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EXPLOR Resources Inc. (TSX-V: EXS, OTC PK: EXSFF, FSE & BE: E1H1): GOLD Miner Exploring and Developing in the Historically Prolific Timmins Mining Camp in Ontario, Canada; Interview with Chris Dupont, President & CEO

on 5/2/2019
Explor Resources Inc. (TSX-V: EXS, OTC PK: EXSFF, FSE & BE: E1H1) is a Junior GOLD and Base Metals Exploration Company, based in Quebec, Canada. The Company is currently focused on developing their Timmins Porcupine West (TPW) GOLD Resource flagship project, located in the Timmins Mining Camp of the Abitibi Greenstone Belt, in the Province of Ontario. We learned from Chris Dupont, President, CEO, and Director of EXPLOR Resources, that the TPW has at least a million ounces of GOLD (NI 43-101), and is preparing to go into production, starting with an Open Pit. The Company’s plan calls for actual GOLD production, within roughly 18 months, extracting anywhere from 2,000 to 3,000 tons of ore a day from the Open Pit, producing about 62,500 ounces of GOLD per year. Further, the proposed underground operations will increase production to some 140,000 ounces of GOLD per year from both underground and open pit, by year seven.


Timmins Porcupine West GOLD Resource Drilling Platform

Dr. Allen Alper: Chris, really great to be speaking with you again. We have been following your progress for quite some time now. Before we discuss your TPW production plan, I wonder if you could give our readers/investors a quick overview of the Company.

Chris Dupont: EXPLOR Resources is considered a ‘Junior’ Exploration Company, although we believe that general designation will see an upgrade as we implement our production plans at the Timmins Porcupine West GOLD Resource (TPW). The Company has been operating in the GOLD & Base Metals Sectors since 2005. For some time now, we've been concentrating our efforts on our Timmins Porcupine West GOLD Project preparing for actual GOLD production. The Company also has 14 other properties, scattered along the ‘Porcupine Destor Fault Zone’ (PDFZ), prolific in both GOLD & Base Metals mines dating back over 100 years. Although we have spent roughly $26 million CDN to date delineating the GOLD Deposit on the TPW Property, we have also done extensive drilling on many of our other properties. Most notably, our drilling for mineral rich VMS Deposits (Volcanogenic Massive Sulphides) on our extensive Kidd Creek property in Ontario and the Chester property in New Brunswick have generated some very promising results. All the details are available on the Company’s website at www.explorresources.com.

Dr. Allen Alper: I didn’t realize the Company had spent that kind of money delineating the Timmins Porcupine West GOLD Project. Could you please offer some details on your plans moving forward at that property?

Chris Dupont: We are at the stage, where we can commence Open Pit production operations in an area of the 2,000 meter long structure, we have called the ‘Central Pit’ area. Diamond Drilling has confirmed we have about 250,000 ounces of GOLD in that portion of the deposit, near surface. We want to move slowly, and very carefully, ensuring aboriginal and environmental requirements are fully respected. Along with the required permitting process, we intend to perform additional Delineation Diamond Drilling, in order to quantify the ‘Central Pit’ resource, further. The next item on our schedule is to remove the overburden and produce a ‘Bulk Sample’. Realistically, we feel that we will be producing the Bulk sample within 18 months.

The proposed 50,000 tonne Bulk Sample will contain about 3,500 ounces of GOLD, worth approximately $6 million CDN (@$1,200/oz.). Additionally, the Sample will also provide further confirmation of mining method, as it relates to the production and development for the future Open Pit. The Bulk Sample leads to ‘Open Pit’ production at a rate of 2,800 tonnes of GOLD bearing ore per day. That production rate will yield approximately 62,500 ounces of GOLD annually. That production rate will be kept constant over the ensuing five years.

By that time, the pit will be approximately 290 meters deep. From the 270 meter elevation, a spiral ramp will be driven to access the underground resource and mine the GOLD bearing ore under & adjacent to the Open Pit. Concurrently, Explor will continue to expand the Open Pit to both the northeast and southwest. This will maintain the Open Pit production rate of approximately 62,500 oz. per year. As the deeper resource is developed, we expect to add 77,500 oz. of GOLD to our annual production figures.

Summing up, by year seven, we expect that Explor will be producing a total of about 140,000 oz. of GOLD per year from both the underground and Open Pit operations.

Dr. Allen Alper: Gosh, even at $1,200/oz., that’s some very serious revenue. If my numbers are correct, $75 million US, climbing to $168 million US by year seven? That sounds very good. Excellent! Could you tell our investors more about the geology of the region you're in, and why it's so important?

Chris Dupont: The Timmins Porcupine West GOLD Resource is a ‘porphyry-hosted’ GOLD mineralization. Geologically speaking, a ‘porphyry’ is the heat engine, which generated fractures in the rock, in which the GOLD was deposited millions of years ago. Our TPW deposit is quite typical of other major GOLD mines along the fault line it sits on. It very much resembles the historic Hollinger/McIntyre GOLD mines, which we, in turn, used as a basis for our deposit modelling. Both of those two GOLD mines, Hollinger and McIntyre, were also porphyry-hosted GOLD deposits. The Hollinger produced 19,328,000 oz. of GOLD from 1910-1968. The McIntyre produced 10,745,000 oz. of GOLD from 1912-1988. I would like to point out that the porphyry, our deposit sits within, is estimated to be approximately five times larger than the one that generated those two prolific mines. The Porcupine Destor Fault Zone (PDFZ) has been traced from Timmins, Ontario to Val-d’Or, Quebec, a 331km, or 206 mile geologic structure. Most of the GOLD deposits in the Timmins Mining Camp are associated with, and generally on the north side of the PDFZ.

To date, our drilling activities on the TPW property have confirmed the GOLD bearing zone extends to over 2,000 meters of strike length and is ‘open’ on both ends. Basically, the farther out we go, the more GOLD we find. The ‘Deposit Modelling’ we have done thus far indicates the GOLD extends to a depth of roughly 1800 meters. Drilling to date has confirmed GOLD bearing ore to a depth of 900 meters, with improving grades the deeper we go. Given our drilling results to date, we are convinced this mineralized system has the capacity to produce a huge amount of GOLD. The model indicates a potential of at least 20-30 million ounces of GOLD in this structure.

Typically, the GOLD mineralization zones, throughout the deposit, have an average thickness of about 3.5 meters. Some areas blossom out to as much as 18 meters of thickness. To date, we have identified six major ‘Shear Zones’ where the GOLD concentrations have been found.

Dr. Allen Alper: Excellent! Could you tell us a bit more about the TPW gradings?

Chris Dupont: Sure. We expect the initial overall GOLD grade from the Open Pit to be approximately 2.6 grams of GOLD per tonne. Based on all our drilling, the deeper we go, the richer the GOLD gradings get. The deeper identified deposit grades at 5-7grams per tonne. We had an extensive metallurgical analysis conducted on the drill core from the planned Open Pit area and discovered that the GOLD bearing ore is easily recoverable by way of ‘flotation’ process. According to the experts, Explor can expect a GOLD recovery rate of 92 to 95 percent. Additionally, the ore is very clean, with no detrimental minerals to cause any environmental concerns. We are absolutely thrilled about that. One of the really interesting facts about our GOLD deposit, discovered during the metallurgical testing, is that very, very fine ‘free’ GOLD, invisible to the naked eye, represents 38 percent of the deposit. This was a very pleasant surprise. At the front end of the proposed mill then, we are going to add a ‘Gravity Separation Circuit’, which will collect up that free gold before it goes into the Main Mill Flotation Circuit, thus ensuring maximum GOLD recovery. This process will produce a ‘Flotation Concentrate’, which we can then either process ourselves in order to recover the GOLD, or send the Concentrate to a smelter to produce GOLD bricks to our specifications.

Dr. Allen Alper: That is really interesting. I remember looking at some of your core samples. As impressive as those were to look at, it is hard to believe over a third of the GOLD is invisible! So, good economic grades. What’s the plan from here?

Chris Dupont: At this stage, all our Exploration Permits are in place. We have applied for the mandatory Development Permits, from the government, and expect to have their blessing shortly. The Province of Ontario, Canada is a very friendly mining jurisdiction, so we expect a high degree of cooperation from them. While that process runs its course, we are evaluating various funding sources, and proposals from financiers around the world. Unlike the typical mine development costs running into the hundreds of millions of dollars, we can put the TPW into full scale production for a modest estimated US$40 million. Our funding preferences are a Joint Venture Agreement, or a Loan Agreement, purposely avoiding any further stock dilution. Once the money is in place, and we think we are very close, we will start ordering equipment, and methodically, taking all the necessary steps required towards production.

Dr. Allen Alper: Amazing you can get into production, with such a small capital outlay. I know we’re very early on here, but any idea of Mine Life at this stage?

Chris Dupont: The TPW deposit modelling is based in large part on the Hollinger and McIntyre Mines. Their ultimate deposit structures typify GOLD deposits along the fault line the TPW also sits on. As actual production commences, further delineation drilling will be ongoing to extend the known Strike Length, as well as the known depth. The current potential of 20 to 30 million ounces is very realistic, based in fact, as well as regional history. Given the Hollinger Mine produced GOLD for 75 years, and the McIntyre Mine for 76 years, we are estimating a Mine Life of seventy years of production.

Dr. Allen Alper: Seventy years! Wow! You know, I don’t often invest in the Junior Mining Sector, but I do own some Explor shares. Can you offer some thoughts on the equity, or stock side of the Company? Why should our readers/investors seriously consider investing in Explor Resources Inc.?

Chris Dupont: Well, unlike 98% of other ‘Junior Resource’ companies, Explor is on the verge of going into production at the TPW. Within about 18 months, we expect to be in full scale production, representing a massive revenue stream into the Company’s Treasury. With all due respect to earlier estimates, we believe GOLD will escalate in value to the US$1,450 range by the end of this year alone. Virtually all of the leading experts are in agreement with this projection, although a few feel it could be even higher than that. Further, as mentioned briefly earlier, Explor has 14 other properties of merit fully described in the Company’s website.

Given what we have in assets, and our efforts toward production at the TPW, we are astonished with our current share price, trading at pennies. We believe close to 75% of traditional junior resource Venture Capital has migrated to the Cryptocurrencies, Blockchain technologies, and the rapidly emerging Cannabis industry. So, our entire sector is severely depressed as a direct result of that. Further, of course, we have a relatively low price on GOLD. We recently employed KPG Capital & Co in New York to complete an Independent Research Report on Explor and the Timmins Porcupine West GOLD Project. They concluded that our stock should be trading at the very minimum of 17 cents CDN as things stand right now. So, according to their seasoned expertise, we are severely under-valued. As a major shareholder myself I couldn’t agree more. As I’m sure you’ll agree, given our many decades of experience with the GOLD markets and more than ever in the past 7-8 years, we are on the verge of a new ‘Bull’ market in GOLD. We at Explor believe that investors will return to the sector in the near term, generally associated with a rising price in GOLD. We’re optimistic that your readers/investors will see the value in Explor as we see it. As I’m sure you recall, in 2010, when we climbed to historic highs in a matter of months, GOLD, coincidentally, climbed to US$1,900/oz. As you & I are also aware, as we get closer to actual production, and word gets around the investment community, equity price action will undoubtedly intensify exponentially.



Dr. Allen Alper: Do you feel you have the right people, and resources, to undertake such aggressive plans moving forward?

Chris Dupont: All of our Directors, Senior Geologists, and key personnel have been with Explor for many years. All of them have 30 to 40 years of experience and, all are very good at what they do. I have tremendous confidence that we have the right team to get the job done. We are very well established, within the mining community, especially in the Timmins area, where the TPW is located, so any ‘outside’ resource we need, moving forward, is readily available. Here’s a little on the key personnel:

    Chris Dupont, P.Eng. President and Director, EXPLOR Resources Inc.- Prior to taking his mining degree, in the early 1970’s Chris worked Underground at Brunswick Mining, New Brunswick, Canada in various positions. Those included laborer, timberman, long hole loader, powderman, driller, mine rescue and finally in the ventilation department. As a Mining Engineer, he worked for Mining Corporation, a Division of Noranda Mines as a Senior Mining Projects Engineer. He completed feasibility studies for Noranda, as well as being involved in the development and construction of Mining Projects. He gained experience in Tenders and Contracts for Mine Development. He served as Chief Engineer for Exall Resources, as well as Project Manager for Luzenac Inc. He has been involved with junior public companies for the past 20 years. His experience includes President and Director of Kayorum Gold Mines from 1992 to 1997, Director of Fieldex Exploration from 1997 to 1998 and Vice President and Director of TOM Exploration from 2000 to 2006. Chris has been President & CEO of Explor Resources Inc. since 2005.

    Geoff Carter, P. Eng., Director, EXPLOR Resources Inc.- Geoff is a Mining Engineer and has been active in the mining industry since the late 1960’s and involved with public companies for more than 30 years. He has held positions at Anglo American, Hudson Bay Mining & Smelting, and was Vice-President at Inspiration Coal. He has also been a Director and President of Ourominas Minerals, Director of Bankers Petroleum and Trans Atlantic Enterprises. Since 1990, Geoff has been involved in independent research, due diligence reports, NI 43-101 reports and valuations, as well as General Corporate Advisory for the mining industry.

    Mario Colantonio, B.Sc., Director, EXPLOR Resources Inc.- Mario is a civil engineer and has been active in the mining industry since the mid 1980’s. He received his B.Sc. degree in Civil Engineering from Queen’s University in 1985. His primary focus has been with the engineering and management for capital and maintenance projects, mainly for mill/mine infrastructure including feasibility studies. He has held senior engineering management positions for AMEC and has been President of a privately-owned engineering consulting firm in Timmins since 2004.

    Gerhard Merkel, Director, EXPLOR Resources Inc.- Gerhard has extensive international experience as a CEO and CFO. His past experience includes being the CEO and CFO of Metex (Germany) Trading Company from 1994 to 2005. From 2005 to present, he has been CFO and COO of CGM Import-Export Ltd (Portugal). This company deals in the wholesale and retail of catering equipment. They are also involved in the production of catering accessories.

    Rodrigue Tremblay, BAA has been a self-employed consultant since May 1996. Mr. Tremblay received a bachelor degree in administration, in May 1972, from the University of Ottawa, as well as a master’s degree in management of corporations in June 1996 from the University of Québec in Abitibi-Témiscamingue (UQAT). He has been active in the business community for more than 40 years. Mr. Tremblay was a director of Exploration Aiguebelle Inc. (now IAM Gold Inc.), a mining exploration company, and CFO of Brunswick Resources Inc. from March 2014 to December 2018. Mr. Tremblay has been CFO of Explor Resources Inc. since March 2014.

    Mrs. Julie Godard, is a lawyer specialized in Mining and Securities Law and has been a member of the Quebec Bar since 1985. She received a Bachelor Degree in laws from Laval University in Quebec City in 1984. She has been running her own practice in Rouyn- Noranda since 1991. Ms. Godard has been Corporate Secretary of Orex Exploration Inc. (now amalgamated with Anaconda Mining Inc.) from February 1989 to May 2017 and of Abcourt Mines Inc. since December 2006. She was Corporate Secretary of Maudore Minerals Ltd. from October 1996 to November 2015. Mrs. Godard has been Corporate Secretary of Explor Resources Inc. since December 2011.


Dr. Allen Alper: You have a very impressive team there!

Chris Dupont: Thanks for interviewing Explor Resources Inc. today for Metals News, Dr. Alper. We appreciate your ongoing support.

Dr. Allen Alper: Very promising! We will continue to publish your Press Releases as they come out, so our readers/investors can follow your progress.

http://explorresources.com/

Christian Dupont, President
Tel: 888-997-4630 or 819-797-4630
Fax: 819-797-1870
Email: info@explorresources.com










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