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So to whom can you look to turn sugar into gold? Perhaps the leading name right now is Cosan (NYSE: CZZ), the largest sugar and ethanol producer in Brazil. Of course, Archer Daniels isn't putting all its husks into just one corn silo, and has itself expressed a desire to diversify into the sugar cane-based ethanol market.
SUGAR PRODUCERS
Demand keeps prices firm
http://free.financialmail.co.za/09/0403/moneyinvest/fmoney.htm
Buy Cosan on Higher Sugar Prices, Weak Real, Citigroup Says
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By Allen Wan
April 3 (Bloomberg) -- Investors should buy shares of Cosan SA Industria e Comercio, the world’s biggest sugar-cane processor, as higher prices for the commodity and a weaker Brazilian currency may boost earnings, Citigroup Inc. said.
“We look for strong sugar prices in 2009-10, as demand is relatively resilient to an economic slowdown and production is down,” Tereza Mello, an analyst at Citigroup, wrote in a note dated yesterday.
Cosan rose the most in the Bovespa index, gaining 4.6 percent to 11.50 reais at 11:26 a.m. New York time in Sao Paulo trading.
Brazil, Mexico close with four weeks of wins
Mexico to trigger swap facility with U.S.
By Carla Mozee, MarketWatch
Last update: 7:26 p.m. EDT April 3, 2009(MarketWatch) -- Latin American equity markets rose Friday, with sugar producer Cosan Ltd. leading advancers in Sao Paulo and helping the country's benchmark move toward its longest weekly winning streak in nearly a year.
Brazil's Bovespa rose 0.6% to 43,982.92, with shares of Cosan
The market "has yet to realize" the positive impact that higher sugar prices and a weaker local currency will have on the sugar producer's cash generation, said Citigroup analyst Tereza Mello in a note to clients Friday.
The broker also said it's recognizing the integration advantages that come with Cosan's purchase of a fuel distribution chain in light of volatile ethanol prices at the mill.
With this week's advance 5.9%, the Bovespa will mark its longest weekly winning streak since mid-April through mid-May of 2008.
Sugar-ethanol producer Cosan posts qrtly net loss
Fri Mar 13, 2009 10:30am EDT
SAO PAULO, March 13 (Reuters) - Cosan group (CZZ.N), one of the world's largest sugar and ethanol producers, posted a wider quarterly net loss after incorporating acquisitions.
Its net loss for the fiscal third quarter ended Jan. 31 was $64.6 million, compared with a loss of $59.7 million a year earlier, the company reported late Thursday.
Earnings before interest, taxes, depreciation and amortization, a measure of cash flow known as EBITDA, totaled $92.2 million, up more than eightfold from $11.2 million a year earlier due to the incorporation of new fuel distribution and lubricants assets.
The results were based on U.S. GAAP accounting principles.
Results based on local accounting standards in the Brazilian currency showed a quarterly profit of 5.2 million reais compared with a loss of 71.4 million reais a year earlier.
In its earnings report, Cosan said it included two months of consolidated results from filling stations and lubricants assets of Esso in Brazil, which it purchased from Exxon Mobil (XOM.N) last year. The Esso division is now called Cosan Combustiveis and Lubrificantes (CCL).
The company said quarterly net operating revenue grew nearly threefold to $1.1 billion. It posted an operating profit of $43.2 million, compared with an operating loss a year earlier.
Cosan said net debt grew to almost $1.3 billion at the end of the most recent quarter, compared with a net credit of $48.8 million a year earlier, due to the cost of incorporating CCL and loans from the BNDES development bank for investments in biomass thermoelectric plants.
Cosan posted a net loss of $208 million for the three quarters of the 2009 season ended on Jan. 31, up from a loss of $40.7 million a year earlier.
The company said in a separate note to the local market regulator that it had incorporated the large milling acquisition, Nova America Agroenergia, which will boost the group's milling capacity by 10.6 million tonnes of cane a year.
In exchange, the holding company Rezende Barbosa, which controlled Nova America Agroenergia, will become one of the principal shareholders in Cosan, with an 11 percent equity stake.
Cosan posted a record cane crush of 44.2 million tonnes this past 2008/09 season in the center-south that ended harvest in December. It yielded 1.7 billion liters of ethanol and 3.27 million tonnes of sugar.
In the third quarter, the company invested 426.9 million reais in land, including 166.3 million reais in the Jatai greenfield milling project in Goias state. It had ongoing investments of 103.5 million reais in biomass thermoelectric plants. ($1=2.311 reais) (Reporting by Reese Ewing and Alberto Alerigi Jr; editing by John Wallace)
CZZ looks good here...
Nice.
Nice chart.
$$$$
lol, and I'm in it.
Cosan Limited is a global ethanol and sugar company with integrated operations in Brazil. The Company owns and operates a sugar-loading terminal at the Port of Santos in the State of Sao Paulo through its subsidiary, Cosan Operadora Portuaria S.A. (Cosan Portuaria). Cosan operates in three segments: sugar, ethanol, and other products and services. The sugar segment mainly operates and produces a variety of sugar products, including raw, organic, crystal and refined sugars, which are sold to a range of customers in Brazil and abroad. The ethanol segment substantially produces and sells hydrous, anhydrous and industrial ethanol, which are sold primarily to the Brazilian market. The other products and services segment consists primarily of port services that it provides to third parties, consumer products under the Da Barra brand, electricity sales and diesel fuel sales to its agricultural services providers. On February 14, 2008, Cosan acquired 100% of Benalcool Acucar e Alcool S.A.
Dead-cat bounce today or was 2 the bottom?
THV I recall some insider buying on this one
Thelon Ventures to acquire Sonore property
Thelon Ventures Ltd THV
Shares issued 5,231,051 Oct 21 close $0.18
Wed 22 Oct 2003 News Release
Mr. Glen MacDonald reports
GOLD PROPERTY ACQUIRED
Thelon Ventures has entered into an option agreement with Peter Bambic of
Hull, Que., whereby Thelon can acquire the exclusive option to earn up to a
100-per-cent interest in the 1,793-acre Sonore gold property in the Abitibi
greenstone belt, near Val d'Or, Que. This acquisition is part of Thelon's
long-term strategy of building a diverse portfolio of projects with
world-class potential. The Sonore property is on the immediate northern
boundary of a one-million-ounce producer, the Beaufor/Perron gold mine.
This mine is located on the eastern edge of the Bourlamaque batholith, and
has reserves and resources of 1,921,000 tons with a grade of 0.22 ounce per
ton. In 2002, Beaufor/Perron produced a total of 56,000 ounces of gold was
at a cost of $163 per ounce. Additional exploration has more than replaced
the ounces mined.
The Abitibi greenstone belt of Canada, has produced over 140 million ounces
of gold. It is one of the world's most prolific gold and base metal regions
that continues to generate over one million ounces a year. The district of
Val d'Or accounts for 15 million ounces from 27 mines. Two of these, Sigma
and Lamaque, produced 10 million ounces during a 65-year period.
Gold mineralization in this camp is associated with quartz veins that form
in brittle dikes or granitic rocks. When gold bearing structures intersect
these harder bodies, they crack and veins are formed. As a result, most of
the mines are located in and around the Bourlamaque batholith and various
brittle dikes.
Thelon's Sonore property contains two mineralized zones one-half-mile
apart: the southern one is an early 1940s gold resource with 181,400 tonnes
of 0.25 ounce per tonne (Quebec government report, ET 96-01, Desrochers,
1996). This resource calculation does not conform to current CIM reserve
reporting standards; the northern one contains drill intersections (El Coco
Explorations Ltd., 1979) of 16.5 and 3.6 feet with grades of 0.344 and 0.73
ounce per ton. These holes are 240 feet apart.
The property contains 2.5 kilometres of the margin of the Bourlamaque
batholith, a known host of gold mineralization in the Val d'Or camp. It
also contains a north-south ultramafic dike 800 feet east of the batholith.
This body will fracture in a similar fashion to the batholith, and will be
a large source of iron necessary to form pyrite. Gold drops out of solution
when the fluids form pyrite.
The terms of the property acquisition provide for Thelon to earn a
100-per-cent undivided interest in the property through staged payments of
$160,000, the delivery of 1.25 million common shares of the company and
incurring a total of $1.1-million of work expenditures on the property,
within five years, after receipt of exchange approval. There is a firm
commitment to spend a minimum of $100,000 on exploration in the first year.
The property is subject to a 2-per-cent net smelter return royalty on any
mineral production from the property. Thelon has the option to purchase
one-half of this royalty for $1-million.
A finder's fee in accordance with TSX Venture Exchange regulations is
payable to Mark Tommasi in respect of this acquisition.
"A considerable amount of study has gone into gold mineralization in the
Val d'Or camp since the mid-1980s. New ideas are helping junior mining
companies to discover new gold zones. The Thelon property has not been
exposed to this," says Glen MacDonald, PGeo, a director.
The company is planning a program to further explore the property with
geophysical surveys and core drilling to commence shortly. Mike Magrum a
qualified person under NI 43-101 has reviewed and approved the technical
data in this release.
Here is a recent article on CZZ:
Cdn Royalties envisages open-pit mining at Mesamax
By Rob Robertson
Ungava-Nunavik District, Que. -- There is no huge gossan, just a few frost-heaved, weakly mineralized rustic boulders. In fact, it's quite an unspectacular showing . . . but within a few metres of surface lies the newly discovered, 1.4-million-tonne Mesamax deposit, rich in nickel, copper and platinum group metals.
Canadian Royalties (CZZ-V) discovered Mesamax last year while exploring a southern belt of ultramafic bodies, which parallel a series of deposits that comprise the Raglan nickel mining operation of Falconbridge (FL-T) in the Ungava Peninsula region of northern Quebec.
Based on 41 holes completed to the end of last year, the partially drilled Mesamax is estimated by consulting firm Strathcona Mineral Services to contain an indicated resource of 1.4 million tonnes grading 2.1% nickel, 2.7% copper and 0.08% cobalt, plus 0.3 gram gold, 1 gram platinum and 4.2 grams palladium per tonne. The indicated portion includes 700,000 tonnes of massive sulphides grading 3.5% nickel, 4.4% copper and 0.14% cobalt, as well as 0.5 gram gold, 1.4 grams platinum and 4 grams palladium. The remainder occurs as disseminated net-textured sulphides.
An additional 130,000 tonnes grading 2.1% nickel, 2.5% copper and 0.09% cobalt, plus 0.3 gram gold, 1.1 grams platinum and 3.9 grams palladium, are categorized as inferred. A further 150,000 tonnes of near-surface, partially oxidized massive and disseminated sulphides at similar grades are excluded from the resource calculation pending metallurgical studies to determine its economic significance.
This year, Canadian Royalties targeted the Mesamax area with further drilling, including both infill and exploration holes. "There were some areas that had to be infilled to raise the level of confidence of the resource figures," Canadian Royalties Chairman Glenn Mullan told The Northern Miner during a site visit.
Mesamax lends itself to open-pit mining. "Our goal here is to define the shape of it for the economics," confirmed project geologist Todd Keast. "Exploration for these types of deposits is drill-intensive because the lenses can be quite small and irregular in shape, and they change rapidly."
One of the new 2003 holes drilled within the resource calculation area cut a 48.6-metre interval of sulphides averaging 1.79% nickel, 1.62% copper, 0.07% cobalt, 0.13 gram gold, 0.78 gram platinum and 4.97 grams palladium. This included a higher-grade, 11.1-metre section that ran 4.1% nickel, 3.24% copper, 0.16% cobalt, 0.25 gram gold, 1.65 grams platinum and 11.45 grams palladium.
The 2003 drilling has extended the strike length of the mineralized zone by about 30% to 250 metres. "Mesamax is not yet completely cut off in any one dimension," said Mullan.
Significant mineralization, with sections of platinum group metals (PGMs) averaging as much as 38.8 grams across 6 metres, has been encountered on the western extension, 25 metres beyond the 2002 drilling. Hole 03-73 intersected 44.3 metres of 1.44% nickel, 1.78% copper, 0.08% cobalt, 0.14 gram gold, 0.57 gram platinum and 7.3 grams palladium. This included a higher-grade, 16.2-metre section of 2.28% nickel, 2.72% copper, 0.1% cobalt, 0.1 gram gold, 0.85 gram platinum and 3.54 grams palladium.
The most westerly drilling to date, a 25-metre stepout from hole 03-73, has intersected the favourable ultramafic host with narrow zones of mineralization, including 0.7 metre of 1.62% nickel, 1.75% copper, 0.3% cobalt, 0.13 gram gold, 0.05 gram platinum and 32.3 grams palladium in hole 03-75.
Lower-grade mineralization has been intersected near the surface in stepout drilling on the eastern extension of Mesamax. Hole 03-77 intersected 7 metres of 0.77% nickel, 1.08% copper, 0.04% cobalt, 0.06 gram gold, 0.51 gram platinum and 2.19 grams palladium.
The deepest mineralized drill intercept into Mesamax is a 2.4-metre-long section in hole 03-74, which assayed 2.32% nickel, 1.32% copper, 0.15% cobalt, 0.06 gram gold, 0.61 gram platinum and 5.35 grams palladium at a depth of about 100 metres.
Drilling 350 metres east of the resource area has returned some interesting values in the favourable ultramafic host. Hole 03-85 intercepted 26 metres of disseminated sulphides carrying 0.25% nickel, 0.27% copper, 0.13 gram gold, 0.18 gram platinum and 0.79 gram palladium. The area is considered worthy of further drilling.
"The quickest way to add tonnage is by answering some of the obvious questions," said Mullan. "There are still some off-hole conductors and some other recent features that are completely unexplained at Mesamax."
Two drill rigs have been turning on the Raglan South trend since early July and will continue until poor weather forces the field season to an end. The sub-Arctic climate in the Nunavik region of northern Quebec typically provides a short, mild summer field season of 3-4 months before the return of high winds and winter weather. Temperatures during the "harsh" winter range between 0 and minus 50°C.
Nunavik is an immense region representing a third of the province. Some 8,700 Inuit reside in Nunavik, and almost all of the region's 14 villages are on the coast. Raglan is an area of gently rolling topography, north of the tree line. Moderate-to-steep, east-west-trending ridges and valleys, interspersed with small streams and lakes, characterize the topography. Vegetation is sparse and the permafrost extends from surface to depths of more than 400 metres.
To the end of August, Canadian Royalties had completed well over 100 holes in more than 15,000 metres of helicopter-supported drilling on the Expo, Mequillon and Tootoo areas. Assay results will be reported in batches over the next several months.
Canadian Royalties holds interests and royalties on a 1,074-sq.-km package, which consists of 38 properties. The properties are positioned mainly along the South trend, 90 km west of the coastal village of Kangiqsujuaq and 1,800 km north of Montreal. The properties are accessible by helicopter from the coastal communities of Kuujjuaq, Salluit and Kangiqsujuaq, all of which have daily air service from Montreal. The Donaldson air strip at the Raglan mine is operated year-round by Falconbridge. Permission may be obtained for scheduling charter flights in and out of the landing strip, which is just a few kilometres away from Canadian Royalties' exploration camp.
The South trend properties are centred on the Expo-Ungava project, under option from Ungava Minerals. The 206-sq.-km project contains a number of mineralized prospects, including the Mesamax and Expo deposits.
By completing exploration expenditures of more than $1.7 million, Canadian Royalties has earned a 70% interest, which will jump to 80% when it delivers a bankable feasibility study. Thereafter, should Ungava Minerals not contribute its pro rata share of expenditures, Canadian Royalties will acquire an additional 1% interest in the Expo-Ungava property for each $150,000 spent on behalf of Ungava. If Ungava Minerals' ownership is reduced to 10%, its interest will automatically be converted to a 1% net smelter royalty (NSR), and Canadian Royalties, at its option, may purchase the NSR during a 12-month period following the commencement of commercial production, at a price of $1.5 million.
The Expo-Ungava option agreement is subject to ongoing litigation. In the spring and summer of 2002, Ungava Minerals commenced arbitration proceedings against Canadian Royalties in an attempt to annul the Expo agreement and claim entitlement to Canadian Royalties' 100% interest in the neighbouring Phoenix property. An arbitrator ruled in favour of Canadian Royalties and dismissed each and every claim by Ungava Minerals. The arbitration award had the effect of preserving all of Canadian Royalties' rights under the Expo option and joint-venture agreement. The judgment was approved by the Quebec Superior Court, making it legally enforceable.
In response to Canadian Royalties' registering of the arbitration award in Ontario on Feb. 18, 2003, Ungava Minerals has filed a statement of defence and counterclaim against Canadian Royalties. Many of the claims raised by Ungava Minerals relate to, or were previously raised in, the 2002 arbitration hearing. The next motion on this matter is scheduled for early October.
In the meantime, having earned a 70% interest in accordance with the Expo-Ungava option agreement, Canadian Royalties requested the transfer of that interest on Dec. 12, 2003. To date, Ungava Minerals has not executed the documentation, and Canadian Royalties has begun arbitration proceedings against Ungava.
South trend
The South trend is a belt of mafic volcanics and related sediments into which a series of ultramafic rocks have intruded. Its counterpart is the Raglan trend, 15-20 km to the north, where a series of nickel-copper deposits enriched in PGMs trend east-west and form the basis of the Raglan mining camp. Raglan hosts proven and probable ore reserves of 18.1 million tonnes grading 2.88% nickel and 0.79% copper, with significant credits in cobalt and PGMs. In addition, there are 2.9 million tonnes of measured and indicated resources grading 1.95% nickel and 0.72% copper, plus 3.4 million tonnes of inferred resources at 2.7% nickel and 0.87% copper.
The Raglan area occupies the central part of the early Proterozoic Cape Smith fold belt, a rifted continental margin and arc-continental collision zone that strikes in an east-west direction across the Ungava Peninsula. This belt of rocks separates the Superior and Churchill provinces and can be correlated with other Proterozoic rocks to the southeast in the Labrador Trough and to the west of Hudson Bay in the Thompson nickel belt.
The stratigraphy of the Cape Smith belt is broadly subdivided into a lower sedimentary group, a central division of tholeiitic basalts and sediments (Povungnituk group), and an upper division of komatiitic basalts (Chukotat group). The Raglan trend is a regional, locally exposed, mappable horizon of mafic and ultramafic volcanic and shallow intrusive rocks, with minor interflow sediments.
The deposits at Raglan consist of clusters of discrete, sulphide lenses associated with peridotitic flow bodies along the contact of the Povungnituk and Chukotat groups. Economically significant mineralization has been found in nine different localities stretching across a 55-km distance. The nine areas are, from east to west: Donaldson, Boundary, West Boundary, Zone 13-14, Zone 5-8, Katinniq, Zone 2-3, East Lake and Cross Lake. These ultramafic bodies contain pervasive sulphide mineralization of mainly 1-3% finely disseminated pyrrhotite and pentlandite.
The individual ore lenses, which number more than 60, consist of a narrow zone of massive sulphides along the footwall contact overlain by net-textured and disseminated sulphides. The sulphide lenses are in channels and troughs at the base of the peridotitic flow, and they vary considerably in size and shape, ranging anywhere from 10,000 to 1.4 million tonnes in size. The Katinniq deposit alone contains more than 20 discrete lenses.
By comparison, the newly discovered Mesamax is one lens containing 1.45 million tonnes near the surface, making it a significant high-grade find.
"The South trend is the real gem now because Mesamax shows that it's not a low-grade environment," said Keast. "The challenge now lies in finding multiple deposits of high-grade massive sulphides."
History
Nickel and copper mineralization was discovered in the Cape Smith-Wakeham Bay area in 1937, but it wasn't until the 1950s that a number of exploration companies began to systematically explore the Ungava Trough, taking advantage of the Quebec government's geological mapping work. Asarco drilled off some resources at the Katinniq and Cross Lake targets. Raglan Nickel Mines and a Falconbridge subsidiary, Bilson Quebec Mines, followed Asarco in the late 1950s, and discovered a series of nickel-copper occurrences. Falconbridge consolidated its interest along the belt by merging with Raglan Nickel in 1966, whereupon it began examining development options. An exploration shaft was sunk on the Donaldson deposit in 1969.
Feasibility studies through the 1970s could not make the project work, and these efforts were halted when it was determined that the Raglan deposits would not economically support the construction of a greenfield smelter and refinery, based on resources in the 14-million-tonne range.
However, in the late 1980s and early 1990s, several significant events occurred, which advanced the project's prospects for development. These included the following:
-- Ice-breaking commercial vessels were developed, and these extended the traditional 4-month marine shipping window to eight months or more.
-- As a result of the James Bay agreement, each village received its own airstrip.
-- Cost-effective modular buildings became available, greatly facilitating construction of housing and other facilities on site, while reducing labour requirements and costs.
-- Additional reserves were discovered.
In February 1995, the Falconbridge board of directors voted to approve the $486-million cost of constructing the Raglan mine facilities. Commercial production began in April 1998. A dried concentrate is produced at the Katinniq mine, which is trucked 120 km north to Deception Bay for transport via ship to Quebec City, and then railed to the Sudbury smelter.
Over five years, Raglan has progressed from startup to design achievement and a 25% expansion through optimization to nearly 1 million tonnes of sulphide ore production per year. The mine has 18 years of life remaining.
To the end of 2001, about 3.2 million tonnes of ore grading 2.98% nickel, 0.88% copper, 0.06% cobalt and 3 grams combined platinum-palladium have been mined from open-pit sources on Zone 2-3 and by underground methods at Katinniq. Another 868,000 tonnes at 3.35% nickel and 0.97% copper were processed in 2002, resulting in production for the year of 24,636 tonnes nickel, 6,500 tonnes copper, and 386 tonnes cobalt in concentrate.
For the first six months of 2003, Raglan output totalled 13,412 tonnes nickel and 3,422 tonnes copper, compared with 11,513 tonnes nickel and 3,074 tonnes copper in the same period of 2002. Recent operating cash costs have not been disclosed by Falconbridge, but in 2000, the mine had a reported cash cost of US$1.16 per lb. nickel.
Ultramafic
The general geology of the South trend and Raglan horizons display similarities in that both areas host nickel-copper-PGM mineralization associated with peridotitic ultramafic rock types. Although the two areas exhibit similar sulphide minerals, with similar textures, the nickel-copper ratios differ. The Raglan horizon displays a 3-to-1 ratio, whereas the South trend generally displays a ratio of 1-to-1.
Drawn to the region by the shear number of multiple deposits that comprise the Raglan camp, Canadian Royalties zeroed in on the "underexplored potential" of the South trend, which was known only for two historic deposits: Delta and the low-grade Expo. Delta occurs on the western end of the South trend and is owned 51% by Falconbridge and 49% by Melkior Resources (mkr-v). Delta hosts a resource of 817,600 tonnes grading 3.05% nickel and 1.26% copper, plus 0.22 gram gold, 1 gram platinum and 1.65 grams palladium.
"Our thinking was, Why couldn't the South trend be as prospective as Raglan North?" explained Mullan. "What little work that had been done there had already found one deposit, and although it was low grade, Expo was the biggest single deposit in Ungava, at 17 million tonnes." Expo was drilled-off at wide-spaced centres by Amax Exploration in the late 1960s, and estimated to contain a resource of 17.3 million tonnes grading 0.46% nickel and 0.51% copper, including a higher-grade 3.8 million tonnes grading 0.75% nickel and 0.85% copper. Amax evaluated the viability of an open-pit mining operation before returning the property to the original owners. The property remained essentially dormant until 1997 when Ungava Minerals optioned it to High North Resources, a company then led by Harvey Keats. High North put six infill holes into the Expo deposit, looking for massive sulphides in the trough of the peridotite intrusion. High North later walked away from the project, citing poor market conditions, but not before Ungava Minerals tried to terminate the option agreement.
The South trend has got a bad rap because people have misunderstood the Expo deposit, said Mullan. Going back through the historic drill sections of Amax and the newer holes by High North, Canadian Royalties noted the narrow hits of massive sulphides, which it considered significant, and began re-evaluating the deposit for its previously unrecognized platinum-palladium potential. The company demonstrated, by re-assaying the preserved sample pulps from High North's drilling, along with split core samples from Amax's historic drilling, that significant PGM mineralization is scattered throughout the deposit.
"The fact that there is an additional sweetener called platinum-palladium, that's a pretty big bonus that they didn't have in the 1960s and 1970s," said Mullan. "It's a huge, twenty-five-to-forty-per-cent credit ratio, depending on commodity prices. That's why we are going back to some of these known historic occurrences again to look at the precious metals component."
Historic hole 67-8, near the centre of the Expo deposit, assayed 2.53 grams PGMs, 0.79% nickel and 0.74% copper over a true thickness of 56.4 metres, including a higher-grade section of 3.84 grams PGMs, 1.18% nickel and 1.06% copper across 24.4 metres.
Preliminary drilling
The company has re-assayed 17 historic holes in the heart of the deposit and confirmed that PGM mineralization occurs throughout the entire mineral resource area. Another 100 holes on site remain to be sampled, but while a lot of the old core is preserved, some important intercepts and parts of holes have been removed. "We can re-sample what is there and get an idea of what the grades are, but to really confirm the grade, we need that whole interval of core," said Keast. In addition, a significant portion of the past analytical work for nickel and copper was completed at an on-site laboratory.
The historic core is deemed not usable for a 43-101 resource calculation. With this in mind, Canadian Royalties has completed an initial preliminary program of 25 holes at the Expo-Ungava site this summer, including infill holes within the confines of the original resource area and exploration holes along the northern limit of the deposit.
The first hole, drilled safely between two areas of known massive sulphides, intersected the highest grade and thickest massive sulphides ever drilled at Expo. Hole 03-1 averaged 2.82% nickel, 2.82% copper, 0.14% cobalt, 1.05 grams gold, 0.8 gram platinum and 2.28 grams palladium over 17.3 metres. When combined with additional mineralization in the hole, the mineralized zone ran 1.38% nickel, 1.45% copper, 0.07% cobalt, 0.41 gram gold, 0.45 gram platinum and 1.62 grams palladium across 50.6 metres.
"That first hole was a really important lesson for us," said Keast. "It showed us that over a distance of a hundred feet, you can go from sixty feet down to six feet of massive sulphides. You can't go at this thing with two-hundred-foot spacing, like in the past."
Results from the first seven holes included high PGM values of 10 grams or more in all but one hole, with the highest individual palladium value running 48.9 grams over an interval of 1.5 metres. Hole 03-7 cut extensive PGM mineralization in primarily disseminated sulphides assaying 0.54% nickel, 0.91% copper and 0.13 gram gold, plus 0.24 gram platinum and 2.64 grams palladium over 58 metres.
Third season
Into its third field season on the South trend, Canadian Royalties is now looking at many of the historic occurrences from a different vantage point, with the help of new technology. A recently completed airborne survey is highlighting certain discrete features based on the company's own experience and success.
"With the new airborne survey, we're looking at the mineralized peridotite horizons in particular, and the intensity of the anomalies," said Keast. "Promising areas are followed up with prospecting. It's the grassroots prospecting that has really delivered the goods consistently from day one. Whether it's mapping on surface or drilling, we're looking at the rock and the styles of mineralization to get us in closer and closer to where massive sulphides are. Mesamax was not a highly ranked target. It was an area where they had a couple of holes, with some spotty copper and nickel."
The airborne work has generated a huge response over Cominga, 3 km west of Expo. "The signatures we got off of the airborne survey are comparable to Mesamax and Expo," Keast continued. "Cominga is one of these areas where we have pulled out a really interesting target that we're going to drill when we start moving the drills back toward camp with deteriorating weather.
Said Mullan: "They had good historic values at Cominga in the 1960s and '70s. The values were particularly high in copper, so there is some real PGM potential."
Exploration work to date has established a channel or trough-like geometry to some of the ultramafic bodies on the South trend. The ultramafic bodies are generally 100 to 200 metres wide on surface and extend laterally for several kilometres. Those that have been drilled exhibit a trough depth of less than 200 metres, without any downdip component. Massive and disseminated sulphides occur at the bases of these ultramafics. In the search for high-grade massive sulphides, the identification of disseminated and net-textured sulphide mineralization is a priority, as it indicates proximity to a possible massive sulphide component.
During the summer of 2002, Canadian Royalties completed 116 diamond drill holes at 10 target locations spanning more than 50 km along the favourable ultramafic hosts. Most of the 2002 drilling was concentrated in the vicinity of the Mesamax and TK sulphide zones, but some of the reconnaissance drilling intersected disseminated, net-textured and even massive sulphide mineralization up to 20 km west of the Expo deposit. Drilling on the most westerly target, Mequillon North, consisted of two setups spaced 200 metres apart along an extensive peridotite body, which is interpreted to extend for at least 3.5 km. A fan of three holes was drilled at each spot. At the most westerly setup, assay results from hole 02-1 included a 22.3-metre section containing 1.05% nickel, 0.93% copper and 0.04% cobalt, plus 0.11 gram gold, 1.01 grams platinum and 3.33 grams palladium. At the second setup, hole 02-3 encountered 26.7 metres of 1% nickel, 1.08% copper and 0.04% cobalt, as well as 0.13 gram gold, 0.72 gram platinum and 2.18 grams palladium.
The geological setting, together with the style and extent of the mineralization, indicates potential for high-grade massive sulphides. Canadian Royalties targeted Mequillon North for follow-up drilling in 2003.
The first round of holes on TK at the end of the 2001 field season resulted in a massive sulphide discovery of 5.4 metres grading 2.7% nickel, 0.78% copper and 2.67 grams PGM. Based on further drilling in 2002, Strathcona incorporated the results of 27 holes in the eastern portion of TK to come up with an indicated resource of 90,000 tonnes grading 1.6% nickel, 1.2% copper and 0.1%, 0.1 gram gold, 0.4 gram platinum and 2 grams palladium. A further 7,000 tonnes of similar grade material are inferred. Situated 3.2 km west of Mesamax, the smaller TK deposit would potentially be mined by underground methods.
At the end of last season, three holes were drilled from one setup on Tootoo, a pyroxenite body interpreted to be at least 5 km long on the western end of the Expo-Ungava property. Historical drilling in the Tootoo area had encountered "interesting" mineralization of around 1%. "To us, this indicated the right environment for net-textured and massive sulphide mineralization," said Keast. Canadian Royalties' first hole hit disseminated, net-textured sulphides grading 0.3% nickel, 0.4% copper and 1.19 grams PGM over 44.1 metres. The second hole penetrated the keel of the pyroxenite and hit 10.5 metres of massive sulphides grading 3.14% nickel, 2.56% copper, 0.17% cobalt, 0.05 gram gold, 0.8 gram platinum and 2.6 grams palladium. A wider section of the hole averages 1.28% nickel, 1.27% copper and 0.07% cobalt, plus 0.05 gram gold, 0.52 gram platinum and 2.13 grams palladium across 44.5 metres. The third hole was off to the side of the keel, cutting 11 metres of 0.3% nickel, 0.46% copper and 1.5 grams PGM.
"It's exciting because there is not one deposit," said Mullan. "It's Mesamax, TK, Expo, Mequillon, Tootoo and a gazillion geophysical features that we don't have our teeth into yet. It took Falconbridge fifty years to get to where they are, whereas this is just our third field season."
Canadian Royalties has $15 million in cash, with 39.5 million shares outstanding (49.2 million on a fully diluted basis). "The $15 million gives us three years of time to determine whether it's a stand-alone operation or something that could be mined jointly," said Mullan.
The company has farmed-out some of its satellite properties to Boulder Mining (YBR-V) and Montoro Resources (MNQ-V) in order to expedite exploration.
Fueled by Canadian Royalties' nickel-copper-PGM-rich massive sulphide discoveries, the hottest area in Quebec for exploration is the Ungava belt. Well over $12 million is being spent in the region this year by such companies as Falconbridge, Knight Resources (KNP-V), Novawest Resources (NVE-V) and Goldbrook Ventures (GBK-V).
Thanks for that TF.
I will have a look at LIT. Chart doesn't say much to me though - but I don't know much as my Dad won't let me stay on the computer long enough to figure it out.
Cheers
McB
Regarding LIT, here issome info on their JV in Ungava:
Nunavik (Ungava) area of Northern Quebec
The Company has as of August 25th, subsequently to the formal letters of intent the company has executed formal agreements with Canadian Royalties Inc. ( CZZ:.TSX-V), the recent discoverers of a substantial volume of high- grade Ni-Cu-PGE mineralization on their Trend assemblage in the Nunavik (Ungava) area of northern Quebec ( Nunavik). This important discovery occurs along the South Raglan Trend. Little Mountain will have the right to acquire a 50%-interest % in 2, 100 %- CZZ-owned prospects.
CZZ's highly prospective properties in the area are proximate to two of the new Ni-Cu-PGE discoveries occurring along this Ni-Cu-PGE horizon. Both properties, the Generals Prospect and the Lac Felix Prospect, host peridotite-pyroxenite-gabbro intrusive complexes generally similar to the ultramafics underlying the Mesamax Northwest, Expo, Tootoo Deposits, and several occurrences along the Raglan South Ttrend and being systematically explored by CZZ. Many of the Ni-Cu occurrences in the area host significant volumes of mineralized ultramafic rocks that have not been systematically explored for precious metals in earlier programs. Importantly, the Nunavik (Ungava) area of Northern Quebec is a well known nickel-copper-platinum-palladium producing area where Falconbridge invested over $ 700 million dollars into its profitable Raglan mining and milling operations.
Lac Felix Property
The Lac Felix property comprises contiguous claims ("MDU's")totaling approximately 3600 acres/ 1440 hectares more or less and is located approximately 30 km east-southeast of the Falconbridge Donaldson Deposit, ( ( 3,510,000 tonnes @ 3.75 % Ni, 0.83 % Cu, 6.6 g/t PGE ) and approximately 30 km north-northeast from of the high- grade Mesamax Northwest zone. Past exploration in and around the Lac Felix Prospect has identified a synclinal fold trending east-west, which shows its axis to plunge west- east. The rock sequence comprises sedimentary rocks with multiple areas of gossan, volcanics and mafic / ultramafic sills. Recent airborne surveys clearly identifies this folded structure
Generals Prospect
The Generals property comprises contiguous claims totaling approximately 1930 acres/600 hectares more or less and is located some 35 km south-southwest of the Raglan (Katinniq) Mine and approximately 25-km west of the Tootoo Ni-Cu-PGE discovery. Past exploration carried on the area has included Airborne V L F and Radiometric Surveys which have indicated definite several EM anomalies. Sampling programs carried out at a base metals occurrence showing ± 1 km east of Generals yielded up to 0.47 % Cu and 0.69 % Ni in boulders near a dacite ridge. Another showing, located at ± 2 km south-west of Generals, yielded up to 0.4% Ni and 0.38% Cu, near the contact between mafic / ultramafic rocks and sediments.
Under the terms of the Letters of Intent covering both prospects, Little Mountain will have the right to acquire a 50 % interest in each, subject to a 1% NSR to CZZ, by completing the following terms and conditions:
1. Reimbursement of staking costs and fees incurred to date
2. Issuance of 200,000 common shares of Little Mountain for each property upon acceptance of the LOI by the TSX and the respective boards of directors of both Little Mountain and Canadian Royalties.
3. Incurring exploration expenditures on each property as follows:
$2,000,000 in exploration and development expenditures as follows:
(i) $250,000 before December 31, 2003;
(ii) an additional $500,000 before December 31, 2004; and a further $1,250,000 before December 31, 2005, resulting in an aggregate $2,000,000 in exploration and development expenditures on or before December 31, 2005. Little Mountain shall pay to CZZ an annual advance royalty of $10,000 per year, commencing on January 1, 2006, and such advance royalties will be credited and set-off against the NSR, if any, that becomes payable.
Canadian Royalties will be the operator of the joint ventures and all work will be carried out under their direction and supervision. More details are expected to be announced shortly.
The Company has entered into a Letter of Intent ("LOI") with Golden Valley Mines Ltd.
( GZZ:TSX-V), to acquire a 50 % interest in the Shoot Out West Project located in Nunavik (Ungava), Québec. The property comprises 91 map-designated units (MDU'S) and is situated 9-km south of the Delta Deposit (Nickel, Copper, Platinum, Palladium) owned by Falconbridge Ltd. (and others), and 10 km-west of the Canadian Royalties Inc. ("Crocodile Tears") property. The property is situated in the ultramafics of the "Raglan South Trend" which host several Ni-Cu-PGE occurrences further to the east (Mesamax, TK-, Expo-Ungava, Mequillon, Tootoo).
At least two base metals (Ni-Cu) occurrences have been identified through earlier work programs completed within the property. Previous diamond drilling at the "Alpha Showing" on the Property returned values ranging up to 3.1% Ni, 2.3% Cu over 5.4-feet (1976). Sampling for Platinum Group Elements ("PGE's") at the Alpha Showing (1987) returned values from grab samples ranging from background to 0.5 g/t Pt, 2.75 g/t Pd.
Most of the property was covered by an airborne magnetic and EM survey (1996). Some of the target areas identified were followed up with geological and geophysical surveys and with ground-based grids. Grab samples selected from the Alpha Showing returned values of up to 3.2% Cu, 2.93 g/t Pd. Several targets are considered "drill ready".
Under the terms of the Letters of Intent covering the prospect, Little Mountain will have the right to acquire a 50 % interest, subject to a 3% NSR, by completing the following terms and conditions:
4. Cash payments in the aggregate of $ 100,000, payable as to:
1a. $ 20,000 on the execution of the LOI
2a. $ 20,000 six months thereafter
3a. $ 30,000 on the first anniversary of the LOI
4a. $ 30,000 on the second anniversary of the LOI
5a. Issuance of 500,000 common shares of Little Mountain within 5 business days upon acceptance of the LOI by the TSX and the respective boards of directors of both Little Mountain and Golden Valley.
6a. Incurring exploration expenditures on each property as follows:
$2,000,000 in exploration and development expenditures as follows:
$350,000 before December 31, 2003 an additional $550,000 before December 31, 2004; and a further $1,100,000 before December 31, 2005, resulting in an aggregate $2,000,000 in exploration and development expenditures on or before December 31, 2005. Little Mountain shall pay to GZZ an annual advance royalty of $10,000 per year, commencing on January 1, 2006, and such advance royalties will be credited and set-off against the NSR, if any, that becomes payable.
Golden Valley will be the operator of the joint ventures and all work will be carried out under their direction and supervision. More details are expected to be announced shortly.
I don't own it so I don't know that much. I heard there will be more drill results in before winter and that usually picks the stock up a bit.
I own some Little Mountain (LIT) and they have a joint venture with CZZ on one of the Raglan properties. They are also set to drill and if they hit there will probably result a larger movement in the stock since its tightly held and fewer shares outstanding. Its a drill bit play though so a bit of a gamble.
Gents,
So what is the story with this one? The company has Ni (and other bits) and everyone is saying that China is buying. Though the chart looks like it has lost it way.
What do people think - more then a little bounce coming?
Cheers
McB
The market didnt like the last news.
Canadian Royalties Inc.: Raglan South Trend Exploration Update
Friday August 8, 5:13 pm ET
VAL D'OR, QUEBEC--Canadian Royalties Inc. (TSX-Venture symbol: CZZ) reports that its 2003 field program on its extensive holdings (over 1000 square kilometers) in the Raglan South Trend area of Nunavik (Ungava), Quebec is well underway and that diamond drilling is ongoing with two diamond drills. Over 9500 meters of drilling had been completed this season as of July 31. Other exploration activities currently underway include prospecting, geological mapping, airborne geophysics, ground and downhole geophysical surveying, and metallurgical test work.
The 'state of the art' AEROTEM airborne geophysical survey being carried out for Canadian Royalties by Aeroquest Surveys Limited is nearing completion and initial interpretation of the data set is underway.
Initial diamond drilling in the early part of the 2003 field season focused on the area of the Mesamax Deposit where, in 2002, Canadian Royalties discovered near surface high-grade nickel-copper-cobalt and platinum group metals, in sulphide related mineralization. The details relating to Strathcona Mineral Services Ltd. evaluation of the Mesamax Deposit were highlighted in a press release dated April 15, 2003. Considerable infill drilling and exploratory drilling has been completed in the area around the Mesamax Deposit. No large scale extensions of the massive sulphide mineralization have been delineated, although some massive sulphide mineralization has been intersected beyond the drill holes completed in the 2001-2002 programs. Other areas of disseminated sulphide mineralization have been intersected farther removed from the Mesamax Deposit as well.
Canadian Royalties has also completed an initial, preliminary drill program consisting of 25 holes at the Expo Ungava site, a partially defined large tonnage low grade nickel copper cobalt platinum group metals (PGM) bearing sulphide related deposit. The Expo Ungava site was first drill tested in 1967, and was subsequently the subject of significant exploration programs in the period 1967-71, and a six diamond drill hole program in 1997. These programs were completed prior to Canadian Royalties optioning the property from Ungava Minerals Corp. (Press release January 19, 2001). The most recent resource calculation relating to the Expo Ungava Deposit site (R. Wares, 1997) predates NI 43-101 and was not to the standards of then current Policy NP-2A. An earlier resource calculation completed by AMAX Exploration Ltd. (MRNQ GM-26103) reported an overall resource of approximately 19 million tons averaging 0.47% nickel and 0.51 percent copper, including a higher grade resource of 4.244 million tons grading 0.75% nickel and 0.85% copper. This resource calculation predates, and does not conform to, NI 43-101. Other work by AMAX between 1967 and 1971 included open pit design, metallurgical testing of both the disseminated and massive sulphide mineralization, and platinum, palladium determinations on both types of mineralization. AMAX also completed exploration, including diamond drilling, at several other locations in the area including Kehoe, Cominga and Mesamax.
Diamond drilling at the Expo Ungava site in 2003 by Canadian Royalties includes infill drilling within the confines of the originally drilled area and diamond drilling along the northern limit of the deposit in an area not previously drill tested.
Of particular interest from this work is a hole, EX-03-01, drilled within the confines of the previously drilled area and which intersected 17.3 meters of massive to nearly massive pyrrhotite-pentlandite-chalcopyrite mineralization. No intersection of sulphide mineralization of this magnitude was ever reported from the historical diamond drilling completed at the Expo-Ungava site. The remaining holes drilled to date by Canadian Royalties intersected lesser amounts of massive sulphide along with intervals of disseminated sulphides or in some cases disseminated sulphides only.
A large number of samples from the early portion of the drill program have been delivered to the assay laboratory and are at various states of completion within the ALS Chemex analytical system. The Company expects to be in a position to start releasing assay results in about 10 days time.
Diamond drilling is being conducted out in the Mequillon and Tootoo areas now that fuel caches and camps have been moved to the western part of the property. It is currently anticipated that considerable diamond drilling will be carried out in this area over the next three weeks and that additional diamond drilling will be carried out in the Expo and Mesamax areas during 2003. Diamond drilling will be carried out at other targets as determined by exploration results.
As announced earlier today, three holes were drilled on the Colts Prospect with no significant results. The Canadian Royalties Colts Prospect is under option to Boulder Mining and is located on the North Trend east of the Falconbridge Donaldson Deposit, well to the north of the main properties of Canadian Royalties.
Bruce Durham, P.Geo. and President of Canadian Royalties Inc. is the designated Qualified Person responsible for the exploration program on the property and the person responsible for the preparation of this release.
Canadian Royalties Inc. also reports that the proposed amendments to the Stock Option Plan were approved by the shareholders at the last meeting of shareholders (June, 2003), and accordingly, the number of shares reserved for issuance under the Plan increased to 7,238,913 (which amounts to approximately 18% of the issued and outstanding shares), and the provision pertaining to the expiry of options after 90 days will be applicable provided only that the Corporation is classified as a Tier 2 issuer.
Canadian Royalties Inc. has discovered significant nickel-copper-platinum-palladium mineralization in the Raglan South Trend of Nunavik, Quebec. Canadian Royalties maintains a strong cash position and a portfolio of more than 200 property interests.
--------------------------------------------------------------------------------
Contact:
Canadian Royalties Inc.
Glenn J. Mullan
Chairman
Phone: (819) 824-1030
Email: mullan@canadianroyalties.com
or
Canadian Royalties Inc.
Bruce Durham
President
Phone: (705) 264-2144
Email: durham@canadianroyalties.com
The Canadian Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
***mega platinoidsmega platinoidsmega mega platinoidsplatinoidsmega platinoidsmegamega platinoids platinoidsmega platinoidsmega platinoidmega platinoidsmega platinoidssmega platinoidsmega platinoimega platinoidsmega platinoidsdsmega platinoidsmega platplatmega mega platinoidsinoidsplatplatmega platmega mega platmega plplatmega atmega platmega platmega platinoidsmemega platinoidsga platinoidsmega platinoidsmega platinoimega platinoidsmega platinoidsdsmega platinoidsmega platinmega platinoidsmega platinoidsoimega platinoidsdsmega platinoidsmega mega platinoidsplatinoidsmega platinoidsmegamega platinoids platinoidsmega platinoidsmega platinoidsmegamega platinoids platinoidsmega platinoidsmega plamega platinoidstinoidmega platinoidssmega platinoidsmega platinoidsmega platinoidsmega platinoidsmega platinoidsoidsoidsmega platinoidsega ega platinoidsplatinoidsega plega platinoidsatinoidsega platinoidsega platinoidsega platinoidsega ega platinoidsplatinoidsega platega platinoidsinoidsega platinoidsegaega platinoids platinoids
CANADIAN ROYALTIES INC.
TSX VENTURE SYMBOL: CZZ
JULY 16, 2003 - 17:56 ET
Canadian Royalties Inc. Announces $3,000,000 Private
Placement of Flow Through Shares with Dundee Securities
Corporation
VAL D'OR, QUEBEC--Canadian Royalties Inc. (TSX-V symbol: CZZ)
announces that Dundee Securities Corporation has agreed to act as
Agent to complete a flow-through private placement, on a best
efforts basis, of up to 1,090,909 flow-through common shares at a
price of $2.75 per share, resulting in gross proceeds of up to
$3,000,000.
The securities will be offered in British Columbia, Alberta,
Quebec and Ontario. There will be a minimum subscription of
$25,000 for Canadian "accredited investors", with the exception
of Quebec, where the minimum subscription will be $150,000. The
offering is subject to regulatory approval, and to the
Corporation being a "Qualifying Issuer" at closing.
Dundee Securities Corporation will be paid a commission of 61/2%
of the gross proceeds raised in the offering. In addition, Dundee
Securities Corporation will receive an agent's option which will
allow it to purchase common shares equal in number to 61/2% of
the common shares, exerciseable at a price of $2.35 per common
share at any time within 24 months following closing of the
offering. All reasonable costs and expenses pursuant to the
offering will be borne by Canadian Royalties. Closing is
anticipated to occur on or before July 30, 2003, or such other
date as agreed upon by the Agent and the Corporation. The
proceeds from the flow-through common shares will be used for
expenses that qualify as Canadian Exploration Expenses, primarily
on Canadian Royalties' Nunavik, Quebec (Raglan area)
nickel-copper-platinum-palladium properties, and certain other
projects as determined by the Corporation.
After an initial delay due to dense snow coverage, exploration
activities on the Corporation's Nunavik, Quebec (Raglan South
Trend area) properties are operating at maximum capacity, and
have recently been focused on the the Mesamax area, the TK area
and the original Expo-Ungava area. Diamond drilling is
progressing with two diamond drills and a 5000 line kilometer
'state of the art' airborne magnetic and electromagnetic survey
is nearly complete. Preliminary results from the airborne surveys
are expected shortly. Assay results will be announced
periodically as they are received over the summer and fall, and
updates will be announced as the exploration program progresses.
Canadian Royalties Inc. has discovered significant
nickel-copper-platinum-palladium mineralization in the Raglan
South Trend of Nunavik, Québec.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY U.S. NEWS WIRE
SERVICE OR DISSEMINATION IN THE UNITED STATES.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian Royalties Inc.
R. Bruce Durham
President
(705) 264-2144
durham@canadianroyalties.com
or
Canadian Royalties Inc.
Jennifer L. Boyle
Vice President, Corporate and Legal Affairs
(819) 824-1030
boyle@canadianroyalties.com
People who don't have land in Ungava are not getting invited to parties in Toronto. The Olson Twins are starting a new franchise selling their hair bands and pop-tops in Piquoquituluck.
And to think, the first drill holes were in 1968. I wonder when the street cards are going in?
EC<:-}
Ungava is turning into quite the area play.
Masuparia Gold http://www.mpg-v.com/s/Default.asp
Goldrea Resources http://www.goldrea.com
Golden Valley Mines http://www.goldenvalleymines.com/
News out after the close:
Canadian Royalties Inc.: Announcement
Monday June 23, 4:04 pm ET
VAL-D'OR, QUEBEC--Canadian Royalties (TSX-V symbol: CZZ - News) announces that the Nunavik (Ungava) exploration camp is open and 20 people are on site setting up drilling equipment and carrying out tasks necessary for the commencement of ground geophysical surveys, prospecting, geological mapping and diamond drilling.
The Corporation further announces that it granted, subject to receipt of regulatory approval, an additional 25,000 incentive stock options to Mr. Jens Zinke, a private investor consultant who holds a doctorate in geophysics, has been an investment analyst and, most recently, was Director, Investor Relations for Norsat International, Inc. in Burnaby, BC. Mr. Zinke lives in Germany and travels extensively in Europe and North America with his work. He is an independent contractor with Canadian Royalties and there is no relationship of employment, partnership or joint venture with Canadian Royalties, other than as consultant responsible for outside investor relations activities. Mr. Zinke will provide investor relations services generally, and in particular, will be instrumental in increasing the Corporation's profile in European, American and Canadian markets. His agreement with the Corporation may be terminated by either party on 30 days notice. The 25,000 options to Mr. Zinke have an exercise price of $2.31 per share, expire on the earlier of the 90th day following expiry or termination of Mr. Zinke's services and June 23, 2007, and vest in four equal portions over the Corporation's next four financial quarters. Mr. Zinke also holds 65,000 stock options that were previously announced on April 8, 2003 as being held by Vancadia Capital Corporation, but Mr. Zinke has elected to hold these options personally, and not through Vancadia. The options are in no way related to achievement of certain market-oriented factors, such as trading volume or price parameters. In further consideration of the services provided by Mr. Zinke, Canadian Royalties will pay additional per diem compensation for services performed over a 15 month period in relation to specific pre-approved programs and projects, in addition to reimbursement for all direct costs incurred in providing the services.
The Corporation has also approved the granting of 25,000 incentive stock options to a director of the Corporation, having an exercise price of $2.31 per share, expiring on June 17, 2013.
The Corporation recently announced that it had entered into two letters of intent with Little Mountain Resources Inc. with respect to option and joint ventures on two of its Ungava properties (Lac Felix and Generals). Subject to entering into formal agreements with Little Mountain, and to Little Mountain incurring $500,000 in exploration expenditures on the properties during the 2003 summer exploration season, a finders fee of 20,000 common shares will be payable to a registered representative of a Member. An additional 5,000 common shares will be reserved for issuance in the event that Little Mountain completes its required exploration expenditures of $1,000,000 in the second exploration season (summer 2004). The issuance of the shares is further subject to the availability of an exemption from the requirement to deliver a prospectus and to the receipt of all applicable regulatory approvals.
The Corporation further announces that it has been granted Tier-1 status on the TSX Venture Exchange.
Canadian Royalties Inc. has discovered significant nickel-copper-platinum-palladium mineralization in the Raglan Mining Camp, and is currently preparing for the upcoming field season on its Ungava Properties.
--------------------------------------------------------------------------------
Contact:
Canadian Royalties Inc.
Glenn J. Mullan
Chairman
Phone: (819) 824-1030
Email: mullan@canadianroyalties.com
www.canadianroyalties.com
Some news regarding CZZ activities:
Press Release Source: Canadian Royalties Inc.
Canadian Royalties Inc.: Exploration Begins on the Raglan South Trend Project
Thursday June 12, 1:24 pm ET
VAL D'OR, QUEBEC--Canadian Royalties Inc. (TSX-Venture symbol : CZZ) announces that it has now mobilized field staff and drilling personnel to its camp in the Raglan South Trend, Nunavik (Ungava), Quebec, commencing its aggressive exploration program on the South Trend Project. This year's exploration and drilling programs were materially increased as a result of Strathcona Mineral Services' recommended work program of $6,000,000. In Strathcona Minerals' recent Technical Report that includes its calculation of current mineral resources at the Mesamax and TK deposits, Strathcona Minerals stated that "It is rare to find an exploration project with such an excellent exploration potential, and we look forward to hearing of further progress and the continuation of the quality exploration work conducted by Canadian Royalties to date in this remote area."
A detailed, 'state of the art' time domain electromagnetic (EM) and magnetic airborne survey is currently being carried out by Aeroquest Surveys under contract for Canadian Royalties. This survey and the interpretation of the resultant data sets are specifically designed to identify and outline new nickel-copper-platinum-palladium (Ni-Cu-PGE) sulphide targets on Canadian Royalties' extensive land position in the Raglan South Trend.
The helicopter system has been operating in the area since late May and initial data interpretation and product delivery is expected prior to the end of June. The expanded 2003 program will focus on:
1. further defining the Mesamax Deposit by completing in-fill
drilling, and ultimately defining the limits of the mineralized
zone to the north, east and possibly to the west-southwest;
2. re-assaying historic core from the Expo Deposit, infill drilling to
provide confirmation of Ni-Cu-PGE grades in certain areas of the
mineralized body, and exploratory drilling designed to expand the
dimensions of the known Ni-Cu-PGE mineralized body based on re-
interpretation of the historic data;
3. further defining the TK Deposit to the west, east and at depth, and
further exploration of airborne EM and ground EM conductors in
proximity to the deposit;
4. follow-up drilling at the Tootoo high-grade Ni-Cu-PGE discovery,
now the fourth and westernmost massive sulphide occurrence on the
Expo-Ungava Property late in the 2002 exploration program (TT-02-
02; 2.00% Ni, 1.91% Cu, 0.11% Co, 0.6 g/t Pt and 2.62 g/t Pd (3.12
g/t combined Pt + Pd) over a core length of 22.03 meters (72.3
feet);
5. follow up drilling on a number of other promising Ni-Cu-PGE mineral
occurrences, such as Mequillon Lake, Kehoe Lake, Snow Owl, Cominga,
Vaillant Lake and Mesamax Main; and
6. geological mapping, ground geophysics, prospecting and follow-up
drilling on targets identified during the 2002 field campaign and
the 2003 airborne survey currently in progress.
Canadian Royalties further announces that at its meeting of shareholders, held on June 11, 2003, Glenn J. Mullan, Bruce Durham, Jennifer Boyle, Tom Obradovich and Glen Schlyter were elected to serve as directors of the Corporation, and that Glenn J. Mullan was appointed Chairman of the Board, with Bruce Durham appointed President. Additionally, the shareholders approved the Shareholder Rights Plan, which was adopted by the Directors to protect the Corporation's shareholders from unfair, abusive or coercive take-over strategies, including the acquisition of control of the Corporation through a take-over bid that does not treat all shareholders equally or fairly. Canadian Royalties is not aware of any pending or threatened take-over bid for the Company. See press release dated May 9, 2003 for details on the Shareholders Rights Plan.
Raglan Joint Venture Formed
6/6/03
UC Resources Ltd. has entered into an agreement with Thelon Ventures Ltd. to acquire up to a 60% interest in two properties consisting of 588 mineral claims, totalling approximately 59,668 acres, located in the Ungava region of northern Quebec.
One of the properties covers 22,000 acres and is contiguous to claims controlled by Knight Resource/Anglo-American Exploration (Canada) Ltd. This claim block is considered to be prospective for platinum group metals (PGMs).
The second group of claims covers approximately 38,000 acres and adjoins Falconbridge's Raglan nickel mine property. This property covers
geology permissive to host nickel-copper-platinum-palladium deposits similar to Falconbridge's Raglan mine or the recent nearby discovery announced by Canadian Royalties Inc. (TSX-V: CZZ).
Falconbridge's world-class Raglan mine and the recent discovery by Canadian Royalties indicate a new nickel-copper mining camp with huge potential for associated platinum group metals. In December 1997, Falconbridge opened the Raglan Mine at a capital cost of CDN$550 million. Production is 130,000 TPY concentrate, with an estimated production cost of US$1.50/lb nickel, one of the world's lowest cost producers. The presence of significant platinum group metal values is a large contributing factor. On the Falconbridge property, nine significant nickel-copper deposits have been discovered over a length of 60 kilometers. The placement of the orebodies along the Raglan trend has been compared to a string of pearls.
Canadian Royalties has discovered what appears to be a number of potential orebodies in a structure parallel to and south of the Falconbridge deposits. The platinum group metal (PGM) assays which have been reported, clearly show that the PGM content of the Raglan camp is very anomalous in world nickel camps.
The terms of the Agreement provide for UC Resources to earn up to an undivided 50% interest in the Thelon Properties in consideration of the following:
(a) the issuance of :
(i) 100,000 Shares of UC Resources to Thelon within five business days following acceptance by the Exchange of the Agreement;
(ii) a further 100,000 Shares on or before May 30, 2004;
(iii) a further 200,000 Shares on or before May 30, 2005;
(iv) a further 200,000 Shares on or before May 30, 2006;
(b) incur a minimum aggregate $1,500,000 of Expenditures on the Property (or any part thereof) as follows:
(i) $250,000 of Expenditures on or before May 30, 2004 (firm commitment);
(ii) an additional $250,000 of Expenditures on or before May 30, 2005;
(iii) an additional $500,000 of Expenditures on or before May 30, 2006;
(iv) an additional $500,000 of Expenditures on or before May 30, 2007.
UC Resources can earn an additional 10% interest with an additional work expenditure of $2,000,000 on the Property on or before May 25, 2009.
The property is subject to a 1% net smelter royalty. Thelon has the right to purchase one half of this royalty for $1 million.
The property transaction is subject to acceptance by the TSX Venture Exchange.
THELON VENTURES LTD.
per: (sgd.) 'Jason Walsh', Director
UC RESOURCES LTD.
per:
(sgd.) 'Eugene Larabie', Director
CONTACT: TEL: 604 682-1643 Thelon Ventures Ltd.
FAX: 604 682-1666
TEL: 604 681-6466 UC Resources Ltd.
FAX: 604 681-2161
Little Mountain Enters into 2 Letters of Intent with Canadian Royalties
5/21/03
The Company has entered into 2 Letters of Intent ('LOI') with Canadian Royalties Inc., the recent discoverers of a substantial volume of high- grade Ni-Cu-PGE mineralization on their Trend assemblage in the Nunavik (Ungava) area of northern Quebec ( Nunavik). This important discovery occurs along the South Raglan Trend. Little Mountain will have the right to acquire a 50%-interest % in 2, 100%- CZZ-owned prospects.
CZZ's highly prospective properties in the area are proximate to two of the new Ni-Cu-PGE discoveries occurring, along this Ni-Cu-PGE horizon. Both properties, the Generals Prospect and the Lac Felix Prospect, host peridotite-pyroxenite-gabbro intrusive complexes generally similar to the ultramafics underlying the Mesamax Northwest, Expo, Tootoo Deposits, and several occurrences along the Raglan South Ttrend and being systematically explored by CZZ. Many of the Ni-Cu occurrences in the area host significant volumes of mineralized ultramafic rocks that have not been systematically explored for precious metals in earlier programs. Importantly, the Nunavik (Ungava) area of Northern Quebec is a well known nickel-copper-platinum-palladium producing area where Falconbridge invested over $700 million dollars into its profitable Raglan mining and milling operations.
Lac Felix Property
The Lac Felix property comprises contiguous claims ('MDU's')totaling approximately 3600 acres/ 1440 hectares more or less and is located approximately 30 km east-southeast of the Falconbridge Donaldson Deposit, ( 3,510,000 tonnes @ 3.75% Ni, 0.83% Cu, 6.6 g/t PGE ) and approximately 30 km north-northeast from of the high- grade Mesamax Northwest zone. Past exploration in and around the Lac Felix Prospect has identified a synclinal fold trending east-west, which shows its axis to plunge west- east. The rock sequence comprises sedimentary rocks with multiple areas of gossan, volcanics and mafic / ultramafic sills. Recent airborne surveys clearly identifies this folded structure.
Generals Prospect
The Generals property comprises contiguous claims totaling approximately 19300 acres/600 hectares more or less and is located some 35 km south-southwest of the Raglan (Katinniq) Mine and approximately 25-km west of the Tootoo Ni-Cu-PGE discovery. Past exploration carried on the area has included Airborne V L F and Radiometric Surveys, which have indicated definite several EM anomalies. Sampling programs carried out at a base metals occurrence showing +/- 1 km east of Generals yielded up to 0.47% Cu and 0.69% Ni in boulders near a dacite ridge. Another showing, located at +/- 2 km south-west of Generals, yielded up to 0.4% Ni and 0.38% Cu, near the contact between mafic / ultramafic rocks and sediments.
Under the terms of the Letters of Intent covering both prospects, Little Mountain will have the right to acquire a 50% interest in each, subject to a 1% NSR to CZZ, by completing the following terms and conditions:
1. Reimbursement of staking costs and fees incurred to date
2. Issuance of 200,000 common shares of Little Mountain for each property upon acceptance of the LOI by the TSX and the respective boards of directors of both Little Mountain and Canadian Royalties.
3. Incurring exploration expenditures on each property as follows: $2,000,000 in exploration and development expenditures as follows:
(i) $250,000 before December 31, 2003;
(ii) an additional $500,000 before December 31, 2004; and
a further $1,250,000 before December 31, 2005, resulting in an aggregate $2,000,000 in exploration and development expenditures on or before
December 31, 2005. Little Mountain shall pay to CZZ an annual advance royalty of $10,000 per year, commencing on January 1, 2006, and such advance royalties will be credited and set-off against the NSR, if any, that becomes payable.
Canadian Royalties will be the operator of the joint ventures and all work will be carried out under their direction and supervision. More details are expected to be announced shortly.
Little Mountain Resources Ltd. is a junior exploration company focused on the Canadian Resource Industry.
(Signed) Robert A. Sim
Robert A. Sim- Director
CONTACT: TEL: (604) 662-3004 Little Mountain Resources Ltd.
FAX: (604) 662-3063
GV is a vehicle Mullanski drives to pop ground into it outside Val D'Or/Kirkland Lake. It has some ground in the nickel belt Ungava. They are doing some drilling in the KL area. I tried to sell them a gold mine but they said they had enough, thanks.
EC<:-}
Do you know anything about Golden Valley (gzz) or Osisko (osk)? Apparently they are doing some exploration (joint venture) in the Ungava.
I think you are right, patience is the key here. They have been building land there for 5 years. And the play has been building for about one year. It will continue barring a major market or metal price setback. One of the good strategies is that they have not overstated their resource, so they are not burning out. A slow build is the longest and highest build.
CZZ give it time it will be a huge score
News on deal with Boulder:
TSX Venture Exchange has accepted for filing documentation of a letter of intent between the Company and Canadian Royalties Inc. (TSX Venture Exchange: CZZ) (the 'Vendor'). The Company has the right to earn a 50% interest in each of two separate properties; approximately 410 hectares known as the Colts Property, and approximately 1,750 hectares known as the Breakaway Property, both located in Northern Quebec (the 'Properties').
If the Company exercises its option to acquire the Properties, the Vendor shall be granted a1% net smelter royalty ('NSR'), and shall be paid an annual advance royalty of $10,000 per year, commencing on January 1, 2006, and such advance royalties will be credited and set-off against the NSR, if any, that becomes payable.
As consideration, and in order to earn the 50% interest in each property, the Company shall reimburse the staking costs, issue 220,000 common shares, and incur cumulative exploration expenditures of $1,250,000 before December 31, 2005, for each of the two properties.
Canadian Royalties: Initial Mineral Resources Announced for Mesamax and TK Deposits
Tuesday April 15, 9:42 am ET
VAL D'OR, QUEBEC--
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At 10:00 a.m. (EST) today a live audio webcast of the conference call related to the information in this release will be available through www.vcall.com. Please connect to www.vcall.com at least 15 minutes prior to the conference call to ensure adequate time for any software downloads required. A replay of the webcast will be available for 90 days at www.vcall.com. A replay of the conference call will also be available by telephone from approximately 12:00 p.m. (EST) on April 15, 2003 through April 22, 2003. To access the replay, dial 1-800-408-3053 or 416-695-5800 and enter reservation number 1407176.
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Canadian Royalties Inc. (TSX-V: CZZ - News) reports that an independent consultant's resource estimate for the Company's Mesamax Deposit is 1,450,000 tonnes in the indicated category, and a further 130,000 tonnes in the inferred category. An additional 150,000 tonnes of near surface, somewhat oxidized material was identified, but not included in the current resource estimate pending further studies. A limited resource was also calculated for the eastern portion of the TK Zone.
Strathcona Mineral Services Limited ("Strathcona") delivered the results of the resource evaluation study to Canadian Royalties yesterday. The study incorporates the information from 41 diamond drill holes (3,473 meters) at Mesamax and 27 drill holes (2,217 meters) from the eastern portion of the drilling completed to date at the TK Zone which is located some 3.2 kilometers to the west of Mesamax. The study did not address the historical resource estimates at the Expo-Ungava deposit (see figure 1). Both Mesamax and TK remain open to expansion in several directions. At TK, some mineralized intervals were not included in the evaluation due to the current lack of sufficient data or complex geology. In the Mesamax area, additional diamond drilling is required to expand and ultimately define the limits of the mineralized zone to the north, east and possibly to the west-southwest.
http://biz.yahoo.com/ccn/030415/ed171495ef7c9965ff7967e16e1c...
CZZ
NVE
Brightstar
There are other Platinum, Pd plays.
EC<:-}
'Don't forget palladium,' says Johnson Matthey
By: Nicole Mordant
Posted: 2003/03/10 Mon 17:58 ZE2 / © Mineweb 1997-2003
TORONTO - World-leading autocatalyst manufacturer, Johnson Matthey, is hard at work extolling the virtues of palladium to car makers in an attempt to alleviate the current demand stress on platinum. The price of platinum hurtled to 23 year highs in February, partly on demand pressure, fuelling concerns in the market that it could mimic palladium's disastrous rise-and-fall scenario that saw rampant demand wither when car makers switched to cheaper platinum.
"What we are saying to car companies is ‘don't forget palladium'," Gordon Bassett, the general manager for Johnson Matthey's precious metals marketing unit in the United States told Mineweb on the fringes of the PDAC conference in Toronto.
"We are working with car companies to encourage them to have a good mix of platinum and palladium catalysts. We are saying ‘utilise more palladium so as not to put so much strain on platinum'."
The message was bearing fruit with "some slight movement" back to palladium already evident, Bassett said.
Car manufacturers use palladium and platinum in the manufacture of autocatalysts, components that eliminate harmful gasses from exhaust fumes. Autocatalysts are required by law in vehicles on the roads of North America, Japan, Europe and parts of Asia.
Autocatalyst manufacture is by far the biggest demand sector for palladium, annually using more of the metal than all other applications put together. That said, demand from this sector plummeted by 38% last year to 3.16 million oz, the third year in a row that demand has contracted. Following palladium's surge to record levels of more than $1,000 in the late 1990s, autocatalyst manufacturers switched to less expensive platinum, sparking a collapse in the price of palladium to around $220.
Bassett said the "use palladium" message was easier to press home in the United States, where gasoline vehicles predominate, than in Europe, where fuel-efficient diesel vehicles are continuing to make deep inroads into vehicle sales. Diesels, which can only use platinum-based catalysts, as opposed to gasoline engines that can also use palladium catalysts, are expected to have made up 40% of passenger vehicle sales in Europe in 2002.
Bassett said the reasons for palladium's rampant volatility in the late 1990s were a thing of the past. Car manufacturers were no longer dependent on notoriously unreliable Russian supplies and more reliable supplies were forthcoming from South Africa as the palladium-richer UG2 reef began to be mined with greater vigour. The availability of more above-ground stocks, that is, palladium recycled from spent autocatalysts, could also provide car companies with the comfort of uninterrupted supply.
http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=18638467
I think it was their strategy from the start. It ain't bad really. That is what the Raglan is, 20 different deposits of medium size.
They sold the money on the idea that many targets that were not mag highs, as Mesamax was not, were missed. They aim to prove that they have many targets that could be successful, by drilling them. It will maximize their chance of finding good ones that will drill off.
If they drill 40 cursorily and concentrate on 20, let's say, then they could spend about 10 million. By that time, with any sort of success, they should be able to raise more money.
One might think that they could miss a difficult but large single target. It's a matter of type of targets and luck perhaps.
EC<:-}
EC<:-}
Any idea as to why they continue to drill different targets rather than
concentrating on one area?
tf
This is getting really friggin' interesting.
Number three is onimous.. doesn't bad luck come in threes?
Or is it good luck?
There is something happening here... I don't know if these deposits will make it. I don't know. But they are coming up agin an agin ain't they?
I don't know whether to be excited or not.
EC<:-}
News. More drill results.
February 27, 10:08 am ET
Canadian Royalties Inc. - New Discovery - High Nickel Copper Cobalt Platinum Palladium Values from Tootoo Area Drill Hole 25 km West of Mesamax
"received high nickel-copper-cobalt-platinum- palladium (Ni-Cu-Co-Pt-Pd) assay values from a new massive sulphide discovery located 25 kilometres to the west of the Mesamax Discovery in Nunavik (Ungava), Northern Québec. The main mineralized interval in diamond drill hole TT-02-02 is comprised of disseminated to massive pyrrhotite, pentlandite and chalcopyrite mineralization in a pyroxenitic host. The higher grade portion of the mineralized interval assayed 2.00% Ni, 1.91% Cu, 0.11% Co, 0.6 g/t Pd and 2.62 g/t Pd (3.12 g/t combined Pt + Pd) over a core length of 22.03 meters (72.3 feet). The new mineralized zone, the "Tootoo Zone", is the third and westernmost new massive sulphide occurrence discovered by Canadian Royalties in the South Ungava Trend since work in the region by Canadian Royalties began in 2001. It is located in a basal depression or embayment of the host, a geological setting very similar to the setting at the Mesamax Ni-Cu-Co-Pt-Pd Zone..."
See the full text on http://biz.yahoo.com/cnw/030227/a_royalties_newdiscov_1.html
CZZ has a map on its website:
http://www.canadianroyalties.com/maps/expoznl.htm
=======================
Nice move today. Wonder what's cooking? Anyone hear anything?
tf
Canadian Royalties mentioned in PDAC press release:
http://www.pdac.ca/pdac/misc/030219.html
This is definitely a Durango thing (Mustang). Either there is a great deal of FA there, or WE ARE RICH!!!!!.. which the Timmins crowd only understands if it is very shiny and they need two people to carry the core box.
A stock moving nicely down on a massive sulphide discovery is a rare event indeed. I doubt if even the genii of the far north could engineer that one..
Still, eagerness and anticipation of the Next La-Brea-X mud flow beats pitty pat in the breast of every sucker stock chaser..
hmmmm...
CZZ is a different kind of horse. Glen finally gets his money to drill... which is rare with a mine running near by.. I can just groan to hear the zounds of "why didn't falco buy it?" Why indeed.. I bite my tongue on ""why don't you drop dead you idiot", every time I hear that or " I will run that idea past my buddy who works for Noranda.. they always know whether things like that will work.."
EC<:-}
I like the potential on this one too. The fact that there is already a producing mine in the neighborhood only makes it better.
Havent taken a position yet though.
tf
I think the recent results west of Mesamax underscore a wide area potential. There may be a platinum mine in this mix somewhere and the ni-cu is merely a sweetner. This can be handled by a smallish operation similar to Lac Des Isles. If Sheridan can get that in operation, with the nickel and dime small bucks he used, then CZZ just might work in the same way.
EC<:-}
Article on minesite.com
http://www.minesite.com/archives/news_archive/2003/feb-2003/royalties170203.htm
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Cosan Limited, through its subsidiaries, engages in the manufacture and sale of sugar and ethanol primarily in Brazil. The company grows and processes sugarcane to produce standard sugars, including raw sugar, crystal sugar, and organic sugar; and refined sugars, such as granulated refined white sugar, amorphous refined sugar, refined sucrose liquid sugar, and refined inverted liquid sugar. It also produces and markets hydrous, anhydrous, and industrial ethanol. The company sells refined and liquid sugar to retail supermarkets, foodservice distributors, and food manufacturers in Brazil. It also sells raw sugar and ethanol in Europe, North America, Latin America, Africa, the Middle East, and Asia. In addition, the company provides port services to third parties; sells electricity and diesel fuel to agricultural services providers; and sells consumer products under the ?Da Barra? brand. It has a strategic relationships with the Kuok Group; Sucres et Denrees; Petrobras Distribuidora S.A.; Shell Brasil, Ltda.; Tate & Lyle International; and Coimex Trading, Ltd. The company was founded in 1936 and is based in Sao Paulo, Brazil.
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