2008 Interview with: Golden Goliath Resources Ltd. (GNG-TSXV), President and CEO, J. Paul Sorbara - featuring: their gold and silver potential of an historic mining camp located in the world famous Sierra Madre Occidental Mountains of northwestern Mexico.
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Golden Goliath Resources Is Focused On
Finding New Resources Of Gold And Silver In The Past Producing Uruachic
Mining Camp Located In The Sierra Madre Region Of Northwestern Mexico -
Owning An Entire Mining District As Well As The Mining Properties That Go
With It 100%, Gives Golden Goliath Resources An Edge In Bringing In Joint
Mr. Sorbara, President of the
Company, completed his M.Sc. at the University of Toronto in 1979, studying
collapsed caldera structures in Canada's Northwest Territories. Following
graduation, he conducted Caldera Reconnaissance Programs for Cominco Ltd. in
both British Columbia and the Sierra Madre Occidental range in Northern
Mexico, spending a number of years in Cominco's Guadalajara office. Changes
in the foreign investment laws made investment in Mexico feasible, and Mr.
Sorbara was one of the first Canadians to go there. With help from his
numerous Mexican geological contacts, he started his own private Mexican
exploration company, Minera Delta S.A. de C.V. which after eight years he
took public as Golden Goliath Resources Ltd.
Golden Goliath Resources Ltd. is a junior
exploration company listed on the TSX Venture Exchange (symbol GNG). The
Company is focused on exploring and developing the gold and silver potential
of an historic mining camp located in the world famous Sierra Madre
Occidental Mountains of northwestern Mexico. Unlike most juniors, which have
an option to earn an interest in a single property or a few scattered
properties in various areas or countries, Golden Goliath controls an entire
old mining camp, or district, that covers an area of 15 by 25 kilometres,
with numerous past producing gold and silver mines dating back to the time
of the Spaniards. Golden Goliath's Uruachic claims are owned 100% by the
Company and are fully paid for with no property option or purchase payments
Mr. Sorbara: “The vision of Golden Goliath is to find new recourses of gold and silver in Mexico. We’re operating in the Sierra Madre region of northwestern Mexico.”
CEOCFO: What do you like about Mexico?
Mr. Sorbara: “In general, Mexico has a very low political risk. Therefore, it’s an excellent country to do business in, especially geological exploration and the reason for that is that it’s an incredibly rich and under explored country. The Sierra Madre town mountain range stretches across about 800 miles of northwestern Mexico and since the time of the Spaniards, that mountain range has produced about 40 million ounces of gold and approximately 1 billion ounces of silver. Our operation is right in the middle of that trend. We’re surrounded by other mines and mining companies that are very active in that region as well. It is probably one of the best areas on the planet to look for gold and silver.”
CEOCFO: Please tell us more specifically about your projects?
Mr. Sorbara: “Our project is centered on a little town called Uruachic, which is a mining town that was established in 1736 by two Spaniards searching for gold and silver for the Spanish crown. There are probably around 100 old silver and gold mines that were in operation between 1736 and 1925, about the time of the Mexican revolution, within the Uruachic area. Our main property package covers all of that. It is essentially a 25 by 15 kilometer area. It is a collapsed caldera geological setting, which is very favorable for exploration. It has an incredible history of production and very high grades of silver and gold as well as bi-products of lead and zinc. I was led there because of my background in caldera studies, so I have a very specific reason for being there. Outside of the Uruachic camp, we also have two outlying properties; one is a lead/zinc/silver target that’s very similar to two very large mines in northern Mexico. They are lead zinc and silver mines that have produced about 60 million tons of 15% lead zinc with 150 grams of silver. We have another property, which is a silver property just at the edge of the Sierra Madre that we acquired by staking. It has extensive old workings and the dumps attest to significant production, but there are no old records. “
CEOCFO: With so much area to choose from, how do you decide what area to focus on?
Mr. Sorbara: “That’s a very good question. I’m trying to do exploration the way the major companies’ do it and the way I was trained when I worked for Cominco Limited. We started out with a large area and we conducted surface geological mapping, geochemical and geophysical surveys as well as identifying and starting to investigate, rehabilitate, map and sample the old workings. It took us several years to narrow our focus down to the areas we are currently working. Right now we’re drilling in two different areas within the Uruachic camp. It’s a big job, a big area, and it takes a lot of time, but we hope the reward will be very large as well.”
you finding it difficult to find the people and equipment you need with so
much activity in general in the industry?
CEOCFO: What are the challenges, if any, that you see going forward?
Mr. Sorbara: “The big challenge right now is not so much the geology or exploration; it’s the overall challenge of the marketplace since the time of the crunch a year ago and the mortgage crisis. People have been shell shocked or they are afraid, so they’re pulling their money out of the market. The gold and silver prices are extremely good, even though gold has come down $100 in the last month or so. But even so, it’s well over $800 and silver’s around $16, and those are great prices. For most of my career, which dates back to 1979, the target price we always used for gold and silver were $400 gold and $7.00 silver, and we’re more than double that right now. Yet the TSX Venture Exchange index (and we trade on the TSX Venture Exchange under the symbol of GNG) has been declining dramatically for the last year. People are afraid to invest; they’re pulling out their cash and sitting on the sidelines, looking. You can put out big results right now, but it doesn’t have a lot of effect on the marketplace.”
CEOCFO: Maybe not immediate interest but it doesn’t mean you are not on peoples’ radar screens!
Mr. Sorbara: “Absolutely, and we’re just carrying on, waiting for better times to come along.”
What is the plan going forward; please give us a bit of a timetable?
CEOCFO: Why should investors be interested; what makes Golden Goliath stand out of the crowd?
“Golden Goliath stands out because instead of just having an individual
property or two, we have an entire mining district as well as two other
mining properties. We own them all 100% and they’re fully paid for. There is
a history of production on the properties, so we have a great property
package, and we have very strong investors. Everyone who is looking to
choose a junior mining or exploration company should do their due-diligence.
In our case Sprott Asset Management and Agnico Eagle Gold Mines have
essentially done the homework for the investors that don’t necessarily have
the time to do it themselves. Since Sprott and Agnico both increased their
holding in us in our last financing and they had that kind of faith in us,
then the small investors should too. We also have a very strong management
team made up of geologists, engineers, and business people. We have about
$2,600,000 worth of cash in the bank and we have multiple drills turning on
the property. We have everything going for us that we need. We’re at a great
place and it’s really just a matter of time before we come up with what
we’re seeking and the market is receptive.”
“In general, Mexico has a very low political risk. Therefore, it’s an excellent country to do business in, especially geological exploration and the reason for that is that it’s an incredibly rich and under explored country. The Sierra Madre town mountain range stretches across about 800 miles of northwestern Mexico and since the time of the Spaniards, that mountain range has produced about 40 million ounces of gold and approximately 1 billion ounces of silver. Our operation is right in the middle of that trend. We’re surrounded by other mines and mining companies that are very active in that region as well. It is probably one of the best areas on the planet to look for gold and silver.” - J. Paul Sorbara
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