Borealis Mining On A Path To Become A Gold Producer In Nevada On A Project Wide Open For Exploration

Borealis Mining On A Path To Become A Gold Producer In Nevada On A Project Wide Open For Exploration

hello everybody and thank you for joining me today it’s allenberry labuan with the rocks and stocks news show um we’ve got a uh a new story that’s uh not even publicly listed yet which is quite unique for uh the companies that I usually host on the show um but the company has done some great things as a private company and I think that’s put him in a great position for the future um one of the things that really impressed me when I first started learning about Borealis mining was that there is a a very large alteration Zone on the project uh 20 kilometers which makes it one of the square kilometers which Mak square miles square miles uh which makes it one of the the largest alteration zones in all of Nevada and then I also looked at a a report a tech scientific paper on that project and there is um geological similarities to Yan coocha Yana coacha is one is South America’s best gold mine uh and so um I’m I’m pretty excited about Borealis mining Kelly Malcolm thanks a lot for joining us super good pleasure to be here Alan I’m very very excited and and as you know we’ve talked about this for for months probably at ad nausea at this point but um really really glad to be doing this on a public forum and I think this is our my first as CEO of boreal’s First public um recorded presentation so super happy that it’s you that’s giving it to us oh well thank you very much and U you know Kelly that’s saying in the mining business that big systems leave uh big Footprints uh you know really stands out to me on on this project that you have Nevada um but before we get into some of the technical stuff well a private company you’ve in a market that’s been challenging to raise money you guys have raised $115 million and uh and you’ve uh at 50 cents a share and you put together a a tremendous board of directors and you have a great new big investor in your company uh so let’s on some of those things and then we’ll get into the the the big footprint uh Le system leaving a big big footprint well then so yeah we we built this up over the last uh little while um I bought a gold mine which sounds bizarre and and was a it’s a dream of every geologist to be able to do something like that so so I bought a gold mine uh that’s under care and maintenance but fully permitted and we’ll take a look at that in a minute with verify uh fully permited project we paid $100,000 cash um and and assumed o operatorship of that project which was obviously a pretty scary Endeavor for us uh because there’s liabilities and there’s costs and there’s all these other things that that come along with that but the best thing that comes along with that is I can actually go mine gold tomorrow and and pour gold and we’ve poured gold since acquisition so that’s kind of the backstory and then the so the other part of the acquisition so it was $100,000 cash and then on my listing date which which fingers crossed should be happening quite soon um I’m to issue 19.9% of my of my Securities to the vendors who who were Waterton uh Global asset managers they’re a it’s a private Equity Fund that that has owned a ton of different projects in Nevada uh they’re liquidating their fund so I was looking for an exit position for them um you had had actually introduced me to Rob mckuin so thank you again and again and again and again and again for that um and and Rob we had our meeting with him and and he said I want I thought we were we we were hoping he was going to write a million bucks or something into the deal and he came back the next morning and said I want to buy 20% of the company and I want I want to take their whole position and here’s I I can’t say the exact number but it’s it’s better than five or6 million dollars that he wrote um to acquire that position so uh really really really big stamp of approval um and then in terms of must that was very exciting to replace Waterton uh with such a legend in the mining business Rob mchan uh as your uh as your lead shareholder now I am floored I I it it was spectac one of the more exciting things that’s in my life it’s one of the most exciting things that I think we’ve we’ve set up for for success we’ve set ourselves up for success in a big way uh swapping those two and getting Rob’s insights and it’s like the guys built billion dollar companies on a on a it’s kind of feels like a a biannual basis he he does that you know it’s real one of the things that he’s really Adept at is uh as an investor outside of building companies but as an investor uh in the sector so for him to recognize uh the quality of the project and want to become a big shareholder I think is uh he he’s not a sort of shoot with a a shotgun kind of guy he’s more of a sniper with the rifle so uh it’s it’s good to have his endorsement I I’m I totally agree the other the other really great I’ll talk about the board in a second but the other really great shareholder we got is Eric Sprout um another legendary billionaire in the in the mining space so he’s in there for about seven or eight% robs there for 20 um number of great institutions have have put big money into the company uh so we’ve got some really really great people as shareholders um but our team is one of the reasons that we were able to get all these different people into the the company aside from the the tremendous geology and and and exploration potential that we’ll talk about and also our grander strategy which we can also maybe we won’t even get into all that stuff today all that sounds like we’re we’re gearing up for one of our 4our discussions here we see where go see where it goes so um yeah we got the project uh and then we got really the probably the best board I’ve ever seen for a company under $50 million valuation I I don’t think that there’s anyone else out there that has anyone of the same ilk so our chairman of the company is Tony makuch of Kirkland Lake gold Fame he’s he also sold lak Shore resources to Tahoe um he’s a he’s a mining Legend as an operator and and his Built Well Kirk and Lake gold was sold for $14 billion I think you got in there at it was like a $600 million company or something when he took it over so truly a a mining Legend in in Tony um and and many people don’t know it but he also has deep Nevada experience as well in one of his earlier days with dinch uh which was a company not as as big of a of a a win as the other ones but he operated mines throughout Nevada so he’s got deep mining experience there and then the other really legendary guy that we’ve got on the board is Bob bucking uh Bob is the founder of Ken Ross Gold so Bob built that uh company from the early 90s through to I believe he retired in around 2004 uh when he retired it was the sixth biggest gold company globally uh so another not not only Mind Builder and and and um value Creator but billion dooll company Creator as well um we’ve got Greg Gibson on the board Greg uh youve you probably seen if You’ been following imold they’ve been building the kot lake project that was Greg Gibson’s company he sold that to imold in around 2011 for 600 million bucks and that was from something to nothing that was a $5 million company that he sold for 600 million then he went to work with Eric for a number of years he was the president of Jarrett Canyon mining uh Greg which was sold privately to uh first Majestic silver recently uh again deep Nevada experience deep value creation experience we’ve got Christina McCarthy on the board um Christina you know well and your your subscribers would know well had had a really big win and a a fast win in uh in payor minerals she built that listed it and it was sold within nine months of trading which is wild it doesn’t happen often no and and the cool thing if you look at her chart I’m sure you’ve shown people that there’s not a single person that’s ever invested in Christina’s company that lost money uh in fact every single person that ever played in that deal made money which again doesn’t happen often yeah she was a a great sponsor and I talked about the company a lot and uh um I’m I’m a really Bull on Nevada obviously yeah I’m I’m I’m bullish on Christina to be honest with you I think she’s aist and a really good pragmatic um business person as well so really happy to have her involved she’s been toite twice and actually we’ll see um when we list we did a podcast for ceo.ca on site um we’re holding on to that one until it goes public but it was the ceo.ca group uh and and myself and Christina uh and it’s a really great discussion onsite really really wicked backdrop so I can’t wait to get that out the market and then the other um really important player and a good Mentor of mine that’s kind of guided me in my career as well is Rich Patricio uh Richard is a co-founder of NextGen energy he controls 20 million shares through his public uh vehicle Mega uranium uh Rich has also founded companies like ISO energy um deep experience in value creation as well NextGen as you know is the biggest prob biggest and best undeveloped I would say project in the world yeah maybe if you look at the grades and the cost it could be one of the best of any any mineral out there it’s a it’s it’s beyond a tier one asset it’s it’s a it’s a universe class project anyway so so great like really really great experience from from up top on the board level and I’m on the board as well I’m the the the least exciting of the bunch but I don’t know about that of the bunch you’re a modest uh modest guy you’ve done very well for yourself in the mining business uh from your days um with um um the mine there I forget Detour Lake Detour Lake and then with um you found a lot of gold for ax exploration and now you’ve uh decided to jump into the board seat and uh be the the leader and you know as you were explaining all those people Kelly it all it all comes down to the quality of the project if if you didn’t have that project you would to track that team and also you’re a very astute follower of the business to raise $15 million um in the last six months it to a year uh it’s been very challenging for exploration development mining companies and so that also speaks to the quality of the project yep I I don’t again that’s kind of a two to my own horn thing but yes it it certainly certainly speaks to the quality of the project the team um really the money’s been really really hard to come by up until the last maybe week or two since gold started running everyone got excited again I haven’t seen many big financing so we were yeah we we we I will agree we did a great job on that front and and did it a good valuation so we’re going to come live around $40 million market cap with with eight plus million in cash um a historical resource of better than 2 million ounces a fully permitted mine uh we pour gold on site from our ADR facility we’ve got a lot of things going but but I I I before we move on to the project I want to also talk about my uh my Young and Hungry team on the ground Island I think that’s important and and I think that is something that got Rob excited too was um so we’ve got uh some some deep Decades of experience on the board level uh and then on our management team we’ve got lesser experience but still better than 15 years between uh each of the the three key players so that’s myself uh on Andreas steinborn our coo and Ian Campbell our VP exploration so those guys I worked with Andreas has had quite a career uh building mines with detour and cot leg and also a big iron or mine in um in Finland I think and something else a florite mine or something funny on the the west coast of Canada or east coast of Canada yeah so Andreas is a mining engineer um we actually Ian Andreas and and I all work together in our first ever summer student job soil sampling so we all work out out in the bush together uh obviously you get to know people pretty darn well when there’s a million flies around you you’re you’re sweating you’re once in a while bleeding from from the OD cut um you get to know people’s character pretty quickly in those types of situations especially stuck in the woods together for three weeks on end same days same guys same talk same discussion so anyways I really got to No One respect um the two of them and then Andreas and I actually were the ones that started looking at this project back I don’t know a year or so ago and then presented it to some other people that uh that I know that help finance things and then uh Ian kind of came in helped with our DD as we were we were advancing it and he said this is amazing I I’m I’m in so that’s kind of how the team all formed so Ian uh expertise is on the resource building side of the business so you got a a mine operator Builder you’ve got you as an exploration geologist and a uh a resource uh growth guy yeah so he he started out as a as a mind geologist he was in the pit uh daily blast or mapping out blasts and Muk and and then moved his way up to become the senior Senior Resource Geo for foro Eagle after the Takeover at um at Kirkland lake and um um so yeah he’s got a really cool skill set in that he can he can look at things on on a on a data level like that’s what resource geology is is data collection and data crunching and and and evaluating Trends and and ideas so between my kind of conventional uh exploration expert or not expertise but but skill set and and Ian’s um side of things I think we’re going to come up with some really cool targets and and the other neat thing about having Ian in the VPX role is we’re not going to be wasting meters so when we find something he’ll know you have to drill it at 45 M centers you have to drill it at this angle you have to do this you have to do this many duplicates or or tighten up a hole here or there so we won’t be wasting uh time and effort um because this is a permanent mine we want to get we want to actually mine this thing quickly we don’t want this to be a takeover anytime soon we want to blast Crush stack poor gold uh from this project which many other people don’t actively want to do and that’s also one of the reasons that we were able to bring in uh the big board that we’ve got and you know it’s it’s much needed in the business these days Kelly because that 2001 to 2011 bull market kind of wiped out all the uh the the mid tiers and the developers and there’s not enough developers and small miners in the business which puts you in a unique position because projects that are not big enough for the major mining companies could be company makers and it’s sort of like you’ve got a cart blanch um to look at those size of projects to build the company on so um you know I’m pretty happy to be involved with that kind of thing I like the business of you know over my career I’ve seen some great companies grow from small to big and uh I I I think that’s what uh what’s in your future and as as they say in basketball you guys have a deep bench from the board of directors all the way down to the uh the guys on the ground yeah and then even our our go anyways we’ve got we’ve got a really people is something that we’re not in um no one could ever look at our group and say oh I wish you had someone else there with some more experience that’s impossible um but now on on the Nevada specific um you and Downey who runs I80 gold is a good friend of mine and we’ve had lots of conversations about sort of the transition that we’re seeing in Nevada where you know all those easy to find uh oxide deposits have been found and and most of them have been mined and there’s going to be a transition to the sulfide deposits below the oxides but you guys have quite a a a unique situation in that there’s there’s lots of oxide still on your property plus some very high grades Below in the sides so you got a bit of a Best of Both World situation there in Nevada at the Borealis M yeah so so I and I’ll add one other thing in there Allan um that that other people don’t typically do in Nevada is exploration undercover so yes everyone’s looking for exposed oxide deposits and you know what I think that we’ll probably find one or two still on Borealis when we look at verify I’ll show you you can almost see where they’re going to be but but the the it’s a horse and grabin type um environment if you ever look at a topographic map of Nevada it’s really funny looking it looks almost like like an ocean there’s there’s mountain range Valley Mountain Range Valley and it goes for the whole state um and when you look at the map of the gold deposits it goes line line line nobody looks for gold undercover here because why would would you historically when you have hundreds of millions of ounces sitting there exposed at surface in the oak dropping rock on our property I’ve shown you on the on the verify before we’ll show the audience as well um the best producer historically on this project wasn’t undercover not under much cover under under 5 10 15 meters of pediment cover but still literally a buried gold deposit and no one looks for those because why would you but coming for like for me coming an even from you and coming from Thunder Bay uh and myself coming from the abbat Tubi we don’t ever get the chance to look for gold at surface so we we’re used to um to being a bit creative and and poking some holes through through cover so that’s another opportunity that that um I I don’t think is really look that like even silicon the big Ango thing that was an outcrop Discovery but it was outcrop discovery of a baron silica cap but it was still outcropping that was not it’s a it’s a deeper discovery but it was an outcropping deeper Discovery so there’s there and like that that’s one of the best discoveries to come out Nevada in the past um decade or so the Anglo one y and that was still an outcropping uh gold Discovery so there’s there’s vast potential here and and I I agree with you that that we do have to look at sulfides but I would say the thing that that’s really exciting about looking at sulfides in Nevada compared to most other places in North America is there are permited roers and and permited autoclaves in the state where that doesn’t happen anywhere else so you can find your sulfide you can burn off the refractory Elements which is virtually what a rooster is doing and it becomes non-refractory it becomes the same as Timmons or or or uh the big pories and BC it’s it’s non-refractory gold after that point so as long as you’re you’re aware of the fact that you you’re not going to be doing that with one gr material and you’re looking for four five6 Gr stuff why wouldn’t you look at that if and Kelly what’s the future of mining in Nevada if you don’t start getting out of the oxides and into the sulfides I I’m with you I think that that everyone I think globally everyone’s looking a bit further a field I still think there’s going to be some big I don’t know that you’re going to find 10 million ounces sitting at surface anymore I just don’t with all the advances in hyperspectral technology and and all the the the drones and and just the fact that everyone’s kind of walked the state I doubt someone’s going to find a new 10 million ounce 15 million ounce at surface oxide gold deposit that you can just shovel off and and start mining it just doesn’t seem I’m never going to I’m not going to say it’s never going to happen but it’d be pretty darn surprising not at the scale that it has happened over the last 40 or 50 years I I just couldn’t see that but but could you find half a million ounces a million ounces probably yeah doesn’t take much of a footprint to to find a 500,000 ounce gold deposit well speaking of footprints that’s what really got me excited about this project Kelly because sure you know as I said earlier uh big systems leave big Footprints and when you were showing me this project right away I could see the alteration from Google Earth um and it’s vast alteration but something else you said that really EXC excited me about the project is as You Follow that mineralization it just sort of stops at the covered area except at the area where they went under thin cover and and it uh it was the best pit that was on this project and so not only do you have this Ridge of of uh of um um alteration but it tells you that right beside that in the thinly covered area there should be more oxide deposits and their structures going through there it it really impressed me the potential to mine underneath the uh the cover and also the uh the sulfide so maybe we yeah but also I Al also do well I’ll show you where I think there’s going to be also parallel oxide deposits on the same Trend but I I I think all these things are are amazing and Christina actually when she was there she said the same thing she’s like holy look at all that look at all that that blanket that’s there there’s there’s that’s it’s pretty incredible and I know certainly excited me why don’t we uh switch to verify so we can show some people this stuff that we’re talking about AB believe okay so Alan you can see this I just minimize this a little bit to maximize my window can you can you see this well does it show up problem so this is Borealis this is my my my baby um my my dreams of of grander are right in front of us here Freedom Flats there that’s the best pit that they had production that was actually and you can see the pediment cover so you can just see it by the vegetation so there’s your outcropping mountains and then uh kind of as far as the eye can see you get this flat uh lighter colored area which is just overburden that’s or material that’s left off of the mountain range so the freedom Flats pit sorry I’m spinning around a bit too much Freedom Flats pit was just under 200,000 ounces of historical production uh at just under 5 grams per ton oxide which is bonker’s grade for an oxide gold deposit that’s that’s I know you love the word cash machine that is a cash machine what was again uh just under five grams so these days you know half a gram is what they’re mining in a lot of open pits so and it still looks like there’s more material left there with you can see the alteration in the I think that’s the southern part of the uh the pit yeah we we’ll go inside the pit in a second and I’ll show you what’s existing so I’ll just have to give my my legal caveat so there is a there’s a 2011 pre feasibility study done on this project much of which all the other reserves from that still remain in situ uh unfortunately um The Regulators are required me to call it a historic Reserve so when I when I talk about what’s still in the ground it’s it’s from that document but it’s not considered current just as my nerdy little add-on there Alan but in that study yes there’s plenty of ore still remaining in that pit um plenty of or remaining in this pit that pit so they kind of line up what they mine there right Kelly yeah so the the trend and we’ll maybe the next chat we have we can look at the presentation because I can show you the geological maps better uh but there’s the Northeast Ridge pit right up here there’s a pit called East Ridge that is ready for exploitation right under this this is actually we the The Operators this is the Borealis pit this was the original Discovery right here uh and they actually took some of the waste rock from this pit and filled in that Borealis pit but it’s a beautiful linear uh trend of of deposits and what I find nuts and I’m probably going to have to do it because I it’s going to bug me if I don’t show you but the geological map let’s flip to that one second if you don’t mind Alan just because I just want to set the stage before we look at this all right uh one quick moment here you can see this one now Alan yep your present we’ll just look at this quickly so here’s those pits we just looked at uh Freedom Flats Borealis East Ridge and Northeast R so there’s that Trend it’s a little bit kinked but for the most part pretty darn linear it’s a it’s a clear string of pearls along a single fault and then we we’ll look at these ones in a bit but way over on the west there’s two little pits that were minded out very high grade almost quaries of oxide gold um these this isn’t our map this is all mapped from I believe the government um these different subparallel structures but you can see that they’re exactly mimicking the orientation of of the gold deposition and then there’s a big um range-bound fault that of probably controls most of this mineralization so a lot of it’s occurring to the South and then again I’m just going to jump quickly back because we’re walking our way backwards through the story but um what’s really cool as well Alan in in following that same orientation of those pits you have uh our project Borealis you have hea’s Aurora mine which did 2 million ounces of highgrade underground this was a low self addition deposit then you also it says Red Cloud on here but it’s called The Bod uh mine but the exact same orientation exists on a regional scale as it does on a local scale as it does in the drill core scale so you’ve probably heard of um heard of these happening on on a much larger scale as well these Trends are real and you can see there’s the three perfectly linear gold deposits or gold districts almost and then when you actually look at the property scale you can see boom boom boom Str those deposits exactly you nail it structures associated with the alteration and the mineralization is quite impressive as you can see there the the grabin deposit Borealis they all strike along that fall and you’ve got right beside it and beside it and beside it that’s well so that that was my teaser for this next image so this is a map of grab samples on the property of course there’s no grab samples in that pediment cover yeah this is the area of the historic pit so 1 2 3 4 everything else is grab samples at surface and this is all oxide gold that surface so when we talked about is there oxide potential yes it’s clear as day in front of me um following the same again over here look at that those are screamers that’s better than a gram um in oxide gold and and the thing about um grab sampling in an oxidized environment is what you’re doing when you’re oxidized ing um a rock uh is you’re you’re basically degassing the sulfide uh via your Grain water is essentially uh removing the sulfur out of a sulfide and depositing iron which is rust which is your oxide and the the previously refractory gold which was in that sulfide grain will drop out of the sulfide grain so when you’re actually sampling it surface you’re you’re surface samples can be much lower than what your actual deposit will be underneath that initial surface if you’re just looking at disseminated gold in a rock so in my eyes anything over 50 ppb uh parts per billion sorry so anything in this orange color would be significant uh you get big clusters of it down here there’s a little Hill that pops up um this whole ridge boom this area this area there’s those two little quaries actually are right up appear then there’s gold trending along that Trend so there’s there’s vast potential for additional discoveries and I think that let me show you one more thing just because we’re here and I’m excited about it um here’s two examples of some of the other deposits in the area so um some of the the drill results here are staggering um this is a little pod that was mined out in one of those quaries to the West an example of a hole that was mined in that little quarry 16 M of 10 gram per ton gold wow that’s bananas 45 of seven that ends in 7.3 grams per gold even the kind of more boring ones 25 of three grams um like just boring because of this the colors and there’s not as much red but you’re still seeing beautiful uh intercepts so that’s on the oxide area and then are pretty enviable compared to half a gram open pits right oh uh but even on the sulfide front so this this one over here is our oh sorry is our grabin gold deposit this is um and grabbin sits right beside that uh pit right yeah so grab Freedom fls kind of funnily mapped so it’s I think it’s part of a feeder system um to the whole thing potentially but certainly I think it’s connected to this Freedom Flats because it starts just below it kind of Trends off in a little bit of a different orientation but it’s it’s we’re trying to figure it out right now so actively drilling on the grabin zone at the moment to uh to get a better handle on it but the numbers there are really what drew me into the property I I and I think when I showed these to to Rob is you could see his eyes pop a little bit he’s like um this could maybe be a good place to invest some of the numbers here are bananas man 67 of 16 grams 41 actually this one I highlighted just because it’s where the deposits closed off and it’s still 40 m of 1.7 G closed off I I would say in not in the slightest 67 of 6 115 of four and that one’s closed off it’s wild what um what was left in the ground largely because it was the dirty word sulfide and um there was thought to be no value um again I’m kind of going to tangent here Alan but okay sulfide in our eyes doesn’t it’s not it’s a it’s a beautiful word if you’re looking at six G per T sulfide over 50 plus meters yes I’ll take that all day all night and there’s all you need and the Metallurgy has been done because this is a historical that’s because the whole mentality of exploration in Nevada has been for 50 years has been about oxides oxides oxides so sulfides is it’s not a bad word in mining that’s makes up for great minds uh especially at those grades 67 m of 16 gram of gold Yik spectac 115 met of 4.5 spectacular yeah and these These are these are replicable this is not some cherry-picked you can see in the in the image it’s not me just picking the best of the best I’m just these this is the last one that was drilled in what’s the scale of that map I mean you got WID this is I’m I don’t want to misspeak Alan I should have put a scale bar on it I apologize this is in um looks like Fe that’s in feet so honestly I’m I’m still trying to get my head wrapped around the metric to Imperial conversions this is about it’s about 110 meters from surface down to this point okay so let’s say 100 like there we go so this this stretch here is 115 meters so that’s our scale so so we’re looking at about a a 500 meter strike length open gold depos Clos it um open this way that way and that depth and also in and out of the page as well okay wow so it’s it’s it’s yeah it’s and yeah open in depth open along it’s it’s open it’s it was the thing that intrigued me absolutely and and the guys at earthlabs or or they on ceo.ca they’ve got Den laet there who’s a he loves high-grade big systems and we showed this to him and he’s like man I’m I’m in so they like they it’s one of their bigger positions uh borealis uh in Earth Labs I won’t say what they wrote but it was a good chunk of money um dummy he’s uh he’s the brains behind new found gold and they’ve found a lot of gold yeah they honestly I love those guys Matt Matt CJ Den they they’ve been um yeah really really good supporters of ours and um thank you they can’t help themselves but talk about it on their shows I love it I I just sit there waiting when are we going public when are we going public but I they’re they’re excited and honestly once we start getting stuff out the market I think everyone will be excited all I’m I don’t want to speak uh you never know what’s going to happen and every CEO’s job is to say this is the best thing ever but this is the best thing ever tell the um so let me go back to the I actually this is a photo I took of of a gold pour I’ll stop with the presentation I’ll go back to verify like you want no no you go ahead I’m going to find something here I want to ask you about okay well this is this is a photo that I took of the first gold pour on acquisition um one of the coolest moments I’ve had in my career um it’s a fully operational project and I’ll show you what that looks like in verify so let me pull it yes sir I’ve got this paper that I it’s on the top of my desk in front of my computer screen and one of the holes at that that’s the one that was written by the guys about the grabin deposit correct no uh G ology of the high sulfidation gra yeah yeah yeah yeah okay perfect so I see a portion of a of a hole that I think it was the only hole that got down into the quartz pyate and it seems to be striking or the hole was parallel to a fault yeah and in that hole it hit 29.4 M of 6.3 G but it also had 2 3 meters of 41 grams the only hole into that quartz pyate is is do I have that right yeah there’s there’s a few of them like that Allan so that is the feeder system or what we suppose is the feeder system to that system so the reason that that they’re saying this is Yan COA like is um so that’s really what that paper is is comparing it’s a I I love that paper that’s the one that talks about uh the fact that it’s a 21 by7 Mile alteration system they’ve mapped it out as one largest in Nevada ni they said it I didn’t say it but I’m happy they said it because now I can say it yeah so the the really cool thing uh that they’ve identified is those feeder systems and and Yen COA if you look at the actual geology of it it’s a beautiful uh High sulfidation Rich uh ounce Plus on occasion uh gold L uh and it and occurs there’s a big big alteration Halo with a with a gold Associated gold anomaly with that big halo and then you get these kind of shoots and that’s where the money is and and um the the previous geologist describing borelis there I’m describing his paper and he’s also describing it’s beautiful and then there’s also geophysical signatures that are similar there’s these big spherical um these big spherical magnetic rings and you get your your deposits kind of form on the margins of those rings and that could be that could be an indicator of of the the deep-seated um shoots or bretas or or or areas of of fluid flow um yeah that was I think the paper was written by a guy Steve Craig who was the pre previous VP exploration um and and reading through his I’ve not met the man yet but I’d like to reading through a lot of his old papers and documents you can certainly see that he had an eye for this the sulfide system Roger steininger and Donald rant okay so I think they were just before Steve okay but but people that the GEOS that have worked the project have been keen on this this uh pipik system for for quite some time and was probably just you know how it is it’s sometimes corporately you can’t always you can’t always go chasing the the best geological ideas because sometimes it just doesn’t work in the market or marketing or or how you raise the money or sometimes beholden to um beholden to sharehold focus at that time was probably on the production the oxides so you try to convince your board oh let’s go deeper into the system and they say well why it’s right at the surface let’s get into mining but I’ve I’ve watched some old videos to we didn’t even talk about the history of this thing maybe we’ll do that another time but uh because it’s a long a long history but I’ve watched um a video of the old CEO that owned the project in 2011 and he virtually said exactly what you just said our our goal is to get this in production get it going cash flow from the mine will then Finance deeper exploration including our high-grade sulfide targets at debt the problem with that as a business plan um is it sounds good on paper it sounds good on paper but mining’s hard you need you need Capital you need cash you need you need a you need a significant um Matt or what I can’t even think of the term thinking gymnastics and the guy falling off the balance beam um like like a cushion oh gosh you need you need a significant cushion um to to to to operate these things because things break and it’s kind of like you have a dual Focus right you’ve got one guy wanting one part of the team and you never know who has the most power is pushing towards the production the other guy’s saying well yeah but this could be y a coaching below there let’s get after that too so we we are doing absolutely both so we will be um I I can’t promise this it’s not uh not confirmed not approved by anyone we don’t even have the final drawings but we do intend to resume production the reason that we can go into production is because everything’s built Alan we bought in 2011 uh the previous operators built everything you just saw a picture of me watching a gold pour this is a fully everything is done so it’s it’s a couple million bucks to get this thing back up and running uh and we’ve got the the it’s completely permitted you’ve got the facility to process the material it’s plug and we will be pouring gold I can I can absolutely assure you that we will be pouring gold I can’t at all speak to the numbers that we’ll be producing but within the very near term I would say next next month or so we’re going to start pouring on a semi-regular basis and that’s from the existing pad right yeah so we’ve got let me pull up now now you just built a beautiful do you want to go through this now Al or you want yeah yeah okay so great segue so um okay Freedom Flats beautiful other pit under here Borealis we’ll look at these other pits right actually let’s look at them right now Alan so we’re into Freedom Flats we’re inside Freedom Flats you can see how nicely structurally controlled this thing is you’ve got your cholite alteration you’ve got your deep oxide mineralization there’s golden in both of all the higher grade stuff is within this um I forgot to tell you Kelly after reading that paper I went to the yanaka and I looked at some images on Google and some of the this could be from Yana coocha people go look at Google don’t believe don’t believe my I’m not saying it you’re saying it but it’s not you’re not wrong yeah well go just go do a Google search for Yan coacha images and uh it’ll it looks like this it will look it’ll look pretty darn similar so this is the other side of the pit look at all that alteration manide the alteration the beautiful alter the other pit actually let’s go to the other pit just because it’s prettier in terms of alteration profile I just I should have done a one where where I zoomed in but this one is spectacular for for the alteration sequence so the or kind of strikes along along here and you get your beautiful clay alteration The Ore continues strike striking up um up the wall of the face oh yeah and look it right in between in the in the road cut there’s a couple drill holes here then you get your other pit up top here um this is a beautiful P actually this this waist Rock dump I love for the alteration because you can see you can see what’s good and what’s bad so there’s your so we we’ll do this so there’s our heat bleach pack and there’s our stockpile all red and then there’s the white not necessarily Barren but significantly lesser mineralized but extremely altered uh Rock and this was from recent mining um but there’s plenty of ore left in this when we zoom in a bit if I zoom in I can’t really zoom in much you can see can you see that all in the the pattern that’s present those are actually blast holes that have been blast drilled and never blasted uh this is a an access road into the pit this is the waist Rock dump to from the pit this is the Hall Road to there’s there’s another this another waist Rock dump here I believe actually just stop there for a secondy because sometimes in these when you’re in a hurry to bring a project into production the work is not let’s say to be kind not the best and that and the lower left of the page there um it makes makes me angry every time I look at this you can see some of the the the lack of quality of work that’s a that’s oxides that’s been that that’s material that’s been spilled over the edge of a road and you’d love to have that on the pad and Allan I sit if you can see my cursor or my office is right here and actually I drive into site every morning when I’m up there and it stares me in the face and makes me so upset every yeah every time I see that not to worry Kelly there’s more of that Below in the Rocks there below I know but it’s anyways that but that’s whatever it didn’t but it’s to me it’s indicative of a a project that was brought into production fast trying to you know and maybe cutting corners or well well absolutely they were Corners cut this this went into into production with a pre-feasibility study they didn’t complete a feasibility study on it um and that is that’s a corner and I was speaking speaking of Tony MCU someone recently about it and we couldn’t think of a single example where fast tracking and skipping that step has ever been a good idea I’ve seen projects go that go pea to feasibility study uh and they I think the only one that comes to my mind is predium in the Golden Triangle uh and they had issues because they had big big issues I think because of that exactly they they made it just because their mind was so spectacular it’s hard to exactly hard to fail on one of the best discoveries of the of the last 30 40 years Point well taken it’s um it it 95% or even more percent of the time you skip that step you run into big problems yeah and it seems great when someone says we’re going to finance you let’s get into production now gold Gold’s looking good um so we could have been producing from this uh a while ago but we decided not to we’re still not not confirming that we’re going to although we are going to be I’ll show you what we’re going to be getting gold from but in terms of actually resuming production blasting Rock we’re being very very diligent very cautious and um doing a lot of engineering homework we don’t have to do a feasibility study or a bankable feasibility study because we don’t need to go to the bank because it’s already paid for but we we’ve got like look at our Bard these guys don’t want to be an embarrassment um so you’re going to do your homework we will do our homework and it will be reviewed by our technical team and and committee uh before we give it a production decision got it before I move on here Alan because I I want to talk about the Heap Leach pad in production oh this is the one that you and I love this image there I love this image look at all that alteration yeah it’s wi spread all over the place so this is exactly subparallel and one of those trends that that were identified in the geological map we looked at earlier right beside a fault it’s right it’s it is a fault the fault runs just beside that that range and then there’s grab samples all at the top of the ridge very little drilling you can see a little ring of drilling right around here then a little bit just up around here this whole ridge undrilled um this one is I call it oxide Ridge this is my my my dream I think that there’s another there’s potential certainly to to replicate what’s been found already if if we can find anything and then guess what as I mentioned before follow that Trend down and guess what happens goes undercover um in the exact exact same capacity as this one so so all of that another Trend over here same thing but not only is that that Ridge of alteration wide open but then as you go down into cover it’s wide open as well it even gives you some targeting there because you can follow the the fault going down under cover yeah I agree W it’s not nothing’s that simple but it is that simple I think we’ll see when we get the drills to it but uh I’m I’m really excited to start so from an exploration perspective you got the grabin sulfides right beside the the best pit but then you’ve got a whole Runway of other targets to to get after as well so I would call these my second maybe even third compared to what we have right in front of us right now in terms but even in the ridge right beside it there’s another it continues let let me let me jump over here okay we’ll we’ll we’ll go back to the to the gold production in a second I’ll just want to show you on um on the exploration front what we can see visually right now so so there’s that what I call oxide Ridge right here yeah so there’s where we just were we were looking at Northeast Ridge this pit we were looking at this trend right here yeah there’s another one directly adjacent to it that shows moderately well you can see the oxidation present in this Ridge now too yeah um I just this picture and I made put it in verify if it ever loads sometimes verifies is a little slow gets a little buggy sometimes um looks like it crashed it let me see if I can restart or reload that and you know it it it’s not lost on me Kelly that in combination to that big alteration Zone that just the only place they followed that alteration slightly un into slightly covered is where they had the best pit so you got a whole Runway there of all the alteration in the hill and then everything down beside it yeah it what so what we’re looking at right now is our plan for the summer so we going to get a g to get a bunch of students um especially because my whole management team met together as students s sampling soil together we’re going to do a big soil sampling program over the pediment we’re just trying to look at the best ways to um to to look for buried uh discoveries because what I’m a little bit hesitant about um and any is just a Geo nerd thing but and just something that’s been going through my head is this overb bird Allen is derived from where it’s derived from these mountains yeah these mountains as we saw earlier in the grab sampling map all have gold in them so I’m I’m a little bit I’m I’m trying to figure out a way that somehow can see through what could potentially be gold bearing overburden do you know what I mean if it’s if it’s coming off off of that Mountain Ridge that Ridge is mineralized in gold the overburden might be giving us false anomalies in terms of of targeting but that’s that’s a that’s a degression so is there is there a possibility that you could get in there with augur holes and and get down to the Bedrock yeah we possibly that’s certainly something that we’ve thought about it’s not so I’ll go back into this picture just to show you oh it’s kind of sissified it’s not it’s not just like a sand so these walls or these these um benches are made in the pediment so it’s a hard material but you touch it with a tool or touch it with a hammer it it falls apart it’s it’s like um it’s like when you go to the beach and there’s that crumbly sort of sandstone that would be um the same idea so it’s not as you can’t just augur into it but we’re looking at alternatives to to just go test different areas and especially interesting to get right along the projection of the faults into the oh yeah AB just if I go back to the site overview literally just on on we’ll just use this trend for example but you just go 180 and go you can see they did that with a few holes one two three four yeah um doing exactly what you’re saying and actually there’s some sniffs of gold in some of those uh so there’s that’s that’s a real possibility but I I think that that’s a really smart idea and has not been done anywhere else over here wow so the the image I was trying to show you before so here’s a trend of of of 2 million ounces of historical um resources plus another 2.5 million ounces almost in in historical resources largely in this trend here untested untested here’s this one that I was trying to get loaded before and it doesn’t want to load oh I can see I mean I can see the alteration over there anyways it was a big outcropped Ridge of of um oxide but anyways we’ll we’ll move on it’s funny I gotta so you’ve got a I mean you’ve got wide open exploration uh not just on a overall picture but even right where that grabin deposit that grabin Target is yeah and then and then you’ve got endless targets uh along the the alteration uh Zone Zone absolutely and that’s the that’s the the the pad this the leech pad so this is active we’re we’re continually putting Solution on it um we barded gold twice since we acquired the operation um you can see the thing that’s really fun is this part of the pad right here yeah we’ve never put F it’s no one’s ever put fresh cyanide on that so we’re going to do that uh beginning around May 1st so coming up very quickly so we should recover some really nice gold out of that and then this whole pile over here is a big stockpile from historical mining of about 400,000 tons we’ve got 10 tons of that in um at a place called ml mcleland Labs uh doing a big bulk sample for both met allergy purposes but also for contained grade we took basically one ton from 10 different spots around that stockpile to get a representative grade uh provided it comes back as expected which we kind of know what it will come back like we intend to bring a Crusher onto site Crush that up stack it on the pad start producing gold so that’s that’s part of how we’re going to have this this um cycle of gold and it’s not going to be a huge scale we’re not going to be doing 300,000 ounces a year out of here but I think if we actually generate Revenue um that’s something that very few people can do even watching I80 when when they do their quarterly 3,000 ounces or whatever they did the last quarter that’s money in the bank that that wasn’t there before that’s and and and in this gold market I want to take that gold out of the ground as quickly as I can whoa at $2400 an ounce gold you’re damn right she do that’s free money yeah and and this the other cool thing about Borealis is that it’s a because it’s fully permitted we have to keep our plant running 24/7 so that ain’t cheap we’ve got we’ve got a staff on site 24/7 that thing is running non-stop we’ll take a look at the plant too before we uh dip dip out here but this thing is it’s it’s it’s an active chemical processing facility we’ve got our our various ponds our pre Pond Baron Pond and storm water Pond um we’ve got cyanide costic propane our carbon Lee columns we got a lab on site which is really cool and we’re we’re rehabbing that right now we just actually I just approved the bill to get that up and running um oh gosh inside the plant uh it’s in great working order obviously if we can pour gold bars it it works it was just poured or just built in around 2011 and those are the bars that the bars that we actually looks like it’s still new Kelly it’s we we may have given it a yellow paint job Alan to make it look a little better it uh it needs honestly all it needs if you look at the wall it needs some insulation you can see it’s kind of raggedy there um otherwise it’s in really really great shape uh it’s it’s in your yellow paint reminds me my business Mentor was Dave Richie from Richie Brothers auctioneers yeah and uh I his son is one of my best friends and Dave and I used to love to play crib together and uh I got I I think I got a PhD in business from one of the smartest businessmen in all of Canada but that’s what his business was he’d take used equipment put a nice paint job on it fix it up and sell it and make lots of money so uh you you reminded me of one of my great mentors in business Dave Richie well this was actually the paint’s actually quite funny we had uh my first ever site visit we brought brought some of the board some of our big kind of founding investors in um and and when I a perspective big investor that was looking to play um and it was our first time on site so I make this place look looking good um so they painted this all up but they they put this paint on but didn’t realize that there was a you had to spray a settling agent a dry agent on it afterwards because the construction paint you put it in and then it lets they let it it goes to sit in all the different crevices everyone on the team was cut everyone on the tour they down the agent they sprayed some spots but a bunch we were all covered in yellow paint by the time we went home so the even looking at all this the steel and everything everything looks like in great shape yeah like it’s all it’s all modern electrical like there’s a a very high voltage panel um if we go outside of the plant you can see we’ve got our um you can’t see it from here we’ve got our substation over here so that’s that’s Nevada Energy power uh K Shacks over here office building over there you know and that’s just something that you know trying to bring a project into production these days Kelly the price tag usually starts at about a billion dollars where the mines are these days and this whole setup Allen wouldn’t be that much you’re probably looking at if you had to build we were trying to calculate that but I but I’m not I don’t disagree with you in the slightest so if you were trying to build what we have there including I won’t I won’t count Drilling and exploration as part of it but let’s say you you found this or you bought it and it had no power um I’ll even consider the roads as built because they would have been built for to a degree um in the exploration phase but to bring your power line all the way from Hawthorne build your substation to get your water wells drilled to get your permits for water for crushing Rock which is actually one of the most challenging permits now in Nevada to get because of the the potential pollution that that crushing silicates can can bring our cyanide permit um building our ADR facility the amount of concrete that you pour to build that thing building those ponds um permitting the Heap pleach pads you’re probably in the order of about 80 to 90 million us if not if not more into like 120 us yeah but Kelly that’s that’s in a perfect environment that’s in this this exact environment yes okay put that up into the Andes good luck yeah you’re you’re that’s where you see a billion two billion exactly so that’s my point is that you know we need more gold production in the gold mining space but they got long permitting processes lower grade uh um you know cost to build mines you’re kind of when we you’re kind of in a perfect storm with the with what’s happening with the gold price and then having this ability to go into production with everything built and ready to roll one of the one of the really cool things I agree with you exactly about that is is the fact that we have the ADR facility um we’ve got all the power on site one of our business strategies will be acquisition of projects we we’re not um we don’t want to be a single project company we there’s a number of beautiful assets you just saw when q and Mining acquire Timberline yesterday y um there’s there’s great projects out there that that have been struggling with capital for a while or struggling with market conditions um but something that’s really interesting if we were to were able to get some deals done which I think we will based on our on on all the great things we talked about at the beginning of the call um the neat thing is let’s say you you bought let’s I’ll just pick a 500,000 ounce gold deposit for example so 5,000 ounces of Heap Le able gold in Nevada so not a small no Major’s going to care about it no mid tier is going to care about it exact so so there’s the the well funny the the the one that mchu and Mining bought was was about 500,000 but that has huge potential for additional deposits yeah there’s a big geophysical anomaly all yeah there’s lots going on I agree it’s it’s a it’s a big way different Beast than just that 500,000 oun that they have which is why he paid an equivalent of 53 bucks an ounce for for it which um is probably a bit high for that type of deposit on its own CU there’s there’s deposits trading at 10 bucks an ounce in Nevada right now um with but what’s left they’re going towards that big geophysical anomaly looks oh I’m really I’m really not knocking it at all I’m just it was just it was I just brought it up I think it was a great buy um so yeah let’s let’s use a half a million ounce deposit for example there’s there’s very few Majors like you said no very few mid that would bother putting that into production because it’s not going to really help their balance sheet it’s not going to be a material impact to what they’re doing maybe they can pull out 30 40 50,000 ounces a year really not going to do much for us um let’s let’s again very hypothetical imagine we could do 25 to 50,000 ounces a year at of Borealis with what we have in front of us you add another 25 to 50,000 ounces you become pretty darn close to 100,000 ounces you would do that one more time you’re you’re almost mid-tier gold produc or Junior gold producer you’re in a real gold production company but again I’m I’m very Sidetrack today Alan my bad okay but um what you can do is because we have all the infrastructure in place we’ve got the power the ADR facility we can pour the gold all you’d have to do and let’s say you had this half a million ounce heat bleachable deposit you would have to permit a quarry for the pits you’d have to permit uh running a diesel generator which I don’t even think you need a permit for so you wouldn’t have to build power to sight you’d put in um a pond like we just showed just one of those ponds that I just showed you earlier and and a heap pleach pad and a single train of of five carbon columns and that would be sufficient to uh and that you can do that for like 20 30 million bucks and and all you’d have to do is ship the loaded carbon to Borealis we’d process it on site or the gold on site and wouldn’t have to build a 40 plus million plant so on these smaller projects which are not not huge money makers they they’re marginal uh to many people cutting that big chunk of capex out of out of something that maybe you’re only going to get2 $300 million out of the ground if you can cut down your Capital costs from $75 to $80 million which probably wouldn’t even you wouldn’t even bother building it at that point if you can cut that to 20 that becomes a pretty screaming buy for us so there’s really cool opportunities you what you just touched on there is a uh growth plan that silverrest is talking about it for their L chesus mine I was listening to their president talking about that they think they can grow their resources on their own property but then they’re looking at satellites because okay when it comes to their own property you you don’t have that big threshold of Economics to jump over because you’ve already got it built so they’re looking at on their own projects but then satellite projects within a they call it their 30 60 and 90 kilometer plan so they’re looking at projects 30 kilometers 60 kilometers and 90 kilometers to bring it to their plan and there must be some sort of grade and size thresholds for each of those of course but those you don’t have that big capex to justify you just bring it to the plant they’ve already spent the what I think that what did that cost them 800 $800 million is that right I can’t remember what it cost them I know it wasn’t disgusting I remember that it wasn’t like a three3 billion dollar project yeah exactly um but it’s built and and they and it’s making money so why wouldn’t you make more money and what you’re describing there Kelly is sometimes I think think investors and even Management in companies in the mining space they they look at it as well will this move our stock valuation and they don’t really think they think of it more as the businesses to move their stock valuation than to build a company yeah and that creates a vacuum and you know you’re kind of if you’re the only guy going into something that’s needed it opens up a whole big uh Windows of opportunity yeah I I’m I’m with you and and really the the cool thing about our business plan I would probably we can shut her down at some point but one of the cool things to to to touch on as well is what we’re looking to do and it’s something you just mentioned is actually build a business um we want to build a company that makes money we’re not looking to build a a takeover uh which is a great strategy makes makes people lots of people become very very very very wealthy doing just that um but I think there’s an appetite in the in the market and and we certainly have that appetite to build something that um many people aren’t actively doing um which is try to make money in the gold industry so we want to be I would say within five years a gold a real gold player like actually producing and generating and sizable cash well I love the business plan I love the project I love your team uh Kelly you’ve done a wonderful job of building a private company I can’t wait till it goes public and um we’ll see where it takes us from there me too buddy thanks thanks so much for all the support it’s been uh been very helpful and and glad you’re a shareholder and can’t wait to uh can’t wait to see where it trades yep and uh uh as always my uh wherever I can help uh I’ll be there for you Kelly I I uh I I try to attach myself to really smart people uh and um I uh it’s been a while since I had somebody close to work with one of my uh my past sort of business partners he passed away much too young and Bob Singh and I and Scott weeks we all worked very close together and Bob went on to big success and I I got very similar feelings about you Kelly so I’m really stoked to be involved with this company and uh I think we’re going to do some great things together thanks brother much appreciated all righty man I’m gonna close it off and uh next time we got to talk to your coo and your resource guy and yes I could talk to you for hours Kelly this is a lot of fun man cool buddy well yeah you let me know when we’ll do it okay I’m going to close it off I’ll talk to you at the other end there so there you go folks I um Bor Alis I’ve talked about him as an unnamed pick and pass reports well here’s the pick and uh I’m I’m very much looking forward to their future uh and um do your homework check the company out have a great day and we’ll talk to you soon

Borealis Mining is a private company getting ready to go public. In a challenging market for gold stocks raising money they have raised $15 million as a private company. In addition, Rob McEwen is their largest shareholder. They have a project that is ready to bring into production in Nevada, while also wide open for exploration.

Allan Barry Laboucan is the founder of Rocks And Stocks News

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