeast of GS-21-119), targeted the deep DS5 domain. This hole successfully intersected the top of DS5 and ended in mineralization before being shut down due to poor field conditions. Results include 0.75 g/t AuEq over 46.5 meters and 0.43 g/t AuEq over 70.0 meters, which extended to the end of the hole. This target will be re-drilled in 2022.
- Drill hole GS-21-128 targeted the easterly extension of the CS600 and DS5 domains. The hole intercepted 0.61 g/t AuEq over 43.9 meters within CS600. The hole ended in mineralization as field conditions prevented completion of the hole; the final 17.6 meters averaged 1.31 g/t AuEq. This intersection is currently interpreted to be the upper part of DS5 and plans are to re-drill this target in 2022.
CALM BEFORE THE STORM
- Drill hole CBS-21-03 returned a near-surface interval that graded 0.85 g/t AuEq over 25.5 meters and a second significant interval of mineralization farther down the hole that averaged 0.61 g/t AuEq over 33.15 meters, with an enriched mineralized core of 0.94 g/t AuEq over 10.0 meters.
- CBS-21-03 confirms that gold mineralization is gaining strength westward and to depth.
EUREKA SURFACE SAMPLING
- Channel sample line EK-21-CHN-01 extended the Eureka Zone 300 meters to the north of previous drilling intercepts with a continuous surface sample line returning 0.72 g/t AuEq over 139.0 meters, including 1.01 g/t AuEq over 69.0 meters.
- Plans for 2022 include drilling the area beneath this channel sample line, as well as testing the current model that Eureka may be the eastern extension to surface of the DS-5 domain of the Goldstorm Deposit.
Ken Konkin (P.Geo.), Tudor Gold’s President and CEO:
“We are pleased to have completed the 2021 exploration season on a very positive note, having demonstrated that the Goldstorm Deposit still remains open in all directions and at depth. We have significantly expanded the Goldstorm system to the northwest, north, northeast and southeast, in addition to reporting some of our longest and strongest gold-copper mineralized intercepts that surpassed even the results obtained from last years’ extremely successful drill program. Our primary goal is to define the ultimate limits of gold-copper-silver mineralization of the Goldstorm Deposit so we can determine the final resource estimate. We are committed to increasing our efforts for 2022 to achieve this goal.
Exploration in other areas of the Property demonstrated that the Eureka System continues 300 meters to the north from our well-mineralized exploration drill hole EK-21-01 (Press Release September 27th, 2021) that confirmed the near-surface presence of a large gold target. Other notable achievements of 2021 were the successful expansion of the Perfect Storm System, located two kilometres southwest of Goldstorm, and the discovery of the Calm Before the Storm (CBS) system located two kilometres northeast of the Goldstorm Deposit. The Treaty Creek project has now ballooned with the addition of these three new drill targets that will be explored in tandem with definition drilling of the Goldstorm deposit limits in 2022. Our geological team is currently focusing their efforts over the next few weeks to complete the plans for the proposed 2022 diamond drill program. Leading the geological team is our new Vice President of Resource Development, Ms. Natalie Senger (P.Geo.). It’s very rewarding for me to see the professional development and advancement of such a deserving geoscientist, who I have had the pleasure of working with during my career.”
Dino Cremonese (P. Eng) President of Teuton Resources:
“2021 was another very successful year of exploration at Treaty Creek. As well as achieving one of the longest mineralized drill intersections in the entire Sulphurets region, 0.97 g/t Gold Eq. Over 1,320m in Hole GS-21-113-W2, the Tudor Gold crew also expanded the Perfect Storm and Eureka zones. In addition, they drilled a new gold and silver bearing zone north-east of the Goldstorm called the Calm Before the Storm. Closing off the year was a very significant surface discovery in an area north of the traditional Eureka mineralization which holds much promise as another source of open pit material to complement the bulk-caving mineralization found at depth. Let me take this opportunity to thank Walter Storm, Ken Konkin, Natalie Senger, Sean Pownall and Charlie Mooney of Yellowhead Helicopters for a job well done.”
A detailed list of these results can be viewed via the following link: Plan Map and Cross Sections for the drilling and surface samples reported in this news release
Goldseek Resources (GSK.C) – (GSKKF.OTC) – (4KG.FRA)
On January 12th, Goldseek tabled a Phase-2 drill plan for its flagship Beschefer Project located along the Detour Gold Trend of the prolific Abitibi Greenstone Belt (the property lies within 45 kilometers northeast of the Casa Berardi Mine and 30 kilometers southwest of Wallbridge’s Fenelon Gold Project).
Goldseek Announces 4,000m Drill Program at Beschefer Project
Here, the company announced having secured a drill rig for a 4,000-meter campaign scheduled to commence in early to mid-February (Beschefer is currently in the pre-resource definition stage).
The program is designed to infill and extend historical zones of high-grade mineralization.
Highlights from previous drill campaigns include:
- 55.63 g/t gold over 5.57 meters in hole BE13-038 (including 224 g/t over 1.23 meters);
- 13.07 g/t gold over 8.75 meters in hole B12-014 (including 58.5 g/t over 1.5 meters);
- 3.56 g/t gold over 28.4 meters in hole B14-006 (including 7.42 g/t over 5.5 meters);
- 10.28 g/t gold over 8.00 meters in hole B14-35 (including 86.74 g/t over 0.60 meters);
- 4.92 g/t gold over 28.65 meters in hole BE-21-02 (including 11.39 g/t over 9.1 meters);
- true widths vary between 89% and 99%.
High-grade gold-bearing structures, hosted within a lower grade envelope, highlight the project’s regional potential along known parallel (mineralized) shear zones.
Jon Deluce, President and CEO:
“We are excited to start our winter follow-up drill program on the Beschefer Project, which has demonstrated size and grade potential. We look forward to building on the success of our maiden drill program highlighted by 4.92 g/t gold over 28.65 meters1 (141 Metal Factor), including 11.39 g/t gold over 9.1 meters1 which is the 2nd best intercept on the Property to date. The remainder of our maiden drill program consisted of low-grade with high-width intercepts (Ex. 2.17 g/t gold over 13.2 meters2), demonstrating the Project’s strong continuity and near-resource potential.
We have a catalyst packed 2022 with a goal of drilling 10,000 meters at Beschefer and targeting a maiden resource towards the end of the year.”
As Goldseek continues to methodically explore Beschefer, along with its other highly prospective (early stage) projects within the major gold camps of Ontario and Quebec, the Company is innovating its approach to (geochemical) surface sampling.
CEO Deluce, from a recent Highballer interview:
“The Company continues to consider how to target new discoveries on the Beschefer Project. With minimal drilling outside of the 4 existing gold zones, the Company believes there is the potential for additional parallel zones. The Company plans to implement a combination of geophysics and geochemical analysis to target these new potential discoveries. On the geochemical side, operators on the Detour Gold Trend cannot do much surface Geochem work because of the large amounts of overburden. Other operators working in this environment have succeeded with Sonic drilling, taking till soil and bedrock samples; however, this method is very costly for juniors to implement. Goldseek has designed its’ own process of taking till and outcrop samples off of bedrock at a fraction of the Sonic drilling cost. If it continues to test successfully, this will give the Company an advantage in targeting discoveries at Beschefer and the remainder of its’ grassroots portfolio.”
Goldseek has budgeted approximately 4,000 meters of diamond core drilling for high priority infill and extension targets at its’ Beschefer Project along the Detour Gold Trend. The Company is currently processing the final assays received from its’ maiden drill program and will provide full details on winter drill targets and an updated 3D model of the gold zones in subsequent news releases.
Defense Metals (DEFN.V) – (DFMTF.OTC) – (35D.FRA)
On January 14th, Defense dropped the following headline:
Defense Metals Corp. Acquires 100% of the Wicheeda REE Project
This event seals the deal under an option agreement between Defense and Spectrum Mining Corp. dated November 22, 2018.
Defense has fulfilled all required cash payments, share issuances, and exploration expenditures necessary to exercise said option to acquire all of the issued and outstanding common shares of Spectrum.
At the core of this option agreement lies an REE resource that currently stands at 4,890,000 tonnes averaging 3.02% LREO (Light Rare Earth Oxide) in the Indicated category, and 12,100,000 tonnes averaging 2.90% LREO counted as Inferred..
This 2,008-hectare flagship project, located in the infrastructure-rich mining-friendly region of Prince George, B.C., is known as Wicheeda.
Defense completed the final acquisition payments under the option agreement as follows:
- issued to the shareholders of Spectrum on a pro rata basis, such number of common shares of the Company equal to 49% of the issued and outstanding common shares on a post-issuance basis, and
- paid to the Vendors on a pro rata basis, a cash payment in the aggregate of $100,000.
The final payments under the Option Agreement to acquire Spectrum totaled 78,115,549 common shares of Defense Metals at a deemed price of $0.225 per share and the payment of $100,000 in cash, for final payment consideration of $17,675,999.
Pursuant to a finder’s fee agreement with Mulgravian Ventures Corporation (“MVC”) entered into in connection with the Option Agreement, the Company issued 1,171,733 common shares of the Company to MVC, equal to 1.5% of the number of common shares issued to the Vendors upon the closing of the acquisition of Spectrum. The common shares issued to MVC are subject to a four month hold period in accordance with Canadian securities laws and the policies of the TSX Venture Exchange.
Craig Taylor, CEO of Defense Metals:
“Since entering the option to acquire the exploration stage Wicheeda REE Project in late 2018 Defense Metals has advanced the project through metallurgical flowsheet development, and initial and updated mineral resource estimates. This work has culminated in our recent positive PEA for Wicheeda yielding a pre-tax net present value (NPV@8%) of CAD$760 million1. Defense Metals now owns and controls 100% of the Wicheeda REE Project. With this acquisition, and our PEA, we look forward to continuing to advance this exceptional North American REE asset.”
This just in—a nomination and an appointment dated January 17th:
Defense Metals Corp. Reinforces Leadership Following 100% Acquisition of Wicheeda REE Property
The Company has made the following additions to its management team and BOD, as follows:
Appointment of Dr. Luisa Moreno as President of Defense Metals.
Dr. Luisa Moreno has an impressive resume. She’s a Physics Engineer with a Ph.D. in Materials Science and Mechanics from Imperial College London (United Kingdom). She’s held positions as a Senior Analyst at Toronto-based investment banks and an Investment Research Analyst at a global investment research firm.
Notably, she’s recognized as a leading analyst—a specialist—in rare earths and strategic minerals.
Currently, Dr. Moreno is the Chief Executive Officer of Graphano Energy Ltd. and the Managing Director of Tahuti Global Inc., a company that she founded. As a strategic consultant she has assisted both public and private companies and institutional investors with economic and technical assessments of mineral assets and technologies. She also works with government institutions tasked with mineral development, value addition and supply chain development. Dr. Moreno is also on the board of directors of several companies developing strategic minerals and green technologies.
Defense has also brought on Dr. William Bird to the BOD.
Dr. William H Bird has a unique combination of business credentials and mineral-industry expertise and has a broad experience as officer and independent director for publicly traded mineral-resource companies. For instance, he was the CEO of two publicly traded rare earths companies. He also has a solid academic and research experience. He began his career as a mineralogist with the Anaconda company’s Extractive Metallurgical Research Division, where he worked directly with Anaconda’s worldwide exploration, mine, and metallurgical personnel to solve mineralogical problems. At the University of Colorado, Dr. Bird taught ore mineralogy and microscopy. At Colorado State University, he taught general mineralogy. His research has generally dealt with the mineralogy and ore deposits of precious, base, and minor metals. As a consultant and a company executive, he managed projects involving industrial, ferrous, precious, minor, and base metals. Recently, he has focused on developing low-cost, long-term supplies of the rare-earth elements.
Defense will put these collective skillsets to good use in 2022.
Defense expects an active 2022 on multiple fronts, like all of the companies highlighted above.
CEO Taylor gets the final word in this roundup:
“With the recent completion of a positive and robust PEA, and 100% acquisition of the Wicheeda Project, Defense Metals is entering into a new phase of development, and we are delighted to have the extensive rare earth expertise of Dr. Moreno as President and Dr. Bird as a Director. As President Dr. Moreno’s unique combination of capital markets and strategic minerals specialization will be invaluable as the broader market recognizes the significance of the Wicheeda REE project in the context of North American and global critical minerals space.”
Full disclosure: Teuton Resources, Goldseek Resources and Defense Metals are Highballer clients. The author currently holds Goldseek and Defense shares. The authors views may be biased so please conduct your own due diligence and consult a registered investment advisor before laying your hard earned money down.Disclaimer - Legal Notice
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