As commodity prices continue to rebound, New Brunswick’s mineral industry is expected to gain strength with a number of advanced projects anticipated to reach the mining stage in the near future. The value of mineral production remained near record levels in 2008 at $1.4 billion but is expected to decrease for 2009 due to the economic downturn. At present 32,220 claims are in good standing in New Brunswick down slightly from the previous year. New Brunswick is now open to online map-staking. By allowing electronic access from anywhere in the world, the NB e-CLAIMS system is expected to boost mineral exploration activity in the province.
Gold exploration
Freewest Resources Canada and Rockport Mining drilled a total of 11 holes testing a 600-metre segment below the 100-metre level of the East zone on their Clarence Stream property in southwestern New Brunswick. Intersections included 8.24 grams gold per tonne over 5 metres in hole CS08-308 and 13.7 grams gold over 2 metres in hole CS08-310.
Stratabound Minerals, partnering with Castle Resources, reported results from recent drilling on the Elmtree gold property in northern New Brunswick. Intersections in the lower- grade South Gold zone included 0.63 grams gold over 35 metres in hole ELM-42 and 0.36 gram gold over 63.5 metres in ELM-48. Intersections in the higher-grade West Gabbro zone assayed 2.43 grams gold over 29 metres in hole ELM09-54, and 1.27 grams gold over 18.5 metres in hole ELM09-58. The West Gabbro zone contains a National Instrument (NI) 43-101-compliant resource estimate of 525,000 indicated tonnes grading 2.45 grams gold (41,000 oz. gold), and a total of 4.62 million inferred tonnes at an average grade of 1.25 grams gold (185,500 oz.) for the West Gabbro, Discovery, and South Gold zones, collectively.
Blue Note Mining reported further assay results from its 2008 drilling program on its Williams Brook gold property, 90 km west of Bathurst in northern New Brunswick. Intersections include 2.28 grams gold over 0.6 metre in hole WB08-12, and 1.63 grams gold over 0.4 metre in hole WB08-15. To date, 24 diamond-drill holes have been drilled to test the shallow (15-metre depth) gold mineralization associated with quartz veins and potassic-altered rhyolite.
Copper, lead and zinc
Votorantim Metais Canada has entered into option agreements on claims owned by El Nio Ventures and Xstrata Zinc Canada in the Bathurst Mining Camp (BMC), northern New Brunswick. The agreement includes 1,805 mineral claims in which El Nio and Xstrata Zinc each own a 50% interest, and 2907 claims owned 100% by Xstrata Zinc.
Kria Resources completed a scoping study for its Halfmile Lake VMS deposit in the southwestern part of the BMC. The report estimates that a 2,000-tonne-per-day underground mining operation would have a life of at least 20 years with payback on investment (net present value of $587 million and rate of return of 16.24%) being achieved in the eighth year of operation. The Halfmile Lake deposit has a NI 43-101 compliant indicated resource estimate of 6.26 million tonnes grading 8.13% zinc, 2.58% lead, 0.22% copper and 30.78 grams silver per tonne; plus inferred resources of 6.1 million tonnes grading 6.69% zinc, 1.83% lead, 0.14% copper and 20.51 grams silver. Kria also reported an inferred resource estimate for the nearby Stratmat property, with 5.52 million tonnes grading 6.11% zinc, 2.59% lead, 0.4% copper and 54.21 grams silver (at a 5% zinc-equivalent cutoff grade). Kria is in discussions with Xstrata Zinc on a proposal to process ore from these projects at the Brunswick No. 12 mill.
Blue Note Mining intersected significant base metal mineralization in several drill holes testing a 2.3-km geophysical anomaly at the Armstrong property in the northern part of the BMC. Drill hole AB-08-09 intersected 8.3 metres of massive sulphides grading 2.83% zinc, 1.01% lead, 0.32% copper and 27.1 grams silver, including 3.62% zinc, 1.46% lead, 0.29% copper and 32.3 grams silver over 3 metres. Blue Note has acquired the nearby Brandy Brook property (67 claims) along strike from Armstrong.
SLAM Exploration has completed three drill holes on its South Narrows property, 50 km west of Miramichi City in the southern part of the BMC. Drill hole TS-09-01 intersected 43.3 metres of stringer mineralization comprising 10% pyrite-pyrrhotite with 406 ppm copper, 323 ppm lead, 557 ppm zinc, 121 ppm cobalt, 1.8 ppm silver, and 56 ppb gold.
SLAM has updated its resource estimates for the Nash Creek zinc-lead-silver massive sulphide deposit located in northern New Brunswick, reporting an indicated resource of 7.81 million tonnes grading 2.72% zinc, 0.55% lead and 18.3 grams silver, with an inferred resource of 1.21 million tonnes grading 2.66% zinc, 0.52% lead and 18 grams silver. The adjacent Silverjack property, acquired through an agreement with Northeast Exploration Services, comprises three claims containing high-grade silver-lead- zinc-copper veins, with historical drill results ranging up to 19.4 oz. silver per ton (666 grams), 3.23% copper, 14.4% zinc and 11.3% lead over 2.8 metres.
Stratabound Minerals has reported that drilling is ongoing on its Captain and Captain North Extension VMS deposits in the BMC. Grab samples in the vicinity of the previously mined CNE pit yielded grades up to 16.3% zinc, 7.8% lead, and 663.5 grams silver. Stratabound announced results of preliminary metallurgical test work on semi-massive copper-cobalt zones within the Captain deposit. Flotation test work on the zone indicates that a copper concentrate can be produced at a grade of about 28% copper and a recovery of about 94%; a pyritic cobalt concentrate grading 0.12% cobalt at a recovery of roughly 80% was also produced. Tests on a separate cobalt zone resulted in a pyritic cobalt concentrate with a grade of 0.46% cobalt and 91% cobalt recovery; copper concentrates had a grade of about 27% with a 98% recovery.
Puma Exploration has delineated a resource of 364,000 tonnes containing more than 1 million oz. silver, 11 million lbs. zinc (at a 1% zinc-equivalent cutoff), 5 million lbs. lead, and 6,200 oz. gold in the Hach massive sulphide lens on its Nicholas-Denys property in northern New Brunswick. Puma is conducting infill drilling on the nearby Shaft lens (300 metres along strike), with one hole intersecting 4.4 metres of sulphides grading 6% zinc, 3.3% lead, and 108 grams silver per tonne. Puma has also completed three holes (291 metres total) on the Pine Tree lens situated along strike.
Puma started drilling on the Turgeon base-metal VMS deposit in northern New Brunswick with three holes, and reported assays of 0.97% copper and 1.05% zinc over 8.6 metres, and 2.16% copper and 0.12% zinc over 2.3 metres in hole F09-02; and 0.14% copper and 1.25% zinc over 2 metres, and 1.05% copper and 0.36% zinc over 8.4 metres in hole F09-03.
Tin, tungsten, and moly
Geodex Minerals reported an updated resource estimate for its Sisson Brook tungsten-molybdenum deposit in central New Brunswick, incorporating 4,900 metres of drilling carried out last year. The combined resource estimates for the Ellipse zone and Zone III (at the 0.125% WO3 equivalent threshold) are: 21.1 million tonnes of 0.109% WO3 and 0.038% molybdenum in the measured category; 98.3 million indicated tonnes of 0.107% WO3 and 0.035% moly; and 44.1 million inferred tonnes of 0.098% WO3 and 0.04% moly. Geodex is also focusing on its recently acquired Flume Ridge property in southwestern New Brunswick to investigate the source of significant tungsten anomalies in soil and stream-sediment samples.
Cadillac Ventures released a NI 43-101-compliant resource estimate for the Burnthill Mine property based on sampling of drill core (both historic and recent) and channel samples. Indicated resources (including underground and open pit) stand at 461,000 tonnes grading 0.489% WO3, 0.012% MoS2, and 0.01% SnO2, plus 590,000 inferred tonnes grading 0.535% WO3, 0.009% MoS2, a
nd 0.013% SnO2.
Adex Mining released updated resource estimates for its Mount Pleasant property, comprising two main mineralized zones. The Fire Tower zone hosts indicated resources of 13.49 million tonnes of 0.33% WO3 and 0.21% MoS2, plus 841,700 inferred tonnes averaging 0.26% WO3 and 0.2% MoS2, based on a cutoff grade of 0.3% WO3 equivalent. The North zone hosts an indicated 10.88 million tonnes grading 0.43% tin, 67.8 grams indium per tonne, 0.67% zinc, 0.09% WO3, 0.06% MoS2, 0.11% copper and 0.08% bismuth, plus an inferred resources of 7.6 million tonnes grading 0.22% tin, 74.6 grams indium, 0.99% zinc, 0.08% WO3, 0.05% MoS2, 0.09% copper, and 0.05% bismuth, based on a cutoff grade of 0.25% tin equivalent. Adex also completed a preliminary assessment on the production of tin, indium and zinc products from the North zone. Results indicate that there are two viable production options for the zone: the production of tin concentrate, indium sponge and zinc metal; or the production of tin concentrate and zinc-indium concentrate. Based on a 10-year projected life and production rate of 850 tonnes per day, the assessment shows pretax internal rates of return of 28.87% for the first option and 23.49% for the second.
Rare earths and uranium
Great Western Minerals Group completed a 36 line-km ground magnetic and VLF-EM geophysical survey (50-metre line spacing) on the Benjamin River rare earth element (REE) property in northern New Brunswick. The survey delineated a 700 by 100- metre geophysical anomaly coinciding with exposures of REE-bearing apatite-diopside-magnetite veins. Historical assays for the deposit range from 0.6% to 1% rare earth oxides hosted by coarse apatite, which is preferentially enriched in heavy rare earths (europium through lutetium); phosphate and iron oxide grades are also significant with samples assaying up to 18% P2O5 and 39% Fe2O3.
Cornerstone Capital Resources completed the first phase of an exploration program targeting volcanic- associated uranium deposits on its Chaleur property, 60 km west of Bathurst. A 1,511 line-km fixed-wing airborne magnetic and radiometric survey identified 15 targets. Follow- up prospecting and a geochemical stream-sediment sampling program discovered two new areas of uranium mineralization in the western portion of the property; float samples assayed up to 427 ppm uranium.
Mining activity and development
PotashCorp continued construction on its $1.7-billion Picadilly potash operation adjacent the Penobsquis mine, near Sussex in southern New Brunswick. Development plans involve two headframes and an onsite concentrator; construction is to be co-ordinated with upgrades to the Penobsquis mine infrastructure. Ground was broken on the first headframe in 2008, with production anticipated to begin in 2011.
Maple Minerals has acquired the assets of Blue Note Caribou Mines for US$4.25 million, which includes the Caribou underground mine and nearby Restigouche open-pit mine. Prior to mine closure, Blue Note had carried out an evaluation of inferred resources discovering significant mineralization with drill hole UGX-08-27, intersecting 34.8 metres (true width) grading 7.22% zinc and 2.69% lead.
Xstrata Zinc completed an extensive technical and economic evaluation of potential resources and other mining remnants in its Brunswick No. 12 base metal mine. With the improvement in commodity prices, Xstrata has converted a significant tonnage to reserve status, extending the mine life to early 2012.
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