U.S. Global Investors Portfolio Showcase with Frank Holmes (Part 2)
Published on September 4, 2017
00:00:08 Frank Holmes: This is a new science of presentations. It has grown rapidly from Japan it is a 900 cities in the world. Is the way architects designers technologists communicate to each other. It is called 20 by 20 it is 20 seconds per slide at 20 slides it's over. Therefore people like me that have attention deficit disorder can actually concentrate this long before the next presentation. These are companies that we have investments in these are companies that we believe in hopefully that they can really show you the song of the dance in 6 minutes and 40 seconds are you ready on your mark get set go.
00:00:58 Ivan Bebek: All right everyone now thanks very much Frank.
00:01:00 Frank Holmes: I am sorry. That's right.
00:01:02 Ivan Bebek: My name is Ivan Bebek. I'm the executive chairman of foreign resources. Going to try the 20 seconds 20 slides here I'll start off by saying. Oren is the single best opportunity I've had a chance to be a shareholder in in the last 18 years. On that note I'll be making a lot of forward-looking statements of why that is the case ultimately we're a gold exploration company based out of Vancouver with the world-class exploration portfolio. In northern Canada as well as down in Peru. Moving ahead to the next slide we don't need to talk about this glamour too much. Our methodology is maximum risk our maximum rewards your minimum risk we do that by having a portfolio approach.
00:01:39 Most juniors have several projects they only work on one or two. We have seven projects we're working on all of them at the same year in the next six months we're going to drill these seven projects. We can do this because we've had such tremendous successes in our past. Keegan Resources was our first company we found Five million ounces of gold we acquired five more to 10 million ounce producing gold company. Cayden was our most recent success which really set the platform to build oren where we sold our company in the exploration stage to Agnico Eagle in 2014. That being said this is exactly the slide of why I'm standing here day not just because it's our resume a Asanko Gold which is formerly Keegan this is what can happen in a big discovery in a bull market 49 cents to $9 per share.
00:02:23 Cayden Resources was the success we had in a bear market. We're taking 25 shots across our portfolio projects this year and the next six months to go and deliver that kind of success. The live portfolio there's three projects in Canada two none of it one in BC they're all high grade there's four oxide or scoring targets in Peru. The odds game is what we play is expiration is multiple projects reduces the risk. Because you have the chance of succeeding somewhere we think we'll succeed in more than one places. Our capital structure the ownership is key not only are we big investors we own eighteen and a half percent of which a lot of that was purchased in the open market.
00:03:01 Goldcorp's the shareholder at 367 a share earlier this year in January which was a premium to our share price today we're trading around 3:45 per share. We’ve had some, some other great institutional investors such as Franks fund and a few other ones back east. Our management team is very balanced. There's corporate financial technical people on this slide as we grew over time with the experience. We've drawn in more, more talent it separates us from a lot of the other companies. We're not just loved sided with geologists we actually have corporate and financial people as well.
00:03:31 This is our world-class technical team. Predominately Newmont's formerly their Newmont's global exploration team including the chief former chief geologist of Newmont as well as the former chief geologist of gold fields all of these people have different disciplines. Their world experts it's a majors exploration team in a junior resource company with that with a majors exploration portfolio which is what you're seeing here.
00:03:53 Committee Bay is a 300 kilometer long greenstone belt has been over 67 discoveries on this belt that previous owners focused on just one area where they drilled a nice resource. We're looking to go find multiple discoveries which we start drilling in the next two weeks. Homestake Ridge is the high-grade and 1.2 million ounces of about 9 grams per ton in BC is something we think can double and get much bigger.
00:04:15 Moving ahead a close look at the Arctic committee Bay Gibsons MacQuoid you have Agnico Eagles spending 1.2 billion they announced earlier this year between Amaruq, Meliadine. Meliadines in 11 million ounce deposit Amaruq 7 million ounce discovery in the last three years. We're taking 12 shots a committee Bay to find something of that caliber. This is our entire belt it's the distance from New York to Boston in yellow. We've circled up the most prospective areas on the actual belt.
00:04:40 In red is the 2% of all the gold concentrated areas of the belt that we've sampled so far. You can see the size of Manhattan is representative to one of these corridors these are major high-grade gold targets along the belt. A 100 million has been spent before us of which 27 million went into infrastructure. We own everything on this slide with the exception of the 737 aircraft.
00:05:00 We fly in our fuel our people everything else that you see there is there tremendous amount of work ahead of us that we can leverage off of and set us up for major exploration discovery at an efficient cost rate. This is Homestake the Golden Triangle spectacular resource 1.2 million ounces of nine grams per ton as I mentioned. They drilled holes such as 73 meters of 21 grams per ton those spectacular intercepts massive massive targets.
00:05:25 We think there's a very good probability that we can double or triple the size of this we'll come up with a lot more information as we start drilling it in the mid summer. What we did at home state because we unlock tremendous value with our metallurgical work. This was really what separated this project from what it was looked at before with two concentrates versus one.
00:05:42 We're getting mid-80s on gold recoveries in copper concentrate and most five 80s on the leg concentrate. This is a nine grams gold equivalent so extremely profitable in BC probably our most advanced project. Peru there's one word its endowment I'm not going to go through each project here there's four of them. I'll talk about Sombrero is 200 kilometers west of Las Bambas.
00:06:03 Which was bought by MMG for $6 billion back in 2014 a major copper porphyry Sombrero has a lot more gold than just copper. These are the four projects we have improve all of them will be drilled after the summer programs up north this year. They're scalable open-pit targets they all have excellent infrastructure. There's power and water to each one of these projects in a very very favorable place in Peru.
00:06:30 One more slide here coming up, this is Sombrero the geologist here showing you the ingredients of a major Scarn again it's west of Las Bambas. You're getting multi gram gold multi percent copper you have the right host rocks of limestone and diorite intrusive rocks. It's the single best target that our geologists have seen in their careers pre drilling a hole has never been into this major structures great component
00:06:53 This is a slide I'm very proud of we're spending 40 million from January to December of this year. 36 million is going into the ground is a nice breakdown of how our cost go. We're doing it for shareholders. We're going for a major discovery. We're going to drill at least 55 thousand meters this year that's going to set us up for a major gold discovery. This is our drilling schedule it starts in June 10th and it doesn't stop we'll continue drilling on July 15th Homestake then we drill in the fall all through Peru.
00:07:20 I don't know when this program will stop. I think we have at least two or three years of exploration that can be done based on the scale and the opportunity some of these targets. This is the early stages of some major discoveries that we expect going forward. Lastly I'll summarize it with the quality and scalability of these gold projects has been picked by geologists to work for majors for their entire careers.
00:07:40 The experience behind them ourselves of monetizing previous assets is uncanny. The ownership not just the projects we own 100% of our projects or we have the option to earn that ourselves as management and a major as a shareholder. Ladies gentlemen thank you very much appreciate your time.
00:07:59 Frank Holmes: Were they.
00:08:01 Jonathan Awde: Thank you very much my name is Jonathan Awde and the presidency of Gold Standard Ventures. Gold Standard is a district scale focused gold exploration company in Nevada. We've accumulated almost 20% of the Carlin Trend over the last seven years the picture you see there in the background is is our project. We trade in both Canada and the US under the symbol GSP. I will make a few forward-looking statements probably not as many as Ivan.
00:08:26 I will try to keep my opinions to myself. I think this is part of the challenge that the gold mining industry has right now you look forward to the calm there on the right that's a 21 percent decline in senior gold production by the year 2020. I think that's what part of the opportunity is here for the exploration companies that are funded and make discoveries to fill up this pipeline.
00:08:50 This chart here in q4 of 2010 is one exploration spending peaked over the last six years you've seen a general decline in exploration spending. That's where a lot of the opportunity comes from when you have exploration companies like Gold Standard and Oran that are that are funded. That's how discoveries are made over the last three years gold standard has made four discoveries.
00:09:12 Gold standard we've got 208 kilometers on the Carlin trend again it equates to over 20% of the Carlin Trend. We've got a world-class technical team I think that's that's a very valid statement for what we are and who our team is one of them is in the audience here today Mack Jackson. It's a target-rich environment we have 48 million dollars in cash I think having a strong Treasury is a way that you can offset and leave eight some some risk.
00:09:37 We have two great corporate travelers Oceanic Gold, Gold Corp. This year we're about to embark on our largest exploration spend to date. We'll drill 48,000 meters drilling is underway we've got three rigs out there right now. This is Elephant country you know you look at this part of Nevada. If Nevada were a country it would represent about 80 percent of well if 80 pounds of America's of production
00:10:03 If our country you'll be the fourth largest producer annually of gold lots of infrastructure rule of law means something clear path to permitting. To the background here Carlin Trend up to the north you've got Gold Strike level. For those that have said the Carlin Trend has no more ounces and all the ounces have been found. Look no further than level which is a positive that our team found 20 years ago.
00:10:26 They're still finding disruptive mineralization over 20 years later. This slides really proud of in bright green there is what we started with in 2009 we went public in 2010 over the ensuing seven years have put together almost 20% of the Carlin Trend. We've dealt with over 90 individual owners of surface mineral water. This year's our biggest spend our biggest exploration program to date will drill almost 48 thousand meters.
00:10:56 We were committed to exploring during tough years which was very tough to fund risk on expiration were focused on an oxide two oxide deposits in the southern portion of our project. We got into a really high-grade oxide discovery in in August of last year. We had 126 meters of 4.0 7 grams per ton oxide essentially at surface open in virtually every direction. You'll see some of the better intercepts here just real quick last year we are operating under what's called a five-acre Notice of Intent.
00:11:31 We really limited as to where we could drill last year. We should have our EA filed on June 9th which will allow for up to 200 acres disturbance so a much larger more comprehensive exploration program this year. Not being confined to where we can and can't drill. This is what it looks like you see off in the background there is Newmont's open-pit emigrant mine it's a run of mine heap leach operation that was built in in 2012. Right now we're just drilling on the on the western side there really see the the Dark Star corridor. We think there's a strong possibility that Dark Star, Pinion connect they're about a mile apart.
00:12:09 We've got a number of holes that are focused on on connecting these two deposits. We'll be coming out with our maiden resource at Dark Star in the latter half of June. Pinion we're drilling here right now or excuse me we will be drilling here in the next few weeks in the northern part where you see Sentinel that's a shallow outcropping oxidized target. North Bullion this was the company's first discovery we made back in 2011. We are actually drilling there right now. We're set to come up with a Maiden resource in the latter half of July this is a high solid Asian refractory target its open in virtually every direction big system.
00:12:47 I think it's important to talk about we've made five discoveries in the last six years. We've got a number of new targets that are being brought on as a result of the new land acquisition that we closed announced on March 23rd. One of them is called Jasperiod Wash it's about a mile a half south of opinion. June 14th were set to close the Battle Mountain acquisition we announced this a couple months ago.
00:13:11 What see in the background there is the Phoenix fortitude pit that belongs to Newmont. We own 28 percent of the company prior to this acquisition. Again I should close on June 14th chemical standard access to a second district scale asset in a very strategic part of Nevada. Again cash position corporately, we’ve got some you know great corporate trailers since the phenomenal institutional shareholders.
00:13:32 With with US Global,Angles of Schneider Black Rock and well-funded with with 48 million dollars in the bank. Also you know great great support aboard phenomenal technical team led by Mack Jackson VP of expiration. We've raised almost 180 million dollars since we started the company in 2009. Real quick I think there's a real opportunity here Gold Standard got into the GDXJ on March 17th which is historically supposed to be a good thing.
00:14:04 There's been a GDXJ rebalancing where that's supposed to be announced on the 9th. There’s some smaller names within the GDXJ that have to get trimmed. We enforcedly were one of them the stock is down almost 35% in the last six weeks. There's an opportunity there.
00:14:18 Frank Holmes: You've heard this several times of the GDXJ rebalancing is provided a great opportunity for phenomenal companies that are just being sold indiscriminately. Now our last president presenter are you ready on your mark get set go.
00:14:36 Stewart Rogers: Hi my name is Stewart Rogers I'm president of Terrax Minerals Inc. Terrax has assembled a land position a major land position when our Canada's highest grade gold districts that's the Illinois gold camp in the Northwest Territories. We have an experienced technical team our technical team is lead by Geo Campbell. Who's our chairman and chief executive officer Geo Campbell discovered the Meladine gold project in Nunavut.
00:15:02 Which is mentioned earlier 11 million ounces he was instrumental in that intro action technical. They're making the decision required for just under 700 million in 2010. It's scheduled to go into production in 2019. We also have a number of the people who work with them and Meladine I work on our project. The Yellowknife is known as is in our key in Gold District.
00:15:23 It's comparable to Red Lake, Hermlo, Kirklland Lake, Timmins, Val D'or. The geology for example that Timmins is similar to the geology at Yellowknife with effectively the same age of rocks. This is explored the same way as you were those other caps. In our case the land that we've acquired is highly prospective ground the best ground in the cap right beside the city north, south of to past producing mines.
00:15:47 To high-grade mines these two mines over 60 year mine life produced over 14 million ounces of gold an average grade of 16 grams of ton. We have the extension of the trends that hosted agile those mines on our property. We've been aggressive and expanding the position away from our initial holdings. We increased at 129 square kilometers in January 2016 with additional capital last year.
00:16:10 We were able to go do additional staking now we have 418 square kilometers effectively tripling the size of our project area. The big advantage for us is we have excellent accessibility infrastructure. We are right beside the city this is a mining towns the supply center for the north for the diamond mines. We have our workers live in the city. We importantly we can work all year round. We don't have to have caps and fly people in dramatically reduces our cost which is important for a junior.
00:16:37 We in summary this is a high-grade gold district. It's a mining friendly jurisdiction. This is a mining town these people there hold a source of income is supplying the the mines to the north that are operating the Northwest Territories. We're adjacent to infrastructure which gives us easy access lower cost importantly we have 100% ownership. We own everything with no option payments.
00:17:00 The Northbelt area is where we initially started. We did a lot of work we were lucky to inherit drill database. Actually develop potential resources in areas such as Crestaurum with some high-grade drill intercepts it's a high grade zone. We've since made new discoveries such as Mispickel last year that we're working on.
00:17:19 Crestaurum Zone was I mentioned we have a lot of what we historic data plus our own drill holes. That you can see as a Block Model here study to develop resources. We've tested that over 1.4 kilometers it's still open a long strike. Still open down-dip because we haven't drilled it below 150 meters. On the Mispickel zone this is a new discovery we made last winter.
00:17:39 One of the highlight drill holes from the winter program was eight meters of sixty grams. Which caught us a lot of attention allowed us to attract some good strategic investors raised more money. This is a five kilometers of strike on this structure. There's multiple structures in the areas. These are wide zones of mineralization with high grade center zones with anomalous gold wide zones around it.
00:18:00 The drilling we did in the summer 2016 followed up and what we accomplished in the winter. Again we were testing it we want to extend a long strike. We took a deeper we traced the fall of the zone jeepers. We discovered other zones of mineralization such as a hanging wall with five meters of 30 grams a ton. Just to the South of Mispickle is Sam Otto this is a little different this is a bulk tonnage target you have large mineralized structure at service.
00:18:27 We've tested it along strike the we saw we did further drilling this winter. We've tested it deeper so far we know it goes at least 250 meters deeper seems to get better had bucked on their target which would complement the high grade from Mispickle. Dave’s Pond is just to the west of Sam Otto it's actually really adjacent to it. What we like about this that this has a high grade component to add to the endowment of Sam Otto.
00:18:50 We tested not along 400 meters of strike down 150 meters of depth and it's still open. This map shows that area the Mispickle to the North,Sam Otto just to the South Dave’s Pond immediately adjacent to Dave’s Pond nearly adjacent to Sam Otto. This is one large mineral eye system with high-grade component and a ball ton component that can add to the endowment in the area.
00:19:16 Moving to the south, the we state ground that was previously owned by the Con mine which is now being reclaimed and owned by Newmont. Con at state this ground because they identified that the structures they mined at the Con such as the Con sharer their name next year went onto this property. We have traced it for five kilometers on our property. We permitted this January began drilling.
00:19:39 We're following up on surface sampling we did land 2015 2016 where we had samples trenches of up to 95 grams of tons. Very good looking structures. Unfortunately spring came a little early or we started late how everyone look at it. We only got six holes into this target which deserves way more than that. We got five holes drills on the Cons you can see the left the green stars.
00:20:01 One hole into the new veins shear we wanted to do way more than that. We can begin it will be back drilling again in July. We're still waiting the assays from this six holes plus. We've got other zones number one shear and the number two vein that. We're going to follow up with in this program we're excited about that. Again we are major shareholders in the company ourselves.
00:20:20 We participated in placements for us the value is putting taking the money we raised putting it into the ground. We've spent in 2016 based on the numbers we put together for our recent audit of financials 80% of our overall expenditures were on drilling exploration. We are focused on putting the money where it belongs. We have 102 million shares outstanding our market cap right now is about $60 million.
00:20:45 We think that means we're very undervalued comparison to our peers. What I mean is peers where they have a district potential control a District a high grade district such of this. We have 21 holes results from 21 holes still pending from the winter program. We should have that wrapped up in the next few weeks then we're back at it again. We're going to begin drilling in July. We required a large land position where we're going to start airborne surveys field expert to be followed field exploration later in the summer.
00:21:16 Thank you for your interest in our company.
00:21:22 Frank Holmes: I actually do the three the best presentation, far in this this new model of communicating to investors. There's everyone like this? Rather than a half hour looking at maps getting a focus on what the drivers are. It’s so important to be able to sign up for their companies visit their websites. They'll send you the emails or say you the press releases that you're informed on a timely basis of their developments.
00:21:49 This is a big drilling season for all three? What do you think the biggest head went in? Is GDXJ that's supposed to rebalance on June the 16th?
00:22:00 Jonathan Awde: Yeah, I think it's a you know for our company just getting through that. I mean the fundamentals of our company haven't changed at all. If anything is they've dramatically improved since we got into the index on the 17th of March. A week later on the 23rd we picked up 21 thousand acres which represented about a 45 percent increase in our land package. For less than a million bucks to pay 24 bucks an acre
00:22:19 We've got cash positions is 48 and a half million bucks we're about to embark on our largest exploration program. It's an opportunity it's frustrating because your stock goes down it's completely outside of your control. Inflows that that impact the number that of shares need to get trimmed what your waiting will be it's it's been a bit of a learning experience for us. Cause it's the first time we've ever been in the export
00:22:41 Frank Holmes: Okay, great yourself.
00:22:43 Ivan Bebek: Yeah, well 55 to 70 thousand meters is. What we're drilling this year of the 7 projects we have one of them could be a company maker. When I say that I mean a Newmont scale company maker. The opportunity's huge in the effort to pursue better liquidity. We are in the very mature stages of a New York listing as well we're in the final stages of that. I expect that this summer. Really the drill doesn't stop turning. I've said it before its all discovery drilling this year.
00:23:10 That kind of drill hole that could triple or double or triple your stock out of a new discovery. We're taking about 240 chances this year. It'll be a big discovery other out of the north or down in south improve. It's going to be exciting on the discovery side.
00:23:22 Frank Holmes: Very good yourself.
00:23:24 Stewart Rogers: As far they head wins, I think what concerns us is probably just sort of the general. Yes feeling in the market it seems when the market is good our stocks up on the markets down is not. I think we're funded right now. We think we have the ability to rise more funding. We'd like to do that at better prices. We're excited to be back drilling. We think we will have more success.
00:23:39 We've got more results coming more drilling happening. We've got some exciting new targets that we just scratched the surface on. We're excited to be back doing it. I think my only concern is just sort of getting the response we deserved from the market the hopefully the environment improve.
00:24:00 Frank Holmes: I have mentioned other companies is that many companies became. Don't worry I'll just go in the index they'll drive my stock up not sensitive to retail investors. I've always been a big advocate that we're an institution. We put in big checks you have to have minnows. The minnows in this room are the price makers you're not the price takers you're the price makers. There's research that's done on the most widely held stocks in America had the highest price to book value.
00:24:30 How do they get the most widely held stocks is the biggest retail following. Therefore you get a greater valuation on price to book. It's a simple part of this component. I'm so thrilled that they've been responsive coming out sharing the story of why? Our team has spent much more in real folders in particular making this choice to make invest in these companies. That you could all understand our thought process in six minutes and 40 seconds. If you do like the story follow up with them they're very passionable they're well-funded. Let's hope that the Mother Nature blesses them with a big discovery this summer. Thank you very much thanks you. Thank you.
00:25:12 Ivan Bebek: Thank you very much.
00:25:13 Jonathan Awde: Thank you.