Alaska Energy Metals Corp V.AEMC

Message from the President

[Buffy15]

Mel's Metals - Monday Aug 12, 2019

Next, the Sprott Resource Investor Symposium in Vancouver, held the first week of August was as always an event of superior quality. But, despite the significant gold price rise just before and during the time of the conference, the mood was surprisingly subdued. More investor enthusiasm and anticipation of better things to come was expected, but it did not seem to be there.

 

Chris Van Treeck and I have been in Australia for the past week, first at a conference (the aptly named “Diggers and Dealers conference) in the great gold mining town of Kalgoorlie, and now in Perth (headquarters for many major and mid-tier mining companies). It was quite interesting to see the names of Major mining companies atop all the tallest skyscrapers!

A substantial amount of money from Australia has been flowing to Alaska over the past few years. We came here to find out why, and to see if we could not access some of this capital for our projects. The contrast between the mood here in Perth versus the mood in Vancouver is quite remarkable! A Bull Market for gold is in full swing and picking up steam in this country! The excitement, enthusiasm and optimism is palpable! Mid-tier Australian gold mining companies produce an ounce of gold for, on average, about AUD$1,000 but sell it for AUD$2,400 and the margins have been like this for a couple of years. These companies are making great money at this gold price, and now are looking aggressively for places to deploy the money they’ve earned to grow their companies further. Alaska is definitely on the radar of Australian companies as a destination for their risk capital. The handful of juniors already exploring Alaska, including or friends at PolarX, have now been validated by the entrance of South32 on two projects and Northern Star through its purchase of the Pogo Gold Mine. The Star of the Show at Diggers & Dealers was Northern Star Resources. They were even named “Dealer of the Year” for their purchase of the Pogo Gold Mine. Northern Star has been a great advocate of Alaska generally. We have made numerous presentations to mining companies, brokers and financiers over the past ten days, and they are all quite amazed and excited to learn that Millrock owns all the mineral rights for many kilometers in all directions around the Pogo Gold Mine property. In most jurisdictions it is very difficult to acquire by staking such a large tract – almost all of the camp. It is nearly impossible to build such a large land position near a mine of camp in Australia since the industry is so competitive.  We come away from Australia knowing that we have a highly valuable asset in our Goodpaster gold project. The analogue drawn in a  magazine comparing Goodpaster as to exploring in Australia’s Western Goldfields in the early years after one mine was discovered in the 1930s, We feel confident that we will soon have Australian offers to collaborate and fund exploration on our Goopaster and other projects in Alaska. It is quite exciting and gratifying to know that the cycle has changed for the better and that the property positions we have built in the downcycle will now pay off.