NEWSK
Comments made by Tom Source: Brian Sylvester of The Gold Report (2/17/12)
TGR: Your top holding is a private company, Newsk Emerging Resources Ltd.
TMN: Newsk is a holding company with an investment in CVG Mining, a private gold exploration company in British Columbia. We've been supporting it through equity and debt financings as it develops.
It's an exciting, but technically challenging project because it's 165 feet beneath a river in an underground alluvial deposit. CVG has rehabilitated old ramp workings and run a full scale freeze plant. It drilled 15 freeze holes across the river channel, froze the ground and is currently starting a bulk-sample excavation project to determine the actual grade.
The viability of the project could be established in this quarter. We have high expectations because over 100 drill holes put into the project over the last 50 years indicate that there is high-grade coarse gold trapped in the alluvial gravel at the bottom of that channel. The Cariboo mining district in British Columbia is historically the richest alluvial gold bearing area, per mile, in the world.
TGR: If its project is viable, is the company likely to go public?
TMN: Probably, because it will need to raise development capital. There are groups waiting in the background for the results of the feasibility work. CVG's Wingdam project should be robustly economic at any grade over 0.25 oz/t even with the technical challenge of mining wet unconsolidated material underground.
This is the part of the interview referenced in the previous post.