On which exchanges do your shares trade at the moment?
Dawson Gold Corporation (“Dawson”) is listed on the TSX Venture Exchange under the symbol DYU and has been trading since November 2010.
Can you describe your company and say what it does.
Dawson is an early stage resource exploration and development company. The company’s main focus is the advanced 6,474 hectare Toro Project located in the Dawson Range of the White Gold District Yukon Territory.
What distinguishes your company from others in your space?
Dawson stands out above other exploration companies in the White Gold District in several capacities. Most importantly, the Toro Project represents a large (6,474 hectare) land package with extensive historic work completed to date. Previous workers (including Noranda and Phelps Dodge) were focused on the copper porphyry potential of the property and conducted multiple exploration campaigns; Dawson has access to the results of these programs, which gives the company an historic database worth several million dollars to assist the exploration of the property. Dawson management believes that significant gold potential exists on the Toro Property, however has not been adequately explored for in the past. Lastly, Dawson has the right to earn 100% in the Toro Property via an option agreement with Northern Free Gold (TSX: V. NFR). Through this relationship with NFR (NFR is a major shareholder of the company) Dawson can leverage upon NFR’s years of exploration knowledge in the district and the Yukon in general. The Toro Project is distinct from other district exploration projects in that direct vehicular access is possible via the Casino Trail as is fixed wing to the open landing strip on the Toro Mineral Claims. In 2010, Dawson established a 15-man camp and exploration facilities on the property as well, so a major cost is now out of the way and exploration costs annually will be lower with this camp and landing strip on tenure. Lastly, the Toro Project has an active Class 3 exploration permit from the Yukon government, allowing Dawson to conduct systematic (and increasing) exploration activities in the coming years.
Can you explain why you have chosen to work in the Yukon?
Dawson has targeted the Yukon because it is Canadian Jurisdiction (deemed to have very low domicile or political risk for both the finding and exploiting of resources) and working in the Yukon provides a cost advantage on the equity the company has raised via or shareholders (owners) versus working in other parts of the world. The White Gold District of the Yukon is now being recognized as the first area record play since Voisey Bay a few decades ago. Dawson is excited to be active in this developing region, and to be working on the impressive Toro Property.
What are your flagship projects?
Dawson’s flagship project is the TORO Property, which from historic and 2010 soil sampling and diamond drilling programs hosts indicators of what could be a significant gold property.
What are the pros and cons of working in Yukon?
There are a number of pros to working the Yukon. First, management and the Board of Directors base their operations in British Columbia and the Yukon, so the Toro Project is close to home. The Yukon, and the White Gold District in specific, are both becoming known as developing area plays - given this excitement, there is and will continue to be significant financial support for exploration initiatives in the Yukon. What would be perceived as the one major con with the Yukon is access to quality drilling equipment and personnel, however Dawson has committed to a 2,500m, 2011 drilling contract with Kulane drilling. This is significant as drilling access is only for very short period of the year; and another pro is the favorable mind-set of the Yukon’s territorial government towards our industry. Other possible cons with respect to the Yukon would be the short exploration season and increasing focus on the area and costs to operate in the area, as well as the possible commodity risk globally for resources. However, we see this mitigated against all the positives.
What is the outlook for the commodities that you are focused on?
Management believes, given all the uncertainty on a global basis, the market for all resource commodities are particularly good. Dawson’s specific focus is on gold, which is the flagship of the metallic commodities.
What are the main challenges that you face in operating your business?
The main challenges facing Dawson are similar to all resource businesses, and that is sequentially developing your resource and asset year over year, and continuing to be in a position to secure financing during this process. Dawson is enormously optimistic for the coming 2011 drill season and what it will mean for the company’s shareholders.
How are you dealing with these challenges?
As an early stage public company Dawson has been able to secure capital and a very strong management team and board, with local ties to the Yukon region. As the Toro project develops in the coming seasons the company is an excellent position to execute on the development plan and any capital raises required given its bench strength.
What is the target market?
Global consumers of gold, which appears that more and more gold is being bought by governments, and India and China are the main consumers of the resource in the foreseeable future.
Who are your competitors?
Dawson effectively does not have any direct competition; in fact, our competitor’s success in the White Gold District further enhances our valuation. Competitors are really are neighbours.
Who owns Dawson Gold (major shareholders)?
Dawson Gold’s major shareholders are actually a local area success NFR, as mentioned earlier one of the largest area drillers – owned by Jim Coyne. We are also owned by a number of other successful resource investors as well as a number of local brokerage firms via their shareholder bases.
How many employees do you have?
Dawson has four main employees and utilizes a host of talented Yukon contractors during active exploration programs.
What would you say is the biggest risk for investors in your stock?
The biggest risk to Dawson investors is the potential to not continually (seasonally) increase the value of the exploration projects within the company.
How much cash do you have on hand?
As of February 1, 2011, the company has approximately $800,000 in the treasury.
What is your monthly cash burn rate?
Dawson’s Monthly burn rate is approximately $30,000.
Is there anything that sets you apart in terms of the type of technologies that you are using?
For the most part, Dawson utilizes industry standard exploration techniques and tools, what sets the company apart is its pool of exploration talent and management team.
Describe some of your major achievements in the past 12 months?
In the Calendar year 2010 Dawson was able to securing the Toro Project from NFR, conduct a $1.2 million geochemical/geophysical/diamond drilling exploration program identifying a number of high priority gold, anomalies, take the company public through the strength of that program the Toro Property, and secure financing and management resources to further define The Toro Property.
What do your shareholders have to look forward to in the coming year?
Dawson Gold shareholders have a busy exploration season to look forward as the Toro Property moves into its second year (and first full season) of definition and development our asset.
Who are the key players on your management team?
Michael Collins, P.Geo. (President), Paul D. Gray, P.Geo. (CEO) and Jason McLaughlin (V.P. Exploration) are the key members of Dawson’s technical management team. Corporately, John Anderson, Jim Coyne and Bijay Singh round out the team. We have a recognized Yukon mining figure in Bill Harris as our advisor.
What kind of experience do they bring to the table?
The management team is strong on mineral exploration knowledge with over 45 years combined on-the-ground mineral exploration geology background. Bill Harris is the past President of the Yukon Prospectors Association and a founder, Chairman and COO of Northern Freegold Resources Ltd. (V.NFR). John Anderson and Bijay Singh have been active in the public markets for many years with a proven track record of listing, funding and managing mineral exploration companies. Jim Coyne, founder and president of Kulane Diamond drilling adds a unique depth to the team
What are the prospects for expansion at Dawson Gold?
Dawson intends to identify and acquire additional quality precious metal exploration project(s) in jurisdictions where mineral resources can be identified, defined and produced.
Disclosure: Dawson Gold (V.DYU) is a Stockhouse client