Incorporated in 1984 and public just a year later, junior mining company and Ottawa-based Kinbauri Gold Corporation has been doing very well for itself thanks to some crucial acquisitions made just two years ago. Besides being involved with both its Spanish and North American projects, this Canadian Venture Exchange contender is dedicated to its shareholders through its active prospecting of potentially lucrative precious metal properties. President and CEO Vern Rampton and Vice President and COO Jean Bailly recently met up with Metalsnews.com to shed some light on their company and its impressive holdings.

Rampton is a very dedicated, experienced and knowledgeable geologist, who has been with Kinbauri since its establishment. He earned his Bachelor of Science in Engineering (Geology) from the University of Manitoba in 1962, and seven years later a Doctorate in the same field of study at the University of Minnesota. As a core member of the Prospectors and Developers Association of Canada, Rampton is at the helm of Kinbauri’s management and corporate strategy.

Kinbauri Gold Corp. is a junior mining company based in Ottawa, Ontario, Canada. Kinbauri’s wholly-owned subsidiary, Kinbauri Espana S.L. acquired the El Valle Mill and auxiliary facilities, the El Valle and Carlés Mines and two other properties within the Rio Narcea Gold Belt in northwestern Spain, namely Godán and La Brueva on March 30th, 2007.

The Company’s immediate focus is to: (i) upgrade resources to reserves and complete a mine development plan at El Valle in order to commence production of gold and copper at the mine and mill complex there in 2011. Upon restart, the El Valle site will become the largest gold producer in Western Europe

In the years spanning 1985-1990, the company concentrated its exploration between eastern Ontario and southeastern New Brunswick and acquired a number of properties. And then, according to Rampton, “we had a 13-year hiatus where we had an ongoing lawsuit with IAMGOLD.” Not one to waste precious time, he continued to consult “in all the other things that geologists do in this business.” In late 2004 Kinbauri was awarded $4 million CDN in damages.

It was at that point Rampton and his team reinvigorated the company. Through a fortuitous sequence of events, Kinbauri turned its interest to Spain where it quickly scored its first property, Corcoesto. The company impressed the Spanish mining authorities as well as other companies interested in the business.

“When Rio Narcea Gold Mines wanted to divest some of its holdings in Northern Spain and look elsewhere, we were the lucky ones to be able to purchase the El Valle and the Carlés Mines and the El Valle Mill,” Rampton explained.

Total N.I. 43-101 (January 20, 2009) resources at El Valle/Carlés now stand as follows:

Kinbauri’s 30,000 m exploratory and in-fill drill programs completed in 2007-2008 will form the basis for detailed mining plans and pre-production development; as well as a scoping (February, 2009) and subsequent feasibility study (mid 2009) which in turn will result in full production at El Valle/Carlés of approximately 145,000 ounces of gold equivalent per year by 2011.

It is at these primarily gold and copper holdings in the Province of Asturias in northwestern Spain where Kinbauri intends to reinstate production by no later than 2011. In conjunction with those properties, the company has exploration permits at its La Brueva and Godan projects not too far away. In Galicia to the northwest lies Corcoesto, where Kinbauri has an agreement to own 100 percent of this advanced gold project.

From its website regarding Corcoesto:

As of February, 2008, resources for Corcoesto were estimated as follows:

“In 2007, we acquired the El Valle/ Carlés properties and since then, we've drilled about 30,000 meters underground,” said Rampton regarding his company’s properties in the Rio Narcea Gold Belt. “We've come to a successful conclusion and now we've got a scoping study showing robust economic numbers. Based on current metal prices; with gold at about US$910.00 and copper around US$1.50 together with an exchange rate of 1.3,U.S/Euro and a ten percent discount rate, the numbers generate an NPV of $165 Million and a 47 percent internal rate of return. ”

Rampton added that the accuracy of the study, which is approximately plus or minus 15 to 20 percent, is much more definitive than the normal 35 percent. So, outside of getting production up and running by 2011, refinancing is the ultimate short-term goal for Kinbauri in Spain at this point.

Bailly has a very strong background in mine development and operations. He heads up the company’s operations in Spain has more than 30 years experience in the development and management of mines in Turkey, Quebec Vietnam and Burkina Faso. Chief Operating Officer and director of Kinbauri España since 2007, he is the man in charge of exploration and progress at the El Valle and Carlés.

“We are maintaining two mines and the plant right now, all of which we hope are going to be in production very soon,” said Bailly. “This is a fantastic area, we have a beautiful project and everybody is anxious to get it under way.”

Rampton added, “One of the things I didn't point out to you is that this is a very prolific belt, and the upside at the mines themselves is excellent. We have 2.2 million ounces of gold defined in all categories there right now, but we see a tremendous opportunity in moving that up to above five million ounces.”

One of the reasons for Rampton’s optimistic enthusiasm is “Santi,” Kinbauri España’s geologist, Santiago Gonzalez. “He's been very successful in guiding us towards more and more resources,” he said. In addition, a gentleman by the name of Francisco Ruiz not only takes care of the mill metallurgy, but also “has us completely onside with the Mining and Environment Departments, added Rampton.

In Kinbauri’s case anyway, Spain has been very pro-mining. The Company has the full support of the Asturian Provincial Government as well which is very crucial in Spain. Alongside this, Kinbauri is even more fortunate in that it has received substantial subsidies and encouragement at the federal level.

Both Bailly and Rampton agree that although their company at the moment is trading at $0.45, the target share price for them is closer to $2.00

“We’re severely discounted, as is every other mining company in the business, but I think we stand out above everybody else,” Rampton added. The upside is tremendous; even at $125 million to add more infrastructure, and get fully permitted our cap costs are going to be half of what the normal cap costs are to get back into production.”

Kinbauri’s nine-year mine plan tops off around 900,000 ounces and this doesn’t even include all of the extensions, which its geologists have planned, for the additional three million potential ounces that lie in wait.

“Even if we're only successful in exploiting two-thirds of those mineable ounces, you can see how this is going to extend the mine life here,” noted Rampton. “And this doesn’t even include the whole belt. It's got all sorts of potential.”

For more information visit www.kinbauri-gold.com