August/September 2016 | Volume 14 Issue 5 BRITISH COLUMBIA’S GOLDEN TRIANGLE Exploring Québec GOLD OUTLOOK Oil, Gas Helium COBALT US / CDN .95 5 $ Publications Mail Agreement No.40845066 Publications Mail Agreement WE DO MINING DIFFERENTLY. Our company provides funding to mining companies, and in return we receive the right to purchase precious metals at a predetermined price per ounce. With cost certainty, we can consistently deliver amongst the highest cash operating margins in the mining industry. Discover the unique perspective we offer. www.silverwheaton.com NYSE:SLW TSX:SLW CONTENTS AUGUST/SEPTEMBER 2016 WE DO MINING DIFFERENTLY. DEPARTMENTS EDITOR’S COMMENTS 5 Our company provides funding to mining companies, Mining stock bull run looks and in return we receive the right to purchase to have legs precious metals at a predetermined price per ounce. by Ellsworth Dickson With cost certainty, we can consistently deliver OFF THE WIRE 37 amongst the highest cash operating margins Starcore International Mines Ltd. in the mining industry. Probe Metals Inc. Discover the unique perspective we offer. COMING EvENTS 64 www.silverwheaton.com Advertisers’ List 64 EPILOGUE 66 Financing opportunities open up for quality projects by David Duval 6 FEATURE AT THE MARKET 24 Iconic Minerals starts lithium brine The Golden Triangle of British Columbia 6 Sell in May – No Way! project drilling 31 by Dr. Edward Schiller by Rodney Blake by Ellsworth Dickson QUÉBEC EXPLORATION SPECULATIONS 25 Argonaut Gold targets mid-tier status 32 Québec exploration recovering after Are China and Russia heading toward four-year downturn 14 a gold standard? ausTRALIAN UPDATE 33 NYSE:SLW TSX:SLW by Simon Rees by Leonard Melman Orocobre increasing lithium carbonate Osisko Mining expands Windfall production Lake gold deposit 17 BROKER’S PICKS 26 by Greg Barns Stornoway Diamond building Winston Gold Mining envisions small Québec’s first diamond mine 18 high-grade operation NEW DISCOVERIES 34 HPQ Silicon Resources plans silicon by Stew Vorberg Xtra-Gold finds new gold zones at Cobra mining/metal production 19 Creek in Ghana Québec Mining Companies 20 What investors should look for 92 Resources confirms lithium Sirios Resources intersects in a lithium company 27 occurrence; starts program high-grade gold at Cheechoo 21 by Ellsworth Dickson Golden Arrow Chinchillas Canadian Government commits to MINING pre-development program underway 38 implementing United Nations Golden Predator’s high-grade Declaration of the Rights of Indigenous gold 3 Aces Project 28 Nicola Mining: a new start with cash flow 40 Peoples 36 by Ellsworth Dickson by Ellsworth Dickson by Robert Simpson A perfect storm for precious metals 29 Transition Metals: an active project INVESTMENT by Thomas Schuster generator t 42 INSIGHTS & INVESTMENTS 22 by Jennifer S. Getsinger, PhD, PGeo Marathon Gold: building gold resources Golden Queen Mining moving toward a PEA towards full production 30 Prosper Gold defining drill targets at by Barry Muir Ashley gold prospect 43 AUGUST/SEPTEMBER 2016 www.resourceworld.com 3 Strongbow Exploration acquiring MINING WORLD UK tin project 44 Industrial Fabrication: purpose built mining equipment 54 AUGUST/SEPTEMBER 2016 West High Yield Resources planning by Kathrine Moore Volume 14, Issue 5 magnesium mine 45 Co-Publisher WipWare’s Solo system: innovative Editor-in-Chief Viscount Mining – Sumitomo cleared on site material monitoring Ellsworth Dickson for Nevada drilling program 46 and analyses 56 Editor Kathrine Moore by Ellsworth Dickson by Kathrine Moore Co-Publisher Paul Dickson Largo Resources to target vanadium Phoenix Extreme Conveyor battery market 47 Belt Solutions 56 Contributing Editors Dr. Edward Schiller by Peter Kennedy David Duval Robert Simpson Maverix Metals: the timing is right OIL & GAS Contributing Writers – new emerging metal streamer 48 THE OIL PATCH REPORT 58 Laura Barker • Rodney Blake Jane Bratun • Jennifer Getsinger by Andrew Nelson ARC Resources producing 10,000 Peter Kennedy • Bruce Lantz Leonard Melman• Barry Muir barrels/day in northeast BC Andrew Nelson• Troy Nazarewicz Q-Gold Resources drilling by Bruce Lantz Thomas Schuster • Stewart Vorberg promising VMS target 50 Australian Correspondent AltaGas signs British Columbia Greg Barns Pan American drilling Kootenay’s propane MOU 59 Art Director, Production Manager Promontorio-La Negra prospects 50 by Bruce Lantz Jocelyne Laflamme Circulation Dominion Diamond to develop 1-877-484-3800 Jay diamond project 51 GREEN TECHNOLOGIES Advertising Developments in Green Technologies 58 Irene Fournier, Advertising Manager Jessica Katrichak Cobalt: a critical commodity 52 by Jane Bratun 1-877-484-3800 by Troy Nazarewicz Resource World Magazine is published 6 times a Huge helium reserve discovered year by Resource World Magazine Inc. #709–700 West Pender St., Vancouver, BC V6C 1G8. ©2002-2016 Resource World in Tanzania, Africa 62 Magazine Inc., all rights reserved. No part of this magazine by Kathrine Moore may be reproduced, in whole or in part, without the expressed permission of the publisher. Reprints available by request at the above address or by emailing: [email protected]. DisclaiMER: While every effort has been made to ensure the accuracy of information contained in Resource World Magazine, and the reliability of sources, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions or forward looking statements made by advertisers. Articles and advertisements in Resource World TSXV: MAI Magazine, are not solicitations to buy, hold or sell specific securities; they are for information purposes only. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees. Investors should be aware that risk is associated with any security, strategy or investment and are advised to seek the counsel of a competent investment advisor before making any investment, or utilizing any information contained in this publication. Subscription, advertising and circulation information can be obtained by visiting our website: www.resourceworld.com or contacting our offices by phone: 1-877-484-3800 or by writing to the address below. Publication Mail Agreement No. 40845066 Return undeliverable Canadian addresses to: Circulation Department 709-700 West Pender Street Vancouver, BC Canada V6C 1G8 Email: [email protected] Issn 1712-253 Printed in Canada by Mitchell Press www.MineraAlamos.com 4 www.resourceworld.com AUGUST/SEPTEMBER 2016 editor’s COMMENTS Ellsworth Dickson Mining stock bull run looks to have legs or some time Resource World has Resources are up 500%. Indeed, after four • European economies and banks are in noted that many quality mining years of suffering, gold and mining stocks trouble stocks were so low in value that are the hottest investments on the planet. • Various political uncertainties Fthere was no use in relying on fundamentals The Top 10 performers on the S&P/TSX • Gold is perfect hedge for the above to figure out what they should be worth. Composite Index for the first half of this problems Between generally falling commodity prices, year were all mining companies. a slowdown in China’s industrial activity Credit Suisse is of the view that gold and a relentless overriding negative investor Here are some of the reasons for the pre- could reach US $1,500/oz in early 2017 sentiment, mining stocks suffered a multi- cious metals stock recovery: while other analysts are more bearish and year downturn. That is now history as many • Mining stocks were oversold think gold could fall below $1,000/oz. quality mining stocks have increased in • Ridiculously low quality mining stock Silver, being both money and an indus- value 200%, 300% and more. prices set the stage for a comeback trial metal, has different fundamentals. Mining analyst gurus such as Sprott’s • Exploration and mining companies can Some forecasters are predicting it to rise to Rick Rule encouraged mining stock inves- now raise funds (more private placements between US $25 and $32/oz by year end. tors to acquire quality mining stocks when at higher dollar figures) So far, it has done well and is holding at they were ridiculously low priced. He • Tremendous demand for gold by some around US $20/oz. added that when the tide turned it would countries and individuals Some mining analysts like copper and be “explosive”. He was right. “We are in • Fears that US monetary policy is not zinc for mid-term investments. Since it the beginning of a bull market,” he said at working; printing more money delays pain costs more to produce uranium that what a recent resource investor conference. He and devalues dollar in relation to gold it sells for, with 509 nuclear reactors also noted that the greatest fear that inves- • Quantitative Easing has not generated planned, ordered and proposed plus 62 tors should have is themselves; that is, how economic growth under construction, as well as Japanese they pick stocks and when to buy and sell. • US debt is unserviceable reactors coming back on line, a rise in the It was February when the action started. • Fear of US dollar collapse price of uranium and uranium stocks is Some mining stocks like Golden Arrow • Brexit fears generated uncertainty inevitable – just not next week. So now the questions are: Is this ris- ing mining stock valuation situation sustainable, will it plateau or will there be a temporary correction? Unless you are a nimble trader, “irrational exuberance” stock valuations are pretty dangerous as they can’t last. However, many quality mining stocks, while having 200% price increases, are still below prices of a few years ago. There looks to be still some “rocket fuel” left. n Ellsworth Dickson, Editor-in-Chief Email: [email protected] T: 604 484 3800 | 1 877 484 3800 AUGUST/SEPTEMBER 2016 www.resourceworld.com 5 Setting up a diamond drill pad at Colorado’s KSP property 15 km southeast of the former Snip Mine. Photo courtesy Colorado Resources Ltd.