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$EXS...AMALGAMATION UPDATE...Where are we in the amalgamation process between Explor Resources TSX-V-EXS, NASDAQ-OTC-EXSFF, Frankfurt-E1H1, and Pure Nickel TSX-V-NIC, announced by both companies August 22nd, 2019? A $3million Convertible Debenture has been completed with NIC, and accepted by the TSX Venture Exchange. In large part, $2.5million of that is earmarked for a 35,000meter Definition & Infilling Drilling campaign at Explor’s Flagship property, the Timmins Porcupine West GOLD Deposit (TPW). Further, NIC, upon receipt of the Debenture funds, made a $500,000 Private Placement in EXS (at CDN.05), and that transaction has also been accepted, and approved by the TSX Venture Exchange.
So, now its up to the shareholders of EXS to complete the amalgamation. The ‘Record Date’ for the AGM (Annual General Meeting) has been moved to December 11th, 2019. By Exchange rules, shareholders must be given at least 30 days to review the AGM package of materials. That would suggest we should all have the material in hand near the beginning of November. Of course, most of us expected to receive the package by now. Given the nature of the proposed amalgamation, the Exchange has a plethora of written requirements, well above and beyond a basic AGM package. To be compliant, the package, with all its assorted, additional addendums, will look much like a manuscript for a long movie. And therein lies the long wait. The production of this documentation has been an arduous task, but very close to completion. The final step in the process is the approval of the entire package by the TSX Venture Exchange. Then, and only then, can the document be printed, and mailed out.
The apparent toughest choice we have approving the amalgamation, is the fact our stock positions will be cut in half. However, Pure Nickel (NIC) has been trading in a range roughly twice that of Explor (EXS), so I, personally, don’t see a big drop in my equity position. Further, as the drilling campaign gets underway at the TPW, I’m quite confident the amalgamated equity will strengthen nicely, especially with decent results. And, given the power behind the Debenture funding, I’m guessing that will happen sooner, rather than later.
I’ve seen, touched and scrutinized the TPW core samples referenced by Pure Nickel in its August 22nd release, quote, “drill holes TPW 11-60 -- 7.8 m @ 114.76 Au g/t and TPW 11-65 -- 3.3 m @ 28.46 Au g/t” (confirmed and quoted in an NI 43-101 report on the GOLD Deposit). The delineated strike length of the TPW to date is 2,000meters (1.25miles!), ‘open’ at both ends, and ‘open’ at depth, with GOLD values rising the deeper you go. Applying the industry standard ‘Hollinger/McIntyre’ mine modelling system to the Deposit, the TPW GOLD Resource has a CONSERVATIVE potential of 20,000,000 to 30,000,000ounces of GOLD. The model has been continually confirmed, and updated, through the results of Explor’s drilling of 133 Diamond Drill holes, and 65 ‘Wedges’, (and, all historical Diamond Drilling done on the Deposit by others, prior to acquisition by EXS). Notably, the Explor team found GOLD in 95% of all those drill holes and wedges. That’s unprecedented!
$EXS...METALS NEWS...About once a year, Chris Dupont provides a Corporate Update to Dr. Allen Alper, PhD Geology/Petrology who owns and operates Metals News. This year’s interview is available at www.metalsnews.com. The two gentlemen have known each other for many years, so Chris tends to be quite forthcoming with Dr. Alper. The interview, in my opinion, is quite good, hopeful, and promising. As a shareholder, I felt more optimistic about my investment in the Company moving forward after reading it.
$EXS...LIQUIDITY...GOING BIG...
In the Mining Exploration Market, regardless of the value of the asset(s), or the strengths of the management team of any mining company, nothing means more to any type of investor than LIQUIDITY. With literally thousands of ‘explorers’ seeking investment dollars to make their respective dreams come true, singling yourself out in the investment community is a huge challenge. And, obviously, to invest in the first place, we investors need to be convinced we are going to make money over our specific timeframe. To inspire those investors, the Company must find ways to generate ‘demand’ for the company’s stock that dramatically exceeds the ‘supply’, or stock offered for sale. As with any ‘Supply & Demand’ scenario, the higher the ‘Demand’, ideally, the higher the stock trading price.
Over the years, Explor Resources Inc. EXSFF-OTC; EXS-TSX.V; E1H1-Frankfurt has employed a variety of media facilities and services to generate interest in the Company, and ‘Demand’ for the stock. They have advertised in industry specific newsletters, newspapers, magazines & websites. They have employed newsletter writers with established distribution to feature the Company’s assets. They have participated in various Trade Shows and hosted investor events around the world. Other services have been employed to upgrade & maintain the Company’s website and develop their presence on popular social media.
All media providers & advertisers promote themselves, as they did with Explor, on the basis of how many people will actually be exposed to the Company through their service(s), or in their language…their ‘Reach’. Even though the ‘Reach’ associated with the various services employed by Explor over the years has been relatively limited, generally less than 100,000 people, each had some measurable impact on the stock, especially in conjunction with significant drilling results, or an important acquisition.
Recently, I’ve heard the Company has been researching a variety of media distribution services to ‘Reach’ as many new prospective investors as the budget will bear. Its rumored they are having discussions with a major US based firm to produce a highly informative video speaking to GOLD moving forward, and Explor over the next five years, obviously focused on the Company’s flagship Timmins Porcupine West GOLD Resource (TPW). This firm’s combined online and television distribution; national syndication; social media presence, and other optional media distribution represents a ‘Reach’ IN EXCESS OF 100,000,000 people throughout North America! That’s a thousand times more ‘Reach’ than anything the Company has employed in the past. I’m hearing that their video distribution includes the likes of CNN, Bloomberg, CNBC, and Reuters, to name just a few. Given the recent resurgence in interest in GOLD, I’m optimistic this move will have a dramatic bearing on the company’s future.
The development of the Company’s Timmins Porcupine West (TPW) GOLD Resource is the single most important event in Explor’s history. Initially extracting 250,000ounces of GOLD at the surface of the heavily explored Central Pit region of the Deposit, and then, excavating downward to an estimated 1,000,000ounces underground, Explor’s future equity value looks very promising.
The timing of this advertising campaign is very interesting. I know Dupont (the company’s President & CEO) has been working with a number of financiers over the past number of months. Perhaps this aggressive promotional campaign is being considered in conjunction with a funding agreement on the TPW GOLD Deposit?
$EXS...NOT LONG NOW...No news is GOOD news!! Since June, 2014 when a dear & trusted associate told me about Explor Resources Inc. (TSX.V-EXS; OTCPinks-EXSFF; Frankfurt-E1H1) I have been accumulating a position in the stock. Obviously, as many of you, I watch trading in the equity markets very carefully. The sustained lackluster interest in GOLD has resulted in a long downward trend in the entire Junior Exploration Sector. Explor is no exception to this trend, and has methodically moved to the downside as well. However, recent trading in ‘EXS’ on the TSX.V Exchange has been very, very interesting. Take a quick look at www.stockwatch.com 3Month Closes: https://www.stockwatch.com/Quote/Detail.aspx?snapshot=SX&symbol=EXS®ion=C. Over the past three weeks, we have experienced two substantial buying frenzies in the stock. The latest was Thursday, Friday, Monday, the 28Feb, 1st & 4th of March. During that stretch, 8,800,000 shares were bought, aggressively, moving the stock as high as CDN$0.04. Before that, during the four trading sessions between February 14th, & February 20th, a total of 7,105,000 shares traded hands. (Monday, February 18th was a Statutory Holiday in Canada). So, somebody bought 16million shares! There is only one reason anybody would buy that much stock, and that’s to make a lot of money. The size of the buying tells me it must be a very senior investor, or group, with a great deal of experience in the Junior Exploration Sector. They appear to be loading up, strategically letting the offers stack up for a period of time, then stepping in and snapping up those offers, minimizing their costs.
Most experts are forecasting GOLD prices as high as US$1,500/oz by year end. I tend to agree with that prediction, as do many of Explor’s largest shareholders I’m in touch with. Apparently, many Central Banks around the world are buying record amounts of GOLD as I write. According to data from the World Gold Council (WGC), Central Bank demand for GOLD increased 74% in 2018. Likewise, holdings in global GOLD-backed ETFs rose 72 tonnes in January to reach 2,513 tonnes (80.8m troy ounces), hitting the highest levels in nearly six years. Bearing all this in mind, this individual, or group, may be convinced the stock will do well moving forward, especially considering the 2010 runup to triple figures when the price of GOLD escalated to US$1,900/oz. Explor’s President Chris Dupont’s dream is to put the Company’s NI 43-101 qualified Timmins Porcupine West Gold Deposit into production. It’s estimated some 200,000 ozs. of GOLD sit at, or near surface, in the Central Pit region of the TPW Deposit alone, grading at 2-3grams/ton. Given the ‘Open Pit’ nature of the deposit, extraction would be highly economic. Even at US$1,200/oz, the gross revenue produced would be US$240million. Given a carefully structured plan, and timeline, the extraction could be done in about 5 years.
It will be interesting to see if the trading trends continue as they have been, and even more interesting should financing efforts on the TPW come to fruition.
Explor Resources Signs Option Agreement for the Sale of the Chester Property
ROUYN-NORANDA, Quebec, Feb. 12, 2019 (GLOBE NEWSWIRE) -- Explor Resources Inc. (“Explor” or the "Corporation") (TSX-V: EXS, OTC PK: EXSFF, FSE & BE: E1H1) announces that it has signed an option agreement with Puma Exploration Inc. “Puma”) to sell the Chester Copper and VMS, located in the Northumberland County, Province of New Brunswick.
The option agreement sets out the general terms pursuant to which it is proposed that Puma acquires the right to earn 100% interest from Explor in the Property. The property is comprised of three mineral claims totaling 163 mineral units. The Property is located in the Northumberland County, 70 km southwest of Bathurst, New Brunswick and 50 km west-northwest of Miramichi, New Brunswick, within the Bathurst Mining Camp. This area has an extensive history in base metal production from VMS deposits.
The Option to earn a 100% interest in the Property
Explor has granted to Puma the sole and exclusive right and option, over a three-year period, to acquire the Property for the following considerations: i) payment to Explor of an aggregate of $300,000 and ii) Puma shall complete a work program of $1,100,000 on the property, with a minimum of $250,000 during the first year of the option agreement. Upon the completion of these conditions over a period of three years, Puma will have acquired a 100% interest in the Property. Explor will also retain a 2% NSR royalty on the property. Puma will assume the remaining NSR royalties on the Property in favour of previous owners.
Not yet on the Explor website
Read more at:
https://ceo.ca/@nasdaq/explor-resources-signs-option-agreement-for-the-sale
$EXS...MAJOR FINANCING UNDERWAY...Starting in May of this year, a highly detailed Business Plan for the extraction of 250,000 ounces of GOLD from the Company’s Timmins Porcupine West GOLD Deposit was developed. A number of potential financiers signed Confidentiality Agreements, and discussions commenced. Apparently, over the summer, a number of proposals were received & reviewed by the Company. After lengthy negotiations, most were discarded as unreasonable, or unworkable, but one proposal had some merit. With one billion of funds under management, Dupont has been working closely with this group towards a workable financing for the TPW Extraction Project. The last I heard, we are very, very close to a formidable, and reasonable loan agreement. Further, (music to my ears), there is NO equity component to this agreement…no stock; no options; and no warrants. Obviously, the signing of an agreement, and release of funds in the mid eight-figure neighbourhood to Explor’s treasury would constitute a major material change in the Company’s status, so I think it would be reasonable to assume a halt in trading would take place, pending a News Release.
So, with the funding in place, some 20,000 meters of additional Definition Drilling would commence at the TPW, leading to an updated, independent NI 43-101 Resource Report. A proper independent Preliminary Economic Assessment (PEA) would also be undertaken, leading, in turn, to the Permitting Process with Government Agencies, and Aboriginal Authorities. Various equipment needs require lengthy lead times, so those would need to be ordered as quickly as possible, once clear parameters are established. Further site & operational details seem moot at this time, as they are well down the road.
A very credible buyer/Joint Venture partner spent a few days reviewing the plethora of core samples extracted from the Chester Copper Resource. This was followed by a careful examination of the existing portal, and drill locations on the site. Apparently, all went very well, and the gentleman left duly impressed with his findings.
$EXS...TIED TO GOLD...It has been suggested that the market value of a public mining company is what ‘The Market’ says it is. In other words, the .035CDN stock price of Explor Resources Inc. indicates the market value of the company, fully diluted, is roughly CDN$7,700,000. Looking at Page 35 of the most recent MD&A document available at www.sedar.com, the combined value of the company’s various property assets is CDN$35,536,838, representing fair market value. Obviously, we have a serious disconnect between the two numbers. All things being equal, on the basis of real assets alone, Explor should trade in the .22CDN neighbourhood, roughly SIX times the current price. So, why is the trading level so low??
First, and foremost, is the price of GOLD, which peaked at USD$1,900/ounce in 2011. Since then, we have seen a significant decline to the USD$1,000-1,380 neighbourhood; a recent downtrend to USD$1,225, & continued price uncertainty moving forward. Secondly, as the GOLD price peaked, so did the Toronto Venture Exchange, reaching a staggering 2,440points on a massive peak volume of 946,560,000 shares in March, 2011. Today, the exchange is at 712points, on a meager volume of 144,819,000 shares, representing 15% of the 2011 high, and a cumulative loss of 1,728points. https://web.tmxmoney.com/quote.php?qm_symbol=^JX&locale=en.
Now, if you overlay the EXS/EXSFF/E1H1 chart to the GOLD chart, and the TSX Venture chart, they are virtually identical. The logical conclusion is investor interest in Mining Exploration ebbs and flows with the price of GOLD in USD. Look at any mining exploration company’s chart over the past ten years, and other than the occasional anomaly, they are all pretty similar.
Having been in the Mining markets for a very long time, I’ve experienced this situation a number of times before. For whatever variety of reasons, as was the case in 2011, I strongly believe the commodities markets, and GOLD specifically, will peak again. Good mining explorers, including Explor, and their investors, will realize life changing gains when that occurs. Just go back to 2010-2011 to bear that out , as EXS/EXSFF/E1H1 climbed to $1.40.
The march towards production at Explor’s Timmins Porcupine West GOLD Deposit Central Pit is ongoing. I visited with President & CEO Chris Dupont last week. He gave me some seasoned insight into the process of finding the financial support for this project. Its complicated, detailed, and requires the patience of God. There is no end to Chris’ perseverance, so I’m totally convinced the funding will, eventually, fall into place. Although he could not mention specific names, he did volunteer that he is working with various, credible, and experienced sources, all of whom are deeply familiar with GOLD mining. In conjunction with the project, he’s in Sudbury this week for discussions with suppliers, and meetings with major investors in the area.
Further, during my visit with Dupont, I also drove out to the Chester Copper Deposit with the project’s chief geologist, a very old & dear friend of mine. The property itself is huge, but honeycombed with countless logging roads, providing access to all parts of the landscape. He showed me the various drill sites dating back to previous property owners, along with his excited commentary about the individual findings in each hole. We located, and discussed, some 50 drillings to maximum depths of 600meters. I also saw the existing portal into the deposit. It’s basically a corrugated steel cylinder some 30feet in diameter, sloping downward at about 15degrees. Apparently, around 100meters in, it forms a ‘T’ and carries on in either direction for some distance. I would be more specific, but the portal needs to be dewatered to gain full access. After scrounging around the portal for a while, I came away with two high grade copper samples to show to friends, and family invested in the stock. As commodities recover, I’m sure more work will be done to further delineate that resource.
$EXS...CONFUSING TIMES...Some of us have seen King Tut's death mask found by Carter in the 1920's. That one item contains 22.6 pounds of GOLD. It dates back to 1300BC, or roughly 3300 years ago. Other forms of GOLD currencies, and jewellery, date back even further, as a symbol of wealth and power. Look anywhere in the world, at any time through the past 5,000 years, and GOLD is present as a highly valued commodity. Even today, virtually every country in the world is accumulating GOLD reserves. There has never been enough GOLD to go around, and new deposits are becoming increasingly more sparse.
With that in mind, why is Explor trading at such a low price, given the 1,000,000ounces of GOLD at the Timmins Porcupine West deposit, and the methodical progress made to finance extraction of that GOLD from the Central Pit area??
The fact is, the entire GOLD sector, and mining generally, are way off their highs. Even mining deals spending millions on carefully placed ads, and endorsed by well known newsletter writers promoting their stock are going nowhere. With all due respect to the 'summer doldrums', the severity of the impact on the whole sector is unprecedented. Follow the money, and most is tied up in marijuana, blockchain, and cryptos. All three types of investments are in varying levels of uncertainty, dependant on politics, and banking institutions, both notorious for serving themselves, and their confederates. Where I saw reference to these three types of investments at 5% of my 200 daily e-mails a year ago, today, that has escalated to 75%! The media, even commodities based programs, are focussed almost exclusively, on these 'classes' of investments, rather than traditional mining ventures.
I've been cautioned to avoid any attempt at predicting GOLD, or any other commodity prices down the road. Frankly, could any one of us, given current circumstances?? What I do know is that prices have always recovered. It's the 'when' part that has even the most seasoned of us completely baffled. In the meantime, my confidence in Explor has not waned, and I picked up more to average my growing position.
$EXS...METALLURGY...In June, 2014, a close business associate of 35 years suggested I take a good long look at Explor Resources, and he gave me President Chris Dupont’s number to discuss an investment in the Company. Initially, I did a thorough review of the Company’s website; read the latest available MD&A (Management Discussion & Analysis) document, and I reviewed the Company’s financials. Having invested in some 300 mining exploration venture companies in the past, I had a half-dozen questions that would determine the extent to which I would commit to the investment. I called Dupont, and we spoke at lengths about the similarities between the Hollinger, McIntyre & Dome Gold Mines, and the Company’s Timmins Porcupine West Gold Deposit. We discussed the drilling done on just a small portion of the huge porphyry, with Gold found in 116 of 122 holes drilled. That led to a discussion about the computer-generated model of the TPW Deposit, and the likelihood of 20-30,000,000 ounces of Gold in that section of the porphyry alone. We talked about the promising potential of the Company’s Copper resource in New Brunswick. We also discussed the Company’s property holdings within a couple of kilometers of the prolific Glencore Kidd Base Metals Mine, and the ‘cluster effect’ of VMS (Volcanogenic Massive Sulphide) deposits. We touched on the variety of other mineral assets in the Company’s portfolio. Following this lengthy process of due diligence, I made my first purchase of Explor the next morning. That buy was at .025, and I have been adding to my position ever since. To date, that continues to be my lowest price, but I have bought at virtually all prices to a high at .23 over these past four years. More recently, I’ve added more at .04-.05. Given my firm belief Gold will take off to new highs in the near future, I’m quite happy with the average price of my holdings. The entire mining exploration business has suffered over the past couple of years, but will quickly gather steam as the price of Gold escalates.
Obviously, a great deal has happened over these past four years. It hasn’t always been pretty, but given Dupont’s massive holdings in the Company, and those of his family and friends, I know that every decision made by he & the Board of Directors has been made in an effort to enhance shareholder value. We have seen a number of strategic property acquisitions; exploration drilling on a variety of properties, and successful negotiations with regulators, and aboriginal authorities. Most notably, at the TPW, a sixth, previously unknown shear zone was found, adding more promise to the deposit’s potential. Over all, I’ve become convinced the Board of Directors has the expertise, and experience, to deal with the variety of issues that will require attention, moving toward actual production at the TPW Central Open Pit.
The recent Metallurgical Test results of the proposed TPW Pit samples are nothing short of spectacular. I’m not going to pretend to be an expert in interpreting all of the results, but a 93% Gold Recovery Rate; a very high ‘Free Gold’ percentage, and essentially no arsenic production is extremely rare, and implies significantly reduced production costs. Although extremely difficult to interpret by the average investor, the various results of this complex process suggest a higher dividend to all shareholders down the road. It should also be viewed as a major step forward, as knowledgeable financiers will immediately recognize the cost reductions, and ease of Gold extraction. Equipment, processing needs, and infrastructure to create Gold concentrate at the TPW are dramatically minimized by this news. The ‘metallurgy’ of the deposit will also make the permitting process quicker, and less cumbersome.
$EXS...SHOW ME THE MONEY...I’m in touch with quite a few investors in Explor Resources Inc. (EXS/EXSFF/E1H1) on an ongoing basis. The big question every one seems to be struggling with, is whether or not, President & CEO Chris Dupont, and the Company’s Directors, can nail down the loan required to exploit the 250,000ounce TPW’s (Timmins Porcupine West GOLD Deposit) Central Pit area.
I started investing in Junior GOLD miners in 1978. My broker was a crusty little gent with Continental Securities in Vancouver. He put me into a Primary Offering he was doing called Corona Resources. He was friends with legendary stock promoter Murray Pezim who, at that time, was drilling on the Porcupine Destor Fault Zone, where the TPW is located. After some 90 failed drilling attempts, he finally hit the ‘glory’ hole, Hemlo was born, and the Corona Resources stock went through the roof. It was Pezim’s tenacity, determination, and undying commitment to getting the job done, that won over financiers Gus McPhail, who ran Continental, and Peter Brown, who established Canarim Investment Corp, (now Canaccord) to fund the venture to the ultimate end result. I met Murray myself, he was all business, and displayed all those qualities during our meetings.
Dupont has all the qualities Murray had. Before I invest in anything, I take a very hard look at the people running the show. I did that four years ago when the Company was brought to my attention by an associate I trust explicitly. I made it my business to meet with Dupont, and I have spent a great deal of time with him since. So, although I must honestly admit to some personal doubts along the way, Dupont and the team have always found the money to get the job done. I’ve learned over these past four years that no other result is acceptable to Chris, no matter what it takes…no matter how long it takes. So, assuming he does eventually nail down the loan, and work gets started at the TPW, with an eventual Dividend to shareholders, what impact do you think that will have on the stock price???
I’ve heard the preliminary metallurgical numbers at the TPW are ‘stunning’. In view of the complex nature of the plethora of results, the lab continues to prepare their final report. Apparently, GOLD recovery rates are well above average, and we have a lot of ‘Free GOLD’ as well. In my experience, that will be music to financiers’ ears, as, ultimately, extraction costs will be considerably minimized. Remember, Detour GOLD, Goldcorp, IAMGOLD, and others in the region, all began as an ‘Explor’. Nothing was more exciting to their early shareholders than watching their stock double, double again, and then double again.
$EXS...BREAKOUT?? “As GOLD goes, so goes Explor Resources.” Donny’s latest tweet put a shake into GOLD yesterday, realizing US$1,365/ounce, but alas, by day’s end had drifted back to the low $1,350’s, another tease to all us GOLD bugs. Chartists, & analysts, have drawn a line in the sand at $1,375. General consensus suggests that breaching & holding above that price will signal a strong move upward. The Kitco 5&10year charts www.kitco.com/charts/livegold.html appear to be getting bullish, and look very promising moving forward. SO…WHAT? Well, the higher GOLD trades, the more the Central Pit of the Company’s Timmins Porcupine West (TPW) GOLD Deposit is worth. In the Dr. Allen Alper www.metalsnews.com interview at the recent PDAC, he was blown away by the value of the 250,000ounce potential of US$300million, based on US$1,200ounce. Should GOLD hit $1,400, or beyond, obviously the proposed dividend payable to shareholders, will be exponentially higher. That must also, surely, be on the minds of the prospective financiers Dupont has been busy working with. So, I picked up another bunch of shares yesterday, and will probably pick up more at these severely depressed prices.
I’ve heard the final flotation tests on the TPW core samples have been completed, so the metallurgical testing phase is finished. The lab is preparing its final results for the Company’s Directors, and I believe we will see a NR speaking specifically to this, and the impact the deposit’s metallurgy has on GOLD recovery rates, and cost estimates at the TPW. Obviously, this essential insight will be invaluable to the financiers, as they prepare their proposals.
Please don’t allow yourself to be fooled by the daily, & ongoing quotes for Explor Resources provided by the banks, which suggested 119,200 shares traded at .035, making the stock appear weak. Save the following link… https://www.stockwatch.com/Quote/Detail.aspx?symbol=EXS®ion=C. There you can clearly see a variety of sub-boards to the Toronto Venture Exchange. The actual volume yesterday was 2,208,300 shares, last at .04, on 52 separate trades. That tells me that interest in the equity appears to be growing…
With another inexpensive, important acquisition, Dupont clearly sees a major profit for shareholders as GOLD, & Base Metals move higher, firmly believing we will breach previous highs in the foreseeable future. The NR of April 11 is both comprehensive, and promising. I encourage everyone to read it for themselves http://explorresources.com/assets/docs/news/2018-04-11-NR-EN.pdf.
$EXS...IMPORTANT REPORT...IMPORTANT INTERVIEW...Firstly, I wanted to express my appreciation to the bashers on the Stockhouse Bull Board for taking the time to post their thoughts, even though they don’t own any stock. Seeing their postings is, of course, unavoidable, as the site’s posting rules are pretty relaxed. Collectively, however, they have had an impact on the price of the equity, as some investors have obviously decided to move on, buying into their nonsense. Add to that, the ongoing fluctuations in the metals markets, as well as speculator interest moving to other well reported sectors, and its no surprise that Explor stock is at a 4 year low. To me, that represents a very surprising entry point for any new investor, or a terrific opportunity to average an existing holding.
Corporately, the Company’s assets have grown exponentially over the past 4 years. A requirement of the Toronto Venture Exchange is the quarterly submission of an MD&A report (Management Discussion & Analysis). Explor’s most recent report is dated March 29th, 2018, and can be found at www.sedar.com. I’ve read hundreds of these reports over the years, but have never seen one as thorough, or as comprehensive, as this one. It spans 49 pages, offering investors the answers to virtually any question they might have about any of the Company’s properties. All fifteen property blocks are described in infinite detail, including history, drilling, and plans moving forward. Excluding the recent Hoyle Pond property block, those corporate assets are conservatively valued at CDN$36,400,000 (Pg36).
My most recent discussion with Chris Dupont was very encouraging. ‘Significant’ progress has been made with American, and European based lenders in regards to the financing of the extraction of 250,000ounces of GOLD at the Timmins Porcupine West GOLD Deposit (TPW). He also indicated that the metallurgical testing results should be forthcoming as early as next week, and that preparations for delineation drilling at the TPW are underway. He also suggested investors should follow www.metalsnews.com as a comprehensive, and informative, interview between Dr. Allen Alper and Dupont should be posted to the site by the end of the week.
In my experience as a shareholder of this equity, I’ve never had any doubts about the experience, or professionalism, of the Directors, or key personnel. I find it sad that the equity is tied more to the price of GOLD, and Copper, than to its assets, or people.
$EXS...SLOW & STEADY...The prevailing belief shared by many of the attendees at the PDAC, as well as a number of presenters at the event, is that the value of GOLD will reach, and exceed previous highs. The Federal Reserve in the US has made it clear it intends to raise interest rates two, or three times during 2018. Its widely felt that debt, and the increased debt servicing costs may, in fact, bankrupt a number of institutions, and potentially, start a domino effect throughout the financial community worldwide. Add to that the myriad trade uncertainties internationally, and the perceived net effect is that GOLD will move, at least considerably higher. Explor is focussed on further delineating the Central Pit area of the Timmins Porcupine West GOLD Deposit (TPW), to further satisfy lenders that 250,000ounces of GOLD are readily available for Open Pit extraction in that area of the known deposit. The TPW GOLD deposit is very close to the Tahoe mill at Bell Creek, as well as Goldcorp’s facilities slightly to the east of the deposit, so processing the ore shouldn’t present a problem. I personally witnessed a lengthy discussion between a very senior Tahoe official, & two of the Company’s Senior Geologists, one of whom spearheaded all the TPW exploration to date, and will lead the delineation drilling team at the Central Pit on site. Selected TPW core samples from the proposed Open Pit have been sent to the lab for metallurgical testing, which should be completed within the next few weeks. That testing will determine, with some relative accuracy, anticipated ore recovery rates, and hardness factors, that in turn, impact extraction costs. My understanding is that a number of lenders from the United States, and Europe, are considering supporting the open pit scenario on the heals of the testing.
Further, I wanted to point out an interesting observation in regards to the March 5th results at the Company’s East Bay property. Although its very early days, its very encouraging not only to report 4.85grams over 2.5meters, but also to find GOLD ‘in the sediments’. This easily merits additional drilling as many important GOLD deposits have been discovered in sediments around the world. At the TPW, the ‘glory hole’ returned important values in the sediments, which led to the higher-grade discovery at depth.
Congratulations to the team on yet another important property acquisition the other day. The Hoyle Township block lies directly between Tahoe, & Goldcorp, and represents the fifteenth ‘property of merit’ in Explor’s impressive portfolio. With the prolific Bell Creek, Owl Creek, & Hoyle Pond GOLD mines directly south, & very close by, exploration undertaken in due course should be very interesting.
$EXS...PDAC DAY TWO...The PDAC convention floor was congested all day Monday, and from the minute the show started, the Explor Booth #2122 was very busy. The long awaited East Bay drilling results were released in the morning, and a number of people wanted more on those. The team has a newly prepared hard copy handout of the East Bay Power Point presentation which will be available on the Company’s website shortly. The title on the morning’s announcement of 4.83grams/tonne GOLD over 2.5meters certainly caught my attention. Given the evolving plan to put the Timmins Porcupine West GOLD Deposit (TPW) Central Pit area into production, its difficult to say when further work will be done on the vast East Bay holdings. Further, at least two very senior representatives of major producers in the region came by the booth, and both stayed for extensive periods scanning the details associated with both the TPW plan, and the East Bay drilling plans, & results. Witnessing their seasoned interest in those projects firmed up my resolve to stick with my holdings in the Company for the foreseeable future. I can assure you both the individuals seemed very enthusiastic about their respective areas of interest.
As the day wore on, a variety of brokers, fund managers, and private investors visited the booth. Many stayed for extended periods listening to Dupont, and the other two geologists explaining the merits of the Company’s Chester Copper, & TPW GOLD resource properties. Others wanted more details about East Bay, and other of the Company’s fourteen property blocks. Needless to say, I felt it was a really great day at the show for Explor moving forward.
Lastly, the Stockhouse film crew will be coming by the booth to do a video interview with Chris Dupont, which will be featured on the Stockhouse site. I’m quite certain it will in turn up on the OTCQB website; a variety of financial websites; the Company’s website; and YouTube as well.
$EXS...PDAC DAY ONE...PDAC 2018 kicked off at 9:00AM Sunday. A variety of folks descended onto the Explor Booth #2122 immediately, and all four of the Company’s representatives sprung into action. It was a very busy day, with, as expected, quite a few private investors looking for corporate updates & information. I had the opportunity to review the latest TPW (Timmins Porcupine West GOLD Deposit) Power Point presentation, in written form, and was struck by the quality of the work, and its content. It hasn’t been uploaded to the website as yet, but will be shortly. Chris Dupont has been working hard on a plan to actually put the TPW into production. Apparently, we have a total of 8 GOLD veins in the Central Pit area of the known deposit, measuring roughly 750x570meters. Its estimated we have about 250,000ounces of GOLD at an average of 2grams per tonne in that portion of the known deposit. Its pretty obvious that Dupont has put all of his 40 years of Mining Engineering experience to the task of putting forward a very convincing scenario to investors, and lenders. Following some further delineation drilling at the Central Pit site, lenders will have all the information needed to finalize loan agreements, and the permitting process can begin. Dupont seemed very encouraged by the quality, and number of serious investors that spent time at the booth. Most seemed quite impressed with the TPW plan moving forward. I’m also hearing that the East Bay results may be announced as early as later today. Its rumoured we have a couple of impressive intersections. I’ll report more from the PDAC tonight, or tomorrow morning.
$EXS...A FEW THOUGHTS...I am a long-term investor with a substantial stock position in the Company. Like all investors, I share others’ concerns about financings, liquidity, and share price, and, like all other investors, I’m anxious to get positive, promising news from the Company. I am not a Director, or Officer, and am, therefore, NOT privy to ‘inside’ information. CEO Chris Dupont & I share a keen interest in the junior mining sector, and Explor Resources, specifically. None of my postings have ever represented ‘Official News’ to existing, or prospective shareholders. However, when I hear something from my contact base (spanning the past 35 years) of interest to my Explor holdings, I include it in my ongoing reports. I speak to Chris with some frequency, as I do with all my friends. I know he also speaks with a number of other investors on an even more regular basis. I always do my utmost to put forward a positive spin on everything I hear. To do otherwise would jeopardize the value of my stock, wouldn’t it? I find some recent detrimental commentary on certain Bullboards curious, as they absolutely have the intention of discrediting anything positive about the Company, & it’s holdings. With 747,000 shares wanted at .045CDN, one reason behind these postings becomes perfectly clear. For those that buy into the nonsense, an organized local cartel is enriched with cheap paper.
Something we’re all anxious about recently is the East Bay drilling results. The major issue is that we have a very limited number of labs servicing the region. Given the dramatically increased drilling activity, especially from Osisko, as well as Detour, Tahoe, and a plethora of ‘Juniors’, getting core analyzed has become the most difficult, and most time consuming, aspect of the drilling process. Further, preferential treatment to the big guys means our core gets shuffled down the list. Osisko, for example, is doing 500,000meters of drilling, at their Windfall, and Garrison properties. That’s unheard of in the region. Dupont is in Timmins today, and his first stop is the lab. I don’t think it will be a pretty scene as we have now been waiting for over three months! That is just unacceptable to Dupont, and he will do whatever is necessary to resolve this issue. With the PDAC just a couple of weeks away, he wants the results, and some of the heavily mineralized core, to enhance Explor’s presence at the event.
I’ve heard from a couple of my sources that metallurgical testing of core from the ‘central pit’ of the Timmins Porcupine West GOLD Deposit (TPW) will be taking place shortly. That’s a very important step in the process towards full scale production. I’ve also received confirmation that drilling in a northerly direction is taking place at the Kidd Mine, on a number of levels, by a major Toronto based drilling firm. As such, they are apparently rapidly closing in on the most southerly of the Company’s Carnegie Property holdings, specifically, Claim#4210980, located about 2.5km (1.5miles) due north of the Kidd Mine. During the summer of 2016, the Company drilled that claim & discovered Exhalite, and meaningful Zinc values in a number of core samples, suggesting a VMS Deposit is hiding below the property! Further, I’m hearing that more than a casual interest is being expressed in all of the Explor properties surrounding the Kidd Mine, by a very well-informed group.
$EXS...NEW VIDEO INTERVIEW...The following YouTube link,
$EXS...UPDATE...Was the Friday selloff in the big board equity markets in the USA, and around the world, the beginning of the long-awaited correction? Like most of us, regardless of our experience level, its difficult, at best, to understand all the macro factors that play into the price of GOLD. My head starts to swim when experts talk about Treasury yields, interest rates, inflation, the USD, futures contracts, and the ultimate, broad impact on equities, GOLD, and other commodity prices.
Nonetheless, the Explor office is busy responding to the Stockhouse.com crowd funding opportunity initiated last week. Apparently, some 35,000 emails were sent to Stockhouse subscribers, generating quite a bit of interest. Others are responding to the plethora of ads scattered throughout the entire Stockhouse site, and the ‘Deal Room’ icon. Dupont must have tremendous confidence that the $2,000,000 Placement will be completed, as in recent memory, he has never put out an announcement until after the fact. That could mean that Delineation Drilling at the Company’s Open Pit GOLD Deposit at the Timmins Porcupine West Property (TPW) could get underway imminently. Upon completion, all the new assays would be passed along to fully upgrade the NI43-101 Report, which could substantially increase the known resource. Likewise, a $1,000,000 Delineation Drill Program at the Chester Copper Resource in New Brunswick could ultimately, increase that known resource, when the NI43-101 Report is upgraded.
Its become pretty obvious that if a lab guy makes a promise, he’ll keep it if he feels like it! Dupont is so angry about the ‘pending’ East Bay Drilling results, (in the lab’s hands since the end of November), and all their unfulfilled ‘promises’, he’s threatened to retrieve the core samples, and have them analyzed elsewhere. Whether that gets them motivated to complete the job quickly, remains to be seen. The samples contain considerable visible mineralization, especially Hole #2, which Dupont is very excited about. Personally, I find it alarming that material information important to all investors in a public company, can be held hostage by some irresponsible little lab rat!
Lastly, I’m hearing a new video interview with President/CEO Chris Dupont should be available by the end of this week.
$EXS...STOCKHOUSE DEAL ROOM...If GOLD mining was easy, everybody would be doing it. I recently read an extremely informative article by Jim Sinclair ‘Mindset’ speaking to the problems miners face in our world. Here’s a link to a really great read, https://www.jsmineset.com/2018/01/23/mining-supply/. Financing in a strong, or bull market is easy. When GOLD, and other commodity prices are peaking, miners’ phones are ringing constantly, with offers of debt, or equity financings, one after the other. In our current market, rife with cannabis, cryptocurrencies, blockchain ‘opportunities’, and a USD bouncing up & down, GOLD, and copper miners are feeling the pinch. Explor is no exception. With a number of Confidentiality Agreements (CA’s) in place for months now, Dupont has been very busy on a number of fronts, providing info, negotiating terms, and dealing with lawyers. To date, no agreements have been finalized, although various levels of progress have been achieved. Ultimately, all of these efforts will put money in the Company’s Treasury, to further the Directors’ ambitions in regards to a number of the Company’s properties. Most notably, of course, are the Timmins Porcupine West Open Pit GOLD Deposit (TPW), and the Open Pit Chester Copper Deposit in New Brunswick, both with NI43-101 Resource Reports. Through these various negotiations, the promises of potentially tens of millions of dollars loom large, but could take many more months to complete. Given that backdrop, how else can progress be made to enhance the value of the two main promising assets, each needing $1,000,000CDN to complete delineation drilling? The ‘Crowd Funding’ opportunity at Stockhouse.com, through their ‘Deal Room’, has successfully completed dozens of placements for a broad array of public companies. Explor Resources launched such a placement today, with Stockhouse initially alerting some 35,000 subscribers to the deal. Based on past performance, management expects the placement to complete within a few weeks, ensuring Delineation drilling will be underway at the TPW, and at the Chester Copper Deposit, in time for the Prospectors’ & Developers Annual Conference (PDAC) in Toronto March 4th to 7th. With an attractive Flow Through Tax Benefit, I can see it happening even more quickly. That development would put Explor head & shoulders above most exhibitors at the show, and pique interest in the equity moving forward. Traditionally, EXS/EXSFF/E1H1 has moved upwards on great volumes of buying during, and after this annual event.
$EXS...$1,400USD GOLD?...I find it interesting that a few comments from the US Treasury Secretary at the Davos gathering in Switzerland, more so than a nuclear threat on Hawaii, can spark an increase in the value of GOLD, & decline in the USD. I’m also hearing a lot of rumble about the US returning to a GOLD Standard, to underpin the currency. Apparently, the new Fed Chair appointed by President Trump is sympathetic to that notion. Is there enough GOLD in the world to do that? Enhancing the GOLD landscape even further is the growing fear of a minimum 5% correction on the major US indices, believed by most experts to be about two years overdue. Taking a quick look at major indices around the world, most listed equities trade at roughly 15 to 20 times earnings. However, the major US indices are running 30-40 times earnings, or severely ‘overbought’, by anyone’s standards.
With three Open Pit zones, the 1,000,000oz GOLD resource at Explor’s Timmins Porcupine West property becomes more attractive with each uptick of the price of GOLD. The Delineation drilling plan has been completed, and management has been working tirelessly to finalize funding for the plan. Dupont believes all the pieces will be in place shortly, and is hopeful the project will be well underway as the 2018 PDAC event in Toronto commences in early March. Further, the drilling program on the Company’s East Bay property is now complete, with initial assays due any time now. Dupont is in constant contact with the lab, and has been assured that he will have the results in hand, by no later than the end of next week. Those results will include the heavily mineralized second hole that management seems to be quite excited about.
During my recent discussion with Dupont, he also indicated progress is being made in regards to the Chester Copper resource in New Brunswick. A Delineation drilling plan has been developed, and he seems quite positive about ongoing discussions with potential suitors.
$EXS...BEST YEAR EVER? The dozens of calls, and personal visitations Dupont has had with shareholders, especially over these past few weeks has paid off. The AGM took place this morning, and all resolutions presented to registered shareholders were passed by a wide majority. So, with Chris Dupont’s continued leadership, we march forward into 2018. Reiterating a Dupont comment from my recent Xmas Report, 2018 promises to be the best year ever.
Emphasizing the geopolitical tensions moving forward, we received a frantic call from our daughter visiting Hawaii, huddled in a luxury hotel stairway, truly believing her end was imminent. I’m sure many of us were personally touched by this incident, perhaps foreshadowing a darker future? Tensions are running as high as I’ve seen in recent years, ironically, a positive for GOLD. Current price action appears to be a function of a weakening USD, more so than a surge in demand. Trying not to sound like the boy crying wolf, a dramatic increase in the Volatility Index (VIX) from 5-15% since the beginning of the year, strongly suggests major markets will realize an imminent correction. Historically, that is good for GOLD. Bearing in mind a plethora of other factors, I think Dupont could be right.
Open Pit delineation drilling at the Timmins Porcupine West GOLD deposit (TPW) has been completely mapped out, suggesting negotiations with a major US Fund are moving in the right direction. Knowing Chris, chances are pretty good he has a backup plan to ensure the TPW moves a step closer to production.
When I last spoke with Dupont, his enthusiasm about the current drilling campaign at East Bay was palpable. Early results, including the seriously mineralized second hole, with the cooperation of the lab, of course, should be announced within the next 2-3 weeks. I’m certain CD is all over them like a bad rash to ensure they come through! Drilling has continued, with a number of interesting mineralized sections sent to the lab, from various key locations around the property. Although the program calls for a total of 3,000meters, Dupont has authorized deepening of at least two holes so far, based on excellent visuals of the extracted core.
Some months ago, Confidentiality Agreements (CAs) were entered into with a number of potential suitors to the TPW, the Chester Copper Deposit, and other Company properties. With the holiday season behind us, & dramatically improved commodity prices, I’m hearing progress is being made on a couple of fronts.
#EXS...AGM...The Company’s Annual General Meeting (AGM) will take place January 16th, 2018. You should have received a ‘Voting Instruction Form’ in the mail by now. If you intend to vote, & have your voice heard, I would strongly recommend you do so by no later than this Friday, January 12th to ensure that the votes are included at the AGM. The process is extremely simple, and can all be done online in a matter of minutes.
The East Bay drilling program is proceeding nicely. I’m hearing the most recent hole, close to the western border of the property block, encountered significant mineralization at the 500meter level, and is proceeding to a depth of 600meters. Obviously, results will take 4-6 weeks to analyze. The second drill hole, completed just before Christmas, should be analyzed by the end of this month. With extensive mineralization, I’m sure management can’t wait to see if the results measure up to the optimism displayed with their visual observations of the core.
I would recommend all shareholders take a good look at the Company’s latest Management Discussion & Analysis (MD&A) available at www.sedar.com. The most significant part, from my point of view, is the total assets figure of $35,000,000. That would suggest a stock price considerably higher than the current trading level. I’ve suggested the trading activity on the TSX Venture Exchange leads me to believe some clandestine group is working hard to maintain a depressed stock price. Their clever use of the variety of ‘Sub Boards’ to the TSX Venture Exchange makes it appear as though the stock trades less than it does. If you trade through a bank, they only report actual Venture Exchange trades, and none of the sub board volume. Go to www.stockwatch.com, pull up EXS, and then hit ‘3 Month Closes’. There you will see that 2,355,000 shares were traded on the TriAct sub board alone since the 20th of December! It seems any time a significant market buy order comes in, it gets gobbled up by the sub boards. If all you ever see as an average investor is your bank quote, the stock appears ‘weak’, as the true trading volume goes unreported. The most frustrating thing, from my point of view, is the Exchange is helpless to do anything about it!
Explor Resources Inc (TSXV:EXS) is now board working with chart, detailed quote, info and more.
http://investorshub.advfn.com/Explor-Resources-Inc-TSXV-EXS-33002/
$EXS...A VERY HAPPY NEW YEAR??Happy New Year to all of you! So, GOLD looks promising again, having breached the US$1,300/oz benchmark. The variety of basic indicators, and imminent geopolitical risks, suggest the price could move much higher. That unto itself should help Explor’s equity price, given the company’s array of promising GOLD exploration prospects. So, what is the plan for 2018? Extensive geophysics at the East Bay properties near Duparquet, Quebec identified a number of very exciting drill targets. To date, drilling has been completed at two of those targets. It’s rumoured the second drilling, very close to some excellent historical drilling, showed about 100meters of visible mineralization, within the 600meters of depth achieved!! The core is in the lab, but if the numbers play out, this could be some very good news early in the New Year. Drilling will continue as planned this week to examine other identified targets in the meantime, to make up the remainder of the 3,000meters budgeted for.
The original plan for the Company’s Timmins Porcupine West GOLD Deposit (TPW) was to find a Joint Venture partner, or financier, and do what was necessary to further prove up the resource. Initially, that would entail doing a lot of Step Out drill holes to ‘tighten’ up the distances between existing drill holes. A budget of $1,000,000 had been suggested for this plan. In turn, that would increase allowable resource estimates for a planned, updated NI43-101 Resource Report, currently at 1,000,000 ounces. My sources are telling me we are close on the TPW funding, but on a very different track. Whenever I have heard the phrase ‘Delineation Drilling’ in the past, my heart pumped a little faster. Invariably, that always meant preparation for actual GOLD production. Over the 2,000meter Strike Length of the TPW GOLD Deposit, we have three valid Open Pit areas, with an average grading of 1.8grams GOLD/tonne. Many producers in the region are processing material grading 1gram, or less. It’s rumoured a US based group has been in close contact with the Company, and have expressed their willingness to provide the financing to actually produce GOLD from the TPW property!!! Apparently, Dupont has been burning the midnight oil developing a logical, and realistic plan to make this happen. With a 3% Net Smelter Return (NSR) on the TPW property, and a new 50,000Tonne per day facility on the horizon, I think Goldcorp would be the most obvious recipient of the TPW material looking forward. The Delineation Drilling anticipated is an extremely important first step, in a process that would, realistically, take 18-24 months to actually materialize. Plus, we’re looking at some very serious cash to get it done. As I get further rumblings on this new development, I’ll immediately post my findings. All in all, however, as things develop on these two fronts, we could look pretty attractive by early March, just in time for the PDAC Convention in Toronto, the largest assembly of mining & investment professionals anywhere in the world.
#EXS...CHRISTMAS REPORT...I had a brief chat with Chris Dupont the other day. First, and foremost, he wanted to thank all shareholders for their patience, & support, and to wish all of us the very best Christmas with family & friends. He added that 2018 could be the best in the Company’s history, given some of the developments behind the scenes. Following a brief time in Montreal, he joined the East Bay drilling crew last week, on site, as they completed the first hole, and assisted with logging, splitting and getting the core samples to the lab. He wouldn’t comment on any visible mineralization, awaiting assays, presumably in the New Year. The second hole is down to roughly the 350-400meter mark, at a site some 10km from the first. He expressed a lot of optimism about this second location, which should achieve full depth by this Thursday, when everything stops for the holiday. Although he wouldn’t share the exact location, he did indicate this second hole is very close to some significant historical drill results.
Adding in the recent property acquisition, the total regional land holding at Ogden has grown to 2,006.56 hectares. That’s a huge piece of land. Within at least one of the blocks, we have some past production Dupont wants to take a serious look at moving forward.
I’ve discovered the drilling contractor working at the Kidd Mine is not a local company. I’m guessing that’s to keep the local rumour mill from getting around Timmins, & Sudbury. I’m waiting to hear more from locals who are trying to get more info. If, in fact, there is merit to a new, secondary, VMS deposit north of the mine, Explor’s Carnegie property could be worth a fortune.
Whilst I was hopeful that negotiations with a number of groups might have come to fruition by now, things are still in process. With Copper’s US$3.15/lb. price tag, the Chester copper/ silver resource continues to become more attractive to prospective JV partners, or buyers. Further, very serious discussions regarding putting the Company’s Timmins Porcupine West (TPW) GOLD resource into production continue.
As customary this time of year, tax loss selling offers a tremendous opportunity for all serious investors to take advantage of.
$EXS...UPDATE...Firstly, thanks for all the nice comments & support I received during my recent illness. A very long time ago, it was suggested that if an Insider was buying stock in his public company, that that would be the very best reason for me to do the same. According to SEDI: https://www.sedi.ca/sedi/SVTItdSelectInsider?locale=en_CA, Dupont’s position in Explor has increased dramatically over the past two months. If he were to exercise his Options, and Warrants, his holding in Explor would be about 15million shares, up from 2million just a few months ago. In tandem, I’ve picked up another 100,000 myself.
Following a long run of geophysics, geochemistry, analysis of rock samples and target selection at the Company’s East Bay property, an initial 3,000meter Drilling program started last week. Referring to the schematic on the Company’s website http://explorresources.com/assets/docs/maps/EastBay001A_Octobre_12_2010.pdf a depth of 500meters has been realized in Hole #1 near the west central edge of the property block. Given the local drilling history, with a number of mineralised showings, Dupont is optomistic we could encounter an important shear zone within the next 100-200meters. Another four or five holes are planned at carefully selected targets. Dupont is in Montreal, & then he is heading to the East Bay site to visually inspect the core, and assist with targeting of the additional drill holes.
Renewing a rumour from two years ago, a couple of my sources are telling me that the Glencore Kidd Mine is extending northward at considerable depth to a sister VMS Deposit they have discovered? Explor’s Carnagie property is about two kilometers directly north of the mine. Explor drilled a number of deep holes and discovered exhalite at various deep levels, a known precursor to a VMS deposit. In fact, Dupont actually received a call from Glencore’s VP Exploration at that time clearly stating, “Please call me if you find something.” Please private message me if you have any info on this, or are willing to share what you are hearing.
According to Goldman Sachs, a longtime bear-turned-bull, copper will surpass US$4.00/lb given demand, especially from China, is seriously outstripping supply. https://www.outsiderclub.com/if-you-missed-out-on-copper-dont-miss-out-on-this/2520. Although I have not heard anything definitive, the plan at the Chester Copper Deposit in New Brunswick is a further $1,000,000 Drilling campaign to further delineate the deposit, & strengthen the case for a profitable open pit operation. A number of CA’s (Confidentiality Agreements) were signed with mid-tier & large GOLD & Base Metals producers in the past few months. Could a Joint Venture be brewing? Likewise, I’m hearing a couple of groups are entertaining open pit excavation at the Timmins Porcupine West GOLD Deposit (TPW), potentially trucking to local mills. Wouldn’t that be cool?
$EXS...INSIDER BUYING!...As many of you are aware, I have been accumulating Explor Resources since June of 2014. A number of Convertible Debentures, and Private Placements have been done to support ongoing operations since that time. President & CEO Chris Dupont has never participated personally in any of those placements. So, important to investors, why is he putting up $200,000 of his own money now to buy stock from the Treasury at .07, with a Warrant to buy a bunch more stock at .12? Its been rumoured that a $1million Drilling Program is planned at the Timmins Porcupine West GOLD Deposit. Likewise, I’m hearing a $1million Drilling Program is planned at the Chester Copper Deposit in New Brunswick. Both programs are designed to increase the size, & scope of the known resources, currently Measured & Indicated at 1million oz of GOLD at the TPW. The Chester Copper Deposit has a Measured & Indicated resource of 27,626,000lbs of Copper, and 123,064ozs of Silver, and an Inferred Resource of 32,384,000lbs of Copper. A number of CA’s (Confidentially Agreements) have been signed, or are in process, with mid tier, and major GOLD, & Base Metal producers. The East Bay Drilling Program has been put on hold. Dupont can’t buy, or sell, stock on Insider Information, so, again, why now? What is it he believes moving forward?
There is no doubt that the action we have experienced in the metals complex in 2017 has been exceptionally frustrating, especially as the market presented us with several break-out set ups that did not follow through. 2017 has been one of the most challenging years ever within the metals complex. In the past, geopolitical, or, macroeconomic events generated major swings in precious metals. Despite a number of such events, GOLD & Silver have remained static. The notable exception is Copper, which has held in the US$3 plus/lb range. The demand for physical GOLD & Silver continues to grow, and supply, especially GOLD, continues to diminish. So, for whatever variety of reasons germane to long term plans, the powers to be continue to bash precious metals downward.
“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.” - Sir John Templeton
In my humble opinion, Dupont believes the bubble is about to burst, and is preparing for that eventuality. He believes GOLD, (and Silver, and Copper) are going much, much higher in price as we move towards, and into 2018. I totally agree with that belief. EXS/EXSFF/E1H1 has seen $1+ when GOLD approached its $1,900 highs just a few years ago. With profoundly more asset base in the Company, exponentially greater returns are probable. Further, with an anticipated climb in precious metals, I suspect negotiations with producers will intensify favourably for all shareholders.
$EXS...ACCUMULATING...I started accumulating a position in Explor Resources Inc. (EXS/EXSFF/E1H1) in June, 2014. My opening buy was at .025Cdn. I’ve paid as high as .23Cdn, and over the past few weeks, have added to my position at .07. This morning, I picked up another 20,000 at .06. Why do I continue to buy this Company? Fundamentally speaking, management is sound, and infinately qualified. A major German Investment Fund owns a large position. A major Montreal brokerage firm owns about 8-9% of the outstanding float. The Company owns a dozen attractive, large GOLD & Copper rich mineral resources, at various stages of exploration. Two of those properties have NI 43-101 Resource Estimates. All their properties have been meticulously assembled over a number of years. Currently, the Company is working on developing Joint Venture Agreements, and possible Earn-In Agreements. As I suggested in my last piece, we’re in the calm before the storm. Any form of Agreement with a mid tier, or major producer, will be accompanied by shareholders of those producers acquiring shares of Explor. For example, we saw this in a huge way with Tahoe shareholders buying Lakeshore Gold, on the rumoured takeover bid, months before becoming formal. Coincidentally, Tahoe’s production facilities border the Company’s Timmins Porcupine West GOLD Resource (TPW) to the west.
I’ve done very well over the years, accumulating, waiting it out, and selling my positions when things mature. I confidently believe Explor will pay a handsome return if I’m patient enough.
https://seekingalpha.com/article/4115931-gold-weekly-smart-investors-keep-accumulating?auth_param=13spee:1cuv1r4:4b8e24349ae5acbfbf1a2d6cefb27c2f&uprof=44&dr=1
$EXS...CONFIDENTIALITY AGREEMENTS...At least two Confidentiality Agreements (CA’s) have been signed with Explor in the past two months. A couple of other CA’s are in legal process. A CA to most is no big deal. However, you have to ask the question, why would well established mid-tier, or large producers negotiate & sign such a document if they were not really interested in a specific asset, or assets in the Explor portfolio? Obviously, they wouldn’t waste their time reviewing volumes of material; analyzing the merits of the asset(s), or ultimately preparing an offer, would they? The only way they would even consider signing such a document is if they could clearly see a pronounced benefit to their future production, assuming the price is right. Given the advanced exploration status at the Timmins Porcupine West GOLD Resource (TPW), and its proximity to various mills in the Timmins GOLD Camp, I would venture this asset is being seriously scrutinized by a prospective suitor, or two, (or three?). Likewise, given Copper is at three-year highs, I would suspect we may be seeing new, or renewed interest in the company’s Chester Copper Resource in New Brunswick, Canada as well. Both of those property blocks have NI 43-101 Resource Estimates with interesting numbers. Then we have the large GOLD exploration property blocks at East Bay, PG-101, Eastford, and Kidd Creek. Any serious mid or large producer would be happy to add any of these to their portfolios, given historical GOLD, and/or Copper production, & future potential. It should be noted that the 3,000meter drilling program at East Bay has been on hold for a number of weeks now, opening one’s thinking to a number of possibilities for that historically GOLD rich block of claims & concessions. So, whilst the macro factors with their ebb & flow, wreck havoc with the GOLD sector, Dupont, and his crew are intensely busy negotiating a brighter future than the market might suggest. Having just returned from a promising trip to Europe, Dupont is confident that the proposed million- dollar drilling programs at the TPW, and the Chester property will be underway in due course. Personally, I think those will be financed either through an outright property sale, Joint Ventures, or Earn-In Agreements.
$EXS...DEALS TAKE TIME...If you’ve ever been in a hurricane, there is a pronounced lull, where the winds die down for a few seconds, and everything gets eerily quiet. That lasts for a minute or two, and then the full rage of the storm unleashes. Explor, both in the market for the stock, and corporately, appears to be in such a lull. A 3,000meter drilling program should have occurred by now at East Bay. All prerequisites have been attended to. Permits are in place. The budget is set aside. Excellent targets have been meticulously elected. So, why is there nothing happening? I’m just guessing here, but my gut tells me Dupont is working out the details of some kind of deal with another company, maybe some intermediate, or major GOLD producer looking to enhance their portfolio? Given my experience of Dupont, and the other directors, it’s the only scenario that makes any sense, and the only reason he would put the drilling program on hold.
Secondly, repeatedly, I’m hearing rumours that one of the major GOLD producers is taking a very serious look at the Timmins Porcupine West GOLD Deposit. I suspect that might include the Ogden property package as well. Given the TPW’s proximity to many important producers, the rumour has some credibility. Tahoe, and Goldcorp, are, without any doubt, the two most credible, and most logical, suitors to those properties. Kirkland, Detour, or Osisko could also be looking. At this point, my sources are not certain who’s behind a possible acquisition, or other arrangement.
Speaking to both potential deals, & others, I suspect, I’m reminded of the process leading up to the Teck Earn-In Agreement back in 2014. It took Teck a couple of months to evaluate the merits of the TPW. Regardless of the keen level of both parties to complete a deal, extensive negotiations had to take place to satisfy both parties. Then a legal document needed to be developed, clearly outlining the Agreement. Then it needed to be tweaked a number of times to fully satisfy the intent of both parties to the Agreement. The point is that although it appears nothing is happening, I know Dupont is working his tail end off to bring these, and other, agreements to fruition which will, ultimately, benefit all shareholders. Dupont typically works 12 to 16 hours a day on Explor, so what else could he be doing? It should also be emphasized that he picked up another 58,000 shares personally last Friday.
A final observation about the current trading suggests that some Tax Loss selling is taking place. This is very typical in the final quarter of the tax year, and presents a terrific opportunity for new, & existing shareholders to load up on very attractively priced stock. Putting my money where my mouth is, that’s exactly what I’ve been doing, regularly adding to an already substantial position.
$EXS...A DEAL LOOMING?...On a number of occasions, I have suggested our fate lies in the price of GOLD. Generally speaking, that price has been a function of the undulating USD, sensitive to the relentless musings of the Federal Reserve, and geopolitical events. Most of us with holdings in any GOLD related equity follow a variety of websites, and newsletter writers, in an effort to better understand the future value of GOLD. Recently, some opinion suggests that value will see a retracement, representing a great opportunity to buy into physical GOLD, futures contracts, and GOLD equities. A prevailing 75% of the writers I follow are very bullish on GOLD moving forward, with opinions ranging from USD$1,400/oz, to an unbelievable $10,000, projected as early as year end. As an ageing parent, & grandparent, my financial legacy is of paramount importance to me, so my research, & subsequent decisions, take on an even deeper meaning than ever before. So, why do I keep buying more Explor? Firstly, I love the current price. Secondly, I know, and have come to respect, the Company’s management, and their professionalism. Most of all, following another reading of the Company’s Management Discussion & Analysis (MD&A) found at www.sedar.com, you can’t help but be impressed with the hectares, and hectares of prime exploration projects on the Company’s books. The first 35 pages of the report are devoted to the history, and progress to date, on each & every Explor property asset.
Dupont has made at least three trips to Toronto over the past few months. I’ve heard a number of CA’s (Confidentially Agreements) have been signed by parties interested in looking at specific properties, or Earning-In on others. Would he really be planning $2million in fall drilling campaigns to extend the resources at the Timmins Porcupine West GOLD Deposit (TPW), and the Chester Copper Deposit, if he wasn’t completely convinced he would have the money? Names like Tahoe, Goldcorp, Osisko, & McEwen have come to mind, & mentioned as realistic candidates for possible deals. So, my contention is that we’re close to a major announcement. What, & who eludes me, although I do believe we’ll all be impressed.
$EXS...TORONTO TRIP...I spoke with Dupont at lengths yesterday morning. He was about to leave for Montreal when I caught up with him. He’s been in Toronto since last Saturday, & basically tied up since then meeting with, in his words, ‘a variety of groups, & individuals’. Other than displaying his usual enthusiastic optimism, he would not provide me any details of any of the meetings he attended. However, he did indicate that every property on Explor’s books is for sale, at the right price. I found that a very interesting unsolicited comment. So, speculating for a moment, did Dupont meet with Tahoe, or Goldcorp in regards to the Timmins Porcupine West GOLD Resource, and/or the Ogden properties? Or, did he meet with Kirkland Lake in regards to the PG-101 properties? Did he meet with Osisko, or McEwen? All of those outfits would have a keen interest in many of Explor’s properties. Some may recall the spectacular drill results at the company’s Eastford Lake property a few years back, which blew the stock into $1.00 plus territory on the news. Maybe we have a potential buyer for that property block? Ultimately, the main purpose of his trip is to fund a $1million fall drilling campaign at the TPW, and fund a $1million fall drilling campaign at the Chester Copper property in New Brunswick. Any property sale, or Earn-In Agreement, could easily achieve those objectives.
Speculating some more, it strikes me as somewhat odd that the fully funded 3,000meter drilling campaign at East Bay still hasn’t started. Last time Dupont & I spoke about that, he seemed to be very anxious to get the program underway. I’ve heard the geologists have completed their work relative to the site, and I know for a certainty, mobilization of crew & equipment wouldn’t take but a few minutes. So, what’s changed? Did he meet with IAMGOLD, bringing new considerations into that objective?
All the large, & intermediate GOLD producers in the Timmins, & Duparquet Camps are actively seeking out sensible, & ultimately profitable property acquisitions to ensure feed for their hungry mills. With GOLD holding around $1,300, and our variety of GOLD & Base Metal properties, are my speculations really that much of a stretch?
Lastly, office staff are busy with quarterly results, & an updated Management Discussion & Analysis (MD&A) should be available in the near future.
$EXS...RESOURCE ESTIMATES & PEA...Mining exploration is a long, and incredibly complex process. Looking at the Company’s Timmins Porcupine West GOLD Resource, recent drilling added a lot of credibility to an Open Pit start up scenario, preferred by the Big Boys. With the assistance of a Toronto based group, Dupont’s immediate concern is further tightening up various sections of the known deposit, prior to contracting a 43-101 Resource Estimate upgrade. He’s determined to do at least another 10,000meter drilling program, before that happens. He fully understands the criteria of the Tahoes & Goldcorps, and one small step at a time, is making the TPW more compliant with that criteria. Obviously, the cost of the 43-101 upgrade is significant, so Dupont wants to be certain that the new numbers will constitute a considerable improvement over the existing ones. Then, possibly, we can consider spending at least $100,000 to have a PEA (Preliminary Economic Assessment) done. If I was looking to spend that kind of money, I would want to have a pretty good idea of the outcome as well, long before getting started.
Apparently, Dupont will be in Toronto next week for a number of meetings, presumably to sort through some financing opportunities. Given some of the mystery surrounding previous trips to Toronto, are one or more of the TPW suitors ready to present proposals? I guess we’ll find out soon enough.
I’m hearing great progress has been made towards start up of the 3,000meter drilling program at the East Bay GOLD prospect. Geologists have been matching geochemistry, & geophysics, to determine the very best initial drill targets in the Company’s vast land holdings in the region. I would think the proximity to neighbouring producer IAMGOLD might be a consideration as well?
Speaking generally, negative interest rates in Europe, and Japan, are driving a major flight to physical GOLD, increasing demand. Further, according to the latest COT Report, GOLD Futures contract numbers are accelerating rapidly, gaining 14,250 contracts on the upside potential of GOLD moving forward just this past week. The 10-11% deterioration in the USD since the beginning of this year has also helped GOLD test 2016 highs. The future looks bright for any pubco with a GOLD resource. Our day will come.
$EXS...BAFFLED...I’m just baffled by the recent trading activity in Explor. GOLD is in the USD$1,330 range, and Copper USD$3.11. Those prices, when considered in relation to the Timmins Porcupine GOLD Deposit, and the Chester Copper Deposit in New Brunswick, should easily suggest a minimum $30-40million Market Cap. Divide by 160million shares, and the stock price even on those minimums is in a range of .18-.25CDN. Obviously, the numbers are not exact, but you get my point. So, is it really shareholders driving the price backwards every time we brush double digits? Or, is something else going on? I’ve contended on a number of occasions that Explor, with its impressive array of promising GOLD exploration properties along the Porcupine Destor Fault, and in the Duparquet GOLD Camp, would be an outstanding takeover target? When I see the clever use of ‘Dark Market’ trading platforms regularly hiding trades from the retail buyers’ eyes, it suggests, & promotes weakness in the stock. Ultimately, when the culprits make their offer to the board at say .25/share, the vast collective shareholder base might be likely to take it. As GOLD moves into $1,400, & beyond, EXS/EXSFF/E1H1 will see $2-$3.00. I believe that’s inevitable. So, please don’t be fooled by the nonsense. Now, let’s see how our favorite paid bashers respond?
Apparently, drilling at East Bay will commence shortly. Geologists are in the process of finalizing the geochemistry, and geophysics associated with potential targets, and crew & equipment are being mobilized. Further, the M&A group are hard at work, and I expect they will be presenting some interesting proposals during the coming weeks.
$EXS...WHY EXPLOR? Most of us are aware of Tahoe Resources’ very serious problems at their massive Escobal silver mine in Guatemala. Beginning in June, local protesters initially blocked access to the silver deposit, and over the past couple of months, gained the support of the courts to shut down operations. With no solution in sight, the future of the mine appears quite grim. Tahoe’s stock price closed August 25th at CDN$5.58, down over 50% since mid June. Tahoe’s situation speaks volumes to Dupont’s focus in politically stable Canada. All of Explor Resources(EXS/EXSFF/E1H1) exploration assets are focussed in Ontario, Quebec, and New Brunswick. Tahoe is rumoured to be one of the serious suitors interested in Explor Resources Timmins Porcupine West GOLD Deposit (TPW), especially given the resource is adjacent to their Gap 144 GOLD Resource. With pressure from their shareholders, I would think the Tahoe directors would want to put out some GOOD news? As an unhappy Tahoe shareholder, acquisition of the largest porphyry ever found in the Timmins Porcupine Destor Fault, with an HMC Model suggesting 20-30million ounces of GOLD, would make me a lot happier! With the added scramble for regional GOLD assets by Goldcorp, Kirkland Lake, and more recently, McEwen, I suggest the proposed 5-10,000meter drilling campaign slated for this fall at the TPW, may, in fact, be financed by others. I suspect proposals are being prepared for Dupont, and the Board to consider?
Dupont is in Val d’Or, Quebec this week, meeting with the geologists that performed the preliminary work on the company’s East Bay GOLD property block. Explor is the single largest property holder in the Duparquet GOLD Camp, holding some 11,000hectares. IAMGOLD is the second largest in the region. Apparently, following a meticulous geophysics program, some 80 grab samples were sent to a lab in Val d’Or for multiple element testing. Dupont is undoubtedly hopeful the results will be available, as they are a meaningful component in deciding where to drill the 3,000meters proposed on East Bay. I’m also hearing he will be in Timmins for a number of meetings during the week. I know some of Explor’s largest shareholders are anxious to hear from him personally about plans moving forward. I’m guessing he may be meeting with the odd TPW suitor as well?
Lastly, I’m hearing an influential M&A group is developing a comprehensive presentation on Explor to present to prospective financiers; possible Joint Venture Partners; and serious mineral property buyers. Well experienced in the field, I’m expecting some interesting developments from them over the next couple of months.
$EXS...VIDEO DRILL RESULTS DISCUSSION...Both of the following interviews were conducted after the NR last Friday outlined the results of the drilling program at Explor's Timmins Porcupine West GOLD Deposit. Dupont clarifies the importance of the drilling results moving forward in two distinct video interviews. The first is with George Tsiolis of Agoracom, a lively, thorough exchange offering much clarification of the drill results, and potential moving forward. Specifically, they emphasize the crazy 95% success rate finding GOLD in 121 of 126 drill holes to date, and in 64 of 65 ‘wedges’ to date. Shear Zone #5 has consistently yielded values of 5-9gms/tonne. Discovering that the Zone extends eastward, & trends upward, puts a whole new complexion on the Open Pit scenario, of tremendous interest to our prospective suitors. Although little detail is offered about the newly discovered Shear Zone #6, deeper than #5, it would be reasonable to suggest the GOLD content would be comparable to #5, as values have consistently trended upward, the deeper the Company has drilled. Dupont also clearly states, ‘people are looking at it (The TPW GOLD deposit) now!’ He also states the Company’s intention to do a 5-10,000meter drilling campaign in the fall at the TPW. The obvious question: Is a Joint Venture in progress, given a program of that size would cost $3-4million? The other video interview is hosted by Tim McKinnon of ABN Newswire, making a number of references to the 'Open Pit' outline of the TPW GOLD Deposit, providing the viewer a far better understanding of the true size & scope of the deposit. Interestingly, he specifically mentions Tahoe, and Goldcorp in this video!? All shareholders, and prospects should, IMHO find a few minutes to view these, as they paint a very promising future for that resource, and the equity.
http://www.smallcapepicenter.com/EXS%20-%20BTPR%20-%2008182017.mp4
http://www.abnnewswire.net/press/en/89622/exs
$EXS...THE TPW OPEN PIT...Quoting a major shareholder in a text to me this morning, ‘It didn’t take long for the criminal cabal to knock down the price of metals.’ Likewise, the instant the news on the drilling at the Timmins Porcupine West GOLD Deposit was released, our own junior cabal worked its magic in the market, suggesting the release was a huge disappointment. In turn, we little minions were expected to offer our stock, for these sharks to gather up at pennies on the dollar. Please do not be fooled by this obvious rouse. At US$1,300 GOLD & $3.00 Copper, Explor’s world class asset base only becomes more & more valuable, & attractive. Today’s News Release extends the TPW GOLD deposit. It confirms the continuity of GOLD bearing ‘Shear Zones’ at depth. For example, Shear Zone #5 is a high-grade zone discovered at depth in the central part of the deposit. One major result of the recent drilling confirms that it inclines towards the surface as it trends to the east. We did not know that before. Further, a new Shear Zone #6 was also discovered that was previously, completely unknown! That’s extremely exciting, as this GOLD bearing zone could span the entire TPW structure. The major intention of the 3,000meter drilling program was to strengthen the ‘Open Pit’ potential of the deposit, to make it even more attractive than it was before. Given nearby open pit operations thriving on 1.5gms/tonne, the 2-3gms/tonne suggested in Explor’s estimate would have any GOLD producer excited about Joint Venturing, or purchasing the property. The drill campaign exceeded its objectives, and increased the value of the TPW. Don’t let someone else’s selfish interests convince you otherwise.
$EXS A PERFECT WORLD...We are all anxious to see, and interpret, the concentrated 3,000m drilling results at the Timmins Porcupine West GOLD Deposit. Do those results strengthen the Open Pit potential of the deposit? Does the drilling program have an overall effect on the entire deposit? What impact does the recent drilling have on the 43-101 Resource Report? What influence might the results have on negotiations with an impressive group of suitors to the TPW? I am a shareholder, and answers to those questions are very important to me, as I’m certain they are important to all of us. In my perfect little world, the drilling crew never makes a mistake; the drilling takes a week to finish because drill bits do not get stuck half way down a hole, and those bits never need to be replaced. Likewise, equipment never breaks down, and should it do that, replacement parts are magically installed within minutes. The core gets visually inspected, logged, cut, and sent to the lab within an hour of being pulled out of the ground. The lab guys roll out the Red Carpet in anticipation of Explor’s samples, drop what they are doing, and immediately crank out the results. All Explor Directors ready themselves for a Skype conference, and the News Release is out the next morning. LOL. Not once in my 40year investment tenure has any of that occurred. I do know Dupont spends whatever time, and effort he feels is necessary to ensure the NR is technically accurate, and casts a positive picture to the reader. I’m hoping he’s close to the end of that process.
$EXS...MEASURE TWICE...Given the relative importance of the 3,000meter drilling campaign to the Timmins Porcupine West GOLD Deposit moving forward, Dupont, and his crew, are painstakingly going over every inch of core to put the lab results into the proper perspective. One of them actually created the HMC (Hollinger McIntyre Coniaurum) computer model of the TPW GOLD deposit many of us have seen featured at the PDAC. I suspect he might also be entering the lab results into that modelling system to further validate both the ‘Open Pit’ potential, as well as the notion the deposit could possibly exceed 30million ounces. Further, of course, is the concern that all new insights are dead accurate for the prospective suitors to the TPW, to ensure the best deal for all shareholders’ benefit. The old adage, ‘Measure twice, Cut once.’ springs to mind. Personally, although I’m a little disappointed the News Release didn’t come out this morning as I had hoped, as a longer-term holder with a significant position, I continue to rely on the expertise I’ve come to trust explicitly to do the right thing, at the right time. Apparently, the NR will be forthcoming sometime this week, once all the details have been finalized. Immediately on the heels of the release, at least one new video interview with Dupont will take place to discuss the results in some detail, incuding their impact on the entire deposit. I’m hopeful we’ll be viewing that Cheshire grin again, as the interviewer poses some leading questions?
$EXS...DRILL RESULTS IMMINENT...We’re all excited GOLD appears to be getting stronger lately, holding in the US$1,265-70 range. Given some of the most recent geopolitical events, it’s somewhat surprising that we haven’t exceeded US$1,300 as yet. Hopefully, that realm is close at hand? Word from my associates suggests we could be looking at the Timmins Porcupine West GOLD Deposit drill results by the end of this week. If Dupont receives them Thursday or Friday, chances are he will hold off on a formal News Release until after the long August weekend, or Tuesday, the 8th. It’s probable a new video interview with Dupont will highlight the drill results, and possibly offer an estimate into upgraded TPW numbers? Obviously, any upward estimates, especially near surface, will strengthen the ‘Open Pit’ attractiveness to our prospective suitors. Speaking to those suitors, progress has been made on a number of fronts, with some positive feedback. Given its early days, when we will actually see proposals for the TPW is very difficult to estimate, although 2, or 3 may be forthcoming.
With Copper hitting two-year highs, revisiting the company’s Chester Copper Deposit seems appropriate. Based on the current two-year high of US$2.82/lb, that suggests the value of the known deposit is approximately US$295million. Apparently, some new interest has been expressed, and a prospective partner/buyer is taking a very hard look at the potential at the Deposit. That is an exciting new development! The drill results released last fall were nothing short of spectacular, especially near surface, firming up a solid case for an ‘Open Pit’ scenario.
$EXS...TPW DRILLING?
The most recent information in regards to the drill core analysis is that we are close to seeing some preliminary results. Apparently, the lab has lost a key staff member recently, which has set their entire testing system back a couple of weeks. New supervisory staff have stepped in to bridge the gap, and they are doing their utmost to deal with the increased work load. The lab has been pushing for ‘the end of this month’, and we can only hope they will be true to their word.
A number of additional information requests have been processed, initiated by potential suitors to the Timmins Porcupine West GOLD Deposit. I would suspect they are as anxious to see the results of the recent 3,000meter drill campaign as we all are. Although the concentrated deepening and step-out drilling was focussed at the eastern end of the deposit, the results could put a very optomistic spin on the remainder of the GOLD Deposit, given similarities over the entire known 2,000meter Strike Length, and similarities encountered at depth. Given the preliminary visuals of pyritic concentrations where they were expected, associated GOLD values could lead to some very interesting lobbying for the deposit.
So, we will undoubtedly see a News Release outlining the results of the drilling, and at least a couple of proposals from established local GOLD producers. That should be music to any investor’s ears. Hang in there, everyone. This could be exciting.
$EXS...TIMMINS MEETINGS? Very nice to see GOLD trading a bit stronger to start the week. Optimistically, the upward trend will continue. The sad reality is the paper market will continue to dictate the price of the commodity, regardless of a diminishing supply, and growing demand in the physical GOLD market. I’m seeing growing opinion amongst the experts I follow that a correction in both the S&P, and Dow is on the horizon. Some are suggesting this will happen as early as 4-6 weeks, and are recommending liquidation, and profit taking over the next 2-3 weeks. That sort of financial event, although brutal for most, is usually good for GOLD. And, its generally good for any equity with GOLD.
Given that back drop, I’m hearing some interesting rumours about Dupont’s trip to Timmins last week. Apparently, he was seen in the company of some of the biggest neighbours the Timmins Porcupine West GOLD Deposit has! I also heard he met with at least five separate groups! The rumours are unsubstantiated, so the names of the companies Dupont met with would be just guesses on my part. The point is, our President & CEO appears to be actively searching for a partner, or buyer, for the TPW. I suspect these meetings in Timmins may be follow ups to Dupont’s mystery trips to Toronto last month? All the intermediate, or senior GOLD producers operating in the Porcupine Destor Fault Zone, are publicly traded companies. As such, they all have a mandate to increase shareholder value, and ensure a continuous flow of proven up feed material to their mills. Given the proximity of the TPW GOLD Deposit to most of them, its conceivable we could have a number of bids for the property, especially once the assays are released on the 3,000meter drill program completed late last month. Once those assay results are incorporated into the Hollinger-McIntyre modelling system, and the 43-101 upgrade completed, we should have a GOLD Deposit worthy of a very serious look by all the majors, & intermediates. As I’ve indicated in the past, the TPW has a 2,000meter Strike Length, open at both ends, and open at depth. I think those facts will play heavily in the ‘Deposit Potential’ thinking of any prospective bidder. I also don’t think we’ll be waiting very long for proposals, given the number of ‘groups’ involved. I’ll keep my ear to the ground, and report as I hear anything further.
$EXS...UNDERVALUED? YA THINK?
Ah...the summer doldrums. With GOLD at recent lows, its nice to see EXS/EXSFF/E1H1 holding the prevailing .065-.07 level. That represents a Market Capitalization of just over $10million CDN. Let’s look at the company’s ‘Cap’ for a minute. The Timmins Porcupine West GOLD deposit alone, with 1,000,000ounces at say $100/oz is at least $100million. The Chester Copper deposit in New Brunswick is easily worth at least $200million, presuming I got all the numbers right? The East Bay, PG-101, Kidd & Ogden property blocks have got to have a combined value in the tens of millions to the right buyers? Other corporate assets are all properties of merit that I’ll disregard for the purpose of my little exercise. Dealing only in the assets mentioned, our Market Cap should be in the neighbourhood of $300-350million! From my perspective that translates to a relative $1.95-2.10 stock price. I can hardly wait for the reaction I’ll get to that assessment from my favorite professional bashers! I have listened to, and read literally dozens of interviews, and articles, on the future value of GOLD in USD. Experts with tremendous credentials agree, almost without exception, that GOLD will have a run up to at least USD$1,400/oz. Some, like Rob McEwen, founder of Goldcorp, has stated publicly he believes we’ll see that, before the end of 2017. His company McEwen Mining is on an expansion plan that includes acquisitions in the Timmins Porcupine Camp. Again, reiterating my recent question, ‘Why in the world would Goldcorp be spending $2billion on a 50,000ton/day mill, and very quietly acquiring potential production in the Timmins Porcupine Camp?’ Globally, GOLD supply has been on a diminishing trend against a growing demand. All the Big Boys know this, and are preparing for a highly anticipated GOLD Bull Run Up, gearing up facilities, and methodically acquiring properties. Given Explor’s assets, Dupont’s recent Toronto trips, and Chesire grin in the video interview released last week, my gut tells me we may be on the cusp of a major announcement, which could have a profound impact on the equity. His absolute refusal to speak to the trips speaks volumes to me. ‘Where there’s smoke, there must be fire.’
$EXS...NEW VIDEO INTERVIEW...I hope everyone had a fantastic long weekend celebrating Canada’s 150th birthday, and the Fourth of July in the US. I continue to be excited about Dupont’s trips to Toronto, and the pending drill results from the Timmins Porcupine West (TPW) project. During the past couple of weeks, I’ve added significantly to my holdings in the stock, on the promise that Dupont’s odd recent trips, may involve a ‘Major’ mining company. That is total speculation on my part, but from my point of view, his absolute silence about the trips, speaks volumes to that possibility. A new video interview has been prepared and distributed this morning. http://www.abnnewswire.net/press/en/89003/exs. CD speaks to East Bay moving forward, surrounded by IAMGOLD. He also discusses the status of plans at the PG-101, within a stone’s throw of Kirkland Lake GOLD’s operations. He also seems more than hopeful about the recent drilling at the TPW. Regardless of a recent dip in GOLD, Explor traded well yesterday, with over one million shares trading hands. Hopefully, this improved volume will continue in trading sessions to come?
$EXS...THE MINIONS GATHER...While we anxiously await word on the Timmins Porcupine West (TPW) drilling results, I thought it might be fun to look in on the Good Little Minions, and the Evil Dorks. It had been about a year since the Minion Clans had gathered at a secret location on the Abitibi Greenstone Belt, the traditional home of the Good Little Minions. While the women tended the children, and prepared the annual feast, a diverse group of Minions Elders assembled around the Explor Believers’ Eternal Flame of Hope. They squatted in groups, and were easily identified. From the North American West Coast, the Elders all wore bear skins, and a salmon strapped to their heads. They were known as the Fish Head Minions. From the plains, the Timber Wolf Minions wore wolf claw necklaces, and orange ‘Cat’ ball caps. From the deep south, the Craw Fish Minions sported fish net leggings, and holsters with mickeys of bourbon. The Eastern clans, although fashionably late, arrived in droves. From Florida, the Seedless Minions were all dressed in pink, giving homage to their fruit. From further north, the Cheesesteak Clan centered in Philadelphia arrived on horseback, yelling, “The Dorks are coming! The Blue Whale Dorks are coming!” The Screw You Minions of New Yawk arrived wearing someone else’s shoes, and, shamelessly, loin cloths. From Belgium, the Brussels Sprouts, naked, trying to buy clothes with Euros, and from Germany, the Sauerkraut clan, wearing their traditional lederhosen, and military boots. All quite unique, but all have positions in EXS/EXSFF/E1H1, representing probably 50% of the float. This year’s event was hosted by the Timmins sub-sect, The Hard Luck Miner Minions, easily distinguished by their sooty pallor, and poor taste in clothing. As the Grand Master Jack moved to the podium in front of the Flame, all eyes shifted to him as he spoke these words in his usual subdued, but emphatic way, ‘The Dorks are powerful! They manipulate the GOLD market, and keep it depressed. That in turn depresses Explor Resources, our baby. Evil Dorks!’ A loud outburst came from the crowd who echoed the chant ‘Evil Dorks! Evil Dorks!’. He continued, ‘We must maintain our resolve, we are at a most critical point in the Company’s history. Dupont’s recent trips to Toronto hold tremendous promise! Let’s eat!’ Another tremendous roar from the throng assembled around him. Then, in turn, each clan took its turn kneeling before, and paying homage to the Eternal Flame, then rushed to the Pot Luck.
The essence of my little diatribe is I continue to believe good things will come to those of us that continue to sweat it out. I have added to my position, taking advantage of a prevailing weakness in GOLD, & the equity. You may want to consider adding to your position as well?
$EXS...SOMETHING BIG IS BREWING? I have spoken with Chris Dupont on three separate occasions in the past week. During those brief chats, I kept asking about his two trips to Toronto. Even though I thought he might share his thoughts and progress, the meetings he had must be of a very sensitive nature, as he would not even offer a clue. All he keeps repeating is that shareholders should be very happy once the dust clears. I continue to believe something big is brewing that will have a positive impact on us all. We can speculate all we want about individual properties, or the Company as a whole, but given the absolute gag on information flow, that seems moot at this time. Should any of my sources throw any light, I’ll report what I hear immediately. In the meantime, work at the Company’s Timmins Porcupine West (TPW) GOLD Deposit is winding down. To date, existing Holes #109; 101; 102; 103 & 104 have been deepened to 600-650meters, with the exception of #109, which was deepened to about the 850meter level. Four new Step-Out holes were drilled as well, denoted #124; 125; 126 & 127. #127 is still in process, but the other three were drilled to depths of 600-650meters. Most of the new core has been logged, sawed, and shipped to the lab for analysis. I’ve heard a number of shear zones were intersected, so I’m optomistic about the results. The prevailing theme during previous drilling by the Company was lower grade GOLD near surface, and higher-grade GOLD at depth (beyond 450meters). However, by tightening up this section of the deposit, Dupont is adding ounces to a brightening ‘Open Pit’ scenario, with substantially less cost to production. That will make the TPW much more attractive to whomever he may be having discussions with? Chipping & sampling at East Bay continues as well, as geologists investigate various outcrops in the northwest section of the property, in the immediate vicinity of the old Consolidated Beattie and Donchester GOLD Mines, which produced over 1.0 million oz of GOLD between 1933-1956.
$EXS...MORE MEETINGS IN TORONTO? Back to Toronto? More meetings? I’m hearing our President & CEO Chris Dupont will be back in Toronto this Wednesday through the end of this week for ‘meetings’. No matter how hard I’ve tried, I can’t get any details out of him, as to who he is meeting with, or why? He won’t even offer a hint for me to ponder on. So, the BIG question then, what would inspire a need to travel, that couldn’t be handled by phone, email or Skype? Again, who is headquartered in Toronto? Goldcorp, Kirkland Lake, Osisko, IAMGOLD, & Detour GOLD. Conjecturing a bit, Goldcorp appears to have the greatest motivation to make a deal on the Company’s Timmins Porcupine West GOLD Deposit, for two major reasons. Firstly, they already hold a 3% NSR (Net Smelter Return) on the TPW. Secondly, they are on the front end of a massive $2Billion, 50,000 Ton Per Day GOLD Mill development, and will need proven up feed. Looking at the entire region, the TPW is the closest GOLD Resource to the proposed new mill development. Explor’s current drilling program on the TPW will enhance the ‘Open Pit’ potential of the known GOLD Deposit. I find it interesting that Dupont is doing this at the eastern end of the deposit, minimizing the distance to the new Goldcorp mill? Further, Dupont recently ‘scooped’ some claims, enhancing the PG-101 Property Block. (NR May 24th, 2017, http://explorresources.com/assets/docs/news/PG-101%20Gold%20Property%20Expansion%2024%20May%202017%285%29.pdf). My grapevine has suggested Tony Makuch, & Eric Sprott of Kirkland Lake GOLD were also after those claims, so is Dupont negotiating a deal with them on the PG-101? Looking eastward to the Company’s East Bay Property Block at Duparquet, in Quebec, virtually surrounded by IAMGOLD, is he negotiating a deal on those claims with them? Any one of these scenarios will inspire massive new, & renewed interest in EXS/EXSFF/E1H1, moving the Stock Price forward. I added significantly to my position last week, and am buying more this week.
The drilling at the TPW is progressing nicely. Step-Out Holes #124 & #125 have been completed to a depth of 600meters (1,968ft). Existing Hole #109 has been deepened to 900meters. Existing Holes #101, 102, 103 & 104 are in the process of being deepened to 600meters. Optimistically, the first results could be in the Company’s hands by the end of next week. With visible indications of shear zone intercepts in the core extracted to date, the 43-101 Resource Update Report should be out in the next 2-3 months showing enhanced GOLD ounce estimates. Geologists are also continuing their preliminary work at East Bay, detailing outcrops, and performing ground survey work, in preparation for drilling later this summer.
$EXS...WHY TORONTO? GOLD prices are moderately up and have hit a six-week high in early trading Tuesday, June 6. A weakening USD, emerging geopolitical factors, and an increasingly bullish near-term technical posture are prompting more trader and investor buying interest in the yellow metal. GOLD prices are now within striking distance of the key $1,300.00 mark. That can only bode favourably for EXS/EXSFF/E1H1, given the Timmins Porcupine West GOLD Deposit ‘Definition’ drilling currently underway. The focus there has been to fill in gaps between existing drill holes, and deepen other selected drill holes, in an effort to further expand the GOLD resource estimates of the deposit. The rumour I’m hearing is the crew have completed deepening of one hole, and reached depth on two step-out holes. They are currently deepening a second existing hole. This 3,000meter Drilling Program is intended to further define the eastern section of the known GOLD Deposit, by intersecting the GOLD rich shear zones prevalent in previous work done. Apparently, as many as four shear zones have been found in all the holes drilled, or deepened thus far. That should encourage interest from both senior producers like Goldcorp & Tahoe, and intermediates like Kirkland Lake; Detour & Osisko. Personally, I’m looking forward to a run of positive News Releases with results. This work should also strengthen the ‘Open Pit’ potential of the site, preferred by producers, as costs are substantially lower than underground operations. I heard from a number of investors last week who either had meetings set up with Dupont in Timmins, ON, or were expecting to visit with him at the annual Canadian Mining Exposition in Timmins May 31- June 1. CD often talks about the Exposition & how much he enjoys participating in the event. He’s also been a keynote speaker on a number of occasions. So, the big question, why was he in Toronto instead of Timmins? I spoke with him briefly early Monday morning, and he told me he was pursuing some promising Joint Venture, and financing opportunities. He also said the outright sale of a couple of properties might also be possible. But what was the urgency to go last week, instead of this week? To that question, a got a nervous little laugh as my answer. Who is headquartered in Toronto? Goldcorp, Kirkland Lake, Osisko, IAMGOLD, Detour GOLD. I can’t think of any other reason, besides a family emergency, for him to cancel such important plans in Timmins, unless he had been summoned for discussions with one or more of those GOLD producers? Can you? Obviously, none of the Board can discuss anything of a ‘material’ nature until its announced. I’ve known Dupont long enough that I’m pretty convinced something important is brewing.
$EXS...TURNING POINT? Timmins, Timmins, Timmins. Chris Dupont & his team have completed preparations for the annual Canadian Mining Exposition being held May 31st to June 1st, in Timmins, Ontario, Canada. https://canadianminingexpo.com. This gathering of Mining related companies has become a very important event, and from Explor Resources perspective, second only marginally, to the PDAC, held in Toronto. I know Dupont is really looking forward to meeting with the growing number of Explor investors in that region. Its also been his custom to meet privately with major Explor investors, & prospects, while in the city. He will undoubtedly be visiting the company’s GOLD resource at the Timmins Porcupine West property, to visually inspect the core from the completed extension of Hole #109 to a depth of 900meters (2,953ft). I’m hearing a new drilling ‘step out’ is now underway some 50-60 meters north of existing Hole #124, intended to fill a gap in the resource to qualify for an upgrade to the existing NI 43-101 Resource Report. This Drilling Program is searching for the GOLD rich ‘Shear Zones’, in the immediate vicinity of previously drilled holes to ‘tighten up’ the known GOLD Deposit. I suspect the 3,000meter program will yield some promising additional GOLD gradings, likely to catch the attention of Goldcorp, Tahoe, Kirkland, and Osisko, all operating nearby. From my point of view, I see this as one of the most important developments in the past three years, and certainly may provide the impetus needed to move the stock forward. I’m hopeful some of the ‘new’ core will be on display at the Timmins show, and would emphasize the importance to all regional investors to make an effort to get there. In a private message, I was asked if the GOLD in the new core is ‘visible’. Having seen core samples from previous GOLD rich drill holes from the TPW, tiny flecks of GOLD are actually attached to tiny flecks of ‘pyrite’, better known as ‘fool’s GOLD’. Visibly then, the intensity of the pyrite, dictates the quality of the GOLD value being observed. This occurs the most in the ‘shear zones’ frequently encountered during previous drilling, with GOLD gradings increasing at depth. Let’s recall that the entire known deposit is still ‘OPEN AT DEPTH’. In other words, the true depth of the deposit is still an unknown, yet to be established. Further, the deposit sits on the largest GOLD rich porphyry EVER found in the PDFZ (Porcupine Destor Fault Zone). It’s 7-10 times larger than the one the Hollinger Mine sits on, within the PDFZ. The main Hollinger Mine operated from 1910 until 1968. During that period 65,778,234 tons of GOLD ore was milled, producing 19,327,691 ounces of GOLD. My immediate thought is that we have barely scratched the surface on the south side of this massive porphyry, and done virtually no exploration on the north side. The true potential of the GOLD Deposit is staggering, and, in turn, a primary takeover, or joint venture target, by the likes of Goldcorp, who will need that kind of deposit to support their $2Billion, 50,000 tonne a day GOLD mill development. The immediate future of the Timmins Porcupine GOLD Deposit looks very exciting. That, in turn, makes investment in EXS/EXSFF/E1H1 very exciting.
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