In a recent interview hosted by Mario Drolet of MI3 Communications, Prismo Metals' (Ticker: PRIZ.c or PMOMF for US investors) CEO Alain Lambert and President Steve Robertson provided updates on the company's projects and answered key questions during a detailed Q&A session. Below is a summary of the Q&A, with language paraphrasing the original discussion.
Project Prioritization and Goals
Question: Which project is your main focus this year?
Answer: Steve Robertson emphasized that all three projects—Hot Breccia, Palos Verdes, and Los Pavitos—are important and will receive the necessary exploration work this year.
- Hot Breccia, requiring a deep drilling program, will have the largest budget.
- The Palos Verdes drilling program is also critical, as it has the potential for near-term returns.
- Los Pavitos is progressing with initial exploration work, including mapping, prospecting, and ground geophysics.
Expected Timeline for Results
Question: When can we expect results from your current drilling programs?
Answer: For Palos Verdes, the first phase of drilling, which covers 1,250 meters, is expected to be completed by mid to late September. Results will be analyzed, and further drilling will be planned accordingly. The Hot Breccia project involves deeper drilling, and those results are likely to be available towards the end of the year.
Institutional Coverage and Financing Plans
Question: Is there any institutional coverage for PRIZ, and what are the plans for financing the drill programs?
Answer: Currently, PRIZ does not have formal research coverage from institutions, but there is significant interest from investment bankers. The full drill program budget for Hot Breccia is estimated at $2M USD. The company is actively working on securing this funding, with discussions ongoing and an expectation to finalize soon, possibly adjusting for summer holiday schedules.
Drill Program Specifics
Question: How many meters and how many holes are planned for the Hot Breccia and Palos Verdes projects?
Answer: The Hot Breccia project will involve five drill holes, each approximately 1,000 meters long, totaling 5,000m. For Palos Verdes, a two-phase drill program is planned, with a total of 3,000 meters.
Strategy for Releasing Drill Results
Question: What is PRIZ Metals’ approach to announcing drill results?
Answer: PRIZ plans to group drill results together for release, rather than issuing results for each individual hole, unless a particular hole yields highly material results. This approach allows the company to provide a more comprehensive update to the market.
Potential Impact on Market Capitalization
Question: What kind of results from the drill programs could significantly impact the company’s market cap?
Answer: High-impact results, especially from the deep drilling at Hot Breccia, could substantially increase the company’s market cap. Steve Robertson referenced a similar scenario with Hercules Silver, where a single deep drill hole significantly boosted their market cap from $30 million to $300 million in just a few days.
Cooperation with Vizsla Silver on Palos Verdes
Question: How is the Palos Verdes project being developed in cooperation with Vizsla Silver?
Answer: PRIZMO Metals has a close working relationship with Vizsla Silver, particularly at Palos Verdes.
- The companies have established a technical committee that includes experts from both sides.
- This committee oversees the exploration strategy, ensuring that both companies' interests are aligned.
- The planned drilling at Palos Verdes, which involves setting up on Vizsla’s ground to get a better angle on deeper targets, is a testament to this cooperative approach.
Timing for Potential Deals or Partnerships
Question: Given the potential drill results, what is the timeline for evaluating and possibly capitalizing on them?
Answer: If successful, the first phase of drilling at Palos Verdes is expected to be completed by mid-September, with results analyzed shortly after. Depending on the findings, PRIZMO Metals could engage in discussions with potential partners like Vizsla Silver or others before the end of the year. The potential for strategic deals or partnerships could materialize around Christmas or New Year’s, based on these results.
In conclusion, PRIZ Metals is advancing its projects with a strong focus on exploration and strategic development. The Q&A session provided valuable insights into the company’s plans and expectations for the coming months.
Full interview and Q&A here:
Posted on behalf of Prismo Metals Inc.