Alamos Gold buys Trillium Mining for £14.4m
Alamos Gold has completed an agreement to acquire Trillium Mining Corporation for cash consideration of £14.4 million.
In a statement, Alamos says that Trillium holds a large land package comprising of 5,418 hectares directly adjacent to, and along strike, from the Island Gold Deposit within the Michipicoten Greenstone Belt.
The acquisition has significantly expanded Alamos’ land package around the Island Gold mine to 14,929 hectares, a 57 percent increase that includes significant exploration potential in proximity to existing high-grade mineral resources.
Based on the current geological interpretation of the E1E structure which hosts the Island Gold Deposit, there is strong potential for the structure to extend onto the Trillium mineral tenure, the statement says.
This is further supported by recent drilling, including the best surface exploration hole to date, MH25-04 grading 28.97 grams per tonne of gold (“g/t Au”) (26.89 g/t cut) over 21.76 metres true width, and MH25-03 grading 15.38 g/t Au (14.19 g/t cut) over 15.02m.
These intercepts extended high-grade gold mineralisation over significantly greater widths up to 100m down-plunge from the nearest Inferred Mineral Resource block in Island East. The deposit remains open laterally and down-plunge, it says.
“The acquisition of Trillium is consistent with our strategy of consolidating prospective land in proximity to our Island Gold mine where we have had tremendous exploration success over the last several years. Island Gold’s Mineral Reserve and Resource base has more than doubled since 2017.
"We see excellent potential for this growth to continue given ongoing exploration success. The acquisition of these claims ensure we maintain full ownership over future growth of the existing deposit and regionally where there have been a number of high-grade gold occurrences including two past producing mines," said John A. McCluskey, President and Chief Executive Officer.
The Trillium land package also provides significant regional exploration potential, adding 10 kilometres of strike extent within the Goudreau Lake Deformation Zone (GLDZ), a primary control on gold mineralisation within the Goudreau-Lochalsh segment of the Michipicoten Greenstone Belt.
Alamos’ consolidated land package now covers a total of 17 kilometres of highly prospective structures and stratigraphy within the GLDZ. In addition to the Island Gold and Kremzar Deposits, this now includes two past producing gold mines (Cline and Edwards), as well as several historic high-grade gold showings, including the Markes and Vega Zones.
The larger consolidated land package will allow for Alamos to apply a systematic, district scale approach to exploration with targeting based on greenstone belt scale structural and stratigraphic controls on gold mineralisation.
Included within the Trillium land package is the Highland Property which is in the final year of a five-year option agreement. Following the exercise of the option, expected on February 26, Alamos will own 100 percent of the Highland Property.
Lynas revenue jumps 21% as rare earth prices jump
Australian miner Lynas Rare Earths posted a 20.6% rise in revenue in the March quarter as selling prices for the key metals it mines hit record highs amid strong demand, particularly for neodymium and praseodymium (NdPr).
NdPr is used in magnets for electric vehicles and windfarms, in consumer goods like smartphones, and in military equipment such as jet engines and missile guidance systems.
The company said it plans to maintain production at 75% however, as it seeks to continue to meet covid-19 safety protocols and grapples with shipping difficulties. Shares in Lynas fell 6.1% after the results.
“They have faced a few logistics issues, and it would be good to know when they are going to start lifting their utilisation rates a bit,” said portfolio manager Andy Forster of Argo Investments in Sydney.
“Pricing has been pretty strong although it may have peeled back a bit recently. I still think the medium, long-term outlook is pretty good for their suite of products.”
Lynas post ed revenue of A$110mn ($85.37mn) for the three months to the end of March, up from A$91.2mn a year earlier as prices soared.
It said its full product range garnered average selling prices of A$35.5/kg during the March quarter, up from $23.7 in the first half of the financial year. “While the persistence of the covid crisis, especially in Europe, calls for careful forecasts for our business ahead, we see the rare earth market recovering very quickly,” said Lynas, the world’s largest rare earths producer outside China.
Freight demand has spiked during the pandemic, while the blockage of the Suez Canal in March delayed a shipment to April.
Lynas’ output of 4,463 tonnes of rare earth oxide (REO) during the quarter was marginally lower than 4,465 tonnes from a year earlier.