Taking Stock: October Copper Juniors Round-Up

As it sifts through proprietary historical data for its Terrier Lake copper, nickel and platinum-group metals claims in the Labrador Trough, Rockland Minerals (TSXV:RL) has discovered the claims have potential for mineralization expansion.

Drill results

Greenland-focused North American Nickel (TSXV:NAN,OTCBB:WSCRF) recently discovered high-grade nickel-copper-cobalt mineralization at Imiak Hill, located on the north end of its Maniitsoq project in Southwestern Greenland. Three drill holes returned the most promising grades:

• DDH MQ-13-026, at 149 meters down the hole:
  • Intersected 25.51 meters grading: 3.25-percent nickel, 0.48-percent copper, 0.11-percent cobalt
    • Including: 18.62 meters of 4.31-percent nickel, 0.62-percent copper, 0.14-percent cobalt
    • Including: 7.12 meters of 5.18-percent nickel, 0.81-percent copper, 0.17-percent cobalt
    • Including: 4.01 meters of 6.04-percent nickel, 0.64-percent copper, 0.19-percent cobalt
• DDH MQ-13-024, at 136 meters down the hole:
  • Intersected 14.9 meters grading: 2.67-percent nickel, 0.39-percent copper, 0.09-percent cobalt
    • Including: 5.23 meters of 5.03-percent nickel, 0.3-percent copper, 0.16-percent cobalt
• DDH MQ-13-019, at 118 meters down the hole:
  • Intersected 8.68 meters grading: 1.53-percent nickel, 0.43-percent copper, 0.06-percent cobalt
    • Including: 3.56 meters of 3.27-percent nickel, 0.66-percent copper, 0.1-percent cobalt

NovaCopper (TSX:NCQ,NYSEMKT:NCQ) released some significant near-surface drill results from the Ruby Creek zone of its Bornite project. The additional assay results from exploration diamond drilling are the second set of results released from the area and include 10 of 17 holes for a total of roughly 8,140 meters drilled in 2013.

With this campaign, the company was aiming to expand mineralization on two discrete targets: “1) near-surface, moderate-grade (~1% copper) and potentially open-pit mineable mineralization at the Ruby Creek zone; and 2) deeper, high-grade and potentially underground exploitable copper mineralization at both the South Reef and Ruby Creek zones.”

Nine of the 10 holes returned significant intervals of copper mineralization.

Resource Estimates

Panoro Minerals (TSXV:PML) boosted its resource estimate for its Southern Peru-based Cotabambas porphyry copper-gold–silver project. The new estimate shows 4 percent more copper, a 41-percent increase in gold and 51 percent more silver. That puts the project’s base-case indicated mineral resource at 117.1 million tonnes at 0.42-percent copper, 0.23 g/t gold, 2.74 g/t silver and 0.0013-percent molybdenum at a cut-off of 0.2-percent copper equivalent.

Commissioning

Nevsun Resources (NYSEMKT:NSU) is in the process of commissioning a new copper flotation plant at its Bisha project. The company has been progressing well and is expecting to produce saleable copper concentrate and achieve commercial production by year end.

In mid-October, Nevsun announced that it had shipped its first ocean shipment of 11,000 tonnes of copper concentrate.

Production

Manitoba-based VMS Ventures (TSXV:VMS) and its joint venture partner, Hudbay Minerals (TSX:HBM), kicked off October with initial production after the Manitoba government granted them an environment act licence for the Reed copper project. The licence permits the operation of the Reed mine, a 1,300-tonne-per-day underground copper mine, and its supporting infrastructure.

Mergers, acquisitions, and earn-ins

Zincore Metals (TSX:ZNC) announced this month that First Quantum Minerals (TSX:FM) has greenlighted the second stage of its earn-in for the Dolores copper porphyry project in Southern Peru. Through this commitment, First Quantum earned a vested 30-percent project interest and can earn an additional 20.1-percent interest through completing the second stage of obligations.

Delores is a joint venture between both Zincore and First Quantum, with all activities being funded by First Quantum. To date, the companies have confirmed the existence of a large porphyry system at Delores that spreads at least 3.5 kilometers north to south and 1.5 kilometers east to west. Six different phase porphyry intrusions have been intersected.

Also looking at an earn-in, Eurasian Minerals (TSXV:EMX,NYSEMKT:EMXX) announced that via its subsidiary, Bronco Creek Exploration, it has entered into three exploration and earn-in agreements with Savant Explorations (TSXV:SVT) for the Jasper Canyon, Buckhorn Creek and Frazier Creek porphyry copper projects.

According to the press release, each property is covered by a separate exploration and earn-in agreement. For each, Savant can earn an initial 60-percent interest in the project by spending a total of $2,070,000, delivering 800,000 shares of Savant, reimbursing EMX’s 2013 to 2014 property holding costs and paying a total of $342,500 in several tranches over a five-year period. Furthermore, upon completion of a NI 43-101 compliant preliminary economic assessment for each project, Savant will make an additional payment to EMX of $75,000.

Financing

In a market where financing is a tough sell, it is always a positive sign when a company is able to close a financing.

In early October, Nevada Copper (TSX:NCU) received an additional US$15 million under its US$200-million senior secured loan facility and copper concentrate offtake agreement. The company was eligible for the second tranche of the funds following the receipt of the key state and county permits. With roughly $60 million in the bank, the company can continue construction of the Stage 1 underground mining operation at its Pumpkin Hollow project.

Nevada Copper also executed a US$24-million equipment finance facility with Caterpillar Financial Services Corporation. That was part of the overall project capital funding for the Stage 1 work at Pumpkin Hollow.

Last month, Kombat Copper (TSXV:KBT) completed the first tranche of its private placement financing of subscription receipts. The gross proceeds of the placement were $2,903,700, which consisted of 29,037,000 subscription receipts at a purchase price of $0.10. Currently, the proceeds are in escrow pending satisfaction of certain conditions.

The non-flow through portion of Aston Bay Holdings‘ (TSXV:BAY) non-brokered private placement was over-subscribed fifteen days following the announcement,. The company is now looking to issue up to 52 non-flow through units at a price of $3,000 per unit for gross proceeds of up to $156,000.

Community support

American CuMo Mining (TSXV:MLY,OTCQX:MLYCF) got a healthy dose of support for its CuMo project in Idaho from the Boise County Board of County Commissioners and the Idaho Department of Commerce last month. The support for the CuMo project came in the form of written comments that were submitted during a supplemental environmental assessment being conducted by the US Forest Service. Both Boise County and the Department of Commerce advocate for the advancement company’s deposit.

Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article.