Ontario snapshot: Nine microcaps on the move

In a world of turmoil, a safe, predictable, mineral-rich and mining-friendly jurisdiction like Ontario is appealing to miners large and small from around the world.

The following are nine examples of small-cap companies at various stages of activity in Ontario.

KWG RESOURCES

Toronto-based KWG Resources (CSE: KWG; US-OTC: KWGBF) is working to develop chromite deposits in the Ring of Fire camp of northern Ontario, namely its stakes in the co-owned Black Horse deposit (part of its Koper Lake project) and its  Big Daddy deposit.

With substantial resources already outlined in both deposits, much of KWG’s energy this year has been devoted to infrastructure issues in the remote camp, including tabling a study of a proposed east–west road and striking a deal with China Railway First Survey & Design Institute Group Co. for a feasibility study.

In the boardroom, Cynthia Thomas has left and Bruce Reid and Jennifer Boyle have joined, bringing the number of directors to six.

NORONT RESOURCES

Noront Resources (TSXV: NOT: US-OTC: NOSOF) is the other junior in the Ring of Fire camp, and its largest landholder.

Noront’s flagship project remains its wholly owned, high-grade nickel-copper-platinum group metal (PGM) Eagle’s Nest deposit, which it describes as “the largest high-grade nickel discovery in Canada since Voisey’s Bay.”

The company just acquired the Butler and Sanderson properties in the Ring of Fire from Macdonald Mines, increasing Noront’s claim blocks in the Ring of Fire to 522 claim units from 375 units.

Noront is now drilling for nickel-copper-platinum-palladium along strike from Eagle’s Nest.

NORTHERN GRAPHITE

Northern Graphite (TSXV: NGC) owns a 100% interest in the Bissett Creek graphite deposit in eastern Ontario, which it describes as an advanced-stage project, with a bankable final feasibility study and its major environmental permit.

The company says that among the new graphite projects, Bissett Creek has the highest percentage of large-flake material, the best infrastructure, the lowest capital costs and the lowest unit operating costs.

In March, Northern Graphite teamed with Elcora Advanced  Materials, Nouveau Monde Mining Enterprise, Metals of Africa Ltd., Coulometrics LLC and a private partner to buy a micronizing and spheronizing mill to produce spherical graphite, which is a critical step in producing the anode material used in lithium ion batteries.

PACIFIC NORTH WEST CAPITAL

From its base in Vancouver, Harry Barr’s Pacific North West Capital (TSX: PFN) has long been developing its large but low-grade River Valley PGM deposit outside Sudbury.

River Valley’s measured and indicated resources stand at 91 million tonnes at 0.58 gram palladium per tonne, 0.22 gram platinum per tonne and 0.04 gram gold per tonne for 2.46 milllion oz. PGMs, plus gold. Inferred resources tack on 36 million tonnes at lower grades, for 614,000 oz. PGMs plus gold.

This year the company has added a lithium division, and started exploring three lithium projects in southeast Manitoba near the old Tanco mine.

PROBE METALS

Spun out from Probe Mines after its acquisition by Goldcorp in March 2015, gold junior Probe Metals (TSXV: PRB) has many of the same faces that guided Probe Mines to success in eastern Ontario, including president David Palmer and chairman Jamie Sokalsky.

Probe Metals has had a busy year already with a merger with Adventure Gold, major financings,  property deals and grassroots exploration.

Its flagship project is Adventure’s Val-d’Or East project in Quebec, with its 770,000 inferred oz. gold at a grade of 2.6 grams gold per tonne.

PURE GOLD MINING

Pure Gold Mining (TSXV: PGM) is a well-known player in northwestern Ontario’s famed Red Lake gold camp, where it is steadily advancing its wholly owned Madsen gold project.

Pure Gold has just raised $19 million from exercising warrants at a 50¢ strike price (The stock trades today at 75¢). That leaves Pure Gold with 172.5 million outstanding shares and $22 million in cash-on-hand. Meanwhile, work continues on a $9.1-million, four-rig exploration program at Madsen. 

RAINY MOUNTAIN ROYALTY

While it sounds like the name of a Costa Rican coffee blend, Rainy Mountain Royalty (TSXV: RMO) is in fact an exploration company based in Thunder Bay, Ont., that is hunting for copper, zinc, nickel and precious metals in northwestern Ontario, with a focus on PGMs associated with copper and nickel.

The Douglas L. Mason-led company is raising $420,00 via a non-brokered private placement, and will direct funds to its Brunswick property.

TOMAGOLD

TomaGold (TSXV: LOT) is better known as an explorer in Quebec’s Chibougamau camp, but Ontario is growing in importance thanks to a recently acquired 39.5% stake in the Sidace Lake advanced gold project in Red Lake, which is a joint venture with 60.5%-owner Goldcorp.

Tomagold has arranged a $2-million convertible debenture financing.

ZENYATTA VENTURES

Based in Thunder Bay, Zenyatta Ventures (TSXV: ZEN; US-OTC: ZENYF) continues to develop its rare igneous-hosted Albany graphite deposit in northern Ontario, which it discovered in 2011 and describes as a “highly crystalline graphite deposit that is a fluid-derived (volcanic style), which differs from the relatively common flake (sedimentary style) of graphite deposits. Albany is the largest and only graphite project of its kind in the world.”