Interview with Steve Williams, President and CEO of Pasinex Resources, Limited (CNSX: PSE): Pinargozu Zinc Property in Turkey, Pasinex is in a 50-50 Partnership with the Well-Financed Turkish Company Akmetal

By Dr. Allen Alper, PhD Economic Geology and Petrology, Columbia University, NYC, USA
on 10/18/2016
Steve Williams, President and CEO of Pasinex Resources, Limited (CNSX: PSE) discusses their excellent improvement in performance this year. Pasinex Resources, Limited (CNSX: PSE) has found very high grade 30 to 50 percent Zinc in sulfides in its drill programs. Pasinex is in a 50-50 partnership with the Turkish company Akmetal, at the Pinargozu property in Turkey. Pasinex is currently significantly increasing production. Zinc prices have increased over 80%. Pasinex is a company to watch this year, as they have more news coming.

Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-chief of Metals News, interviewing Steve Williams, President and CEO of Pasinex Resources, Ltd. You've had some great news lately. Really fantastic! Great results you're getting!

Mr. Steve Williams: Thanks, Allen.

Dr. Allen Alper: Could you tell us a bit about what's happening and all the good results you're getting in Turkey with zinc?

Steve Williams: We've been working the zinc project on the Pinargozu property in Turkey for about three years now. We've been, what's called, "following the noodle," continuing to follow the mineralization and follow it deeper.

The latest news we put out was a summary of our drilling up to May of this year. We've started to strike very high grade sulfide roots of the system. We were seeing intercepts of several meters of up to 62 percent zinc in greater intercepts of 30, 40, 50 percent zinc. Really exciting intercepts!

It's exciting because it's high grade and we are now seeing sulfide roots. So it's not just an oxide system. It's going into sulfides. It gives us a lot of hope that we're going to see more of this and obviously we continue drilling.

Dr. Allen Alper: That sounds great. Could you tell me a bit more about the properties, the resource, and your plans going forward?

Mr. Steve Williams: Yep. The property that we're taking about is called Pinargozu. It's part of our 50/50 joint venture with Akmetal, a Turkish mining company. We acquired the property in 2013. It's definitely a carbonate replacement type zinc mineralization.

We are mining there now. We started mining late 2014 and we mined through 2015. We are planning to expand our mining production. Through 2015, we were mining something around sixty tons a day, so we mined about 11,000 tons in 2015. Up to the middle of this year, we mined a bit over 9,000 tons of high grade direct shipping ore. I think the average grade is about 34 percent zinc up to the end of the first half of this year.

Our intent is to expand our mining there. We've been expanding our internal resource, our internal mineralization. As result of that, we intend to expand our mining and our production.

We expect this to be a sulfide system. We think there's a lot more sulfide to be found. We think the roots can continue to go deeper and deeper. We're still relatively shallow at the system. We're going to be focusing on continuing to expand the resource by doing a lot more drilling.

Dr. Allen Alper: Wow! That sounds great! Could you tell us a bit about your background, your team’s background, your board’s and more about your partner?

Mr. Steve Williams: I'm originally a metallurgist. Metallurgy is big, the processing side of the game. I graduated from the Western Australian School of Mines, Kalgoorlie, Australia, in the 70s and I've been in mining all my life. I have an MBA from Tulane University in Louisiana. Yeah, I've been in mining all my life and love it. I think it’s a lot of fun and really, in mining, it's about ultimately, building a mine. Taking a project and building a mine. That's what we're doing right now. Pasinex is rooted in its technical strengths. Our team has a number of technical professionals: metallurgists, geologists, and mining engineers. Six of our board members are also technical professionals and that reflects the fact that we're a technical group that really wants to use our technical knowledge to build a mine, and then ultimately, using the mine to build a company. Our strength is our technical knowledge.

Our partners, Akmetal, are part of a large Turkish conglomerate called the Kurmel Group. The Group is in mining, But also in agriculture, textiles, and real estate. They're a true, private company conglomerate, but their roots are mining. They started in mining and mining is still a big part of their business. Like us, they love mining and think it's a lot of fun. They're actually a good fit. They're a natural fit for us. We're both about building a mining company. We're both rooted in geology, rooted in exploration. We're very aligned in terms of vision and strategy. They're a good company. They get in and we, Pasinex folks, focus particularly on the technical aspects of the projects. They focus on the get in and do it things. The mining. The supplies. The people. All that you need to build a project.

Dr. Allen Alper: That sounds very good. Could you tell me a little bit about your Share and Capital Structure?

Mr. Steve Williams: We have something on the order of 112-113 million shares out, which is a lot, but the good thing is, even after tough times in 2013, 2014, 2015, this year the market is picking up. Our Market Capitalization is picking up so I'm very pleased with that. The share price is going up and our capitalization is going up. That reflects the fact that despite the tough times, we're building our project and now we're starting to get some recognition in the market for that.

We're listed both in Toronto and in Frankfurt (on the second tier listing in Frankfurt). We actually find about 3/4 of our liquidity, our trading is done in Frankfurt, so we're getting a lot of traction in Germany and Austria with our story and that's good, I'm very pleased with that. The story is doing well over there.

Dr. Allen Alper: Tell me, how it is operating in Turkey?

Mr. Steve Williams: As you know, a month or two ago, the Turkish government weathered an unsuccessful coup from a faction of the Turkish army. But Turkey is a great country. It has 78 million people. It's the 16th or 17th largest economy in the world. Turkey is going to be a big part of the world going forward. It's a very strong economy. It's critical in the Middle East, it's critical in terms of being a major supplier to Europe. It's a really strategic, critical, and significant country. There have also been a lot of changes in Turkey commercially. They've really opened up commercially. Since about 2010, they've opened up and improved their commercial code. They've opened up the ability to invest in Turkey. All of that is open for international business.

These are difficult political times in the Middle East now, but my view is that Turkey is a strong, strategic country. This is going to be a country, from an investment point of view, from a business point of view, that not only is not going to go away, but is going to be strong long term. On a personal level, there are cultural differences between Canada and Turkey. We see some things differently. But what is important at our level and with our partnership is that we're very aligned on the vision. We have to work around our differences, but recognize that our strength comes from our shared vision.

Dr. Allen Alper: That sounds very insightful. What are the primary reasons our high-net-worth readers/investors should consider investing in your company?

Mr. Steve Williams: Like a number of people, I still think we are grossly undervalued. I think we have an exciting zinc project. I think there's a lot more opportunity here, both within the mine and around the mine, and we can add a lot more zinc opportunity here. I think there's a lot of upside. I think we're just beginning. I mean, we're producing and we're selling. Zinc prices are going up. The Zinc price is US$1.05 per pound now. It's up from its low of, about US$.60, nine months ago, so it's come up a lot. A great metal! A great price! We're producing as the metal price is going up.

Coming back to the basics, I think we're undervalued.

Dr. Allen Alper: That sounds like a very good reason for our high-net-worth readers/investors to consider investing in your company.

Mr. Steve Williams: Yeah, I think so. We're active in the field. We have drills running. We're looking at trying to increase our production. So you know, I would say that we should have more news coming to the market. Have your people keep their eyes peeled on updates from Pasinex because I expect there will be updates.

Dr. Allen Alper: Sounds great!

http://pasinex.com/

82 Richmond Street East,
Toronto, Ontario, Canada
+1 416 861 9659
Steve.williams@pasinex.com