Archive for category Economics

Closing of Airborne Activities Acquisition (CGG)

Posted by on Thursday, 19 September, 2013

CGG announces that the main administrative authorizations have now been received allowing CGG to close its acquisition of Fugro’s Airborne activities. Certain administrative actions are still to be completed, but these do not impact business continuity and are expected to be finalized shortly.

The Airborne acquisition concretizes the final stage in CGG’s successful acquisition and integration of Fugro Geoscience. As a result of this transaction, CGG has significantly enhanced its integrated geoscience offering and expanded into new markets such as marine gravity, electromagnetics, data management services and geological expertise as well as airborne geophysics.

Jean-Georges Malcor, CEO, CGG, said: “The Airborne group is a valuable addition to CGG and I would like to warmly welcome our new colleagues into the company. Our geoscience footprint now includes the skies as well as the oceans and land. This strength in depth and in breadth gives us a unique set of resources to help our clients meet today’s complex challenges.”

Greenland and the Nickel Market

Posted by on Friday, 23 August, 2013

North American Nickel Talks Greenland and the Nickel Market

This week, Nickel Investing News (NIN) had the chance to speak with Neil Richardson, COO of VMS Ventures (TSXV:VMS) and North American Nickel (TSXV:NAN), a Canada-based mineral exploration and development company.

In the interview below, Richardson discusses recent developments at North American Nickel’s Greenland-based Maniitsoq project, including news from the company’s latest press release. He also touches on the company’s plans for its projects in Ontario and Manitoba and shares his thoughts on where nickel prices are headed in the short and long term.

Image courtesy of North American Nickel.

Maniitsoq 2013 field program

NIN: Can you start off by giving a quick rundown of the key things investors should know about North American Nickel?

Neil Richardson: North American Nickel is a junior exploration company focused on nickel and platinum-group elements (PGE) mineralization in North America, mainly in Sudbury, Canada, as well as the Thompson Nickel Belt area in Manitoba. We have completed some exploration work at those projects, but our main project, which is near the community of Maniitsoq in Greenland, is the focus of our current exploration work.

NIN: What is the relationship between North American Nickel and VMS Ventures?

NR: VMS owns a 27.5-percent interest in North American Nickel. North American Nickel was formed back a few years ago by spinning out the nickel assets that we had in VMS; the team that runs VMS is the same team that runs North American Nickel.

Along with our strategic partner, the Sentient Group, VMS holds a large percentage of the shares. Sentient has upped its share to 30 percent, so the two teams, VMS and Sentient, control over 57 percent of the corporation.

NIN: Earlier this month you acquired additional ground at Maniitsoq. How will that benefit the company?

NR: These exploration licenses were just granted recently by the Bureau of Mines and Petroleum, the BMP. We have the documentation in our office now for signing. That includes about 123 square kilometers of additional ground, putting the total up to 5,106 square kilometers of property.

Where we feel this is beneficial to us — we’re flying this ground as we speak — is that it adds more areas into our norite belt that we felt we were missing. Previous landowners in the area have lapsed their licenses and we have taken on about five different new licenses to complete our land package.

NIN: You also recently began drilling at Maniitsoq. What is the status of that program? I saw you put out an update today [July 30].

NR: Right now at Maniitsoq we’re on a two-week break. We were there for six weeks and completed the first phase of our two-phase program, 10 holes for just over 1,500 meters of drilling.

Today’s update is really on that first phase. During the first six-week phase at Maniitsoq we checked over 100 electromagnetic anomalies that we’ve assembled up over the last two years of flying over the belt. With this drilling, to date we’ve collected 567 core samples. We did an extensive channel sampling on some of these areas and submitted 249 channel and surface grab samples. All that data now has been submitted to ALS Chemex and I anticipate results coming back in five to six weeks.

During the two-week break we’re flying an additional 700 line-kilometers of Geotech versatile time domain EM survey (VTEM), our main EM system that we use over there and in our projects for VMS as well. We’ll be following up these targets as well in the second phase.

We’ll be starting the second phase on August 2 and going for another six or seven weeks, wrapping up the program with another 10 holes, or 1,500 to 1,600 meters of drilling.

Image courtesy of North American Nickel.Maniitsoq 2013 field program.

NIN: How have you found Greenland as an operating environment?

NR: Good. The Greenland government is very open to exploration companies. The BMP has guidelines and all you do is follow those guidelines. We have a very good rapport with a company called Xploration Services Greenland ApS. They take care of all our logistical requirements over there, so camp set up and everything like that, organizing sample shipments, is through them as well. They’re a very good exploration logistics company and they make sure we follow the guidelines that BMP stipulates.

Just like Canada, as long as you follow the rules and regulations, you’ll be fine. We’ve done above and beyond what the regulations require and have hired as many people from Greenland as possible — and of course our air support over there is from Air Greenland.

NIN: You mentioned that you’re focusing on Greenland right now, but you also have projects in Ontario and Manitoba. Could you talk a little about your plans there?

NR: We have two projects in Sudbury, Post Creek and Halcyon, they’re side by side. We’ve completed quite a bit of work such as trenching and surface mapping, diamond drilling and some surface geophysics. The one in Sudbury is on care and hold for now, we’re still looking for a strategic partner for this project.

The projects up in Thompson, Manitoba, we’ve completed the airborne surveys, have the interpretation in. We are looking into possibly drilling these targets this upcoming winter season, which would be the winter of 2014. We have somewhere in the neighborhood of four to six holes outlined to date. So that’s our plan. It’ll be VTEM follow-up diamond drill holes for our North Thompson project this winter. We’re looking forward to getting that work underway.

NIN: Your website notes that you’re open to seeking strategic partnerships to advance your properties. Are you currently doing so?

NR: We do have a strategic partner already in Maniitsoq. Our strategic partner there is the Sentient Group. We’re still looking for a partner for our Sudbury project. We are in talks with a few companies, but so far we’re just in discussions.

Image courtesy of North American Nickel.Maniitsoq 2013 field program.

NIN: The International Nickel Study Group has said nickel could record a 90,000-MT surplus this year. When you start producing, will there be demand for your product?

NR: Obviously demand is a big concern. And you’re correct, although I didn’t see 90,000, I have 70,000 to 80,000, which is not that far off. So short term, there will be a very strong surplus of nickel in the market. A report put out by Wood Mackenzie that looks at nickel supply says that for 2013, 2014, 2015 and even 2016, we’re going to have a surplus in nickel supply, but after there should be a shortcoming in nickel supply.

Now, this is from one group. It’s just like trying to predict the gold price. Some guys were saying $2,000 gold, but we’ve seen the gold price crash before we even got there. I think the supply of nickel is the same. It’s very country dependent, as in who’s consuming it. The big ones are China and Europe. If we are starting to see a rebound in European demand, maybe this will come through. But obviously we do anticipate a little bit of a slowdown in China, although their GDP is still pretty impressive at 7 percent, 8 percent. The next place we’re seeing a strong rebound in the market is Japan, and with auto sales doing well in North America, that might help with nickel consumption, but really it comes down to China playing a large role. It’s a big consumer of a lot of base metals.

NIN: Thank you very much for speaking with me.

Mineral exploration geophysics should be in demand

Posted by on Sunday, 12 September, 2010


Economic Geology for Geophysicists

Posted by on Friday, 23 April, 2010

The British Columbia Geophysical Society will be hosting a one day Economic Geology for Geophysicists course on May 6th. The course, provided with generous support from Geoscience BC and UBC Mineral Deposit Research Unit, is aimed at providing economic geology background for geophysicists and all exploration geoscientists. The information presented will provide a framework to help the integration and communication of exploration techniques.

Economic Geology for Geophysicists
Thursday, May 6th
UBC Robson Square Room 483
BCIT, Downtown Campus
555 Seymour Street, Vancouver

Course presenters include Thomas Bissig (MDRU), Craig Hart (MDRU), Dianne Mitchinson (MDRU), Steve Rowins (BCGS), Claire Chamberlain (Teck), Lucas Marshall (Teck), and Sean McKinley (Cambria Geosciences Inc).

Topics that will be covered include: tectonic settings, host rocks, structure, emplacement, alteration, mineralization and the relation and comparison between various deposit models. Deposit types to be discussed include porphyry deposits, Archean gold, intrusion-related gold, epithermal gold, VMS, SEDEX/MVT/sediment-hosted copper, and IOCG deposits. Physical properties will be considered!

Geoscience BC for encouragement of mineral exploration

Posted by on Thursday, 4 February, 2010

QUEST-South Project in British Columbia includes a new airborne gravity survey (Sander Geophysics) which covers 45,000 square kilometers between Williams Lake and the USA border. The airborne gravity digital data, grids and final technical report can be downloaded at Geoscience BC QUEST Project Data Releases.  This gravity survey involved more than 25,000 line kilometeres of data at a 2 km line spacing.

The QUEST-South Project is focused on the Quesnel Terrane, south of Williams Lake, and will provide new geoscience information over an area of 130 000 km2. The QUEST-South airborne gravity survey was under taken by Sander Geophysics using their aiborne inertially referenced gravimeter (AIRGrav). This region of the province has been explored and mined for decades and remains one of the most actively explored and prospective areas for discovery of new Cu, Mo and Au resources in British Columbia.

EM anomalies – coal discovery – 1.0 million common shares

Posted by on Friday, 11 December, 2009

In 2006 GoldSource Mines Inc. completed an airborne EM geophysical survey (Fugro Airborne) for diamond exploration.   In April 2008 while drilling geophysical anomalies for diamonds, Goldsource Mines Inc. intersected approximately 23 metres of coal in two discovery drill holes. Now the company has re-processed the 5,700 line kilometres of EM geophysical data in an effort to delineate the aerial extent and the thickness of potential coal zone occurences.

December 10, 2009 ‐ Goldsource Mines Inc.  announces that it has entered into an agreement with Westcore Energy Ltd. pursuant to which Goldsource has agreed to apply its proprietary geophysical matrix to Westcore’s Fugro airborne geophysical data and to provide Westcore with specific drill sites on its Saskatchewan and Manitoba coal lands which, in the opinion of Goldsource, will have a high probability of intersecting significant intervals of coal. Goldsource has completed a significant amount of work and incurred considerable expense since its original Border coal discovery in April of 2008 in developing a proprietary geophysical matrix applicable to Fugro airborne geophysical data which provides a “signature” for prospective coal deposits based on a correlation between airborne geophysical data analyses, down‐hole electronic logs and geological ground proofing through drilling.

As consideration, Westcore will initially issue 100,000 common shares to Goldsource. In the event that Westcore is successful in drilling at least one intercept consisting of not less than 10 metres of coal on each of two drill targets identified by Goldsource (“Success Criteria”), the following additional conditions will apply – Westcore will issue an additional 1.0 million common shares to Goldsource…

December 10, 2009 ‐ Goldsource Mines Inc. (“Goldsource”) announces that it has entered into an
agreement with Westcore Energy Ltd. (“Westcore”) pursuant to which Goldsource has agreed to apply its proprietary
geophysical matrix to Westcore’s Fugro airborne geophysical data and to provide Westcore with specific drill sites on its
Saskatchewan and Manitoba coal lands which, in the opinion of Goldsource, will have a high probability of intersecting
significant intervals of coal.

Just numbers. Mineral exploration declines.

Posted by on Saturday, 14 November, 2009

According to the latest survey results for exploration and deposit appraisal projects across Canada (October 2009) and Australia (September 2009) mineral exploration continues to decline despite a global recovery in commodity prices.

Exploration and Deposit Appraisal Expenditures and Metals Price Index