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Redstar drill cuts multi-ouncegold at historic Unga property

www.MiningNewsNorth.com The weekly mining newspaper for Alaska and Canada's North Week of June 28, 2015

NEWS NUGGETSCompiled by Shane Lasley

l P U B L I C P O L I C Y

Strongbow refines Alaska tin project dealStrongbow Exploration Inc. June 22 reported that it has

finalized the terms of its acquisition of the Sleitat and CoalCreek tin properties in Alaska. The transaction will involveStrongbow buying the tin properties, from Osisko GoldRoyalties Ltd. and Strongbow Director Ronald Netolitzky.Netolitzky has been involved with Thor Gold, a former sub-sidiary of Solomon Resources Ltd., since the 1980s. Osiskoacquired an interest in the Sleitat and Coal Creek propertiesthrough the 2010 purchase of Brett Resources Inc., a formerexplorer of the two Alaska tin projects. Thor holds a 20 per-cent undivided interest in the Sleitat property and Brettholds the remaining 80 percent undivided interest in Sleitatand a 100 percent interest in the Coal Creek property. Theagreement contemplates the direct acquisition of the proper-ties by Strongbow, rather than the acquisition of Brett andThor as originally announced in March. Total considerationfor the acquisition of the properties remains unchanged.Strongbow has agreed to issue 5 million shares to Brett and1.5 million shares to Thor. Additionally, Brett will be grant-ed a 1.75 percent net smelter return royalty, and Thor willreceive a 0.25 percent NSR on the properties. Osisko willhave a first right of refusal on the sale of any future royaltieson any of its properties. Strongbow plans to complete a non-brokered private placement of at least C$1 million, of whichOsisko has agreed to subscribe for C$200,000. The closingof the acquisition and financing will result in Osisko andBrett holding a combined 7 million shares of Strongbow, or27.3 percent of the post-closing issued shares of the compa-ny. Prior to closing the deal, Strongbow will seek sharehold-er approval to create Osisko as a “control person” (asdefined by the TSX Venture Exchange policies) at a share-holders meeting scheduled for July 22.

NovaCopper buys Sunward, bolsters cashNovaCopper Inc. June 19 said it has completed acquisi-

tion of all of the issued and outstanding common shares ofSunward Resources Ltd. To complete the transaction,Sunward shareholders were issued 0.3 of a NovaCoppercommon share for each Sunward common share held.Sunward is now a wholly-owned subsidiary of NovaCopper.

see NEWS NUGGETS page 17

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Halting mission creepMurkowski uses Appropriations chair to reign in EPA, overreaching feds

By SHANE LASLEYMining News

A s chairman of the U.S. Senate Energy andNatural Resources Committee, U.S. Sen.

Lisa Murkowski, R-Alaska, provides the 49thState a strong voice when mining issues are dis-cussed on Capitol Hill. Her chairmanship of a less-er known appropriations subcommittee that holdsthe checkbook for the Environmental ProtectionAgency and Interior Department, however, also isproving to be a powerfulweapon in reigning in whatmany consider as overreachby these regulatory bodies.

“The AppropriationsCommittee is just one of thetools that Congress has todirect priorities in federalspending, and I believe thisyear’s Interior budget strikesa better balance and sets abetter agenda for states like Alaska,” Murkowskisaid.

As chairwoman of the Interior, Environmentand Related Agencies AppropriationsSubcommittee, Murkowski ensured that the 2016Interior appropriations bill provided ample moneyfor critical services such fighting wildfires, whilecutting funds from contentious programs seen asunduly burdensome to mining and other develop-ment in Alaska.

Mission creepMurkowski leveraged her position as chair of

the appropriations subcommittee to defund EPA’scontroversial Waters of the United States rule, aninitiative the senator sees as a “showstopper” forAlaska.

Broadly, the 299-page Clean Water Rule rolledout by the Obama Administration in May protectsnavigable waters, their tributaries and nearby

waters. Tributaries include anything that has thefeatures of a stream – a bed, bank, and ordinaryhigh-water mark – even if it does not flow year-round. Nearby waters include wetlands and otherwatery features within 1,500 feet of navigablewaters also are covered under the rule.

“This expansion of the definition of ‘WOTUS’is the latest and costliest example of mission creepfrom this administration, and it is one of the high-est concerns for Alaskans statewide right now,”Murkowski said.

The reason for this elevated concern is thatroughly 130 million acres of Alaska – an arearoughly the size of California and New York com-bined – is covered by tundra, permafrost, marshes,bogs, and other similar wetland areas.

While EPA’s potential jurisdictional expansionunder WOTUS is of concern to companies hopingto develop some of Alaska’s vast mineralresources, Murkowski says the rule has implica-tions across many sectors of Alaska’s economy.

“Whether you are a developer in Fairbanks sim-ply trying to build a store three quarters of a mileaway from the Chena River, the State of Alaskaseeking to repair the Dalton Highway, or a hydro-kinetic engineer in the Alaska panhandle trying tosupplement our power grid to lower energy prices,the EPA’s new rule will hold you back and add tothe price tag,” the senator explained.

“My language in (this) bill will block any EPAfunds from implementing this show stopper …,”she added.

In addition to attempting to block implementa-tion of the Clean Water Rule, the 2016 Interiorappropriations bill has a number of other measuresaimed at helping Alaska’s mining sector.

The bill includes language aimed at: Preventing EPA from placing costly bonding

requirements on the mining industry that duplicatesimilar bonding by the Bureau of LandManagement, U.S. Forest Service and State of

SEN. LISA MURKOWSKI

see MISSION CREEP page 17

SHA

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LASL

EY

12NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JUNE 28, 2015

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l T R A N S - B O U N D A R Y R E L A T I O N S

BC mines raise ireof environmentalistsProvince celebrates sixth new mine, conservation groups decryissuance of final Red Chris permit, vow to slow momentum at KSM

By SHANE LASLEYMining News

The Red Chris copper-gold mine innorthwestern British Columbia has

received final approvals necessary for com-mercial operation, marking the sixth newmine to open in the western province since2011.

“This is a significant achievement madepossible through a tremendous amount ofcollaboration between Imperial MetalsCorp., the Tahltan Central Council and thisgovernment,” B.C. Minister of Energy andMines Bill Bennett said June 19 whileannouncing full production at Red Chris.“This mine will provide hundreds of good-paying jobs for members of the TahltanNation and residents of the nearby commu-nities.”

While British Columbia is celebratingthe jobs and revenue another mine willbring to the province, conservationists andothers in Southeast Alaska are worriedabout the downstream repercussions of thissuccess.

“Red Chris is one of several B.C. minesproposed for the transboundary regionstraddling Alaska that have raised the pub-lic’s ire,” said two Southeast Alaska conser-vation groups, United Tribal TransboundaryMining Work Group and Salmon BeyondBorders, in a joint statement.

Another six projects in northwesternB.C. – Brucejack (Pretium Resources),Kerr-Sulphurets-Mitchell (SeabridgeGold), Tulsequah Chief (Chieftain Metals),Schaft Creek (Copper Fox Metals-TeckResources), Galore Creek (Novagold-Teck)and Kisault (Avanti Mining) – are in vari-ous stages of advanced exploration.

Of these, the Kerr-Sulphurets-Mitchell(KSM) has received its permits and is a pri-mary target of environmental groups.

Rob Sanderson Jr., co-chair of theUnited Tribal Transboundary Mining WorkGroup, claims “the B.C. government isignoring the rights and concerns of those ofus who live in Southeast Alaska” when issu-ing permits for upstream mines.

Southeast Alaska conservation groupspoint to last year’s failure of a tailings stor-age facility at Imperial’s Mount PolleyMine in central B.C. as evidence that broad-er oversight, such as the International JointCommission, is needed.

Red Chris milestoneCommissioning of Red Chris began

under conditional permits at the beginningof 2015. By March, Imperial Metals Corp.,owner of the new mine, reported that thefirst shipments of copper concentrate werebeing trucked to the Port of Stewart innorthwestern British Columbia.

The project, however, needed an amend-ed environmental management act permit inorder to discharge into the tailings storagefacility and release treated water from thefacility, an authorization issued by the B.C.government on June 12.

“Receipt of our final Mines Act permit atRed Chris is another milestone in our pathtoward establishing Imperial as a majoremployer and industry player in theprovince of British Columbia,” saidImperial Metals CEO Brian Kynoch.

Based on reserves of more than 300 mil-

lion metric tons of ore grading 0.36 percentcopper and 0.27 grams per metric ton gold,a mine at Red Chris is projected to produce2.1 billion pounds of copper and 1.32 mil-lion ounces of gold over an initial 28-yearmine-life.

The mine – located 80 kilometers (50miles) south of Dease Lake – will employaround 350 workers, including many FirstNations people from this region of north-western B.C.

“Expanding the mine to its intendedcapacity will make the jobs, training andother benefits that we are using to build ourNation possible,” said Tahltan CentralCouncil President Chad Day.

Earlier this year, members of the TahltanCentral Council, the governing body of theTahltan First Nation, voted to accept a co-management agreement with ImperialMetals and Red Chris Mine.

“From here on, our environmental over-sight role – an important part of our agree-ment – will also start to expand,” explainedDay.

Prior to reaching an agreement withImperial, Tahltan Central Council hiredKlohn Crippen Berger to review the tailingsimpoundment design.

During its site inspection, the engineer-ing firm could only inspect the “NorthStarter Dam” as the more permanent Northand South dams have yet to be constructed.

The engineers that visited Red Chris saidthe starter dam is appropriately designedand a visual inspection showed none of thetelltale signs of instability.

“The dam appears to be well construct-ed,” the engineers concluded in a report forthe Tahltan.

Above extra scrutiny of the dam design,B.C. Mines Minster Bennett expressed con-fidence that water quality at Red Chris willbe closely monitored.

“I have no doubt … that (waste) water isgoing to be managed carefully, and in sucha way that people downstream, includingour neighbors in Alaska, can have confi-dence that we’re doing everything that anyresponsible jurisdiction should do,” he toldthe Vancouver Sun.

Next up: KSMAs Red Chris ramps up to commercial

production, Earthworks has joinedSoutheast Alaska conservation groups intrying to halt any momentum at Seabridge’sKSM project.

To discourage investors and potentialpartners, Earthworks, United TribalTransboundary Mining Working Group andSalmon Beyond Borders published a reportfocused on potential risks of developing thelarge copper-gold project located about 22miles east of the Alaska-B.C. border.

Over the past decade, Seabridge has out-lined 9.9 billion pounds of copper and 38.2million ounces of gold in reserves at KSM.

“Based on the 2012 preliminary feasibil-ity study, we project a 52- to 55-year miningoperation at 130,000 (metric) tons per day,”according to Brent Murphy, vice presidentof environmental affairs, Seabridge Gold.

Churning out a projected 850,000ounces of gold and 195 million pounds ofcopper annually during the first five years

see BC MINES page 13

13NORTH OF 60 MINING

PETROLEUM NEWS • WEEK OF JUNE 28, 2015

Shane Lasley PUBLISHER & NEWS EDITOR

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North of 60 Mining News is a weekly supplement of the weekly newspaper, Petroleum News.

NORTHERN NEIGHBORSCompiled by Shane Lasley

Sabina publishes Back River feasibilitySabina Gold & Silver Corp. June 22 published on SEDAR a feasibility

study for its Back River gold project in Nunavut. Highlights from the feasibil-ity study were originally released by the company in May. The technicalreport describes a 6,000-metric-ton-per-day mill producing an average ofaround 346,000 ounces of gold annually over a 10-year mine life. The orewould come from a combination of open pit and underground mining, with thebulk of the material coming from the open pit. The mine described in thestudy is expected to mill some 19.8 million metric tons of ore at an averagegrade of 5.7 grams of gold per metric ton and metallurgical recoveries of 93percent. The per-ounce cost of producing the gold is estimated to be US$535and all-in cost, including sustaining capital, is expected to total US$648/oz ofgold produced. The feasibility study estimates that such a mine at the BackRiver project could generate a post-tax internal rate of return of 21.7 percentand net present value (at 5 percent discount rate) of C$539 million. The mineis expected to generate post-tax net cash flow of C$914 million over its 10-year life with a payback period of 2.2 years. A US$1,200 gold price and US-Canadian exchange rate of 0.87 were used for the study. “The FS demon-strates the opportunity for Back River to become a significant gold producerusing conservative assumptions, generating robust economics in one of thebetter mining jurisdictions in the world,” said Bruce McLeod, President &CEO. “The high-grade nature of the deposits provide scalable opportunitiesthat could enable us to develop the project in a manner that works in the cur-rent challenging capital markets environment, and we are continuing to assessthese options. Meanwhile, we are also de-risking Back River by moving theproject forward through the environmental assessment process and aim tohave our final environmental impact statement filed by the fourth quarter thisyear.”

Atac resumes drilling at Rackla GoldAtac Resources Ltd. June 22 said it has begun the first phase of 2015

drilling and exploration at its Rackla Gold project in the Yukon Territory. Thephase-1 work will focus on expanding the Carlin-type gold discoveries at theConrad zone and Anubis cluster within the Nadaleen Trend. The objectives ofthis roughly C$3-million program include: shallow diamond drilling to contin-ue testing the eastern portion of the Conrad Upper zone; drilling target at theuntested area between the Conrad Upper and Middle zones; step-out drillingfrom hole OS-14-230 which intersected 42.67 meters of 3.03 grams per metricton gold at the newly discovered Conrad Lower zone; and rotary air blastdrilling targeting the more than 20 geochemical anomalies and structures thatlie beneath a thin cover of overburden within the Anubis cluster. “The 2015exploration and drilling program is designed to cost-effectively expand miner-alized zones at Conrad and refine targets within the Anubis Cluster for futuredrilling,” said Atac CEO Graham Downs.

Goldstrike sees more VG at Gold DomeGoldstrike Resources Ltd. June 22 reported that multiple grab samples with

Contact North of 60 Mining News:Publisher: Shane Lasley • e-mail: publisher@MiningNewsNorth.com

Phone: 907.229.6289 • Fax: 907.522.9583

of operation, and 500,000 ounces of goldand 150 million pounds of copper per yearfor the next five decades, KSM has thepotential to be a boon to the economy ofnorthwestern B.C.

The conservation groups contend thatlong-term metals prices and environmentalrisks to streams flowing into Alaska weighon the feasibility of developing a mine atKSM.

These groups rallied in protest of KSMat Seabridge’s June 24 annual shareholdermeeting in Toronto.

The downstream concerns of Alaskanswere addressed in a CanadianEnvironmental Assessment Agency reporton KSM.

“The agency is satisfied that identifiedmitigation measures for the project wouldaddress potential impacts in Alaska on fish;recreational and commercial fisheries andhuman health from changes to water qualityand quantity in the Unuk River,” CEAAwrote.

While the four deposits that are includedin the current mine plan – Kerr, Sulphurets,Mitchell and Iron Cap – are located in anarea drained by the Unuk River, the pro-cessing and tailings storage facilities arelocated in an area drained by the NassRiver, which runs to the south and does notcross the Alaska border.

Seabridge’s Murphy pointed out that theMitchell deposit is already flowing natural-ly occurring acid rock drainage into a tribu-tary of the Unuk River. Removal of the sul-fur and metal-bearing ore, along with thewater management required by environ-mental law, is expected to stem the flow ofacidic and metals-laden waters currentlyflowing into the river.

“Because of the fact that once we go intothe Mitchell Valley, we have to contain andtreat all contact water, we predict that waterquality in the Unuk River will actuallyimprove – it is currently very poor,” henoted.

On the economic side of the equation,Seabridge notes that the all-inclusive coststo mine KSM is estimated to be less thanUS$700 per ounce of gold produced andother mines with similar reserve grades areturning a profit at today’s metal prices.Additionally, the preliminary feasibilitystudy does not account for the recently dis-covered higher grade core zones at KSM.

Seabridge plans to update the feasibilitystudy with current metals prices, costs andother inputs later this year.

The company, meanwhile, is continuingpartnership talks with a number of majorminers who have signed confidentialityagreements for KSM – discussions that arebolstered by the fact that KSM has receivedfinal approval of its environmental assess-ment application by both the provincial andfederal governments. l

continued from page 12

BC MINESsee NORTHERN NEIGHBORS page 18

l E X P L O R A T I O N

Redstar cuts high-grade

gold at Unga propertyEarly 2015 drilling confirms continuity, seeks to expand knownvein structure in Shumagin; explorer is eager to return for phase 2

By SHANE LASLEYMining News

W ith intercepts of up to 5.9 ouncesper short ton gold over widths of

more than six feet, Redstar Gold Corp.’sfirst round of 2015 drilling at Unga isreminiscent of the long history of thishigh-grade gold project in SouthwestAlaska.

Located on an island just off theAlaska Peninsula, Redstar’s Unga proper-ty blankets two parallel trends of high-grade epithermal gold veins that eachextend for more than 4.5 miles across thesoutheast corner of Unga Island.

The Apollo-Sitka trend is home to thehistoric Apollo gold mine, consideredAlaska’s oldest hardrock gold operation.

In a 1914 book titled “Alaska, its

meaning to the world, its resources, itsopportunities,” early 20th Century histo-rian Charles Tuttle wrote, “From avail-able data, it may be stated that the earliestdiscoveries of gold in Alaska, in anythinglike paying quantities, were made inwidely scattered locations, and werequartz lodes, not placers. The ApolloMine on Unga Island, off the westernshores of Alaska, probably was the first ofthese discoveries.”

The historic Apollo and Sitka minesproduced some 150,000 ounces of goldfrom high-grade veins on the Apollo-Sitka trend between 1891 and 1922.

While the Unga project providesRedstar with a number of exploration tar-gets, the Vancouver B.C.-based explorer

see UNGA DRILLING page 15

ALA

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The historic Apollo and Sitka mines on Unga Island just off the Alaska Peninsula producedroughly 150,000 ounces of gold from high-grade veins between 1891 and 1922.

By CURT FREEMANFor Mining News

The world’s mining industry hasonce again transmogrified itself in

the face of changing global metals mar-kets and investor expectations.

In a recent Reuters report, severalcompanies, including Newmont MiningCorp., Goldcorp Inc. and Yamana GoldInc., were singled out as having takensteps to bring smaller, leaner, lower out-put projects into production to avoid thecost over-runs which have plagued thelarge multibillion-dollar projects inrecent years. The same large mine proj-ects also tend to have the highest proba-bility of becoming bogged down insocial issues, including labor unrest,political issues and environmental oppo-sition. Evidence for this “smaller is bet-ter” movement includes a 15 percentdrop in the average annual gold outputfrom mines newly commissioned in2014 versus the previous five-year aver-age. This production decline coincideswith a decrease in the average size ofdebt and equity financings, which fell toan average of $128 million, the lowestlevel in more than seven years. Does thismean that companies are no longer inter-ested in large projects? Decidedly not!However, it may signal an increasedinterest in good grade, moderate-sizeprojects that appealed to few miningcompanies in the past decade.

Western AlaskaGRAPHITE ONE RESOURCES

announced the acquisition for cash andstock of 28 State of Alaska miningclaims that give it unfettered right tomine 100 percent of the graphiteresource that it has outlined at theGraphite Creek project during the pastfew years. The claims were acquiredfrom noted Alaska geologist RonSheardown, who will become a memberof the company’s advisory board. Theacquisition puts to bed the question ofwhether graphite could be mined from20 claims the company had acquiredthrough lease from Kougarok LLC. TheU.S. Bureau of Land Management held

that the 20 claims in question werestaked at a time when only metalliferousminerals could be acquired by staking,and graphite was not considered a metal-liferous mineral. The State of Alaskaover-selected the lands in question andits mining regulations make no such dis-tinction so the question of whether ornot graphite is a metalliferous mineral isnow moot. Thus endeth our Mining Law101 lesson for today.

NORTHERN DYNASTY MINERALSLTD. reported that a federal court hasrejected an EPA motion to dismiss thePebble Partnership’s lawsuit that accusesthe EPA of violating the FederalAdvisory Committee Act in advancing itsBristol Bay Watershed Assessment studyand a subsequent pre-emptive veto underSection 404(c) of the Clean Water Act.This leaves in place a preliminary injunc-tion granted in November 2014 that for-bids the EPA from advancing any actionunder 404(c) affecting the Pebble projectuntil the case in question runs its course.

REDSTAR GOLD CORP. announcedresults from two of the eight holes itdrilled at the Shumagin zone of its Ungagold project near Sand Point in westernAlaska. Hole 15SH011 intersected 1.9meters grading 202 grams per metric tongold and 82 g/t silver, while hole15SH012, drilled from the same pad,intersected 7.3 meters grading 11.8 g/tgold and 72.7 g/t silver, including 2.0meters grading 25.3 g/t gold and 209 g/tsilver and an additional 3.0 meters grad-ing 16.95 g/t gold and 183 g/t silver. Thecompany indicated that four of the eightholes completed so far are designed toconfirm and clarify mineralization withinareas of the Shumagin zone where previ-ously drilling has occurred, while theother four holes are designed to extendthe zone 100 meters along strike to thenortheast. The company also noted thatalthough assays were only available forthe first two holes, the Shumagin veinsystem had been encountered in all eightof the holes drilled. This vein consists ofhigher grade material within cockade tocolloform textured quartz-adularia-

rhodocrosite-green clay veins within abroader envelope of sulfide mineraliza-tion. The steeply dipping vein systemaverages seven to 10 feet thick and issurrounded by quartz-sericite-pyrite veinsand stockwork, commonly extending formore than 10 meters into the hangingwall. Pending the results of the other sixholes, the company is planning a phase 2drilling program for later in the year.

Interior AlaskaNORTHERN EMPIRE RESOURCES

CORP. and joint venture partnerSONORO METALS CORP. announcedthe completion of the field work for itsphase 1 2015 exploration program at theHilltop gold project in the westernRichardson District. Work completed inphase 1 includes submission and receiptof a multi-year exploration permit, 13.2kilometers of road improvement to pro-vide better crew and equipment access topriority zones, excavation, mapping andsampling of eight trenches over a totalstrike extent of 213 meters, completionof six test pits in areas with prospectivegeology and/or hosting anomalous his-toric results from previous explorationgroups, initial prospecting and reconnais-sance work, which includes visiting thelocations of anomalous sample sitestaken on the property by previous explo-ration groups and collection of 228 rocksamples and 397 soil samples including61 due diligence top-of-bedrock soilsamples and 336 B-horizon enzymeleach soil samples. Results are pending.

ENDURANCE GOLD CORP.announced that a 2015 exploration pro-gram has commenced on its 4,960-acre(12,850 square kilometers) ElephantMountain gold property in the RampartDistrict. Exploration has confirmed anintrusive-hosted target area of at least 1.8kilometers by 0.6 kilometers in sizeencompassing two gold-arsenic soil androck sample anomalies (the North andSouth Zones) and an untested IP charge-ability anomaly (the Central Zones)located between the two soil anomalies.The 2015 program consists of grid soilauger sampling that will focus on theCentral and South zones to better defineand prioritize targets for diamonddrilling.

Alaska RangeCOVENTRY RESOURCES INC.

announced that it had completed financ-ing for its Caribou Dome copper projectin the Valdez Creek District and startedits planned ground geophysics program.In addition to ground geophysics,planned work in 2015 includes furtherdiamond drilling, additional soil sam-pling and geologic mapping. The drillingwill focus on confirming results of pre-vious drilling to allow historic results tobe incorporated into a mineral resourceestimate and to conduct exploration ofsome of the high-priority targets thathave yet to be drilled, including theLense 2 target that is up to 15 meterswide and more than 200 meters of strike.This target coincides with a strong 350-meter-long induced polarization geo-physical anomaly. The current geophysi-cal survey will include electromagneticsurveying over all nine known lenses ofmineralization. Ground electromagneticshas never been employed at the project,

l C O L U M N

Less may be more in turbulent down cycleMining companies are increasingly focused on good grade, moderate-size projects that have remained sidelined during past decade

14NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JUNE 28, 2015

Helicopter ChartersExploration | Survey | Slung Cargo | Tours | Film

(907) 745-57011415 N. Local 302 Rd., Suite C

Palmer, AK 99645helicopter@LFAV.com

www.LFAV.com

TheauthorThe author

Curt Freeman,CPG #6901, is awell-known geol-ogist who lives inFairbanks. He pre-pared this column CURT FREEMANJune 22. Freeman can be reached bymail at P.O. Box 80268, Fairbanks, AK99708. His work phone number atAvalon Development is (907) 457-5159and his fax is (907) 455-8069. His emailis avalon@alaska.net and his website iswww.avalonalaska.com.

see FREEMAN page 15

believes the Shumagin Trend, which liesabout two miles northeast of Apollo-Sitka, provides the best balance of riskversus exploration potential.

Continuity provenTrenching and drilling in the

Shumagin prospect area has traced high-grade gold-silver veins for more than1,200 meters along strike and to a depthof 330 meters.

In 2000, SRK Consulting calculated anon-NI 43-101-compliant resource for aportion of this prospective area of254,000 metric tons averaging 27.4 g/tgold and 127 g/t silver for the Shumaginvein.

Three holes drilled by Redstar in thisresource area during 2011 continued to hithigh gold grades: 29.65 meters of 14.98g/t gold and 11.5 g/t silver in hole11SH010; 4.0 meters of 11.7 g/t gold and10.2 g/t silver in hole 11SH009; and 1.0meter of 43.9 g/t gold and 18.5 g/t silverin hole 11SH007.

The first four holes of Redstar’s phase-1 program this year, which targeted vari-ous structural elevations of the Shumaginvein system within the resource area, cuthigh-grade gold mineralization whereexpected.

Hole 15SH011 cut 1.9 meters grading5.89 oz/t gold and 2.4 oz/t silver over 1.9

meters;Hole 15SH012 cut three intercepts –

1.03 oz/t gold and 6.1 oz/t silver over 2.0meters, 0.49 oz/t gold and 5.3 oz/t silverover 3.0 meters, and 3.88 oz/t gold and12.3 oz/t silver over 0.7 meters;

Hole 15SH013 cut 4.0 meters of 11.62g/t gold and 95.6 g/t silver; and

Hole 15SH014 cut 3.0 meters with9.86 g/t gold and 8.0 g/t silver.

“The success of the infill drill holescorroborates and greatly enhances ourunderstanding of the high-grade mineral-ization reported by previous operators,”said Redstar Chairman JacquesVaillancourt.

Redstar interim CEO Ken Booth toldMining News that the holes drilled duringphase 1 proves that there is continuity ofstructure and very high-grade gold.

“If (Redstar) or somebody else wantsto tighten up that area and starts to worktowards a resource – measure and indicat-ed or inferred – there is a very goodchance the drilling is going to producesimilar results,” he said.

With the remaining four holes, Redstarhopes to show that the vein structure andhigh-grade gold continues along strike tothe northeast for at least another 100

meters.While assay results are still pending

from this step-out drilling, Booth said themineralized structure was cut in all fourholes.

Do the grades encountered in the infilldrilling carry out to the holes? Booth saidthe answer to that will be revealed whenthe assays are released, expected within aweek.

“We look forward to seeing the resultsof the final four holes in the program thattargeted areas outside of known mineral-ization,” said Vaillancourt.

Expanding ShumaginAs assays roll in from the first round of

2015 drilling, Redstar is eager to get start-ed on phase-2 of the 2015 program.

Booth said the drill used during the ini-tial 2015 program is staged at Sand Point,a community about seven miles north ofthe eastern end of the Shumigan trend onneighboring Popof Island. With the rigstaged nearby and the camp ready, thecompany anticipates a quick mobilizationwhen the company is ready for round 2 of2015 drilling.

The primary objective of the next stageof drilling is to continue tracing the

Shumigan vein along strike.An outcrop to the northeast shows that

the Shumagin vein carries for at least 350meters beyond the outermost step-outhole of phase-1. A hole drilled at this out-crop in the 1980s cut 37.7 g/t gold and20.6 g/t silver over 0.76 meters; and 11.48g/t gold and 15.1g/t silver over 1.21meters.

“The phase-2 program – 1,500-plusmeter – will be dedicated almost entirelyto step-out holes to the northeast,” Boothexplained.

The interim Redstar CEO said the sec-ond round of drilling also may include acouple of step-out holes to the southwest.

Redstar believes the eight or so holescompleted during this second round ofdrilling will show that the high-gradestructure is continuous for at least 1,000-1,500 meters, at which point further infilldrilling could produce a sizeable high-grade resource for the Shumaginprospect. The historic resource calculatedby SRK and the assay certificates held byRedstar will go a long way toward calcu-lating a new NI 43-101-compliantresource for the Shumagin prospect.

Redstar hopes to kick off phase-2 inAugust, dependent on financing. l

and is expected to facilitate the accuratedefinition of drill targets. Additionalelectromagnetic surveying and/or con-trolled-source audiomagnetotelluricsand/or induced polarization ground geo-physics will be undertaken over otherhigh-priority targets along strike fromthe known mineralization. Many ofthese targets coincide with highly anom-alous copper-in-soil geochemistry.Following the planned two-week geo-physical program, the company will pri-oritize targets in preparation for anearly-July drilling program.

Southeast AlaskaCONSTANTINE METAL

RESOURCES LTD. and partner DOWAMETALS & MINING CO., LTD. reportedthat the US$5 million Palmer project2015 exploration program has com-menced. The program plans about 6,000meters of diamond drilling to be com-pleted with two drill rigs. Drilling willbe focused on resource growth, withholes targeting the lower elevations ofthe recently updated, and significantlyexpanded, inferred mineral resource of8.1 million metric tons grading 1.41 per-cent copper, 5.25 percent zinc, 0.32 g/tgold and 31.7 g/t silver. The resource isopen to expansion in most areas, withthe thickest part of the deposit located atthe current down-dip limit of the SouthWall Zone. The thickening trend of thedeposit in this direction, combined withmineral zoning and borehole geophysi-cal data, support the potential for a cop-per-rich core zone within the LowerOffset target, located below the Kudofault. This target, and the open strikeextensions of the thick SW EM Zoneresource, represent the priority targetareas for the 2015 drill program. Otherwork planned for the 2015 seasonincludes borehole geophysical surveysand environmental and geotechnicalstudies. l

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PETROLEUM NEWS • WEEK OF JUNE 28, 2015

Corporate Partners $1k+ABR Inc.Alaska Rubber & Supply Inc.Alaska Wildland AdventuresBristol Bay Native CorporationFairweather LLCFlint Hills Resources AlaskaFred Meyers

715 L Street . Suite 100 . Anchorage, AK 99501 . alaska@tnc.org . 907-276-3133 . nature.org/alaska

Conserving the lands and waters on which all life depends

In Alaska,the environment is the economy

Corporate Catalysts $50k+ ConocoPhillips Alaska Inc.

Corporate Leaders $25k+ Alaska Airlines & Horizon Air . BP . Petroleum News

Corporate Council on the Environment

The business leaders supporting our Corporate Council on the Environment value innovative science, creative solutions and a sustainable future for Alaska’s natural wealth of fish and wildlife.

Jenner & Block LLPLGL Alaska Research Associates Inc.NANA Development CorporationNorthern Economics Inc.Pacific Star EnergyStoel Rives LLPTrident Seafoods CorporationUdelhoven Oilfield System Services Inc.

We thank these businesses for sharing our vision of a healthy environment and a vibrant economy for many generations to come.

Photo: Volunteers from ConocoPhillips help to restore a salmon stream in the Mat-Su. © Clark James Mishler

continued from page 14

FREEMAN

continued from page 13

UNGA DRILLING

Mining Companies

Kinross Fort Knox/Fairbanks Gold Mining Inc.Fairbanks, AK 99707Contact: Anna Atchison, Manager, Community and Government RelationsPhone: (907) 490-2218 Fax: (907) 490-2290E-mail: anna.atchison@kinross.comWebsite: www.kinross.comLocated 25 miles northeast of Fairbanks, Fort Knox isAlaska’s largest producing gold mine; during 2011, FortKnox achieved 5 million ounces of gold produced, amodern record in Alaska mining.

Usibelli Coal MineFairbanks, AK 99701Contact: Bill Brophy, VP Customer RelationsPhone: (907) 452-2625 • Fax: (907) 451-6543Email: info@usibelli.comWebsite: www.usibelli.comOther OfficePO Box 1000Healy, AK 99743Phone: (907) 683-2226Usibelli Coal Mine is headquartered in Healy, Alaskaand has 700 million tons of coal reserves. UCM producesan average of 2 million tons of sub-bituminous coaleach year.

Service, Supply & Equipment

Alaska Analytical Laboratory1956 Richardson HighwayNorth Pole, AK 99705Phone: (907) 488-1266 • Fax: (907) 488-077E-mail: jlovejoy@mappatestlab.comEnvironmental analytical soil testing for GRO, DRO,RRO, and UTEX. Field screening and phase 1 and 2 siteassessments also available.

Alaska Rubber & Rigging Supply5811 Old Seward Hwy.

Anchorage, AK 99518Contact: Mike Mortensen, General ManagerPhone: (907) 562-2200Fax: (907) 561-7600E-mail: info@alaskarubber.comWebsite: www.alaskarubber.com.Alaska’s largest supplier of hydraulic and industrial hosesold in bulk or assembled to spec. We also stock a largeselection or wire rope, crane rope, lifting and trans-portation chain, sold in bulk or assembled to spec. Wefabricate synthetic lifting slings, and supply shackles &rigging hardware. We sell and perform field installs ofconveyor belting. We are Arctic Grade product special-ists. We sell and service a wide variety of hydraulic,lubrication, fueling and pressure washing equipment.We sell high pressure stainless instrumentation fittingsand tube, sheet rubber, v-belts, pumps, Enerpac equip-ment, Kamlocks, plumbing fittings, and much more.We perform hydro testing up to thirty thousand psi, &pull testing up to 350 thousand pounds. All testingcomes standard with certification & RFID certificationtracking capabilities.

Alaska Steel Co.6180 Electron DriveAnchorage, AK 99518Contact: Joe Pavlas, outside sales managerPhone: (907) 561-1188Toll free: (800) 770-0969 (AK only)Fax: (907) 561-2935E-mail: j.pavlas@alaskasteel.com Full-line steel and aluminum distributor. Complete pro-cessing capabilities, statewide service. Specializing inlow temperature steel and wear plate.

Arctic Wire Rope & Supply6407 Arctic Spur Rd. Anchorage, AK 99518Contact: Mark LamoureuxPhone: (907) 562-0707Fax: (907) 562-2426Email: mark@arcticwirerope.comWebsite: www.arcticwirerope.comArctic Wire Rope & Supply is Alaska largest and mostcomplete rigging supply source. Our fabrication facility

is located in Anchorage with distribution Fairbanks. Wespecialize in custom fabrication of slings in wire rope,synthetic webbing/yarn , chain and rope. Radio-Frequency Identification (RFID) is available for all of ourfabricated products. In addition, we offer on-siteinspection and splicing services. We carry a large inven-tory of tire chains for trucks and heavy equipment.

Austin Powder CompanyP.O. Box 8236Ketchikan, AK 99901Contact: Tony Barajas, Alaska managerPhone: (907) 225-8236 • Fax: (907) 225-8237E-mail: tony.barajas@austinpowder.comWeb site: www.austinpowder.comIn business since 1833, Austin Powder providesstatewide prepackaged and onsite manufactured explo-sives and drilling supplies with a commitment to safetyand unmatched customer service.

Calista Corp.5015 Business Park BlvdSuite 3000Anchorage, AK 99503Phone: (907) 275-2800Fax: (907) 275-2919Website: www.calistacorp.com

Construction Machinery Industrial, LLC 5400 Homer Dr.Anchorage, AK 99518Phone: (907) 563-3822Fax: (907) 563-1381Website: www.cmiak.comFairbanks officePhone: 907-455-9600 Juneau officePhone: 907-780-4030 Ketchikan officePhone: 907-247-2228 Sales and service for heavy equipment for construction,logging, aggregate, mining, oilfield and agriculturalindustries throughout Alaska. CMI represents morethan 40 vendors, including Volvo, Hitachi, Atlas Copco,

D I R E C T O R YCompanies involved in Alaska andnorthwestern Canada’s mining industry

see DIRECTORY page 12

17NORTH OF 60 MINING

PETROLEUM NEWS • WEEK OF JUNE 28, 2015

and Ingersoll-Rand.

GCI Industrial Telecom Anchorage:11260 Old Seward Highway Ste. 105Anchorage, AK 99515Phone: (907) 868-0400Fax: (907) 868-9528Toll free: (877) 411-1484Web site: www.gci.com/industrialtelecomRick Hansen, DirectorRichard.Hansen@gci.comMark Johnson, Business Development ManagerMark.Johnson@gci.comDeadhorse:Aurora Hotel #205Deadhorse, Alaska 99734Phone: (907) 771-1090Mike Stanford, Senior Manager North SlopeMike.Stanford@gci.comHouston, Texas:8588 Katy Freeway, Suite 226Houston, Texas 77024Phone: (713) 589-4456Hillary McIntosh, Account RepresentativeHillary.Mcintosh@gci.comGCI Industrial Telecom provides innovative solutions tothe most complex communication issues facing industri-al clientele. We deliver competitive services, reputableexpertise and safely operate under the most severeworking conditions for the oil, gas and natural resourceindustries. GCI-your best choice for full life cycle, expert,proven, industrial communications.

Greer Tank and Welding Inc. 3140 Lakeview DrivePO Box 71193Fairbanks, AK 99707Contact: Mark Greer, General ManagerPhone: (907) 452-1711Fax: (907) 456-5808Email: mgreer@greerak.comOther offices: Anchorage, AK; Lakewood, WAWebsite: www.greertank.comGreer Tank & Welding are the premier tank and weld-ing specialists of Alaska and Washington. In business forover 57 years, they have a long history of providing anarray of products and services for all contracting andcustom fabrication needs – all from their highly trainedand experienced staff.

HDR Alaska Inc. 2525 C St., Ste 305Anchorage, AK 99503Contact: Jaci Mellott, Marketing CoordinatorPhone: (907) 644-2091Fax: (907) 644-2022Email: Jaci.Mellott@hdrinc.comWebsite: www.hdrinc.comHDR Alaska provides engineering, environmental, plan-ning, and consultation services for mining and mineralexploration clients. Services include: biological studies;cultural resources; project permitting; NEPA; stakeholderoutreach; agency consultation; and environmental, civil,

transportation, energy, and heavy structural engineering.

Judy Patrick Photography511 W. 41st Ave, Suite 101Anchorage, AK 99503Contact: Judy PatrickPhone: (907) 258-4704Fax: (907) 258-4706E-mail: jpp@mtaonline.netWebsite: www.judypatrickphotography.comCreative images for the resource development industry.

Last Frontier Air Ventures1415 N Local 302 Rd., Ste CPalmer, AK 99645Contact: Dave King, ownerPhone: (907) 745-5701Fax: (907) 745-5711Email: helicopter@LFAV.comAnchorage Base (907) 272-8300Website: www.LFAV.comHelicopter support statewide for mineral exploration,survey research and development, slung cargo,video/film projects, telecom support, tours, crewtransport, heli skiing. Short and long term contracts.

LyndenAlaska Marine LinesAlaska West ExpressBering Marine Corporation

Lynden Air CargoLynden InternationalLynden LogisticsLynden TransportAnchorage, AK 99502Contact: Jeanine St. JohnPhone: (907) 245-1544 Fax: (907) 245-1744 TollFree: 1-888-596-3361E-mail: information@lynden.comLynden is a family of transportation companies with thecombined capabilities of truckload and less-than-truck-load transportation, scheduled and charter barges, railbarges, intermodal bulk chemical hauls, scheduled andchartered air freighters, domestic and international airforwarding, international ocean forwarding, customsbrokerage, sanitary bulk commodities hauling, andmulti-modal logistics.

Pacific Rim Geological ConsultingFairbanks, AK 99708Contact: Thomas Bundtzen, presidentPhone: (907) 458-8951Fax: (907) 458-8511Email: bundtzen@mosquitonet.comGeologic mapping, metallic minerals exploration andindustrial minerals analysis or assessment.

TTT Environmental LLC 4201 “B” St.Anchorage, AK 99503Contact: Tom Tompkins, general managerPhone: 907-770-9041 • Fax: 907-770-9046Email: info@tttenviro.comWebsite: www.tttenviro.comAlaska’s preferred source for instrument rentals, sales,service and supplies. We supply equipment for air mon-itoring, water sampling, field screening, PPE and more.

Taiga Ventures2700 S. CushmanFairbanks, AK 99701Mike Tolbert - presidentPhone: 907-452-6631 • Fax: 907-451-8632Other offices:Airport Business Park2000 W. International Airport Rd, #D-2Anchorage, AK 99502Phone: 907-245-3123Email: mike@taigaventures.comWeb site: www.taigaventures.comRemote site logistics firm specializing in turnkeyportable shelter camps – all seasons.

Usibelli Coal Mine100 Cushman St., Ste. 210Fairbanks, AK 99701Contact: Bill Brophy, VP Customer RelationsPhone: (907) 452-2625Fax: (907) 451-6543E-mail: info@usibelli.comWebsite: www.usibelli.comUsibelli Coal Mine is headquartered in Healy, Alaskaand has 700 million tons of coal reserves. UCM produces1 to 2 million tons of sub-bituminous coal each year.

Advertiser IndexAlaska Dreams

Alaska Steel Co.

Arctic Wire Rope

Austin Powder Co.

Calista Corp................................................................12

Constantine Metal Resources

Construction Machinery

Fort Knox Gold Mine

GCI Industrial Telecom..............................................14

Greer Tank Inc.

IFR Workwear Inc.

Judy Patrick Photography

Last Frontier Air Ventures........................................14

Lynden

Nature Conservancy, The.........................................15

Pacific Rim Geological Consulting

Salt+Light Creative

Sourdough Express Inc.

Taiga Ventures/PacWest Drilling Supply................11

Usibelli Coal Mine

As a result of the buyout, NovaCopperhas full ownership of the Titiribi gold-copper project in Colombia and morethan US$20 million in cash. The compa-ny says this strong balance sheet willsignificantly de-risk the development ofthe Ambler mining district and willallow it to advance its feasibility workfor the Arctic deposit, part of the largerUpper Kobuk Mineral Projects inNorthwest Alaska. NovaCopper intendsto carry out an US$8 million to US$10million program at UKMP this year thatwill focus primarily on infill resourceand geotechnical drilling at Arctic.Continued environmental and engineer-ing studies for Arctic and work at theBornite deposit also are planned.NovaCopper appointed Philip O’Neill,former CEO of Sunward, and WilliamHayden, a former director of Sunward,to the NovaCopper board of directors.To make room for the new directors,Clynton Nauman and Thomas Kaplanare stepping down from the board. GerryMcConnell will replace Kaplan as chair-man of the board.

Goldrich forward sellsincome for $1.2M

Goldrich Mining Company June 23announced a deal to raise US$1.2 millionby selling 12 percent of the cash flowsGoldrich receives from its interest inGoldrich NyacAU Placer LLC, a 50-50joint-venture between Goldrich andNyacAU LLC to mine the various placergold deposits at Goldrich’s Chandalarproperty in Northern Alaska. Goldrichwill retain its 50 percent ownership inGNP but, after the transaction, will effec-tively receive about 44 percent of the cashdistributions from production. ChandalarGold LLC – a non-related company thatis purchasing 12 percent of Goldrich’sinterest – will receive 6 percent of anycash distributions produced. As part of thepurchase, Chandalar Gold also received2.25 million five-year warrants and anoption to acquire an additional 10 percentof the cash flows Goldrich receives fromits interest in Goldrich NyacAU Placer.The option must be exercised before July1, 2016 to purchase an additional 10 per-cent of Goldrich’s future cash flow inconsideration of a one-time cash paymentof US$1.3 million. Commercial produc-tion of the Little Squaw placer deposit ison track to begin this summer. GVC

Capital LLC of Greenwood Village,Colo., acting as lead placement agent forthe offering and receiving a commissionequal to 5 percent of gross proceedsraised, was granted a perpetual undivided0.5 percent interest in Goldrich NyacAUPlacer distributions to Goldrich, and was

issued 1.2 million warrants exercisableinto one common share of Goldrich for aperiod of five years at a price of US5cents per share. Goldrich’s net proceedsfrom the offering will be used for generalworking capital purposes and reclamationat Chandalar. l

Alaska; Instructing BLM to develop a defi-

nition of “re-vegetation” that takes intoaccount the unique challenges inAlaska, and the placer miners trying toimplement burdensome requirements;

Compelling BLM to work with min-ers to make reclamation determinationsin an effort to support the livelihoods offamily placer miners and the continu-ance of the historic placer mining prac-tices in Alaska; and

Increasing funding for the ForestService and BLM minerals programs toensure that the agencies have theresources to move the permittingprocess forward.

The US$30.1 billion bill, whichpassed out of the subcommittee June16, was approved by the full appropri-ations committee June 18 with a 16-14vote.

“While this bill includes importantfunding increases across numerousaccounts and agencies, this legislationis not just about spending. It is a meas-ure to improve government efficiencyand reduce federal spending in numer-ous areas. It provides an appropriatebalance of congressional oversight toensure the Executive Branch remainswithin its jurisdictional boundaries sothat taxpayers are not subject to undueregulatory burden and red tape,” saidSenate Appropriations CommitteeChair Thad Cochran, R-Miss. “I lookforward to the Senate taking up this billas soon as possible.” l

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MISSION CREEP

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NEWS NUGGETS

visible gold have been collected from mineralized sub-crop on Gold Dome at itsPlateau property in the Yukon. Within the first two days of the current program,four samples with visible gold were taken from new target areas up to 550 metersaway from the VG Zone discovery hole on Gold Dome, which cut 7.6 grams permetric ton gold over 9.03 meters. Drilling to expand the zone of high-grade goldintersected in drilling at Gold Dome and Goldstack is underway. Both zonesremain open, and have not been followed up since the discovery holes weredrilled in 2013. Goldstrike said the visible gold discoveries made this year,together with geophysics and other data, have provided several compelling newdrill targets. Follow-up surface exploration of additional new target areas withstrong gold potential is ongoing, and sample assays are pending.

High-grade sampling planned for 3 AcesGolden Predator Mining Corp. June 22 said it has received the necessary per-

mit to continue exploration and conduct bulk sampling at the 3 Aces high-gradegold project in western Yukon Territory. The bulk sample program is designed toacquire up to 2,000 cubic meters of gold bearing quartz vein material from theSleeping Giant zone. The material will be processed at an off-site to furtheradvance the understanding of the distribution of the coarse gold particles and pro-vide additional baseline data that could be used in designing a process flow sheetfor this type of material. The bulk sample program is a follow-up to the SleepingGiant zone’s 2013-2014 large volume sampling and metallurgical testing programwhere threes samples ranging from roughly 600 to 800 kilograms returned goldrecoveries by gravity alone of 74.6 to 88.5 percent and total gold recoveries afterleaching of the tails of 93.5 to 98.3 percent. The initial bulk sample of 2015 willexpand on sample BS-3A13-03 which contained in more than 5.8 ounces per met-ric ton gold.

Kelvin North sample returns good diamondsKennady Diamonds Inc. June 22 reported diamond recovery results from a 2.7-

metric-ton sample of kimberlite from the 2015 winter drill program at the KelvinNorth Lobe of its Kennady North project in Northwest Territories. The sample,which was processed at the Geoanalytical Laboratories Diamond Services of theSaskatchewan Research Council, averaged 2.74 carats of commercial-size dia-monds per metric ton. Kennady Diamonds CEO Patrick Evans said, “Based ondrilling and sampling completed to date, we estimate that the Kelvin-Faradaykimberlite cluster has the potential to host between 12 million and 15 million

metric tons at a grade of between 2 carats per metric ton and 2.5 cpt.” The threelargest diamonds recovered from the Kelvin North Lobe sample are described as:0.47 carat off-white, transparent, fragment with inclusions; 0.39 carat off-white,transparent, broken tetra-hexahedron with inclusions; and 0.25 carat white/color-less, transparent, broken macle with minor inclusions. Evans said, “It’s apparentthat the larger diamonds in the sample were broken during the drilling.Nonetheless, the diamonds are of a high quality.” A total of 662 individual dia-monds from the above sample were described by the SRC. Ninety-five percentare described as white/colorless (36 percent) and off-white (59 percent). Fourteendiamonds are described as yellow, 12 as brown and four as gray. A roughly onemetric ton sample of kimberlite from Faraday 2 is now being processed at theSRC and the diamond recovery results from this sample are expected in earlyJuly. Results from a 436-metric-ton bulk sample of Kelvin kimberlite is expectedbefore the end of the third quarter.

TerraX raises unprecedented funds for YCGTerraX Minerals Inc. June 17 reported the completion of an option to Osisko

Gold Royalties Ltd. to purchase an additional 1 percent net smelter return royaltyon the Yellowknife City Gold Project in the Northwest Territories, including asurrounding area of interest. To obtain this option, Osisko has paid TerraX C$1million in cash. The option entitles Osisko to purchase the 1 percent NSR by pay-ing an additional C$2 million within three months following commencement ofproduction. This NSR is in addition to Osisko’s existing option to acquire a 2 per-cent NSR on Yellowknife City Gold, including a surrounding area of interest. Inconjunction with the acquisition of the option, Osisko also completed a privateplacement of 6.25 million flow-through shares at C40 cents per share for grossproceeds of C$2.5 million. Osisko now owns 17.21 percent of the common sharesof TerraX along with warrants exercisable to purchase an additional 2,243,463shares. On June 19, TerraX raised an additional C$526,145 by issuing another1,058,100 flow-through shares at C45 cents per share and 125,000 flow-throughshares at C40 cents per share. The proceeds of these private placements – alongwith the C$2 million flow-through private placement completed by TerraX earlierthis month – will be used at Yellowknife City Gold. Technical staff from Osiskois currently in the field assisting TerraX personnel in mapping and prioritizingdrill targets for drilling scheduled to start up in mid-July. TerraX Joe Campbellsaid, “TerraX has always been committed to putting our dollars into the groundwhere they have the best chance of returning value to our investors. Now, in themidst of historically difficult capital markets for junior mining companies, TerraXhas more exploration funding available than at any time in the history of the com-pany. This funding, along with our technical partnership with Osisko, givesTerraX the financial means to effectively explore the world-class potential of theYellowknife City Gold project.” l

18NORTH OF 60 MINING PETROLEUM NEWS • WEEK OF JUNE 28, 2015

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