Surge Exploration Inc. (TSXV: SUR, OTC: SURJF, FRA: DJ5C): Exploring Early stage Gold, Copper, and Cobalt Properties in Outstanding Mining Regions of Canada and the United States; Tim Fernback, President and CEO
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By Dr. Allen Alper, PhD Economic Geology and Petrology, Columbia University, NYC, USA
on 11/5/2019
Surge Exploration Inc. (TSXV: SUR, OTC: SURJF, FRA: DJ5C) is a Canadian-based gold, copper, and cobalt explorer, focused on early stage mineral properties in the mining-friendly jurisdictions of Canada and the United States. The Company's projects include 100% interest in the Golden Triangle – Trapper Lake Copper-Gold Property in British Columbia, a 100% interest in the Mineral Mountain Copper-Gold Properties in British Columbia, a 60% interest in Hedge Hog Copper-Gold Property in British Columbia, and a 60% interest in Ontario Cobalt Properties in Ontario. We learned from Tim Fernback, President and CEO of Surge Exploration, that the Company is led by experienced professionals, with deep understanding of gold exploration in Canada. They have strategically chosen the assets, located near the well-known deposits that have a lot of interest. Near term plans for fall-winter of 2019, continuing into the spring-summer of 2020, include completing the exploration program at the Hedge Hog property and continuation of the exploration programs at the Trapper Lake, Golden Triangle, and the Mineral Mountain properties.
Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-Chief of Metals News, interviewing Tim Fernback, who is President and CEO of Surge Exploration. Could you give our readers/investors an overview of your Company, Tim?
Tim Fernback: Okay, great. Surge Exploration is a Canadian mineral exploration Company, with projects in mining friendly jurisdictions in North America. We are focused on gold and copper projects and we have a cobalt and copper properties in Ontario as well. Those are the three metals that interest us very much, gold, copper and cobalt. We've been actively acquiring projects and properties in British Columbia, specifically in the gold space right now.
Dr. Allen Alper: That sounds excellent. What would you say differentiates your Company from others?
Tim Fernback: Like most well managed exploration companies, we have a deep understanding of mineral, gold exploration in Canada. Our geological team and our management team are extremely skilled and knowledgeable. We have strategically located our projects to be near deposits that have a lot of interest. We are beside or near several important gold/copper in BC, namely the Stardust deposit that Sun Metals is developing, and the Kwanika deposit that Serengeti Resources is developing. Also we like the fact that Teck is a big investor in the area. So, we're located there.
We have another large gold copper property near the Barkerville Gold Mine Caribou Project, and we are developing that one. We're actually on the ground exploring right now on that property. We've been exploring in that property for a couple of years now, along with our partner on the property.
We like this property because Barkerville Gold has committed to roughly $24 million in exploration this year. So, this is another highly active gold mining/exploration area, with a known gold deposit on our neighboring property.
The third major area in British Columbia, that we have projects in, is the Trapper Lake area, which is on the Golden Triangle. Here we have staked a lot of ground. We have about 213 square kilometers of land in and around the Brixton Metals Thorn Project and the former Golden Bear Mine, which is owned by Newmont Goldcorp. Stuhini is active here, so is Brixton. And so we are as well. I'd say we're the second largest landholder in this area. With Eric Sprott recently putting money in both Brixton and Stuhini Exploration in the area, we believe that our property is well suited and well situated to be on trend with their deposits.
Dr. Allen Alper: Excellent properties and fantastic locations! Excellent! Could you tell our readers/investors about yourself and your team?
Tim Fernback: Sure. My background is in investment banking and mining. I've worked for close to 25 years in the natural resources and high growth company industries in British Columbia. I'm on the Board of five different publicly traded companies right now, so I'm active in the management of a public company and I've built out a team of expert geologists and financial leaders here in Canada to join me.
Our gold exploration team in British Columbia is centered on Bill Morton and our QP Bruce Laird, who have quite a bit of experience in the Omineca region near the Sun Metals deposits and also the Caribou Mining District near the Barkerville gold deposit. Both those individuals have worked in BC for decades. Bill Morton is the former President and CEO of Lorraine Copper, and Lorraine Copper sold the Stardust project to Sun Metals, so they know that region quite well. We also know all of the area around there, because Bill Morton is our Technical Advisor, along with being the technical advisor to Sun Metals.
Bill Morton has also helped us acquire our option on the Hedgehog property near Barkerville and Wells, British Columbia. Through Eastfield Resources, we were able to acquire the rights to this property, and we also believe that this is a fantastic opportunity and property for our Company.
In Ontario, we have the Teledyne and Glencore Bucke Cobalt Properties, which we've been exploring for three or four years now. The cobalt commodity price has come down, over the last couple of years, but we'll continue to explore those properties.
These are assets that we are convinced will be valuable in the near future. Cobalt is used in Electric Vehicle batteries, among other uses, and as the EV market grows, so will the demand for cobalt. We have the only historical cobalt resource in Canada at our two properties in Ontario.
Dr. Allen Alper: Very good. Could you tell our readers/investors your primary goals for the rest of 2019 going into 2020?
Tim Fernback: In 2019 we're going to finish our exploration project up at the Hedgehog property. We've already outlined our exploration plans for the Trapper Lake property in the Golden Triangle and also the Mineral Mountain properties that are in the Omenica region. We're going to be carrying out those exploration plans later this year and continuing into 2020.
Dr. Allen Alper: That sounds great. Could you tell our readers/investors about your capital structure?
Tim Fernback: We are a publicly traded company in Vancouver, traded on the TSX Venture Exchange, under the symbol SUR. We're also on the OTCQB, under the symbol SURJF, and we're also listed on the Frankfurt Exchange, under the trading symbol DJ5C. We've been a publicly traded company for several decades. Recently in 2017, when I joined the Company, we recapitalized and restructured the Company completely. There are about 95 million shares issued outstanding on the Company right now. We're in a healthy cash position, and we have several warrants that are in the money that are closely held by investors that I know, and the management team. We believe that we're in a solid cash position for the next year to two years.
Dr. Allen Alper: Oh, that sounds excellent. Could you tell our readers/investors the primary reasons they should consider investing in Surge Exploration too?
Tim Fernback: I think the biggest reason is opportunity. We're a $5 million market capitalization right now. I believe there's a lot of upside in terms of the equity value in the Company as we continue to expand our exploration programs and work on areas in BC. We're completely focused our exploration dollars on the gold market right now and gold exploration. We believe the biggest upside for our shareholders is in this area, given the fact that gold, the price of the commodity has done well, and there's a lot of interest in the area for gold projects. Very recently, there was a takeover bid happening on Barkerville Gold projects as well. With all of the financing interest from well-heeled investors like Eric Sprott in the Golden Triangle and areas that we're around, we believe we have the right commodity and we have properties in the right location.
Dr. Allen Alper: Absolutely! You have properties in amazing locations, near Barkerville Gold, which Osisko Royalties is planning to buy for over 300 million dollars. And, in the Golden Triangle, a great location. Every location you're working in is fantastic.
Tim Fernback: Yes. Our Hedgehog property is about 10-15 kilometers away from the Caribou Gold Project, and that whole area is littered with gold projects that have been explored over the last hundred years.
Dr. Allen Alper: Well, that's fantastic. Is there anything else you'd like to add?
Tim Fernback: I want to say, I think we're incredibly undervalued. We have a great exploration team and our projects are in fantastic areas. We're looking forward to unlocking shareholder value over the rest of this year and next year as we continue to explore.
Thank you for interviewing Surge Exploration for Metals News. We appreciate it.
Dr. Allen Alper: You are very welcome. I enjoyed hearing more about everything you are doing at Surge Exploration. Those are very, very strong reasons for our readers/investors to consider investing in Surge Exploration. It looks like the timing might be right. The gold market is becoming stronger and predicted to strengthen in the years to come.
Tim Fernback: Yeah, I believe so too.
Dr. Allen Alper: We’ll publish your press releases as they come out so our readers/investors can follow your progress.
https://surgeexploration.com
Tim Fernback
President & CEO
info@surgeexploration.com
+1-778-945-2656
1220-789 Pender Street
Vancouver, BC V6C 1H2
Canada
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