Pine Cliff Energy Ltd.

Array
(
    [symbol] => PNE
    [exchange] => TSX Venture Exchange
    [compname] => PINE CLIFF ENERGY LTD
    [date] => Oct 31, 2014
    [time] => 13:42 ET
    [open] => 1.49
    [high] => 1.53
    [low] => 1.46
    [last] => 1.47
    [tick] => No Change
    [img] => 
    [pclose] => 1.47
    [price_change] => 0.00
    [per_change] => 0.000%
    [volume] => 220,992
    [yearlow] => 0.96
    [yearhigh] => 2.13
    [bidprice] => 1.47
    [askprice] => 1.48
    [bidsize] => 6300
    [asksize] => 30200
)
TSX Venture Exchange (PNE) $1.47 Change 0.00 | 0.000%

Minerals Division

Pine Cliff has a mineral division through its wholly-owned subsidiary Geomark Exploration Ltd.  The division's business strategy is to acquire early stage mineral exploration properties and develop them into economic situations (mines). Current mining assets are located in Utah, Ontario, Northwest Territories and Nunavut. The company is currently executing a drilling program on its Kings Canyon project in Southwest Utah.

Utah - Kings Canyon

The company holds  a 100 percent interest in the Kings Canyon gold property in the southwest corner of Utah.

When purchased, the company assumed the existing Joint Venture (the Crown JV) with Crown Resources Ltd. (Crown) (an indirect subsidiary of Kinross Gold Corporation) on a claim block hosting a 200,000 ounce gold historical (non-NI43-101) mineral resource(1). Under the Crown JV, the company has an all or nothing option to acquire a 100 percent interest in the lands (and the historical resource) by paying Crown U.S. $1 million prior to December 6, 2013. The property carries two Net Smelter Royalties (NSR's) totaling five percent.

The company also purchased a 100 percent interest in claims surrounding the Crown JV lands from Invenio Resources Corp. and Palladon Ventures Ltd. for Cdn $325,000. NSR's on these claims range from two to five percent.

A drilling program was initiated in 2012 on both the portion of the property on which it has an option to acquire a 100 percent interest for U.S. $1 million and on the 100 percent owned land surrounding the crown option claims (which includes the royal zone).  Drill results from this program can be accessed in the Geomark Exploration Ltd. press release dated September 26, 2012 available here and in the Pine Cliff press release dated February 14, 2013 available here. The goal is to develop a critical mass of near surface, low grade gold mineralization of sufficient size to justify a low cost heap leaching operation. Several zones of gold mineralization, outside of the existing resource, have been identified on the claim block. A second phase of drilling took place during the second and third quarter of 2013 to follow-up results of the initial drill program and test exploration targets elsewhere on the property.

Martin Eastwood, P.Geo. is the Senior Exploration Geologist and is the designated Qualified Person for the Kings Canyon project.

(1) The reader is cautioned that the above referenced "Historical Mineral Resource" is considered historical in nature and is based on prior data and reports (Crown Resources 10-K Report December 2002) prepared by previous property owners prior to the existence of National Instrument 43-101. The historical resource is based on parameters of 6,800,000 tons at a grade of 0.03 ounce per tonne gold (1.02 grams per tonne gold) for 204,000 ounces gold, using a cut-off of 0.013 ounce per tonne (0.44 grams per tonne) gold. The work necessary to verify the reliability and classification of this mineral resources estimate has not been completed by the company and we confirm that the Historical Mineral Resource estimate therefore cannot be treated as NI43-101 compliant resources verified by a Qualified Person. The company is not treating the historical resource estimate as a current mineral resource or reserve. The historical estimate should not be relied upon and there can be no assurance that any of the historical resources, in whole or in part, will ever become economically viable. The company will determine what future steps will be required to upgrade the historical resource estimate to an NI43-101 compliant mineral resource.

Ontario Properties

Geomark presently has a total of eight separate properties located east, west, and north of the City of Timmins, Ontario. Several of the properties have been optioned to other companies in the past.  Geomark is the operator of all of the projects with interests ranging from 90 to 100%.

In November 2010, Geomark commenced geophysical surveys (Quantec Titan 24 DC/IP and MT resistivity surveys) on four of its Timmins area assets: Thorneloe, Northwest Deloro, Carr-Wilkie and Nighthawk Lake (Cody).  These surveys were completed in the first quarter of 2011 and IP anomalies were identified on three of the four properties.

Geomark has no immediate plans to explore any of these properties.  The leases holding the properties require small annual payments to hold them in good standing and Geomark plans to hold these properties.
 

Other Properties

Kim Property (Gold)

In the fourth quarter of 2014, the company entered into an option agreement with Nighthawk Gold Corp. ("Nighthawk") for the disposition of its Kim gold property, located approximately 200 kilometers north of the City of Yellowknife, Northwest Territories. Geomark received a 2.5% net smelter royalty (of which 1.5% can be repurchased by Nighthawk for $1,500,000) and $1,550,000, with payments to be spread out over the next three years. The first payment of $250,000 was received on December 18, 2013 ($125,000 cash and 1,768,345 common shares of Nighthawk). Nighthawk will not earn an interest in the property until all amounts have been paid. At the sole option of Nighthawk, one-half of the payments may be satisfied by issuing common shares, which are listed and posted for trading on a recognized stock exchange in Canada. 

Rankin Inlet Property (Nickel, Copper, Platinum Group Elements)

The company has a 70 percent interest in two leased claims on the Rankin Inlet peninsula in Nunavut that cover the old North Rankin nickel mine that was active from 1957 to 1962. Exact figures on mine production are not available; however, the best estimates of historical production from publicly available government assessment files are 460,000 tons of ore grading 2.3 percent nickel, 0.63 percent copper and approximately 3 grams per tonne platinum group elements (PGE). It is estimated that 21 million pounds of nickel and 6 million pounds of copper were produced over the life of the mine.

The approximately 3,100 acre property underwent limited diamond drilling in the area of the old workings in 1988 and in 1992 (2,404 metres in 27 holes). The mineralization is interpreted to lie in embayments along the footwall of a serpentinized ultramafic sill. Airborne and gravity interpretation over the claims in 1992, plus work by the Geological Survey of Canada suggests the sill could be continuous under the hamlet of Rankin Inlet.

PGE values and exotic mineralogy have been recovered from previous work programs on the prospect. The interpreted extension of the deposit lies under the east edge of the hamlet of Rankin Inlet, extending under several municipal developments to the south. There are no immediate plans for further exploration on this property.