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Nayarit Gold And Its Experienced Team Is
Focused On Developing Their Very Attractive Asset That Already Has
Infrastructure In Place Along With The Backing Of The Government And People
In The State Of Nayarit, Mexico
Metals/Mining
Gold & Silver Exploration
(NYG-TSXV)
Nayarit Gold Inc.
36 Toronto Street, Suite 850
Toronto, Ontario M5C 2C5 Canada
Phone: 647-477-6264
Colin P. Sutherland, CA
President and CEO
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
Published - January 11, 2008
BIO:
Colin P. Sutherland, CA
President & CEO
Mr. Sutherland has over 10 years of business of professional experience. Mr.
Sutherland was previously a Director and Chief Financial Officer of Gammon
Gold Inc. and Mexgold Resources Inc. During his tenure, Gammon’s market
capitalization grew from $300 million to in excess of $2 billion, and
successfully took the Company from an exploration stage company to
commercial production. Mr. Sutherland has extensive experience in the
financial markets, and successfully raised in excess of US$400 million for
the development and construction of the Gammon assets. Mr. Sutherland is a
Chartered Accountant and a graduate of Saint Francis Xavier University.
Company Profile:
Nayarit Gold Inc. is a
Canadian gold and silver exploration company formed in May, 2005. The
Company controls over 102,000 hectares of mining concessions in the State of
Nayarit, Mexico. Shares of Nayarit Gold Inc. are listed on the TSXV exchange
under the symbol “NYG”
Management’s strategy is to build Nayarit Gold Inc. into a profitable
resource company and maximize shareholder value through exploration of its
high quality mining properties in the State of Nayarit, Mexico. The Company
is committed to working with the government and people of Mexico to achieve
a modern and sustainable mining region. The Company follows best practices
in health and safety, environmental and community engagement.
Nayarit Gold Inc.’s management team consists of highly experienced mining
and financial professionals. The Company has acquired concessions in a
historic mining district and applies the best available exploration
technologies to prioritise and drill targets. The Company is focused on its
Phase One drill program, and will apply a systematic drill program to its
high quality asset.
CEOCFO: Mr. Sutherland, what attracted you
to Nayarit Gold?
Mr. Sutherland: “The biggest thing that
attracted me to Nayarit Gold was the quality of the asset that the company
had in Mexico, and the team that had been developed over the last couple of
years. When I joined in June of this year, I spent time with the team in
Mexico and reviewed some of the opportunities that were on the property. I
was looking for was a property that had district-like potential and a
significant number potential targets on it. It showed excellent potential,
it had excellent infrastructure for future construction of a mine, and the
land package was attractive from an exploration standpoint. The company has
a great asset; it is just a matter of now being disciplined and developing
the asset over the next couple of years.”
CEOCFO:
Will you give us more detail about the property?
Mr. Sutherland: “The property itself is
in the southern part of Sierra Madre Belt in Mexico, located in the State of
Nayarit. Our office is located in the town of Acaponeta where we have a team
of seven. The southern part of the Sierra Madre Belt has largely been
underexplored over the last number of years and we now see a resurgence of
mining companies applying more modern mining techniques to the area. The
previous management did an excellent job of consolidating a very large
property in a very prolific area. We have 102,000 hectares, which is almost
250,000 acres, and we see strong evidence of historic mining in various
areas, and history tells us that the Spanish mined in the area in the 15th
and 16th century, and over the last century we see strong
evidence on our property of historic mining activities. The advantages that
the Canadian or American companies have coming into the area is access to
capital, our ability to apply modern mining techniques, and employ drill
rigs to the property. The most exciting thing for me was the size of the
property; we outlined about six priorities on the property right however we
have additional targets that we are going to develop over the next number of
years.
I believe we have accomplished our objectives since we commenced in June/07
to where we are today. For instance, on Minas de Animas, we have drilled
seven holes and have seen what we believe are exceptional grades, such as
29.19 g/t gold equivalent over 5.42 metres, 10.03 g/t gold equivalent over
6.32 metres, and 9.99 g/t gold equivalent over 9.2 metres.”
CEOCFO: Is
it difficult to get the equipment that you need in the current exploration
boom?
Mr. Sutherland: “With climbing commodity
prices it has made it very difficult. Having said that, we have two full
time drill rigs on the property and seemingly have been immune to the
difficulties encountered by others. We have an excellent relationship with
our current driller; he is committed to our program and growing with the
company. While it is difficult; it is not impossible to get the proper
equipment and consumables. Our objective is to increase the number of rigs
on the property over the next year and continue to develop the property.”
CEOCFO: Is
this 100% owned by Nayarit?
Mr. Sutherland: “Yes it is, except for
146 of the 102,000 hectares that we do have. All the others are 100%
titled. That is an advantage that we have, we don’t pay any royalties to any
of the owners. We are more or less just committed on developing the area and
then getting to the point that once we get to a resource calculation we can
then make a production decision for what the next steps are for the
company.”
CEOCFO: You
announced in Sept/Oct what you have found so far; please bring us
up-to-date.
Mr. Sutherland: “When we identified the
six targets on the property, we didn’t prioritize and say this is the top
and this was the sixth; we think they are all very exciting. The first
target is called Minas de Animas, and the news flow to date has been from
this area. We have encountered extremely positive results from the area
including 29.19 g/t gold equivalent over 5.42 metres, 10.03 g/t gold
equivalent over 6.32 metres and 9.99 g/t gold equivalent over 9.2 metres.
We are very excited with the initial results,
and have moved to the other targets on the property. If we continue to see
the results that we have seen to date, we believe we can quickly get to a
resource calculation and demonstrate the potential of the district.”
CEOCFO:
What is it like in Mexico these days. as far as government, environmental
and regulatory issues?
Mr. Sutherland: “My personnel view is
that you can’t be in a better country; the government has been very
progressive and inviting to foreign investment. The labour market is quite
skilled, and the professional geologists we have working on the project are
world-class. The local communities have embraced our activities and have
worked closely with us in partnership. We have established an excellent
working relationship with the local people, municipalities and government.
We want to focus our growth initiatives on Mexico.”
CEOCFO:
What is the financial picture at Nayarit
Mr. Sutherland: “We current have
approximately $1.4 million dollars in the bank; our current burn rate is
about $200-$250 thousand a month with the drill rigs going which would
suggest that we will get through our Phase I program to be completed by year
end. We would look to raise additional funding in 2008 to fund a Phase II
program that would get us to a resource calculation. We are in a good
position now; the access to the capital markets is quite robust given the
increase in the commodity prices. Most financial institutions will look at
the record of accomplishment of the management team, and we feel our
previous accomplishments speak for themselves. We have in the past
successfully raised funding to build mines. I am confident we can continue
to fund the programs, and create shareholder value. If you have a good story
and you stay disciplined in your approach and are getting the results from
the area, I believe the appetite for people wanting to invest in a company
such as ours that has a significant amount of potential is accessible.”
CEOCFO:
Please tell us why potential investors should pick Nayarit out of the crowd,
and please define your motto: Value and Vision.
Mr. Sutherland: “If you look at the key
drivers and reasons to invest is that we do have an experienced management
team. Previously I was with another mining company and we took that mining
company from this grassroots state to a market cap of in excess of $2
billion. We were located in Mexico so we have the contacts and experience in
the country. We built it before and if you have the right property, which we
do, we are confident we can do it again.
Our commitment is
to growth and value. On Value and Vision, we believe at current share prices
we are undervalued, we have a significant amount of blue-sky potential, we
have exceptional results from our initial drill program, and we have the
experience in building companies and creating shareholder value. When people
look at our company vs. others, I think that the underlying theme is that we
have the team, the experience, and a property that is in a prolific district
with a significant amount of potential. If you are a long term shareholder
and want to get involved in an exciting story what we believe has a
significant amount of growth potential, then I think you should take a hard
look at Nayarit Gold.”
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