Western Atlas Resources Inc. (TSXV: WA): A Successful Well-Financed Team, Targeting High Value Gold Projects in Nunavut, Canada; Fabio Capponi, CEO Interviewed
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By Dr. Allen Alper, PhD Economic Geology and Petrology, Columbia University, NYC, USA
on 9/29/2020
Western Atlas Resources Inc. (TSXV: WA) is currently exploring its 100% owned, Meadowbank project, strategically positioned along trend and immediately adjacent to Agnico Eagle’s Meadowbank and Amaruq producing gold mines in Nunavut, Canada. Western Atlas’ Meadowbank Project is fully permitted for exploration, inclusive of drilling. We learned from Fabio Capponi, who is CEO and Director of Western Atlas Resources, that this summer they have started drilling one of the multiple targets they have identified at Meadowbank. While the Company is completely focused on Meadowbank, last year they acquired an advanced stage gold project in Venezuela, called Lo Increible. According to Mr. Capponi, the Board and Directors have multi-decade experience in both natural resources and capital market industries, together raising over $5 billion to finance natural resource projects.
Western Atlas Resources Inc.
Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-Chief of Metals News, interviewing Fabio Capponi, who is CEO and Director of Western Atlas Resources. Fabio, could you give our readers/investors an overview of your Company and what differentiates your Company from others?
Fabio Capponi:Western Atlas Resources is a junior exploration Company that was started in 2016. We started staking the mineral properties that form our Meadowbank project, in Nunavut Canada, at the end of 2016. We registered the properties in the beginning of 2017, and we were fully permitted by August 2017. The Meadowbank project has a district scale footprint, with its 580km2 size. We are strategically positioned along trend and adjacent to Aginco Eagle’s Meadowbank and Amaruq gold producing mines and we are fully permitted for exploration. Over the course of the past three years, we ran an extensive exploration program at our Meadowbank project. The results of this program have led to the definition of numerous targets for follow up with drilling and this past summer we started the first diamond drill program to start testing one of these targets. As mentioned there are several additional targets that could also offer significant upside potential.
Fabio Capponi: In addition to the Meadowbank Project, last year we acquired the rights to the Lo Increible project, located in the Bolivar State of Venezuela. It is an advanced stage project, with over 900,000 ounces of Historical measured and indicated resources. It is a project with prefeasibility studies, scoping studies and metallurgical studies. It is a project that had been known for over 20 years, and is sitting in the back pocket of Western Atlas Resources. At this moment we cannot go back and operate in Venezuela for obvious reasons. The project was nationalized by the nationalization law in 2011. So the Company is now dealing with the national assembly that is the government recognized by over 50 countries, including the United States and Canada, in order to seek restitution and development of the project and on top of that, we made a proposal to acquire formerly producing assets within the Country. As I said, this is a project that right now is sitting in the back pocket of Western Atlas and the Company's focus is on the exploration of the Meadowbank gold project here in Canada. For more information about this project please refer to company’s disclaimer and information available at www.westernar.com
Fabio Capponi: About the Board of Directors, we have a combined multi-decade experience, with both natural resources and capital market industries. Together we have raised over $5 billion to finance a natural resource project. And some of us are behind many success stories, within the industry, like for example Bolivar gold, which was sold for over $300 million to Goldfield, Gran Colombia gold, the largest gold and silver underground producer in Colombia, Caldas Gold, which is currently exploring and developing a multimillion ounces deposit in Colombia and CB Gold, which was acquired in 2015, to name a few.
Fabio Capponi: Now, we believe that over the past years, we've been able to assemble a Board and Management, with the right combination of technical and business skills that will enable Western Atlas to move from simply being an exploration company to development and eventually a production company.
About the capital structure of the Company; The Company has 115 million in I/O shares and over 160 on a fully diluted basis. Gran Colombia Gold owns approximately 26% of the Company, 24.8% is held by Management and Directors, 2.6 % institutional and 46.8% retail. I am the largest individual shareholder of the Company. Management and Directors have acquired their shares in financing rounds and on the secondary market.
Fabio Capponi: Why Nunavut? Well Nunavut is a pro mining jurisdiction, with over four decades of prosperity mining. It allows you to stake or acquire mineral properties, with a district scale footprint, and that provides an opportunity for multiple discoveries. On top of that, it is home to world class mining companies such as Agnico-Eagle, Sabina Gold & Silver, TMAC Resources and Auryn resources. Nunavut is also home to multimillion ounces gold deposits, in fact over 13 million ounces of gold, in proven and probable reserves, and 15 million ounces of gold, in measured and indicated resources, have already been certified in the area.
Fabio Capponi: Now talking a little bit about our project, we own 580 square kilometers of mineral claims. They're strategically located adjacent and along trend the Meadowbank and Amaruq producing gold mines, both belonging to Agnico-Eagle. We own 100% of the properties. There are no royalties of any sort on the properties and we are fully permitted for exploration.
There are excellent infrastructures in the area. Baker Lake, the closest community, is serviced year around, it has a modern airport, modern facility and it is also a hub for mining activities. Moreover, there's a four season 110 kilometers road that connects the community of Baker Lake to the Amaruq mine. This road which belong to Agnico Eagle crosses through our properties.
With regard to the exploration conducted at our Meadowbank project, over the past three years, we ran an extensive exploration program that has yielded high-grade gold values up to 13 grams per ton and over 40 grams per ton silver. In addition to that, the geology in the area is well known and well understood. Thanks also to the work that has been done over the years by Agnico Eagle and its predecessors. So, gold is generally associated with banded iron formation in shear zones and we've been able to map, sample and identify these geological settings, with kilometer strike length, within our properties.
Fabio Capponi: This year, with all the restrictions imposed by the COVID-19, we were able to pull the trigger and execute on an initial 3,500+ diamond drill program and test one of the several targets that we own in the area. The drill program focused on target B1, within block B. We should also consider that we are the newest company that has started exploring in the area and we are the one, with the lowest market cap. So we believe we are well-positioned to deliver the greatest upside potential among our peer group. Not considering Agnico Eagle that is an amazing case on its own, if we look at the other companies operating in the area like Sabina Gold and Silver, TMAC resources and Auryn Resources, they have been operating in their area for well over a decade. And their market cap is well on the order of 100s of millions of dollars. So again, we believe we are well positioned to deliver the strongest upside potential among our peer group.
Fabio Capponi: I would like to wrap up this interview by summarizing why we believe Western Atlas is a great opportunity.
District scale holdings footprint provides potential for multiple discoveries. Strategically located adjacent to Agnico Eagle Meadowbank and Amaruq producing gold mines. Fully permitted for exploration. We are on crown land, not on Inuit land. There are excellent infrastructures in the area. Management and Directors are invested in the Company and own approx. 25% of the I/O shares. We are backed financially and technically by Gran Colombia Gold, the largest gold and silver, underground producing company in Colombia. In addition to that, we have a long-term strategy to deliver value to our shareholders, which goes from the development and monetization of currently existing assets to joint venture and acquisition of new assets, either early stage assets, where we can add value with exploration, or assets with historical data such as the Lo Increible project in Venezuela.
Dr. Allen Alper: Well, you have an excellent Company, with a great opportunity, a great Management team, and you have an excellent location in a district gold area, with great potentials. So that's really excellent! And I would say it is an outstanding opportunity for our readers/investors to consider.
Fabio Capponi: Thank you. We believe that. We are firm believers in what we are doing, proved by the commitment of the Management and Directors expressed, not only with the work that we put in on a daily basis, but also the fact that we're fully invested in the Company.
Dr. Allen Alper: That's excellent, by the way, I've done six interviews and featured articles on Gran Colombia Gold. Amazing Company! It's really excellent! I'm very impressed.
Fabio Capponi: Yes. Solid Company! Solid Management and Directors. They came a long way from what Gran Colombia used to be, only three years ago, and what Gran Colombia is today. Amazing, amazing job!
Dr. Allen Alper: Yeah. It is an amazing Company, it's done so well. It's so great, with its balance sheet. It's generating great cash every year. And it's expanding, a great opportunity for growth! I think they own what, 25% of Western Atlas Resources, something like that.
Fabio Capponi: They own approximately 26% of the Company.
Dr. Allen Alper: Great! Is there anything else you'd like to add, Fabio?
Fabio Capponi: I’ve given you an overview of the Company, several targets we just started drilling. We are very bullish on the numerous ones that will be drilled in the future. These targets are all part of our 580 square kilometers of mineral properties we own in Meadowbank. The size of our properties is no joke. It took us three years to define these mentioned targets in each of the blocks we own. We spent three years in the field mapping and sampling the entire area. We ran 3,800 line kilometers of airborne magnetic survey, over almost 1500 line kilometers of VTM, 32 line kilometers of ground AP. That is a lot of work. We are very, very bullish on the area. It is a safe jurisdiction. It's a very good location to be in.
Dr. Allen Alper: Well, that sounds excellent. We’ll publish your press releases as they come out so our readers/investors can follow your progress.
https://westernar.com/
Fabio Capponi, Chief Executive Officer
604-256-4777
info@westernar.com
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