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Raiden Resources Ltd (ASX: RDN): Exploring for Copper-Gold in the Prolific Western Tethyan Metallogenic Belt in Bulgaria and Serbia and a Very Large Gold and Nickel-Copper Portfolio in Western Australia; Dusko Ljubojevic, Managing Director Interviewed

on 6/29/2021
We spoke with Dusko Ljubojevic, Managing Director of Raiden Resources Limited (ASX: RDN), a copper-gold exploration company, in the prolific and underexplored Western Tethyan Metallurgic Belt, in Bulgaria and Serbia. In addition, the Company has recently secured a very large exploration portfolio, in the Pilbara region of Western Australia, where Raiden Resources has a large gold, as well as a nickel-copper RPG portfolio of projects. The largest and flagship project, in the Pilbara, is the Arrow Project, where the Company is targeting a substantial intrusion related gold system, which is analogous to DeGray Mining’s Hemi gold discovery. Near-term plans include multiple drilling programs, both in Western Australia and in Europe. The investors can look forward to a very news-rich period from Raiden, in the next three to six months.

Al Alper, Jr.: This is Al Alper, with Metals News. I'm talking with Dusko Ljubojevic, Managing Director of Raiden Resources, a copper-gold-nickel exploration Company with projects in Eastern Europe and Australia. Dusko, can you give us an overview of Raiden Resources and what makes you unique?

Dusko Ljubojevic: From the onset, when we initially listed in 2018, we focused on generating world class exploration projects and targets in underexplored terrains, which have the potential for Tier One discoveries. Our first applications and projects were generated in Serbia, from where we naturally expanded both geographically and geologically to Bulgaria. We have amassed a very large and more importantly, a strategic portfolio, in this part of the world.

We focused on the Western Tethyan Metallurgic Belt because it is one of the world’s great copper-gold porphyry and epithermal provinces in around the world.

It's a unique belt, in the sense that it hosts a number of Tier One, world class copper, gold porphyries and epithermal deposits, yet remains incredibly underexploited, compared to its peers around the world. We've had Tier One discoveries happening, within a five-kilometer radius of existing mines, which have been in operation for over 100 years. That tells you that this is a region, which is still ripe for future discoveries. If you compare the Western Tethyan Belt to some of the other belts, including the South American copper belts, you will see that there's a huge discrepancy between the number of projects, which are in development and in production in South America, in comparison to Western Tethyan. Both of the belts are very similar geologically, have the same geological potential, but there is a discrepancy in number of producing and development projects.

In my view the answer lies in the fact that South American countries have been open to foreign investment, since back in the 1970s, whereas this part of the world is seeing its first phase, (10 to 15 years), of modern exploration, which is resulting in in some really, really exciting discoveries. Furthermore, we have also recently kept true to our aggressive exploration mantra, and we have established a very large exploration portfolio in Western Australia, in the Pilbara region. We have a very large gold portfolio of the projects, as well as a nickel-copper-PGE portfolio in a region, which is still producing world class deposits and has excellent infrastructure.

As a bit of background on the Pilbara, despite the fact that Western Australia is probably the bastion of modern exploration industry, the Pilbara has remained relatively unexplored, for major gold deposits. It was always considered to be prospective for smaller, but high-grade deposits. A recent discovery by a company called DeGray Mining, the Hemi Discovery in particular, has really changed the perception of the whole district, where it looks like Hemi will turn into a Tier One deposit. All it took was a different mindset, a different approach to exploration and targeting from the DeGray Mining. We are now applying the same targeting methodologies, across our own portfolio, in the hope of similar success.

DeGray Mining hasn't announced the resource yet, but it looks like Hemi will very likely be a Tier One resource. Critically, our Arrow Project, is on strike and approximately 30km from the Hemi deposit. It hosts all the geological factors, which contribute to the formation of Hemi as well. We have just completed our targeting work on Arrow, and we'll look to start drilling on this project in the near term.

Al Alper, Jr.: Yes, so tell us a little bit about your next steps.

Dusko Ljubojevic: We are just getting into the field season on both fronts, both in Europe and in Western Australia. What we have been doing, just over the last three to six months, is conducting a lot of targeting work, both on several projects in Eastern Europe as well as several projects in Australia. What we will be seeing, over the following three to six months, are multiple drill campaigns across, more than likely, two to three different projects in Serbia, as well as most likely the two key projects in Western Australia. What the investors can look forward to is a very, very news rich period from Raiden, in the next three to six months, and much of that expected to be from the drill bit, hopefully.

Al Alper, Jr.: What are the key projects in Eastern Europe?

Dusko Ljubojevic: Well, we're just completing the data review of Majdanpek West Project and we have gone back to the Donje Nevlje Project, where we had our initial drill campaign in 2019. We're looking to follow that up, with some near-term geophysics, to firm up some of the targeting work done earlier. Thereafter, the focus will probably shift to the Vuzel Project in Bulgaria. This project has some very, very exciting defined targets. We have high-grade gold and silver mineralisation, which has been defined and is drill ready, but has never really been tested properly.

So, in summary, we have some very broad and high-grade mineralised sampling intercepts at Vuzel It's a very, very exciting project. Majdanpek West Project is right adjacent to several producing mines and projects, which are going into development. We expect that we will be able to generate further drill targets, on that project, in the near term. Majdanpek West is actually a brownfield opportunity in the middle of a world class district.

We are right next to a major copper deposit, which is being operated by Zijin Mining, which just brings down the development hurdle for any target. Donje Nevlje, we've already done all the targeting work there, we just may want to firm up some of the targets and hopefully will be announcing the campaign there as well.

Al Alper, Jr.: Sounds like there's going to be a lot of exciting news! What are your two main projects in Australia?

Dusko Ljubojevic: Arrow will be the key project, on which we'll be focusing, in the near term. Arrow is on strike from one of the most prolific gold discoveries, probably in Australia for a very long time. It's quite impressive and a credit to the entire Team that we've managed to secure a transaction in one of the hottest districts in Australia, when the gold price was on a proverbial rampage at the same time.

Since acquisition, we have completed a geochemical sampling program, over a significant part of the project area and we have reinterpreted all the historical magnetic data, with the objective of defining the Hemi-like targets. As a result of this exercise, we were able to define numerous targets, many of which share a similar characteristics and magnetic signature, as the Hemi deposit. We also recently executed a very close space magnetic survey, in order to better define some of the small-volume intrusions. These seem to be one of the key components, which contributed to the formation of the Hemi Deposit. We are in the process of interpreting those results, which will hopefully lead to a definition of priority targets. We're hoping to see magnetic targets, which correspond to our geochemical anomalies. These types of targets would be very justifiably drilled as soon as possible.

At the same time, we will be focusing on the Mt. Sholl Project. This is an exciting nickel-copper-palladium discovery, which was made by a junior exploration Company, back in the mid-2000s. It has very, very enticing nickel and copper credits. But I think what really changes the story, within the scope of this project, are the palladium grades, which are very high and, considering that some of the intercepts are from surface, are very important. The price of palladium is significantly higher these days, from what it was back in 2007, when it would not have contributed to the overall economics.

It's really, really a good time to have a good sulfide nickel project. We can see a lot of upside from this project, as well. We are hoping to generate some new targets and test them in the near term to determine the potential for extensions to the known mineralization, on the two orebodies.

Al Alper, Jr.: That's excellent. Can you tell our readers/investors a little bit more about yourself and your Management Team?

Dusko Ljubojevic: I'm a Geologist. I've been with the Company since the initial days. I have worked across a lot of Africa, Canada, the US, Australia and I've spent some time in Asia, as well as a fair amount of time in Europe. I based myself here in Belgrade, Serbia. That has allowed me to be more than just a Managing Director of the Company, I'm very much a hands-on part of the Team here as well.

The rest of our Corporate Team consists of Mr. Martin Pawlitschek. Martin is an experienced and seasoned executive and a geologist as well. He has a lot of input on the technical front and provides a lot of corporate guidance and assists me to optimize the exploration programs.

Mr. Michael Davy, our Chairman, is based in Perth, Australia. He also does a lot of the groundwork for us, in terms of investor relations and administration of the Company. Mike has his finger on the pulse of the market in Australia and ensures that the Company is moving in the right direction and generating shareholder value.

We recently welcomed to the Board, Mr. Dale Ginn. Dale is the Chairman of Pacton Gold, which is a Company, from which we acquired a number of assets in the Pilbara, including the Arrow Project. Dale is also a very experienced geologist and Director. Very significantly, what his addition to the Board really means is that we can have this continuity in place as well. Dale founded the projects in Australia. He knows them well and he will ensure that any future programs are aligned with what the initial strategy was, and to leverage our program for success.

Al Alper, Jr.: Tell me a little bit about Eastern Europe, as an environment for exploration and mining.

Dusko Ljubojevic: Describing the projects, from a geological point of view, we are very comparable to some of the South American districts. But there are some vast advantages to being where we are. First of all, we are not at 4,000 meters, we are at 400 meters above sea level most of the time. We have a railway throughout most of the operating areas. We have power lines throughout most of our operating areas. Water is not an issue. Both Serbia and Bulgaria have several foreign exploration and development companies operating there. The mining laws, which have been set up over the last decade or so, are functioning well and can be tested. We have foreign companies bringing large projects into development. For example, a foreign company has brought two mines into production in Bulgaria – this is a key test of the mining law.

In Serbia, we have Zijin Mining, which has been very, very aggressive, with their M&A activity in Serbia. This has included multiple transactions, including the takeover of Nevsun Resources, transactions with Freeport and transactions with the state mining company RTB Bor. We have Rio Tinto, moving ahead on one of the biggest lithium projects in the world. It's an active environment, with long term players, which are building long term and large projects.

The mining law is investment supportive and has been upheld and proven over the last decade.

Al Alper, Jr.: That sounds excellent. Tell our readers/ investors about your capital structure.

Dusko Ljubojevic: We have approximately 1.2 billion shares outstanding that are fully diluted. Our main shareholder, at this time, is Pacton Gold, with 10% capital, as well as a number of additional key shareholders, who hold significant amount of shares. Board and Management are in there at about 5% of the Company, so well invested in the Company. It's a very tightly held stock, where the top 20 shareholders hold 58% of stock. We also have a good cash position, so we have the balance to see our planned programs through.

Al Alper, Jr.: Why don't you tell our readers/investors the main reasons they should be investing in Raiden Resources?

Dusko Ljubojevic: Well, I think when investors are looking at an exploration play, such as Raiden, obviously it is a risky game. One is looking for a very high return on this type of investment. If you're going to invest, if you're going to explore, explore for something big, which is exactly what we are doing. We are in a porphyry territory in Eastern Europe, and we're in one of the most exciting gold districts in Australia. The other thing to consider is the fact that we provide investors exposure to gold, copper and nickel, all of which are very attractive commodities and have a good outlook, over the near to medium term as well. I think the other element, which investors consider, when investing in the sector, is the CSompany binary or not. You want to make sure you are not investing in a one-drill-program. We have projects across two jurisdictions. We have multiple targets, which we're getting ready for drilling. I think the next six months should be enticing for investors because there is the potential to have a complete rerating of the Company off the back of exploration success.

Al Alper, Jr.: Yeah, it does sound like that. It's very, very promising. Is there anything else you'd like to add?

Dusko Ljubojevic: No, I just hope your readers/investors will tune in to follow the story. It should be an exciting three to six months for everybody.

Al Alper, Jr.: Yeah, it seems like you're going to have a lot of news flow coming up. Sounds like you've checked off all the boxes, you have a diverse set of targets, an experienced Team, good locations, and a mining friendly area. I'm going to look forward to the news flow coming out.

Dusko Ljubojevic: Yeah, thank you so much, I guess exploration is all about the basics, find the right geology, in the right jurisdiction, ahead of everybody else and then be aggressive about your program. If you do that, you're doing most things right and the rest is up to the gods of exploration.

Al Alper, Jr.: Thank you very much for your insights. We’ll publish your press releases as they come out so our readers/investors can follow your progress.

Dusko Ljubojevic
Managing Director

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