SLAM is processing gold ore from the Maisie gold deposit through the turnkey gold plant at its wholly-owned Menneval gold project in northwestern New Brunswick as reported September 20, 2016.
The turnkey plant comprising of a hammermill and two shaker-tables began operating at full capacity on September 14. The hammermill is grinding the vein material to pass through a 0.8 mm screen and over the shaker-tables at a rate of 1 to 2 tonnes per hour. The tables are separating heavy minerals and visible gold is passing over the tables to produce a gold-bearing concentrate. A similar plant used to test mineral samples from the Maisie gold deposit as previously reported can be viewed by clicking Maisie Gold Video .
SLAM raised total proceeds of $335,680 by placement of 4,394,000 Units and 1,200,667 Flow-Through Units at a price of $0.06 per Unit and $0.06 per FT Unit. The financing was in two tranches that closed July 27 and August 12.
The New Brunswick Department of Energy and Mines has granted a License of Occupation authorizing SLAM to complete test mining and bulk sampling of the Maisie gold vein over a 2 year period. The Department of Environment has approved the removal and processing of the bulk sample. In the initial phase of the program, the Company plans to extract 2,000 tonnes from the high grade gold vein.
The Company proposes to extract the sample from known shoots of high grade gold mineralization at surface using an excavator. These high grade shoots are represented by channel samples ranging from 5.17 g/t gold over 1.0m up to 49.5 g/t gold over 0.45m cut during a 2013 trenching program by SLAM.
The Menneval Gold project was the site of a new gold discovery made by SLAM’s advance scout team in 2012. The initial discovery of the Maisie deposit yielded a bonanza grade chip sample grading 1100 g/t gold over 1.1 m from a trench in 2012. Since then we have drilled 64 holes with grades up to 121 g/t gold over 0.31 m. The deepest intercept to date is a core interval grading 44.53 g/t gold over 0.85m a depth of 30 min hole MG13-63. The deposit is open at depth.
The Company received payments of 300,000 CNX shares and $100,000 cash on closing the sale of the Superjack and Nash projects to Callinex Mines Inc. SLAM to receive an additional $375,000 in cash and/or shares over a 3-year period plus $125,000 in cash or shares upon completion of a Preliminary Economic Assessment on the Nash property. SLAM retains a 1% NSR royalty on the Superjack and Nash projects subject to a buy back of 0.5% NSR for $500,000. The NSR will increase by 0.25% when zinc prices exceed US $1.25 per pound and an additional 0.25% when zinc rises above US $1.50 per pound.
In the first tranche of a $500,000 private placement announced April 19, 2016, the Company sold 400,000 Units and 1,065,000 FT Units at $0.05 each to raise $73,250 as announced May 11, 2016. Each Unit is comprised of one common share and one warrant. Each FT Unit is comprised of one common share and one-half warrant. Each whole warrant entitles the holder to acquire one common share at a price of $0.06 for a period of 24 months, expiring on May 11, 2018. The Units are subject to a hold period and cannot be traded until September 12, 2016.
This follows a similar offering that closed March 21 when SLAM announced completion of $235,000 by placement of 2,200,000 Units and 2,500,000 FT Units. Directors of the Company subscribed for an aggregate 1,600,000 FT Units and 1,400,000 Units.