Source Exploration Corp. (SOP-TSXV)
August 12, 2011 Issue
The Most Powerful Name In Corporate News and Information
In an Underexplored Area of the Historic Las Minas Mining District of Mexico, Source Exploration Corp. is Well Positioned for Future Growth
E. Robertson, BSc., P. Eng.
Brian E. Robertson - Mr. Roberston's areas of expertise are wide
ranging and include executive management, exploration, mine development and
operations, evaluation of businesses and performing due diligence related to
projects, mergers, acquisitions and financing. Mr. Robertson has served as
President of Victory Nickel and Nuinsco Resources, and is currently a
director of Romios Gold Resources Ltd., Appia Energy Corp and Auriga Gold
Corp. He has extensive experience in gold mining operations in both North
America and offshore. This experience includes 21 years with Placer Dome
Inc. directing mining operations and development in Canada and South Africa,
as well as 7 years at Royal Oak's mines in British Columbia and
CEOCFO: Mr. Robertson, you have a long history in the industry; what attracted you to Source Exploration?
Mr. Robertson: Source Exploration is a very interesting company because the people involved are well recognized in the industry and have experience in different countries exploring for precious metals as well as other metals. Source is focused on precious metals. The company has an excellent gold – silver – copper property at Las Minas, Veracruz, Mexico, and we are continuing the search for other precious metals properties. It is well positioned for the growing strong interest in precious metals and junior exploration companies with strong management and good properties.
CEOCFO: What is happening at the various Source Exploration projects today?
Mr. Robertson: We are drilling at Las Minas. We started the drilling program in March and recently awarded an additional 5,000-meter drill contract. We are also doing a very extensive exploration program at the property that includes geological mapping, sampling and surveying of historical workings.
CEOCFO: What about the geology, and why did management at Source Exploration feel that these particular projects would be special?
The Las Minas area has a long history of mining that actually goes back
to the Aztec era. The Spaniards were there, of course, and between 1870
and 1910, there were approximately twenty mines operating in the area.
The mines were smaller scale operations focused on high-grade gold and
copper. They were direct shipping ore that graded 20 to 40 grams per
tonne gold and between 5% and 30% copper from the area. The other thing
that I found extremely interesting was that Las Minas is the site of a
very large skarn zone. The Mexican geological survey wrote a report and
they estimated that there are approximately 80 million tonnes of
mineralized skarn material in the Las Minas area. What intrigued me was
the fact that the earlier mining focused on higher-grade material, but
the larger tonnage lower grade mineralization was left behind because on
low metal prices and high mining costs due to inefficient technology.
Today, this same material is very attractive because of lower operating
cost due to modern mining methods and much higher metal prices. The
other thing that was very interesting was the fact that we have two
types of deposits at Las Minas. In addition to the bulk tonnage skarn
mineralization, there are also epithermal veins. These high-grade,
narrow vein gold/silver deposits carrying copper values were
historically mined for the gold content. So, it is certainly very
exciting geology. This largely unexplored area has remained very quiet
since mining operations stopped 1910. There has been no drilling done in
the area. We certainly see unique opportunities at Las Minas because of
the geology and the different types of mineralization.
CEOCFO: What about the security in Mexico?
Mr. Robertson: Security is a concern when working in Mexico. I personally go to all of the projects that we work on and visit them on a regular basis. I just came back from Mexico last week, having spent two weeks at Las Minas and other properties. My philosophy is if I am not willing to go into a certain area, then I am not willing to send my people there. Areas that we have worked in have been very good, in terms of security. We have never had any security problems in the Las Minas area or other parts of Mexico. We check the areas out and talk to local people and others before starting work. We not only make local contacts, but also other contacts to verify that the area is safe. There are obvious precautions you have to take, but there are precautions you take in any area when working abroad.
CEOCFO: What is the financial picture like for Source Exploration today?
We are in a very good position financially. We have approximately $3.5
million in our treasury, which is certainly ample to carry out the
exploration program that we are working on. We are also looking at
acquiring other properties, which is one of the key objectives that we
have at Source. We want to grow the company and will require additional
financing as we take on new projects.
Mr. Robertson: Our primary focus will be the exploration program at Las Minas We will be continuing the drill program and are moving the project forward to completing a 43-101resource estimate. We are looking at other properties in Mexico and elsewhere, with a focus on precious metal properties. We will acquire other properties and take them through all of the stages of exploration.
Mr. Robertson: We have an option to earn a 100% interest in the Las Minas project, subject to an NSR. The NSR is for 2.5%, with a buy-back provision for 1%.
CEOCFO: Do you do much investor outreach?
Mr. Robertson: We do a number of investor conferences as well as presentations to different financial groups and interested parties. We are also involved in the distribution of information through media sources and personal contacts. We also engage companies to assist us with investor outreach.
CEOCFO: In closing, there are many companies in your industry, why should investors pay attention to Source Exploration?
There are a number of reasons investors should pay attention to Source.
Firstly, Source Exploration has a very good property at Vera Cruz that
is currently being drilled off. We are seeing some very good early
results, and we just increased our drill program by an additional 5000
meters. We are adding a second drill to the program, so we are moving
that property forward very quickly, and will be generating news flow as
we receive drilling results. Secondly, we are looking at acquisitions,
so you will see more news on that front. Thirdly, we are well financed.
We also have people within management and on the board of directors who
are well recognized in the industry and have extensive experience in
Mexico. Lastly, we are focused on precious metals, gold and silver,
although, there is a significant copper mineralization at Las Minas that
could add a significant by-product credit.
The Las Minas area has a long history of mining that actually goes back to the Aztec era. The Spaniards were there, of course, and between 1870 and 1910, there were approximately twenty mines operating in the area. The mines were smaller scale operations focused on high-grade gold and copper. They were direct shipping ore that graded 20 to 40 grams per tonne gold and between 5% and 30% copper from the area… The other thing that was very interesting was the fact that we have two types of deposits at Las Minas. In addition to the bulk tonnage skarn mineralization, there are also epithermal veins. These high-grade, narrow-vein gold/silver deposits carrying copper values were historically mined for the gold content. So, it is certainly very exciting geology. This largely unexplored area has remained very quiet since mining operations stopped 1910. There has been no drilling done in the area. We certainly see unique opportunities at Las Minas because of the geology and the different types of mineralization. - Brian E. Robertson, BSc., P. Eng.
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