TerraX Minerals’ (TXR.V) share price has quadrupled over the past three months after it released excellent historical drill results that were never before reported by the previous owners. We spoke with Philippe Marchand from Paradox PR, who takes care of the Investor Relations for the company.
– What’s the current cash position of the company?
The current cash position is about $900,000. That covers the current exploration program, our first 5,000 meters drilling program scheduled for early January and the G&A of the company. The general and administrative (G&A) expenses are approximately $90,000 per year. This is low compared to other junior companies because nobody from the management takes a salary.
– Is working possible all year round at the Northbelt property?
Yes it is. The property is accessible by road from the city of Yellowknife which is just a few minutes away. We’re also just 7 km from Yellowknife Airport. That reality will make TXR save a lot of exploration costs since we don’t need to set up a camp on the property and support it. Importantly, the property is only 2 km from the new Blue Fish Hydro-Electric Dam which was built to support new mining projects.
– We were surprised TerraX was able to pick this property up from a bankruptcy sale. Werent the nearby competitors interested in this?
It was owned by Century Mining Corp. which was put into receivership by its secured lender. The financial difficulties of Century Mining were mostly due to production losses at its Sigma-Lamaque property in Quebec. It was a silent auction bidding process, and the only information about the Northbelt Project available was a 4 page list of claims and a property map. Our management team began searching for the historical data available at the NWT Bureau of Mines to dig out all the past results and decided to make an offer. In January, when markets and cash where tight for a lot of companies, we took the risk to bid higher than other interested parties which hadn’t done any research and didn’t have as much background information on the property as we did. TerraX picked the property up for $211,000.
– How much will the company spend on the 2013 exploration plans?
We will have spent about $400,000 prior to drilling, with about $500,000 budgeted for drilling later this year. Keep in mind we already have 175 historic drill holes to re-sample and that 75 of them have already been re-assayed with results reported in the September 18th, September 25th and October 2nd news releases.
– What would be the internal target for the first NI 43-101 compliant resource estimate?
This is a hard question to answer at this stage, but with the historical drilling information and the core re-assaying work that we are doing, we can clearly see potential for a significant resources on multiple targets as we are on the same geological structure as the past producing high-grade Con (5.5M oz) and Giant (7.8M oz @ 11 g/tAu) Mines. But before advancing on any number, we will have to test several zones with our next drilling campaign. We also have identified a very interesting and promising EM anomaly that could be a VMS target on the northern part of the property which returned 6.10 meters of 2.54 g/t Au, 204 g/t Ag, 11% Zn, 6% Pb, 0.55% Cu. We plan to drill test that as soon as possible as well.
Disclosure: The author holds no position in TerraX Minerals. Please see our disclaimer for current positions.