MiningNewsVideos

VIDEO: Kintavar Exploration Inc (CVE:KTR) Drilling Program Reveals Significant Stratiform Copper

By |

Watch

Midas Letter

The Digital Businesss Channel for Cannabis, Crypto and Technology Stocks.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

Kintavar Exploration Inc (CVE:KTR) (FRA:58V) CEO Kiril Mugerman describes the company’s significant stratiform copper exploration project in Quebec. In January, Kintavar drilled its discovery drill hole, featuring 120 meters of 0.34 percent copper. Mugerman talks about Kintavar going public in 2017 and raising $10.2 million on the strength of its January discoveries. Mugerman reveals that the company is prioritizing a drilling exploration program to determine the size of the stratiform copper find.

Transcript

James West:   Hey, welcome back. My guest in this segment is Kiril Mugerman. He is the CEO of Kintavar Exploration, trading on the TSX Venture under the symbol KTR. Kiril, welcome to our show.

Kiril Mugerman:    Thank you, James.

James West:   SO Kiril, tell me about the project that Kintavar is exploring.

Kiril Mugerman:    So, Kintavar is exploring a stratiform copper, the project in Quebec.

James West:   Stratiform copper?

Kiril Mugerman:    Yeah, stratiform – not usual for this part of the world.

James West:   Right. So where else in the world are there stratiform copper deposits?

Kiril Mugerman:    So the two most known ones are in the DRC. You’ve got the big discovery there by Robert Friedland, and then you’ve got one in Poland that KGHM’s been mining, I don’t know, for 10, 20, 30, 40 years now. It’s a project that starts in Germany and goes all the way into Poland.

James West:   Really?

Kiril Mugerman:    That’s how big they are.

James West:   So this is the – this is a characteristic of stratiform copper deposits, is that they go through, they’re countries in length?

Kiril Mugerman:    Well, it’s a – it was part of a sedimentary basin before, within an ocean, and now they are mineralized and it’s usually one long unit that just you follow and follow and follow. In our case, it’s actually a bit different; that’s why it never was discovered here before, because instead of being a flat unit that you can go and mine underground, this has been folded, as part of the Grenville orogeny. So instead those flat units have basically got folded and re-folded, and that’s what we found on surface.

James West:   That’s the stratiform.

Kiril Mugerman:    That’s the stratiform, but it doesn’t look necessarily stratiform like in Europe.

James West:   Sure. Okay, so sounds like this has a potential to be a pretty significant deposit, then?

Kiril Mugerman:    Oh, absolutely. I mean, when we found it, we had no idea. The original discovery by Noranda was basically, they thought it was a skarn deposit. And when we started trenching it, we realized right away that mineralogically, it looks totally different from a skarn, and then we worry about the connect that to another showing 15 km to the north, and then to another showing in between those two, and then another trench opened up and another trench opened up – next thing you know, we saw that it was all part of the same sedimentary basin. So the entire sedimentary basin, the Mitchi, is basically 30 km long by 10, 15 kilometres wide, but it has been folded; it was probably originally a couple of hundred kilometres long.

James West:   Really. Hmm, so the might yet find extensions to it in Quebec.

Kiril Mugerman:    Maybe we did already.

James West:   Yeah. So tell me, how have you financed exploration to date?

Kiril Mugerman:    So Kintavar, I put Kintavar public in March of last year, 2017, a little financing of $2 million to really get the things going. We started doing exploration, we came up with the stratiform model – it was, let’s say, not too many people took us seriously. Then we financed another $1 million in December of last year, we started drilling, and in January, we drilled what became the discovery drill hole: 120 metres of 0.31 percent copper – no, 120 metres of 0.34 percent copper, then 130 metres of 0.31 percent copper. We got one drill hole of 206 metres of 0.2 percent copper…so I mean, really, things started adding up quickly, without us even targeting specific zones. I mean, we were just trying to put things together.

Now since then, we financed $10 million based on the success of the winter drilling program; out of that $10.2 million, half came from several Quebec institutions. The Caisse de Depot investment over, almost $4 million into that deal. The other Quebec institutions participated, that’s all hard cash. We did over $ 7 million out of the $10 million. So you usually see the opposite, mostly flow-through and a little bit of hard cash, and we did this all hard cash.

James West:   Huh. So now, I guess, the plan is to drill the crap out of it?

Kiril Mugerman:    Yeah, so we focused on drilling since June; we drilled, now, 44 drill holes for a total of just under 9,000 metres. We published the results for 11 drill holes; out of this, we got a brand new mineralized zone, Irene, that just got announced yesterday. Another drill hole, the best drill hole by far, gave us 82 metres of 0.4; that was announced a couple of weeks ago, and I’ve got 33 more holes to go.

We even drilled one hole for pure metallurgy, so between one of the pervious mineralized hole, and we are sending that off for mineralogical work to make sure that copper and silver are nicely recoverable at the same time.

James West:   Sure, and you brought a sample with you?

Kiril Mugerman:    Absolutely. I mean, you can’t argue when the mineralogy is just so visual, and you can see here, bornite mineralization. And this grab sample is from one of the northern sections of Nasigon, and that is a grading of, that’s grading at 5 percent-plus copper.

James West:   Huh. And this is a grab sample from surface?

Kiril Mugerman:    That’s a grab sample from a trench that we opened up this summer, was one of the exciting discoveries of Nasigon South; highest grab sample there was 9 percent copper and 0.8 grams per tonne gold, 100 grams per tonne silver. We channeled that, that gave us, I believe, 6 or 8 metres of around 0.8. yeah, 8 metres of 0.8 percent copper. I mean, we’ve been finding zones, every other week we were finding a new zone, basically.

James West:   Really. Wow. Where exactly in Quebec is this?

Kiril Mugerman:    That’s four and a half hours north of Montreal. So you start driving as if you were driving towards Val D’Or, but then you start, you take a road to the right and you go into what’s traditionally known today as a forestry region near Mont Laurier. There is no mining exploration; the closest exploration project that we have near us is a graphite company, so it’s really not traditional exploration ground.

James West:   Right. Okay, interesting. So infrastructure?

Kiril Mugerman:    Infrastructure, so look, we have, the roads literally bring you straight to the project, four and a half hours if you drive from the south, five hours if you drive from the northern portion. Logging roads, a full hauling road maintained by the logging companies; I’ve got three camps on site, one camp has 150 people capacity, another camp around 15-20 people, and the third one around 30-40 people capacity, and those camps can just come there, rent it, and use that for the next month, two months, three months, whatever it is. One of them, we’ve been permanently renting, and they have power.

So the camp with 150 people, they brought their power line in 2013.

James West:   So it sounds like it’s time for a JV with a major.

Kiril Mugerman:    Let’s just say it’s been very active.

James West:   Right, right. Okay, so no major mining companies have yet participated in a meaningful, significant way?

Kiril Mugerman:    They have not participated in the financing, absolutely.

James West:   Interesting. Well, that’s quite exciting. Is that the only project in the company, just the main focus?

Kiril Mugerman:    That’s the main focus. So that’s by far the flagship of the company. We recently, we cleaned up the property a little bit by buying out all the royalties; we bought the royalty on the southern portion, on the Sherlock area, for $50,000 in shares. So now the entire sedimentary basin is royalty-free.

James West:   Really? No NSR?

Kiril Mugerman:    No NSR.

James West:   Oh, well that’s attractive. Very interesting. So what are the – what are the big plans going forward?

Kiril Mugerman:    So look: the objective was, we have to hit corridors. Every corridor is 7 kilometres apart, roughly, and you have to work all of them, because every area will have its own nicer and thicker mineralized areas.

On Sherlock, we managed to demonstrate already 4.5 kilometres of continuity of mineralization – strike line.

James West:   Wow.

Kiril Mugerman:    So now we are in the filling. We are kind of taking it block by block; we are trying to get a block every 500 metres. So Sherlock and Tolbe, they form one area; then they got the Watson area that has another 500 metres. Elementary was an unbelievable discovery this summer; that’s the one that extended the mineralization all the way to 4.5 kilometres.

Then in the north you have Nasigon, that’s a corridor by itself; there, we roughly get 2 kilometres of triclinic mineralization, and the corridor in the centre, Espana, we didn’t really focus on it, but now, as soon as hunting season is over, mid-October, we are putting the drill rig on Espana and putting the first few drill holes there.

So the idea is, we need to expand, and that’s why we are going slowly, one drill rig at a time, working on Sherlock, let’s say drilling; in the meantime, a team of geos and technicians are doing trenching in one of the other corridors. That way, I’m expending everything without necessarily just kind of over-focusing in. we don’t want to focus in right now; we need to show how big it is.

James West:   How many shares out?

Kiril Mugerman:    80 million shares, and fully diluted it’s 99 million shares.

James West:   99 million. And what was – at what price was the last financing, when did you do it?

Kiril Mugerman:    The last financing was at $0.40, plus half a warrant. That was on June 27th. Flow-through we did a little bit less than $3 million on that one, and that was at $0.54, no warrants.

James West:   And so how much of that is left?

Kiril Mugerman:    I have to look into it, but I’d say probably $1.5 million left in the flow-through at least.

James West:   Okay. So you’ll be doing another raise soon?

Kiril Mugerman:    Look, we’ll see. I mean, there were so many site visits during the summer, so we’ll see where everything goes.

James West:   Right.

Kiril Mugerman:    I mean, in total, out of the – that’s what flow-through money is left, but in total, the company has right now $8 million.

James West:   Okay. Fantastic, Kiril. That’s a great introduction to the story. We’re going to follow with interest, have you back after some more drilling, and we’ll see how you’re doing. Thanks for joining me today.

Kiril Mugerman:    Excellent. Thank you very much, James.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

Free Newsletter,
Priceless Content.

Get more of Midas Letter delivered right to your inbox.

Special Offer

Sign-up today and receive free and immediate access to three recently published special reports!