In the investment banking business people talk about “deal flow”. Putting one deal together, closing it and moving on to the next deal. Peter Clausi, CEO of CBLT (V.CBLT) brings the concept of deal flow to the junior mining space.
I think it is fair to say that Eloro (V.ELO) CEO Tom Larsen is excited by what the company is finding at its Iska Iska Property in Southern Bolivia. The announcement of a second major mineralized breccia pipe approximately 400m in diameter confirmed Larsen’s belief that Iska Iska may have significant tonnages of commercially viable material.
Junior resource companies have been struggling to adapt their businesses to COVID-19. It is pretty tough to socially distance in a four seat helicopter and “camp” arrangements have to be reconsidered. In Ryan Jackson’s Newlox Gold’s (C.LUX)case, its milling operation in Costa Rica had to be suspended entirely.
When geologists are planning a drilling program they want to have as much information as possible before the drill starts turning. Tocvan put out a press release October 27 which, in technical language, indicated that the company’s geologists has reached some conclusions as to the geological structures at its Pilar Gold-Silver Project in Sonora, Mexico. And it is those structures which will determine where Tocvan (C.TOC) will drill.
The junior mining market is in a bit of a consolidation at the moment which gives investors the opportunity to look for undervalued overlooked junior resource stories. Northstar Gold Mining (C.NSG) is a company which deserves a close look.
Tom Larsen, CEO of Eloro Resources (V.ELO), is waiting, somewhat patiently, for the results of drilling at the company’s Iska Iska project in Southern Bolivia. Eloro signed the Iska Iska deal in January and the drills are turning.
There is no single right way to organize and operate a junior resource company. Instead, each company needs to figure out its own path to maximizing shareholder value. Whether it is a greenfields exploration story or a brownfields mining restart, every project is different. Peter Clausi, CEO of CBLT Inc. (V.CBLT), spent the early part of his career as a commercial litigation lawyer on Bay Street. He’s seen most of the business models.
BC’s Golden Triangle has been a hugely productive mining area since the 1980’s. There is no question of its mineral endowment as mines like Premier back in the 1920s, the SNIP and Eskay Creek in the early 1990s, and, more recently KSM, Red Chris and Valley of the Kings have all come online with gold, silver and copper in abundance. The Golden Triangle is a big place and there are many highly prospective but largely unexplored or underexplored areas.
Having a piece of highly prospective property is a good start for a junior resource company. Tocvan Resources (TOC.CC), after Mark Smethurst, the company’s COO, looked at over 150 possible properties, found a property with high gold and silver potential at the Pilar Gold Property in the Sonora Gold District in the north-west of Mexico. Better still, there had been over 17,000 meters of drilling done on the property. Short holes over a relatively restricted area on the property.