Excalibur Resources is a junior exploration mining company focused on not only discovering emerging properties on a North American basis, but developing their potential with a focus on mining operations. While Excalibur Resources has several properties in North America in various stages of development, Tim Gallagher, the Chairman of Excalibur, is most focused on the Catanava Property in Mexico and its potential. Gallagher said, “I focus 100% on mining and I have taken a few companies public (Soltoro, Xtierra, Xmet). This is my chief focus right now because of the potential for cash flow to be paid out in a dividend. That comes from a simple gold operation of turning 250 tons a day of eight to ten grams grade in an historic area called Pinos that has produced five million ounces of gold and twenty-five million ounces of silver.” (the Catanava property, located in the Mexican State of Zacatecas).
Gallagher's focus on the Catanava property is based on prior work by Hecla and most recently Romarco in 2006-7, suggesting that there is much more metal to be brought out of the ground in that area. He said, “So, this is really just to get the program started because obviously we still think there is a blue sky of more ounces.” His optimism in terms of the amount of resource in the ground may lead to cash flow that will pay off for stock holders. Said Gallagher, “We think, from a near term point of view, getting into cash flow is very appealing for our $5 million market cap. We think we can pay up to half of the cash flow as a dividend and still have the other half to expand the company plant and make it a bigger story and go after the bigger set of ounces that we think is there.” Having the ability to create cash flow for the benefit of not only the company, but the shareholders as well, is a primary focus of Excalibur's rapid development of the Catanava property.
To say that Excalibur has moved quickly would be an understatement. Excalibur's holding of the Catanava property began just a short time ago. Said Gallagher, “We made this deal about a year ago and over the course of the year we are at a stage where a substantial amount of the permitting and basic infrastructure has been completed.” In just a short time, nine buildings have been erected, adits have been cleared, power installed and the foundation for the production facility was poured this month. Gallagher said, “We are pouring cement. We should be able to put the equipment that is on site up in October. Test production [is scheduled for] November.” Once test production is completed, Excalibur should be able to move forward with the initial stages of gold production.
Just getting production started is not the end of the process for the Catanava property. Gallagher has goals already set out for 2012 for the Catanava project. He said, “As a start-up operation, we have the potential to process seventy-five thousand tons per year – a target of about 20,000 ounces. [It is] too early to tell on the grade and how soon right now.” Once they get production started and determine the grade and the rate, Gallagher hopes to move on to other goals. Additional goals for Excalibur's development of Catanava include doubling the plant size over the next couple of years.
Gallagher believes that Excalibur Resources has much to offer to investors. Not only does Excalibur offer leverage in both the gold and silver markets in a rising price scenario, but they want to encourage investment by paying back their investors. Said Gallagher, “We have a goal to pay out a dividend that will provide a yield that is higher than anything on the market.” In addition, Gallagher believes that the Catanava project is a “blue sky” project, which offers excellent potential especially due to the fact that Catanava is located in an historic area in the State of Zacatecas, which includes Fresnillo, the largest silver miner in the world, the largest Canadian project, Penasquito, owned by Goldcorp, and three mines owned by Carlos Slim, the richest man in the world. Said Gallagher, “We have the right address.”
For investors that are interested in Excalibur Resources, there are currently forty five million shares outstanding at about $.10 to $.12 per share. Gallagher said, “We have a very tight float in terms [of the fact] that we only have a handful of shareholders that own about fifty to sixty percent. We have the leverage of a tight structure and the plan would be, with the major milestones coming up in the next quarter, to make the move to the TSX Venture.” Clearly, Excalibur has a long-term, aggressive plan for growth.
Excellence in Management
One of the reasons that Gallagher feels confident of Excalibur's progress is based on his confidence in the team on the ground at Catanava. By utilizing local, on-the-ground talent, he feels that the Catanava project has the support it needs for Excalibur to move it forward. For example, the general manager lives near the property, and Excalibur is, additionally, taking advantage of local experts including knowledgeable university professors to help drive the Catanava project forward in a timely manner.
Excalibur Resources has additional projects in Canada, including the Silver King Mine Project in Southern BC, the Cariboo Properties in the same area, as well as the Sturgeon Lake Property in Northwestern Ontario. Each of these projects is considered to be a viable project, offering Excalibur an opportunity to produce not only gold, but base metals and silver as well.
With a sharp focus on discovery, exploration and the development of its North American properties, Excalibur Resources is positioned favorably to offer investors a way to grow their investment. Projects such as the Catanava property in Mexico may provide an upside to investors who are interested in historic gold projects run by junior mining companies.
For further information contact:
Tim Gallagher, Chairman
Excalibur Resources Ltd.