Explor Resources Inc. (TSX: EXS / OTCQX: EXSFF) Drilling to Confirm Gold, and Base Metals Discoveries at Their Ogden and Kidd Creek Properties, Timmins Mining Camp, Canada
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By By Dr. Allen Alper, PhD Economic Geology and Petrology, Columbia University, NYC: https://www.linkedin.com/in/allen-alper-84432231
on 3/22/2016
EXPLOR Resources Inc. (TSX: ESX / OTCQX: EXSFF) www.explorresources.com has started exploration and diamond drilling on their Ogden GOLD project, and preparing to drill their Kidd Creek BASE METALS project. Both are situated in the Abitibi Greenstone Belt, historically, one of the most prolific mining regions in the world. Over the years, the ‘Abitibi’ has produced more than 180,000,000 ounces of GOLD, and more than 450,000,000 tons of COPPER-ZINC ore.
Chris Dupont, P.Eng., President and Director of EXPLOR Resources Inc.(TSX: EXS/ OTCQX: EXSFF), met with Dr. Alper during the Prospectors’ & Developers’ Association of Canada (PDAC) Annual Convention in Toronto, Canada in early March to discuss EXPLOR’s Exploration & Development plans for 2016 on their GOLD and BASE METALS properties in the ‘Abitibi’ region. Explor has 4 active exploration properties and 16 properties in inventory as shown below.
Dr Alper: How has the Timmins Porcupine West project developed since we last talked together back in 2014?
Mr. Dupont stated, “As you know, we’ve spent a number of years drilling a total of 116 drill holes at our ‘Timmins Porcupine West’ project and found significant gold in 113 of those holes. To date, we have identified a 2000 meter (over half a mile) strike length, ‘open’ at both ends and at depth. What that means is we never found the end points of the GOLD deposit. We have conservatively estimated a resource of 1,000,000 ounces so far. We then put all our drilling data, along with all historic drilling data back to 1928, into an industry standard computer modelling system, and were quite surprised when the system suggested the deposit, could contain 20,000,000 to 30,000,000 ounces of GOLD, and possibly even more.”
Dr. Alper: Further work is being performed at the Timmins Porcupine West property by Teck Resources, who can earn up to 70% of the property by spending a total of CDN$12,000,000 on further exploration, within certain time constraints?
Mr. Dupont: That’s correct Dr. Alper, they must spend a total of CDN$8,000,000.00 to earn a 55% interest in the property. There is no partial earn in. They can then earn in an additional 15% by spending an additional CDN$4,000,000.00. They must spend a total of CDN$12,000,000 before they have earned their 70% interest. The project then goes into a joint venture mode, with each party contributing their fair share.
Mr. Dupont stated further, “Given our experience, we believe the geologic structure drilled at the ‘TPW’, extends onto the company’s adjacent Ogden Township property 100% owned by Explor. We have been active in this region for many years, so we do our utmost to acquire properties that we believe are properties of merit and first rate prospects for GOLD & BASE METALS discoveries. With a few exceptions, early into the Timmins Porcupine West drilling campaign, we found that the deeper we drilled, the higher the GOLD grades obtained. We used various geophysical techniques, geological, geochemical modelling and diamond drilling to enhance and better define the model and hence the TPW gold bearing structure. That’s what we are doing, and will continue doing on the Ogden Township GOLD property moving forward. After all, the Timmins Mining Camp doesn’t only have one GOLD deposit. We truly believe it has multiple GOLD deposits as evidence by the discoveries over the last 100 years. As can be seen below, most of the Gold mines in the Timmins Mining Camp are located in the splay fault corridor just north of the Porcupine Destor Fault Zone (PDFZ) as shown below:
It should be noted that the area west of the Burrow Benedict Fault and west of the PDFZ in Tisdale and Deloro township produced over 65,000,000 oz of gold. Explor’s property in red, west of the Matagami River fault and North of the PDFZ has similar geological structure and Gold Mineralization.
Dr. Alper: I understand that in the Timmins Mining Camp the Porphyries play a significant role in the gold mineralization.
Mr. Dupont: That’s correct Dr. Alper as can be seen below. Every significant gold mine in the Timmins Mining Camp has been associated with a Porphyry structure. The greatest of these were the Hollinger/McIntyre Mines which produced 30,000,000 oz of Gold. The Hollinger was on the south side of the Pearl Lake porphyry and the McIntyre was on the North side of the Pearl Lake Porphyry. The Dome mine which produced over 18,500,000 oz had the Dome Porphyry. Explor has 80% of the largest undeveloped Porphyry (Bristol Porphyry) in the Timmins Mining Camp.
Dr. Alper: I understand that you are also planning an Exploration program near Glencore’s Kidd Creek Mine.
Mr. Dupont: That correct. Our other project for this year, the Kidd Township property, is immediately adjacent to the Glencore Kidd Mine. Let me quote from the Company’s website, ‘The Kidd Creek mine has produced at least 130 million tons of base metal ore since it started production in 1966 (Dr. Alper: valued at roughly $60,000,000,000). A series of untested airborne anomalies have been observed on the Company’s property. A review of existing data has revealed a series of linear airborne anomalies with an east-west trend.’ We believe in the 'cluster effect of VMS deposits' throughout the Abitibi as well as other areas of Canada. For example: The Noranda Mining Camp (17 VMS deposits), and The Bathurst Mining Camp (43 VMS deposits). In preparation for diamond drilling, we have completed some additional geophysics, and are presently completing some very careful interpretation of the information at hand, both recent, and historical. Within the next 4-6 weeks, we will have determined the very best drilling targets & we will start drilling the Kidd Township Project with the intention of finding the NEXT Kidd Creek Mine. Should we find the ‘Massive Sulphides’ that we are looking for, we may have discussions with Glencore, the owners & operators of the historic Kidd Creek Mine, given the proximity of our property to theirs. Speculating on what kind of deal might evolve would be premature at this time. A great deal of work needs to be completed before we get to that stage, but we are moving forward with tremendous confidence that we will find what we are looking for.”
Dr. Alper, With reference to the map above, the Company has an impressive, and enviable array of exploration properties in the Abitibi Greenstone Belt on the books.
Mr. Dupont responded, “The Abitibi Greenstone Belt has a long history of large deposits of GOLD & BASE METALS. Some of your readers may recall The Hollinger GOLD Mine, The McIntyre GOLD Mine, and the Dome Mine (In production since 1909 and just recently closed in 2015). With those, and others in mind, before making a property purchase, we review as much historical data as we can get our hands on. If drilling has been done in the past, we’ll analyze the information thoroughly and build a model. Given the very difficult times over these past five years, many prospective acquisitions have come our way from other exploration juniors, and prospectors. Thanks to the ongoing support of loyal shareholders, we have had the means to ‘cherry pick’ these offerings, and the result is we have collected an exceptional group of promising prospects moving forward, the envy of many other junior exploration companies in the Timmins Camp.“
Dr. Alper, You’re obviously a Professional Mining Engineer. Tell our readers a little about your mining career, and leadership abilities.
Mr. Dupont, “I have been in the mining business for more than 40 years now. I started as an underground laborer, on the 1450 foot level at Brunswick Mines in Bathurst NB. In the early years, I also worked as a driller, longhole loader, timberman, mine rescue and in the ventilation department. Noranda Mines, a prominent mining company back then, sponsored my education to obtain my Mining Engineering Degree. I worked at various Noranda Group companies including Brunswick Mines, Heath Steel Mines, Mattabi Mines as well as Mining Corporation. This gave me a well rounded training and practical education in Mining. About 20 years ago, I started getting involved with junior exploration companies, and truly enjoy my work in this sector. Over the years, I’ve probably walked most of the Abitibi, and turned over most of the rocks along the way. As the Company’s main focus has always been in the Abitibi Greenstone Belt, or the Timmins Camp, I think that my experience in this region, and my professional background satisfies the leadership qualifications needed for Explor. Over the years, and especially these past ten years, I feel my dedication, enthusiasm & passion for what I do with & for Explor is well known to the Company’s diverse shareholders.
Further, I’d like to add, Explor’s highly experienced and qualified staff are well known throughout the Timmins Camp, and indeed, throughout the industry. The team, collectively, knows all the drilling companies, and all the variety of services required to successfully achieve the Company’s ongoing objectives, most on a personal, first name basis.
Important to your readers as well I would think, is the Company’s focus on GOLD & BASE METALS. We do not stray from that focus. We don’t go looking for rare earth elements, lithium, diamonds or anything else that might be in the investment communities’ ‘flavor of the month’. We have always stuck to what we know best…GOLD & BASE METALS Exploration.”
Dr. Alper, What about the Company’s Market Structure?
Mr. Dupont, The Company has enough financing to achieve the objectives we have been discussing. As of this moment we have fewer than 100 million shares issued. We have approximately CDN$1,500,000 in the bank for this year’s drilling programs. Our shares are trading in the CDN$0.15-$0.20 range, with a significant improvement in liquidity over this time last year.
Dr. Alper, Why should our readers consider an investment in Explor?
Mr. Dupont stated: One of the main reasons that people are investing in our Company is that we have the proven ability (Timmins Porcupine West) to find the GOLD & BASE METALS we are looking for, drawing on our long experience in the region to grow shareholder value over time. With the price of GOLD increasing in value this year, interest in the sector has been growing accordingly. We are truly optimistic that GOLD may see USD$1,400 or USD$1,500 by this fall. Given the nature of the GOLD assets, and prospects that the Company holds, we're encouraged to believe the stock price should move forward accordingly. The big ‘wild card’ for Explor this year is the intense renewed interest of the major mining companies in GOLD generally, and the Timmins Mining Camp, specifically. Lake Shore Gold, our friends, and neighbors west of our Timmins Porcupine West GOLD find, are considering, and voting on, a merger with Tahoe Mining, for example. M&A and Joint Ventures are becoming a more frequent thing throughout the region. During the course of the four day PDAC event, we were visited by Goldcorp; Teck; Investment Funds from all over the world; Investment Dealers; Mining Analysts, and hundreds of private investors. Most of us at Explor have significant holdings in the Company, and continue to add to those positions. We think Explor is a good investment looking forward, and we encourage your readers to visit our website, or feel free to call us. We would be happy to address any questions, clarifications, or concerns they might have.”
Disclosure: Alper family owns Explor stock.
http://www.explorresources.com/
EXPLOR RESOURCES INC.
15 Gamble St. E., Suite 204
Rouyn Noranda, QC
Canada J9X 3B6
CHRIS DUPONT, PRESIDENT & DIRECTOR
Tel: (819) 797.4630
Toll Free: 1.800.388.8668
Fax: (819) 797.6050
info@explorresources.com
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