Miramont article from Jay TaylorNew Coverage
Miramont Resources Corp.
Business: Exploration and development of precious and base metals projects in southern Peru.
Traded CSE: MONT USOTC: MRRMF Chairman: Dr. Q. Hennigh President: Bill Pincus Shares Outstanding: 50,098,297 Insider Ownership: 32% Price 12/28/18: $0.275 Market Capitalization: $13.8 Million Cash: ~$3 Million Progress Rating: A4 Phone: 604-398-4493 Website: www.miramontresources.com
To a great extent, this story is making its way into this letter because of its chairman, Dr. Quinton Hennigh. This is the third company now in this letter for whom Dr. Hennigh is the guiding geological light. His presence along with a generally capable management and board, plus some highly prospective targets in southern Peru and a tiny market cap for this new story are all reasons to believe the risk/reward tradeoff is highly favorable for those who buy these shares at or around current levels. The company has two key holdings in Southern Peru. On the Cerro Hermoso Project is a 1.4-km diameter breccias pipe that management will soon poke holes into, looking for gold, silver, copper, lead, and zinc. The property is located in southeastern Peru along a regional trend of epithermal and CRD deposits. The target is a bulk-tonnage gold, copper, silver stockwork system and limestone replacement. Three large priority targets have been identified: (1) the Central Breccia Zone, which is a gold/silver volcanic breccia pipe bulktonnage target that measures 500 meters by 200 meters; (2) the Stockwork Zone, which is a copper, gold, and silver target measuring 500 meters by 200 meters; and (3) a Carbonate Replacement Zone, which is a silver and copper target. Limestones at depth are replaced with sulfide minerals generated by an intrusive-related hydrothermal system. The property is comprised of two concessions covering 988.7 km and can be accessed year round via a two-lane highway connecting Arequipa and Juliaca.
The Lukkacha Project hosts a large alteration system typical of major porphyry copper deposits. This is a seven concession, 4,400-hectare property in southeastern Peru. This copper porphyry
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target is located along a trend of the largest and most productive copper deposits in Peru. The Cerro Verde produces 450,000 tonnes per year. The Cuajone produces 190,000 tonnes per year. The Toquepala produces 130,000 tonnes per year and the Quellaveco, which is not yet in production, has 950 million tonnes grading 0.63% copper. The project is accessible year round by an all-weather road.
Management states the Lukkacha Porphyry System displays typical porphyry alteration that is well defined over 3 square kilometers and that what they have seen thus far suggests they are near the top of a mineralized zone. Alteration is coincident with anomalous copper and moly rock chip samples.
Drilling to get started in Q1
It has taken longer than hoped to gain drilling permits, but on December 4, management announced they have received the required drilling permit for the Cerro Hermoso Project. Management anticipates drilling will start early in 2019.
With respect to the Lukkacha Project, because it is located within 50 km of the Chilean border, the government of Peru requires special permission from the defense department. In an October 10 report, management reported that a key hurdle was cleared, that being a favorable opinion from the Peruvian defense department. The company anticipates a final approval from the Ministry of Energy and Mines in the near future.
This is a simple two-project story, but both projects are highly prospective, and in my view favorable drill results are highly likely or at least sufficient to move these shares considerably above their current levels. Obviously with early success on the Cerro Hermoso Project, management will likely enlarge their drill programs. In fact, I’m looking forward to receiving some guidance in terms of drilling in the new year.
MANAGEMENT
Bill Pincus, President, CEO, Director – Mr. Pincus has 40 years of experience as a geologist, consultant and executive in the minerals industry. He has held senior positions in FMC Gold (later Meridian), Sunshine Mining and various junior companies. Starting in 2002 he formed Esperanza Resources and served as CEO/President. Esperanza successfully discovered two deposits in Mexico and Peru before its acquisition by Alamos Gold. He has extensive Peruvian experience having lived and worked there for over 25 years.
Dr. Quinton Hennigh, Chairman, Director – Dr. Hennigh is an economic geologist with more than 25 years of exploration experience with major gold mining firms, including Homestake Mining, Newcrest Mining and Newmont Mining. Currently, Dr. Hennigh is President and Chairman of Novo Resources Corp and serves as a director for Irving Resources Inc., TriStar Gold Inc., Precipitate Gold Corp and NV Gold Corp.
Tyson King, V.P., Director has over 10 years’ experience in the management of publicly trading and privately held companies within the commodities and natural resources sector. He has been actively engaged in overseeing the day-today operations of numerous companies and provides consultancy work on exploration activities. Mr. King holds a BA in Economics from the University of Calgary and is a founder of Miramont Resources.
Dale Peniuk, Director, Chartered Professional Accountant (CPA, CA), Corporate Director – Mr. Peniuk has a B.Comm from the University of British Columbia and received his Chartered Accountant designation from the Institute of Chartered Accountants of British Columbia (now the Chartered Professional Accountants of British Columbia). He spent more than 20 years with KPMG LLP and predecessor firms, the last ten years as an Assurance Partner with a focus on mining companies. In addition to his position as a director and Audit Committee Chair of Miramont, Mr. Peniuk serves as a director of Capstone Mining Corp. and as a director and Audit Committee Chair of Lundin Mining Corporation and Argonaut Gold Inc.
Gerry Shields, Director was engaged in the practice of law from 1979 through 2006 in Ottawa, Calgary and Vancouver, specializing in corporate/commercial law, corporate finance and securities, and mergers and acquisitions. Mr. Shields was a founding shareholder of Rainy River Resources Ltd., a TSX listed gold exploration company and was engaged as Vice President, Administration in 2009. Mr. Shields also served as President of Ryland Oil until its sale to Crescent Point Energy in 2010.
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Lesia Burianyk, CFO has over 15 years of industry experience serving as CFO for various TSX-V and CSE listed companies. Ms. Burianyk is a CPA, CA and holds a Bachelor of Business Administration degree from Simon Fraser University. Ms. Burianyk was previously employed as an audit manager at a Canadian accounting firm where she specialized in the mining industry.
Leah Hodges, Corporate Secretary is the principal of Benchmark Governance, providing corporate compliance, administration and governance support to private and public companies in the resource and technology sectors. Mrs. Hodges has over 14 years of experience serving on and for, numerous boards of directors of public listed companies. Mrs. Hodges specializes in corporate, commercial and securities law, corporate governance, and mergers and acquisitions.
THE BOTTOM LINE
This is a new story with few people yet aware of it. However, if I’m right that 2019 is shaping up as a year where investors are going to not only seek a safe haven from a major equity bear market but also seek a sector where they can make money in a down market, I expect capital will be searching gold share investments at just about the time we might anticipate some really exciting drill intersections from Q1 drilling at Cerro Hermoso. A strong management team headed by Quinton Hennigh as chairman, along with adequate financial resources and some highly prospective targets justifies adding Miramont Resources to this letter.