Temex kicks off 2011....
Temex kicks off 2011 with stronger portfolio following milestone deal with Goldcorp
Booth # 2412A • www.temexcorp.com • 416.862.2246
www.temexcorp.com
Ian Campbell
President & CEO
After adding the Upper Hallnor Mine to its portfolio in 2010 via a joint-venture deal with Goldcorp, Temex Resources Corp (TSXV:TME) consolidated its position together with the Lower Hallnor on this historic property in Canada’s largest gold camp, Timmins. This property along with the adjacent Broulan Reef Property is collectively known as the Whitney Gold Project, which, together with the company’s Juby Gold Project in Gowganda, northeastern Ontario, are the cornerstones that promise to make 2011 “a very exciting time” for Temex shareholders. President & CEO Ian Campbell discusses the company’s prospects.
Resource Intelligence: On January 4, 2011 Temex announced the latest results of its drill program on the Whitney project. Could you tell us more?
Ian Campbell: The results represent roughly 20% of the ongoing drill program that is testing the Upper Hallnor Mine area to determine how many ounces of gold are potentially there. The results to date are very positive with all the holes intersecting gold.
RI: The Hallnor Mine is a “multimillion-ounce past-producer.” Are there so far any findings that indicate to you that it is going to live up to its impressive history?
IC: The drilling that we’ve done in combination with the previous operator gives every indication that there is a lot more gold at Hallnor.
RI: Can you give investors a sense of the economic value of the project?
IC: Hallnor Mine was the highest grade multi-million-ounce gold deposit in the Timmins camp. In the past, it produced almost $2.5 billion worth of gold, while our project as a whole produced well over $3 billion. So if we reach half that ounce potential, which is currently our lower target range, then the project’s value is coming up towards $2 billion.
RI: Do you think it is going to be a low-cost project?
IC: There is excellent access to workforce, existing infrastructure both above ground and below surface. Our partner Goldcorp operates the Dome mill 5 kilometres from the site. We are convinced the project will be a low-cost operation.
RI: How’s the project’s financing?
IC: The program that we just completed was $1.5 million and we’re budgeting to spend another $2 million in 2011 just on surface diamond drilling. Following our financing last fall, we have sufficient funds for this project and the Juby Gold Project.
RI: How’s Goldcorp in terms of expenditures?
IC: It is a 60/40 joint venture. During the initial $8.33 million in expenditures, we agreed that our $5 million would be spent on exploration and they’d spend their $3.33 million on reclamation work. Once that target is achieved Goldcorp would have to contribute 40% of exploration and development costs.
RI: How close are you to making a resource estimate for this property?
IC: We aim to have some resource estimates done by this time next year on a variety of zones.
RI: You’ve recently started diamond drilling in the Juby Gold Project. Could you tell us more about this project?
IC: The project is in an area called Shining Tree, 100 km south of Timmins and 100 km west of Kirkland Lake. The area wasn’t explored for 26 years due to a land caution so it hasn’t had sophisticated levels of exploration. We completed a grassroots exploration program and developed a high number of quality exploration targets and are set to drill these. The targets surround our Juby Main Zone gold deposit where we have outlined over 1.2 million ounces of gold and are drilling to expand it.
RI: You have NI 43-101 compliant 614,000 ounces of indicated gold resources and 602,000 ounces of inferred resources in the Juby Main Zone. How important is it for you to upgrade those?
IC: The deposit is very consistent in grade throughout so we feel the priority right now is to increase the total gold resource.
RI: Give us three key selling points of this project.
IC: Current valuations given for gold projects are around $100-$150 an ounce for in situ gold and, using the lower end, Temex would trade at 3 to 4 times its current share price just based on the 1.2 million ounces of gold defined at Juby so far. The project has excellent exploration potential for new discoveries in the immediate area of the deposit and access is excellent.
RI: What are your priorities for this year?
IC: Our priorities are to advance the Whitney and Juby Gold projects and concurrently increase market awareness of Temex.
RI: What else should investors know?
IC: Temex has two very exciting blue sky exploration projects that investors really should know about. One is up in the Ring of Fire and it’s called the Springer Project and is adjacent to and along trend of where Northern Superior and Rainy River recently announced a high-grade gold discovery. We also have the Latchford Gold Project in northeastern Ontario where we discovered a boulder carrying over 200 ounces per ton gold and have very recently brought the project to the drill stage with excellent targets defined.
Investor Highlights:
- Based on current valuations of $100-$150 an ounce on in situ gold, Temex is significantly undervalued just based on gold resources at Juby, which hosts 1.2 million ounces in its wholly owned Juby Main Zone
- The company is well-financed to carry out all its programs. Continuous diamond drilling throughout the entire year
- Excellent pipeline of blue sky projects
- Access to existing infrastructure, roads and workforce in Canada’s largest gold camp represents a serious reduction in costs to the Whitney Gold Project for any future mining