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Feature article February 27, 2017:

 

Thermal Fragmentation Mining Technology Ushers in New Era of Improved Economics for Underground Narrow Vein Miners

 

Nippon Dragon Resources Inc.

(TSX-V: NIP) (OTCQB: RCCMF) (Frankfurt: D5O)

 

Nippon Dragon exploits the toughest geology; wasted ounces found in pillars and structures, that would be damaged with conventional blasting, can be surgically removed with Thermal Fragmentation.

 

Nippon Dragon Resources is a hybrid mining and technology company. Trading with a market cap near $15 million, NIP.V is poised for significant upside share price revaluation;

 

Thermal Fragmentation Technology:

  • Patented and disruptive Thermal Fragmentation (TF) technology is a precision tool for creating large openings and extracting ore. TF appears poised to be formally adopted via strategic agreement by at least one, likely more, major miner(s) this 2017.

  • TF a mining method that uses heat in order to shatter/spall the high-grade veins greatly reducing the use of explosives. Extracting only the vein with minimal dilution. NIP.V's process can reduce costs up to 60% for many mines in the world.

 

Gold Mining:

  • Flagship Rocmec 1 Gold property in prolific Abitibi region of mining-friendly Quebec is advanced staged, near-turnkey ready for mining. 479,100 oz gold in all categories (3 gpt cut-off), >$41M invested to date (5 levels + ramp + shafts).

  • Arizona gold project; NIP.V has recently begun contract mining in Arizona using its own thermal fragmentation equipment and mill.

  • The Company has numerous other potential mining opportunities on the horizon looking to partner with its technology.

 

Foundation/Hard Rock Construction:

  • NIP.V's proprietary Thermal Fragmentation technology is attracting lots of attention by major construction engineering firms that understand the value in its application for making large holes in hard rock without explosives. A potentially lucrative deal appears possibly imminent.

 

   

Valuation Commentary: Nippon Dragon Resources Inc. (TSX-V: NIP) (OTCQB: RCCMF) (Frankfurt: D5O) is both a technology company and junior gold miner, its exclusive and patented revolutionary Thermal Fragmentation mining extraction technology appears to be quickly gaining traction and is expected to translate to increased near-term opportunity from a multitude of interested parties. Thermal Fragmentation technology is expected to enter a serious commercialization phase this 2017, after ~8 years of vetting, some mining experts now believe the technology ushers in a new era of improved economics for underground miners chasing narrow gold veins. Nippon's process can reduce costs up to 60% for many mines in the world. The Company's other flagship asset is its 100%-owned, advanced stage, fully permitted Rocmec 1 Gold property in the prolific Abitibi region of mining-friendly Quebec which is near-turnkey ready, with 479,100 oz gold in all categories (3 gpt cut-off), and >$41M expended to date (5 levels + ramp + shafts).

 

View Videos Now

 

Fig 1. (above - left) Thermal Fragmentation Dragon unit with inset of burner.

(above - right) Click to view videos; 1) in operation, & 2) 2D animation of uses.  

  

The Thermal Fragmentation process uses powerful burners, powered by diesel fuel and compressed air, to fragment hard rock. A small (125 mm) pilot hole can be enlarged to just over 1 m in ~8 minutes, making it ideal for targeting gold-bearing quartz veins, resulting in dramatically less dilution, increased productivity, lower costs, increased safety, and less impact on environment.

 

Fig 2. (above) Thermal Fragmentation technology is precise and surgical, extracting only the vein with minimal dilution. Above is seen a cross section of thermally fragmented rock, and sample of fragmented mineralized ore (rocks ranging from 0 to 13 mm in size). Typically the hardest rock will fragment first -- precious metals are found in quartz vein, which is harder than surrounding waste. When the process is started it makes an oval hole and essentially searches the quartz before the waste -- the operator can both see and hear when quartz is being extracted vs. waste.

 

NIP.V's current market capitalization is ~$15 million Canadian (~138M shares outstanding X ~11 cents (~190M fully diluted, with majority of warrants proximal 12 cents)). Its market cap is miniscule relative to the potential and the current share price presents an opportunity for shareholders to reap large returns as recent vetting of NIP.V's technology have yielded highly favorable results -- we expect Thermal Fragmentation to be formally adopted via strategic agreement by at least one, likely more, major miner(s) this 2017. NIP.V has exceptional risk-reward characteristics; Mining MarketWatch Journal sees a sizeable assent in share price near-term. Intellectual property fee revenue potential alone has the possibility for significant share price revaluation; NIP.V is apt to respond in multiples near-term as the inherent value and accomplishments are appreciated by the market.

 

Nippon Dragon Resources currently has Thermal Fragmentation units ('Dragons') in the field and distributors in Canada, Japan, South Africa, USA, and Australia. Its business model is based on intellectual property (IP) fees and rental, however expected upcoming long-term large contracts will likely be strictly IP fees for using the process with clients buying their own equipment. NIP.V is positioned to charge upwards of ~US$25,000/month per unit in IP fees, a deal for the client whose savings compared to old technology would be many multiples. The cost of using a dragon to extract 1 tonne of ore would be a fraction (e.g. drop to under $100/t), enabling the converting of marginal or non-profitable mining to efficient mining.

Fig. 3 (above) Pilot hole to 1x1m typically takes ~8 minutes.

 

Monthly income is projected to increase exponentially:

 

NIP.V is making the rounds of select miners and having its Thermal Fragmentation technology tested/demoed. Mining MarketWatch Journal encountered, in passing, a few engineers of some majors that attended Thermal Fragmentation testing at their mine site in North America recently, the reviews of the technology were spectacular, and the names of the majors these engineers work for would impress you. You will not hear of the names of these companies doing the vetting because NIP.V is prohibited from talking about any of them as they insist on non-disclosure agreements. The precision (within 2 cm) with which NIP.V's technology can extract makes it particularly advantageous for mineralized corridors under 2 meters -- over 80% of known precious metals resources available in the world are in mineralized structures under 2 meters. Anecdotally, Mining MarketWatch Journal notes that last year the COO of a major South African miner said in its quarterly review of production that it was experimenting with Thermal Fragmentation, they didn't mention Nippon Dragon Resources, but we know there is no other company in the world that makes Thermal Fragmentation -- he also said the testing was going well. Interesting enough, NIP.V still has a dragon unit in operation in South Africa. Some of the mines in South Africa have ridiculously high grades of gold (e.g. >100 g/t), the drawback is the veins are narrow underground, however ideal for NIP.V's thermal fragmentation. In such a scenario possible efficiencies may result in several hundreds of thousands of dollars per year per unit in the field -- this will have a major positive impact on their bottom-line. Not only would the South African mine benefit from improved economics, the actual miners themselves would benefit from increased safety, and new jobs in next-generation technology that will increase minelife. Independent mining equipment analysts have estimated that when adoption accelerates there could be demand for 5,000 - 10,000 Dragon units globally. Cost savings are too lucrative to ignore and mining MarketWatch Journal believes a major contract/strategic agreement is imminent, requiring numerous dragon units, each generating IP fees for NIP.V. This will create a tailwind for further steepening of the adoption curve and the share price of NIP.V.

  

Nippon is currently contract mining in Arizona:

 

Nippon entered into a gold production agreement with Au Consolidated inc., an Arizona Company. In Q4-2016 Nippon began Thermal Fragmentation operations on selected high grade narrow surface veins at Au Consolidated Inc.’s property located in Cochise County, near Willcox in the State of Arizona, U.S.A. To date, in excess of 480 six-inch holes were drilled all on the same mineralized structure, and thermal fragmentation operations have begun.

Fig. 4 (above) - Nippon's 100%-owned 75TPD mill is currently being set up on site in Arizona. Originally purchased for NIP.V's Rocmec 1 Gold property, the mill is mobile and can follow production, it can be removed and installed in ~5 weeks.

 

Nippon is using its own equipment and has also moved its portable 75 TPD mill onto the property, set-up is expected to be complete soon. In the interim material is being stockpiled. This mill was originally purchased new by NIP.V in 2008 for its Rockmec 1 gold project, it has a replacement value of ~$5 million. The mill has the capacity of one Dragon unit; one dragon unit has the capacity of ~100TPD (important to note is that precision of Thermal Fragmentation technology can often reduce dilution by up to 5 times, making the 75TPD mill the equivalent of 375TPD).

 

Nippon has a partnership agreement on this Arizona project to produce 3,000 oz of gold. Recovered gold ounces on the first 2,000 oz will be shared on an 80/20 ratio. Nippon will be entitled to 80% of the gold ounces whereas Au Consolidated Inc. will be entitled to 20% of the gold ounces produced. 1,000 ounces of gold recovered will be shared based on a ratio of 60/40. Once gold production reaches the initial target of 3,000 ounces as stipulated in the agreement, a long-term agreement or sale of the thermal fragmentation unit(s) and Nippon’s treatment plant can be negotiated between the parties.

 

Funding for activities was secured by Nippon via a Forward Gold Purchase Agreement with European buyers. Nippon sold 1200 units at US$900.00 per unit, each unit representing one (1) gold ounce. The company intends to complete delivery of the gold ounces to the buyers ~14 months following on site mobilization. Nippon will also take the opportunity to showcase its technology to mining companies that have demonstrated a keen interest in implementing the technology within their own operations.

  

Nippon is advancing its flagship 100%-owned Rocmec 1 Gold Property toward a near-term mining scenario:

 

The Rocmec 1 Gold Project, located in the Abitibi region of Quebec, was acquired in October 2005. It has had >$41M expended on the project to date, ~$33M of that by NIP.V in rehabilitating the property, surface and underground infrastructure, diamond drilling, equipment, drifting and the acquisition of a 75 tpd treatment plant, designed for underground installation.

 

Fig. 5 (above) - Entrance portal to NIP.V's Rockmec 1 mine, inset photo of example of many high-grade veins. The mine is located  35 kilometres west of the town of Rouyn-Noranda and has excellent infrastructure.

 

The property includes a 100 m deep two compartment shaft, an 844 m decline allowing access to five levels (50, 70, 90,110 and 130 m). On these levels a total of 1700 m (drifts and cross-cut drift) were driven.

 

Mineralized structure is characterized by narrow high-grade quartz veins, ideal for Nippon Dragon's thermal fragmentation technology to create an efficient low cost production scenario.

 

The current (2010) resource calc. (with a cut-off grade of 3 g/t.) for measured/indicated stands at 570,300 tons at 6.52 g/t = 119,500 ounces. The resource is close to surface.

 

Table 1 (above) - 2010 43-101 Resource Calc.

 

The global 43-101 of just under 500K oz gold is from 2010 (seen above), the Company has since conducted drilling to build ounces. There is no shortage of additional gold, NIP.V has identified the mother structure (Boucher Structure/Labyrinthe fault, which runs ~3.5 km on the property), and the deposit is open in all directions. As is typical for other miners in the area, they often only keep enough resources on paper to keep their mine operating for 2 - 5 years and simply add to the resource as they go. The Company has since identified robust new gold vein sections not in the 2010 43-101; on each side of its Boucher 1 and Boucher 2 veins there are stellar values averaging near 15 g/t over very long distances, plus ultra-high 'jewelry-box' grades over a couple meters in some places.

 

Tremendous value will be added to the the Company's market cap by performing a prefeasibility study with a new 43-101 that includes the aforementioned new sections near surface and advancing the mine to operating cash flow status. The Company has the technology and the portable on-site ~100TPD mill necessary to ensure a highly economical operation. It is estimated ~$15 million Canadian is all that is needed to facilitate everything needed. Potentially another forward gold sale similar to what it achieved for Arizona would get it meaningfully towards that total, non dilutively. Once in operation at Rocmec 1, not only would the mine serve as a showcase and training location for the technology, the quarterly financial statements should impress.

 

Possibility to re-open closed mines which are deemed uneconomical with conventional mining methods:

 

Rocmec 1 Mine received its "1" to the name because the Company has identified ~45 past operating, now closed, gold mines in Quebec that it believes it can produce at for under US$500/oz with its thermal fragmentation technology. In time, and with the right backing/partners there could be a Rocmec 2, 3, 4, 5.... etc. These historic mines are valued using old technology and could be picked up for next to nothing right now.

 

Thermal Fragmentation technology shows immense promise in the construction sector also:

 

Nippon's Thermal Fragmentation technology is ideal for making openings without explosives, fast and cost effectively.  In some areas like Manhattan explosives and jack-hammers are prohibited now and major engineering firms are looking for solutions and have been actively knocking on Nippon Dragons' door. A few years back NIP.V received an investment from a construction engineering firm in Japan, that led to demos with firms in Asia, however the real excitement is what is happening now on this front from major, world-wide/global, engineering firms that are actively vetting the technology. It is not unreasonable to envision, in the next year, Thermal Fragmentation being touted as the preferred solution by some of the largest construction engineering firms -- a potentially lucrative deal on this front is possibly imminent near-term.

 

Aside: The Company's distributor in Australia in an engineer and actively uses Thermal Fragmentation. He has two Dragon units that belong to NIP.V and pays a rental fee per equipment per month when he uses them. The Australian developed new technology for security exits in mines using Thermal Fragmentation technology to make it, and he won a prize for best technology in mines for it.

Fig. 6 (above) - Dilution – Conventional vs. Thermal (vein)

 

Nippon Dragon exploits the toughest geology

 
Wasted ounces found in pillars and structures, that would otherwise be damaged with conventional blasting, can be surgically removed with Thermal Fragmentation. In fact, Nippon’s technology is helpful in almost every underground mining activity. Nippon’s process replaces or greatly improves/complements:
 
  - Room and pillar method (flat, reef or any angle).

 
  - Small long hole method.

 
  - Large bolder reduction (facilitate mucking).

 
  - Shrinkage method.

 
  - Drop raise.

 
  - Blind raise.

 
  - Ventilation raise (primary and secondary).

 
  - Drainage hole of 30 cm and more.

 
  - Vibration blasting control.

 
  - Perimeter blasting and stress reduction.

 
  - Drift cut.

 
  - Ore recovery in drifting.

 
  - Ore pass/waste pass.
 

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We expect to see shares of Nippon Dragon Resources Inc. trading on an upward trajectory/trend throughout 2017. Below is expanded insight on Nippon Dragon Resources Inc., its Thermal Fragmentation technology, and Rocmec 1 Gold Property.

 

     Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer

  

 

Recent news releases regarding Company accomplishments and operational developments:

  

• January 24, 2017 "Nippon Dragon Resources will use DIAGNOS’s Artificial Intelligence tools to optimize exploration of its Rocmec 1 and Denain properties".

 

• January 6, 2017 "Nippon's 'Dragons' get a positive independent report on its performance and low energy consumption".

 

• November 22, 2016 "Nippon Dragon Resources (NDR) closes a private placement and provides operational update on the Arizona project".

 

• October 26, 2016 "Nippon mobilizes its flotation plant in Arizona and increases number of gold ounces to be produced".

 

• October 19, 2016 "Nippon finalises R&D program on mini-lance".

 

• September 12, 2016 "Nippon secures funding for gold production via a Forward Gold Purchase Agreement".

 

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Thermal Fragmentation technology Fig. 7 (left) Burner head.

  • Is a mining method that uses heat in order to shatter/spall the high-grade veins greatly reducing the use of explosives.

  • Extracting only the vein with minimal dilution.

  • Could be used as a stand alone method or as the perfect complement to any conventional hard rock mining operation.

Nippon Dragon's President, Donald Brisebois, is credited with having developed and invented the “Thermal Fragmentation Process” for narrow vein precious metal extraction. He has held the positions of General Manager for Placer Dome Inc. (1981-1997); supervisor (1977-1981) for Falconbridge, Teck, Ross-Finlay. He acted as Chairman of the Quebec Mining Association Board; is a member of Canadian Institute of Mining and Metallurgy; Board Member of Soredem (Quebec Research Group) and numerous research teams to develop innovating mining methods focused on narrow vein ore bodies. He has a reputation in the industry for troubleshooting, and has won mining awards for 'Best Mine Manager in Canada' and 'Best Producer - Lowest Cost'.

 

Understanding the mining sector landscape

& Thermal Fragmentation technology's impact on productivity:

 

The mining industry faces unprecedented economic challenges, and is considered to be one of the most polluting industries in the world. Innovation in the mining industry has been characterized by low R&D spending, antagonistic supplier relationships, inward industry focus, and a continued trend towards fewer, larger, longer-lived components. Even though the industry may have been able to continue experiencing efficiency and productivity gains in the past, we seem to have reached the pinnacle of current technologies. Indeed, bigger trucks and shovels represent and improvement over smaller versions and deliver marginal cost and production benefits, but they still depend on grossly wasteful energy conversion and human supervision at every stage.

 

Although technology can certainly improve operations in the mining field, its true benefits can be realized when it is applied to a "platform" approach or Nippon Dragon Resources' proposed "New Production Platform" that encompasses all major phases of the operation such as mine development, drilling and extracting, processing, transportation, as well as the provision of utilities. The Thermal Fragmentation mining method is a disruptive solution and transforms the entire process. Times change and for all industries in the world, technologies have changed almost everything except mining, in a meaningful way. We've reached a point that cost-cutting is no longer a solution to ensure profitability -- Nippon's process is disruptive and will reduce costs up to 60% for many mines in the world.

 

 

Fig. 8 (above) Hard rock mining over time: Mining has seen few changes since the invention of explosives. The depletion of economically viable gold deposit around the world is occurring and the squeeze is increasingly on for margins, known and renewable resources are more difficult to be extracted economically. Thermal Fragmentation fills an important gap and is an essential extraction method.

 

Minimizing dilution with Thermal Fragmentation

 

 

Fig. 9 (above left) -- Image of vein annotated with the degree of accuracy that thermal fragmentation works relative to without, (above right) from pilot hole to ~1 x 1 m.

 

 

Fig. 10 (above left) -- Precision thermal fragmentation minimizes dilution.

 

Thermal Fragmentation method replaces :

 
 • Room & Pillar method (flat or reef).

 
 • Shrinkage method (manpower intensive).

 
 • Small Long hole method (dilution problems).

 

Key benefits:

 

 • Major dilution reduction (4:1 ratio approx.).

 
 • Little or no wall damages caused by blast vibrations.

 

 • Significant cost savings related to ore handling and ore treatment (1 – 13 mm size fragments).

 

 • 2 person team per machine (efficiency).

 
 • Green technology (500 tpd vs 2,500 tpd).

 
 • Cash cost reduction (30%-60% approx.).

 
 • Selective mining.

 

 • Increased Safety.

 

 

Fig. 11 (above) -- Fragmented mineralized ore;

 

 • Rock fragments from 0 to 13 mm.

 
 • Optimal in hard and dense rock.

 
 • The ore does not have to be crushed.

 

Green benefits:

 
 • Massive reduction in energy consumption and greenhouse gas emissions.

 
 • Significantly decreases environmental footprint.

 
 • Reduces the risk of environmental disasters.

 

Impacting the entire mining process:

 

 

Fig. 12 (above) -- The Thermal Fragmentation mining method is a new production platform which positively impacts all stages of a mining operation.

 

  

Fig. 13 (above) -- Thermal unit.

• The thermal head is inserted into the pilot hole.
• The head is ignited and compressed air is added to create a thermal ‘cushion’ .
• Maximum width is 1200 mm (~10 min.).
• No angle limitation.
• Little or no wall damages caused by blast vibrations.

 

 

Fig. 14 (above) -- The Company has two models. The normal Dragon unit (seen left, above) is on tracks, it can also accommodate a drill. The Mini-Dragon unit (seen right, above) is very small, it will fit in small drifts. Nippon Resources Inc. has a manufacturing hub in the Val d'Or area of northern Quebec. Right now it is in a position to produce 2 to 3 Dragon units per month. The unit is designed for toughness, and parts for the Dragons can be replaced using standard Caterpillar-type parts, apart from the burner head (which comes from the Company). Under normal use the burner head typically has a lifespan of ~1yr before pro-active replacement.

 

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Rocmec 1 Gold Property, Rouyn-Noranda, Quebec -- 100%-owned

 

Advanced stage, fully permitted, near-turnkey ready mining scenario.

 

Download PDF of Rocmec 1 Technical Report.       

 

 • NI43-101 May 2010 confirmed 479,100 oz all categories (3 gpt cut-off).

 
      – Bloc 600 m X 600 m X 275 m deep.

 
      – Open all directions.

 
 • 83 hectares + 2,088 hectares unexplored.

 
      – 83 Hectares represents ~3% of surface area.

  

 

Fig. 15 (above) Rocmec 1 portal

 

Fig. 16 (above) Activity at Rocmec 1

 

 

 

Fig. 17 (above) Rocmec 1 Gold Property Location Map -- 35 kilometres west of the town of Rouyn-Noranda and is easily accessible from Route 117

 

Fig. 18 (above) -- Mineralized Boucher structure/veins coincides with the Lac Labyrinthe Fault (annotated on satellite view of area). The width of the structure is ~30 m, and it runs for >3.5 km on the property.

  

Mining-friendly province: Quebec is unanimously agreed in the mining community to be a stable, mining-friendly region and is ranked as a top-tier jurisdiction by the Fraser Institute. Quebec is generous in tax incentives for exploration, and low hydro-electric costs.

 

Noteworthy Veins of Rocmec 1 - The ore body is well defined by diamond drill holes.

 

Figure 19 (above) -- Section 6050mE Rocmec 1 looking West

 

 

 

Figure 20 (above) Oblique View of the Rocmec 1 Mineral Deposit veins and structures. To date, Nippon Dragon has invested approximately $33,000,000 in rehabilitating the property, surface and underground infrastructure, diamond drilling, equipment, drifting and the acquisition of a 75 tpd treatment plant, designed for underground installation. The property includes a 100m deep two compartment shaft, an 844 metre decline allowing access to five levels (50, 70, 90,110 and 130 metres). On these levels a total of 1700 metres (drifts and cross-cut drift) were driven.

 

2010 Resource:

Table 1b (above) - 2010 43-101 Classification table of global resources, prepared with a cut-off grade of 3 g/t, an industry standard. The resources measured/indicated now total 570,300 tons at 6.52 g/t or 119,500 ounces vs. 477,400 tons to 5.59 g/t or 85,900 ounces.

 

Summary of veins

 

Front west vein:

 

This mineralized zone recognized by diamond drill holes is near surface to the west of existing shaft, no special name was given, only in accordance to the fact it sits in front of the McDowell i.e. on the hanging wall. Actual known extent of the zone ranges from 5950Me and 6080mE near surface to 110m at depth. Grades range from trace to 67.87 g/t. and widths vary from 0.15 metres to 1.53 metres. The best intersection encountered is 67.87 g/t over 1.44 metres.

 

Fig. 21 (above) -- Section 6400mE Looking West, McDowell & Talus veins.

McDowell vein:

 

The McDowell vein is the longest gold bearing structure on the property. This main dislocated structure represent the Western McDowell vein, McDowell, the West Claude, the Russian Kid and the Beaudoin vein form one continuous orebody, The structures were followed in the underground development or intercepted by diamond drill holes for 1660 meters East West with an average width close to one (1) meter. The pyrite associated with the vein is present in millimetre-length veinlets within the mass of quartz and preferably in contact of the vein with the wall-rock. The Hanging wall and the footwall both contain coarse pyrite. Lower vein wall (foot wall) is characterized with fine pyrite and is disseminated over more than three meters. It is carrying gold bearing mineralization until a vertical depth of 400 meters. This vein was developed and followed with the underground levels 150, 300 and 425(ft) now level 45, 90 and 130 meters. Grades range from 0.03 g/t to 120.00 g/t and widths vary from 0.07 metres to 5.00 metres.  The best intersection encountered is 74.65 g/t over 2.34 metres.

 

 

 

Talus vein:

 

The Talus vein is probably a secondary sub parallel branch structure to the McDowell vein whose junction point is located close to the section 6445mE. The Talus vein extends to the west of this junction point and is followed and identified up to the 6000mE coordinate. Some sampling of the vein was done in the drift at the 90m level. The actual known extension at depth is 400m. Grades range from 0.03 g/t to 61.58 g/t and widths vary from 0.05 metres to 3.04 metres. The best intersection encountered is 37.02 g/t over 1.22 metres.

 

 

Shaft vein:

 

Located near the mine shaft, the vein is encountered at level 45 meters. Gold bearing mineralization appears in a broad brecciated zone consisting of alternating silicified, pyritized and sericitized diorite bands, and thin milky quartz bands. The distribution of the gold contents is erratic although gold values increase at a depth. The results of sampling of drift made by North Bordulac Mines show that there would be more than one gold bearing structure besides the shaft as North and South satellite veins to the shaft veins within that sector, these are not taken into account in the resource estimation at the moment. Grades range from 0.01 g/t to 28.01g/t and widths vary from 0.12 metres to 2.41 metres.  The best intersection encountered is 18.15g/t over 1.53 metres.

 

  

Boucher vein:

 

During one site visit in November 2006, core from the new Nippon Dragon diamond drill hole RS- 06-01 was reviewed and sampling instructions were given, the mineralized zone was spectacular with presence of visible gold associated with quartz carbonate vein. The zone is located at 165m on the footwall of the McDowell zone. The zone is very impressive and differs significantly by the amount of quartz and the mineralized core width. Visible gold was observed and special sampling procedures were taken to obtain a representative assay value. Grades range from 0.01g/t to 29.94 g/t and widths vary from 0.43 metres to 2.74 metres. The best intersection encountered is 20.06 g/t over 1.45 metres (click to view core samples).

Pictured right present the aspect of the visible gold and the Boucher zone.

 

 

 

Figure 22 (above) -- Core from Boucher vein.

  

Boucher 2

 

The Boucher 2 zone is similar to the Boucher, but it is located 25 m behind to the north on the foot wall of the Boucher, locating it almost 190m from the McDowell, no other diamond drill holes have reached such a distance from the McDowell on the north side. It also indicates that mineralization is not limited to the actually known corridor but extent to the north of the previously known sectors. Grades range from 0.01g/t to 29.76 g/t and widths vary from 0.16 metres to 3.77 metres. The best intersection encountered is 27.91 g/t over 1.77 metres.

 

 

Diamond drill campaigns:

 

Nippon Dragon conducted several diamond drill campaigns on the Rocmec 1 property over the past years, two of which by contractors, the others by Nippon Dragon employees. All of the diamond drill campaigns were designed and carried out following the reasoning of “drill for structure and drift for grade”. A NI43-101 compliant report was prepared Système Géostat International of Blainville (Quebec) and made public in May 2010. The results delineated measured and indicated resources of the Boucher and Boucher 2 structures totalling 22,700 ounces respectively, the Boucher Structure of 58 700 tonnes at 5.46 g/t Au totalling 10,300 ounces and the Boucher 2 structure of 31,500 tonnes at 12.20g/t Au totalling 12,400 ounces with a cut-off grade of 3 g/t This is the first time that Nippon Dragon obtains this type of resource category for the structure that was discovered in 2006. The Boucher vein has now been indentified over a distance of 450 meters in length, at depths of 450 meters and remains open in all directions.

  

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Nippon Dragon Resources' Technical Leadership, Management, and Governance  Skip to top

The current management team and board of directors has a well rounded combination of people that each contribute expertise in disciplines necessary for a successful mining entity:

 

Donald Brisebois, President, CEO, Director

Mr. Brisebois graduated as mining technologist from the Abitibi-Temiscamingue Rouyn-Noranda college. Until recently, Mr. Brisebois was the CEO of Rocmec Mining (2005-2012). He has been the General Manager (2001-2004) of Rocmec International Inc. and is credited with having developed and invented the “Thermal Fragmentation Process” for narrow vein precious metal extraction. Prior to that, he has held the positions of  General Manager for Placer Dome Inc. (1981-1997); supervisor (1977-1981) for Falconbridge, Teck, Ross-Finlay. He acted as Chairman of the Quebec Mining Association Board; is a member of Canadian Institute of Mining and Metallurgy; Board Member of Soredem (Quebec Research Group) and numerous research teams to develop innovating mining methods focused on narrow vein ore bodies.

  

Jean-Yves Therien, Vice-president Business Development

Mr. Thérien holds a Bachelor degree in Administration (specialized in finances) from l'UQAM. He has worked for 18 years as placement advisor for multiple brokerage Companies. His team spirit, entrepreneurship, perseverance and dynamism allow Nippon Dragon to establish a niche in the industry and to exploit markets never developed before.

  

Dr. Michael M. Avedesian, Ph.D., Eng., FCAE, FCIC, Senior Advisor

Former President, Noranda Magnesium and Magnola Metallurgy, Dr. Avedesian has over 33 years of operations and business management experience in the metals and minerals sector. He holds a bachelor's degree with honors in Chemical Engineering from McGill University, and a Ph.D. in engineering from Cambridge University. In 2001, he culminated a 21 year career with Noranda Inc. having held responsibilities in several roles including technical, operations, business management and executive management. He also worked 6 years with Domtar Corp. as Director, Corporate Development in the 1980s primarily in the Chemicals Division which at that time was a vertically integrated mining company in industrial minerals including salt, gypsum and limestone products. Dr. Avedesian also had two successful start-up companies for which he was the founding CEO. One start-up had a successful IPO on the Toronto Stock Exchange. Upon retirement from his corporate career, he was invited to join McGill University in 2003 where he currently teaches courses in strategic management, technological entrepreneurship and launching new enterprises at the MBA and graduate level in both the Faculty of Management and the Faculty of Engineering. Recently, Michael also served as a Director and CEO of Tawsho Mining Inc., a junior gold exploration company publicly traded on the TSX Venture exchange. Currently, he also serves on the Board of Directors of TM4, a company which designs and manufactures electromechanical drive train systems for hybrid and electric vehicles. In addition to his teaching duties at McGill University and his Board responsibilities, Dr. Avedesian also runs an active consulting business in the mining and metallurgical industries with major projects currently underway in Abu Dhabi and China. Michael is a member of Ordre des ingenieurs du Quebec, Professional Engineers of Ontario, and the C.S.Ch.E. (for which he was President in 1992-1993). He was elected Fellow of the CIC in 1993. In 1998 he was inducted as a Fellow in the Canadian Academy of Engineering.

 

Nikola Vukovic, QP, Director

With 30 years in the mining business, Mr. Vukovic has extensive global experience in a range of mining functions; including projects evaluation, financing, development and operations. He was successful with strategic planning, business development and in implementation of leading business practices for sustainable or event based value creation, re-engineering, optimization and process automation. Prior to joining Nippon, Mr. Vukovic held various senior leadership positions where he budgeted, constructed, commissioned and turned over large capital open pit and underground projects with major mining companies like BHP Billiton, Rio Tinto and Freeport McMoRan. Mr. Vukovic has an Honours BSc in Geology from Tuzla University and an M. Eng. in Mining from McGill University. In 2012, he received the Qualified Professional designation from the Mining and Metallurgical Society of America.

 

Émile P. Molgat, Director

Mr. Molgat brings to Nippon Dragon his broad experience in the mining industry and since 2001, he is a consultant for mining companies. Former President and General Manager of Explonor Ltd, a company which specializes in selling explosives to mining companies (1984 to 1992); Regional Manager for ICI (1992 to 1997), Manager for Canada of the underground mines division of Orica (1998 to 2001).

 

Paul-A. Girard, Director

Paul-A. Girard obtained a Communications degree from the University of Montreal in 1975 and a degree in Industrial Relations from the University of Québec in Trois-Rivières in 1981. He has been active in the mining field for more than 30 years and occupied various positions in such field. From 1985 to 1990, he was the financial editor for Les Affaires newspaper, in charge of mining and forestry sectors. From September 1991 to 1994, he acted as Vice-President of business relations for Gestion Corpomin Inc., where he was in charge of internal and external communications regarding mining companies. From 1994 to 2009, he occupied various positions within MDN Inc., namely President, Chief Executive Officer and Chairman of the Board. Since 2009, he acts as a senior consultant in management and communications in the mining field.

 

Note: This article is not intended to be a complete overview of Nippon Dragon Resources Inc. or a complete listing of Nippon's projects. Mining MarketWatch urges the reader to contact the subject company and has identified the following sources for information:

 

For more information contact Nippon Dragon Resources' head office at: Ph (450).510.4442

 

Company's web site: www.nippondragon.com   SEDAR Filings: URL

 

 

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*Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather journalistic opinion only. Technical mining terms used by the writer may be used/expressed in simplified layman terms and should not be relied upon as appropriate for making investment decisions unless the reader contacts the company directly for independent verification. *Estimates of potential made by the mining analyst and journal(s) are non 43-101 and not from the Company.

 

     

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