Thursday 18th July 2019

Resource Clips


Posts tagged ‘Detour Gold Corp (DGC)’

Getting Frank

January 23rd, 2019

Frank Holmes discusses tips, disruptors, M&A, what drives HIVE, and more

by Greg Klein

Frank Holmes discusses tips, cryptos, disruptors, peak gold, M&A and more

With over 7,000 attendees, VRIC 2019’s numbers and enthusiasm suggested a buoyant market mood.

 

Definitely one of the busiest people at this year’s Vancouver Resource Investment Conference, Frank Holmes kicked off the event with a keynote speech to a capacity crowd, one of a number of times he took the stage during the two-day event. Even so, the CEO and chief investment officer of U.S. Global Investors found time to sit down with Resource Clips and discuss some wide-ranging issues.

A new feature at this year’s VRIC was the Top Picks Competition, which pitted three companies he chose against three selected by Marin Katusa. The fast pace had the rivals briefly introduce each of his three picks, followed by a company rep giving a concise six-minute presentation. The packed audience rated each company from one to 10. While waiting for results to appear on the big screen, Katusa said, “Man, I’ll be depressed if I lose to Frank.”

Frank Holmes discusses cryptos, disruptors, peak gold, M&A and more

The mainstay of this year’s VRIC, Holmes
tackled issues ranging from peak gold to data mining.

But the chart showed no definite winner, at least not to those who struggle with mental math. Katusa pronounced the results a tie but Holmes confidently told Resource Clips: “I won.”

As for the format, “that model of 20 seconds per slide, capped at 20 slides, 6.4 minutes, that model is working in 900 cities,” he explained, adding that it began in 2003 with the Tokyo-based Klein-Dytham architectural firm. “The PechaKucha model will drive more interest to a company’s booth than anything else.”

But isn’t there a danger that stock tips from influential people can affect share prices more than company performance does?

“I’ve invested in all six of those companies so I’m not getting up there with anyone I haven’t vetted.”

Are they long-term holds? “They have been.”

Katusa stuck with miners but Holmes’ list included two disruptors—a soon-to-be-listed company that creates gold and platinum jewelry as tradable investments, and another company that applies machine learning to mineral exploration as well as combining quantitative and fundamental analyses of mining investment.

Frank Holmes discusses cryptos, disruptors, peak gold, M&A and more

Investors heard first-hand pitches from company reps.

Disruption seems to increasingly command Holmes’ attention, but not at the expense of good old-fashioned gold. He sees peak gold as one application for AI and machine learning.

“There are fundamental supply-demand issues, there has to be a new way to replace it. The world’s GDP per capita for China, India and America is so strong and when you look at China and India, their GDP per capita is highly correlated to gold demand for love.

“When I first got in the business there was a four-year cycle from exploration to discovery to production. Now it’s a minimum eight to 12 years. We have declining reserves and each year the mines are getting deeper and deeper, the grades are getting lower and lower, and there’s also a falloff in exploration success. The timeline for getting projects on stream is getting longer and longer. We do have peak supply.”

With the Newmont-Goldcorp buyout following closely on the Barrick-Rangold merger, M&A has returned to prominence. When asked whether the activity could have a trickle-down effect on junior explorers, the Toronto native brought up a nationalist perspective.

A locally headquartered major means “a junior explorer or mid-cap developer can knock on their door, pitch them a story and maybe they’re your partner. But now you’d have to go to Denver, and the process of what they look at is very different from what Canadians look at. So I think there’s a vacuum being created and it’s not helping the Canadian mining industry.”

Additionally, “I think Canada will be hurt because the geological brain trust that was with Barrick in Toronto will go to Europe or South Africa. With Newmont, the brain trust will go to Denver.”

Frank Holmes discusses cryptos, disruptors, peak gold, M&A and more

Attendees gleaned intel from speakers, exhibitors and each other.

He suggested gold might attract more M&A than other metals because it’s “more bullish.” Elsewhere in metals, he expects to see further shareholder activism as seen by Waterton Global Resource Management with Hudbay Minerals and Paulson & Co with Detour Gold. “I’m surprised there isn’t more in the mid-cap space,” he noted.

He considers the activism constructive—“anything that keeps people accountable.” As chairperson of cryptocurrency miner HIVE Blockchain Technologies, however, he has to account for a share price that’s plunged about 78% over the last year.

“All of us are down, but it’s only because of the Bitcoin and Ethereum prices,” he said. “With gold stocks, most of them rise or fall as gold rises or falls that day. They correlate. What HIVE has done is become a proxy [for buying cryptos]. So HIVE has become incredibly liquid and moves every day with the price action of Bitcoin and Ethereum. Bitcoin and Ethereum have a volatility such that if gold’s daily volatility is 1%, their daily volatility is 6% to 8%. So that’s what drives HIVE. If Bitcoin goes this quarter to $10,000, we’ll go to a dollar. And if Bitcoin falls, we’ll go down with it. We’re at the mercy of where the cryptocurrencies are going. But the positive part for an investor or trader is that you can call up during market hours and use that as a proxy.”

One indication of continuing crypto enthusiasm, he added, was a very strong turnout at the previous week’s North American Bitcoin Conference in Miami, despite a hefty admission fee.

As for VRIC, he likes the event for “energy—it’s the vibe, what people are talking about. Are they skewing to optimism, or to doubt and fear and pessimism? I get the energy and vibrations here, and whether there’s an appetite for risk. This is all venture capital. Most of these companies are speculation. As I said at the opening, I’m so happy people came here and didn’t go to the casino or buy a lottery ticket to speculate.”

Watch for videos of VRIC presentations to be posted in the coming weeks by Cambridge House International.

Frank Holmes discusses cryptos, disruptors, peak gold, M&A and more

Moderated by Daniela Cambone, the Ultimate Gold Panel
included Holmes, Peter Hug, Roy Sebag and Peter Schiff.

 

Frank Holmes discusses tips, disruptors, M&A, what drives HIVE, and more

Although soliciting was strictly prohibited,
a hint of hustle might have been evident.

In the land of giants

June 24th, 2016

Aurvista Gold sees super pit potential for its Douay gold project in Abitibi

by Greg Klein

A new Abitibi gold mine, maybe the region’s last—could that be Douay’s destiny? Jean Lafleur sees such potential in the project that attracted him to Aurvista Gold TSXV:AVA, where he took on the role of president/CEO. The geologist’s international career includes considerable experience in Quebec’s most auriferous region, including Malartic, where he was instrumental in developing the project’s campaign of bulk gold exploration. He sees similarities in Douay. But this one also stands apart for its distinctions.

Aurvista Gold sees super pit potential for its Douay gold project in Abitibi

This year’s campaign calls for more geophysics
followed by another 4,000 metres.

A bulk deposit with higher-grade “jewelry boxes” on the Casa Berardi fault, Douay’s “unique because it’s never been mined, it’s a disseminated-type deposit, there are no quartz veins so it goes against the grain of these old Archean-type deposits, it’s Crown land, but what makes it really unique is it’s the last one left in the Abitibi,” Lafleur says.

“There might be others farther north, but when you talk about strictly Abitibi, this is the last one.”

Aurvista plans to support that theory with a summer/fall campaign of geophysics and drilling backed by last month’s $1.1-million financing. The 14,500-hectare property features eight zones along a five-kilometre trend. Using a cutoff of 0.3 grams per tonne, a 2012 resource estimate totalled:

  • indicated: 2.69 million tonnes averaging 2.76 g/t for 238,435 gold ounces

  • inferred: 114.65 million tonnes averaging 0.75 g/t for 2.75 million ounces

The resource was limited to a vertical depth of about 400 metres.

With the same cutoff, a west-to-east, zone-by-zone breakdown shows the jewelry boxes amid bulk mining potential:

Douay West zone

  • indicated: 2.56 million tonnes averaging 2.77 g/t for 227,980 ounces

  • inferred: 1.41 million tonnes averaging 1.65 g/t for 74,915 ounces

North West zone

  • inferred: 1.05 million tonnes averaging 2.59 g/t for 87,605 ounces

Porphyry zone

  • inferred: 107.21 million tonnes averaging 0.68 g/t for 2.36 million ounces

20 zone

  • inferred: 340,000 tonnes averaging 0.66 g/t for 7,231 ounces

Central zone

  • inferred: 780,000 tonnes averaging 0.99 g/t for 24,935 ounces

10 zone

  • inferred: 959,000 tonnes averaging 1.32 g/t for 40,705 ounces

531 zone

  • inferred: 1.55 million tonnes averaging 1.54 g/t for 76,620 ounces

Main zone

  • indicated: 130,000 tonnes averaging 2.47 g/t for 10,450 ounces

  • inferred: 1.35 million tonnes averaging 1.97 g/t for 85,480 ounces

Pushing the cutoff up to three g/t, seven of the eight zones still show ounces, with these two standouts—Douay West revealing 153,890 ounces indicated and 28,420 ounces inferred, and the Adams section of the Porphyry zone bearing 274,200 ounces inferred.

A 2014 PEA examined Douay West alone as a combination open pit and underground operation that would cost $56.8 million to build, producing 156,000 ounces over a 3.7-year life. The study used a 5% discount rate to calculate a post-tax NPV of $16.6 million and a post-tax IRR of 40%. But the proximity of other zones, especially Porphyry, encouraged Aurvista to consider other approaches.

To that end the company has an imminent two-stage 2016 program scheduled for a three-by-10-kilometre expanse. Primarily focus will be some eight kilometres of porphyry targets. Also under scrutiny will be a six-by-one-kilometre cluster of EM anomalies immediately south that have affinities to VMS mineralization associated with gold, along with potential copper and other base metal targets, the company states.

Aurvista Gold sees super pit potential for its Douay gold project in Abitibi

Past operators left behind camp infrastructure.

Stage 1 calls for additional mapping, re-logging previous core and flying magnetic, electromagnetic and radiometrics. That would lead to Stage 2’s 4,000-metre Q4 drill program. The company also hopes to find new trends at about 300 to 500 metres in depth, below the currently known mineralization.

With Abitibi infrastructure as well as gold, Douay has road access to a highway five kilometres away leading to Val-d’Or, 165 kilometres south, and an electrical line connecting the property with the grid.

A solid share structure supports the company. After vending Douay to Aurvista in 2011, Société d’exploration minière Vior TSXV:VIO now holds 24%. The 1,193-hectare North West zone comes under a JV with 25% partner SOQUEM, the mineral exploration division of the provincial government’s Investissement Québec. Together, the province and company insiders account for 14%. Among them is chairperson Gerry McCarvill, who helped create Repadre Capital, now IAMGOLD TSX:IMG, and Desert Sun Mining, later picked up by Yamana Gold TSX:YRI. McCarvill also helped develop Consolidated Thompson Iron Ore from its $2-million beginning to the $4.9-billion takeover by Cliffs Natural Resources NYSE:CLF.

Lafleur expects this year’s work to further support the “super pit” potential that he believes could position Douay as the next mine to be surrounded by the giants of Abitibi. A resource update could arrive this year but more likely in 2017, he says. Lafleur anticipates a three- to five-year plan for the project. “We want to follow the same story that Detour and Osisko did—just keep drilling and prove up as many ounces as we can.”

Detour reports Ontario Gold Assays up to 5.45 g/t over 46m

March 21st, 2012

Resource Clips - essential news on junior gold mining and junior silver miningDetour Gold Corp TSX:DGC announced results from its Detour Lake Project in northern Ontario. Assays include

5.45 g/t gold over 46 metres
(including 113.07 g/t over 0.7 metres)
4.15 g/t over 54 metres
(including 130.36 g/t over 0.5 metres)
2.19 g/t over 81.2 metres
(including 20.5 g/t over 0.7 metres)
2.01 g/t over 85 metres
(including 25.97 g/t over 0.5 metres)
6.84 g/t over 19 metres
(including 24.3 g/t over 1 metre)

The project has a January 2012 resource estimate of 678.8 million tonnes grading 1.07 g/t for 23.26 million gold ounces measured and indicated and 208.5 million tonnes grading 0.86 g/t for 5.79 million ounces inferred using a 0.5 g/t cutoff.

View Company Profile

Contact:
Gerald Panneton
President/CEO
416.304.0800

Laurie Gaborit
IR Director
416.304.0581

by Greg Klein

Detour reports updated Ontario Gold Resource

January 25th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningDetour Gold Corporation TSX:DGC announced updated mineral reserves and resources at its Detour Lake gold project in northeastern Ontario. The project now has 15.57 million ounces gold in the proven and probable reserves categories, and resources of 23.26 million ounces measured and indicated, 5.79 million ounces inferred.

President/CEO Gerald Panneton remarked, “The mineral reserves presented today are still based on a cut-off grade of 0.5 g/t and a US$850/oz gold price. We are currently working on the details of an updated life-of-mine production plan based on the same engineered pit and the new reserve estimate. The mineral reserve increase of 5% is the result of our successful 2011 infill drilling program, which targeted the western portion of the existing pit on a 40-by-40-metres drill spacing resulting in the conversion of inferred resources into reserves. With 15.6 million ounces in reserves, the Detour Lake deposit is projected to be Canada’s largest gold mining operation. The throughput rationalization study conducted in 2011 indicated that based on a US$1,200/oz gold price the best scenario of an expansion would be an increase in throughput from 55,000 to 75,000 tonnes per day. We are proceeding with a prefeasibility study and related studies on the Block A near-surface resource to establish the possibility of further increasing the gold-production profile of the company.”

View Company Profile

Contact:
Gerald Panneton
President/CEO
416.304.0800

or Laurie Gaborit
Director, Investor Relations
416.304.0581

by Ted Niles

Detour Gold to buy Trade Winds Ventures for $84M

September 26th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningDetour Gold Corp TSX:DGC and Trade Winds Ventures Inc TSXV:TWD announced Detour’s acquisition of Trade Winds for $84 million. Trade Winds shareholders will receive 0.0142 of a Detour share and $0.0001 in cash for each Trade Winds share held. Based on Detour’s Sept. 23, 2011 share price, this represents total consideration of $0.455 per Trade Winds share and a premium of 57% to Trade Winds’ closing price on Sept. 23. Based on the respective 20-day volume-weighted average prices of Detour Gold and Trade Winds as at Sept. 23, the consideration represents a premium of 61%.

Trade Winds’ principal assets are its 50/50 joint venture with Detour in the Block A Property, adjacent to Detour’s Detour Lake Project, and the wholly-owned Gowest Property, also located in the Detour Lake area.

Read more about Trade Winds Ventures and Detour Gold here.

View Company Profile

Contact:
Detour Gold Corp
Gerald Panneton
President/CEO
416.304.0800
or Laurie Gaborit
IR Director
416.304.0581

Trade Winds Ventures Inc
Ian D. Lambert
President/CEO
416.840.9483
or Terry McGee
Investor Relations
866.698.9187 x 228

by Greg Klein

Detour reports Ontario Gold Assays up to 1.42 g/t over 127m

April 21st, 2011

Detour Gold Corporation TSX:DGC announced results from the western extension of its Detour Lake Deposit in Ontario. Assays include 9.1 g/t gold over 7.2 metres, 2.09 g/t over 56.5 metres, 2.51 g/t over 39 metres, 1.87 g/t over 33.5 metres, 3.82 g/t over 22 metres, 1.42 g/t over 127 metres, 1.82 g/t over 42.6 metres, 6.5 g/t over 9 metres and 10.97 g/t over 7 metres.

Detour Lake has a mineral resource estimate at a 0.5 g/t cut-off of 17.67 million ounces gold measured and indicated, 3.43 million ounces inferred.

View Company Profile

Contact:
Gerald Panneton
President/CEO
416.304.0800

or Laurie Gaborit
Director, Investor Relations
416.304.0581

by Ted Niles

Trade Winds, Detour report Ontario Gold Assays including 1.89 g/t over 28m

March 31st, 2011

Trade Winds Ventures Inc TSXV:TWD in joint venture with Detour Gold Corporation TSX:DGC announced results from the Block A Joint Venture Project in northeastern Ontario. Assays include 1.89 g/t gold over 28 metres, 1.14 g/t over 21 metres, 2.92 g/t over 7 metres, 1.03 g/t over 9.6 metres, 3.47 g/t over 15.4 metres, 2.68 g/t over 8.3 metres, 1.22 g/t over 6 metres, 2.34 g/t over 10.4 metres, 1.5 g/t over 6.5 metres, 1.02 g/t over 5 metres and 2.44 g/t over 11 metres.

Each company has a 50% interest in the property and Trade Winds is the project operator. Block A has a mineral resource estimate of 1.92 million ounces gold indicated at a 0.4 g/t cut-off, and 762,000 ounces gold inferred.

View Company Profile

Contact:
Trade Winds Ventures Inc
Ian D. Lambert
President/CEO
416.840.9843

or Terry McGee
Investor Relations
866.698.9187 x 228

by Ted Niles

Detour reports Ontario Gold Assays of 3.13 g/t over 58m

March 15th, 2011

Detour Gold Corporation TSX:DGC announced results from its Detour Lake Gold Project in Ontario. Assays include 15.05 g/t gold over 12.8 metres, 3.13 g/t over 58 metres, 4.91 g/t over 31 metres, 6.6 g/t over 24 metres, 2.6 g/t over 38.5 metres, 1.61 g/t over 43 metres, 3.31 g/t over 24 metres, 1.38 g/t over 90 metres, 2.3 g/t over 29.8 metres, 6.63 g/t over 22.1 metres, 4.38 g/t over 17 metres, 9.07 g/t over 22.7 metres, 5.33 g/t over 10 metres and 2.06 g/t over 24.8 metres.

The Detour Lake Project has a 43-101 mineral resource estimate of 17.67 million ounces gold measured and indicated at a 0.5 g/t cut-off, 3.43 million ounces inferred.

View Company Profile

Contact:
Gerald Panneton
President/CEO
416.304.0800

or Laurie Gaborit
Director, Investor Relations
416.304.0581

by Ted Niles