For the first time in its thirteen-year run, the internationally acclaimed Mines and Money conference has come to the America's. The event, taking place in Toronto, Ontario, is a godsend for mining juniors and the resource investment community.
The exhibition itself gave attendees face-to-face access to senior executives of over 50 global mining companies, financiers and service companies.
Dr. Kal Kotecha was in attendance and was able to sit down with Lorne Warner, Director of MX Gold Corp, to get an inside look at the company and its prospects. The transcription from that impromptu interview is below.
Kal Kotecha – I am sitting here at the Mines and Money conference with Lorne Warner, Director MX Gold Corp (V.MXL). Lorne, why MX Gold and the Willa Max mine?
Lorne – MX Gold is unique in that they’ve been able to acquire the Max mine site south of Revelstoke in BC, A former Moly producer, and they now own 100% of the mill complex and tailings pond. They are permitted for mining Moly, and we are currently in the process of amending the permits and upgrading the mill, with the purpose of developing the Willa Gold, copper, silver deposit, located about 134km away by road. It will be an underground operation, and we we’re hoping to be in production within 12 months.
The workings at the Willa currently exist to the mineralization, but they need to be upgraded to reach production milestones. Service roads and settling ponds as well, but in terms of capital expenditures, they will be far less than any putting a new production facility into operation in BC. We are in final permitting stage, and are permitted to do our 10,000 tonne bulk sample, and we hope in Q1 to take the bulk sample to our mill, signifying that we are ready to go into production following receipt of final permit.
Kal Kotecha – Thank you, Lorne. What about other milestones in the next 12 months?
Lorne – Well, the completion of the bulk sample will be the first major one, aiming for Q1 2017. Then getting infrastructure underground at Willa ready as soon as possible, and we want to be in production by the end of 2017. At our full production rate of 500 tonnes per day, that we will be producing an equivalency of 25,000 to 30,000 ounces per year.
Kal Kotecha – What would you say to an investor who asked, “Why Gold, why now?"
Lorne – All the major gold mining companies have been producing a lot of gold, and not doing much exploration – they are basically NOT replacing what they have been producing. If you look throughout the world, a lot of the easy ounces have already been found and produced. I think we are at the cusp where worldwide production rates will decrease, and with the world financial markets are seeing people lose confidence in currencies, that this is a strong proponent for gold. I think this is the perfect storm, and a great combination for any mining companies, and that MX Gold’s timing is perfect.
Kal Kotecha - It’s exciting to see bulk sampling upcoming, and that MX is close to becoming a producer, soon. Congratulations!
Lorne - Thank you Kal