The following is a Stockhouse Q&A interview with
Canadian Platinum Corp. (
TSX: V.CPC,
Stock Forum) President and CEO Gary Billingsley.
Why should people think of investing inCanadian Platinum Ltd.today?
Canadian Platinum Corp., as the name suggests, is a rare pure play on platinum, a metal that is produced mostly from mines in South Africa, and is widely used in applications such as autocatalysts, industrial catalysts to manufacture products like nitric acid for fertilizers, to manufacture feedstocks for plastics and other synthetic materials, dentistry equipment and jewellery. The company is headed by a highly experienced management team with a long track record in the mining sector. The focus is an early stage platinum discovery in northern Saskatchewan (about 240 kilometres north of La Ronge).
What sets you apart from the competition?
There just aren’t very many platinum players out there, especially ones that control one of the largest ultramafic complexes in North America. The fact that we have been in the mining business for 40 years also sets us apart.”
Who are the key players on the company’s management team? What do they bring to the table in terms of their ability to help the company achieve its strategic goals?
CEO Gary Billingsley has worked in the mining industry for 45 years. A Saskatoon, Sask.-based geoscientist and professional engineer, he has played a key role in the discovery of gold, diamonds, and rare earths. He has also previously worked either in an executive role or in a consulting capacity for companies such as Hudson Bay Mining & Smelting Co. Ltd., Claude Resources Inc., and Great Western Minerals Group Ltd.
Billingsley is also on the board of
Star Minerals Group Ltd. (
CNS: C.SUV,
Stock Forum), which says it is collaborating with the U.S. Department of Energy on metal extraction from geothermal brines.
Billingsley and the company’s former CEO Todd Montgomery together hold 34% of the company (each have 17% of the shares). Montgomery staked the ground in Saskatchewan that Canadian Platinum is planning to explore. Montgomery is best known for selling a junior potash company Anglo Potash Ltd., to BHP Billiton in July, 2008 for $8.15 per share in cash.
What is your view on the outlook for the commodities that you are focused on?
There is not an abundance of platinum around, nor prospective places to look for it. About 75% of global production comes from mines in South Africa, and in 7 of the last 10 years there has been a shortfall in the supply vs demand. There are only a handful of publicly traded platinum-group metals-focused companies in North America. They include
North American Palladium Ltd. (
TSX: T.PDL,
Stock Forum),
Stillwater Mining Co. (
NYSE: SWC,
Stock Forum),
Noront Resources Ltd. (TSX:V.NOT
), Transition Metals Corp. (TSX:V.XTM), and
Wellgreen Platinum Ltd. (TSX:T.WG).
Why have you chosen to focus on the Peter Lake Project?
The project hosts two large mafic to ultramafic complexes with known low grade platinum group elements, nickel and copper, mineralization. A July, 2012 technical report by Roscoe Postle Assoc. Inc. concluded that the property has the potential to host additional platinum group nickel-copper mineralization. It therefore warrants further investigation, the report said.
Roscoe Postle said previous exploration work, including drilling, airborne surveys and soil geochemistry estimated that the potential tonnage on the Swan Lake prospect could be 2-3 million tonnes, grading between 0.1-0.2 grams per tonne gold, 0.1%-0.2% nickel, 0.4%-0.7% copper, 0.1-0.3 grams platinum and 0.2-0.4 grams palladium. This estimate was from testing just one VTEM geophysical anomaly. Roscoe Postle indicates there are 15 additional VTEM targets just in the Swan lake area similar to the one drill tested. The company views this as extremely encouraging for the potential of the property to host a significant resource.
What were some of the company’s major accomplishments in 2014?
Surviving in the current investment climate, installing new management and reducing the number of projects and putting the focus on two grass roots projects, the Peter Lake and the Brabant Graphite Project, which covers 30,181 hectares and is also located in Saskatchewan.
What are the goals that the company has set for itself in 2015?
This year, we would like to completely review the geophysics that has already been completed at Peter Lake, using consultants with expertise in VTEM and ZTEM, and select additional drill targets. With any luck, perhaps we can drill two or three of the priority targets in 2015. The company is also actively looking at other platinum-related opportunities.
How much money does the company have right now?
The company has around $50,000 in cash.
What are the pros and cons of mining in Saskatchewan?
Saskatchewan is a mining province. But in my view, it has been vastly under-explored for commodities other than potash and uranium. Mining companies in northern Saskatchewan have invested considerable resources in training local residents in mining-related trades. As a result, over 50% of the people working in mines in northern Saskatchewan are local to the region.
The northern Saskatchewan region produces over 30% of the world’s supply of uranium, in addition to producing gold and base metals.
What kind of infrastructure is available in the vicinity of the project?
The western edge of the project is about 20 kilometres from a road. A north south power line runs right through the property. To get there from Saskatoon, we drive and stay in a lodging at Johnson River on the highway and then helicopter into the property where a camp is already set up.
FULL DISCLOSURE: Canadian Platinum is a client of Stockhouse Publishing.