Argo Gold (CSE: ARQ): Focused on High-Grade Gold in Northwestern Ontario; Interview with Judy Baker, CEO
|
By Dr. Allen Alper, PhD Economic Geology and Petrology, Columbia University, NYC, USA
on 8/8/2019
Argo Gold (CSE: ARQ) is a Canadian company focused on gold exploration projects in central and northwestern Ontario that have indications of economic viability. All of Argo Gold’s projects are 100% owned. The high-grade flagship, Woco Gold Project, is located 1.5 kilometres south of the past-producing Uchi Mine in the Birch-Uchi Greenstone Belt, which also hosts the multi-million ounce Springpole open pit and Dixie Lake deposits. We learned from Judy Baker, CEO of Argo Gold, that they completed their first drill program at Woco, in the first half of 2019, and a full scale biogeochem program is now underway. Trenching at known showings is also planned.
The Woco Gold Project
Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-Chief of Metals News, interviewing Judy Baker, who is the CEO of Argo Gold. Could you give our readers/investors, the background of Argo?
Judy Baker: Sure. Argo Gold was founded in 2016. The founding team is Delio Tortosa, Bill Kerr and myself, Judy Baker. Our business plan is to focus on high-grade gold projects in Northwestern Ontario.
We saw Northwestern Ontario, with hundred year mine lives in the Red Lake Camp and not a lot of exploration activity relative to the Abitibi greenstone belt, so we started acquiring projects in 2016.
The flagship asset is the Woco Gold project which consists of the Woco and Northgate deposits and numerous gold showings including the Rain gold prospect, which is being sampled in the currently active exploration program. High grade gold intercepts in winter 2019 confirmation drill program by Argo Gold includes 132 g/t Au over 1.8 metres and historic drilling by St. Jude Resources in 1993 includes; 139 g/t Au over 2.1 metres, 65 g/t Au over 1.83 metres, and 62 g/t Au over 3.6 metres at the Woco Vein. Given these compelling high-grade drill results and recent exploration success in the Birch-Uchi Greenstone belt Argo Gold is extremely encouraged to advance exploration activities to improve understanding of the high-grade mineralized structures of mineable widths near surface and at depth and the potential for a multimillion ounce discovery at the Woco Gold Project.
Woco is a typical narrow quartz carbonate vein with fine to coarse visible gold and minimal sulphide mineralization near surface that can be an underground mine however more is expected to be learned about this deposit and feeder source of high-grade gold mineralization as exploration work progresses. The Woco project belt should be described here 5 km long by 2.5 km wide between the HST Vein and Uchi Break historically covered with minimal grassroots exploration using modern innovations in knowledge, tools, and technology. Mineralization thought to be associated with EW and NS structures and their intercepts. What is interesting is that historically these narrow high-grade gold quartz carbonate veins were the start of many mines in Northwest Ontario and have continued to produce for years beyond initial the initial mine life such as the Red Lake Mines. Argo Gold views the near surface high-grade veins as enablers fueling producing mines and exploration teams with clues to larger, deeper discoveries.
If we look at Wesdome's Eagle Mine, it produced 40 to 50,000 ounces a year for over 20 years and they continue to discover new zones at Eagle and Richmont mine, which has produced 50,000 ounces a year for eight years.
They discovered Island Deep, where they intercepted twice the gold at twice the width. They're able to increase their production to 80,000 ounces a year, without increasing the mill capacity and Richmont mines was sold for a Canadian billion dollars.
What is further differentiates Argo Gold is that the Woco Gold Project is proximal to the Uchi Deformation Zone, a major structure that is also proximal to Great Bear’s Dixie Discovery . Also, both Argo Gold’s Woco and Great Bear’s Dixie projects are in the Confederation volcanics, overlying the Balmer volcanics, which host the high grade Red Lake style mineralization.
Great Bear's exploration success shows the potential for Argo Gold’s Woco Gold Project and the potential to discover additional Red Lake gold style mineralization in the Confederation, Birch, Uchi Greenstone belts. Argo Gold’s known high-grade gold mineralization is very similar to the historical drill results that existed at Great Bear’s Dixie Gold Discovery.
Dr. Allen Alper: Well, that sounds like a lot of opportunity there. And could you tell our readers/investors a bit about what Argo Gold's plans are for 2019?
Judy Baker: Argo Gold completed its first drill program at Woco in the first half of 2019, with some multi-ounce intercepts over decent mining widths out at Argo Gold's project. There is not a lot of outcrop so we are currently doing a biogeochemical orientation survey to determine how we can identify geochemically, what the rock is made up below and identify additional high-grade gold veins to open up on with trenching, sampling and mapping.
Argo Gold is also compiling information from our winter drill program on the structures and orientation of the known gold mineralization at both the Woco Gold Vein and the Northgate Gold Vein to identify the strike, plunge and down dip extensions of the known high-grade gold mineralization at Woco and Northgate.
Dr. Allen Alper: Well that sounds very good. Could you tell our readers/investors a little bit about your background and your team’s?
Judy Baker: Argo Gold has just augmented its team with Peter Mah a veteran mining engineer, who built, operated and/or developed several high-grade multi-million ounce gold mines and projects into viable mines around the world. Peter has 10 years’ operations experience, including both high-grade underground Red Lake Mines. He has built and operated a high-grade 1.5 oz/t, 425 K oz p.a. selective underhand cut and fill mine for Newcrest and advanced development of multiple early stage projects that led to the mineable level for Newmont Gold. Peter has joined Argo Gold in early July and will really focus Argo Gold’s exploration efforts on economically viable gold mineralization and scale. Argo Gold already has an excellent exploration team in Bill Kerr, Jay Hodgson, Delio Tortosa and John Walmsley and together we are well placed to execute on discoveries and growth especially with today’s momentum in gold price reaching over US $ 1500/oz !
Dr. Allen Alper: That sounds excellent.
Judy Baker:Ken Storey, CFO is a Certified Professional/Management Accountant and Business Analyst with over 25 years of private and public entity accounting experience. He brings a solid background of financial expertise, operational and business experience to Argo Gold, including financial reporting, restructuring, acquisitions, strategic planning, treasury and risk management. Prior to joining Argo Gold, Mr. Storey held senior financial positions in a number of publicly traded, international companies, including Dundee Corp, Vinci S.A., Caterpillar Inc. and Dundee Precious Metals. Mr. Storey attended the University of Toronto and obtained his professional designations in the early 1990’s.
Dr. Allen Alper: That sounds excellent. Could you also tell us a little bit about your financials, your share price and capital structure?
Judy Baker: Argo Gold has 38 million shares outstanding. It has a market with warrants and options, it's just about 40 million. Therefore, it has a market capitalization of $5 million.
That's is very inexpensive for a company with eight 100% owned gold and base metal assets and the flagship Woco Gold project, which potential to find more Red Lake style gold mineralization.
Dr. Allen Alper: Sounds excellent! Could you tell our readers/investors the primary reasons they should consider investing in Argo Gold?
Judy Baker: Absolutely. Argo Gold’s high-grade Woco Gold Project in the right exploration camp. Argo Gold’s excellent exploration team augmented now by Peter Mah, an experienced miner with early stage gold project development experience. Excellent capital structure for investors.
ARQ on the Canadian Stock Exchange, as well as we have a US symbol, ARBTF on the “over the counter” in the US.
Dr. Allen Alper: Sounds like excellent reasons to consider investing in Argo Gold. Is there anything else you'd like to add, Judy?
Judy Baker: I think that gives your readers/investors a good update on Argo Gold right now. Thank you for interviewing Argo Gold for Metals News.
Dr. Allen Alper: Thank you, everything sounds excellent. We’ll publish your press releases as they come out so our readers/investors can follow your progress.
http://www.argogold.ca/
Judy Baker
CEO
(416) 786-7860
jbaker@argogold.ca
|
|