Explor Resources – Exploring their many properties
I always enjoy visiting new mines and meeting the management team. I did so in August with Explor Resources.
When discussing the history of the mining industry in North America, the Abitibi Greenstone Belt is one of the most prolific Greenstone belts in North America, having produced over 180,000,000 oz of gold and 450,000,000 tons of base metal ore. The Timmins-Porcupine Mining Camp located in the Abitibi Greenstone belt carries weight as one of the most significant gold mining camps discovered across the continent. Located in northern Ontario, the Timmins Porcupine Mining Camp has hosted several noteworthy mines that have operated successfully, producing millions of ounces of gold and substantial revenue for corporations in the process. Though many Canadian junior mining companies have trended toward investing in developments in Western and Northern Canada, the mines in Timmins-Porcupine remain powerhouses of the industry, continuously generating income for the companies that own them, and more importantly, for the shareholders of the companies.
Objectively regarded as Canada’s greatest regional gold producer ever, the Timmins-Porcupine Mining Camp has seen over 50 mines operate for over 100 years producing over 70 million ounces of gold. If discovered today, this massive deposit would be valued at $100 billion dollars. (Natural Resources Canada and Ontario Geological Survey, 2015). To generate this revenue, corporations have primarily tapped into the “Big Three” mines, which include Hollinger, the McIntyre and the Dome (City of Timmins, 2016).
With Ontario recently being ranked 15th in the world on the Fraser Institute’s Annual Survey of Mining Companies Investment Attractiveness Index, an increase from its 23rd position in 2014, there is great interest and excitement from capital and fund investors for Ontario mining companies (Fraser Institute, 2015). As investment funding increases with the newfound interest, the existing companies that are familiar with the region, the legal system, and the major stakeholders will have a competitive advantage in their ability to develop and explore properties to increase returns for their investors.
Explor Resources Inc. (TSX.V: EXS) (OTCQX: EXSFF) (FSE & BE: E1H1) is working to take advantage of these favorable market conditions by creating its own impact in the Timmins-Porcupine mining camp through its aggressive property acquisition and development strategy. Explor Resources Inc. is a gold and base metals exploration company with significant mineral holdings in Ontario, Quebec, New Brunswick and Saskatchewan, Canada.
The Company is currently focused on exploration of its flagship property in the Abitibi Greenstone Belt of Ontario and Quebec. This project has real short and long term potential for investors and has already produced tangible mining results. With the favorable market for gold being seen in the past year, an experienced management team comprised primarily of engineers leading the project and the natural geological advantages possessed by Explor’s flagship project, the Company offers excellent value to investors who are looking to continue cashing in on gold’s rising price seen over the past year. I have had the pleasure of meeting both Chris Dupont, President and a P.Eng and Les Kovacs, P.Geo, Exploration Manager. Both are very competent in the mining industry…two of the best technical experts I have ever met. They certainly know the properties and its geology!
The Timmins Porcupine West (TPW) Project is located in Bristol and Ogden Townships in the Porcupine Mining Division, District of Cochrane, Province of Ontario – only 13km from downtown Timmins. The property consists of 185 unpatented mining units and 3 patented mining claims located in the Bristol and Ogden Townships in the Timmins-Porcupine Mining Camp for a total of 3,200 hectares. The property is contiguous with Tahoe’s Lake Shore Mine, and where one of Lakeshore’s previous acquisition’s
West Timmins Mine (WTM) where WTM intersected 83.40 meters (273.44 feet) grading 12.75 g/t (0.37 oz/t) on their property. (WTM later purchased by Lakeshore and Lakeshore was recently purchased by Tahoe) As a mining focused economy, Timmins has the necessary infrastructure and labour pool to move quickly on mining developments, representing an advantage for the junior mining corporations in the area.
The TPW project holds natural property advantages and geographical features that have historically been advantageous in gold production. The TPW property has a very large porphyry (Bristol Porphyry) located in a splay fault corridor where most of the Timmins area mines have been found. The property’s porphyry is significantly larger than the Hollinger and McIntyre (Pearl Lake Porphyry), and the larger the porphyry, the larger the potential gold deposit and mineralization. Together, the Hollinger and McIntyre Mines located on the South and North side respectively of the Pearl Lake porphyry produced over 30 million ounces of gold during their period of production/operation. As described by Explor CEO ¬¬Chris Dupont, TPW is one of Timmins’ largest gold projects ever, with a gold mineralization confirmed on a strike length of 2,000 metres and is up to 1,500 metres wide and more than 1000 metres deep. The average mine in Timmins has an average strike length of 350 metres, effectively making TPW 6 times larger than the average mine in the region. The combination of Timmins Porcupine West’s large porphyry and the substantial size of the property’s strike length demonstrates the mine’s ability to produce results for its investors.
Over 123 holes have been drilled to understand the geological structure of the TPW mine and the Completed NI 43-101 Resource statement states that the mine has 609,000 oz of Indicated gold resources and 470,000 oz of Inferred gold resources. As I noted, Explor Resources Inc. has tangible assets and the NI 43-101 demonstrates this fact clearly.
Goldcorp’s Mill where Explor’s gold will be processed. The Company is focused on continuing to develop its property and has received direct investment from external stakeholders in the property. In December 2014, the Corporation signed an agreement with Teck Resources Limited (Teck) under which Teck can acquire an initial 55% interest in the Timmins Porcupine West property by completing exploration work expenditures totalling $8,000,000 by May 1st, 2019. The $8,000,000 is being invested in installments until 2019 again showcasing a deep commitment to develop the property to its full potential. Following this, Tech has an additional option agreement to earn an additional 15% by spending an additional $4,000,000. This will give Teck a 70% interest in the property. The joint venture will be structured with a 70/30 relationship with each party to fund its share of the arrangements.
The partnership with Teck – Canada’s largest diversified resource company – bodes well for Explor Resources and its stakeholders. Explor gets a solid, experienced backer to help fund the development of the property while shareholders receive assuredness that the property will remain a priority and their investments will be relatively secure. An inherently risk avenue for investment, junior mining companies are often hindered in their ability to generate capital through investment outreach. The idea of developing a strong joint venture relationship with a major mining company like Teck Resources Ltd. creates a more secure environment for investment in Explor Resources because there is stable funding being received from Teck along marketing and distribution expertise possessed by Teck. The joint venture effectively opens up avenues both for long term development of the property to see gold resources marketed or for short term growth through an outright sale of Explor’s interest in the property.
Investors interested in the Explor Resources Ltd. stock can apply a classic by low sell high based on the current price of the stock. The market is primed for investors to reach in and grab a stock that has legitimate assets attached to it at an undervalued price. Further, on the whole gold has clearly trended upward over the past year and the market is expected to continue to trend in that direction with ongoing political instability globally.
SUMMARY AND SALIENT COMMENTS:
Teck came in about two years ago when the junior resource market was at its low and got a sweet deal on the TPW – IF executed properly. Teck needs to spend approximately $700,000 more by April 30, 2017 on the PW or they forfeit the deal.They have spent $800,000 thus far.
The management team at Explor are seasoned at mining and geology – they are starting to market Explor.
When the gold price starts accelerating, I believe Explor’s stock price will sufficiently benefit. This could be said about any given junior mining stock but Explor has a strong asset with a major as a partner. This makes the company and stock price attractive.
As Bob Moriarty said: If an investor is looking for a low risk option on the price of gold, the TPW project through Explor would be interesting. The shares climbed as high as $.24 in March as interest in gold resource companies got hotter but have declined to as low as $.065 lately which is as low as the shares have been all year. The shares are very low risk at these prices.
For an informative video, please click: Explor Video
Dr. Kal Kotecha
© 2010 Junior Gold Report
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