NEWS RELEASE.

May 31, 2012: Johannesburg, South Africa – Witwatersrand Consolidated Gold Ltd. (Wits Gold – Stock Profile – TSX:WGR) announced yesterday, 30 May 2012, that the acquisition agreement in respect of an offer by Wits Gold and Pan African Resources plc (the “Consortium”) to acquire 100% of Evander Gold Mines Limited from Harmony Gold Mining Company Limited in a 50/50 joint venture had been terminated by mutual agreement between the parties.

The process has been constructive. The Company was able to canvas and meet the majority of its shareholders and has received their support for its strategy and the right transaction.

Wits Gold’s CEO, Philip Kotze, commented: “While we are disappointed that the Consortium’s offer was not successful, our strategy to become a profitable mid-tier gold producer and developer to create maximum value for our shareholders remains intact.

Wits Gold will continue to actively pursue other opportunities to achieve our goal of becoming a gold producer, and we believe that our timing is apposite as we anticipate greater industry consolidation at the right price in the near term.

The pre-feasibility study for our flagship De Bron Merriespruit (DBM) Project in the southern Free State goldfield is being finalized, and the detail will be shared with the market within the next month. We also continue to advance the remaining exploration projects in our portfolio up the value curve, and expect to provide further updates in this regard during the coming quarter.”

To read more – CLICK HERE.

CompanyFeed™

NEWS RELEASE.

May 31, 2012: North Vancouver, BC – Stornoway Diamond Corp. (Stock Profile – TSX: SWY) announced the relocation of its head office to Montréal, Québec from North Vancouver, British Columbia, effective immediately. The relocation reflects Stornoway’s focus on the successful development of the 100% owned Renard Diamond Project, which is on track to becoming Québec’s first diamond mine.

Matt Manson, President and CEO, commented: “Today’s announcement represents another step in Stornoway’s continuing evolution. Renard is a major undeveloped diamond asset with a significant potential mine life. As we work to develop it, our center of gravity on an operational, administrative, corporate and financial basis is moving eastwards. It now makes sense to consolidate our head office and operating functions in one location. Initially, we expect minimal relocation of staff associated with this announcement. Our exploration team will continue to operate out of North Vancouver, with a mandate to explore all of Canada. However, Montreal will become our platform for expansion as we build our mining team and corporate support staff. We are proud to be able to contribute to the long-established reputation of Montreal as a head office center for the Canadian mining industry“.

For more on the company’s Renard Diamond Project – CLICK HERE.

CompanyFeed™

The markets were starving for some positive news, optimism ran high yesterday in hopes the EU Summit in Brussels would produce the required substance to restore confidence in the markets.

In the mining sector, some significant rallies occurred while the heads of Europe prepared for dinner.

Shares of Geologix Explorations (Stock Profile – TSX:GIX) rallied from $0.23 to $0.295 (22.0%) while Northern Graphite (Stock Profile – TSXV:NGC & OTCBB:NGPHF) made a strong move from a low of $1.32 to $1.58 (16.5%). MAG Silver (Stock Profile – TSX:MAG & AMEX:MVG ) was up nearly $1 per share to close the day at $8.14.

From that informal dinner meeting – three main growth initiatives are being considered by the European Union. These initiatives are expected to compliment a fiscal treaty that aims to enforce stricter debt and deficit rules which is expected to be implemented in January next year.

EU PROJECT BONDS

Under a proposal by the European Commission, the European Union would back debt issued by the managers of infrastructure projects as a way of attracting investors to finance cross-border transport, energy and communication projects.

A pilot project phase is expected to run over this year and next, using 230 million euros from the EU’s budget as collateral and combining that with guarantees from the European Investment Bank (EIB).

Established in 1958 under the Treaty of Rome, the EIB is owned by the Member States of the European Union who subscribe to the Bank’s capital. As shareholders, the Member States are represented on the Bank’s main independent decision-making bodies (Board of Governors and the Board of Directors) and is considered to be a policy-driven long-term lending operation.

BOOSTING THE EIB

Leaders will discuss a plan to increase the EIB’s paid-in capital by 10 billion euros. According to a proposal made by the European Commission, the move could increase potential lending by 60 billion euros and ultimately deliver extra investment of up to 180 billion euros (multiplier effect).

It is worth noting that additional capital would fall hardest on its top shareholders. France, Italy, Britain and Germany would be expected to pledge about two-thirds of the total cash (roughly 230 billion euros).

REDIRECTING STRUCTURAL FUNDS

Leaders are looking to make use of the 82 billion euros in EU development aid that has not yet been allocated to specific projects for the 2007-2013 period.

Effectively, the Brussels meeting produced an economic appetizer but there was no main course. During a televised interview on Bloomberg Television, Callum Henderson, global head of currency research at Standard Chartered in Singapore said, “The summit as a whole was very troubling. While they talked, they did absolutely nothing. Probably the best analogy for that informal dinner that they had is fiddling while Rome burns, or indeed Athens burns.” Sound familiar?

For an excellent interactive “European Crisis Map” developed by CNN’s Mark Barringer – CLICK HERE.

PRESS RELEASE.

May 23, 2012: Vancouver, B.C. – Oracle Mining Corp. (Stock Profile – TSX:OMN & OTCQX:OMCCF) recently provided an Oracle Ridge project update to Viral News with the company’s CEO Doug Nicholson, including details of the project’s current stage of development as well as highlights of significant milestones for the next six months.

You can view the interview below:

CompanyFeed™

NEWS RELEASE.

May 23, 2012: North Vancouver, BC – Stornoway Diamond Corp. (Stock Profile – TSX: SWY) announced a significant pre-development capital program for 2012 at the 100% owned Renard Diamond Project (“Renard”) located in north-central Québec. In November 2011 Stornoway released the results of the Renard Feasibility study, which demonstrated an economically viable project with an initial 11 year reserve based mine life, strong operating margins and extensive resource upside. Since this time, Stornoway has filed the project’s Environmental and Social Impact Assessment (“ESIA”; December, 2011), announced the start of construction on the Route 167 highway extension project by the Québec Ministère des transports (“MTQ”;  February, 2012), announced the signing of an Impacts and Benefits Agreement with the Crees of the James Bay Region (the “Mecheshoo Agreement”; March 2012), and announced the raising of gross proceeds of $40 million in a combination of unsecured debt and new equity (March, April and May, 2012).

Matt Manson, President and CEO, commented: “The pre-development capital program announced today for Renard will maintain our development schedule as we complete final permitting and project financing in 2012. Despite the currently challenging market conditions, we have succeeded in raising the significant capital required to perform this work and we are highly encouraged by the response we have received to date on our larger scale project financing activities. Our objective is to continue hitting our project milestones, this being the most effective way of delivering long term shareholder value.”

Patrick Godin, COO, added: “An important part of the 2012 program will be to expand our mine development team based in Longueuil, Mistissini and Chibougamau, Québec. This team has already added considerable mining depth to the company alongside our existing diamond technical team based at our North Vancouver office and plant facility. Our strategy is to build upon our already strong operating credentials, recognizing that strong in-house expertise is an essential element for the successful growth of any diamond mining business”.

To learn more about the 2012 engineering program – CLICK HERE.

CompanyFeed™

NEWS RELEASE.

May 23, 2012: Vancouver, BC – Balmoral Resources Ltd. (Stock Profile – TSXV:BAR) today reported a new discovery of nickel-copper-platinum group metal mineralization on the Company’s wholly owned Grasset Property. Drill hole GR-12-09 intersected a 9.17 metre interval which returned 0.51% nickel, 0.09% copper and 0.50 g/t platinum+palladium+gold. Individual assays returned a high of 1.34% nickel, 0.17% copper and 0.71 g/t platinum+palladium+gold over 0.40 metres from a band of semi-massive sulphide mineralization.

“The Abitibi is home to a wide array of deposit types including nickel producers,” said Darin Wagner, President and CEO of Balmoral Resources. “The discovery of nickel-copper-PGE mineralization at Grasset continues to enhance the potential of our Detour Trend Project and adds another target for follow-up and expansion. With a kilometre long conductor remaining to be tested, and anomalous mineralization of this nature known over 8.0 kilometres to the northwest, there is an opportunity for a nickel-copper-PGE system of considerable scale to emerge across the Grasset and Fenelon properties.”

The magmatic, Ni-Cu-PGE sulphide discovery is hosted in an ultramafic intrusion near its contact with the Sunday Lake Deformation Zone. Mineralization occurs in the form of disseminated pyrrhotite and pendlandite with a pyroxenite body. The mineralized interval is located at, or near, the extreme southeastern end of a 1,000 metre long airborne electromagnetic conductor. The same suite of ultramafic rocks had previously returned anomalous Ni-Cu-PGE mineralization over 8,300 metres to the northwest on the Company’s Fenelon Property. There is little drill testing along the interpreted trend of the ultramafic host unit between the discovery announced today and the historic work noted above. A map highlighting the new discovery can be viewed at: www.balmoralresources.com.

CompanyFeed™

NEWS RELEASE.

May 23, 2012: Vancouver, BC – Goldgroup Mining Inc. (Stock Profile – TSX: GGA & OTC:GGAZF) has had its Change of Soil Use Permit, also known as the “Estudio Técnico Justificativo para Cambio de Uso de Suelo” (“ETJ”), returned to the Company, for its 100% owned Caballo Blanco gold project, from the Ministry of Environment and Natural Resources, also known as the Secretaría de Medio Ambiente y Recurso Naturales (“SEMARNAT”). Goldgroup submitted the ETJ to SEMARNAT, which is the federal environmental regulatory agency in Mexico, on December 16, 2011. The ETJ is evaluated by the regional office of SEMARNAT in Veracruz. Comments by SEMARNAT request that the Company provide further details on the following information for its ETJ application:

• Rescue programs for protected flora species
• Environmental mitigation measures for the project and how Goldgroup will measure its success
• Ecosystems affected by the use of environmental services (water, soil, air, etc.) required for the project
• Economic and social benefits of the project

SEMARNAT stated that Goldgroup is able to resubmit the ETJ application after addressing the above issues. Accordingly, Goldgroup will resubmit the enhanced ETJ application on a timely basis. Within the resubmitted ETJ application, Goldgroup will also include all information on additional land that has been acquired since the time of the initial filing of the ETJ application.

The Company is committed to implementing appropriate designs and measures at Caballo Blanco to ensure the protection of the environment and to create a sustainable mining operation that is expected to benefit all stakeholders, including local and regional communities.

Status of Environmental Impact Statement Permitting Application

Goldgroup requires two independent environmental permits in order to operate the Caballo Blanco project; the Environmental Impact Statement (“EIS”) and the ETJ. The EIS and ETJ are required for the commencement of construction at Caballo Blanco.

The EIS application was submitted by Goldgroup to SERMANAT on December 15, 2011. Formal comments from SEMARNAT in regards to Goldgroup’s EIS application were received by the Company on March 13, 2012. The comments requested more information on risk mitigation, along with environmental protection and rehabilitation of several aspects of the proposed mining operations. In proactively addressing all of the comments from SERMANAT, Goldgroup will continue to ensure that the best interests of all stakeholders are factored into the development process of the project.

To read more – CLICK HERE.

CompanyFeed™

The austerity that was forced on Greece has resulted in a backlash from Greek voters. The two ruling parties in Greece, which had traded power back and forth for 50 years, only received 33% of the vote between them. And now, no coalition can be cobbled together so the Greeks are going back to the voting booths.

Based on the early polls, it is probable that a coalition will form that will reject the enforced austerity. Which means that Greece will not get the funds it needs which will be the likely catalyst for an exit from the eurozone.

A few years ago the concern in Europe was that there would be “contagion” risk resulting from a Greek default. On a regular basis European politicians were pronouncing that Greece would “not be allowed to default”. As you know, Greece first defaulted in March, 2012. For the MiningFeeds related article: Did Greece Just Default? – CLICK HERE.

Now that Greece has defaulted, the politicians are now saying that “no other country will need to default” and “we prefer if Greece stays in the euro area”.

But there are bigger problems. Today, economic data confirmed that Spain is back in recession and reports of an outflow of deposits from recently nationalized Bankia. Spain’s El Mundo newspaper reported that customers at troubled Bankia had taken out more than 1 billion euros over the past week.

What’s Next?

Mario Draghi, the Italian president of the European Central Bank (ECB), created €1 trillion euros to help fund European banks. Through the LTROs (long-term refinancing operations) European banks in turn bought their respective country’s sovereign debt. The “relief” lasted about a month.

The last few weeks have presented yet another crisis, at least as large as the last one, as Greece’s exit from the euro seems imminent while Spanish and Italian bonds rates are on the rise.

John Mauldin writes, “It is the world’s worst-kept secret: Germany does not want inflation but wants to abandon the European Union even less. And as we will see, the eurozone simply does not have enough money to keep itself together without massive ECB intervention.”

For an excellent interview whereby Mauldin looks at what’s next for Europe, and also the United States, watch the embedded video below.

For six days and seven nights the citizens of ancient Rome watched helplessly as their city burned. The massive fire that consumed Rome in 64 A.D. spread quickly. After it was over, 70 percent of the city had been destroyed.

“Of Rome’s 14 districts, only four remained intact. Three were leveled to the ground. The other seven were reduced to a few scorched and mangled ruins,” wrote the contemporary Roman historian Tacius. Half of Rome’s population was rendered homeless by the fire.

As is typical in such mass tragedies, rumors began to circulate. Many speculations were directed toward Roman emperor Nero who, it was rumored, calmly played his fiddle while Rome burned.

The idea that Nero fiddled while his city burned is peculiar – the violin wasn’t invented for another 1,500 years. To the contrary, when news of the fire reached him, Nero rushed back to the city from his palace in Antium on the outskirts of Rome and took immediate and expansive measures to provide relief for his citizens.

Today, Bloomberg reported from two unnamed euro-area officials that the ECB is conducting a comprehensive review of all its policy tools and has no immediate plans to increase stimulus even as European and global market turmoil mounts.

According to the official, the review as mandated by the central bank’s six-member Executive Board intends to assess the effectiveness of its measures including the bond-buying and long-term refinancing operations. The timeline for the review is scheduled to be completed at some point after the newly announced Greek elections set for June 17th or in July.

The officials spoke to Bloomberg on condition of anonymity because the deliberations are private. A third official also said the ECB may not consider taking any further policy action until July, and that the bank sees current market tensions as a way of focusing politicians’ minds on reform efforts.

From the desk of Reuters, today the European Central Bank has also stopped providing liquidity to some Greek banks as they have not been successfully recapitalized. Meanwhile, Greek’s Central bank head George Provopoulos said yesterday that Greeks have withdrawn as much as 700 million euros from Greek banks and the situation could get worse, according to the transcript of the president’s meeting with party leaders on May 14th.

The situation in Greece is becoming eerily similar to the Argentinian financial crisis of 1999-2002 which climaxed with a run on the banks, large-scale rioting in Buenos Aires and a massive devaluation in the country’s currency.

ECB President Mario Draghi said today that while the council’s “strong preference” is that Greece stays in the euro area, it won’t compromise on its principles to prevent an exit. For now, Draghi is comfortable playing his fiddle – perhaps a prelude to Greece as his sacrificial lamb.

NEWS RELEASE.

May 16, 2012: Vancouver, BC – Goldgroup Mining Inc. (Stock Profile – TSX: GGA & OTC:GGAZF) announced that the technical report on the updated mineral resource estimate on the Cerro Colorado gold mine titled “NI 43-101 Technical Report, Cerro Colorado Gold Mine, Sonora, Mexico” (the “Technical Report”), effective February 29, 2012 and dated May 14, 2012, has been filed on the Company’s website and on SEDAR in compliance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects(“NI 43-101”) requirements.

The Technical Report outlines the Company’s mineral resource estimate at the Cerro Colorado gold mine, establishing measured resources of 14,000 ounces of gold, indicated resources of 30,000 ounces of gold and inferred resources of 56,000 ounces of gold using a cutoff grade of 0.20 g/t Au.

For the Measured and Indicated resources tables – CLICK HERE.

CompanyFeed™

According to Metals Economics Group’s (MEG) recent Strategic Report, the 2011 dollar volume of significant ($25 million minimum) acquisitions totaled $47.4 billion—down 4% from 2010’s $49.3 billion. In the context of an ongoing European economic crisis and lower growth expectations for China, 2011’s total spending signifies the mining industry’s relative confidence in the stability of metals prices and demand, after a period of significant strategic retrenchment and caution following the worldwide recession and sharply lower metals prices that began in late 2008 and lasted into early 2010.

Data analyzed from MEG’s Acquisitions Service shows copper deals dominated base metals acquisitions spending, accounting for the lion’s share of the 47% increase in the total base metals (copper, nickel, and zinc) spending of $29 billion in 2011. In contrast, gold acquisition spending slipped 39% year on year, to a total of $18.4 billion.

Considering the 50 base metals transactions, acquisitions with primary assets in Latin America accounted for 62% of the acquired in-situ value in 2011. Assets in the Australia-Pacific region accounted for 14% of the total, Africa 12%, Asia 5%, North America 4%, and Europe 3%. The acquired value of reserves and resources in 2011 base metals transactions totaled $697 billion, including 68.5 million mt of copper.

Of the 54 primary gold transactions, Africa was tops with 12 deals containing $77 billion of in-situ value—33% of the 196.8 million oz acquired globally. It was followed by Asia with six transactions accounting for 21% of the total.

In U.S. dollar terms, the total price paid in 2011’s primary gold transactions fell 38% compared to 2010, and the quantity of gold acquired slipped 11.5%. The most active acquirers by value in 2011 were Canadian gold companies with 15 transactions out of the total 54. Chinese companies were next with seven deals.

From the article entitled, “Significant Gold and Base metals Spending Totals $47.4 Billion” by Metals Economics Group. Metals Economics Group (MEG) is a trusted source of global mining information and analysis. With three decades of comprehensive information and analysis, MEG has an unsurpassed level of experience and historical data. The information provided herein has been provided to MiningFeeds.com by the author and, as such, is subject to our disclaimer: CLICK HERE.

NEWS RELEASE.

May 15, 2012: Vancouver, B.C. – Oracle Mining Corp. (Stock Profile – TSX:OMN & OTCQX:OMCCF) announced assay results of a new mineralized zone from its ongoing drilling program at the Oracle Ridge Copper Mine, located in southern Arizona.

Drill hole ODH-24 encountered an interval of 17.5 feet of 5.81% copper and ODH-27 encountered an interval of 26.0 feet of 3.27% copper. In addition, the Corporation believes ODH-26, with an interval of 87.5 feet of 2.32% copper, is important as it indicates a large-scale irregularity in the intrusive/carbonate contact. Abrupt changes in the orientation of the intrusive/carbonate contact have been seen in other areas that host major skarn bed mineralization.

The new target area was indicated based on mineralization that is exposed in the ramp connecting the 5900 and 6400 haulage ways. As there is no historic drilling recorded in this area, these intersections represent a new mineralized zone that is not included in the historic resource base. To review the intervals obtained from this phase of the drilling program – CLICK HERE.

CompanyFeed™

Most of the dollars created in the stimulus programs (QE 1 & 2) after 2008 did not make it into circulation to be spent by small businesses (the largest job creators) or consumers (the driver of the US economy). They’re either parked at the Federal Reserve or the world’s central banks as foreign reserves (many countries hold US dollars in their foreign reserve accounts, China has trillions of US dollars, most of these dollars will never make it into circulation).

Currently, the monetary base is not expanding and money is not circulating – the velocity of M2 money supply in the United States is at a record low. This is fueling deflationary fears. Add in the multiple fears of a China slowdown, the EU imploding and the US slipping back into recession, we can see why commodity prices are falling.

Lately, gold is not responding to the U.S. dollar’s strength or weakness as much as it responds to the increase in the US monetary base and the decline in the velocity of money.

• Are the Federal Reserve and the world’s central banks done with increasing the global monetary base?

• Have they given up in their attempts to revive credit and fuel another economic “spend your way to riches” prosperity bubble?

• Is austerity here to stay?

Consider This

• Governing parties are suffering major losses in election after election as anti-austerity parties make gains.

• Unless continuously “fed” with new credit the global financial system will implode, when confronted with this possibility governments always respond in the same way – by printing more money.

• The world’s governments have unlimited printing presses.

• France has elected a socialist leader who will likely demand an end to austerity.

• The European Central Bank has accepted that growth should take precedence over balanced budgets.

• German Chancellor Angela Merkel’s CDU party won only 31% of the vote in Scheleswig-Holstein, the party’s worst showing in 50 years. Merkel’s hard line austerity programs, so unpopular in the rest of Europe, are increasingly being viewed with skepticism at home in Germany.

• Greek voters just delivered a resounding anti-austerity election verdict – more than 50 per cent of them cast votes for parties opposing public spending cuts. If there’s another election in Greece this summer there is a high probability of Greece defaulting and exiting the Euro.

• Federal Reserve chairman Bernanke has made it clear he’ll step in with more easing if necessary.

Assessment

Someone hit the pause button on the global printing press to take stock, fix methods and do a review of the success achieved to date. Global markets are in a free fall and investors are running for cover. How long before the printing press resumes?

On January 25, 2012, Strike Gold changed its name to Strike Graphite (Stock Profile – TSXV: SRK). In doing so, the company communicated quite clearly to the investment community that Strike had found its focus. Strike was an early-mover in the graphite sector and was able to secure three projects, two in Saskatchewan and one in Quebec, before a flood of junior miners arrived on the scene.

With three projects on the books Strike Graphite was still missing something – a Chief Executive Officer – but in early April the upstart company found their man when Blair Way was appointed to the position.

Blair Way is not a serial entrepreneur. On the contrary, he has held senior management positions at major and mid-tier mining companies. Most recently he served as Vice President Project Development for Ventana Gold – a Vancouver-based gold mining company advancing projects in Colombia that was acquired by Brazilian billionaire Eike Batista for $1.4 billion. Prior to Ventana, he served as President and Project Director, Oceanagold Philippines, overseeing the construction of the Didipio gold copper project; and, earlier in his career served as Project Director for BHP Nickel projects.

We connected with Mr. Way this morning after the release of another encouraging drill hole from Strike’s Simon Lake graphite project in Saskatchewan to get his take on Strike Graphite and the graphite sector now that he’s had a few months to find his footing.

Blair, thanks for joining us, you are relatively new to Strike Graphite – what drew you to an early stage company?

I was attracted to Strike Graphite because of the brownfield nature of these projects and the opportunity to utilize my development skill-set to fast track the projects and grow the company rapidly. I see graphite as a race to production and that is the environment I thrive in.

For those who are not familiar with graphite – please tell our readers about the sector and some of the key drivers.

The main drivers for graphite are grain, grade and metallurgy. These are the key aspects of a graphite deposit. It must be large flake and high-grade to command the best pricing in the market. The metallurgy must be straight forward. There are some deposits that have more complicated metallurgical processes, not to say any are as complicated as a nickel or zinc deposit, but the more straight forward the process the lower the cost of production.

The current graphite market, primarily for steel, refractory, lubricants and auto parts consumes in the order of 1.2 million tons per annum with the majority of the production from China and India. The largest mine is under 40,000 tons per annum which is quite a small operation in terms of an open pit mine with grades in excess of 10%.

The estimated demand growth over the next 8 years is in excess of a further 800,000 tons per annum. At 40,000 tons per mine that is 20 mines coming on stream in the next 8 years. That is a tall order. So additional high-grade production must come online to meet this growing demand and command the best market pricing.

Graphite emerged as the new “belle of the ball” of the junior resource markets – some say taking the place of Rare Earths – what do you make of this comparison?

I can see how people make this comparison, but it is only partially true. The graphite space is getting a lot of attention these days which is similar to the Rare Earths of a few years back as the market sees it as a new emerging metal, but that’s not true. Graphite has been around for decades and has only just recently commanded attention due to some of the emerging uses for graphite.  This attention is really where the similarity ends.

Graphite is a much better understood market with strong current and emerging uses. It is much easier to find in large quantities and, metallurgically speaking, it is immensely more simplistic. Graphite tends to be relatively shallow occurring so it is amenable to very simple open pit mining. Processing is by known floatation technology to achieve the most effective concentration. Further concentration is also achieved by existing technology to tailor it to the end user as required.

All this lends itself to a very cost effective mine and plant. For example, a billion dollar gold deposit would be lucky to develop a mine and processing facility for under $300 million after spending in the order of $30 million to get it to feasibility stage. In comparison a billion dollar graphite deposit and associated mine and processing facility could get through feasibility study and in production for under $100 million. If you compared this to rare earth, nickel or zinc deposits the numbers are even more favorable for a graphite business model.

Today you announced the second drill results from Strike’s Simon Lake project in Saskatchewan – tell us about the project and the recent results.

We are very pleased with our preliminary drill results. Our historical data indicated to us that we could encounter the grain, grade and metallurgical attributes required for a graphite discovery. The base metal exploration drilling undertaken on the property in the 70’s and the associated drill logs enabled us to focus our EM survey which identified a 24 kilometer long conductor which we are currently drilling key targets on. The preliminary data from our drill holes continue to reinforce our theory and we are very excited to see our lab test results in the coming weeks.

You have two other projects, Deep Bay East in Saskatchewan and the Wagon property in Quebec – are you equally excited about the potential of these projects?

These projects are equally exciting and we are undertaking ground work on these properties also. We will work towards defining focused drill programs for the fall on all our properties and depending on the results from this summer’s work we will then focus our resources on those that have the greatest potential with the aim to achieve an NI43101 resource by early 2013.

You recently announced a $3 million financing at $0.30, what milestones do you hope to reach with the proceeds once closed?

These proceeds will enable us to continue on our aggressive exploration programs on our three properties to move them toward a resource.  Our next milestone is our NI 43-101 resource.  It is a great time to be in this sector and we believe our brownfield projects enable us to be a front runner in this race to production.

Disclosure: at publication date Matthew Earle, Editor of MiningFeeds, owns shares of Strike Graphite and Strike Graphite is a client of MiningFeeds.

NEWS RELEASE.

May 10, 2012: Vancouver, B.C. – Oracle Mining Corp. (Stock Profile – TSX:OMN & OTCQX:OMCCF) announced the hiring of international mining consultants SRK Consulting (“SRK”) and KD Engineering (“KD”) of Tucson, AZ to deliver a Feasibility Study and feasibility-level engineering design for the Oracle Ridge Copper Mine project near Tucson, AZ.

SRK will author the Feasibility Study and KD will complete the feasibility-level engineering of the processing facility and minesite infrastructure as well as contribute to the Feasibility Study.

SRK is an independent, international consulting practice that employs more than 1,200 professionals internationally in more than 44 offices on six continents and provides focused advice and solutions to clients, mainly from earth and water resource industries. For mining projects, SRK offers services from exploration through feasibility, mine planning, and production to mine closure. Among SRK’s 1,500 clients are most of the world’s major and medium-sized metal and industrial mineral mining houses, exploration companies, banks, petroleum exploration companies, construction firms and government departments. Oracle Mining will draw on the expertise of SRK professionals based in Colorado and Arizona for the Oracle Ridge Copper Mine project Feasibility Study.

In addition, Oracle Mining is pleased to announce the appointment of Mr. Kevin Francis, P. Geo, as the Corporation’s Vice President of Technical Services to work with SRK and KD and lead the completion of the Feasibility Study and engineering and design of the processing facility and mill for the Oracle Ridge Copper Mine project.

“Kevin Francis’s primary focus will be to oversee and deliver an NI 43-101-compliant Feasibility Study for the Oracle Ridge Copper Mine targeted for completion in the second half of 2012,” said Mr. Doug Nicholson, CEO of Oracle Mining. “In addition, Kevin will add significant value to shareholders as he oversees technical functions relating to new opportunities and project evaluation.”

To read the complete news release – CLICK HERE.

CompanyFeed™

NEWS RELEASE.

May 10, 2012: Vancouver, BC – Strike Graphite Corp. (Stock Profile – TSXV: SRK) provided an update on exploration activities at the Simon Lake Property, located in north-central Saskatchewan.

To date, the company has completed drilling two diamond drill holes within the historic Simon Lake trend, and has commenced drilling of a third drill hole located along the same conductive trend approximately 10 km to the southwest of Simon Lake. The company is pleased to announce that continued success has been achieved; the second drill hole of the program has encountered a 148.7-meter Graphitic zone.  Photos of the core will be uploaded to the company website or may be viewed at the following link: www.strikegraphite.com/core-photo-gallery.html

Highlights:

•    Hole SL-12-001 encountered three graphitic intervals beginning at the start of bedrock;
•    Hole SL-12-002 encountered a 148.7 metre graphitic zone.

Recently completed drill hole SL-12-002 encountered approximately 132.5 metres of graphite bearing rocks over a 148.7 metre zone between 72.1 and 220.8 metres depth. Seven individual graphite-bearing intervals range between 5.0 and 40.5 metres wide; and are separated by narrower intervals of trace-to-non-graphite bearing intervals of between 0.9 and 6.0 metres.

To read the full news release – CLICK HERE.

CompanyFeed™

NEWS RELEASE.

May 4, 2012: North Vancouver, BC – Stornoway Diamond Corp. (Stock Profile – TSX: SWY) announced that on May 3, 2012 it entered into a $20 million unsecured debt facility with the Fonds de solidarité FTQ, the Fonds régional de solidarité FTQ Nord-du-Québec, S.E.C. (collectively, the “Fonds”) and Investissement Québec, through its indirect wholly-owned subsidiary Diaquem Inc. (collectively with the Fonds, the “Lenders”). The proceeds of the facility shall be used to finance pre-development work at the Renard Diamond Project, including the initiation of detailed engineering, the ordering of long-lead mining equipment and the expansion of Stornoway’s Quebec based mining team. The loan has been provided 75% by the Fonds and 25% by Diaquem.

Matt Manson, Stornoway’s President and CEO, stated: ”This financing announcement is another important milestone in the development of Quebec’s first diamond mine. This loan will provide Stornoway with good funding flexibility as we begin the ramp-up to the capital programs anticipated at Renard in 2013 and 2014. We are particularly pleased to be able to announce the support of the Fonds in the development of the project, and the continued support of our major shareholder, Investissement Québec. Combined with our recent equity financings, Stornoway has now raised a total of $40 million since March in difficult market conditions. These funds have been raised in a ratio of 50% debt and 50% equity that is respectful of shareholder value. Our objective is to continue to move Renard ahead on schedule as we work to complete project permitting and senior project financing.”

To read more – CLICK HERE.

CompanyFeed™

According to the Mexican Mining Chamber, in 2010 revenue mining and metallurgical production (US$13.16 billion) surpassed the revenue generation of Mexico’s tourism industry and established mining as the country’s second most productive sector after oil and gas. The growth of the sector has led to increased exploration and the opening of new mining operations.

In 2010, Goldcorp’s (Stock Profile – TSX:G & NYSE:GG) open pit Peñasquito mine, Mexico’s biggest project, began operations. Over a 22-year life, Peñasquito is expected to produce an annual average of 500,000 ounces of gold, 28 million ounces of silver, 450 million pounds of zinc and 200 million pounds of lead.

In addition to Peñasquito, the Buenavista Cobre copper mine owned by Grupo Mexico SAB de CV (Stock Profile – OTCPK:GMBX) reactivated its operations and reached 100% of its production capacity in 2011. The current annual capacity of  the mine is 180,000 tons.

Projects having been moving forward despite the fact that the resource markets have been staring a bear in the face for the past 12 months – perhaps we should follow David Morgan’s advice and “accumulate during a soft period and balance your portfolio into issues with good liquidity, good management and good prospects”.

Although Morgan states, “I can make a strong case that mining equities particularly are your best value right now”, he reminds us that no one can call a market perfectly. With numerous development projects underway, we take a look at three mining companies in Mexico that are worth keeping an eye on as we navigate these volatile markets.

Goldgroup Mining Inc. (Stock Profile – TSX:GGA & OTCPK:GGAZF)

2011 was a banner year for Goldgroup. The company completed its earn-in interest for 100% ownership of its flagship project, Caballo Blanco, situated near Veracruz, Mexico. Goldgroup is moving the Caballo Blanco project forward and aims to be in full production in 2013. The company also completed a $40.25 million financing in 2011 at $1.40 per share to fund development expenses.

In addition to 100% ownership of the Caballo Blanco gold project, Goldgroup also maintains a 50% interest in DynaResource de Mexico, S.A. de C.V., which owns 100% of the high-grade gold project San José de Gracia located in the Mexican state of Sinaloa; and, a 100% ownership of the Cerro Colorado gold mine in Sonora, Mexico. The Cerro Colorado mine produced approximately 20,000 ounces of gold in 2011 and is expected to produce approximately 20,000 ounces of gold in 2012.

Goldgroup remains in a flexible financial position with a strong cash balance ($23 million as at December 31, 2011), no debt and no gold hedging. Goldgroup’s pronounced mission is to increase gold production, mineral resources, profitability and cash flow while building a leading gold producer in Mexico.

The company recently released its Preliminary Economic Assessment (PEA) for Caballo Blanco. The project is expected to generate a 66.4% pre-tax internal rate of return and a US$283.8 million pre-tax net present value using a 5% discount rate and a $1500 gold price, and produce 687,000 ounces of gold and 1.3 million ounces of silver, based on the current mineable resource.

According to Keith Piggott, President and CEO of Goldgroup, “As seen in the Caballo Blanco PEA, the project is economically robust both in terms of NPV and IRR, even well below current gold prices. We are moving this project forward responsibly to achieve production within the earliest possible timeframe. We are confident that our team at Goldgroup is capable of achieving the conservative parameters described in the PEA. Furthermore, we intend to continue growing our resources in 2012 as we continue to conduct infill and step-out drilling at Caballo Blanco.”

The company’s Environmental Impact Statement is now expected to be released in the third quarter of 2012. However, it is not unreasonable to think extensions by the Mexican Federal government may occur. Shares of Goldgroup are currently trading at $0.70.

MAG Silver Corp. (Stock Profile – TSX:MAG & AMEX:MVG)

Geologically speaking, if you believe in high-grade epithermal silver vein deposits and carbonate replacement deposit types then MAG Silver has to be near the top of your list. With that said, perhaps the best way to summarize MAG Silver is 728 grams per tonne silver. These are the grades that support the company’s Minera Juanacipio joint venture with Fresnillo (Stock Profile – LSE:FRES) at the partner’s Valdecañas deposit in Zacatecas, Mexico (MAG Silver: 44%, and Fresnillo: 56%).

MAG Silver’s share of the Minera Junacipio joint venture currently translates into 64 million ounces silver (Indicated) and 37 million ounces silver (Inferred).

The relationship with Fresnillo has not always been, how shall we say, friendly. In 2009 MAG Silver successfully defended itself in a proposed $350 million hostile insider takeover bid by Fresnillo. Fresnillo ultimately abandoned its takeover following an adverse ruling by the Ontario Securities Commission in MAG’s application to compel Fresnillo to disclose financial information relevant to its bid.

Since then, MAG Silver has mended fences and built its resource base through the exploration and development of their various projects. Today, the company’s shares are trading at just under $10 per share valuing MAG Silver at roughly $550 million.

MAG Silver has also been building credibility with the investment community – the company is currently covered by four prominent analysts. On March 26, 2012, Canaccord’s Nicholas Campbell issued a “speculative buy” on the company’s stock with a 12 month target of $18 per share. Campbell cites recent developments at the lesser known Cinco de Mayo project, “We believe that the grade and resource potential of the Cinco De Mayo is not reflected in the current valuation for MAG Silver. We previously ascribed a value of $2.50/oz on a potential resource of 20 million ounces of silver to account for the Cinco De Mayo project. Given the results to date, we have increased the potential resource to 50 million ounces of silver.”

Valdecañas and Cinco de Mayo may be the key assets in MAG’s crown but the company also has a number of additional projects in Mexico – located in or near key mineral districts in Mexico. For a comprehensive overview of MAG Silver and their projects – CLICK HERE.

Orko Silver Corp. (Stock Profile – TSXV:OK & OTCPK:OKOFF)

What happens when one of the world’s largest silver producers, Pan American Silver (Stock Profile – TSX:PAA), pulls the plug on your joint venture? Just ask the management of Orko Silver. On April 10, 2012, Pan American advised Orko Silver that it could not meet the April 13th deadline to deliver a feasibility study in accordance with the terms of their joint venture agreement and that its interest in the La Preciosa project would be returned to Orko.

Geoff Burns, President and CEO of Pan American, commented, “After completing almost three years of exploration, engineering and project development work, we have come to the unfortunate conclusion that our continued participation in the La Preciosa project is unlikely to generate a rate of return that meets Pan American’s internal economic hurdle rate. As a consequence, we have decided to relinquish our right to earn a 55% interest in La Preciosa. We thank Orko for the positive relationship that we have developed as partners and wish them good fortune with La Preciosa going forward.”

A few weeks later, Pan American also terminated its option agreement with Canasil Resources (Stock Profile – TSXV:CLZ) on the Carina silver-gold project in Durango, Mexico adjacent to La Preciosa. All on the heels of Pan American’s announced $1.5 billion acquisition of MineFinders. MineFinders, coincidentally enough, maintains significant mining assets in Mexico.

Although Orko Silver’s PR department quickly put a positive spin on the event highlighting that the company “regained 100% ownership of La Preciosa” the company’s stock sold off dramatically from $2.22 per share to a low of $1.05 just two days later. Since then, the company’s stock consolidated in the $1.20 range and recently made a decent recovery back to the $1.70 mark.

From the company’s Preliminary Economic Assessment (PEA) released in June, 2011, La Preciosa contains 113 million ounces of silver and 222,000 ounces of gold (Indicated) from a combined open pit/underground mining operation. We contacted Orko Silver to ask the company’s management a couple of key questions: first “what’s next” and second “what’s next”?

Mike Devji, Executive Vice President of Orco Silver, provided the following corporate update, “After spending roughly $20 million on the development of La Preciosa the way Pan American exited the project was surprising to us. We have $12.5 million in the bank and the message we want to deliver is the project is still one of the largest pure primary silver projects in the world with 159 million ounces of silver (Indicated & Inferred). Going forward, we have an upcoming engineering report and then an independent resource estimate that should be delivered by mid-May. We also hope to have an independent PEA ready by mid-August. Since the project has come back to us we have been contacted by a number of companies – four of which have signed NDAs.”

Undoubtedly, shareholders of Orko Silver are hoping that everything is going turn out in accordance with company’s TSXV stock symbol: “OK”.

For the related article: Mining in Mexico – CLICK HERE.

Mexico is a major producer of silver, gold and base metals. In addition, the country is also a leading producer of celestite, bismuth, fluorite, cadmium, molybdenum, graphite, and manganese.

In the Fraser Institute’s most recent Survey of Mining Companies issued on February 23rd, 2012, Mexico ranked #21 globally and behind only Chile in Latin America for Current Mineral Potential.

The survey factors in current regulations and land use restrictions. Also in the report were the following quotes from company executives:

“We found that the enforceability of the mining policies is implemented in a friendly business oriented manner by the authorities, who perceive the mining investors as developers of communities. Local authorities participate in a joint manner with the federal government to help companies to fulfill the environmental and mining policies for the mining business benefit.” — A consulting company, Associate.

“Straight forward application maintenance procedures.” — An exploration company, President.

“Mexico has good technical people working on the regulatory offices.” — A producer company with more than US$50 million revenue, Manager.

What makes Mexico a good place for miners to do business? In favour of brevity, we’ll summarize what we learned in the following bullet points:

• Historically Mexico is the world’s #1 silver producer with a historic production record of over 10 billion ounces of silver and current annual production of over 100 million ounces a year. Most deposits are high grade and amenable to low-cost underground and surface mining.

• Mexico is a textbook example of “sustainable development”.  For over 500 years mining has been the foundation and an ongoing integral part of the national and local economies. This takes on increasing importance as migration from rural areas to cities increases due to lack of rural employment opportunities. Mines create economic anchors wherever they are found and allow rural residents to maintain well-paid, dignified and productive occupations in their home territories.

• Politically, Mexico is one of the most stable mining countries in Latin America. The country has a favorable tax structures and a strong government commitment to natural resource development. Between 1990-1992, Mexico radically overhauled a nationalistic mining law structure for the expressed purpose of attracting foreign mining investment. This overhaul was accompanied by privatization of virtually all of the Mexican governmental mining holdings and an active retreat from competing with the private sector in mining exploration and development.

• Since 1992, Mexico has demonstrated a strong commitment to increasing transparency in all aspects of government and in the regulation of the mining industry. Foreign companies now compete with Mexican companies on an equal basis.

• Mexico has strong environmental laws and a commitment to uphold them, but effective obstructionist environmental organizations are few. This means that mining outfits who follow the Mexican laws and internationally accepted environmental practices can expect to advance their projects without undue interference.

• Culturally, Mexicans are friendly towards mining at all levels. This means mining exploration companies and developers can generally expect to be welcomed when they enter an area.

• The Mexican mining community is well trained, both at the professional and skilled labour levels, and fully in tune with the latest mining technologies. Specialized and normal mining equipment is readily available with good technical support.

• Mexico remains under-explored. Major discoveries have been made over the last 20 years by application of modern geological and geophysical concepts and methods. Sergio Almazan Esqueda, former Director of the Mexican Mining Chamber states, “70% of Mexico’s territory is likely to contain minerals. Of this 70%, only 30% has been explored.”

But it’s not all mariachis and minerals in Mexico. An important issue for the Mexican mining industry, and the Mexican economy in general, is the escalation of violence since the government’s crackdown on organized crime and drug trafficking. This move has led to insecurity in some regions of the country and, subsequently, a sharp decline in foreign direct investment flows.

Mining projects, which are often in remote areas of the country, have seen an increase in operational costs as higher security services are needed or, in a few situations, been cancelled completely. Canadian mining giant Goldcorp (Stock Profile – TSX:G & NYSE:GG) built a landing strip to fly gold out of its Los Filos mine as the country’s highways become more fraught with “banditos”.

In 2010, it was reported by an executive at top silver producer Fresnillo (Stock Profile – LSE:FRES) that 150 gold and silver bars worth $3 million were stolen from one of their mines in the central state of Zacatecas. In response to these issues, Manuel Luevanos, President of the Mexican Mining Chamber commented, “Unfortunately, where we operate the response from authorities has not been as fast as we would have liked.”

There are also some problematic social situations with respect to semi-communal farming co-ops called “ejidos” and “social justice” NGOs focused on water issues that have hounded companies like New Gold (Stock Profile – TSX:NG & AMEX:NGD), First Majestic Silver (Stock Profile – TSX:FR & AMEX:AG) and Vista Gold (Stock Profile – TSX:VGZ & AMEX:VGZ).  These problems are real and increasing. However, companies that make the effort to develop good lines of communication and integrate themselves in their local Ejido-based communities from the onset tend to enjoy strong support instead of opposition.

Despite challenges, Mexico remains a top destination for mining investment in Latin America. The country offers political and financial stability, as well as a very attractive tax system without corporate taxes and royalties and, most importantly, great geology. Spending on new projects is on the rise and Mexico has received $21 billion in industry investment from 2007 to 2012.

PricewaterhouseCoopers may have summarized mining in Mexico best in their annual, Mining in the Americas – 2012 Report, “Mexico is an important player in worldwide mining. The mining industry continues to thrive with an annual production of US$13.9 billion, contributing to 1.6% of the country’s gross domestic product (GDP). It generates 290,000 direct jobs and 1.5 million indirect jobs.”

For the related articles:

Mining in Mexico – Part 2 – CLICK HERE.

Mexico – 3 Mining Stocks to Watch – CLICK HERE.

In 2010, Mexico overtook Peru in silver production, reaching the world’s top position, with 128.6 million ounces produced. Mexico currently ranks 12th in gold production, and many think the country has a strong possibility of ranking among the top five within the next few years.

In terms of foreign investors, Canada has emerged as the number one source of capital, providing approximately 75% of foreign investment in the Mexican mining sector – the majority of which is targeted towards gold and silver exploration and development.

Today, there are over 200 Canadian mining companies active in Mexico managing more than 500 projects. Most of these companies are active in the exploration phase of mining but Canadian companies are now connected to nearly 50 producing mines. Geographical proximity, the North American Trade Agreement and the TSX Exchange are fundamental components of the Canadian-Mexican mining equation.

One person who crossed the Mexican border well before “the rush” was Dr. Peter Megaw. Peter Megaw is a consulting geologist and President of IMDEX/Cascabel, one of the largest geological consulting groups operating in Mexico. Dr. Megaw has been involved in Mexico, in various geological capacities, for 34 years and is well-known in the Mexican mining industry.

Dr. Megaw is a specialist in Carbonate Replacement Deposits (CRDs) and Epithermal Silver-Gold Vein Deposits and, along with his team, is credited with the significant discoveries at Juanicipio-Fresnillo in Zacatecas; Platosa in Durango; and Cinco de Mayo-Pozo Seco in Chihuahua.

Dr. Megaw is on the board of MAG Silver (Stock Profile – TSX:MAG), Minaurum Gold (Stock Profile – TSXV:MGG) and Candente Gold (Stock Profile – TSX:CDG). Peter also serves as Adviser to Revolution Resources (Stock Profile – TSX:RV), Aurcana (Stock Profile – TSXV:AUN) and Starcore International Mines (Stock Profile – TSXV:SAM).

During a telephone interview, when asked about the success of the Mexican mining industry Dr. Megaw was quick to point that Mexico has some of the best geology in the world, particularly for silver. Of the 14 or 15 billion plus known deposits of silver in the world 8 of these “elephants” are in Mexico.

“Elephant” deposits in Mexico are not limited to silver. The most recent major discovery was in 1997 by Teck (Stock Profile – TSX:TCK.B) and Western Silver as a joint blind discovery.  Western Silver, bought by Glamis, was in turn acquired for $8.6 billion by Goldcorp (Stock Profile – TSX:G & NYSE:GG). The San Nicolas property, which is located in Zacatecas State, Mexico, is a massive sulphide deposit containing copper, zinc, gold and silver. Teck holds a net 79% majority interest in the property.

Has the last “elephant” been discovered in Mexico? Peter Megaw doesn’t think so. The best predictor of future success is the past and with 500 years of successful mining history under its belt Mexico is “still the place to be”.

“There are many greenfield exploration opportunities in Mexico which should result in district scale discoveries. The mining business in Mexico stalled in 1961 when the government passed a law requiring ‘Mexicanization’ (51% minimum Mexican ownership) of many assets including mining by 1976.  At that time the Mexican peso began a series of catastrophic devaluations making it possible to hold large tracts of land with no incentive to actually explore. So for 30 years, until the laws were changed in 1992, the industry lay semi-dormant with annual country-wide exploration at just $50 million per year,” points out Megaw.

Today, billions are being spent annually and mining technologies are being deployed all over the country in areas that have never been explored. Megaw notes, “In 1992 the majors returned to Mexico and in 1994 there was a flood of juniors operating there. But that boom died in 1997 when Bre-X hit the markets. Things didn’t pick-up again until 2003, so for 40 years the exploration activities in Mexico were very much limited to outcrop-based studies.”

What should investors be looking for? Megaw thinks that people are often mistakenly focused on size and metal equivalence, particularly when it comes to silver. “Historically there have been very few successful open pit silver mines. Silver almost never occurs by itself and in many situations cyanidation doesn’t work very well for silver yielding 50-60% recovery rates.”

For silver, his specialty, Megaw says look to high-grade vein systems yielding at least 300 to 350 grams per tonne that can be mined in high volumes underground. In Megaw’s eyes “grade is king” and will allow any mining company to adjust to declining prices or increasing operating costs. Last year alone, operating costs in Mexico have been estimated to have risen by between 15-20%.

High-grade discoveries are out there. Megaw points to Excellon Resources (Stock Profile – TSX:EXN). In 1997 the company discovered the Platosa mine in Durango, Mexico which boasts some of the highest grades of silver ever discovered averaging 909 grams per tonne (27 ounces per tonne).  He also notes that over 800 million ounces of high-grade silver has been found in a previously overlooked part of the famous Fresnillo District.

For the related articles:

Mining in Mexico – Part 1 – CLICK HERE.

Mexico – 3 Mining Stocks to Watch – CLICK HERE.

NEWS RELEASE.

May 2, 2012: Vancouver, BC – Strike Graphite Corp. (Stock Profile – TSXV: SRK) announced that it has intersected graphitic gneisses on the first hole at the Company’s Simon Lake Property.  Thus far, Graphite mineralization has been encountered at the beginning of the hole, with the most abundant intercepts occurring from 10.2 to 23.9 metres (13.7 m interval); followed by a second graphitic zone from 45.7 to 69.5 metres (23.8 m interval).  A third graphitic zone from 93.5 to 102.2 metres (8.7 m interval) was also encountered.  In the field, flake sizes of up to 4 millimetres have been noted*.

Drilling of the first hole will continue until approximately 240 mettres or until passing through a final potential graphitic zone.   Photos of the core may be viewed at the following link: www.strikegraphite.com/core-photo-gallery.html

The current hole, SL-12-001, has verified the historic intervals of graphite in hole E42-5, at the Simon Lake West Target.  Historic hole E42-5 encountered a graphitic biotite gneiss with core descriptions of “disseminated graphite” or “coarse graphite flakes”, with narrower intervals described as “graphite flakes abundant” and “heavy graphite in 6 to 12 inch bands”.

For more information on this news – CLICK HERE.

*Readers should be cautioned that flake size determinations in the field are based on visual measurements from the drill core.  The flake size as reported may be aggregates of individual smaller graphite flakes.  The flake size determination is to be confirmed by optical mineralogy during mineral characterization.

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NEWS RELEASE.

May 2, 2012: Vancouver, BC – Balmoral Resources Ltd. (Stock Profile – TSXV:BAR) reported results from the first 6 holes of its winter 2012 expansion drill program targeting the high-grade Martiniere West Gold Zone on its Detour Gold Trend Project in Central Quebec. The reported intercepts extend the Martiniere West Gold Zone to a vertical depth of 218 metres, a 45% increase in the vertical dimension of the Zone. Visible gold mineralization has also been observed in association with the projected extension of the West Main Zone in hole MDW-12- 57a, the deepest hole of the current drill program, extending the Zone to a vertical depth of 255 metres – a 71% increase. Results from MDW-12-57a and 7 additional holes testing the West Zone remain pending.

Hole MDW-12-50a, the deepest hole reported, intersected the West Main Zone over a downhole interval of 8.24 metres, averaging 4.15 g/t gold over this interval. This intercept included several higher grade sections including 11.40 g/t gold over 0.86 metres, 8.32 g/t gold over 0.45 metres and 29.90 g/t gold over 0.40 metres. Balmoral has now intersected the high-grade West Zone over a strike length in excess of 370 metres and to a vertical depth of approximately 255 metres. The Zone remains open in all directions. Expansion drilling on the West Zone will resume in June.

“With the vertical dimension of the high-grade gold mineralized body at Martiniere West increasing by more than 70% and the Zone remaining open in all directions, the winter 2012 program has been highly successful” said Darin Wagner, President and CEO of Balmoral Resources. “These results, and those previously reported from the Martiniere East area located a kilometre to the east, continue to demonstrate the similarities between the expanding Martiniere gold system and a number of productive gold systems located throughout the Abitibi region.”

For a chart of the relevant results – CLICK HERE.

CompanyFeed™

NEWS RELEASE.

May 2, 2012: Vancouver, BC – Goldgroup Mining Inc. (Stock Profile – TSX: GGA & OTC:GGAZF) reported the appointment of Mr. Chester F. Millar to the Board of Directors. Mr. Millar is considered a pioneer of heap leach gold production and large-scale bulk mining methods and techniques used for mining low-grade gold deposits worldwide. Considered one of the mining industry’s most successful company builders, Mr. Millar was inducted to the Canadian Mining Hall of Fame in 2008, with a career that includes being a founder and former Chairman of such notable large and successful gold companies as Glamis Gold Ltd., Eldorado Gold Corporation and Alamos Gold Inc. Under his strategic direction, these companies were able to grow from junior exploration and early production companies to world class gold producers.

Keith Piggott, President and CEO of Goldgroup, stated, “We are looking forward to the addition of Mr. Millar, a world renowned heap leach gold production expert, to Goldgroup’s Board of Directors. Mr. Millar’s experience, judgment and vast knowledge, particularly in heap leach gold production and mining methods, will be a strong asset to Goldgroup’s flagship development project, Caballo Blanco. His background in the mining industry, including extensive experience in Mexico, will assist in maximizing value of all Company assets and ultimately create value for the Company’s shareholders.”

To read more about Mr. Millar’s appointment – CLICK HERE.

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NEWS RELEASE.

April 30, 2012: Littleton, Colorado – Ur-Energy Inc. (Stock Profile – TSX:URE & AMEX:URG) issued an updated Preliminary Economic Assessment (PEA) for the Lost Creek Property (the “Property”).  This assessment confirms the 45% increase in the Measured and Indicated mineral resources for the Property announced on April 4, 2012, which is the result of recent acquisition of lands immediately adjacent to the Lost Creek Project.

Ur-Energy generated this PEA in accordance with Canadian NI 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) to provide an updated mineral resource estimate for the Lost Creek Property prompted by recent acquisition of adjacent mineral properties.  The new PEA demonstrates the enhanced economic viability of the mineral resources at the Property.  The economic analysis focuses on the resources within the Lost Creek and LC East Projects due to the preponderance of data available there. The economic analysis estimates the Lost Creek Project will generate net earnings over its life, before income tax, of US$283.0 million from the projected production of 7.38 million pounds U₃O₈.

It is estimated that the Project has a calculated Internal Rate of Return (IRR) of 87% and a Net Present Value (NPV) of US$181.0 million applying an eight percent discount rate. The estimated operational cost for the Project is US$16.12 per pound of uranium produced, while the total cost of uranium production including all required capital spending is estimated at US$36.52 per pound.

Wayne Heili, President and CEO of the Company said, “I am extremely pleased with results of Ur-Energy’s latest PEA.  Not only have we been able to significantly expand the mineral resources at the Lost Creek Property, but we continue to demonstrate its economic viability.  Definition of this Property continues to validate its excellent potential as shown through continued increases in compliant resources.”

To read more about today’s news – CLICK HERE.

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