Lakota Resources Inc. (YLA)
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With well-established positions in Tanzania and seasoned management Lakota Resources is poised to take advantage of the excitement in gold
(TSX Venture: YLA)
Lakota Resources Inc.
Ste. 600, 15 Toronto Street
Toronto, ON, Canada M5C 2E3
George H. Breuler, Jr.
Chief Executive Officer
Interview conducted by:
View west from Ikina of artisanal workings,Bulyanhulu in background.
Lakota Resources Inc. ("Lakota") (YLA-TSX Venture Exchange) announced on November 28, 2002 that a tentative agreement has been reached with its Australian joint venture partners on the Ikina Reef licences in Tanzania, which will result in Lakota owning a 100% interest in this highly regarded gold property. The terms of the purchase agreement call for Lakota to issue 400,000 of its common shares for Spinifex Gold Limited's 45% interest in Ikina and to issue 222,222 common shares to Sub Sahara Resources NL for its 25% interest. The deal closed on March 17th, 2002.
The Ikina Reef property hosts a number of gold occurrences, which are being actively worked by local artisanal miners. More importantly, the 25 square kilometre licences adjoin the western boundary of Barrick Gold's Bulyanhulu mine and as such is situated on the strike extension of the Bulyanhulu trend which hosts Barrick's 18 million ounce gold ore-body by the same name.
Lakota controls some 53 square kilometres of prospective ground adjoining the northern boundary of the Ikina Reef property and with the addition of the above disclosed 100% interest in Ikina now has almost 78 square kilometres of prime gold exploration terrain along the north-western extension of the Bulyanhulu trend. The Company is pursuing offers for financing an aggressive exploration program on the package either on its own or in a joint venture partnership.
In addition, Lakota Resources Inc. and Explorations Minieres du Nord Ltee (MDN-TSX) have entered into an option and joint venture agreement whereby MDN may earn a seventy per cent interest in five prospecting licences (PL's) held by Lakota in the Tulawaka Area of the Lake Victoria goldfields of northern Tanzania. The PL's cover a total area of 204.3 square kilometres. MDN may earn their interest therein by making scheduled option payments and carrying out comprehensive exploration programs on each property
CEOCFOinterviews: Mr. Breuler, please give us a brief history of Lakota Resources.
Mr. Breuler: In 1995, we reorganized New Anthona and changed the name to Lakota Resources, with a property in the North West territories which we still hold. As time went on we learned about Tanzania, where we are currently actively involved in major exploration properties. Years back, I went to Tanzania with Sutton Resources to check it out. Sutton had a property with about a million and a half ounces. I was excited by what I found and the people in Tanzania were excited too. I started to realize, talking to people that were involved in the business, that this was just a scratch on the surface. We were able to pick-up numerous properties, meet people and make contacts. We took over about 50 prospecting licenses (PLs). Here we are today, with a vast amount of highly potential gold exploration plays all over the country, mostly in the Northern Lake Victoria gold belt. I guess we were way ahead of our time.
CEOCFOinterviews: Please tell us about addition of Klaus Eckhof to Lakota.
Mr. Breuler: Klaus Eckhof, a well known financier, with far-reaching contacts, joined Lakota as president. Klaus is a native-born German geologist, who lives in Australia and, among other endeavors, is managing director of Spinifex Gold. We met through Spinifex involvement with numerous projects in Tanzania. During the course of several meetings we realized the potential of Lakota because of its share structure and land position. Klaus is a man who makes things happen. I realized that with Klaus as president, Lakota would be in a position of strength. Lakota was ready to move to the next level and Klaus was person to make that happen.
CEOCFOinterviews: How has that decision played out?
Mr. Breuler: Three of our numerous properties that have the most potential are the Ikina Reefs, Tannor and Bemuda that are to the west and northwest of the Bulyanhulu property that has about 18,000,000 ounces of gold reserve. It is one of the largest ore bodies in the world. Spinifex and Sub Sahara, another junior company all had part ownership of the Ikina property. Klaus and I realized that if we were to put the whole property under one roof, it would maximize its potential and simplify the operations. It was better to have one owner instead of three. So Lakota made a deal with Spinifex and Sub Sahara to take over that project. Because of that, we are drawing interest from outside companies.
This is very exciting because the potential is just vast, especially when you look at the mineralization and trend of the Bulyanhulu ore. It is a tremendous property. There is also another property right in back of that one(Ikina) called the Bemuda. We have a package of 78 square kilometers that we are very excited about. There are also other areas in Tanzania, up in the North West territory, where we have gold properties that are being explored with our partner Explorations Minieres du Nord (TSX-MDN) in Quebec. We feel that the potential in Tanzania is beginning to get on track. Lakotas goal over the years was to put together a land package knowing that at some point it would literally be impossible to pickup anything. So weve established these land positions, kept them and worked them. Now with the money that we raised, we are doing work on each one to evaluate each property.
CEOCFOinterviews: Is the government in Tanzania helpful to Lakota?
Mr. Breuler: The government is superb; they have reenacted their Mining Act a few years ago and they made it incredibly interesting for outsiders to come in. They have a very simple tax structure; they are a third-world country with growing pains and they always look for help and advice from mining companies on how to change things. The government officials are very nice people. We were in contact with them for a long time and developed lasting relationships. They realize the importance of creating wealth in their country through jobs and infrastructure.
CEOCFOinterviews: With all of the interest in gold these days, is it easier to raise the money and get the partners?
Mr. Breuler: A year ago it would have been very difficult to talk to anyone about raising money. Today, it has changed 100%. Tanzania is one of the top countries in the world for an exploration gold play.
CEOCFOinterviews: Tell us about your new website.
Mr. Breuler: For
the last couple of months we have been working on a new website to reflect all the
activity at Lakota. The website is lakotaresources.ca. We were particular about how we
wanted it set up; we want to present information about Lakota to the investing
CEOCFOinterviews: You have told us about Klaus Eckhof. Please tell us about the rest of the management team.
Mr. Breuler: Stanley Robinson, our Exploration Manager, has a long history of exploration experience and worked with numerous projects in Canada and Africa. He worked for Internatioal Gold/Ashanti Goldfields in Ghana and the Burkina Faso (West Africa) for 6 years then joined Pangea(Barrick) in Tanzania. He has been with Lakota for two years now and has taken over all the projects. He has been nothing but a blessing and his experience working in mining camps for twenty-eight years is just incredible.
Then there is Jack Tindale, who is our treasurer and secretary. He is the back-bone of the company.
I guess at one point, I was the most important asset, bringing the company together and financing it. I worked on Wall Street and with numerous mining companies. I bring an understanding of markets and financing and raising money, as well as interpretation of what markets are. I think that is very important because many people do not realize how to equate value to markets.
CEOCFOinterviews: How do you reach potential investors and potential partners?
Mr. Breuler: For all practical purposes, Lakota has been successful through word-of-mouth. We have been involved with many people in the gold business market over the years; we have known many people across Canada and the United States. People around here have followed us through research. There have been write-ups and recommendations. We have created an interest, and shareholders observations, mainly through that avenue. There are not many big new projects and Lakota has an excitement. Gold has always been a mystery and we have so much happening that people realize that this is something they would like to be part of. The gold market was dead for years; we were fortunate to see the vision that it would change and excitement would come back into the market. We believe that gold is an up-trend and that junior companies are going to benefit greatly if they do the right projects and have the right fundamentals.
CEOCFOinterviews: What should shareholders and potential investors know about the company?
Mr. Breuler: What has happened in the gold market in the last couple of years has been exciting. Barrick bought Sutton to get into Tanzania and then bought other properties from another South African company; they took over Pangea. There is a lot of activity in the area. If you have an asset in Tanzania and you develop it, people are interested in taking over the property. Not only is Lakota an equity play to build assets and develop properties, but it is also a major take-over play. Being structured the way we are, with only around thirteen million fully diluted shares, makes us extremely interesting because we are not over capitalized. What we have is going to be put into a small number of shares. When Sutton was taken over, it was the big kick for Tanzania to get going. Overall, Lakota has many properties, in the right areas, in the right country, at the right time. We have done our homework, and are looking for a partner to go forward.
It seems that as more exploration is being done, more gold is being found. The other day, a dowser who stopped at a property to look at it, found some miners making money on gold, which no one knew was there. It just so happens we own that property. When you have the right amount of money to do justice to your product, you have the key. Because of Klaus coming aboard with his abilities, we were very excited. He has brought this company to the next level. We are trying to develop a partner to become involved with Lakota to help and finance this company further. I am personally excited about what we are doing and the more I get involved, the more I realize that Lakota is very fortunate, being in the right place at the right time. As far as our properties, we havent randomly bought licenses through Tanzania, we did it on a very sophisticated basis. We tried to be where gold workings were, and we are very proud of how we established the locations of the properties.
Many people who are starting to research Lakota are excited about the Ikina property. We feel as this develops it is going to put Lakota on the map. We have well over fifty other properties that have potential. We are happy we picked the right country; gold markets are exciting.
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