Sama Resources Inc (CVE:SME) Innovative Approach to Samapleu Drill Program
Sama Resources Inc (CVE:SME) (OTCMKTS:SAMMF) (FRA:8RS) CEO Marc-Antoine Audet provides an introduction to the company and shares details of its recent operations. Sama is a resource company focused on the exploration of the Samapleu Nickel-Copper project in Côte d’Ivoire. The site features nickel and copper sulphides at surface and has yielded finds of cobalt, silver, platinum, and palladium. Sama began a new drill program in January to look for the source of the surface sulphide. Sama is using HPX’s Typhoon system to provide greater mapping detail of the geological system.
Narrator: Sama Resources Inc. is a Canadian-based mineral exploration and development company with projects in West Africa. The company is focused on exploring the Samapleu nickel/copper project in Ivory Coast.
In October 2017, Sama announced that it has entered into a binding term sheet to form a strategic partnership with HPX TechCo Inc., a private mineral exploration company.
Sama Resources Inc. is listed on the TSX Venture and trades under the ticker symbol SME.
Ed Milewski: Oh, it’s a mining thing. This is our new…Okay, good, good.
Marc-Antoine Audet: This is nickel and copper, and this is the massive –
Ed Milewski: Okay, so we’re live. Marc, Ed Milewski, welcome to the show.
Marc-Antoine Audet: Thank you very much.
Ed Milewski: And Sama Resources, ticker symbol SME, and I don’t know much about your company, but I’m going to learn; I see massive sulfides, nickel, copper, palladium, platinum, wow.
Marc-Antoine Audet: Absolutely.
Ed Milewski: So this is – and where is the property?
Marc-Antoine Audet: Well, the property is in West Africa, in Ivory Coast, and this is a country that usually people doesn’t know about, doesn’t know about base metals as well. It’s mostly known for the gold, but since I’ve been in Cote d’Ivoire since the 90s, mid-90s, and I was a project manager for Falconbridge at that time.
Ed Milewski: Yeah. Ivory Coast, if I’m not mistaken, is usually gets a – it’s a country that isn’t looked upon favourably, is it?
Marc-Antoine Audet: Absolutely. It’s a very good country for mining and investment. There’s four gold mines already running over there; there’s a plan for several more, and there’s also the potential for the base metal, the polymetallic resources. The one that we just discussed: nickel, copper, cobalt, palladium, rhodium, gold, silver and platinum. So these are all the new discoveries that we made in 2010, and I don’t know if your auditor can see it, but we have core on the table there that shows the massive sulfides, up to 4 or 5 percent copper.
Ed Milewski: Yeah, can I just – can we put this up like this?
Marc-Antoine Audet: Do you see it?
Ed Milewski: Okay, there, yeah. That’ll work.
Marc-Antoine Audet: So you see this is a beautiful material.
Ed Milewski: And what is this in here?
Marc-Antoine Audet: That’s the copper zone. That’s the copper-rich material; you can see it from this yellowish colour.
Ed Milewski: Very, very, very rich.
Marc-Antoine Audet: Very rich, and this is the nickel zone, which is 100 percent sulfur mineralization. I mean, this is magnetic material that came from the mantle and that was deposited there in a layered complex about 2 billion years ago.
And now we have this kind of mineralization scattered over 60 kilometres strike lengths in western side of Cote d’Ivoire. So it’s a very good area for –
Ed Milewski: Right. And when was this discovered?
Marc-Antoine Audet: This was discovered in 2010.
Ed Milewski: In 2010, so roughly 9 years ago.
Marc-Antoine Audet: That’s right. And that was a small little showing at that time, we called Samapleu, which is the reason why we call Sama resources; it’s a small little village called Samapleu. That was the place for the original discovery. But since then, we discovered more zones scattered over a fairly large area, and one of the new zones called Yepleu, it’s located 20 kilometres away from this one, and this is the first occurrence of nickel/copper sulfite at surface in West Africa.
Ed Milewski: In West Africa?
Marc-Antoine Audet: In West Africa. You go there on the top of the mountain, we are at 1,100 metre elevation, and then this is where you can see the mineralization right at surface, not even alter the weather, right at surface.
Ed Milewski: Well, I see we have a – is this where you’re –
Marc-Antoine Audet: This is the area at Yepleu, we call Yepleu; this is 20 kilometres away from that Samapleu mineralization on the table.
Ed Milewski: And you’re pulling that truck because you don’t want to get stuck.
Marc-Antoine Audet: Well, we were in the rain season; we wanted to go right on top because it’s a fairly rugged area there. And what you saw on the video was a new technology that we use right now for, it’s a geophysical survey, and the equipment and stuff is called Typhoon. That’s the name of the equipment. And this Typhoon system allow us to see down the cross to about 1,500 metres, which that, it’s not used anywhere.
Ed Milewski: Really? Is that the device there? No.
Marc-Antoine Audet: No, this is the device on the truck. Unfortunately, you don’t see it on the video inside the truck.
Ed Milewski: Okay, okay.
Marc-Antoine Audet: What I have in my hands, there, it’s a XRF analyzer.
Ed Milewski: Okay, yeah, okay, yeah. I’m familiar with that one.
Marc-Antoine Audet: So this is where we have this mineralization, in western side of Cote d’Ivoire, scattered over, this is to 20 kilometers between the two deposits, but we have example of it for larger area.
Ed Milewski: So tell me: how many shares in your company?
Marc-Antoine Audet: It’s 196 million shares outstanding at the moment.
Ed Milewski: And what’s the current price, roughly?
Marc-Antoine Audet: It’s varied between $0.27 and $0.30.
Ed Milewski: So your market capitalization is $60 million?
Marc-Antoine Audet: 55 to 60 million, yes.
Ed Milewski: Wow. That’s a good amount. Are you sitting on a, how’s your treasury? You got lots of cash?
Marc-Antoine Audet: Well, we have $4 million in the cash right now, and we just last year signed a deal with HPX. HPX is a group run by Mr. Robert Friedland; he likes the area where we are. He made 8 months due diligence on what we discovered, and he’s injecting up to $30 million in summer. So we received the first $5 million, and now we are in the execution path in order to find the sources of these massive sulfides with that money.
Ed Milewski: So you, you’ve got a good sponsor in Robert Friedland?
Marc-Antoine Audet: I think we have an excellent sponsor in Robert Friedland.
Ed Milewski: Yes, he’s legendary. And now, I see you started drilling again back in January.
Marc-Antoine Audet: That’s correct, and we are in it right now.
Ed Milewski: Are you drilling now?
Marc-Antoine Audet: Absolutely, and we just made a, one we press released that in mid, at the end of January; we intersected a very nice zone that was discovered using the Typhoon system that I was just showing on the video, and this zone, we’re going to follow up on it, because it’s a proof of the geological system that we are promoting here, and we intersected 37 metres of mineralization, and very good nickel, copper and palladium, platinum…
Ed Milewski: DO you always get those same metals when you find – ?
Marc-Antoine Audet: Yes. The association, the polymetallic aspect of the mineralization is the same regardless where we are in the system. So at the beginning of the system, let’s say, at kilometre zero here, and kilometre 20 or 25 where we have it at surface, we have always the same ration of mineralization an the components.
Ed Milewski: So I see you’re drilling at 6,000 metres in this program?
Marc-Antoine Audet: That’s the goal. That’s the goal, is to do about 6,00 metres.
Ed Milewski: So, are you drilling, like, a couple of hundred metres a week? Does that sound right?
Marc-Antoine Audet: Yes. We probably drilled about 400 metres a week, and these are the deep holes. Because what we are looking for is the source of this massive sulfite that we see at surface, but where it is at depth. And the Typhoon system give us education that we have anomaly at 900 metres, 1,000 metres from surface. So this is why we are doing a 6,000 metre drilling program; that might be just four or five holes, because we’re gonna chase the source of these massive sulfites at depth.
Ed Milewski: Now, do you have any – I understand Friedland’s a major shareholder.
Marc-Antoine Audet: That’s correct.
Ed Milewski: Are there any other, bigger institutions that are – because it sounds like you got a pretty decent market cap.
Marc-Antoine Audet: Well, we have Minmetals, China. It’s about 10 percent on Sama. They came in with us in 2012 and 2013, and when they came in, actually I was a little bit rough with them, I guess, because I asked them for double of the share price to come in and they said yes. So for twice, we had Minmetals China came in in Sama at a 100 percent premium to the market, that I was very pleased with that, obviously.
So, $4 million or $5 million at that time they injected in the company. But they are fantastic shareholders, because they also give us access to the technical people, geophysical team, and geophysical interpretation of the survey that we were doing. So, extremely good shareholder as an institution.
So Minmetals China, HPX, which is backed by Mr. Friedland, and at some point we had the World Bank with us for about five years.
Ed Milewski: And this core box, I just want to get this straight: this was from the drilling back in 2010?
Marc-Antoine Audet: This is the drilling from last year at Samapleu at the main deposit where we have already a resource.
Ed Milewski: Okay, okay. This is quite rich. This is quite rich.
Marc-Antoine Audet: This is very rich. This is as rich as you can get.
Ed Milewski: Exactly. No, I know. I know there was just a recent discovery that was announced on Friday, it was nickel, but it was like 0.26 nickel; there was some cobalt and platinum and palladium over big widths, but not in this category.
Marc-Antoine Audet: That’s right. We do have also what we called disseminated sulfites, to compare to massive sulfites. This is 100 percent sulfite; disseminated sulfite would be anything between 5 to 10 percent sulfites, and that will give something 0.2 percent or something like that.
Ed Milewski: Right, right, right, right, right.
Marc-Antoine Audet: We also have that at surface.
Ed Milewski: Yeah. So why is palladium so expensive now? Why is palladium much more expensive than platinum? I know –
Marc-Antoine Audet: I think there’s been a shortage of palladium in the market, and it is used in the catalyzer for the vehicles.
Ed Milewski: Yeah. And I think platinum is used for diesel. That’s what I’ve been told, and diesel is not so popular right now, so…
Marc-Antoine Audet: That’s correct.
Ed Milewski: Okay. So you’ve got cash, you’ve got sponsorship, you’ve got targets…
Marc-Antoine Audet: Absolutely. And we are on the execution phase. The target here is to find where are these reservoirs of massive sulfites that we see near surface. What we have at surface is small lengths here and there, but obviously it needs to come from somewhere. It doesn’t come from Mars, obviously, it has to come from the centre, and that’s what we are looking at.
Ed Milewski: Yeah, yeah, yeah, exactly. Okay. Well, we’re going to leave it there.
Marc-Antoine Audet: Thank you very much.
Ed Milewski: And I really appreciate you coming on. So once again, we got Sama Resources, ticker symbol SME, and Mr. Marc-Antoine Audet.
Marc-Antoine Audet: Thank you very much.
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