The Northern Miner November 16 2015 Issue

Page 1

ECUADOR: ODIN'S BENALCAZAR SAYS IT'S 'THE PLACE TO BE' FOR JUNIORS / 5 Geotech_Earlug_2015_VTEM_Colour3.pdf 1 2015-09-25 9:59:47 AM

SPECIAL FOCUS

CANADIAN PRAIRIES

Fission, UEX, Cameco & PotashCorp / 7-10

VTEM™ ZTEM™ Gravity Magnetics Radiometrics Data Processing Interpretation 905 841 5004 | geotech.ca

Short Road to Silver Production/Earning TSX.V: GRG www.goldenarrowresources.com

NOVEMBER 16–22, 2015 / VOL. 101 ISSUE 40 / GLOBAL MINING NEWS · SINCE 1915 / $3.99 / WWW.NORTHERNMINER.COM

Teck the latest major to join Arena in Atacama COPPER

| Miner to spend $19.5M, after Arena's similar deals with JOGMEC, B2Gold

TAILINGS DAM BREACH  |

BY TRISH SAYWELL

Four killed, dozens injured in Brazil

tsaywell@northernminer.com

T

eck Resources (TSX: TCK.B; NYSE-MKT: TCK) has become the third company this year to sign a joint-venture option agreement with prospect developer Arena Minerals (TSXV: AN) on its Atacama property in Chile, 50 km from the port of Antofagasta. The October transaction with Teck follows similar joint-venture option agreements with Japan Oil, Gas and Metals National Corp. (JOGMEC) in July, and B2Gold (TSX: BTO; NYSEMKT: BTG) in February. The option deals cover 85% of the Atacama property, which Arena Minerals picked up from industrial minerals producer Sociedad Quimica y Minera de Chile (NYSE: SQM) in July 2013. SQM had held the land package for several decades and mined nitrates from the top five to 10 metres of overburden on various parts of the property, rather than exploring for copper, despite the district’s known copper porphyry systems. The Atacama property, for instance, is just 3 km from KGHM’s Sierra Gorda mine; 8 km from BHP Billiton’s Spence mine (which ranks among the top-20 copper producers in the world); 16 km from Antofagasta’s El Tesoro and Esperanza mines; 11 km from Glencore’s Lomas Baya mine; and 27 km from Anglo American’s Mantos Blancos mine. One feature that has attracted so many companies to Arena’s 920 sq. km property, CEO William Randall says, is that it is close to the Antofagasta Calama Lineament, an area famous for porphyry clusters such as Chuquicamata, Codelco’s main asset, and the

BHP, Vale scramble to cope with Samarco disaster

BY MATTHEW KEEVIL mkeevil@northernminer.com VANCOUVER

M

ining giants BHP Billiton (NYSE: BHP; LSE: BLT) and Vale (NYSE: VALE) haven’t offered much detail about a large-scale tailings dam breach at the Samarco iron ore joint venture in Brazil’s Minas Gerais state, but reports already show it could be one of the largest-ever mining-related disasters in terms of area of impact. It was near dusk on Nov. 5 when residents in the nearby town of Bento Rodrigues reportedly heard a thundering boom, followed by a flood of mud and tailings waste that levelled See SAMARCO / 15 PM40069240

Drillers exploring the Atacama copper project in Chile, as part of Arena Minerals and JOGMEC's joint venture.

Spence and Sierra Gorda porphyries. (The porphyries form where the lineament intersects major north–south structural features.) The ground has also seen little, if any, exploration for copper and gold. “There is a big gap of known copper porphyry deposits, despite the favourable setting,” Randall says, “because it has been in the hands of industrial minerals giant SQM for several decades.” After discovering the Spence deposit more than a decade ago, a number of companies approached SQM to acquire land nearby, but no deals

were made. “Our property missed a lot of exploration that resulted from the Spence discovery, so it was basically undrilled and untested before us,” Randall says. Under Arena’s latest deal, Teck can acquire up to a 60% interest in two claim blocks: the Solitario and Paciencia North prospects. Teck will need to spend up to US$19.5 million on exploration in two stages over six years. Teck will also finish two equity financings in Arena at 27¢ per share (a premium to the market), for a total C$1.5 million (C$1 million on signing and C$500,000 before July 26, 2016).

ARENA MINERALS

It also has to make a US$450,000 onetime cash payment and a US$100,000 recurring annual payment. Teck will have a second option to acquire another 11.3% interest by spending an extra US$15 million on exploration before July 26, 2021, or by delivering a feasibility study before July 26, 2023. Arena’s management team thought it would look for partners for Atacama when the company sat at less than a $15-million market capitalization. “We realized that to properly drill See ARENA MINERALS / 2

Expertise in all aspects of mining. Contact Wayne Egan at (416) 947-5086 or at wegan@weirfoulds.com Financings • Joint ventures • IPOs, RTOs and listings • Corporate governance • Purchase and sale of mines • Litigation • www.weirfoulds.com

COMMENTARY: EXTENDED DOWNTURN LEADING TO BRAIN DRAIN / 4

TNM_Nov16_Pgs 1 2 3 4 5 15.indd 1

2015-11-10 6:25 PM


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
The Northern Miner November 16 2015 Issue by The Northern Miner Group - Issuu