1. business and industrial
2. mining industry

www.cexr.cl
4
Project
Showcase:
KM60
5
Prospect
Generators
No.24 / March 2015
11
Q&A:
Revelo
Resources
12
Exploration
News
New ventures
Plans to create a Chilean bourse for exploration firms are finally taking off
© 2015 Chile Explore Report All Rights Reserved
Photo: Santiago Stock Exchange
T
wo Canadian juniors – Chilean
Metals (CVE: CMX) and Puma
Exploration (TSXV: PUM) – have
become the first to list their
shares in Chile under the Santiago Stock
Exchange’s plan to create a new venture
market to finance mineral exploration
projects.
The project, which has been several
years in development, seeks to close the
glaring gap between the country’s gigantic mining industry, which produces almost a third of the world’s copper, and
Santiago’s dynamic capital market.
Despite the potential synergies, the two
rarely intersect. Just three Chilean mining
companies are listed on the Santiago
Stock Exchange – iron and steel group
CAP, nitrates producer SQM, and midtier copper producer Pucobre. As a result, Chilean investors have limited opportunities to invest in their country’s
leading sector.
Chile’s banking sector has only limited
exposure to the industry, finding safer
returns in retail and corporate banking.
Nor is mining a key activity for Chile’s
business elite. Apart from the Luksic family, who controls around 65% of copper
producer Antofagasta plc (LON: ANTO),
few of the country’s largest fortunes
have significant stakes in the industry,
which is instead dominated by multinationals, like BHP Billiton (LON: BLT) and
Just three Chilean mining companies are listed on the Santiago Stock Exchange.
“The aim is to create
and strengthen a bond
between mining and
the local capital
market”.
Nicolas Almazán,
Santiago Stock
Exchange
Glencore (LON: GLEN), and state-owned
copper giant Codelco.
Creating a local market for funding mineral exploration has long been viewed as
the first step to creating tighter links between these two key sectors of the economy, requiring only limited amounts of
capital while offering investors potentially massive rates of return.
“The aim,” says Nicolas Almazán, the exchange’s head of planning and development, “is to create and strengthen a
bond between mining and the local capital market.”
www.cexr.cl
No.24 / March 2015
Photo: Chilean Metals
Feature
Projects owned by Chilean Metals
BOOSTING EXPLORATION
The project also seeks to boost Chile’s
exploration sector is seen as underdeveloped, with juniors accounting for just
20% of exploration spending in the country last year, compared with 50%-60%
globally.
Local investors have already had a taste
of mineral exploration through the government’s Fenix program. Launched in
2011, the project offered six selected
investment funds a total of US$90M in
non-recourse loans to co-invest with private investors in exploration projects in
Chile.
The creation of the Mining Commission,
responsible for drawing up a Chilean
code of estimating mineral resources
and reserve and certifying Qualified Persons, was another key step.
But the first steps to creating a public
market in exploration shares happened
last March with the signing of Memorandum of Understanding between the Santiago bourse and the Toronto Venture
Exchange which would permit companies listed in Canada to cross-list in Chile.
This has been complimented by a deal
between local securities regulator SVS
and Canadian counterparts by which Canadian firms listing in Chile will not be
subject to further obligations from the
Chilean authorities.
Rule No 264 emitted by SVS last year
allows companies already registered in
© 2015 Chile Explore Report All Rights Reserved
“This is a big
opportunity for
Canadian issuers to list
in Chile and potentially
access liquidity”.
Rodrigo Cordova,
CCI Capital
Last month, U308 Corp (TSX: UWE), a
uranium explorer listed on Toronto’s
senior board, became the first Canadian
mining firm to list in Santiago.
Cordova says he is now talking to several Canadian firms about the possibility of
a Chilean cross-listing. With minimal
costs and no additional obligations, it
should be a no-brainer.
As well as Chile’s own liquid financial
market, a firm listing on the Santiago
bourse can also tap investors in Colombia, Peru and Mexico, thanks to the Integrated Latin American Market (known as
MILA, from its initials in Spanish), a project to integrate capital markets of all
four countries.
Nor should the cross-listing opportunity
be limited to the mining sphere. The program is open to TSXV-listed companies in
any sector, and to other types of security, including exchange-traded funds.
“This is a big opportunity for Canadian
issuers to list in Chile and potentially access liquidity”, Cordova says.
NEW INVESTORS
For CMX, the attraction is the potential
to attract new investors to fund exploration of its promising projects in Chile.
Previously named International PBX Ventures, CMX changed its name after sell-
Canada, as well as Colombia, Mexico and
Peru, to list without prior registration in
Chile.
Equally important was a ruling by the
country’s Central Bank permitting foreign companies to list their shares in
Chilean Pesos.
FAST, EASY AND CHEAP
The result of these successive regulatory
changes has been to greatly simplify the
process and reduce the cost of listing a
TSXV company in Chile.
According to Rodrigo Cordova, a Chilean
lawyer based in Montreal, who handled
the listings of CMX and PUM, the whole
process can take just two weeks and cost
a few thousand dollars. “There were
many developments last year and now
the market starting to move”, he says.
Terry Lynch, CEO of Chilean Metals
2
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No.24 / March 2015
Feature
also a chance to raise its profile in one of
the world’s leading mining industries.
Photo: Puma Exploration
INCREASED PROFILE
Puma Exploration is developing a number of base metals projects in eastern Canada.
ing its Copaquire copper project in Region I to Teck (TSX: TCK) in 2013, for
US$3M plus a 3% NSR. CMX is now focused on a portfolio of six properties,
covering 50,000h in northern Chile, including its Zulema project, close to
Lundin Mining’s (TSX: LUN) Candelaria
mine in Region III.
Lynch says the team became excited by
Zulema after a geophysical survey targeting a nearby property highlighted its
potential. After two years of fieldwork,
building the geological model and expanding the property (see page 13), the
project is almost ready for drill-testing,
possibly as soon as 2Q15.
With Canadian markets still sluggish,
Lynch hopes the listing in Chile could
prove a new source of financing from
local investors interested in participating
in exploration projects.
The first task is to add a Chilean director
to the board to help build networks and
then appoint an investment firm or
stockbroker to act as market maker.
Lynch plans to begin meeting potential
investors on his next visit to CMXs properties in Chile.
“We are not expecting miracles overnight but it opens up a pathway”, he
says.
For PUM, the listing in Chile offers not
just a potential source of financing but
© 2015 Chile Explore Report All Rights Reserved
“We are not
expecting miracles
overnight, but it
opens up a
pathway.”
Terry Lynch,
Chilean Metals
The firm is developing a series of base
metals projects in eastern Canada, which
have numerous similarities to deposits
commonly found in Chile. PUMs most
advanced are the Nicholas-Denys and
Turgeon projects in New Brunswick.
More than 20,000m of drilling has been
carried out at each site, intersecting high
grades of copper, zinc and molybdenum.
Moreover, the properties are located
close to Glencore’s (LON: GLEN) Bathurst
zinc smelter and the adjacent deep seaport.
“You couldn’t get better infrastructure”,
says chairman Arness Cordick.
By listing its shares in Santiago, PUM
aims to make contact with mining companies operating in Chile looking for opportunities in another premier mining
jurisdiction. Alternatively, it could bring
PUM into contact with owners of interesting properties in Chile which they are
looking to joint venture.
With three companies on the board,
Santiago’s exploration bourse is finally
taking shape. Now it just needs investors.
CER
Chile Explore Report is a monthly newsletter,
providing independent and authoritative
coverage of Chile’s mineral exploration sector.
For information about subscriptions, please contact:
Nereidina González
Email: [email protected]
3
www.cexr.cl
No.24 / March 2015
Project Showcase
Project: Kilometro 60
Recent green fields discovery advancing to scout drilling stage; prospecting resulted in vein system
discovery with up to 3kg/t Ag and over 10% Pb.
I
n a 300 hectare area, located approximately 130km east northeast of Antofagasta, 57km east from Baquedano, SQM’s generative exploration team discovered structurally controlled vein
mineralization comprising cloragarite + anglesite (an oxidized
silver-lead association). To date four veins have been identified.
The occurrence of this mineralization falls in the regional Paleocene / Oligocene metallogenic trends defined by well-known
porphyry copper deposits, such as Chuquicamata, Spence, Esperanza, Encuentro and Lomas Bayas, as well as precious metals mineralization including El Inca (Ag), Faride (Au), and Caracoles (Ag).
Central Northing (UTM):
Central Easting (UTM):
Elevation (masl):
Metal(s):
Deposit Style:
Exploration Stage:
Area (hectares):
Nearest Project:
7405000
470500
2120
Ag-Pb
Epithermal linked to Porphyry
Advanced Exploration
296
Lomas Bayas
Follow-up geological work to the initial discovery includes a 20 metre by 20 metre grid sampling of rock chips, trenching partially tracing out the 4 identified veins to the edge of cover, 924 metres of
short hole reverse circulation drilling confirming the veins and oxidation extend to at least 30 metres to 40 metres depth.
Lithology: Paleocene rhyolite to dacite and andesite flows and ignimbrites intruded by late Paleocene dacitic and dioritic to monzodioritic subvolcánic porphyries. Colluvial and alluvial material cover
is approximately 40%.
Alteration: Argillic alteration comprising kaolinite-sericite-quartz
and alunite (supergene).
Structure: The mineralized structural trend is approximately northwest within a regional north-east deflection of the Domeyko Fault
system. The observed vein system is open in all directions.
Contact:
Daniel Jimenez
Senior VP of Exploration
[email protected]
+56998223038
© 2015 Chile Explore Report All Rights Reserved
[email protected]
Darryl D. Lindsay, PhD, PGeo
Manager Metal Business
Development
[email protected]
+56966488511
Tomas Esguep
Metal Business
Development Engineer
[email protected]
+56966373482
4
www.cexr.cl
No.24 / March 2015
Feature
Spreading the risk
Prospect generation, a streamline business model for exploration firms, is gaining converts.
© 2015 Chile Explore Report All Rights Reserved
Photo: Mirasol
A
mid a dearth of financing for
mineral exploration, a growing
number of mining juniors are
adopting a new business model,
which aims to reduce costs, mitigate risk
and ensure the company’s long-term sustainability.
While the traditional junior firm concentrates on one or a handful of projects
and tries to advance it as far as down the
path to development as they can, prospect generators manage large portfolios
of prospective land to identify multiple
targets for which then it seek potential
partners to finance exploration.
Finding partners from early in the exploration process significantly reduces the
amount the firm has to invest in each
project, says Lawrence Winter, VP Exploration at Altius Minerals (TSX: ALS), one
of the firms which pioneered the business model in the 1990s.
Out of sixty four projects advanced to a
joint venture in the last seventeen years,
ALS has only drill-tested three before
attracting a partner. Instead, the firm
sticks to low-cost exploration techniques
such as satellite imagery interpretation,
geophysical and geochemical surveys,
prospecting, and mapping alteration to
identify interesting ground and generate
drill targets. Some of ALSs biggest discoveries have been made through desktop
analysis of historical databases.
As a result, expenditure on each target is
normally in the hundreds of thousands of
dollars or less rather than tens of millions.
By bringing in partners to finance all but
the very earliest stages of exploration,
the prospect generator can advance a
much larger number of targets than a
junior working on a few properties of its
own.
Creating exposure to a large number of
potential targets, the firm significantly
increases its chances of participating in
one of the tiny proportion of projects
that make it all the way to production.
“We would much rather end up with 25%
of a major discovery than have 100% of a
project that we cannot finance”, says Tim
Prospect generators manage large portfolios to identify multiple targets.
“We would much rather
end up with 25% of a
major discovery than
have 100% of a project
that we cannot
finance”.
Tim Beale, Revelo Resources
Beale, CEO of Revelo Resources (TSXV:
RVL), a new firm which has adopted a
similar approach for its properties in
Chile.
As well as identifying good ground, prospect generation also requires finding the
right partner for each property. This
means not only a firm with the financial
resources to fund the required exploration work but also with the technical
skills to realize its potential and bring
into production.
This could be a major mining company, a
mid-tier, a junior or a private equity firm.
“It’s not always the biggest financial
commitments, but who is the best overall partner for each project”, says Winter.
In Canada, ALS has done several deals
with Chinese state-owned enterprises,
which can provide not only the financial
muscle to develop a project but also provide offtake once a mine is in production.
Or projects can be spun out into a new
company although this exit depends on
assembling the right management team
and raising sufficient funds, Winter adds.
While most junior companies rarely last
more than five years, often going broke
or being acquired before then, prospect
generators seek to turn exploration into
a sustainable business, which can continue growing for decades.
Agreements signed with partners often
grant some combination of a minority
equity stake and a royalty should any
project enter production, giving the firm
a source of revenue to continue financing
5
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No.24 / March 2015
Photo: Revelo Resources
Feature
Revelo Resources’ Montezuma copper property in Region II.
its grassroots exploration programs.
As it can take a decade or more to see a
prospect develop through exploration
and development into an operating
mine, prospect generation is necessarily
a long-term business, says Winter. Almost two decades’ old, ALS may soon see
royalty revenue from projects which it
has developed over the years. This is the
case with Alderon Iron Ore Corp’s (TSX:
ADV) Kami mine in Labrador, Canada, a
project generated by ALS which earned
the support of China’s largest steel producer, Hebei Iron & Steel (state-owned).
The crash in iron ore prices has slowed
financing, though the fully-permitted
project is set to commence construction
once the funds are in place.
In the meantime, ALS has plowed funds
earned from grassroots exploration into
acquiring 12 existing royalties which in
turn have become a key source of revenue to finance further exploration and
royalty purchases.
ALS now sees its peers as other royalty
firms such as Franco-Nevada (TSX: FNV),
Royal Gold (Nasdaq: RGLD) and, most
recently, Osisko Gold Royalties (TSX: OR),
which was spun out of the takeover of
Osisko Mining by Agnico Eagle Mines and
Yamana Gold last year. But while they
largely specialize in precious metals, ALS
sees a niche in base metals and bulk
commodities royalties.
After growing largely in its home terrain
of eastern Canada into a US$400M com© 2015 Chile Explore Report All Rights Reserved
pany, ALS began looking for new frontiers to apply its business model. Chile
was always a likely candidate.
“We were tired of majors who looked at
our copper projects in eastern Canada
telling us ‘if this was in Chile, we would
We were tired of
majors who looked at
our copper projects
telling us ‘if this was in
Chile, we would be doing a deal.’”
Lawrence Winter, Altius
Minerals
be doing a deal’”, explains Winter.
Exploration projects considered higher
risk elsewhere become more attractive in
Chile because of the wealth of mining
infrastructure and synergies with existing
operations.
When ALS was approached in 2012 by
Santiago fund manager Zeus Capital,
which had just secured US$14M to invest
mineral exploration under the government’s Fenix program, it jumped at the
chance to form an alliance with local
mining entrepreneurs with invaluable
knowledge about the Chilean mining industry.
The two firms formed Prospex SpA to
apply ALSs model to Chile. To date the
company has so far invested around
US$3.9M, according to Chile’s economic
development agency CORFO.
Prospex SpA’s most advanced asset is the
Morsas project in Region III, which covers
a large area of gravel-covered claims to
the east of the Pan-American Highway
between Lundin Mining’s (TSX: LUN) Candelaria mine and CAP’s Los Colorados
iron ore operation. After geological mapping, the firm has confirmed alteration
styles and mineralization typically associated with iron-copper-gold deposits.
But it is far from ALSs only project in
Chile.
The firm currently controls around
130,000h of ground and has identified
sixteen projects that are almost ready for
drill-testing.
“Now we have built a meaningful land
position, done the reconnaissance and
assembled the data, we will start marketing these projects to potential partners,” says Winter.
SEEKING PARTNERS
ALS is not the only company following
the prospect generation model in Chile.
Mirasol Resources (TSX: MRZ) has built
up a large portfolio in Region III. While
First Quantum Minerals (TSX: FQM) is
already exploring MRZs Rubi property,
near Salvador, MRZ is seeking partners
for its Gorbea belt, which it believes is
the northern extension of the Maricunga
Au belt.
Revelo Resources (TSXV: RVL), formed
through the recent merger of Iron Creek
Capital and Polar Star Mining, controls
around 300,000h of mining tenure
throughout northern Chile and already
has JV agreements with BHP Billiton
(LON: BLT), Newmont Mining (NYSE:
NEM), and Kinross Gold (TSX: K). NEM
recently earned a 51% stake in RVLs
Montezuma copper property in Region II
by completing US$2.5M of exploration
work within the required timeframe. (For
more details see our interview with RVL
CEO Tim Beale on page 11 and exploration news on page 12).
One of the latest to adopt the model is
Arena Minerals (TSXV: AN). Through an
6
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No.24 / March 2015
Photo: Revelo Resources
option agreement with nitrates producer
SQM (NYSE: SQM), which controls Chile’s
largest land package, AN can earn an
80% stake in the 149,500h (reduced
down from an initial 300,000h) Atacama
property. Located between some of
Chile’s largest copper mines, the property has been largely unexplored for metallic deposits (SQMs interest being largely
confined to the caliche cover). By compiling data, including drill results provided
by SQM, and some fieldwork, AN has
identified 9 targets (eight copper porphyries and one gold-silver epithermal).
“Each one has very high potential for being a massive discovery”, says AN CEO
William Randall.
Although the prospect generation model
normally involves ownership of the underlying property, AN is now marketing
its unique deal with SQM to third parties.
In February, B2Gold (TSX: BTO) signed an
option to acquire up to 60% of two properties (Pampa Paciencia and Cerro Barco), which cover around 20% of Atacama,
by spending over US$20M on exploration
over the next five years. BTO will also pay
US$630,000 to SQM and US$2.5M to AN.
In the current depressed market for mineral exploration, the prospect generation
model is an attractive one for cashstrapped juniors. Raising sufficient funds
to drill all targets would have implied
punitive dilution for ANs shareholders,
Photo: Arena Minerals
Feature
Arena’s Atacama project, located between some of Chile’s largest copper mines.
“When the market comes back, investors
won’t care about the
long term, they will be
looking for the next hole which will give them
their ten bagger”.
Lawrence Winter, Altius
Minerals
Revelo Resources controls around 300,000h of mining tenure in northern Chile.
© 2015 Chile Explore Report All Rights Reserved
notes Randall. Hence the decision to seek
more wealthy partners.
RISK-AVERSE
Risk-averse investors have also warmed
to a model that offers long-term returns
when many exploration firms are struggling to survive. ALSs share price has remained relatively stable from the peak of
the commodities boom while the market
value of most mining companies has
plummeted, notes Nik Rasskazovskiy,
who monitors ALS for Salman Partners.
But while prospect generation can be an
attractive model in the downturn, staying
the path when the markets turn hot
takes discipline. If cash is available and
the prospect looks promising, the temptation is to advance the project alone
and potentially score a much bigger prize
rather than cede a majority stake.
“When the market comes back and we’re
at the top of the cycle, newcomer investors and junior start-ups won’t care
about the long term, they will be looking
for the next hole which will give them
their ten bagger”, notes Winter.
For exploration geologists, handing over
their favorite prospect to a third party,
which could take the gold and the glory
for a major find, can be a psychological
wrench, says Rasskazovskiy. And once a
firm strays from the model, it can be very
difficult to get back.
But for now, with money tight and survival the main concern, the prospect generation model is winning converts.
CER
7
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No.24 / March 2015
Feature
Building stronger relationships during Exploration
By Susan Joyce, President, On Common Ground Consultants Inc.* and William Grosso, Community Relations Manager, Lundin Peru.
M
ost exploration and development projects today are
faced with, or are halted
by, social and community
problems. Lawsuits that challenge permits issued by the State, as in Chile, or
the increasing social mobilizations
against projects in Peru, Colombia and
Argentina, among others, can present
significant challenges at all stages of exploration and development.
Social risk presents a particular challenge
for exploration companies with limited
resources and the need to deliver positive news to the market. Simply throwing money at a community is not a solution; a number of companies are realizing that they create more problems than
they solved when they take that approach. Rather than resolving issues, it
Social risk presents a particular challenge for exploration companies with limited
delays them and tends to create larger
resources and the need to deliver positive news to the market.
conflicts later in a project’s life by entrenching the practice of making decountries with stronger institutions, themands on companies for financial comse same actions demonstrate respect
pensation, or generating dependency on
and build confidence in the company.
apparently ‘easy’ sources of funding.
How does a company ensure that it is
What then is effective in addressing comhelping create a stronger institution?
munity expectations and good practice
First, work within the parameters of legal
for exploration and development comparights and obligations and the institutionnies? The critical social challenges inal structure of the communities themclude having a counterpart organization
selves. For example, in Peru, the Envithat is strong and operates legally, forronmental Impact Declaration (EID) is
mally and according to established prorequired prior to drilling and it establishcedures, and developing transparency as
es the area of direct influence of the proa principal of the relationship. Properly over time, especially in countries with ject. The EID provides a legal framework
managing these issues leads to better weak institutions and low levels of credi- for the discussions and information disagreements and stronger relationships bility, such as Peru. In Chile or other closure with local communities and helps
Use the mechanisms
that exist in the community to support the credibility of the community’s leadership and decision-making process.
© 2015 Chile Explore Report All Rights Reserved
8
www.cexr.cl
No.24 / March 2015
Feature
to reinforce the legitimacy and responsibility of the exploration or development
company. As many communities will not
be familiar with the environmental or
mining sector legal requirements, preparing them in advance with information
sessions or even a technical advisor, supports them to play their role effectively
and to understand and develop more
confidence in the system than they had
prior to EID workshops.
Second, use the mechanisms that exist in
the community to support the credibility
of the community’s leadership and decision-making process. This is very different from supporting a specific person in
authority, which is often done by ensuring that that leader benefits personally
from the company’s presence. Instead,
we are talking about the institution of
community authority, with the rights and
obligations that go with it.
Because a strong counterpart for stronger agreements is best, think about how
your presence and your interaction with
community authorities can strengthen
the institution you are dealing with; it’s
all too common for deal-making to undermine the legitimacy of a leader and
create divisiveness and suspicions within
the community.
Establishing a transparent and equitable
procedure for local employment is a
good example because, if done poorly, it
can lead to increased social conflicts,
jealousy and even the overthrow of lo-
© 2015 Chile Explore Report All Rights Reserved
cal/community leaders, which is very
counterproductive for the effort to build
relationships. The table below lays out a
few of these risks and how to address
them:
Work with the procedures that they
(local communities, municipal mayors,
etc.) use to maintain the integrity of their
authority in order to keep them in line
and accountable. For example, a peasant
community (Comunidad Campesina) in
Peru has a president as well as a ‘Junta
Directiva’ (Board of Directors) and decisions are made with the participation of
active members of the community voting
on them. Rarely is a decision legitimate if
it is not supported by a vote in General
Assembly. Basic processes include always
meeting with multiple authorities present; go beyond that to have the Junta
Directiva compile, vet and then approve
in Assembly (with the company’s presence) the lists of all community members
eligible for participation in rotational employment and how access to it will be
distributed.
In summary, some key points for working
with local communities in a way that supports their organizational capacity, include:
1. Knowing how the community works
and whether or not the authorities are
respected and accepted by community
members.
2. Understanding the governance and
procedures of the community’s leadership.
3. Getting informed about previous conflicts or problems they have had, so that
you don’t repeat past mistakes.
4. Understanding and basing your initial
work on the legal rights of both parties.
5. Fulfilling your legal obligations scrupulously if you expect community authorities to trust you, and work with their formal structure and processes.
A very useful tool was developed with
support from the PDAC and other organizations called “Preventing Conflict in Exploration”.
www.cdacollaborative.org/publications/
search/?
q=preventing+conflict+in+exploration&d
s_st_all=on#.VDxjxlZBhwQ
*On Common Ground Consultations specializes in social issues and their management for resource companies in the
Americas.
Issue
Community leaders get
friends and family
hired preferentially for
rotational
employment.
Risk to Project
Unequal access to job
opportunities leads to
conflict within the community and undermines
those leaders with
whom you build the
relationship
Landowning community expects that only
their community members will benefit from
employment opportunities
As employment needs
grow with the project,
conflict arises if jobs are
given to people from
outside the community.
Meetings are held privately with some community leaders to make
agreements or discuss
problems; done for
expediency or because
those leaders seen as
supportive
Credibility of the leaders is questioned when
others are not aware of
agreements made; suspicions of payoffs or
personal gain undermine the leader, even
when not true.
Opportunity
Work with community authorities to develop lists of all
qualified for employment;
affirm the list in General Assembly and publish; establish
a rotation schedule and
make information available
to all.
Establish early on that there
are various affected communities, that the company has
policies to extend local employment to them, and that
employment decisions remain in hands of the company
Ensure that meetings are
held at scheduled times and
with advance notice, to ensure that other community
members and the Board of
Directors are present and
participate in discussions and
decisions.
9
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No.24 / March 2015
Feature
Mining Commission prepares new code
The updated code will be ready in March; Chile recognized by Australia
INTERNATIONAL RECOGNITIION
Already recognized through reciprocity
agreements by counterparts in Canada,
the US, the European Union and Russia,
the Mining Commission has now a seal of
approval from Australia’s JORC Committee, implying that it will be also recognized by the Australian Securities and
Investment Commission (ASIC), the body
responsible for regulating capital markets
in that country.
The agreement represents a new opportunity for professionals qualified by the
Chilean commission as they will now be
© 2015 Chile Explore Report All Rights Reserved
Photo: Codelco
C
hile’s Commission for Qualifying
Competencies in Mineral Resources and Reserves is preparing a new Code of Certification
(CH 20.325) for March this year. Now in
its final stages, the update seeks to homologize the assessment, categorization
and evaluation of mineral resources in
Chile with international standards.
Work on the new Code took more than a
year followed by a 45-day consultation
period during which Qualified Persons
recognized by the commission could present their comments, some of which incorporated into the final document by
the editing committee. The code is now
being translated into English so it can be
sent to Committee for Mineral Reserves
International
Reporting
Standards
(CRIRSCO, of which Chile is the only
member in Latin America) for revision
and comment.
Once these steps are completed, the final version of the document will be ready
for publication and diffusion, a process
which will be led by the commission’s
chairman Juan Pablo Gonzalez.
This latest update of the Resources and
Reserves code aims to standardize and
clarify some terms in line with those
used in codes in other countries with
which Chile has signed reciprocity agreements.
“We want to have very similar codes with
equivalent terms and definitions on certain issues, which are simple but precise”, explains Gonzalez.
The new code seeks to homologize the assessment, categorization and evaluation
of mineral resources in Chile with international standards.
“We want to have very
similar codes with equivalent terms and definitions on certain issues,
which are simple but
precise”
Juan Pablo Gonzalez,
Mining Commission
able to sign reports in other countries
under Australia’s JORC standard. Gonzalez predicts increased demand for Chilean QPs abroad.
Since the promulgation of Law No 20,235
(2007), which created it, the Mining
Commission is the body responsible for
administrating Chile’s Public Register of
Persons Qualified in Mineral Resources
and Reserves as well as managing the
code. It also provides technical assistance
to regulatory agencies, revises reports
produced by Qualified Persons, publishes
special criteria and standards for QP reports, establishes best practices, carries
out studies on the certification of mineral
prospects, resources and reserves, and
provides training to Chile’s QPs.
COMMISSION NAMES 39 NEW QPS
In a ceremony in Santiago in January, the
Commission for Qualifying Competencies
in Mineral Resources and Reserves recognized 39 new QPs certified during
2014. As QPs, they are now qualified to
sign and emit technical reports on exploration projects and mineral resources
and reserves used in public offerings, in
the closure of mining projects, by the
Fenix Funds, in IFRS-compliant corporate
accounts and for some companies’ internal reports.
To date, the commission has recognized
274 professionals by QPs, of whom half
are mine engineers, 40% are geologists,
and 4% metallurgists.
CER
10
www.cexr.cl
No.24 / March 2015
Interview
Tim Beale, President & CEO
REVELO RESOURCES CORP (TSX-V: RVL)
Formed through the merger of Iron
Creek Capital and Polar Star Mining, RVL
is looking for partners to explore its
300,000h portfolio.
CER: What was the thinking behind
merger?
TB: We were thinking about what we
could do to become a more sustainable
business and succeed. Being a small junior in a tough market is not a very sustainable way of going about business.
Our business was focused on early stage
exploration projects and it was practically impossible to raise money to drill test.
We decided that what was important
was to control very prospective ground
and build a larger land portfolio. One of
the strategies for growth was mergers
and we were looking around for other
companies that were perhaps struggling
and that had an interesting property
portfolio that we might be able to acquire or merge with.
CER: Why Polar Star?
TB: Polar Star had been on our radar for
some time but the valuations were out
of kilter until last summer. We made an
approach with respect to a possible merger and they liked what we were talking
about and we were able to negotiate a
friendly merger which closed in midDecember.
CER: The merger has put you in a much
stronger position?
TB: The new company Revelo Resources
controls 300,000h of highly prospective
ground. They are wholly owned tenements so there are no underlying agreements. There are some royalties but in
the case of discovery most at least are
partly purchasable. We already have active joint ventures with three major corporations.
CER: Does that mean you are adopting
the prospect generator model?
TB: That term is bandied around quite a
lot. We are not saying that we will never
ever put a drill hole into the ground. We
will always employ the most appropriate
exploration techniques given the circumstances. But it is not our intention to
© 2015 Chile Explore Report All Rights Reserved
take projects through to feasibility. We
want to bring in partners to de-risk the
exploration process and reduce the exposure to any failures. What we are trying to do is employ capital effectively so
that we can extend our treasury as long
as possible and provide shareholders
with multiple opportunities for exploration success. We would much rather end
up with 25% of a major discovery than
have 100% of a project that we cannot
finance.
CER: Tell us about those JV agreements.
TB: We have one with Kinross Gold (TSX:
K) at our Las Pampas property, which is a
50,000h property principally prospective
for gold and silver – mostly high grade
gold silver veins of the El Peñon type. K is
actively working there. There is another
with Newmont Mining (NYSE: NEM) at
the Montezuma project, which covers
around 45,000h between Codelco´s giant
Chuquicamata copper mine and the Esperanza-Tesoro mining district owned by
Antofagasta Minerals (LON: ANTO). And
we have an agreement with BHP Billiton
(LON: BLT), which covers three separate
blocks of ground, one to the north of the
giant Escondida copper mining district
and two more between Escondida and
the Salvador mining district. BLT is actively exploring those three blocks.
CER: And now you are looking for partners for the other projects.
TB: Yes, we have sixteen in total, five are
already jointed ventured so we are ac-
tively looking for partners to joint venture the remaining 11 projects.
CER: How is that going?
TB: Well, this is still a tough market in
many ways. Companies have had exploration budgets cut. But the majors are
focusing on stable jurisdictions like Chile,
particularly on copper but also on gold
and silver. Obviously our projects have
to rank well compared to what they already have in their portfolio but we have
a good chance of doing that. Nothing has
been signed other than confidentiality
agreements but we are talking to several
firms about a number of different properties.
CER: Tell us about the properties you
have on offer.
TB: We have a series of copper-focused
projects that are located along the principle copper belts in northern Chile. For
example, Reina Hija is located in Region
I, E of Iquique, in a copper district where
a number of majors are exploring. The
Calvario-Mirador prospects in Region IV,
NE of La Serena, are home to very large
hydrothermal alteration zones where
some historic drilling has been done and
we have identified some very compelling
new copper targets. Another is San Valentino, just to the N of Santiago, a compelling Cu target which has never been
drilled. Information about all our projects can be found on our website
(www.reveloresources.com).
CER: Thank you
11
www.cexr.cl
No.24 / March 2015
Exploration News
Mandalay Resources (TSX: MND)
Plans to carry out a 5,000m diamond drill campaign at its Vizcachitas Cu-Mo Project in Region V as part of an annual expenditure program of approximately US$2.3M. The holes will
test high-grade extensions of known mineralization within the
core San Jose claim, which was last drilled in the 1990s by Placer Dome and General Minerals Corp. The new drilling and
some historical pulp samples will be assayed for Ag after the
2014 PEA identified its presence in metallurgical samples. LA
will also investigate a 17% negative bias in Mo assays and if
proved, historical pulp sample will be re-assayed. The results
from both processes and the new drill campaign will be included in an updated resource estimate which will form part of a
new PEA for the project, involving a smaller initial phase of 4050,000tpd, a reduced river diversion tunnel and the planned
hydroelectric plant at the site, with the aim of reducing capital
costs. “This revised mine plan will prioritize the higher grade
supergene material in the early years and delay the main
pushback until the initial capital investment is paid back”, LA
said.
Has replaced proven and probable reserves depleted in mining
during 2015 through infill drilling of extensions of the Coyita
and Yasna veins in late 2014. MND drilled approximately
27,848m of diamond core, costing US$3.46M, during 2014 in
the Coyita, Yasna, Fabiola, Irene, Kasia, Esperanza, Cristal and
Cerro Amarillo veins, as well as mapping and closely spaced
sampling along 4,954m of development drives in the Dagny,
Dalila, Fabiola, Yasna, and Delia NW veins, 3,354 m of which
were in mineralization. The work allowed Indicated and Inferred mineral resources to be upgraded to Measured resources, and subsequently Proven mineral reserves. Measured
and Indicated Resources now stand at 1.995Mt @ 3.18g/t Au
& 322g/t Ag. “Cerro Bayo, initially acquired in 2010 and restarted with a nominal mine life of three years based on Proven and Probable Reserves at the time, replaced 2014 depletion
and now has a nominal life of approximately six years after
four years of production”, said CEO Brad Mills. “Neither (Coyita
nor Yasna) are completely drilled out and we expect further
additions to Mineral Reserves as we continue extending our
closely spaced drilling in these veins”, he added. At Challacollo
in Region I, MND completed 9,153m of core drilling over 52
holes, at a cost US$2.03M. The drilling was designed to infill
and extend mineral resources previously identified in the Lolon
vein, while 13 holes tested new vein targets. The work allowed
MND to upgrade approximately 22Moz Ag at Lolon from Inferred to Indicated status, increasing the Indicated resource to
4.7Mt @ 0.32g/t Au & 200g/t Au. “There remains approximately 7Moz Ag in the Inferred Mineral Resource along the
Lolon that potentially can be upgraded, as well as additional
exploration targets with existing mineralized intercepts which
can be followed up in the future”, Mills noted.
Photo: Los Andes Cooper
Los Andes Copper (TSXV: LA)
Photo: Mandalay Resources
Los Andes Copper’s Vizcachitas Cu-Mo project in Region V
Newmont Mining (NYSE: NEM)
Has earned a 51% stake at Revelo Resources’ (TSXV: RVL) Montezuma Cu property in Region II, by spending in excess of the
US$2.5M required under the JV agreement signed in January
2014. NEM is now proceeding with Phase 2 during which NEM
must spend a further US$5.5M over 2.5 years to earn an additional 14%. NEM spent US$2.7M last year at Montezuma,
which covers 44,000h 20km S of Calama between the Chuquicamata and Centinela mining districts. NEM is exploring for
Cu-Au-Mo porphyry deposits and related mineralization using
historical datasets with geological mapping and proprietary
deep penetrating technologies. NEM is now advancing to drill
test several Cu-Au targets which are largely obscured by postmineral gravels and mudflow deposits along the West Fissure
Fault and associated fault splays that extend S from Chuquicamata.
© 2015 Chile Explore Report All Rights Reserved
Mandalay completed 9,153m of core drilling at Challacollo
Barrick Gold (TSSX: ABX)
Is to focus exploration during 2015 on brownfield projects,
which will suck up two-thirds of its exploration budget of
US$220-260M, with the remainder targeting emerging discovers that have the potential to become profitable mine. Around
50% will be spent in the US state of Nevada.
12
www.cexr.cl
No.24 / March 2015
Exploration News
Lundin Mining (TSX: LUN)
Is finalizing a maiden Mineral Resource Estimate for the Picachos Cu project in Region IV, which it expects to release to
market shortly. “The Resource work has taken a bit longer than
expected, given the traditional summer holiday season in Chile,
but it is now close to completion and on track to be delivered
this quarter,” said MD Graeme Sloan. The work has identified
two areas immediately adjacent to the 40M Shaft mineralization that have the potential to add significantly to the near surface mineral resource. “These new areas are high up in the geological sequence, therefore close to the surface and importantly could potentially replace (in a planned open pit) what
was previously considered waste material with ore, thus reducing strip ratios and further enhancing project economics”, noted Sloan. “They may not only add to what we are planning for
the 40M Pit, but could also enhance what is possible from the
remaining areas already identified (Flor del Bosque, La Nipa,
Santa Rosa, Rancho 4, La Dura etc)”, he said.
Plans to spend US$35M this year exploring targets around its
Candelaria Cu-Au mine in Region III which it recently acquired
from Freeport-McMoRan (NYSE: FMI) for US$1.852B. Speaking
in a conference call, CEO Paul Conibear said LUN plans to maintain similar levels of exploration spending over the next three
years as it tests brownfield targets and underground extensions at the site. The program represents more than half of its
2015 exploration budget which it has cut by around 20% to
US$60M (excluding work at FMIs Tenke Fungurume Cu-Co
mine in the Democratic Republic of Congo), following the recent drop in metals prices. The rest will be spent on exploration at LUNs existing mines or exploration projects in South
America and Eastern Europe. LUN has also launched a five year
mine plan optimization at Candelaria, the results of which are
expected in 2H15.
Photo: Herencia Resources
Herencia Resources (AIM: HER)
Yamana Gold (TSX: YRI)
Plans to focus exploration work at its El Peñon Au mine in Region II during 2015 on converting mineral resources to mineral
reserves and discovering new mineral deposits, through focused infill drill program at Esmeralda Sur, Laguna, Borde Este,
Caracoles, Sorpresa and the Providencia Norte structures. Mineral resources rose in 2014 to 919,000oz Au and 26.8Moz Ag,
up 6% and 11% respectively, contained in 3.7Mt @ 7.83g/t Au
and 228g/t Ag, as previously-identified targets were delineated
through drilling to verify mineralization. But Au reserves fell
14% to 1.7Moz as higher grade areas were mined while the
expected conversion of mineral resources to mineral reserves
was not achieved due to the narrower widths in some areas
and less drilling being completed in 2014.
Picachos Cu project in Region IV.
Has expanded the footprint of its Zulema Cu project in Region
III by over 1,300h in two deals. CMX acquired nine mining concessions covering 724h from Compañia Minera Casale, a company jointly owned by Chilean subsidiaries of Barrick Gold (TSX:
ABX) and Kinross Gold (TSX: K), for US$50,000. CMX has also
signed a letter of intent with two private Chilean individuals for
mining concessions covering 600h in the same area. Under the
deal, CMX will pay the vendors US$50,000 in cash and issue
600,000 shares. Zulema is located 30km from Lundin Mining’s
(TSX: LUN) Candelaria Cu-Au mine and 15km from the PanAmerican Highway. During 2015, CMX plans to carry out limited geophysical surveys to define and refine drill targets, followed by a first-phase drilling program in 2Q or 3Q, subject to
financing, said CEO Terry Lynch. “It is an ideal project to explore and develop from a cost perspective. Unlike projects further east at higher elevation, exploration work can be conducted year-round… With drilling costs at bargain prices we feel
that now is the time to push forward on Zulema”, he said.
© 2015 Chile Explore Report All Rights Reserved
Photo: Yamana Gold
Chilean Metals (TSXV: CMX)
El Peñon Au mine in Region II.
Medinah Minerals (OTC PINK: MDMN)
Said that Auryn Mining Chile SpA has intercepted high-grade
Au mineralization at its Altos de Lipangue property, near Santiago. Hole L15-24 intercepted 45m @ 0.78g/t Au from a depth
of 3m, including 1m @ 8.34g/t and a 5m zone of disseminated
Cu oxide @ 0.25% Cu. “This near surface Au mineralization has
not been encountered in previous drilling and provides an exciting new target on the Altos de Lipangue property”, said
MDMN.
13
www.cexr.cl
No.24 / March 2015
Exploration News
Metallum Ltd (ASX: MNE)
Has delineated potential for a porphyry Cu system and identified two possible drill targets at its 100%-owned Calvario Cu
project in Region IV. The prospect consists of a large hydrothermal alteration zone measuring 6,000m by 700m and dominated by quartz-sericite alteration, displaying characteristics of
the upper portions of a porphyry Cu system. Interpretations
from recent surface work and historic drilling in 2008-2010
indicate a possible mineralized potassic core at depths of more
than 200m from the surface. Drilling by Minera Fuego in 2008
for a secondary enrichment blanket intercepted moderate to
weak quartz-sericite alteration with minor Cu oxides as
coatings on pyrite and in fractures, and minor chalcocite mineralization indicating weak secondary enrichment. The fact
that no potassic alteration has been observed at Calvario suggests that the porphyry system is at an intermediate level of
erosion and that a possible mineralized potassic core can be
expected to occur at depths at over 200m from the surface
and be hypogene in origin.
Has begun shrink stoping and installed a decline ramp at its
San Sebastian mine, part of its El Roble Cu project in Region III.
The work has significantly increased the efficiency of the operation, reducing the drill and blast cycle times and providing
natural ventilation through the mine. MNE has also been able
to introduce a small haulage dump truck into the mine. Full
production haulage will begin once the first stoping panel has
been drilled and blasted between levels 1030 and 1090. The
mine continues to report continuously high grades, with a processed grade of 4.25% Cu and samples of up to 32% Cu. Meanwhile, work to establish a safe explosives dump in the mine
has encountered western extensions of the mineralized Viuda
vein, “giving further confirmation of the potential of the Viuda
vein to contribute to the mining operations at El Roble”.
Photo: Revelo Resources
Photo: Metallum Ltd
Revelo Resources (TSX: RVL)
Metallum’s El Roble Cu project in Region III.
The Calvario Cu project in Region IV, owned by Revelo.
B2Gold Corp (TSX: BTO)
Has signed a binding letter agreement with Arena Minerals
(TSXV: AN), granting BTO an option to acquire a 60% interest in
the Pampa Paciencia and Cerro Blanco properties. The properties cover 27,341h of ANs 149,235h Atacama property in Region II. Under the deal, BTO will be required to spend a minimum of US$20.5M on the property over five years and make
payments totaling US$630,000 to SQM (NYSE: SQM), the underlying property owner, over three years. BTO will also make
payments totaling US$2.5M to AN over three years. The deal
will meet all of ANs work commitment for the entire Atacama
project through to completion of the option, while covering
just 20% of the land position, “giving AN the flexibility to pursue further transactions on the remaining 80%”, said ANs CEO
William Randall. AN said it is in talks with a number of large
mining firms on possible JVs on various properties.
© 2015 Chile Explore Report All Rights Reserved
Capstone Mining
Plans to drill 15,000m at its Providencia Cu project in Region II,
targeting at least three of the principal Cu porphyry and IOCG
prospects at the site. A number of less advanced targets may
also be considered for drill tested. CS will also continue geophysics and geochemistry on Providencia and an adjacent
property. CS drilled 7,036m over 25 holes in November and
December 2014 after carrying out an airborne magnetic and
VTEM survey as well as sampling of soil, rock and stream sediment, and detailed geological mapping. Pole-Dipole Induced
Polarization and Vector Induced Polarization surveys and interpretation of all data sets are also underway. CS holds an option
with SQM (NYSE: SQM) to earn up to 70% in the prospect over
7.5 years. Providencia initially covered 350,000h, but must be
reduced to a maximum of 50,000h if a JV is ultimately formed.
CS plans to spend US$5.4M on Providencia during 2015.
14
www.cexr.cl
No.24 / March 2015
Exploration News
Hot Chili (ASX: HCH)
Photo: Hot Chili
Plans to include a Cu oxide operation in its Productora Cu project in Region III following a scoping study. The study estimated oxide resources at the site at ~25.6Mt @ 0.52% Cu, including 15.4Mt @ 0.58% Cu within the planned central pit. The
operation could produce up to 10,000tpa of Cu over 6-8 years
and would cut overall costs as resources were previously considered as pre-strip waste. A PFS underway at Productora, due
for delivery this year, will now include the oxide operation in
addition to concentrates production of 45-55,000tpa. The
scoping study, began last August and carried out by Australian
engineering consultants Mintrex, proposes a conventional
heap leach processing followed by a SX/EW circuit to produce
copper cathode using a second-hand processing plant of which
several exist in the zone due to the depletion of available ore.
Alternatively, HCH has signed LOIs with state mining development agency ENAMI and Sociedad de Exploración y Desarrollo
Minero SA (EXPLODESA) to toll ore from Productora.
Meanwhile, HCH subsidiary Sociedad Minera El Corazon Limitada has signed an MoU with Puerto Las Losas SA to study the
provision of port services at PPLs Las Losas port facility in
Huasco, 40km E of Productora. PPL is a JV between iron ore
Filo del Sol Cu-Au-Ag project in Region III and Argentina.
producer CAP (51%), HCHs second largest shareholder, and
agribusiness Agrocommercial AS Ltda (49%). PPL is to provide a
cost estimate of the PFS to be financed by HCH with a cap of
US$500,000. PPL has completed a scoping study to ship Cu Exeter Resource (TSX: XRC)
concentrate through Las Losas, an activity which has already Believes it has discovered an extensive, new, subterranean
aquifer, with no connection to surface water, through water
received environmental approval.
exploration drilling for its Caspiche Au-Cu project in Region III.
Pump testing of five large diameter exploration drilled at the
Peñas Blancas water concession has confirmed strong constant
water flows and rapid recharge rates, with an aggregate flow
rate of over 300l/s. The 2014 PEA for Caspiche calculated a
peak water demand of less than 50l/s for the 30,000tpd oxide
operation so the “discovery could provide an excellent long
term water resource for other potential users in this arid,
largely unpopulated region of Chile”, said CEO Wendell Zerb.
XRC now plans to complete the exploration program, including
two additional large diameter holes, by the end of May and
apply for water rights for the discovery.
Photo: NGEx Resources
doned in strong mineralization due to stuck drill rods. “Today's
results…have significantly extended the high grade Ag mineralization to the W of the current resource. We…are now drilling
larger step outs from the current resource and focusing on
areas we believe could represent potential feeders to the mineralization”, said CEO Wojtek Wodzicki. The eight holes
spanned a NS distance of just over 1.7km.
Photo: Exeter Resource
Productora Cu project in Region III.
NGEx Resources (TSX: NGQ)
Has intersected high-grade Ag in the first eight holes in an ongoing drill program at its Filo del Sol Cu-Au-Ag project in Region III and Argentina´s San Juan Province. Highlights included
38m @ 106g/t Ag in hole VRC80, 8m @ 565g/t Ag in Hole
VRC81 and 72m @ 338g/t in Hole VRC86. Hole VRC85 intersected 10m @ 3.41% Cu at the bottom hole but was aban© 2015 Chile Explore Report All Rights Reserved
Caspiche Au-Cu project in Region III.
15
www.cexr.cl
No.24 / March 2015
Corporate News
Metminco raises A$1M
ment in MARLs share price and the interest shown by institutional investors, MARL has terminated the Convertible Security
Meminco Limited (ASX: MNC) has completed an A$1M capital
Agreement signed with Bergen Global Opportunity Fund, LP
raising, with RFC Ambrian placing 179,191,151 shares at
last September. The agreement allowed MARL to acquire new
A$0.006 each. These included 54.375M shares placed with
assets in Suriname and Turkey, MARL noted.
MNCs six directors. The funds will be used to complete a PEA
for its Los Calatos Cu project in southern Peru, to secure mining access rights at the Mollacas Cu project in Region IV and to Mirasol names Tognetti to board
provide working capital. “The PEA is an important step to- Mirasol Resources (TSXV: MRZ) has appointed John Tognetti,
wards advancing Los Calatos, a designated Project of National chairman of Haywood Securities Inc., to its board of directors.
Interest, by assessing the economic viability of a smaller, high Tognetti is the largest shareholder of MRZ and has participated
grade, starter mining operation that focuses on the higher and/or arranged all its equity financing. “MRZ will benefit from
grade copper and molybdenum zones that occur within dis- Mr. Tognetti’s vast experience in both the investment business
crete anhydrite breccia zones”, said MD William Howe. MNC and the capital markets for resource exploration companies in
said it has been in advanced talks with third parties for a po- particular,” said CEO Stephen Nano.
tential deal for a “near term cashflow asset”.
Photo: Metminco
HER issues 379M shares
Los Calatos Cu project in southern Peru.
Herencia names new director
Sen Ming (Jimmy) Lim has been appointed to the board of Herencia Resources (AIM: HER) as the nominated representative
of Shining Capital Management Limited, of which he is MD.
Lim is also a director at a number of mining companies, including Maligreen Mining Company (Private) Limited, Pan African
Mining Company (Private) Limited, Pickwerl Mining Company
(Private) Limited, and Trench Mine (Private) Limited. Lim owns
10M HER shares while Shining owns 400M shares or 12.35% of
HERs total voting rights. “Jimmy’s experience in financial and
corporate affairs will be invaluable in contributing to the success of HER”, said HERs MD Graeme Sloan.
Herencia Resources (AIM: HER) has issued 379,137,545 shares
at GBP0.01 as part of its equity drawdown agreement with The
Australian Special Opportunity Fund, a New York-based institutional investor managed by The Lind Partners. As a result, Lind
holds 515,624,289 shares in HER, representing 14.25% of the
total issue capital and voting rights. Lind also holds 25M options to buy new shares @ 1.3316p and, through the remaining convertible loan note of US$25,000, a further indirect interest in 1,640,955 ordinary shares; which combined represents an indirect interest in 0.74%.
Lachlan Star appoints administrators
Lachlan Star (ASX: LSA) has appointed administrators after a
proposed sale of its Chilean subsidiary DMC Newco Pty to
Hamilton Place Associates LLC failed. “The board has concluded that the proposal was not capable of being progressed with
an adequate degree of certainty and in a timeframe that
would ensure the ongoing solvency of LSA and hence resolved
to make the appointment,” the firm said. The move will not
immediately affect LSAs Chilean operations, including the CMD
Au mine in Region IV. “We expect the administrators will work
closely with LSAs board of directors to determine the most
appropriate way forward for that operation”, LSA added.
Mariana Resources (AIM: MARL) has raised approximately
GBP1.8M through an equity placement. The net funds of
GBP1.76M will finance work at MARLs assets in Peru, Argentina and Suriname, including drilling. MARL will now issue
112,817,240 new shares @ GBP0.016. Following the placement, Exploration Capital Partners 2014 Limited Partnership,
part of the Sprott Group of Companies, has become a significant shareholder, holding 7.5% of the shares. “The funds
raised will advance a number of MARLs assets including the
upcoming deeper drilling at Soledad, scout drilling of high
grade gold and silver targets in Argentina and the continuation
of our drill targeting at the Nassau Gold project in Suriname”,
said CEO Glen Parsons. Meanwhile, following the improve© 2015 Chile Explore Report All Rights Reserved
Photo: Lachlan Star
Mariana raises GBP1.8M
The CMD Au mine in Region IV.
16
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No.24 / March 2015
Calendar
Conferences and Events Calendar
March 1st - 4th
March 24th - 25th
March 26th
April 13th
PDAC 2015
Latin America Mining
Summit
Competencies in Mining
Resources and Reserves
Exploration Forum 2015
Metro Toronto
Convention Center
Toronto, CANADA
www.pdac.ca/convention
Hotel Mercure
Santiago, CHILE
Hotel Antay
Copiapo, CHILE
Centro Parque,
Santiago CHILE
www.magenta-global.com.sg www.comisionminera.cl
www.explorationforum.cl
April 13th - 15th
April 15th
May 5th - 7th
May 11th - 15th
14th World Copper
Conference
Cesco Dinner
ARMINERA
Exponor
Grand Hyatt Santiago
Club Hipico
Santiago, CHILE
Santiago, CHILE
www.crugroup.com/events www.cescoweek.cl
Centro Costa Salguero
Recinto Ferial AIA
Buenos Aires, ARGENTINA
Antofagasta, CHILE
www.caem.com.ar/arminera www.exponor.cl
May 18th - 20th
May 31st - June 1st
June 8th - 10th
Canadian Investor
Conference
GEOMIN 2015
Vancouver Convention
Center West
Vancouver, CANADA
Hotel Enjoy
Antofagasta, CHILE
May 20th - 21st
IX Congreso Internacional Latin America Down
de Prospectores y Explora- Under 2015
dores
Sheraton on the Park
Sheraton Lima &
Sydney, AUSTRALIA
Convention Center
Lima, PERU
www.latinamericadownunde
www.proexplo.com.pe
r.com
www.cambridgehouse.com
www.gecamin.com/
geomin
September 9th
September 21st - 25th
October 4th - 8th
Asset Valuation and
Capital Markets
PERUMIN Mining
Convention 2015
Chilean Geological
Congress
Hotel Intercontinental
Santiago, CHILE
Hotel Radisson
Santiago, CHILE
Campo Ferial Cerro Juli
Arequipa, PERÚ
www.cexr.cl
www.comisionminera.cl
www.convencionminera.co
m
Hotel-Casino Enjoy
La Bahia de Penuelas
La Serena, CHILE
www.congresogeologicoc
hileno.cl
August 12th - 13th
© 2015 Chile Explore Report All Rights Reserved
17
www.cexr.cl
No.24 / March 2015
The Chile List / Updated on February 27th 2015
Nano Cap
Ticker
Shares (M)
AQM Copper
AQM
139
Cerro Grande Mining
CEG
Chilean Metals
Condor Resources
Fully
<C$10m
Price
Mkt Cap ($M)
Cash ($M)
Debt ($M)
139.246
0.065
9.04
N/A
0
25.4M
110
120
0.011
1.21
N/A
0
14.3M
PBX
16.1
18.5
0.005
0.08
N/A
0
14.4M
CN
81.2
100.8
0.055
4.47
0.8
0
13.65M
Diluted (M)
Cougar Minerals
COU
25
27.6
0.01
0.25
N/A
0
12.6M
Ginguro Exploration
GEG
82.9
108
0.075
6.22
0.7
0
5.0M @ $0.56
Global Hunter
BOB
14
14
0.035
0.05
0.0185
2.5
Goldeye Explorations
GGY
46.7
65.9
0.045
2.10
N/A
0
16,4M
New World Resource
NW
13.3
17.7
0.03
0.40
0.7
0
4M @ 0.2 Mar 2015
Pinestar Gold
PNS
28.2
28.2
0.03
0.85
N/A
0
N/A
Revelo Resources
RVL
91.4
129.6
0.0125
1.14
N/A
0
1,23M @ $0.7 Jun
2015, 1.44M @ $0.88
Jan 2016, 28.5M @
$0.31 Apr 2019
0
Sendero Mining
SM
21.9
28.5
0.005
0.11
0.5
0
5.4M
Savant Explorations
SVT
70.65
88.06
0.015
1.06
0.7
0
11.8M
Ticker
Shares (M)
Price
Mkt cap ($M)
Cash ($M)
Debt ($M)
C$10-100M
AN
60.8
67.2
0.145
8.82
1.6
0
672k @$0.61 Apr
2014 / 7.1M @ $0.80
Oct 2014
Micro Cap
Arena Minerals
Fully
Diluted (M)
Apogee Silver
APE
301
371
0.005
1.51
11.2
0
N/A
Coro Mining
COP
159.4
177.9
0.03
4.78
0.4
0
10.5
Lachlan Star
LSA
147.3
108
0.024
3.54
2.32
0
16.5M
Los Andes Copper
LA
200.4
200.9
0.18
36.07
0.6
0
None
Mirasol Resources
MRZ
44.2
47.9
0.96
42.43
19.3
0
2.2M
Orosur Mining
OMI
96.6
100.8
0.2
19.32
10.8
4.9
Regulus Resources
REG
99.9
118.9
0.395
39.46
3.2
0
12.5m @ $1.60
Southern Hemisphere
SH
248.5
286.32
0.04
9.94
3
0
N/A
TriMetals Mining Inc
4.2
TMI
135.7
144.2
0.08
10.86
29.5
0
1.7M
White Mountain
Titan
WMTM
73.8
86.6
0.35
25.83
2
0
12.7M
Aus Capital
Ticker
Shares (M)
Fully
Price
Mkt cap (A$M)
Cash (A$M)
Debt (A$M)
Diluted (M)
(A$)
Castillo Copper
CCZ
423
423
0.001
0.42
0.4
N/A
N/A
Condor Blanco Mines
CDB
938
1,116
0.001
0.94
N/A
N/A
N/A
Equus Mining
EQE
374.3
378.3
0.01
3.74
7.3
N/A
N/A
Estrella Resources
ESR
108.3
116.08
0.026
2.82
1.1
0
None
Helix Resources
HLX
235
270
0.038
8.93
1.8
N/A
N/A
Hot Chili
HCH
347.7
358.7
0.14
48.68
20
25
N/A
Kingsgate Consolida-
KCN
224
N/A
0.79
176.96
N/A
N/A
N/A
Oro Verde
OVL
360
420
0.007
2.52
0.267
N/A
N/A
Oz Minerals
OZL
303
303
3.81
1154.43
219
N/A
N/A
ABOUT CHILE EXPLORE REPORT: Chile Explore Report is published twelve times a year during the first week of each month by Tiger Information Services SpA, Badajoz 130, of 1406, Las Condes, Santiago; legal representative Iain Cassidy,
[email protected]. The information contained herein is derived from sources believed to be reliable but no warranty expressed or implied exists between the recipient and the Publisher that this information is accurate. The
contents of Chile Explore Report are intended for information purposes only based on news and information obtained and/or researched by the Publisher and is not intended to be construed as advice to buy or sell shares in any
security or asset. The Chile Explore Report is intended to be authoritative, critical and independent. The Publisher is not a stock tipper or promoter and is not paid, sponsored, provided with stock options or otherwise enticed to write
positive pieces about the companies covered. The Publisher does invest in some of the companies’ active in the Chile exploration sector and ends up with dogs as well as winners. The Publisher has been involved in mining information
research, analysis and publication for over ten years including roles such as investor relations, media relations, senior reporter and research consultant for companies involved in mining and exploration, and reputable industry information providers. The Publisher is not a registered securities professional and as such is not qualified to give personal or individual investment advice. Resource investing is risky and you could lose part or all of your investment. Consult a
registered investment professional before making any investment in any security. For more information contact please write to [email protected]. COPYRIGHT: © 2013 Chile Explore Report. All Rights Reserved. Unauthorized
duplication or distribution of all content herein prohibited. This document is copyright protected and may not be copied, disseminated or distributed without the prior express consent of the publisher.
© 2015 Chile Explore Report All Rights Reserved
18
www.cexr.cl
No.24 / March 2015
The Chile List / Updated on February 27th 2015
Australian Cap
Nano Cap
10,00
1200,00
9,00
1000,00
8,00
7,00
800,00
6,00
600,00
5,00
4,00
400,00
3,00
200,00
2,00
1,00
0,00
CCZ
CDB
EQE
ESR
HL X
HCH
KCN
OVL
0,00
OZL
AQM CEG
Micro Cap
PBX
CN
COU
GEG
BOB
GGY
NW
PNS
RVL
SM
SVT
Small-Medium Cap
600,00
45,00
40,00
500,00
35,00
30,00
400,00
25,00
300,00
20,00
15,00
200,00
10,00
5,00
100,00
0,00
0,00
ARG
Small-Med
Cap
Ticker
Shares (M)
Amerigo Resources
ARG
173.7
Atacama Pacific Gold
ATM
Capstone Mining
Fully
ATM
CS
EDR
XRC
HER
MND
NGQ
RBI
SSO
>100M
Price
Mkt cap ($M)
Cash ($M)
Debt ($M)
187.4
0.315
54.72
9.2
0
None
55.3
64.8
0.3
16.59
20.0
0
0.2M @ $1.00 4M @
$1.40
CS
382
403.3
1.47
561.54
500.0
0
None
Endeavour Silver
EDR
102
106.8
2.89
294.78
44
29
0
Exeter Resource
XRC
88.4
96.8
0.65
57.46
30
0
None
Herencia Resources
HER
24.43
21.40
0.24
5.86
N/A
0
N/A
Mandalay Resources
MND
408.8
425.9
0.91
372.01
69
60
None
NGex Resources
NGQ
187.7
192.5
1.06
198.96
34
0
None
RB Energy
RBI
263.3
282
0.075
19.75
64
50
10.3M
Silver Standard
Resources
SSO
80.7
80.7
6.63
535.04
234
N/A
None
Tot Mkt Cap
Ave Mkt Cap
Biggest Gainers
Diluted (M)
Biggest Losers
Sector
NW
50% ESR
-35%
Nano Cap
AN
45% LSA
-27%
Micro Cap
ARG
37% SVT
-25%
Sml-Med Cap
RVL
25% BOB
-22%
Total
2346.22
© 2015 Chile Explore Report All Rights Reserved
26.97
Change %
2.07
2%
202.55
18.41
1%
2116.71
211.67
1%
77.39
1%
19