RSS UpdatesCompany Information for Altius Minerals Corp
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 TSX.V; ALS
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Company Statement
Altius is a natural resource project generation and royalty business based in the province of Newfoundland & Labrador.
Altius is focused on the mining and resources sector through prospect generation, the creation and acquisition of royalties and investments. The Corporation has a strong financial position with approximately $194 million in cash and liquid investments and no debt. Altius owns an effective 0.3% net smelter return in the producing Voisey’s Bay nickel-copper-cobalt mine located in Labrador, Canada and has numerous active mineral exploration agreements principally in eastern Canada targeting a variety of mineral commodities. In addition, the Corporation holds investments in junior exploration and development stage companies.
Business Strategy
Altius' business model is simple and has been implemented as an effective means of managing risk. It involves a small team of people that conceptualize and innovate mineral resource related opportunities, invest in their initiation and development and, when successful, form businesses or partnerships around these opportunities. The model has worked well by allowing exposure to multiple opportunities while minimizing negative impacts to the capital structure of the company.
Altius commitment to grassroots project generation is stronger than ever with 11 active mineral exploration partnerships covering prospective projects for gold, base metals, nickel, uranium, rare earth elements, and iron ore in eastern Canada. The Company’s exploration business is also expanding its project generation mandate to other prospective jurisdictions outside of eastern Canada. Considering its financial strength and proven business approach, Altius views the challenges that continue to impede the financing of early-stage junior exploration sector has an opportune time for Altius to expand its exploration focus into other prospective jurisdictions.
Although, Altius' financial capability has grown considerably in its 13 years of business it remains committed to managing risk and exercising financial discipline. The general volatility of the industry through 2009 is considered by the Company as cyclical and that it therefore represents a better sectoral investment opportunity than has been available for several years. In response, Altius is reviewing an increasing number of opportunities to prudently deploy its capital.
Current Operations
Royalties
LABRADOR NICKEL ROYALTY LIMITED PARTNERSHIP
Voisey's Bay Royalty
Altius has a 10% interest in the Labrador Nickel Royalty Limited Partnership. The Limited Partnership holds a 3% net smelter return royalty over the Voisey's Bay nickel-copper-cobalt project in Labrador that is owned and operated by Vale INCO NL.
Altius' royalty entitles it to a share of revenues less certain costs incurred after concentrates leave the mine site for final processing. The costs of mining or onsite processing are not deducted from our share of revenues.
This royalty asset generated approximately C$5.2 million in earnings for Altius in fiscal 2007. This is significant especially when compared to the purchase price of approximately C$13 million in 2003. The purchase price was predicated on a conservative long term nickel price assumption of US$3.25 per pound. While nickel prices have dramatically receded from the record highs of May, 2007 the current average nickel price (~$4-$5) will still deliver Altius more than adequate cash flow to fund its mineral exploration business in the year head.
The Voisey's Bay Royalty is a strategic asset for Altius that ensures reliable and sustainable cash flow over the estimated minimum 25 year mine life. Altius views the royalty income as a financing source that is more than sufficient to support its mineral exploration business model over the long term thereby eliminating equity dilution to shareholders to finance exploration.
Inherent Upside.
Altius believes the exploration potential of the area captured by the royalty to be exceptional. This exploration upside is especially significant to Altius because not only does the royalty apply to the known mines and ore reserves at Voisey's Bay it applies to the entire Voisey's Bay district! Further, the exploration potential comes at zero effective risk to Altius shareholders, as exploration expenditures are not deductible against royalty payments.
The Voisey's Bay project is at a very early stage of its exploration and development history compared to other world-renowned nickel districts like Sudbury and Noril'sk which dramatically grew in scale over the initial decades following discovery.
CENTRAL MINERAL BELT URANIUM - AURORA ENERGY
Altius maintains an underlying 2% gross uranium sales royalty and a 2% net smelter return royalty on base and precious metals that may be produced from Aurora's Central Mineral Belt ("CMB") projects in Labrador, Canada.
The royalty was created in June 2005 following 2 years of successful exploration in the CMB when Altius and its partner, Fronteer Development Group, restructured their exploration alliance as part of a longer-term business strategy to create a new pure uranium company - Aurora Energy Resources Inc. (TSX:AXU). The agreement structure and launch of Aurora effectively converted Altius property ownership into an equity stake in the new uranium company and an underlying royalty covering Aurora's Labrador properties. By October 2007 Altius had sold its entire equity stake in Aurora for gross proceeds in excess of $200 million, while still retaining its royalty position over the properties.
The Central Mineral Belt project generation initiative in early 2003 and the subsequent Aurora co-founding in 2005 is a testament to the success of Altius' chosen business model.
Exploration Overview
Aurora has been focused on a comprehensive exploration/development program in the CMB over the past three years. The ongoing 2008 program has been consistently expanding uranium resources at the Michelin and Jacques Lake deposits as well as identifying new uranium prospects throughout the CMB district. Current measured, indicated and inferred (MII) resources reported by Aurora stand at ~130m lbs of uranium.
It should be noted that Aurora has had a turbulent 2008/09 due to deteriorating uranium market fundamentals and Nanatsiuvut's decision to implement a 3-year moratorium on uranium development and mining.
For further information regarding results to date and the ongoing exploration and mine development planning please visit www.aurora-energy.ca.
VIKING GOLD PROJECT
Northern Abitibi Mining Corp. (’NAI’) entered into an option agreement to acquire an interest in the Viking gold property in July 2007. In October, 2009, NAI completed its initial earn-in obligations at Viking by incurring in excess of $1.2-million on exploration and issuing a total of 1,115,000 shares to Altius. Altius then elected to retain a 2- to 4% sliding scale net smelter royalty (tied to the price of gold) and grant Northern Abitibi full ownership of the property.
The 900 hectare Viking property contains an orogenic-style of gold mineralization hosted in Precambrian intrusive rocks. The gold mineralization is associated with pyrite-chalcopyrite-galena-sphalerite bearing quartz veins in northeast-trending silica-carbonate-altered shear zones. Free gold is common.
Exploration at Viking to date has intersected gold mineralization along the Thor trend over a 1,000-metre-long strike length and the zone remains open. Highlights include six holes that directly tested the Thor vein and returned up to 218.8 grams per tonne (g/t) gold over 0.5 metre and an average of 39.1 g/t gold over 2.82 metres. Large intervals of gold mineralization include:
- 27 metres grading 7.9 g/t gold
- 23.0 metres grading 5.12 g/t gold
- 57.4 metres grading 2.6 g/t gold
- 41.4 metres grading 2.0 g/t gold
The Thor trend remains open along strike in both directions and at depth.
2010 drilling will focus on expansion of the Thor trend as well as the evaluation of potential bulk-minable gold mineralization .
The property is ideally located within 1 km of a paved highway and power line.
NUIKLAVIK URANIUM-REE PROJECT
In early January 2010, Altius announced the sale of its Nuiklavik rare-earth-element (REE) property in northern Labrador to Rare Element Resources Ltd., in exchange for 200,000 common shares of the company in staged payments. Altius will retain a 2% gross overriding royalty on the property.
Altius initiated and staked this 790 claim (197.5 km2) project in 2006 to target volcanic-hosted uranium-type deposits. The project is located approximately 25 km from the coast and encompasses twenty-four yttrium-zirconium-niobium-REE, fluorine, and base metal occurrences as documented in the provincial government survey database.
The property is underlain by alkaline to peralkaline Proterozoic volcanics that host numerous rare earth element (REE) and base-metal occurrences identified by government geologists. The Nuiklavik Uranium Project represents a new exploration concept in an area not previously explored for uranium.
Prospecting over the past two field seasons guided by a high resolution airborne magnetics and radiometrics survey has resulted in the discovery of numerous additional uranium and rare earth occurrences in felsic dykes and volcanic rocks, including grab samples from separate occurrences with highest values of 0.067% U3O8, 2.3% ZrO2, >1.27% Y2O3, >1.15% Nb2O5, and 1.1% TREO (total rare earth oxides).
The metallogenic signature and geological setting resembles that of the Strange Lake REE deposit located 200 km to the northwest where an historical non-compliant 43-101 resource of 52 million tonnes of 3.5% ZrO2, 0.66% Y2O3, 0.56% Nb2O5, and 1.3% TREO was reported by the Iron Ore Company of Canada in 1983. Altius has also discovered new occurrences of Cu, Au, Ag, Mo, and Be throughout the property.
Founding Equity Stakes
Aurora Energy Resources
Rambler Metals & Mining Plc
Kamistaitusset Iron Ore Project
Mineral Exploration Joint Ventures
Labrador Iron Ore Project
South Tally Pond Property
Rocky Brook
Taylor Brook
Notakwanon Uraniu Project
Alexis River Uranium Project
Topsails Uranium-Ree Project
St. George's Potash Project
Labrador Trough Alliance
Boxey Point Uranium
Energy Opportunities
New Found Land and Labrador Refining Corporation
Albert Oil Shale Project
Exploration Alliances
Millrock Resources Alliance
Alba Mineral Resources Plc
Paragon Minerals Corporation
Seeking Partners
Snelgrove Lake Iron Ore
Natashquan PGE Project
Meshikamau Nickel Project
Mustang Trend Gold Projects
Wing Pond Gold Project
Geographical Spread
Newfoundland and Labrador (and New Brunswick)
Board of Directors and Key Management
| Management & Directors | |
| Brian F. Dalton | President & CEO |
| J. Geoffrey Thurlow | Director |
| John A. Baker | Director |
| Donald J. Warr | Director |
| Susan Sherk | Director |
| Fred Mifflin | Director |
| Ben Lewis | CFO |
| Chad S. Wells | VP Corporate Development and Corporate Secretary |
| Lawrence Winter | VP Exploration |
Company AddressSuite 202, Kenmount Business Center, 66 Kenmount Road
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Additional Address/Key ContactMailing Address: |
CapitalIssued shares: 28,432,895
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Annual General MeetingOctober | Year EndApril 30 |
Related News
03/06/10 - Altius Has A Wide And Varied Portfolio Of Royalty And Exploration Assets, And Is Actively On The Lookout For More29/03/10 - Altius Minerals Has $200 Million Earmarked For The Acquisition Of A Non-Gold Royalty
03/11/09 - Steady Royalty Streams Support Altius Minerals In Its More Speculative Exploration Activities
29/06/09 - Altius Minerals Widens The Reach Of Its Royalty Portfolio, And Steps Out Beyond Eastern Canada
27/01/09 - Any Time Now The Bottom Fishers Will Be Sizing Up The Unique Strengths Of Altius Minerals
Most Recent Statement
27/08/10 - Updates 2010 Iron Ore Exploration Progress In Western Labrador23/06/10 - Early Warning Report Filed in Respect of Millrock Resources Inc
21/06/10 - Altius Reports on 2010 Exploration Season
17/05/10 - Altius Reports on Plans for 2010 Iron Ore Exploration Projects
18/03/10 - Altius Reports Resignation of VP, COO, & Director
17/03/10 - Altius Minerals Corporation Reports Third Quarter Financial Results