Base Metals Snapshot: Eight companies on the hunt for base metals in the Americas

The rise in base metal prices in 2017 and early 2018 has translated into a lively exploration and development scene amongst companies focused on base metals. Here are eight such companies.

BUNKER HILL MINING

Toronto-based junior Bunker Hill Mining (CSE: BNKR; US-OTC: BHLL) says it is “uniquely positioned to redevelop one of the largest zinc-lead-silver deposits in the Americas not in production.” Its flagship asset is the dormant Bunker Hill mine in northern Idaho’s Silver Valley.

Historic reserves and resources at Bunker Hill stand at 9.1 million tons (8.3 million tonnes) grading 5.08% zinc, 2.35% lead and 1.29 oz. silver per ton.

Management says there is “near-term access to at least seven years of mineable material at 1,500 tons [1,400 tonnes] per day,” with the highest-grade zones running at more than 20% combined lead and zinc.

Bunker Hill notes the excellent infrastructure in the area, with paved road access, low-cost power, water, skilled labour and mining services. It says Idaho is “mining friendly and a ‘Right to Work’ state.”

GROUP TEN METALS

Group Ten Metals’ (TSXV: PGE; US-OTC: PGEZF) mineral target is right in its name: if you look at a periodic table of the elements, the tenth column, or “group 10,” is comprised of nickel, palladium and platinum, plus the highly instable darmstadtium. The company wouldn’t hesitate to dip into column 11, with its copper, silver and gold, too.

The Vancouver-based junior’s three main projects are: its Stillwater West platinum group metals (PGM) project next to Sibanye-Stillwater’s Stillwater PGM mine in Montana; the Kluane PGM-nickel-copper project in the Yukon, by Nickel Creek Platinum’s world-class PGM deposit; and the Black Lake-Drayton gold project in northwestern Ontario’s Rainy River belt.

In July Group Ten completed all earn-in requirements for the Drayton claim block within the Black Lake-Drayton project under an agreement first struck in 2012, and now owns 100% of the claims. It also added to its land position in the immediate area.

NEXA RESOURCES

Nexa Resources (TSX: NEXA; NYSE: NEXA) is the big and brash new Brazilian zinc-mining entrant on the Toronto Stock Exchange and New York Stock Exchange, having ranked as one of the larger new listings in North America in recent times.

With a market capitalization of US$1.8 billion, Nexa at last count has revenues of US$1.9 billion, earnings before interest, taxes and depreciation and amortization of US$404 million, and 5,387 employees, mainly at mines, smelters and greenfield projects in Brazil and Peru. With over 60 years of experience developing and operating mining and smelting assets in Latin America, the integrated zinc major operates and owns five long-life underground mines: three in the Central Andes of Peru; and two in Brazil’s Minas Gerais state.

While zinc is Nexa’s focus, its mineral portfolio also includes copper, lead and silver assets.

NICKEL CREEK PLATINUM

Nickel Creek Platinum (TSX: NCP; US-OTC: NCPCF) — formerly Wellgreen Platinum — is focused on advancing its wholly owned Nickel Shaw project in the southwest corner of the Yukon, and says it could become “Canada’s next world-class nickel sulphide mine.”

The assets hosts over 2 billion lb. nickel, 1 billion lb. copper, 6 million oz. platinum group metals and 120 million lb. cobalt in the measured and indicated categories.

The company has had a spring its step since a new management team was assembled in 2016–2017 (including bringing in former Romarco Minerals exec Diane Garrett as president and CEO), and a new technical team has reanalyzed the entire deposit, and is carrying out more metallurgical studies.

Some of its big-name shareholders include the Electrum Fund, Resource Capital Funds, Drake Private Investments and Tocqueville Gold Fund.

OSISKO METALS

Osisko Metals (TSXV: OM; US-OTC: BWMXF) is the member of Osisko Group of Companies that is focused on base metals development — especially zinc assets.

Earlier this year it closed a $34-million acquisition of Pine Point Mining, and immediately kicked off a 50,000-metre drill program at the historic Pine Point zinc-lead property, 65 km east of Hay River, Northwest Territories.

The company also controls advanced-stage exploration ground in the Bathurst base metals camp in northern New Brunswick, where it similarly has a 50,000-metre drilling program on the go.

Osisko Metals says the two programs focus on exploration around historical deposits as well as verification of historical intercepts, and that brownfield exploration is being applied using “innovative 3-D techniques, advanced geological interpretation and cutting-edge geophysics.”

ROYAL NICKEL

Toronto-based, Mark Selby-led Royal Nickel (TSX: RNX; US-OTC: RNKLF), or “RNC,” describes itself as a “multi-asset precious and base metal mining company with high-quality production and development assets in low-risk jurisdictions.”

Its principal assets are: the producing Beta Hunt gold-nickel mine in Western Australia; a 28% stake in the nickel joint venture that holds the Dumont nickel project in the Abitibi region of Quebec; a 27% stake in the producing Reed mine in the Flin Flon-Snow Lake region of Manitoba; and a 36% interest in gold explorer Orford Mining, which has assets in Quebec and the Carolinas.

The Beta Hunt mine produced 13,320 oz. gold in the second quarter, up 60% from the year-ago quarter.

RNC is selling Beta Hunt and expects to close a deal in August, and refocus on Dumont.

SPHINX RESOURCES

Montreal-based Sphinx Resources (TSXV: SFX; US-OTC: DONFF) has a mandate to generate and acquire mineral exploration projects in Quebec.

In June, Canada Strategic Metals, Matamec Explorations and Sphinx Resources announced that Canada Strategic and Matamec closed a business combination to create a gold exploration company whose activities would focus on Quebec’s James Bay region, and call it “Quebec Precious Metals Corporation.”

At the same time Canada Strategic has acquired Sphinx’s three gold projects in Quebec by way of an asset purchase, including Sphinx’s 50% interest in the Cheechoo-Éléonore Trend project, as well as the remaining 50% interest in that project held by Sirios Resources.

More recently, Sphinx raised $221,000 in a private placement and will focus on advancing its zinc projects Calumet-Sud, Tessouat, Tessouat-Sud and Obwondiag in southwestern Quebec’s Pontiac region.

TOACHI MINING

Toronto-based junior Toachi Mining (TSXV: TIM; US-OTC: TIMGF) describes its La Plata property in north-central Ecuador as hosting a gold-rich, volcanogenic massive sulphide deposit.

La Plata was the subject of small-scale mining from 1975–1981 by Finnish giant Outokumpu, and modern drilling by Cambior from 1996–1999 and Cornerstone Capital from 2006–2009. Drilling at the property so far totals 14,500 metres.

At a 4 gram gold equivalent cut-off grade, the Plata deposit hosts an inferred resource of 1.9 million tonnes at 4.1 grams gold per tonne, 49.4 grams silver per tonne, 3.3% copper, 0.6% lead and 4.5% zinc.

Toachi is led by chairman Jonathan Goodman, and others involved in the company include independent directors Laurence Curtis, Peter Nixon, Ebe Scherkus and Carolina Vargas.