New Brunswick Mining News


Japan breaks China's stranglehold on rare earth metals.

Japanese scientists have found vast reserves of rare earth metals on the Pacific seabed that can be mined cheaply, a discovery that may break the Chinese monopoly on a crucial raw material needed in hi-tech industries and advanced weapons systems.


Sinkholes, Explosions, and Earthquakes -- What is happening?


SLAM Makes New Gold Discovery

SLAM Exploration Ltd. is pleased to report a new bonanza gold discovery on its wholly-owned Menneval claims in New Brunswick. The new discovery is 30 km north of the Lavoie gold occurrence where trenching produced grab samples grading up to 493 g/t gold on SLAM's NW Gold project as reported January 9, 2012.

SLAM has named this new discovery the "Maisie Zone". It comprises 3 angular boulders of mineralized quartz with grab samples ranging from 5.16 to 118 g/t gold. These boulders are aligned with several other auriferous quartz boulders grading up to 0.367 g/t gold over a distance of 2500 m. Company geologists also found a quartz boulder grading 1.54 g/t gold that appears to represent a separate vein structure located at a distance of 5800 m. Assays are pending on additional prospecting samples. 

The Company is very encouraged by this new discovery. SLAM geologists have identified the widespread presence of auriferous quartz boulders in the vicinity of the bonanza grade Maisie Zone boulders. Only preliminary, reconnaissance prospecting has been completed to date. The Company is now following up with more detailed prospecting in preparation for a trenching program. Detailed prospecting is also in progress on the NW Gold project and is generating a number of new trenching targets in addition to the original Lavoie gold discovery. Both the Menneval and NW Gold projects have demonstrated significant gold potential. The Company will continue the prospecting campaign and expects to follow with trenching to test these sites. 


SLAM Finds More Gold-bearing Quartz Veins in St. Quentin

SLAM Exploration Ltd. reports the discovery of additional gold-bearing quartz boulders and veins at its recently acquired NW Gold project located near Saint Quentin, New Brunswick. Trenching revealed a series of quartz veins in bedrock over a strike length of 250 m, locally with visible gold and grab samples ranging up to 493 g/t gold as reported by SLAM in a press release dated January 9, 2012. 

The SLAM prospecting team has discovered a new site with angular quartz boulders and grab samples grading up to 1.86 g/t gold. This site is 480 m from the original Lavoie discovery and extends the potential strike length of this gold-bearing system to 580 m. A grab sample grading 0.75 g/t gold was collected from another quartz boulder 800 m from the discovery site. This boulder occurs near a series of quartz veins that outcrop and may represent a separate vein system on the property. Additional assays are pending on prospecting samples from these sites.

SLAM geologists are encouraged by this prospecting program. The gold-bearing structure is extended and additional quartz veins and structures have been identified. The Company will continue with the successful prospecting program and expects to follow with trenching to further test these sites as well as the original discovery.




GeoVenCap Begins Drilling on Silver Zones at California Lake (West of Bathurst)

GeoVenCap Inc. is pleased to announce that diamond drilling has commenced on its California Lake Silver Project located in northern New Brunswick to further delineate silver zones, called A and B, identified in previous drilling. A contract has been signed with Forages La Virole of Rimouski, Quebec to complete a 2000 meter drill program.

Historical drilling had tested the A Zone over a strike length of 579 meters with intersections reported ranging up to 6,987 g/t Ag (see March 26, 2012 news release). The A Zone remains open down dip and along strike to the northwest and southeast. Hole C-87-21, drilled on the northwest end of the A Zone intersected an estimated true width of 4.1 meters (41.1-45.3 meters down hole) grading 42.4 g/t Ag and 0.35 g/t Au, and 1.7 meters (90.1-91.7 meters down hole) grading 1,450 g/t Ag and 0.42 g/t Au. Hole C-87-28, drilled on the southeast end of the A Zone intersected an estimated true width of 6.1 meters (38.3-45.1 meters down hole) grading 106.2 g/t Ag and 0.15 g/t Au. Silver mineralization has also been identified by limited drilling to the southwest of the A Zone.



REE's Could Give Canada Political Advantages

The Canadian Chamber of Commerce has jumped on the bandwagon to promote Canadian rare earth projects and deposits, suggesting  Canada's REE resources could give the nation increased "political leverage and influence" in the search for rare earths outside of China.
In the report "Canadian Rare Earth Deposits Can Offer a Substantial Competitive Advance," The Canadian Chamber advocates an "opportunity for Canada to start punching above its weight in leveraging what is often referred to as the ‘oil of the 21st Century.'"
Chamber CEO Perrin Beatty observed, "Canada has 1.1 billion pounds of rare earths locked in black shale deposits (the Alberta Black Shale Project) worth an estimated $206 billion.  In addition, several other Canadian mines across the country show great potential."
"We have been blessed with great geology and we have a tremendous opportunity to turn out resource richness into a significant competitive advantage," he added.
 "With the Japanese, Americans and Europeans now searching for ways to counter China's monopoly, Canada is in a very enviable position," Beatty stressed.
In their report, the chamber noted Canada has 1.1 billion pounds of rare earth locked in the Alberta Black Shale Project, that were previously not recoverable unless large amounts of cyanide and arsenic were used to liquefy the ores-"a process that is considered dangerous and illegal in many parts of the world."
"Now, a new, more cost-effective and environmentally friendly technology that uses water, air and microbes (a technique known as bioheap leaching) can be used to release the rare earths from the black shale deposits," the report said.
The Chamber suggested several other Canadian mines show great potential including Avalon Rare Metals Nechalacho REE project in the Northwest Territories, Great Western Minerals Hoidas Lake Project in northern Saskatchewan, Midland Exploration's exploration project in Ytterby, Pele Mountain Resources' Eco Ridge Mine Uranium and Rare Earth Elements Project in Elliot Lake, Ontario, and Matamec Exploration's Zeus property in the Temiscamingue region of Quebec.
Other rare earth projects cited in the report include Quest Rare Earth Mineral's rare earth projects in Strange Lake and Misery Lake areas of northeastern Quebec, Cache Exploration's exploration of Welsford rare earth properties in New Brunswick and the Cross Hills and Louil Hills rare earth properties in Newfoundland, Kirrin Resources' exploration projects in Newfoundland and Labrador and Quebec, and Forum Uranium's North Thelon Project in Nunavut.




Northcliff Resources to Acquire 100% of Sisson

Northcliff Resources Ltd. of Vancouver will acquire full ownership of a New Brunswick base-metals project (Sisson) by purchasing the remaining 30 per cent share owned by Geodex Minerals Ltd. (TSXV:GXM).
Northcliff began building its stake in the Sisson tungsten-molybdenum project through a 2010 option agreement with Geodex.
Under the option agreement, Northcliff has the right to earn 70 per cent of the project by spending $17 million on exploration and other costs. That commitment is expected to be fulfilled by next month.
Under their new deal, Northcliff will get full ownership of the project by issuing 16 million of its common shares and paying $1 million cash to Geodex. Northcliff will also return about 3.3 million common shares of Geodex for cancellation.
The Geodex shares had been valued at 30 cents each when Northcliff acquired them but they've declined since then. On Wednesday, Geodex shares traded at eight cents on the TSX Venture Exchange.
Northcliff shares last traded on April 12 at 55 cents, giving the company a market value of $33.8 million.


Tungsten Continues to Rise

Few investors know that tungsten was the number one metals performer in the world last year, gaining 35% while most other metals declined in price.
Tungsten has retreated a bit so far in 2012 but the current price of about $425 per metric ton is still historically high. With demand increasing at a rate of about 8% a year and production declining,it’s likely that the price of tungsten is will rise over the next few years.
Tungsten is classified as a rare metal though it’s found in many countries. It is indispensable because of its many applications. It’s the second hardest material with the second highest melting point (diamonds ranks as first in both categories), and thus there are few materials that can be substituted for it. In the U.S. tungsten’s uses include tools and machinery primarily in the metal-working, construction, mining, and oil and gas drilling industries.  It is estimated that 25% of the use is in light filaments and 10% for artillery and weapons.
Why is tungsten rising in price? Like several other metals, the tungsten market has been controlled by China. Tungsten prices jumped 35% in 2011 and remain historically high. That is because of concerns that China, the leading producer and consumer, has been reducing exports. This concern is so great that in 2011, the UK Geological Survey put tungsten at the top of its list of economic metals whose supply is at risk. China has taken several steps to reduce production and exports of tungsten:  they have shut down small mines as unsafe, implemented export quotas, and added export duties.
It is not that easy to invest in tungsten.  There are two Canadian companies currently focused primarily on tungsten production.  Malaga, Inc. produces tungsten in Peru, and is increasing production.  The stock  trades at about 15 cents.  North American Tungsten is in production in the Northwest Territories, Canada.  It began production in 1962, and has shut down the mines several times when the tungsten price got too low.  It’s stock trades at about 43 cents. Geodex Minerals is an exploration company with properties in New Brunswick, Canada.  It is exploring for tungsten, molybdenum, rare earth elements, and other metals and minerals.
These are micro-cap companies, in other words, be prepared for volatility and risk, while hoping for gains. Further, with tungsten prices at highs, and the supply-demand characteristics, one can anticipate other companies making efforts to discover and produce tungsten.