Probe Mines Ltd - TSX.V:PRB

News and comment on investment in mining
Forum rules
Please read: 24Knews Forum Rules

Probe Mines Ltd - TSX.V:PRB

Postby Rosco » Sun Oct 23, 2011 3:24 pm

Probe Mines Ltd - TSX.V:PRB

Image

Probe Mines Limited is a well-funded, Canadian base and precious metal explorer on the cusp of significant growth in 2011. Led by an experienced management team, the Company has a portfolio of high quality projects in a number of Canada's most important exploration plays. The Company's strategy is to aggressively explore its key assets to maximize shareholder value.

The Company's current focus is the Borden Lake gold project located near Chapleau, Ontario. It is a significant, new gold discovery in a previously unexplored area located within one kilometre of a major highway. The project has the potential for a low-grade, bulk tonnage deposit, potentially suitable for open-pit mining.

Country - Canada / Ontario

Shares out - 56,670,980 - Fully Diluted 71,869,611 FD, April 21, 2011

Cash Position - C$22M, Oct 21 2001 - no debt.

Financials - View Filings

Website - http://www.probemines.com

Latest company presentation - http://www.probemines.com/i/pdf/ProbeMines_Presentation_2011-10%20FINAL.pdf

Assets
Borden Lake
New gold discovery near Chapleau, Ontario.
On 23rd August 2011 Probe produced an initial reserve estimate 43-101 for the Borden Lake Gold project of 3.75Moz Au inferred at an average grade of 0.69g/t and 5 Moz Ag inferred. The discovery cost per oz Au only was approximately C$1 !!!!!.

Black Creek Chromite Deposit
NI 43-101 resource estimate completed.

Goldex Royalty
5% net smelter royalty on a portion of Agnico Eagle’s Goldex Mine.

West Timmins Gold Project
JV with Lake Shore Gold, drilling completed, results pending.

This is the link to a recent free Jennings report - http://www.jenningscapital.com/index.php/research/recent/
You have to register but it's worth the effort.

There is quite a buzz on the Canadian boards about this play. Worthy of a look IMHO.
Last edited by Pixel8r on Sun Oct 23, 2011 6:41 pm, edited 1 time in total.
Reason: edit to place image on hosting service
User avatar
Rosco
New Drachma Holder
New Drachma Holder
Progress to next rank:
72%
 
Posts: 36
Joined: Fri Jun 24, 2011 8:58 am

Re: Probe Mines Ltd - TSX.V:PRB

Postby Rosco » Mon Oct 24, 2011 1:03 pm

I should have mentioned that the share price as of today is C$2.23

And here's the charts - Daily Weekly

Who knew…there was gold in Chapleau?
By: Trish Saywell
2011-10-13

In the eleven years David Palmer has spent working in remote, infrastructure-challenged corners of northern Ontario and Quebec the geologist has never had the luxury of stepping out of his hotel and being on site within fifteen minutes. Until Borden Lake, that is.
A logging road directly off provincial highway 101 takes Palmer straight to his drill site, about 12 km outside of the tiny town of Chapleau. “It’s the best access I’ve ever had,” the president and chief executive of Probe Mines (prb-v) told a group of mining analysts, investors and investment bankers on a recent tour of the company’s Borden Lake property. “You can hear the drills from the highway.”

Timmins is two hours to the east, Wawa is one hour and fifteen minutes to the West, and hydropower is just 1 km away. Ironically, though, it is still one of the least explored parts of Ontario.

“There have probably been thousands of geologists passing through here between Wawa and Timmins and yet it’s been so underexplored,” Palmer says, adding that there are four gold mines within a 150-km radius. Trelawney Mining and Exploration’s (trr-v) Coté Lake deposit is about 110 km to the southeast, Barrick Gold’s (ABX-T, ABX-N) past-producing Renabie mine is about 70 km to the northwest, Prodigy Gold’s (PDG-V) Magino mine is about 100 km to the west-northwest, and Lake Shore Gold’s (LSG-T) Timmins mine is about 140 km to the northeast.
Borden Lake lies within a folded belt of Timiskaming-age (2.6 billion-year-old) meta-sediments in the Kapuskasing Structural Zone (KSZ), an area that Palmer says has been overlooked for generations but which he believes is likely to serve up the next big gold discovery in the province.
“The Kapuskasing Structural Zone is an area no one has ever thought to look at,” Palmer continues, reasoning that prospectors and geologists were more confident looking at the lower metamorphic grade rocks in the greenstone belts of Timmins and Kirkland Lake.

“The only logical reason I see for the lack of exploration in the Kapuskasing Structural Zone (KSZ) is the higher metamorphic grade,” he explains. “It is possible that people feel the higher pressure-temperature regime is destructive for primary gold deposits. Perhaps Borden Lake was preserved because it is at the very end of the KSZ and wasn’t subjected to these pressure-temperature conditions.”
Whatever the reason, it turns out to have been a “blessing in disguise” because there has been so little work done in the area and Probe has a blank canvas on which to work.
The project came out of left-field. In the fall of 2010 Palmer and his team of geologists were busy working on the company’s 100%-owned Black Creek chromite deposit, about two hours by air north of Thunder Bay. The deposit lies in the Ring of Fire area of the James Bay Lowlands and is sandwiched between Cliffs Natural Resources’ (clf-n) two large chromite deposits, Black Thor and Big Daddy. But when assay results from Borden Lake started trickling back in November 2010 showing gold mineralization in every drill hole, Palmer shifted gears, making Borden Lake his No. 1 priority.

In less than nine months the company completed a National Instrument 43-101 compliant resource and plans to update it before the end of the year. The new resource should confirm what Palmer already suspects: That Borden Lake has excellent potential to host a surface, low-grade, bulk tonnage deposit. So far the deposit has been traced over an area stretching 1,700 metres in length and up to 200 metres in width and running to a depth of up to 340 metres.
Indicated resources currently stand at 11.61 million tonnes averaging 0.8 gram gold per tonne for 305,000 ounces of contained gold, with inferred resources adding 169.32 million tonnes averaging 0.69 gram gold for 3.76 million ounces of contained gold.
The deposit also contains 323,000 ounces of silver in the indicated category and 5.02 million ounces of silver in the inferred, both at an average grade of 0.9 gram silver per tonne.
The initial resource estimate was based on a 0.3 gram per tonne cut-off grade, excluded three satellite gold zones, and was based on just 78 diamond drill holes.
Probe has completed a total of 115 holes and since January 2011 has drilled more than 25,000 metres with two drill rigs. The company is in the queue for more rigs.
The deposit is an outcrop discovery under thin overburden that comes to surface all along strike. Mineralization is characterized by higher grade zones occurring within a broad, lower-grade envelope hosted by meta-sediments.
“Most gold deposits don’t show up in airborne electro-magnetic (AEM) surveys but this one does,” Palmer explains. “The induced polarization (IP) signature is distinctive too.”
“You’ll see the sulphides if you look for them but they don’t jump out at you,” he adds while showing core to his visitors.
Understanding the deposit and how it came to be is proving a challenge, however.
What Palmer does know is that he has a clean sulphide deposit without base metals, arsenic or arsenopyrite. The deposit demonstrates thick planes of mineralization without folding or faulting and without quartz veining. There is little displacement and the same lithologies exist all along strike, while the mineralization is very consistent on strike and at depth. “It doesn’t waffle-the mineralization is consistent throughout,” he says. “We can pick up a high-grade zone right through the deposit and that’s one reason why Micon said we didn’t need to cap the grades.”

But Palmer and his colleagues are still scratching their heads about the mineralization and concede they can’t take anything for granted. That’s why the company is blanketing the ground with geophysics. “You have to sample everything because sometimes it surprises you,” he explains. “We recently found gold in the granite, which was unexpected.”
Palmer is quick to admit that he has a lot to learn about how the mineralization got there. “There are no obvious hydrothermal systems that brought it in; the porphyry isn’t mineralized,” he says. “It’s biotite gneiss, pyrrhotite, pyrite, and amphibolite in a meta-sedimentary belt. There’s no clear correlation between the gold and anything.”
“From the point of view of gold exploration, you’d never put these rocks in a sample bag,” he adds. “It’s a puzzle. But the bottom line is it’s there and in the numbers you need to produce it.”

Palmer is hoping metallurgical results due out soon will provide some clues.
“If it is pre-metamorphic it should be re-crystallized,” he reasons. “These rocks go down 20 km so everything was re-crystallized and we’re hoping the gold was re-crystallized too, which should result in a coarser grain size and aid in recovery.”
Mark Raguz, an analyst at Pinetree Capital, which holds some of Probe’s stock, noted that results from the initial metallurgical test work “should be a revaluation catalyst for the stock if the grind size and recovery are positive.”
In the meantime Probe is pressing ahead with grassroots exploration and in recent months has been getting between 0.3-3.4 grams gold per tonne from grab samples taken near its outcrop discovery.
“There’s a lot of potential on the belt for new targets,” Palmer says, explaining that Timaskaming sediments often show a spatial association with large-scale Archean lode gold deposits such as those found in the mining camps of Timmins, Kirkland Lake, Hemlo and Red Lake. “Between now and Christmas we’re going to make some headway on exploration.”

In late September Probe released more assay results from its drill program demonstrating significant intervals of gold mineralization including a high-grade zone averaging 10.9 grams gold over 6.6 metres, including a one-metre interval grading 57 grams gold.
As Palmer sees it there are few if any stumbling blocks to advancing the project. Environmental permitting, which is expected to take about a year, is already underway, as are discussions with the three First Nations communities near Chapleau.
Last month Probe signed a memorandum of understanding with the Brunswick House, Chapleau Cree and Chapleau Ojibwe First Nations communities and agreed to negotiate an Impact Benefit Agreement should the gold project proceed to production.
Probe has also committed to training, communication and business development with the First Nations and agreed to give 50,000 common shares of the company to each of the three groups vesting over a period of 18 months.

“We are welcome to do our work here, which is a nice thing,” Palmer says, noting that some of the First Nations are now talking about setting up a company that would offer services to the mining company.
Certainly residents of Chapleau could use the work. In its heyday the small town in Cochrane Township situated inside the Martel Forest boasted three lumber mills and a population of 5,000. Today the town is home to about 2,500 people and just one lumber mill.
One of the big question marks analysts seem to have is whether Probe can successfully acquire all of the land that it will need to take the project forward. While Palmer says the company has “got all the critical pieces” of land that it needs, he admits Probe is still holding discussions with several owners including a private forestry company, which owns between 20 or 30 sq km of land to the east of the project and with whom it has already completed one deal and hopes to negotiate others. But Palmer is all about the soft sell. “We want to develop our relationship with them,” he says, “we don’t want to pressure people.”

But Probe Mines is more than Borden Lake and the company has several other assets that store value including its Black Creek chromite deposit in the McFaulds Lake or Ring of Fire area of northern Ontario.
Black Creek extends into the Black Thor claim owned by Cliffs Natural Resources and due to a small displacement fault is also probably just about one or two hundred metres away from Cliffs’ other large chromite deposit, Big Daddy. (Cliffs acquired junior explorer Spider Resources in 2010 to take a majority interest (now 73.5%) in the Big Daddy deposit and since March is the operator. KWG Resources (KWG-V) owns the remainder.)
“We’re right between the two,” Palmer says. “Interestingly enough the horizon is almost continuous between Black Thor, Black Creek and Big Daddy…Black Creek is essentially the southwest extension of Black Thor. The chromite deposits tend to occur as large lenses, but all seem to form a relatively continuous chromite horizon.”
That’s good news for Probe because Black Thor is the largest known deposit of chromite in North America and has inferred resources of 69.5 million tonnes at a grade of about 31.9% chromite. Big Daddy contains an indicated resource of 23.2 million tonnes averaging 40.66% chromite and inferred resources equal 16.3 million tonnes averaging 39.09% chromite. Black Creek has measured and indicated resources of 8.65 million tonnes averaging 37.41% chromite and inferred resources of 1.6 million tonnes of 37.78% chromite.
Cliffs plans to develop Black Thor first given that it is thicker and closer to surface than the Big Daddy deposit. But it will have to spend hundreds of millions of dollars to build the road, rail and power infrastructure it will need given that the deposits are more than 300 km north of the province’s existing road and rail networks. In a project update earlier this year Cliffs announced that if prefeasibility and feasibility studies prove favorable, production at Black Thor could start as early as 2015.
That makes Probe’s Black Creek deposit even more strategic. “The value of Black Creek is going up as they get closer to building the infrastructure,” Palmer says. “It could be worth somewhere between $100 million and $125 million.”

In August 2010 Probe initiated a shareholder rights plan.
Apart from Black Creek, Probe has an option-joint venture agreement with Lake Shore Gold on its West Timmins (Bristol Township) gold project, which surrounds Lake Shore’s Timmins mine, a million-plus ounce gold deposit and is exploring its Cree Lake gold project in Ontario’s Swayze Belt under option from Mantis Minerals.
Finally, Probe holds a 5% net smelter royalty (NSR) interest on claims covering a portion of the Goldex deposit owned by Agnico-Eagle Mines (aem-t,aem-n) and located just 5 km west of Val d’Or, Quebec. “It’s not something to build a royalty company on but it’s a nice thing to have,” Palmer says.
Agnico-Eagle started production at the underground mine in 2008, bringing Probe’s NSR a step closer to becoming a potential revenue stream for the company. The low-grade, bulk tonnage deposit hosts measured reserves of 1.6 million ounces of gold.
Probe currently trades in Toronto at $1.95 per share within a 52-week range of 69¢ and $2.38 per share. The company has 56.6 million shares outstanding and 71.8 million shares fully diluted.
User avatar
Rosco
New Drachma Holder
New Drachma Holder
Progress to next rank:
72%
 
Posts: 36
Joined: Fri Jun 24, 2011 8:58 am

Re: Probe Mines Ltd - TSX.V:PRB

Postby Rosco » Tue Oct 25, 2011 11:21 am

Probe Mines in Resource Clips from 20th September 2011
http://resourceclips.com/2011/09/20/probe-reports-ontario-gold-assays-as-high-as-10-9-gt-over-6-6m/


Probe reports Ontario Gold Assays as high as 10.9 g/t over 6.6m

Probe Mines Limited TSXV:PRB announced drill results from its Borden Lake gold project near Chapleau, Ontario. Assays include

1 g/t gold over 4 metres
2.3 g/t over 17.7 metres (including 9.2 g/t over 3.7 metres)
0.6 g/t over 100.5 metres (including 1.2 g/t over 17.5 metres)
10.9 g/t over 6.6 metres (including 57 g/t over 1 metre)
0.6 g/t over 93.9 metres
0.8 g/t over 129.9 metres (including 1.8 g/t over 38.3 metres)
0.6 g/t over 113 metres
0.6 g/t over 130 metres.

A drill has been mobilized to test geophysical anomalies identified north of the Borden Lake gold zone by induced-polarization survey. The 100-line-kilometre survey is expected to be completed over the next two weeks. Drilling is expected to start this week.

President David Palmer tells ResourceClips.com, “Borden Lake is a relatively new project for us. It was a grassroots gold project that we picked up basically last year. It has great infrastructure, so it was a very easy project to go in and test. The first results we got back were phenomenal. It was top to bottom gold in that first phase drilling. Within nine months of making that discovery we took it to a resource estimate of 4 million ounces, and we’re still in what we call the Phase 2 drilling. The beauty of Borden Lake is that nobody’s been there before. It’s a brand new gold discovery. It’s not part of the Abitibi. So what we have is a kind of a blank canvas, so the upside potential is really good. We’ve got about 17 kilometres of the belt; the first exploration and discovery on it.

There’s no reason why Probe couldn’t go into a production scenario on Borden
—David Palmer
“These results were maybe a little unexpected. Because we are the first to be drilling here, we’re on a bit of steep learning curve. So we don’t know what to expect. Borden Lake is in that low-grade bulk tonnage model, so to be seeing some of these higher-grade zones is really nice. All we know right now is that it’s big and consistent. Getting these high-grade zones raises expectations, and hopefully we’ll get more.

“I think we’re up to Hole 115, and it’s still open in all directions,” Palmer continues. “Our goal now is to drill to an updated resource estimate and hopefully go into a preliminary economic assessment on it. I’m hoping that very early in 2012 we’ll be at a stage where we’ll be coming out with the scoping study on Borden. But it’s all dependent on drilling. The next two milestones are metallurgy, which I hope to have in October, and follow-up with the economic studies which hopefully will be done—it might be a little ambitious—but I’m thinking January 2012.”

As to production, Palmer says, “There’s always two ways to go: somebody else is going to want it for their production, or we can elevate Probe to the next level and become a producer ourselves. At this stage it’s hard to say. It’ll be dependent on results and the market reaction to them. But there’s no reason why Probe couldn’t go into a production scenario on Borden.

“The infrastructure is very good. This is the easiest project I’ve ever had in terms of access. It’s 12 kilometres from Chapleau, which has well-developed infrastructure. It had three large mills running at one time, so it does have an industrial side to it. We’re a 10-minute drive from rail, and it’s one kilometre off the 101 Highway, which runs between Timmins and Chapleau. So, in terms of infrastructure, there’s very little that needs to be done with Borden Lake, which hopefully will show itself in the economic assessment.”

Regarding progress on Probe’s other properties, Palmer says, “Our next biggest project in terms of value would be our Black Creek project. Black Creek is a discovery we made in 2009, and it now has a measured and indicated resource of about 10 million tonnes of high-grade chromite. It’s very strategic because it sits in between two chromite deposits in the Ring of Fire, Black Thor and Big Daddy. It’s a very nice deposit—most of it is a single, high-grade massive lens of chromite. It comes straight to surface, so it’s probably open-pittable, and because of the high-grade it could be direct-shipping lump ore, which makes it very attractive in terms requiring less infrastructure on site.

“We could continue drilling it to depth, but I think at this point we’re waiting to see what happens in terms of infrastructure in the Ring of Fire. A major hurdle to the Ring of Fire is the lack of infrastructure. So what we’d like to do is see how the other companies are doing and progressing in terms of infrastructure up there.

“But we’re a small company, so our resources are all focused on Borden Lake right now. Borden Lake has done phenomenally well. It’s still early stage and we’ve got a lot left to do on it. But after less than a year after discovery to be at the stage where we have a 4-million-ounce resource, open in all directions, I think it’s really promising. We’ve probably only scratched the surface of the potential on Borden Lake.

“I would say we’re definitely undervalued in the market right now. There’s probably a bit of a disconnect because we have disparate commodities. You never see chromite-gold companies, and I think what happens is people haven’t connected all the assets in the story. In terms of our market value now—it’s almost like you’re getting Borden Lake for free, given the values of the chromite, and that we’ve also got a net-smelter royalty on a part of Agnico-Eagle Mines Ltd TSX:AEM‘s Goldex Mine. So we’ve got these three very valuable assets, and I don’t know if the market values them all together—they seem to be looking at the individual assets when they think of Probe.

“We’re definitely getting the story out there a lot more now,” Palmer concludes, “so hopefully we get traction on that, and people start to realize how undervalued we really are.”
User avatar
Rosco
New Drachma Holder
New Drachma Holder
Progress to next rank:
72%
 
Posts: 36
Joined: Fri Jun 24, 2011 8:58 am

Re: Probe Mines Ltd - TSX.V:PRB

Postby Rosco » Thu Dec 08, 2011 12:26 am

Results from the infill drilling.


Probe Mines drills 100.9 m of 1.1 g/t Au at Borden Lake


2011-12-06 08:29 ET - News Release


Mr. David Palmer reports

PROBE MINES ANNOUNCES ADDITIONAL ASSAY RESULTS FOR ITS BORDEN LAKE GOLD PROJECT: INFILL DRILLING RETURNS UP TO 100.9 METRES GRADING 1.1 G/T AU; OPTIONS GRANTED

Probe Mines Ltd. has received further assays from the continuing drilling program at the company's Borden Lake gold project near Chapleau, Ont. Results for diamond drill holes BL11-106 to BL11-114 were received with intersections of up to 100.9 metres averaging 1.1 grams per tonne gold in infill drilling. Drilling results confirm the continuity of the mineralized zone within the previously announced initial resource estimate and are also successfully identifying the hangingwall satellite zone first noted in the initial resource estimate. A significant zone of satellite zone mineralization was identified in hole BL11-113, grading 1.9 g/t over a width of nine metres. A number of higher grade zones were also identified within the main deposit and include 23 metres averaging 2.1 g/t Au in BL11-106 and 17.8 metres grading two g/t Au in hole BL11-111. Updated plans and sections are available on the company's website.

Drill holes BL11-106 to BL11-113 represent infill holes between previously announced sections while hole BL11-114 was designed to test mineralization at the deeper 350-metre level on Section 700m NW. Holes BL11-107 and -108 were both drilled along Section 150m NW and were stopped in diabase dike without fully testing the mineralized horizon. Hole BL11-114 was lost at approximately 33 metres depth.

The goal of the infill program is to upgrade the classification categories of the previously announced gold resource; expand the resource to depth; and further delineate the satellite zones identified in the resource estimate for inclusion in a future resource update, expected to start in January, 2012.

The gold zone has been identified along approximately 1,700 metres of strike length from surface to vertical depths of up to 401 metres and contains intersections up to 200 metres wide. The recently reported NI 43-101 initial resource estimate for the Borden Lake gold zone estimated, at a cut-off grade of 0.3 g/t Au, an indicated resource of 11,607,000 tonnes averaging 0.8 g/t gold for 305,000 ounces of gold and an additional inferred resource of 169,322,000 tonnes averaging 0.69 g/t gold for 3,755,000 ounces of gold. The resource estimate was calculated using holes BL11-01 to BL11-77. The drill program is currently on hole BL11-131 and the gold zone remains open in all directions.

Highlights from the drilling are presented in the table. Reported drill widths in the tables approximate true widths in these sections. Within the gold mineralized intervals reported here, silver returns average values of up to 1.3 g/t, with individual samples assaying up to 18.1 g/t Ag.



From To Width Au Ag
DDH (m) (m) (m) (g/t) (g/t)

BL11-106 38.0 132.6 94.6 1.0 0.7
including 38.0 51.3 13.3 1.3 0.4
also including 75.5 132.6 57.1 1.3 0.9
also including 93.0 116.0 23.0 2.1 1.3
BL11-107 Hole stopped in diabase
BL11-108 48.8 55.6 6.7 1.0 0.8
Hole stopped in diabase
BL11-109 104.5 204.2 99.7 0.7 0.5
including 164.0 204.2 40.2 1.2 0.8
BL11-110 29.0 138.0 109.0 0.7 0.7
including 55.3 66.1 10.8 1.1 0.5
also including 98.0 116.0 18.0 1.3 1.0
BL11-111 41.5 142.4 100.9 1.1 0.8
including 69.0 104.0 35.0 1.6 0.8
also including 73.2 91.0 17.8 2.0 1.0
BL11-112 244.0 247.0 3.0 1.2 0.6
BL11-112 286.0 328.0 42.0 0.7 0.6
including 297.0 317.4 20.4 1.0 1.0
BL11-113 156.0 165.0 9.0 1.9 0.7
BL11-113 321.0 365.0 44.0 0.4 0.3
BL11-114 Hole lost

Probe has instituted a strict quality assurance and quality control (QA-QC) program for the Borden Lake drill core sampling, with each fire assay furnace batch of 40 samples including two certified reference materials (standards), one blank sample and one core duplicate sample. Quality control guidelines and continuing QA-QC monitoring have been set out and supervised by independent qualified person Tracy Armstrong, PGeo, of P & E Mining Consultants Inc. of Brampton, Ont.

The contents of this press release have been reviewed and approved by Tracy Armstrong, PGeo, and Eugene Puritch, PEng, of P & E.

Grant of options

The company has granted a total of 1.3 million options to purchase common shares of Probe to directors and an officer at an exercise price of $2.60 per share for a period of five years.

David Palmer, PhD, PGeo, is the qualified person for all technical information in this release.

The fold nose results yet the come.
User avatar
Rosco
New Drachma Holder
New Drachma Holder
Progress to next rank:
72%
 
Posts: 36
Joined: Fri Jun 24, 2011 8:58 am


Return to Mining Equity Investment

Who is online

Users browsing this forum: No registered users and 1 guest


cron