South Cariboo shines for KORE Mining
KORE Mining expects British Columbia's South Cariboo Gold District to re-emerge as a top gold jurisdiction after its drill program at the 35-claims FG Gold project discovered multiple new quartz vein systems and "numerous encounters" of visible gold.
The company, which controls 1,000sqkm of claims in the district, recently completed the 15 hole 5,746 metre drill program at the project, with first assay results to be released in early November. It has extended its 2020 drilling in the area by 2,000 metres with 10 additional holes planned through the remainder of the year.
Project highlights include:
- Discovered quartz veins containing visible gold ~320m down dip from nearest historic drilling and ~215m down dip from Lower Zone discovery hole FG-20-369 (10m of 3.9 g/t Au @ at 239m)
- Quartz veins containing visible gold identified in 8 of 14 logged drill holes (1 hole pending)
- Further defined structural controls of known gold mineralization
- Assay results for all 15 holes are pending with first results expected in early November 2020
- Mineralization remains open at depth and along almost the entire 20km FG Gold trend, representing a district scale opportunity for new discoveries and resource expansion
KORE CEO Scott Trebilcock said: "FG Gold is the flagship project within KORE's district scale South Cariboo Gold District. With 1,000 square kilometres, the South Cariboo Gold District has similar scale and potential to Osisko Gold Royalties Cariboo Gold Project which recently announced a proposed spin-out into a stand-alone listed company.
"The Cariboo region of British Columbia is highly attractive for gold exploration and development with excellent local infrastructure, access to skilled labour and multiple operating mines."
Earlier in 2020, KORE reported eight holes at the FG Gold project which intersected quartz veining with visible gold in the Upper Zone and Lower Zone (new discovery).
Upper Zone highlights include:
- 11m of 10.0 g/t gold at 44m downhole in FG-20-373
- 76.5m of 1.1 g/t gold at 5.5m downhole in FG-20-368
- 98m of 1.0 g/t gold at 24m downhole in FG-20-372
- 51m of 1.6 g/t gold at 19m downhole in FG-20-370
Lower Zone highlights include:
- 52.5m of 1.1 g/t gold at 122.5m in FG-20-375
- 10m of 3.9 g/t gold at 237m in FG-20-369
Trebilcock said KORE will start releasing assay results for the latest FG Gold drilling in early November. "The extended drilling will target new discoveries in the South Cariboo Gold District and extending mineralization at Gold Creek," he said.
Drill Program Details
KORE completed 15 holes drilling for 5,746 metres in the Main Zone of the FG Gold project from June through October 2020. The Program was designed to target large step-outs from known mineralization at depth and to extend more drilling into the Lower Zone, a new mineralized rock unit, discovered earlier in 2020.
The Program continued to use oriented, large diameter (HQ) core and metallic screen assaying to both define structure and get representative assays from the coarse gold in the FG Deposit.
The FG Gold property straddles the boundary between the Omineca and Intermontane tectonics belts of the Canadian Cordillera. The district was host to the Cariboo gold rush in the late 1800s.
Lithium producers bullish as EV revolution ramps demand
Rising demand for lithium is stoking prices for the electric vehicle battery metal, fueling long-delayed expansions that still may not produce adequate supplies that automakers need to meet aggressive production plans.
Growing industry optimism from higher lithium prices is a change from last year when funding for mines and processing plants dried up during the pandemic.
Albemarle Corp, Livent Corp and other producers are scrambling to make more lithium, but some analysts worry the recent price jump will not spur a big enough expansion to meet a planned wave of new EV models by mid-decade.
Since January, General Motors Co, Ford Motor Co LG Energy Solution and SK Innovation Co, along with other automakers and battery parts manufacturers, have said they will spend billions of dollars on EV plants.
U.S. President Joe Biden has proposed spending $174bn to boost EV sales and infrastructure. The European Union has similar plans, part of a rush to catch up with global EV leader China.
Those moves have helped an index of lithium prices jump 59 percent since April 2020, according to data from Benchmark Mineral Intelligence, a commodity pricing provider.
The rising demand “reflects what feels like a real and fundamental turning point in our industry,” said Paul Graves, chief executive of Livent Corp, which supplies Tesla Inc. On Monday, it said it would more than double its annual lithium production to 115,000 tonnes.
Graves warned, though, that “it will be a challenge for the lithium industry to produce sufficient qualified material in the near and medium term.”
Albemarle, the world’s largest lithium producer, aims to double its production capacity to 175,000 tonnes by the end of the year when two construction projects are complete. Albemarle's Q1 profit beat expectations thanks to rising lithium prices. Chile’s SQM, the No. 2 producer, said its goal to expand production of lithium carbonate by 71 percent to 120,000 tonnes should be complete by December.
Australia’s Orocobre is paying $1.4 billion for smaller rival Galaxy Resources, a strategy designed to boost scale and help it grow faster in regions closer to customers.
“The next few years are going to be critical in terms of whether there’s enough available lithium supply, and that’s why you’re starting to see commodity prices start to ramp,” said Chris Berry, an independent lithium industry consultant.
The price gains helped Albemarle and other major producers, including China’s Ganfeng Lithium Co and SQM, post big gains in first-quarter profit and boost forecasts for the year.
Even China’s Tianqi Lithium Corp, saddled with debt due to years of low lithium prices, signaled that recovering demand should help it swing to a profit this year.
Forecasts call for demand for the white metals to surge from about 320,000 tonnes annually last year to more than 1 million tonnes annually by 2025, when many automakers plan to launch new EV fleets, according to Benchmark.
Still, demand is expected to outstrip supply in 2025 by more than 200,000 tonnes, so lithium prices may need to rise to encourage producers to build more mines. That could boost the prices consumers pay for EVs. “Companies across the lithium-ion supply chain are in the best position they’ve been in for the last 5 years,” said Pedro Palandrani of the Global X Lithium & Battery Technology ETF , which has doubled in value in the past year.