Tag Archives: mining

Derek Wood on Creating Wealth for All in Mineral Exploration | #HashtagFinance

CSE’s Anil Mall chats with Derek Wood, CEO of Tocvan Ventures Corp. (CSE:TOC), about his experience in mineral exploration finance and the many do’s and don’ts of building a public mining stock. The conversation also touches on Tocvan’s ambitions as an early-stage natural resource company engaged primarily in the acquisition, exploration and, if warranted, development of mineral properties. The company’s objective is to conduct exploration programs on the Pilar Gold project in the Sonora state of Mexico and the Rogers Creek project in Southern British Columbia.

Here’s an overview of what Anil and Derek cover in this edition of the #HashtagFinance podcast:

1:41 – How life after lockdown has never been busier.
3:40 – An overview of Tocvan Ventures.
6:43 – The difference between porphyry and epithermal deposits.
10:02 – The industry comps to Tocvan.
12:50 – Derek’s deep experience in the Canadian capital markets.
15:03 – How to create value for junior mining investors.
17:53 – The team at Tocvan.
21:50 – The benefits of mineral exploration in Canada.
28:29 – Canada’s global role in junior capital financing.
30:52 – The 5 Ps of the mining industry.
34:35 – Derek’s issue with the 43-101 standard.
38:12 – Tocvan’s Pilar gold-silver project in Sonora, Mexico.
41:35 – His advice for a young investor in the mining sector.
44:35 – The advantages of utilizing a broker for private placements.

Related links
https://thecse.com/en/listings/mining/tocvan-ventures-corp

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Guy Goulet on Green Resource Management in Peru | #HashtagFinance

On this episode of #HashtagFinance, CSE’s Barrington Miller talks with Guy Goulet, CEO of Cerro de Pasco Resources Inc. (CSE:CDPR) and how the company is focused on applying the latest technology in the production of commodity metals through the treatment and reprocessing of all material resources, dumps, tailings, mining waste and more in order to secure long-term economic prosperity in Peru.

Here’s an overview of what they cover in this podcast:

2:03 – Mineral rights by the numbers.
4:41 – Prospects for the mining sector, gold and silver specifically.
6:39 – Guy’s last visit to Cerro de Pasco.
8:20 – How raising $50M is easier than raising “small” money.
10:46 – Cerro de Pasco’s history including the largest copper stock in the world.
11:34 – Why processing tailings is easier than mining rock.
14:06 – How Guy utilizes his background as a geological engineer in the capital markets.
16:58 – The Cerro de Pasco puzzle and how it comes together.
17:42 – Why he needs to remind stakeholders that its a remediation project, not a mining project.
21:31 – The latest development including their merger with Volcan Compañia Minera S.A.A.

Related links:
https://pascoresources.com/
https://thecse.com/en/listings/mining/cerro-de-pasco-resources-inc

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Stephen Stewart on Hunting for Kirkland Lake Gold | #HashtagFinance

On this episode of #HashtagFinance, CSE’s Barrington Miller was joined by Stephen Stewart, Director of Mistango River Resources Inc. (CSE:MIS) to discuss the why they are hunting for Kirkland Lake gold. He also addresses the dramatic evolution of the company over the past 12 months and why he’s excited about the prospects for the company’s assets in the Kirkland Lake camp.

In this discussion, Stephen Stewart shares how the company is focused on two flagship assets located on the Abitibi Greenstone Belt (3:39), the intertwined history of Kirkland Lake and the mysterious Sir Harry Oakes (6:31), and what drew mining finance legend Eric Sprott to invest in the company. Listen until the end to hear Stephen’s views on the risk and reward factors in mineral exploration, how the “gold bug” narrative is impacting their business, and details concerning this summer’s exploration program.

Related links www.mistango.com thecse.com/en/listings/mining/mistango-river-resources-inc

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Andrew Nelson’s Millennial Primer on Mining Exploration Investment

CSE’s Anna Serin was recently joined by Andrew Nelson, Partner at GNA Financial Advisors Inc., to discuss the many factors involved when evaluating investment opportunities in the mining sector. This wide-ranging discussion pulls generously from Andrew’s investment banking experience in finance and capital markets and serves as a great primer for those new to investing in the space.

In this chat, Andrew describes the “lifeblood” of companies when they are raising new capital (3:17), the pillars of crafting “digestible” messaging for prospective mining sector investors (6:12), and the two key variables that can combine to create exponential value for a mining stock (14:30).

Listen until the end to hear Andrew’s very simple strategy for starting a mining portfolio, his debunking of mining industry stereotypes, and the prospects for gold investing during the COVID-19 pandemic.

Related Links:
gnafinancialadvisors.com

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Cerro de Pasco Resources: A new generation breathes life into an old mine with benefits that reach far and wide

Cerro de Pasco is a centuries-old community nestled high in the Andes Mountains of Peru, but after nearly 400 years, a local mine that once brought prosperity must rethink a path forward in alliance with the nearly 50,000 people who now live there.

What began as an underground operation became an open pit at the centre of a growing population of miners and their families. Outdated mining technology resulted in inefficient yields. Tailings and stockpiles grew, and contaminated dust and water crept into surrounding areas.

There’s a huge economic opportunity in the tailings and stockpile at the site, though, not to mention known in-situ resources, 11,000 hectares of concessions, and unexplored areas.

But Cerro de Pasco Resources (CSE:CDPR) wants to do more than make money.

Chief Executive Officer Guy Goulet and Executive Chairman Steven Zadka have a vision that, if everything goes right, will see parts of the population relocate away from certain areas to new locations with clean drinking water, heat in their homes, and well-paying jobs – for the benefit of all stakeholders.

The company bought the mineral rights to the tailings and stockpile in 2012 and in November, inked a deal to acquire the mine itself and all accompanying infrastructure. Public Entrepreneur caught up with Goulet and Zadka as they began transitioning the company into production, initiating a multi-decade plan to revitalize a mine and restore a city.

Tell me about your background in the mining industry and how Cerro de Pasco came to be.

Zadka: In 2011, through my capacity as an investment banker, I came across the opportunity to buy the mineral rights on the tailings and stockpile in Cerro de Pasco and decided to jump on it.

Guy was running a company called Maya Gold & Silver in the early 2010s, and I was one of the bankers. He closed a very difficult client of mine and had incredible energy, so I said, “This guy knows how to do things.” He left that company in 2017 and I reached out.

Goulet: I was working in Morocco, and Steven approached me while I was on my way out, following the restart of a silver mine there.

We teamed up to accelerate the development of the project and list the company on the Canadian Securities Exchange.

I’m also attracted to pro-environmental projects. In 2000, I co-founded H2O Innovation, which is the largest water treatment company in Canada as of today.

What are we looking at here in terms of metals? What’s the game plan on the mining side?

Zadka: I knew that there was silver, lead, and zinc. And I discovered that there was also copper and gold in the tailings. The grades are pretty good, both because they’re old and they come from one of the richest mines in the world.

You’ve got material, metals literally sitting on top of the ground, which is much less expensive than traditional exploration.

We’re buying two subsidiaries that are producing and permitted. For 2019, we estimate their revenues were about $120 million combined.

Permitted capacity is about 20,000 tonnes per day on sulfides and right now, it’s doing 7,000 tonnes a day, and once we bring these tailings into production, the annual revenue starts getting into the $250 million to $300 million range.

With all the resources we have and what we’re acquiring, we have a 17 year mine life. But the reality is that the mine is going to go for much longer because there’s 11,000 hectares of concessions and areas that are largely unexplored.

Goulet: Post-acquisition combined, Cerro de Pasco will be the largest holder of silver in one single site. There is a need to increase the current production capacity up to its permitted level of 20,000 tonnes per day.  We estimate this will require about $35 million of capital. Once production levels are up, cash flow will start to generate rapidly.

We’re in the process of raising the capital required for the first phase, which is $65 million USD.

You’ve called Cerro de Pasco a resource management company. What does that mean?

Zadka: A traditional mining company is only focused on extracting metals from the ground. That’s what mining is; it’s going into the ground, digging up dirt, and putting the waste somewhere.

We call ourselves a resource management company because we plan to do more than just mining. There are some aspects of mining at Cerro, but there’s other aspects involved.

For one, we’re reprocessing the materials that are sitting on top of the ground, which is not theoretically mining. There’s also storage of waste.

If you can return clean water to the environment, you’re managing a resource. If you can turn your waste into building products, or turn pyrite into heat to generate hot water, you’re managing a resource.

With that in mind, how is resource management going to help the people of Cerro de Pasco?

Zadka: We’ve been completely open and transparent with the community and the local government. We’ve told them the truth, and the truth is that this is a mess that can be turned into an opportunity with some reorganization, planning, and support from the local authorities and community.

The government acknowledges that Cerro de Pasco is laden with lead, and they have a plan to relocate sections of the city 30 kilometres away from the mine. What they need in order to do that, amongst other important factors, is support from the most important economic driver in town. That’s us.

Peru has a program called “Obras por Impuestos,” or taxes for works, that enables a company to use taxes generated from operations to fund infrastructure projects for the benefit of society. You can fund roads, sewer lines, hospitals, and schools.  One of our main objectives is to do just that.

We also want to take it a step further. None of the cities in the Andes Mountains have heat, and it’s freezing every night. We have so much pyrite, which produces heat on its own, that we can harness to produce hot water and we could pump that hot water through the city.

Goulet: We want to do more water treatment systems and educate the young people to wash their hands before they eat. We want them to play in parks where we’re going to renew the topsoil.

I come from Thetford Mines in Quebec, which was the world capital of asbestos. You know what I was doing as a kid? I was going with my bike and playing in the dumps. In Cerro de Pasco, we want to avoid that.

There is a problem of contamination in Cerro de Pasco, but just as important is the problem of poverty. That mine used to employ 7,000 people.  Some 1,200 work there now in some capacity. In an area that is 4,400 metres high, what else is there to do for work besides mining?

Let’s recall that the problem of contamination is not mainly due to mining activities. The old city is located on a geological natural accident: a massive intrusion of lead, zinc, copper, silver, and gold. A “mine” is what it’s called today! And the population has been living from that operation over the past 400 years.

We want to help solve that problem of poverty and restore prosperity in the community.

The company is listed in North America, but what does your management team look like in Peru?

Zadka: I’m based in New York, and Guy’s based in Canada, but the heart of the management team is in Lima and Cerro de Pasco.

We employ several Spanish speaking expat VPs, who are specialists in different areas like mining, geology, metallurgy, environment, health, and safety.

Everybody that works with us has a very special drive, and I don’t think you find that at other mining companies because this isn’t only about making money. Here, we’re trying to make a difference.

Goulet: We’re going to spend $58 million over the next four years on HSEC (Health, Environmental, Social and Communities). We have a social license, which is essentially a vote of confidence from a key component of the population that agrees with our business plan. That’s an important asset in Peru. We received positive signals from the Minister of Energy and Mines, the local government, and the President himself.

Can an environmental restoration project like this also be profitable?

Zadka: There are multiple benefits to the local population and the environment, but at the end of the day we believe this is a very compelling investment.

Not surprisingly, investors are cautious about tailings and stockpiles because they tend to be a finite resource. They would not normally offer the opportunity to find something above and beyond expectation that could make the stock go up by 10 times overnight.

However, Cerro de Pasco not only has 170 million tonnes of reserves in the tailings and stockpiles, but also 140 million tonnes of material in the ground and 11,000 hectares of concessions in one of the most prolific mining districts in the world, which has never been properly explored.

We’re talking about almost 1.6 billion ounces of silver equivalent.  That would be the biggest amount of silver in one location on the entire planet. Nobody else has that.

What does the long-term picture look like?

Seventeen years from now, a large portion of the population won’t be living in Cerro de Pasco anymore. They’ll no longer be affected by the hazards of the area.  They’ll have access to clean water and live in proper homes.

There are still two approaches to mining. There are companies that try to skirt ESG-related issues, and there are those that see the opportunity to deal with these issues head on.

We aspire to be a leading example of why you shouldn’t run away from these problems. If you’re innovative and you’re willing to go the extra mile, you’re going to have a much better impact on the outcome. Cerro de Pasco needs that outcome.

This story was featured in the Public Entrepreneur magazine.

Learn more about Cerro de Pasco Resources Inc. at https://pascoresources.com/.

Frank Holmes on the New Investment Realities in the Age of Coronavirus

CSE’s James Black recently hosted Frank Holmes, CEO and CIO at U.S. Global Investors for his second visit to the #HashtagFinance podcast.

In this discussion Frank shares his many investment observations including the global themes that are contributing to gold price speculation (1:50), why he thinks buying Bitcoin is now analogous to collecting art (7:07), and the impact of Coronavirus on recent mining and investment conferences like PDAC (14:46).

Listen until the end to hear Frank’s thoughts on how safety and technology will evolve in response to the Coronavirus and how to protect your money in a low interest rate environment.

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Go Cobalt: Battery metals the target with promising projects in the Yukon and Quebec

It was serendipity that led Go Cobalt Mining Corp CEO Scott Sheldon to the exploration company’s flagship Monster property in Yukon, Canada’s Wild West which is seeing a modern-day minerals-rush. The Monster property is located 80 km north of Dawson City, in Yukon.

“In 2011, I ran into a friend from university who had been living in the Yukon since graduating,” said Go Cobalt CEO Scott Sheldon. “My dad and I had recently discussed a collaboration and took this opportunity to move into a gold play together leveraging some great Yukon contacts.”

As the material needs of the world’s seven billion people continue to grow, there has been a rush to exploit the Yukon’s exceptionally rich resources — gold, zinc, cobalt, and more.

As a junior mineral exploration company, Go Cobalt is focused on copper, gold and cobalt projects in Canada. Yukon’s industry-friendly regulations attracted the battery metals company which has been in the resource rich region since 2011.

Go Cobalt is on the right track as the fundamentals supporting the cobalt sector such as the electric vehicle and energy storage booms continue to grow stronger.

Sheldon has mining in his veins. His father Don Sheldon raised capital for junior resource companies for nearly three decades.

“I started working in the industry when I was 16 years old up in the Golden Triangle of northern British Columbia,” said Sheldon. “I continued to do this every summer through university to help pay for my degree” added Sheldon, who graduated from Dalhousie University in Halifax.

The Monster advantage

Interest in Yukon began in the 19th century when gold prospectors pushed northwards and plied creeks with picks, pans and shovels. Today, the Yukon in the northwestern wilderness of Canada is considered one of the best mining jurisdictions in the world.

Co Cobalt’s Monster property in the Yukon is a copper, cobalt, gold prospect covering 63 square kilometers of the Ogilvie Mountains in the Dawson Mining District. The company believes its Monster project represents a large, prospective opportunity because it lies on the Wernecke Breccia, a region of the Yukon known to host iron oxide copper gold (IOCG) style minerology.

“Our VP of exploration even wrote his thesis on comparing the Wernecke region of the Yukon to similar hydrothermal deposits in Australia. Some of the biggest copper mines in the world carry an IOCG signature,” said Sheldon. “Olympic Dam and Candelaria are two examples.”

The tremendous size, relatively simple metallurgy and relatively high grade of IOCG deposits can produce extremely profitable mines. The Monster has zones of elevated copper and cobalt concentrations across the entire 19 km length of the property. The Monster’s IOCG mineralization is hosted within and directly adjacent to the Wernecke Breccia.

“Major iron ore copper gold deposit trends have recently been recognized for hosting cobalt and offer high-tonnage potential,” said Sheldon.

Go Cobalt now covers 6,000 hectares of the Wernecke Breccia in the northern Wernecke Breccia belt and has high grade copper (over 3%) and cobalt (over 9%) on the property.

“There is also anomalous gold and silver. Traditionally IOCG deposits will be polymetallic and offer a range of minerals,” explained Sheldon.

Drilling in 2020

Go Cobalt has started work on the Monster using satellite imagery and roped in geoscientist Rodrigo Diaz, an expert in IOCGs and remote spectral geology, for optimizing the mineral exploration process.

The CEO said Go Cobalt had over $300,000 budgeted to spend on the property this year “to get it drill ready for 2020.”

“We are also redoing some of the historic gravity surveys using updated elevation models,” said Sheldon. “We expect to extensively expand the gravity survey this summer. In addition, we are planning a site wide electromagnetic survey and continued mapping to follow up on historic zones of interest.”

Go Cobalt doesn’t require additional environment permits at this point in its exploration program.

“We have had discussions with Tr’ondëk Hwëch’in First Nation about our work on their traditional territory and will continue to keep them notified as we move forward,” said Sheldon. “The old road to the property is currently in disrepair and would need a special permit.”

The company will use one of the two air strips within 10 km of the property to stage its 2019 program. Go Cobalt says it has adequate funds for the mining season.

“We have about $1 million in the bank. Half of that is flow through funds to be spent this season. We also have about $1.8 million from outstanding warrants that are all ‘in the money’, said Sheldon.

Barachois Vanadium project

Some miners have really concentrated positions because they are focused on the short term. However, Go Cobalt is aware a complete absence of diversification can be painful for performance. Therefore, it also has a Barachois project, a sediment hosted vanadium-selenium-silver-lead-zinc prospect in the Gaspe area of Quebec.

The project covers 1,801 hectares where carboniferous aged sediments have been shown to host sedimentary vanadium-zinc-lead mineralization.

The latest, greatest utility-scale battery storage technology to emerge on the commercial market is the vanadium redox battery, also known as the vanadium flow battery. V-flow batteries are nonflammable, compact, reusable over semi-infinite cycles, discharge 100% of the stored energy and do not degrade for more than 20 years. These batteries use the multiple valence states of just vanadium to store and release charges.

“Barrachois helps us add another excellent battery metal in a good mining province. We are excited to further that project this summer,’ said Sheldon. “It is the polar opposite to the Monster. It has road access and is relatively flat topography.”

Investment case

Go Cobalt is leveraging the global shift from fossil fuels to renewable energy by banking on a basket of battery metal projects. Global demand for cobalt, nickel and silvery-grey, malleable vanadium has skyrocketed in recent months with high demand from electric car and laptop makers.

“We are giving our investors exposure to a variety of battery metal projects,” said Sheldon. “Our flagship in the Yukon is a polymetallic style prospect. It has high grade surface mineralization for both copper and cobalt.  Also, we have a Vanadium project in Quebec, and we are actively searching for a Nickel project in Quebec as well.”

This story was originally published at www.proactiveinvestors.com on February 15, 2019 and featured in the Public Entrepreneur magazine.

Learn more about Go Cobalt Mining Corp. at http://www.gocobalt.ca/.

Miranda Werstiuk on Women in Finance and Building Sustainable Mining Practices | #HashtagFinance

IBK Capital’s Miranda Werstiuk sits down with Grace Pedota to reflect on her career in capital markets, being a woman in mining finance (4:15), and to share her vision for sustainable mining practices utilizing blockchain (9:45) and more.

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Preview: Canadian Securities Exchange at PDAC 2014

PDAC_Logo_webIn just a few days, the 2014 edition of the PDAC conference will take place. Hundreds of exhibitors and thousands of attendees from all over the world are expected to converge at the Toronto Convention Centre to learn about and discuss the latest trends, thoughts and technologies impacting the mining industry.

Among the dozens of topics that will be discussed in various panels and workshops, one of the burning issues on the minds of many attendees will be the current capital raising climate.

As many readers may already know, the CSE has been actively engaging in the conversation about finding ways to enable junior mining and exploration companies to successfully weather the current capital raising storm.

From the exhibition floor to the podium, the CSE will continue in its efforts to promote innovative and pragmatic solutions for junior mining and exploration companies as well as for the industry as a whole.

Here is a rundown of the events and activities the CSE will be participating in at PDAC 2014:

Mineral Outlook Luncheon, Monday March 3rd

Ned Goodman, Deputy Chairman of the CSE and President & CEO of Dundee Corporation will be the keynote speaker at the (now sold out) Mineral Outlook Luncheon on Monday March 3rd from 12PM-2PM

An Exchange with the Exchanges: The Role of Stock Exchanges in Facilitating Capital-Raising, Tuesday March 4th

CSE CEO Richard Carleton will be a member of a panel of guests representing stock exchanges in Canada, Australia and Peru as part of the session entitled “An Exchange with the Exchanges: The Role of Stock Exchanges in Facilitating Capital-Raising.” This panel will discuss the state of the mineral exploration industry and the role that stock exchanges can play in helping companies navigate the current capital environment. For more information on this session at 10:30AM please click here.

PDAC Investor Lunch & Networking Event, Tuesday March 4th

The CSE is co-sponsoring a lunch and networking event along with MNP LLP, and Chitiz Pathak LLP.  This event will feature presentations from CSE-listed companies as well as opportunities for PDAC attendees to network with one another.  Click the following link for more details on the PDAC Investor Lunch which is to be held on Tuesday March 4th from 11:30AM to 1PM.

Making the Switch to CSE, Tuesday March 4th

For those interested in learning more about how to make the transition to the CSE, be sure to register for and attend the Making the Switch session  on Tuesday, March 4th from 1:15PM-2PM.

In addition to events, the CSE will also be exhibiting at booths 2542 and 2544 where attendees can meet with members of our team as well as talk to representatives from several CSE listed companies.

MTCC_Toronto

PDAC 2014 runs from March 2nd to March 5th in Toronto at the Metro Toronto Convention Centre. For more information, including registration information and schedules, you can visit their website at http://www.pdac.ca/convention.

If you are attending, be sure to say hi to our team in person or via Twitter. We look forward to seeing you there!

Benjamin Cox on “Why the CSE?”

This is a video that Benjamin Cox, Managing Director of Oreninc, produced last September espousing the virtues of a then-CNSX listing for junior mining companies – everything still applies under the new name of CSE.

The following views and opinions presented in this video are solely those of the author and do not necessarily represent those of CSE – Canadian Securities Exchange: