Friday, October 18, 2019

RNX – Central Due Diligence

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  • #1647
    RMR
    Keymaster

    Talk about RNC Minerals Extended DD

    #2086
    DD_KING
    Participant

    In the November 14th 2018 RNC Investor Presentation http://www.rncminerals.com/presentations it is written: «Potential combined strike length of 4 km Plus additional 3 km of down dip extension not explored Total 7 km. [..] Significant infrastructure in place 5+ km under ground ramp system. » Infrastructure is perhaps greater in length: article on Beta Hunt on Goldfields web site, New gold resurrects Beta Hunt – Western Australian, July 11th 2016, some relatively unknown highlights are spectacular:
    -Fletcher zone repeat of Western Flanks and A zone;
    -BH: Potentially a 40-year mine;
    -BH: Historically Western Mining Corporation found more than 200 drill holes with gold hits of 1m at 15g/t or better;
    -Red Hill, only 500m away produced 40,000oz at 20g/t between 1897 and 1907;
    -The underground decline at Beta Hunt stretches 8km to the bottom of the mine, 900m vertical below the surface;
    -To replicate the underground development would cost $300 million to $500 million.
    «New gold resurrects Beta Hunt – Western Australian
    Monday, 11 July 2016
    The discovery of a third major gold zone has given the historic Beta Hunt mine near Kambalda a new lease of life, nearly 50 years since it opened as a nickel mine.
    Private Australian company Salt Lake Mining resurrected Beta Hunt two years ago and it is now in the hands of Canada’s Royal Nickel Corporation after they completed a $C11.2 million cash-and-scrip takeover last month.
    The key was Salt Lake negotiating gold rights with South Africa’s Gold Fields, via an undisclosed royalty, which is looking like a master stroke amid this year’s gold price rally.
    Salt Lake’s business development manager Steve Devlin, a former St Ives geologist, said diamond drilling had intersected two distinct gold lodes containing more than 24m of mineralisation in excess of 2g/t.
    The Fletcher shear zone, as it has been named, was discovered within 300m of existing workings with the help of the State Government’s co-funded drilling campaign, which bankrolled an 858m hole to the tune of $116,000.
    Mr Devlin said the results “matched our theory perfectly”, proving the Fletcher zone is a repeat structure of the high-grade Western Flanks and A zone at Beta Hunt.
    “This is potentially a 40-year mine … it mirrors (the same area as) Beta Hunt,” he said. “It’s going to take time and money to explore but we’ve already pieced together the geology. Our hope is we’ve found a whole new Beta Hunt mine.”
    The optimism is being driven by a review of historical data, mostly drilling completed by Western Mining Corporation’s nickel division, which found more than 200 drill holes with gold hits of 1m at 15g/t or better.
    Beta Hunt opened as a nickel mine in 1973, barely 1km from the Silver Lake shaft that was Australia’s first nickel sulphide mine and launched the Kambalda nickel boom after its discovery in 1966.
    Even closer to Beta Hunt is Red Hill, only 500m away, the historic gold mine on which the original town was founded and produced 40,000oz at 20g/t between 1897 and 1907.
    Beta Hunt is also along strike from Gold Fields’ 1Moz Invincible discovery, considered one of the best finds in WA in years.
    The underground decline at Beta Hunt stretches 8km to the bottom of the mine, 900m vertical below the surface.
    To replicate the underground development would cost $300 million to $500 million.
    Beta Hunt general manager Chris Otto said production in the Western Flanks gold zone was due to begin in September. »
    http://www.goldfields.com/news_article.php?articleID=3626

    #2087
    DD_KING
    Participant

    I transcribed the revealing RNC Minerals (TSX:RNX) Mining Spotlight – Mark Selby,
    International Mining and Resources Conference, posted February 5th 2019 here is an excerpt, the highlights:

    -The model works;
    -Potential is massive: shears from 1 km to 1.5 km deep at least;
    -Conservative 3 to 4 million oz in small area;
    -In the FDV area, average grade pulled so far is about 150 ounces per ton or 4500 gr. per ton;
    -Below shear structures, Selby is looking forward to drilling lower down in those shear structures.

    «This is the model we put this in our data room, we had this asset for sale, fortunately the sale did not go through.
    Basically, why it is here, this sediment structure has iron sulfides, the fluids coming up to the shear hit
    the iron sulfides, the gold drops and the gold ends up in these extensional veins coming out away from
    the shear zone. This gives us tens of meters of potential interaction between that sediment layer and
    the shear zone. So, what was nice, this was model at the end of June and when we went into that face
    in September you see very strong visual confirmation that the model works. So, we are in the shear
    you have got a sediment sitting in the middle of it and coming off the end are these extensional veins
    loaded with gold. So that is where these nice chunks of rock come from. That was a piece of solid gold
    that had to be taken out of the face with metal snips because you can’t break pure gold so it had to be
    cut out of the face to get going and on the right there again you can see these extensional veins
    just loaded up with gold. We have mapped out the sediment sitting in the shear for over 500 metres
    we have one drill now going and we are going to be working along that shear structure to try and
    find more high grade material. We went back in close to where to where that stope was and mapped there
    and again, this extensional vein loaded up with gold was sitting right where it was supposed to be,
    again, another confirmation that the model works and that the sediment generates high grade gold.

    The potential for the mine is massive as I said each of these shears runs for several kilometres,
    we think they can go from 1 km to 1.5 km deep at least [..] intersection area of where these
    sediments are sitting in the shear, that can be projected back along each of those shears
    for several kilometres and so we think it opens up 3 to 4 million tons at grade wise is TBD.
    The average grade of what we’ve pulled so far is about 150 ounces per ton or 4500 gr. per ton
    So even if we get 1% of that you are looking at 3 to 4 million oz just in that small area.
    The other part our team is very excited about is to drill beneath that sediment structure
    To see what the average grade is. Fundamentally to get this much gold into one little
    rock, you either have to have fluids with a lot of gold, a lot of fluids or both and so we’ve got
    this on multiple shears. We can’t wait to drilling lower down in those shear structures to
    see what the base grade is going to look like. Stay tuned, the drilling is coming and
    hopefully we’ll be back next year with even more exciting samples. Thank you. »

    https://www.youtube.com/watch?v=thI2ltouE20+

    #2094
    lexcon
    Moderator

    Pierre, that is an interesting comment you found from the older presentation. Mark Selby talks about up to 7km of extension.

    That fits into a theory I have been working on. The attached graphic is a layout of the B-H mine I found in the PEA, and I added in purple the area I believe represents where the Playa Shear may enter the B-H mine area. That total length would be close to 7km from the north end of the mine to the south end.

    I think there is lots more exploration potential for years to come.“>

    • This reply was modified 7 months, 1 week ago by  lexcon.
    #2216
    DD_KING
    Participant

    Best Drill Interceptions In The Metals Mining Sector For The Week Ended March 3rd, 2019 on Seeking Alpha by Gold Panda March 7th 2019:
    https://seekingalpha.com/article/4247072-best-drill-interceptions-metals-mining-sector-week-ended-march-3-2019?dr=1
    «1) Beta Hunt gold mine in Australia
    On 25 February, RNC Minerals (OTCQX:RNKLF) announced that it has intersected 4.87m @ 395.9g/t Au from 47m in hole WFN-063 at its Beta Hunt gold mine, which is equal to 1,928(AuEq.)m.
    This hole is located just eight meters away from hole WFN-029, which intersected 7,621g/t Au over 0.22m and RNC said that this drill result reinforces its theory that the newly discovered sedimentary layer carries the potential for multiple, new, high grade discoveries.
    Beta Hunt is a marginal mine which RNC had been trying to sell since April but then in September a miracle happened – the company extracted 9,250 ounces of gold from a 130-tonne cut of rock about 500 meters underground at the mine. RNC found a 95-kilogram chunk that contained 2,400 ounces of gold and a second 62-kilogram rock which contained 1,620 ounces.
    Following the historic Father’s Day Vein discovery, RNC is fully-funded and has embarked on a 40,000-meter drill program at Beta Hunt:
    RNC was recently covered by geologist and SA contributor Darp Research here. I also have an interview with him, which is available in my Marketplace Service. »

    #2217
    DD_KING
    Participant

    Beta Hunt of RNX (RNC Minerals), potential takeover?
    On BNN call January 9th 2019, Dennis da Silva, managing director and senior portfolio manager at Middlefield Capital Corporation, discussed Royal Nickel: «I believe everybody that buys this thing or owns the stock currently is looking for a takeover». If drilling, resource and production results are significant at Beta Hunt Mine, development growth can follow many paths, here are some:
    -Takeover;
    -Organic growth;
    -Merger;
    -Joint Venture.
    -Takeover: Beta Hunt has possible suitors as Northern Star Resources and Kirkland Lake Gold have visited Beta Hunt (said to @Mikeymike426). Goldfields is likely to have a vested interest as they own BH neighbour St Ives Mine and « the mining tenements on which the Beta Hunt Mine is located are held by Gold Fields Limited. Also, from the Kitco article Gold’s 2019 High Of $1,300 To Trigger A Year Of Consolidation In Mining, BMO said: «We believe consolidation will be the industry trend for 2019. The most popular of which will be the nascent trend of producers straddling the Pacific, » the report noted.
    With a «tepid gold price environment, » new explorations are no longer a priority for companies, which causes a global decline in larger producer output, the analysts pointed out.
    «In order to stem this tide, it seems logical that the larger producers would deploy some of their now-improved balance sheets to acquire development assets or promising smaller producers that have run into capital constraints, » they said.
    BMO’s list of possible mining companies looking to acquire includes Evolution Mining, Northern Star, Kirkland Lake, and Saracen. On the other hand, potential acquisition targets in 2019 are Atlantic Gold, TMAC Resources, Wesdome, Pretium, and New Gold.
    «When we assume an all-stock deal with a 30% premium, most acquirers can transact accretively on most targets, » BMO said.
    https://www.kitco.com/news/2018-12-17/Gold-s-2019-High-Of-1-300-To-Trigger-A-Year-Of-Consolidation-In-Mining-BMO.html
    From Investors Need to Understand Basic Geology by Chris Wilson, president of Exploration Alliance, a niche consulting group: «We have to find 80 million ounces (Moz) of gold a year just to replace what is being mined. That is equivalent to the whole of the production from the Carlin Trend. Clearly, any company with a significant discovery will be extremely valuable. That value will grow exponentially moving forward because new discoveries are getting harder to find. The value most likely will be unlocked by the major companies buying the juniors out.
    It is a big leap for a junior trying to be a miner. When the major companies are mining successfully, but not exploring successfully, acquisitions have to become part of the future. The trick will be finding juniors that have a commodity and a deposit style that are attractive to the majors.
    There are probably 3,000 junior explorers on the Toronto, Australian and London stock exchanges. So, you have to do your homework. First, you discount the 20% that have managements with a reputation for pumping and dumping or that lack technical prowess. Next, you eliminate companies working in countries you do not like for reasons of geopolitical risk.
    With a little bit of research, you can see where mines are being built successfully and where potentially good mines are not being built. For example, take Gabriel Resources Ltd.’s (GBU:TSX) Rosia Montana mine in Romania. This mine has been in existence since Roman times. It is a 10 Moz deposit that would make a difference to the region. It would remediate the legacy of 2,000 years of mining history. But, it has been shut down by popular vote and sentiment on the Internet.
    Once you discard management and geopolitical risk, you have 1,500 or 1,000 names left. Next, you have to look at deposit style. Irrespective of grade, major companies do not buy small vein deposits with often complex and discontinuous ore shoots. Such deposits will always remain the remit of Junior explorers who may struggle to stack together resources or commercialize production. Neither do major companies want small copper mines with difficult metallurgy. It may take $4 billion to put a big copper porphyry into production. As an investor, you have to target companies with the potential of finding a deposit in the commodity of choice, probably copper, silver or gold, that has the chance to get the attention of the majors.
    Of course, you want to look at the number of shares a company has out there and how much cash it has in the bank. If a company is going to have to raise money in the near term, that will be dilutive and something you want to steer away from.
    You can go on to the System of Electronic Disclosure by Insiders (SEDI) to see if management has been selling their shares and have a look at the stock curve. If it is a typical up and down parabolic curve, it probably does that for a reason. Juniors with good assets tend not to have that parabolic curve up and down. They may have come off 20% or even 50%, but they are holding steady. What percentage of the shares is held with management? Put that into the equation.
    By now, the list of 3,000 companies is probably down to about 100, and that is a manageable number of companies to do your due diligence on.
    The last thing I would say is go and talk to a geologist. Not necessarily the company geologist, who will sell you any story the company wants. If you are going to invest in this commodity and you do not understand geology, you need to find a geologist that can help you. [..] Gold is a finite resource. You’ve got to find 80 Moz a year to be ahead of current annual production. So, from a supply and demand perspective, each year we’re spending more in exploration yet finding less. All things considered, that means that good discoveries will be increasingly valuable. [..] Then you go to the other end of the spectrum to great mining jurisdictions where investments are safe: Canada, Australia, Peru and Chile to name a few. But, those countries have been through several cycles of exploration over the last 100 years, which means it is getting harder to find deposits there. »
    https://www.streetwisereports.com/article/2012/06/29/investors-need-to-understand-basic-geology-chris-wilson.html
    -Organic growth is the process of business expansion by increased output, customer base expansion, or new product development, as opposed to mergers and acquisitions, which is inorganic growth. Organic growth like that of Kirkland Lake Gold is stellar and takeovers aren’t always in the best interest of shareholders;
    -Merger, Kirkand Lake Gold and Newmarket Gold and why Eric Sprott might have preferred organic growth:
    Eric Sprott, from Jekyll Island Series: «Reality vs conservatism: now as an investor like let’s take for example me looking at Kirkland Lake or Fosterville and by the way when I think about it now there was a big mistake of mine to suggest that Kirkland should take over Newmarket. I would have been better off keeping my 17% of Newmarket, thank you very much, instead of my 10% of Kirkland because it is Newmarket where the action is, so it was a mistake and of course when I think back about it, one, the CEO is not longer there, didn’t get it, maybe some of the people at the mine, I like to be conservative and of course all reporting back at their bosses who are in Vancouver [..] I think they are telling them we’re going to produce 140,000 to 145,000 oz this year. Why don’t we merge with Kirkland whose got things going on, and they didn’t recognize it that they have things going on. I said nobody told them, conservatism vs reality, it killed them, the opportunity they gave up, selling that thing to us was a joke, I should be criticized too, because I could have ended up with more, a higher percentage of that. »
    Kirkland Lake Gold Inc. and Newmarket Gold Inc. merged creating a new mid-tier gold company, from the Kirkland Gold press release on September 29th 2016, highlights of the transaction:
    -Creation of a new low-cost, mid-tier gold producer;
    -Diversified production base;
    -Production profile anchored by three high-grade, low-cost operations;
    -Driving growth across two world class mining jurisdictions;
    -Expanded discovery and exploration potential;
    -Strong balance sheet and healthy cash flow generation.
    Benefits to Kirkland Lake Shareholders
    • Establishes the company as a high quality, mid-tier gold producer with a diversified production base and low production costs without adding development risk;
    • Diversified production base creating a company that has a lower operating risk profile;
    • Decreases overall production costs and strengthens the company’s ability to withstand fluctuations within the gold market;
    • Strengthens the balance sheet, increases ability to generate free cash flow and improves financial flexibility;
    • Extensive exploration upside with recent high grade discoveries in the Lower Phoenix, Harrier and Osprey zones at Fosterville to provide continued positive share price catalysts;
    • Creates second operating platform to further evaluate growth opportunities in another Tier 1 jurisdiction.
    Benefits to Newmarket Shareholders
    • Immediate up-front premium implied within the exchange ratio;
    • Superior financial strength and flexibility to support a more aggressive exploration and development program at its Australian operations;
    • Strong exposure to high-quality, high grade Canadian production base;
    • Exposure to a diversified long-life reserve and resource base to support further growth.
    • Increased trading liquidity, enhanced value proposition and capital markets profile;
    https://www.klgold.com/news-and-media/news-releases/press-release-details/2016/Kirkland-Lake-Gold-and-Newmarket-Gold-to-Combine-to-Create-a-New-Mid-Tier-Gold-Company-9292016/default.aspx
    Eric Sprott RNX holdings after PP closing, from the January 9, 2019 Short Form Prospectus, a staggering $22,436,409 CAD ($0.47 per share): « Sprott currently beneficially owns, directly or indirectly, or exercises control or direction over, approximately 41,216,042 Common Shares, or approximately 9.2% of the issued and outstanding Common Shares (on a non-diluted basis). At the closing of the Concurrent Private Placement, it is anticipated that Mr. Sprott will beneficially own, directly or indirectly, or exercise control or direction over approximately 47,737,042 Common Shares, or approximately 10.2% of the issued and outstanding Common Shares (on a non-diluted basis), assuming the closing of the Offering but no exercise of the Over-Allotment Option or the Private Placement Over-Allotment Option. »
    -Joint Venture, an example: From Kitco Joint Ventures, Strategic Partnerships Provide Junior Miners Long-term Potential article: « Investors can expect to see more strategic partnerships and joint ventures in the mining sector as smaller companies look for sustainable capital flows, according to one mining executive.
    In late May, Golden Arrow Resources (TSX.V: GRG) announced that it had completed a joint venture agreement with Silver Standard (TSX: SSO) to develop the Chinchilla Silver project in Argentina. As part of the agreement, Golden Arrow will receive a 25% stake in the mine, while Silver Standard operates the mine with a 75% stake.
    The agreement also provides Golden Arrow with a 25% stake in Silver Standard’s Pirquitas mine.
    Joseph Grosso, president and CEO of Golden Arrow, said in a recent interview with Kitco News that this venture provides major benefits for both companies. He explained that his company is getting about $1 million a month from this agreement and Silver Standard is able to expand its Argentine mining operations for at least another 8 years once the Chinchilla project is in production, which is expected to be in mid-2018.
    “We are geologists not mining engineers or builders so it makes sense to partner with a company that has this expertise,” he said. “We are excited to be able to work with a company like Silver Standard to get Chinchilla in production.”
    Grosso added that this agreement is an example of what he sees is a growing trend in the industry. He added that joint ventures allow exploration companies to leverage their expertise in finding deposits, leaving the development of the mine to more experienced players.
    Grosso isn’t the only person who is seeing a growing trend of majors developing strategic partnerships with junior companies.
    In a recent report, mining analysts at CIBC noted that so far this year, more 50% of the equity raised by junior gold companies listed on the Toronto Stock Exchange has come from direct investment from major companies.
    “No previous year has exceeded 20%,” the analysts noted. “The increased activity of senior gold stocks investing in junior stocks may be motivated by the forecast gold production decline beyond the next five years. Larger gold companies need to plan now to address the future forecast production decline for the industry.”
    https://www.kitco.com/news/2017-07-17/Joints-Ventures-Strategic-Partnerships-Provide-Junior-Miners-Long-term-Potential.html
    In conclusion, $RNX future reality is speculative and CEO community will continue to research and defend the interest of RNX shareholders and potential shareholders, as our voices need to be heard to complement managements.

    #2218
    DD_KING
    Participant

    $RNX: The spark that ignites Beta Hunt fascination
    One of the most anticipated upcoming news releases will be the RNX core results, speculated to be this week; this being said, Mr. Henry Dole, a Kambalda miner working for the company is credited for the Fathers Day vein discovery that has sparked significant interest and due diligence by great many. The following are information sources to facilitate understanding the Beta Hunt fascination and its speculative nature and potential.
    From ABC Goldfields, September 9th 2018, excerpts:
    -The discovery:
    «Underground miners in outback Western Australia have unearthed rare gold specimens which geologists are calling a “once-in-a-lifetime discovery”.
    Workers at the Beta Hunt mine near the small town of Kambalda, 630 kilometres east of Perth, have brought more than $15 million worth of gold specimens to the surface in just four days.
    The gold-encrusted rocks were found about 500 metres below the surface in an area just three metres wide and three metres high.
    The largest specimen weighs in at 90 kilograms and took three men to lift it onto the back of a ute.
    The quartz rock is covered in an estimated 2,300 ounces of gold worth about $3.8 million at today’s gold price.
    Another 60kg specimen is estimated to contain 1,600 ounces, or about $2.6 million in gold.».

    -The point of view of a geologist:
    «Senior geologist Zaf Thanos said in most mines around the world it is only possible to see gold through a magnifying glass.
    “You might go your whole life and you’ll never see anything like it. It’s definitely a once-in-a-lifetime discovery,” he said.
    “As a geologist, like I said, you get excited by a pinhead speck. But to see something on this scale is just phenomenal.
    “This sort of bonanza zone is incredibly unique.”
    The rich cluster of high-grade gold has so far produced more than 9,000 ounces ».

    -From Henry Dole, airleg miner:
    «’I’ve never seen anything like this’: miner
    Kambalda miner Henry Dole is credited with the discovery, describing it as hitting the “mother lode”.
    Mr Dole had drilled holes into the wall of the mine and planted explosives which were fired once he was safely on the surface.
    When he came back to the same area for his next shift, Mr Dole thought it was business as usual.
    “Everything was covered in dust, and as I watered the dirt down there was just gold everywhere, as far as you could see,” he said.
    “I’ve been an airleg miner for 16 years. Never in my life have I ever seen anything like this.
    “There was chunks of gold in the face, on the ground, truly unique I reckon.
    “I nearly fell over looking at it … we were picking it up for hours. [..]
    Are the miners just scratching the surface?
    The question now is whether there is more bonanza gold waiting to be found at Beta Hunt.
    In the eyes of Mr Dole, there is no doubt and he hopes it is just the beginning of a revival for the Kambalda community, which has been hit by multiple mine closures in recent years.
    “It’s no secret we were looking down the barrel for a while, but with this, it’s picked everyone’s morale up,” he said.
    “It’s good for the town, the mine life, all of that.
    “I truly believe there’s something bigger and better down there.
    “I reckon we’re just on the fringe of it … and if we get deeper, I reckon we’ll find more ».
    https://www.abc.net.au/news/2018-09-10/rich-gold-seam-half-a-kilometre-deep-in-kambalda/10219576

    From ABC Goldfields, September 12th 2018:
    -Bob Fagan, WA School of Mines geology lecturer:
    «The former WA School of Mines geology lecturer said it could attract more prospectors to the region, as well as mining investment for deeper exploration.
    Dr Fagan said the region was already on the map as a world-renowned gold province and discoveries of this nature only reinforced that there was more gold waiting to be found.
    “It’s very encouraging because it says there’s a lot of gold in the system, although this was coming from 500-metres depth,” he said.
    “This confirms what we already knew — that this is a very gold-rich area.
    “It probably will attract more prospectors because we’ve got a situation where they’ve dragged out about $3 million worth of gold in half a day.
    “The challenge is to find that on the surface [and] it’s possible, although that’s not very common … you need to be very lucky.” ».
    – Significant finds in the surrounding area:
    «ASX-listed company Lefroy Exploration has found hundreds of gold nuggets over the past five years on its 600-square-kilometre land package, just 10km east of Beta Hunt. »
    https://www.abc.net.au/news/2018-09-12/lucky-strike-in-outback-wa-could-spark-mini-gold-rush/10233130

    From CBC Radio September 10, 2018 episode transcript:
    «Gold Find
    Guest: Mark Selby
    JD: Miners at the Beta Hunt Mine in Western Australia used to extract nickel, but last night they announced that they had pulled out a much more precious metal — gold, and lots of it — including what might be the biggest gold nugget ever. The mine is owned by Toronto based RNC Minerals. The company has doubled its value overnight. Mark Selby is the president and the CEO. We reached him in Seoul.
    CO: Mr. Selby, how did you react? What did you say when you learned about these gold nuggets and that discovery?
    MARK SELBY: Yeah, no, it was — it was exciting. I literally had woken up in the middle of the night Monday evening and picked up my phone and checked an email and saw the first email that indicated we thought we might have four or five thousand ounces come out of this discovery. And needless to say I didn’t get back to bed last night. But we’ve made one of the, we think, one of the best gold discoveries in Western Australia and, you know, the scale of the grade and the specimen stones that have come out we think makes it one of the more exciting gold discoveries in a very, very long time anywhere in the world.
    CO: How big are they?
    MS: The biggest one is a 95-kilo specimen that has, we believe, over 2,400 ounces of gold in it. To give you some context, that’s the largest nugget, I mean this isn’t a nugget, it’s gold stuck in rock — is about 2,200 ounces — that’s worth four million dollars just the gold content alone.
    CO: And what’s the other one? What’s the other guy?
    MS: The other ones about 65 ounces, so it’s 1,600 ounces, so that’s two and a half million dollars in today’s currency. To give people context, out of about your living room, we pulled out 15 million dollars worth of gold or about 9,000 ounces. The typical gold mine today is mining gold rock that contains about one part per million or one gram per tonne gold and so a typical mine would have to mine 300,000 tonnes to get the same amount of gold that we just pulled out this week.
    CO: You’ve got two rocks that are worth 15 million dollars?
    MS: No two rocks that are worth six or seven, and then we pulled out by hand and shipped another bunch of rock directly to the Perth mint to be processed for a total of 15 million dollars.
    CO: But you weren’t even mining for gold at this mine.
    MS: Well the history of the mine is that it’s a nickel mine. But when we bought it the gold potential was there so we’ve started mining over the last little while, and historically up against the nickel deposits at the top of the mine they would pull out a few hundred ounces of these high grade specimens stones in the 70s and 80s. And we pulled them out the first few times we started mining nickel when we picked up the mine in 2016. But what’s really exciting is we’ve identified these new structures, which concentrates the gold just like it does up at the nickel contact and we pulled out about 1,500 ounces from one area at the end of June and two months later pull out 9,000 ounces. So our team at the site has done a great job of figuring out how the gold zone interacts with this particular type of sediment and it has done a good job of zeroing in on it. So we have kilometres of strike length of potential to find more of these jewellery boxes.
    CO: So this is just the tip of your golden iceberg then?
    MS: That’s a great analogy, yes. We hope there’s a very big iceberg underneath that tip.
    CO: What do you do with them? You don’t just take down to the market and sell it. What happens now with rocks of that worth, that value?
    MS: Yes, so we have two paths. So, you know, obviously rocks that valuable we make sure to get them off site as quickly as possible. The grade great content of the gold on average of what we pulled out was shipped off was about 80 per cent gold. So those go directly to the mint to be processed through that high grade enough. And then anything that’s particularly beautiful we’ll keep as a specimen stone and sell to collectors. These two big ones obviously are very unique so we’re going to go through an extended auction process here to be able to identify a global buyer and hopefully generate a few million dollars more for the company.
    CO: So you have a license to do this mine. Does Australia get anything from it?
    MS: Yeah Western Australia has a royalty on all minerals that are recovered from any mine in the area. So the Western Australian Government just got two-and-a-half per cent of everything we found this week.
    CO: How much do you think you got? I mean, getting back to the size of this iceberg or jewellery box whatever you want to call. What do you think you’re sitting on?
    MS: Well, again using the living room analogy, so we pulled out this gold out from about five metres and we pulled up 1,500 ounces from a place that was about 30 metres away and we literally have a couple kilometres of strike length across multiple structures to be able to go looking for more of these. So we don’t have to find them too often to add up to a very, very large number of ounces. So it’s very, very exciting.
    CO: So what has this done for RNC Minerals, for your company? What’s happened to its stock value?
    MS: The share price has more than doubled today and we’ve traded about 15 per cent of our volume and then we’re having a conference call tomorrow to explain in more detail about the exploration potential that’s there. So hopefully this is the, you know, we’ll see more people who find out more about the potential and get us excited about it as we are will hopefully buy some more stock and we’ll see further improvement in our share price.
    CO: I suspect you’re a happy man tonight?
    MS: I am a very happy man. It’s been a very happy week.
    CO: Is there a horseshoes someplace that you think you can attribute to this?
    [LAUGHTER]
    MS: I was wondering why is he feeling a little bit uncomfortable. That must have been it.
    [LAUGHTER]
    CO: Well, I wish well and congratulations on this. Thank you.
    MS: Thanks very much. Have a good day.
    JD: Mark Selby is the president and CEO of RNC Minerals. He was in Seoul, South Korea. If you’d like to see some photographs of that glittering rock of gold. You can do so at: http://www.cbc.ca/aih. »
    https://www.cbc.ca/radio/asithappens/as-it-happens-monday-edition-1.4817159/september-10-2018-episode-transcript-1.4818608
    -Eric Sprott on the week behind us transcripts, his due diligence:
    Eric Sprott on the week behind us. -Weekly Wrap-Up (September 14, 2018)
    Craig: Eric, let’s end the week on kind of a fun note. There was some news this week out of Australia. It doesn’t have anything to do with the Pilbara, which you and I talk about quite a bit. But there was discovery of the largest gold nugget ever found, at least so far on planet earth. Made some headlines. It’s an interesting story, and I know you’ve got some details on that too.
    Eric: Well, the most humorous thing about it is, this was found by a company called Royal Nickel. Which I happened to be a big owner of because they had found things like this before at a different level in the mine, okay? And I thought, well, this could be big and they were mining nickel and gold. And so I was a pretty big shareholder. And if you’d asked me two weeks ago where this stock was going, I would’ve said, you know, they have a shot at going broke here. And then all of a sudden there’s this announcement on I guess Sunday night or Monday morning that they had a blast in one of the holes and over a 3 meter by 3 meter by, I don’t know, 2 or 3-meter blast that they recovered 9,600 ounces, which is an incredible. It was something like 70 ounces a ton, 70 ounces a ton. Unheard of.
    And these are beautiful nuggets. In fact, they are so beautiful that they will either be sold as nuggets or they will be held by the Australian authorities. Now so with the company called Royal Nickel, it’s listed in Toronto and their symbols are RNX. The company had a webcast on Tuesday. The webcast is available. I suggest any serious investor should go and look at that webcast and see what they’re saying and I’ll try to paraphrase it for everyone. So they were mining at a level and they said, well, maybe we should go down to this level down here because we have a sediment that goes across on a lateral extent that could cause gold to precipitate into what’s called the [inaudible 00:14:09] sediment. And, sure enough, they go down there and wow, this is where they had this discovery. And they’ve said in their presentation that this sediment is omnipresent at that level throughout their tenement.
    What happens is, where the sediment meets a structure that had been metal bearing, where it meets that structure gold seems to precipitate in very large quantities. And they have struck at least two two-kilometer structures, okay? So there’s a big potential here that this is not going to be a one-off. It’s already sort of the biggest discovery in a small amount of tons that the world has ever witnessed. And it is the world’s largest nugget now. So it would be worthwhile for people to think about whether this is likely to carry on. The suggestion in the webcast is that it does carry on. So we’re all going to stand by and find out if we have a world major discovery here. We’ll see.
    Eric Sprott on the weak U.S. dollar -Weekly Wrap-Up (September 21, 2018)
    Eric: I also want to talk about RNC minerals. That’s the company that I might’ve mentioned it a week or two ago that found these huge nuggets in Australia. And they said, hey, we come down to 600 ounces of nuggets, in one blast and on what day would have…on Wednesday. I guess they came out and said, well, it’s not 9,600 anymore. It’s now 24,000 ounces that they’ve taken out of this one little pocket here. And of course, now the stock’s up 500% from where it was trading at about a month ago with seven cents.
    But that’s a lot of money. And the funny part is the stock didn’t go up as much yesterday as the value of the announcement. In other words, they announced they found an extra 50 million ounces, which is worth about close to $20 million US. Stock didn’t go up by $20 million. So, God forbid that they continue to find this pile of gold along the many kilometers of structure that they have, and I can’t say that they will or won’t, but it’s a new sort of geological interpretation in where this sediment meets a structure, the gold is in place and we’re only just…this was our first foray into the structure, so it will be rather interesting.
    I announced yesterday that I went to 10% on the stock, so that’s public information. You got to do your own due diligence here, you know. These things are all punts in a way. You’ve got your fingers crossed. You got to guess at where it’s going to go. I don’t know where it’s going to go, but you guess, what’s the upside versus the downside? And you have to make up your own mind. So That’s interesting.
    Eric Sprott on the state of U.S. politics – Weekly Wrap-Up (September 28, 2018)
    Now I want to close off with the RNC Minerals and they’re the ones that have come up with these huge gold boulders in Australia.
    And, they put out a release, I guess last week showing connectivity between what they call their level of 15 up to their level 14 where they said if it goes 180 meters of striking about 20 meters of vertical elevation which I think really opens things up here that you could have that kind of size in terms of the deposition of gold over such a big area. I always imagined that, you know, we had this sediment that caused gold to sort of puke out in a way, but it wouldn’t be that extensive. But it sounds to me like it’s much more extensive. They have these forest structures that go two kilometers along and below them all is this sediment which is causing the gold to spill out. So, you know, fingers crossed, it could be a very major discovery. Some people are even imagining it could be the discovery of the century for them to say, “Well, it’s already got the biggest coal boulders ever, ever. I mean, it is very, very unusual.”
    So, and the sort of rumblings we get from the mine site is that they keep, you know, blasting and finding large amounts of gold. So, it’s a very interesting thing. There’s lots of great information. I would recommend that people go to the website, for example, ceo.ca. There’s some wonderful posters there who do a great, great job of trying to keep people informed as to the progress down there. So, that’s been very exciting for us. I think I first mentioned it might’ve been 20 cents. It went to $1.15 down at 80 cents now, but it sure looks like it could carry the day for us.
    Craig: Eric,that was a great comprehensive update. You know, I don’t know a lot of geological stuff and it’s great to hear it. The one thing I’m pretty sure though, is puke out a geologic term?
    Eric: I don’t know, but I hope they keep puking. I mean, I couldn’t believe the gold that those guys found in those nuggets. That was incredible.
    Craig: Pretty remarkable stuff.
    Eric: There’s all these pictures on the website of these, you know, huge gobs of gold. And like it’s very…and this is an incredibly unusual discovery, which I think that first boulder that had 2,600 ounces in it made the whole statement. And who’s to say, you know, we got eight kilometers of strike for drill on here. So, it could be very interesting.
    Eric Sprott on gold’s great week – Weekly Wrap-Up (October 12, 2018)
    I also visited the Beta Hunt Mine that’s owned by RNC Minerals, that’s the one that where they came out and said they think they’ll find 30,000 to 35,000 ounces in the Father’s Day vein, they’ve subsequently come out and says it looks like this thing extends quite a bit further. But there’s no tangible results going along the sedimentary structure that they have found more yet, not that they’ve drilled it by the way, so we can’t expect anything yet.
    But I just… If this comes together that there is a lot of structure to be mined down there, they mean they have eight kilometers of structure, the sedimentary zone goes through the whole eight kilometers. We don’t know how well it won’t be endowed, I mean, it’s not going to be like the Father’s Day vein, because that would just be impossible that something would be that great, it was unheard of the amount of ounces they pulled out of there in such a short time. So, we’ll have to stand by and see if they can do a little drilling, and then prove that this thing will have multi-ounce potential along the strike of that paretic [SP] zone, but I think there’s reasons to be optimistic on that front.
    Eric Sprott on the state of the markets – Weekly Wrap-Up ( October 26,2018)
    Craig: And Eric, just quickly here as we wrap up, one of the companies that we’ve spoken about in the last couple weeks is this RNC or Royal Nickel, and these massive gold nuggets, people have probably seen the stories in the news about the largest gold nuggets ever on earth. They had some earnings there and some statements they put out this week, and I know you kind of want to touch on that too.
    Eric: Sure. Well, they brought out a news release, which was I think poorly worded, and I still I’m not sure exactly what it said. And believe me, I’ve read it 20 times where they said the grandfather’s vein produced, whatever, 27,000 to 30,000 ounces, and the extra 540 meters beyond the first 10 meters will produce 35,000. They didn’t say an additional 35,000, just 35,000. So anonymous, not which one they meant. You know, they meant the total of 35,000 between the 2 things in which case would be a big disappointment. Did they mean an extra 35,000, which I don’t think they really meant to be honest because, you know, how would they know it would be that number?
    Craig: Yeah.
    Eric: But here’s the interesting thing that everyone should give some thought to. A cubic meter of gold weighs 19 tons; therefore, a ton of gold is one-twentieth…one-nineteenth of a cubic meter. That’s a meter by a meter by about 3 inches, 3 inches. Now, if you look at that grandfather vein and maybe it’s two feet wide, it’s not all gold, but you can see what a small, little…and they found a ton. What a small little area, you can find a ton of gold in. And the key question with RNC is, have we unleashed a new depositional model for gold? And there’s some thought that it is a new depositional model, it hasn’t been proven, but I can tell you that there’s probably four or five different places on that property where they have seen that kind of manifestation before at different levels and in different structures, and, of course, they got four structures that I think on average each go like four kilometers.
    So we got a lot of opportunity to see whether we’re going to have a new theory. I’m about to read a paper on the weekend which will be a heavy duty geological paper which you won’t understand. I’ll try. I’ll try to summarize it for the layman as I hope it summarized for me the layman, just about how that gold did manifest itself down there. So hopefully I might have more to report next week. But I find it intriguing to study what’s going on down there and I’m trying to make sure that if it’s going to be different, if it’s going to be different, that one takes advantage of it. Because if it works it’s a multi-bagger, if it doesn’t work, maybe you lose 50% of your money. But the multi-bagger is a lot better, you know, if you get enough of them you don’t mind losing 50%. So we’ll see where it goes. I tend to be…you know, I’m getting into the believer camp so we’ll see where it all takes us.
    https://www.sprottmoney.com/Blog/category/sm-radio.html
    The million-dollar question: How significant will the core results be? If the results are significant, the CEO and Stockhouse boards, already top viewed ones, will light up! Moreover, if the results are excellent, media sites on a global scale will relay the information. Also, those on the sidelines of RNX and there are great many, will finally buy the stock. Let’s not forget that the initial Father’s Day find was relayed globally on big media outlets and that RNX is on three stock exchanges and likely four soon, and this will in turn facilitate International institutional investments.

    #2220
    DD_KING
    Participant

    Beta Hunt and Fathers Day discovery like “something from Snow White and the Seven Dwarfs”!?
    Interesting article on the rarity of the find, from Kalgoorlie Miner, Beta Hunt find excites, September 12th 2018:
    “Mining figures in the Goldfields say a salivating discovery at a Kambalda gold mine will help put the region back on the map after news $15 million of gold specimens were uncovered by
    RNC Minerals 500m underground at its Beta Hunt operation last week travelled around the world.
    WA School of Mines director Professor Sam Spearing said the large specimens, one weighing 95kg and containing an estimated 2440 ounces of gold, were significant finds.
    “I think it was just so exciting because the Goldfields has been mined for 125 years and this was the biggest small find just about ever,” he said.
    “This was 9000oz against the 1100oz of the Golden Eagle (found near Widgiemooltha in 1931) and even the really big one in Victoria (the Welcome Stranger) was about 2700oz.
    “So this is really significant and although this is not a nugget in the normal sense of the word, I think they’re going to get a huge premium from collectors when they sell it.”
    Professor Spearing said RNC’s discovery, which was made by an airleg miner in a 44cum cut of the Beta Hunt mine, was likely to revive interest at the junior end of the mining sector around Kalgoorlie-Boulder.
    “This particular story is even more exciting because it was a driller who found it basically by accident,” he said.
    “I think this is going to be the source of a lot of geological investigations to try to find out exactly what the sources of its formation were and where and how it can be replicated if it can be replicated.
    “I think this has really stirred more the investor into the small mine than the prospector or fossicker or the mid-tier big kids on the block.
    “That’s good for our industry because it’s the small people that often get taken up by the bigger ones, and that sees our industry grow.”
    Kalgoorlie-Boulfrt geologist Darryl Mapleson said it was like “something from Snow White and the Seven Dwarfs”.
    “It’s an incredibly exciting discovery of a gold jewellery shop as I refer to them as,” he said. “They’re quite a common occurrence on the eastern flank of the Kambalda Dome.
    “This was obviously quite a significant one and I would have liked to be the airleg miner washing down that heading.”
    Mr Mapleson said the gold industry in Kalgoorlie-Boulder was already on a high from a sustained gold price above $1600/oz, which was providing the steam for investment in exploration.
    “At the moment, gold exploration is at this consistent level of activity and we’re seeing all diamond rigs are unavailable and booked out — that’s what I’m being told by drillers,” he said. “It’s becoming more difficult to get reverse-circulation rigs.”

    https://thewest.com.au/news/kalgoorlie-miner/beta-hunt-find-excites-ng-b88957828z

    #2221
    DD_KING
    Participant

    Realistically, how would the marketing continue? Solid post from someone on the sidelines on CEO.ca, @kerfuffle on January 31st 2019:
    «Realistically, how would the marketing continue? When they found these gold rocks, this company was in every major paper around the world. They then went to almost every show with regular interviews showing the specimens. Several weeks later (now old news), there were well over 300 to 400 people on this board and yet people were still buying? I really don’t get it. I can see buying then if you are a short term trader or flipper but long term investor? No. Anyone who bought then should have known they were buying into wild enthusiasm, whether it was warranted or not. This kind of thing happens again and again. It is not really about RNC, not about fundamentals and not about the price of gold. It is really about sentiment and game theory. FWIW, I know some people won’t believe me but I have no position short or long. I am just an observer and find this story is bloody interesting. I have no idea if the SP is cheap or not but it actually is holding up better than I expected. Good luck to everybody. »

    #2222
    DD_KING
    Participant

    Solid insight from Jim Cramer and Marc Oliver on gold being rediscovered by mainstream, from John Rubino, January 31st 2019:
    Jim Cramer: «We are big gold believers here. Now gold is at $1,300, we think gold is going to $1,400-$1,500. We suggest that everybody have a little bit of gold in their portfolio», Cramer said on Wednesday. »
    Michael Oliver: «Even [financial advisors] who don’t like gold are getting calls from clients asking “how come we don’t have any gold in our accounts? It’s the best performing asset for the last six months.” Once non-gold people realize it’s the best performing asset out there, they’ll be forced into it, which will widen the investor base for gold mining stocks. If just a small part of what’s in the broader stock market flowed into gold that’s a huge rush of money for such a small sector. The gold and silver miners will probably be the best place on the planet. »
    https://www.dollarcollapse.com/mainstream-rediscovers-precious-metals/

    #2224
    DD_KING
    Participant

    Good article mentioning RNC Minerals, from Live Wire, Barry FitzGerald, January 31st 2019 and Mark Selby said: «We’ll see how much cream we find as we go along»:

    «OZ Minerals raises bar in elephant-hunting deal with junior Red Metal

    In a deal which is winning plaudits for fairness, Oz has committed to spending millions hunting for world-class orebodies at six projects held by little Red Metal. Plus, excitement builds over Kirkland’s imminent Fosterville reserve upgrade and the hunt’s on for more high-grade at the reborn Beta Hunt gold mine.
    One of the big changes in the minerals exploration game of late has been the move down the food chain by the big mining companies to strike joint venture deals with juniors on their more promising Australian exploration projects.
    The move reflects growing sovereign risk concerns at overseas locations and the ever-present need by the miners to fill their future development pipelines in an industry where the primary asset – the orebody – is depleted on a daily basis.
    A joint venture deal where the major comes in and funds an exploration program might at first glance be considered a good thing for the junior. They have effectively had their exploration project endorsed by the miner’s well-resourced exploration team and the exploration-funding problem is solved.
    All that’s very true but too many times the big miners use their leverage to strike a farm-in deal that leaves little on the table for the junior. It’s commonplace for the junior to be required to let 70-90% of the project go to cement the deal, no questions asked.
    But at last, there is an example of a joint venture deal that recognises the importance of the junior sector’s project generation capability and its overall importance to the maintenance of a vibrant industry.
    Today’s example is the multi-project and multi-option joint venture deal OZ Minerals has cut with the technically-minded grassroots explorer Red Metal (RDM). That the deal is not the average mean deal has been reflected in Red’s share price putting on 2c to 12c since it was announced.
    The so-called “Greenfields Discovery Alliance” essentially gives OZ a two-year option to fund a series of mutually agreed, proof-of-concept work programs on Red’s Yarrie, Nullarbor, Gulf, Three Ways, Lawn Hill and Mount Skipper projects.
    The minimum expenditure commitment for OZ is $8.05 million across the projects and there is a $1.8m front end cash payment to Red.
    On completion of the minimum expenditure commitment on a project, OZ has the option to trigger the formation of a joint venture in which it can earn 51% by spending a designated earn-in amount ($15m over four years at most of the projects), with Red having the flexibility to contribute at 49% or dilute to a 30% interest.
    It should become the model for future deals between the big companies and the juniors. But it won’t because not all juniors have the leverage Red had because of the quality of the exploration projects it is putting in to the greenfields alliance.
    All of them are about finding the next Mt Isa, Cannington, Olympic Dam, Dugald River or McArthur River deposit.
    Sadly, Red’s senior project geologist Greg Kary will not be around to see that happen. A Canadian who made Australia his home, the widely respected and liked Kary died suddenly in the field before Christmas.
    Red has pledged to name the first discovery made under the new alliance in his memory. “We look forward to this day,” the company said.
    Who knows, success could come at Red’s Yarrie ground in Western Australia’s Paterson province. It is in the same neck of the woods as Rio Tinto’s yet to be officially confirmed Winu copper discovery, the one people are tracking by satellite.
    Rio would not comment yesterday on speculation that it was about to lift the veil of secrecy on the find where the latest rumours are that it has outlined a still growing resource of 160mt grading 0.8% copper, maybe with a gold count.
    Yarrie has the biggest minimum spend commitment of $2.5m over two years in the greenfields alliance with OZ.
    Drawing on public domain geophysical imagery, Red reckons Winu shows up as a
    low-amplitude, bullseye magnetic target along a high-gravity ridge. Two very similar low-amplitude magnetic bullseye targets along the same high-gravity trend are evident in Red’s ground to the north-west.

    Navarre Minerals (NML)

    Not many sleeps now to finding out just how big the gold reserve upgrade at Kirkland Lake’s high-grade Fosterville mine near Bendigo in Victoria is going to be.
    The locally-listed (ASX:KLA) Canadian miner has said it would be in February and without saying what it would be, it gave an indirect message that it would be big, very big.
    The indirect message came via Kirkland’s recent disclosure that 330,000oz of annual
    production from Fosterville in 2018 would be followed up by a forecast 430,000oz in 2019 before taking off to a 500,000-540,000oz range in 2020, and 570,000-610,000oz in 2021.
    It wouldn’t being heading off to those forecast heights – it would compete with the Super Pit in Kalgoorlie to be Australia’s third biggest gold mine – without Kirkland being super confident it had the supporting reserve base for years to come.
    The current mineral reserve estimate stands at “only” 1.7Moz at 23.1gpt, of which the Swan Zone alone accounts for 1.16Moz at a thumping 61.2gpt. So big things are expected in the February reserves statement.
    As Fosterville makes its pitch to be one of the world’s great gold mines, there has naturally enough been a spike of investor interest in what else Victoria’s old high-grade goldfields have to give up after all these years.
    Dedicated Victorian explorer Navarre (NML) has captured some of that love this week on the strength of confirming re-assay results from its Langi Logan project, 40km south of Arete Capital’s recently re-started Stawell gold mine, where 4Moz has been mined over the years.
    Navarre has a big footprint in the Stawell mineralised corridor and Langi Logan has served up its best ever result – 11m at 5.1g/t from 75m within a broader interval of 33m at 2.9g/t from 66m to the end of the hole.
    Navarre reckons the results indicate the potential for Langi Logan to host a large-scale, high quality gold system similar to the Stawell gold mine. There’s more work to do but at least the market is now alert to the potential for what is a 5.9c stock ($21m).

    RNC Minerals (RNX:TSX):

    Talking about high-grade gold, Canada’s RNC Minerals shot the lights out last year at its Beta Hunt nickel-gold mine near Kambalda.
    RNC acquired the ageing nickel-gold mine in 2016 and most of the locals said “good luck” to them. With nickel production put on ice, RNC was left to focus on occasional high-grade found near the nickel lenses.
    It’s fair say that Beta Hunt’s future is now a whole lot brighter following last September’s discovery of the spectacular Father’s Day Vein.
    The discovery yielded 25,000oz of gold from a small underground rock cut and contained some of the biggest gold-in-quartz specimen stones ever found.
    Some of the slab-sized gold specimens are still on a world tour of mining conferences, including the 1,402 oz “King Henry” specimen. Eventually they will be sold at what should be a fancy premium to the gold price.
    More to the point is that the Father’s Day treasure chest was found by RNC being the first owner of Beta Hunt to drill-test sediment bands found 150m below the contact between the Lunnon Basalt and the overlying Kambalda Komatiite, the focus of 50 years of nickel operations and the occasional source of high-grade gold pods.
    The exciting aspect for RNC is that while the same mechanism creates the gold adjacent to the nickel lenses and in the sediment layer, the sediment layer is property-wide while the nickel lenses make up only a small fraction of the overall strike length.
    As RNC president and chief executive Mark Selby puts it, RNC has essentially found a “brand new gold mine,’’ one that has the development benefits of a 5km ramp to
    surface from earlier nickel/gold operations sitting directly above the new gold position.
    Selby said he expects Beta Hunt’s four known shear zones will continue to provide the operation’s gold production base while high-grade material from the sediment layer will be the cream of the top. “We’ll see how much cream we find as we go along,” he said.
    Recent drilling suggests Father’s Day is not a one-hit wonder. Best results included a
    high-grade hit from the testing of the sediment layer at the Western Flanks shear – 1,017 grams a tonne (32.6 oz/t) over 2 metres, including 7,621 g/t (245 oz/t) over 0.27m.
    The company was a C9c stock before the Father’s Day find. It’s now trading at C62c.
    RNC is well aware of the appetite in the local market for high-grade gold operations. To that end, Selby said an ASX-listing was in the works.
    “We haven’t made a final decision at this point but it is something that will most likely happen at some point this year. It just makes sense. »

    https://www.livewiremarkets.com/wires/oz-minerals-raises-bar-in-elephant-hunting-deal-with-junior-red-metal

    #2225
    DD_KING
    Participant

    Sprott Money News Weekly Wrap-up January 25th 2019, an interesting excerpt as Eric Sprott talks about drilling, ore grade and profitability:

    «I’m also seeing interest in juniors. I got lots of interest in juniors here. You know, I’m into something called RNC Minerals. They brought out a new release. I just drilling release this last week. We’re hoping that they would find another very high-grade zone. They found two small high-grade zones, which is good and encouraging. And I’m thinking that logic says they’re going to find other very high-grade zones on this property. So, I wouldn’t say they’re home and cooled out yet, but the initial drilling was great. And one of the interesting things about the drilling is they didn’t miss on any holes, which is a little unusual…no, no, it’s a lot unusual that they didn’t miss on any holes. [..]

    And by the way, none of this is investment advice. It’s just me narrating on sort of things that I see. And, I’m quite keen on the way things have evolved there in terms of the size of the ore body, both extending laterally, extending vertically. The grades have been good. They have some holes that are in the top 10 holes drilled this year in terms of grade length. So, that’s pretty good. I think we’ll see some drilling results that have a company called Sokoman Iron that’s drilling in Central Newfoundland. Fingers crossed on that one, I have no idea what’s going to happen.

    But one of the things that I have sort of resolved in my mind is, you know, grade is everything. It’s everything. When you see what happened at Fosterville and the grade goes up, and there’s no cost to getting more ounces when the grade goes up. And when I look at, for example, Walbridge, I realize, my goodness, the grade could be whatever, 15 grams here, which is way, way, way beyond. But the average mine is 1.7 grams. Well, if you had 15 grams, you had a lot to work with. Okay. That’s a lot of money per ton of ore.

    So, we’ve had some great drill results both in the case of Kirkland and the case of Walbridge, Sokoman, RNC Minerals. And these things bode well for profitability in the future. Note, three of them are not even mines yet, but we’re going to be there. So, I find it really interesting in the space as the precious metals prices start popping up here. And when you think that the economic future i.e. the dovish snus that’s likely to happen here. And it’s impacted what’s going to happen to gold, the fact that the institutions are buying the GLD. These are all very great signs.

    Craig: Yeah. I might just point out if we go back to just as recently as 2016, everyone remembers the price rallies of 30% in gold and 50% in silver in the first half of that year. But in as late as mid-January, the GL-…sorry, the GLD, the HUI, the HUI Index was still down at 100. And then it went to about 280. So, there’s still time to get on board some shares if you do your homework and find the right ones. I mean, this could still be a pretty valuable year for everybody.

    Eric: Yeah. No, I think it looks pretty exciting. Actually, I’m very much…I look forward to every day here. And it’s been pretty good so far. So, I hope it continues. »

    #2226
    DD_KING
    Participant

    Very good post on CEO.ca by @Huntore February 3rd 2019, about Beta Hunt complexity of quartz veins, drilling and mine life:
    «There have been lots of conversations centered on up-coming drill results being released. There are a few factors that may be of some value to be noted. First a bit about quartz veins hosting gold. Simplistically, quartz veins generally are one to three meters in thickness; and essentially fill spaces in wall rock. These veins can be complex and will not be easily defined by drill results. The variable nature of veining has been and will continue to be challenging to evaluate. Shear zones are basically conduits for fluids and can be inches wide or up to several kilometers wide; faults may be described as mega-shears that define edges of plates. These both can be mapped out with infill drilling programs, my point being that when result are released keep in mind the complexity of mining in general…..Juggling the established mining operation with diamond drilling will be on the minds of Beta Hunt’s geological team. The scheduling and direction where equipment needs to be operated will require close attention to ensure smooth operations. At times conflicts and disruptions may arise but exploration and underground operations will be ongoing to establish the resource; it is not uncommon for some discoveries to be estimated as a two or three year mine life and end up in operation for more than 50 years. It would be ideal if the Beta Hunt mine could confidently maintain a probable resource life of seven years. That is up-dated by the underground operations and future drilling results. Have an established budget for exploration at Beta Hunt that will demonstrate that timely discoveries of high value will continue to sustain operations and bring value to invested shareholders. I believe with attention to the geology of the area, professionalism of the management and currently employed staff; the Beta Hunt mine has the potential to be one of the most important discoveries in the Kambalda region of West Australia in the last 25 years. »

    #2227
    DD_KING
    Participant

    $RNX Beta Hunt and key overlooked data and history
    First section is one that exposes a significant resource by a Beta Hunt previous owner. Secondly, a revealing article on Beta Hunt on Goldfields. Lastly, history of Red Hill Gold Mine.
    Beta Hunt Gold Mineral Resources were last updated December 31, 2017 as per http://www.rncminerals.com/beta-hunt-mine and will be updated next in April 2019: «The first phase of the drilling campaign is expected to be completed by April 2019 with a resource update anticipated for the second quarter of 2019. »
    https://web.tmxmoney.com/article.php?newsid=4523103662702139&qm_symbol=RNX
    This being said, the following likely bodes well for the 43-101:
    Consolidated Minerals Ltd that had owned and operated Beta Hunt, document from 2006, its highlight:
    -«Western Flanks with an inferred resource of 1.5mt @ 4.1g/t (top-cut because of the visible gold,
    average mined grades are expected to be ~6g/t or higher) ».
    «Beta Hunt Gold Gold mineralisation at Beta Hunt was historically sought after as specimen stone,
    and East Alpha is regarded as the downfaulted extension of the Silver Lake (or Lunnon) orebody
    that development on East Alpha is driving north towards). The original mine at Silver Lake was in fact
    the turn of the century Red Hi gold mine and reputedly 0.5moz were extracted from the region before
    its closure with the underground workings apparently only 30m away from the Lunnon nickel orebody
    that was discovered in January 1966. Gold Fields’ St Ives gold mine’s operations are interspersed along
    the Beta to Foster line of tenements as illustrated by the gold open-cuts in Figure 6d, and any gold ore
    mined by CSM in the tenements has to be toll treated at a specified recovery through the St Ives plant
    as part of the original agreement with GFI. The gold ore mineralisation at Beta has been interpreted
    as a post nickel mineralising event and appears to have been injected up near vertical faults typically
    as gold in quartz [..] and then apparently reactivated, travelling along the lava channels.
    The main mineralisation appears to be located in the Western Flanks with an inferred resource of
    1.5mt @ 4.1g/t (top-cut because of the visible gold, average mined grades are expected to be
    ~6g/t or higher) and lies mainly in the Hunt ground, although there could be at least two trends
    of stacked lode systems».
    http://www.eagleres.com.au/images/pdfs/reports/2006/csm14jun06.pdf

    In the November 14th 2018 RNC Investor Presentation http://www.rncminerals.com/presentations it is written: «Potential combined strike length of 4 km Plus additional 3 km of down dip extension not explored Total 7 km. [..] Significant infrastructure in place 5+ km under ground ramp system. » Infrastructure is perhaps greater in length: article on Beta Hunt on Goldfields web site, New gold resurrects Beta Hunt – Western Australian, July 11th 2016, some relatively unknown highlights are spectacular:
    -Fletcher zone repeat of Western Flanks and A zone;
    -BH: Potentially a 40-year mine;
    -BH: Historically Western Mining Corporation found more than 200 drill holes with gold hits of 1m at 15g/t or better;
    -Red Hill, only 500m away produced 40,000oz at 20g/t between 1897 and 1907;
    -The underground decline at Beta Hunt stretches 8km to the bottom of the mine, 900m vertical below the surface;
    -To replicate the underground development would cost $300 million to $500 million.
    «New gold resurrects Beta Hunt – Western Australian
    Monday, 11 July 2016
    The discovery of a third major gold zone has given the historic Beta Hunt mine near Kambalda a new lease of life, nearly 50 years since it opened as a nickel mine.
    Private Australian company Salt Lake Mining resurrected Beta Hunt two years ago and it is now in the hands of Canada’s Royal Nickel Corporation after they completed a $C11.2 million cash-and-scrip takeover last month.
    The key was Salt Lake negotiating gold rights with South Africa’s Gold Fields, via an undisclosed royalty, which is looking like a master stroke amid this year’s gold price rally.
    Salt Lake’s business development manager Steve Devlin, a former St Ives geologist, said diamond drilling had intersected two distinct gold lodes containing more than 24m of mineralisation in excess of 2g/t.
    The Fletcher shear zone, as it has been named, was discovered within 300m of existing workings with the help of the State Government’s co-funded drilling campaign, which bankrolled an 858m hole to the tune of $116,000.
    Mr Devlin said the results “matched our theory perfectly”, proving the Fletcher zone is a repeat structure of the high-grade Western Flanks and A zone at Beta Hunt.
    “This is potentially a 40-year mine … it mirrors (the same area as) Beta Hunt,” he said. “It’s going to take time and money to explore but we’ve already pieced together the geology. Our hope is we’ve found a whole new Beta Hunt mine.”
    The optimism is being driven by a review of historical data, mostly drilling completed by Western Mining Corporation’s nickel division, which found more than 200 drill holes with gold hits of 1m at 15g/t or better.
    Beta Hunt opened as a nickel mine in 1973, barely 1km from the Silver Lake shaft that was Australia’s first nickel sulphide mine and launched the Kambalda nickel boom after its discovery in 1966.
    Even closer to Beta Hunt is Red Hill, only 500m away, the historic gold mine on which the original town was founded and produced 40,000oz at 20g/t between 1897 and 1907.
    Beta Hunt is also along strike from Gold Fields’ 1Moz Invincible discovery, considered one of the best finds in WA in years.
    The underground decline at Beta Hunt stretches 8km to the bottom of the mine, 900m vertical below the surface.
    To replicate the underground development would cost $300 million to $500 million.
    Beta Hunt general manager Chris Otto said production in the Western Flanks gold zone was due to begin in September. »
    http://www.goldfields.com/news_article.php?articleID=3626

    Red Hill Gold Mine History:
    I looked over Red Hill Gold Mine (Beta Hunt) history and it is a fascinating one at that. It was at the base of a gold rush with rich finds, first excerpt from https://www.revolvy.com/page/Lake-Lefroy: «In January 1897 alluvial gold was discovered at Red Hill, on the northern edge of the lake by the prospector Percy Larkin. His first parcel of 106 ounces (3,005 g) of gold was found near where Kambalda stands today. » Second, from http://www.nullarbornet.com.au/towns/kambalda.html: «Kambalda’s first modern settlement was located at the base of nearby Red Hill in 1897. The original Red hill settlement owed its existence to a prospector named Percy Larkin who discovered rich shoots of gold in the area. Larkin’s discovery immediately sparked a gold rush and during the next 10 years the Red Hill goldfield produced over 30,000 ounces of gold. During the field’s existence a number of fabulous mineral specimens were discovered [..] By 1908 Red Hill’s rich shoots of gold had become depleted and the settlement soon reverted to native bushland. » Finally, from https://www.mindat.org/loc-266303.html: «Historic gold mining area at the base of Red Hill, East Kambalda, on the shores of Lake Lefroy. Discovered in February 1897, resulting in an alluvial rush with estimates of 300 to 800 men attempting to locate gold in the area. By late 1897, leases had been pegged, and prospecting syndicates were sinking shafts on the numerous reefs. Considering the activity, little evidence exists today, and the area is further heavily disturbed by mining support infrastructure for nearby gold and nickel mines. One source provides a description of the early workings, as the visitor travelled across the Lake Lefroy salt-pan towards the workings: ‘The digging camps are visible some distance off, dotted amongst the timber on the edge of the lake, the hills from which rise to a good height at the back, and it is in a steep gully coming down from the hills that the best gold was got. There are a good many stores and tents, and apparently 200 or 300 people. The creek channel from which the gold was won is dry and rocky, with about 2 or 3 feet of soil and stones lying in it from which the gold was won…. crossing this gully is a north and south direction, partly parallel with the shore of the lake, is a porphyry dyke forming a rugged ridge, and in it and on the outside of some of the rocks, gold is plainly visible, and this extends to an island some distance from the shore’. »
    In conclusion, the Beta Hunt story is a fascinating one, that is gradually unfolding. Due diligence is an assessment process that often overlooks strategic information.
    Regards,

    #2228
    DD_KING
    Participant

    Listen for 15 seconds Eric Sprott, when your a big owner and you buy on the market what it means by @Rrooze on CEO.ca February 5th 2019:
    «Sprott… Video opens at the right spot. You only need to listen for 15seconds: https://www.youtube.com/watch?v=h8SGctygo_k&feature=youtu.be&t=3395+

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