February 20, 2019

Canadian Orebodies Inc (CVE:CORE) Hemlo District Bonanza Grade Gold Find

Midas Letter
Midas Letter
Canadian Orebodies Inc (CVE:CORE) Hemlo District Bonanza Grade Gold Find

Canadian Orebodies Inc (CVE:CORE) (OTCMKTS:CNOBF) CEO Gordon McKinnon details the company’s current drill program at its North Limb site. Canadian Orebodies announced initial drill results for the site in December 2018. McKinnon notes the 2018 drill program confirmed bonanza gold grades and emphasizes that the results showed the previously discovered high-grade vein was actually multiple veins, with better widths and grades. The company is following up on its 2018 results with a new drill program, using ice pads to drill off Smoke Lake. McKinnon also provides a run down on the company’s other marquee project at Wire Lake. Canadian Orebodies will attempt to connect both systems through geochemistry, which would extend the system over 5 kilometres.


Narrator: Canadian Orebodies is a Canadian-based mineral exploration company with a portfolio of properties in Ontario and Nunavut. The company is focused on generating shareholder value through the advancement of its two Hemlo-area projects: Wire Lake and the North Limb. Canadian Orebodies Inc. trades on the TSX Venture under the ticker symbol CORE.

[stock_chart symbol=”CORE:TSV” align=”left” range=”5D”]

Ed Milewski:  Hello, everyone. Welcome to Midas Letter Live. Joining me today, Gord McKinnon. Gord McKinnon is the CEO of Canadian Orebodies, ticker CORE, aptly named.

Gordon McKinnon:   Appropriate.

Ed Milewski:  Very appropriate, and Gord, you, there’s a bit of history in the mining business in your family. I think I’d like to point out that your father founded the famous Hemlo gold mine, is that correct?

Gordon McKinnon:   That’s correct, yeah. My father was a very influential person in the mining space; Hemlo was one of his biggest claims to fame, which at the time was the largest gold discovery in Canada. It’s produced well over 20 million ounces, and it’s Barrick’s only Canadian asset, and it’s still continuing on.

Ed Milewski:  Wow. Wow. So you have this company, and I understand you have a very sizable land position?

Gordon McKinnon:   Yes. Yeah, we’re, so, we ended up going back into the Hemlo camp –

Ed Milewski:  So that’s where you are?

Gordon McKinnon:   Yeah.

Ed Milewski:  In that, you’d call it a camp?

Gordon McKinnon:   Yeah. So we’re back in the Hemlo district, you know, made famous by my father. There was a little bit of hesitation to do this, but I was encouraged by some of our large shareholders to get back in here, because obviously trying to follow up on what my father did would be, is a tough shoe to fill.

Ed Milewski:  Is it something like, they say, if you want to find gold, go where gold has been found before.

Gordon McKinnon:   Yeah. The shadow of a headframe saying always comes out, right? And Hemlo is very unique; you know, we’re typically in a greenstone belt that has a mine that produces over 20 million ounces, there’s always other discoveries that are made. And Hemlo is like this anomaly that there’s been nothing else found besides the original discovery. But we believe that it’s just for a lack of, you know, like, exploration. You know, more companies needed to go back and take a harder look. It got this reputation that it is an anomaly and there’s nothing else really in that camp, but you know, we’re coming back here to show otherwise.

And it wasn’t our intention to be the largest landholder in the Hemlo camp, but now we are. We have well in excess of 30,000 hectares.

Ed Milewski:  Yeah, that’s a big land position.

Gordon McKinnon:   Yeah.

Ed Milewski:  So, okay, so you’ve got this land, now tell me: I think you told me there’s roughly 50, 55 million shares, fully diluted. Your stock’s trading around $0.30, so your market cap?

Gordon McKinnon:   16, 17 million.

Ed Milewski:  Yeah, yeah, which is, you know, like there’s some, a lot of these things out there that are trading 3 or 4 million, but you’ve got some pretty impressive list of major shareholders.

Gordon McKinnon:   Yeah, we’re fortunate for a company of our size to have, you know, a roster of shareholders that we do. We have, you know, less than 10 people that control over 75 percent of our stock, so the stock doesn’t trade that well, but it also primes us for a discovery. Like, when, if we have a, you know, another major hit, there’s no stock for sale, so you get to see these things move pretty quickly.

Ed Milewski:  You can sort of blow on it and it’ll move, right?

Gordon McKinnon:   Exactly.

Ed Milewski:  But you have to – now, so, how many major shareholders do you have? Would you say three, four?

Gordon McKinnon:   So just like with management alone, that’s over 17 percent interest there. Then we have Rob Cudney from Northfield Capital, very famous –

Ed Milewski:  Very famous guy.

Gordon McKinnon:   Sold his Gold Eagle mine for 1.5 billion, and he’s our largest shareholder. Then we also have groups like Osisko mining has, you know, 12 percent shareholder.

Ed Milewski:  That’s Sean Roosen, I guess?

Gordon McKinnon:   That’s correct. And then guys like Rob McEwen and Rick Rule…

Ed Milewski:  Rob McEwen, Rob McEwen, Rob McEwen’s name is all over hospitals in Toronto.

Gordon McKinnon:   Yeah, so, I can say, you know, for a company of our size, we’ve attracted quite the roster.

Ed Milewski:  Yeah, you’ve sort of put together the A team.

Gordon McKinnon:   Yes. In terms of shareholders and in terms of our management and the project evaluation team as well.

Ed Milewski:  Yeah, yeah, okay. Now, you did some drilling last year.

Gordon McKinnon:   Yeah, so we went back to the historic super-G, which was known as a, you know, a narrow, high-grade vein system, but it was always looked at as just this one little narrow, high-grade vein. So what we went back here in our last program, we put just a few holes in there – we were able to show that this now looks like a greenstone-hosted gold vein system. So it’s not just the one high grade vein; we’re looking at multiple veins, and we hit multiple veins in the drilling that we had there. We had the Marks vein, the Discovery vein, and the Super-G vein, and in the drilling that we did last year, we were able to extend mineralization by 25 metres down plunge, and the widths got better, and the veins got better.

Ed Milewski:  There’s a map there, I mean, and it’s over here as well.

Gordon McKinnon:   Yeah, so we were able to hit 133, you know, grams per tonne over 2 metres, but that also included, you know, 0.6 of 443 grams per tonne.

Ed Milewski:  Grams of gold.

Gordon McKinnon:   Yes, some pretty spectacular stuff, and –

Ed Milewski:  So now we’re going to follow up on that?

Gordon McKinnon:   That’s correct. So what we’re looking at doing here now, so with the success –

Ed Milewski:  And when will that – sorry, I didn’t mean to interrupt, but when will you start drilling that?

Gordon McKinnon:   So we’re looking to follow up on this starting next week. Drilling what we’ve been –

Ed Milewski:  So it’s very targeted, then?

Gordon McKinnon:   Yes it is, and what we’ve done over the last month is, we’ve been up there building ice pads on Smoke Lake, because ultimately the best angles to target this thing are off the lake, and this has never been done before in this camp, on this target. So that’s what we’re going to be doing here this year, starting next week.

We’re also going to be drilling holes off the land, but several of the targets, or the targeting techniques that we need to do, we need to do that off the lake, so –

Ed Milewski:  You know, we cover a lot of marijuana companies in this show, and Smoke Lake would be a nice tie-in. Anyway, so okay, so drilling is going to start.

Gordon McKinnon:   Yeah, so news will be coming here, you know, we’ll be drilling starting next week, you know, then we should be wrapped up by early March, and then it’ll just be waiting for the assays maybe three weeks, four weeks after that.

Ed Milewski:  How deep will you go?

Gordon McKinnon:   We’re not going to be going too deep, here. It’s just.

Ed Milewski:  So you, obviously, the closer you find it to surface, the more economic it becomes.

Gordon McKinnon:   That’s correct, but with grades over 400 grams per tonne, you know, that’s something that –

Ed Milewski:  So is this a Great Bear lookalike, would you say?

Gordon McKinnon:   It has characteristics to Great Bear. I would say a better analogy may be AMEX, you know, and that’s a story that’s getting a lot of love.

Ed Milewski:  Oh, listen, I bumped into Victor Cantori about a month and a half ago and he said this is hot off the press that it looks like they’re onto something. And the stock was $0.20; today it hit 95.

Gordon McKinnon:   And, you know, that’s a prime example of just like, you know, we’re fortunate to have the shareholder base we have, but we don’t have a retail following, really.

Ed Milewski:  Well, maybe we can help you change that.

Gordon McKinnon:   Yeah, well I would hope getting our name out here and with the upcoming drilling and results, we’ll hopefully, you know, provide that and get it out to a wider audience, because, you know, at the market cap that we’re at, and we see these other companies that are putting out almost –

Ed Milewski:  What Great Bear is what, is it 150 million market cap right now?

Gordon McKinnon:   Yeah, it is. And again, it’s high grade, narrow intercepts, but they also have some wider stuff. But you know, the AMEX story is very good because they have the narrow, high grade, and then they also have this low-grade system. Because, besides Smoke Lake, we also have Wire Lake, which is over 3 kilometres already historically. It’s got 100 holes in there, but it’s lower grade mineralization, but the mineralization is consistent over that entire 3 kilometre strike length. And what we’re actually trying to do here with Smoke Lake and Wire Lake –

Ed Milewski:  Tie it in?

Gordon McKinnon:   Yeah, is that we’re, through geochemistry right now, we’re trying to get a signature on both of those and show that they’re part of the same system. And if that’s the case, which we believe it is, that would extend our, the system, over 5 kilometres, and then also show that that high grade is possible all along that 5 kilometres; we just need to figure out how to target it.

Ed Milewski:  Right. Without spending a lot of money.

Gordon McKinnon:   Exactly. So that’s what we’re doing with all this geochemistry work here right now, is trying to show that, and then trying to figure out how we’re going to be able to hone in on and target that high grade along that trend.

Ed Milewski:  Yeah. Well, you’re obviously very enthusiastic, and you know –

Gordon McKinnon:   Well, we’re very excited about what we have, and we, you know, we want, you know, we want to bring other people into the story because we just believe it’s very cheap, we’re well-funded, we don’t need to go back to the market.

Ed Milewski:  Yeah, you know, and the enemy of a shareholder is dilution, right?

Gordon McKinnon:   Exactly, yes.

Ed Milewski:  So you’ve obviously been a good steward in that you’ve kept the dilution down.

Gordon McKinnon:   Yep, we try to do that, and, you know, finance at highs if possible. We’ve always been fortunate, you know, to have a continual backing and always been able to raise money. So we’ve never been one of the, we never let the company try to get down too low in the treasury, so.

Ed Milewski:  Yeah. Now, you know, I’ve looked at a lot of things over the years; I’m 40 years basically in this business, I have an accounting background, I’ve made a lot of mistakes. You know, there’s a checklist that I sort of have, that before I’m getting involved in anything, like, I’m not going to – and again, I’m not judging, I’m just saying for me, I want to see good structure, I want to see good shareholders, and I want –

Gordon McKinnon:   I think we tick those boxes.

Ed Milewski:  And yeah, and land in the right jurisdiction.

Gordon McKinnon:   Yeah, no, like the camp we’re in, like the Hemlo camp is infamous for, and that’s what I also believe in why we were able to attract the group of people that we did, is cause it’s prime for discovery, you know. If there is a major discovery here, if we’re able to be successful in this next round of drilling and, you know, continue on what we found from the drilling last year, you know, I believe that, you know, we’d be lighting a wick for, you know, for a big boom here.

Ed Milewski:  So let me just, one other, maybe a couple questions here and we’ll wrap it up, but so when do you think you’ll get some results from this drilling program? Will we be towards April 1st? We don’t want any April Fool’s jokes.

Gordon McKinnon:   No, no, we won’t be looking for April Fool’s, but I would imagine by the end of March or early April, we should have results.

Ed Milewski:  Yeah, good. And anything else you want to add?

Gordon McKinnon:   No, you know, the news flow here is going to, so it’s not, you know, we’re not a story where, you know, people are going to be jumping in here and there’s going to be no information coming for a while. We’re going to be drilling next week, we’re going to have those results, and then we’re going to be right into our summer exploration, which is our busiest time. So you know, the news flow is going to be consistent.

Ed Milewski:  Yeah. I wish I wasn’t getting so old, because I forget things very – anyway, look, it’s great having you here, Gord, and we’re going to have you again, to keep us posted.

Gordon McKinnon:   Oh, definitely, I’d love to come back with –

Ed Milewski:  For sure, for sure, and this, you know, we’re going to probably – we’ll keep in touch, and we’ll see what happens.

Gordon McKinnon:   All right, I appreciate that. Thank you, Ed.

Ed Milewski:  Okay, thanks, thanks, thanks for coming by.

Gordon McKinnon:   Bye.

Related Articles


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.