Miramont Resources – Massive District Scale Copper and Gold Potential

William (Bill) Pincus, the President and CEO of Miramont Resources, which is a exciting, new company listed on the Canadian Stock Exchange, sits down with Maurice Jackson of Proven and Probable to discuss the companies endeavor to procure two projects located in Southern Peru, which is very mining friendly, called Cerro Hermoso and Lukkacha respectively. The thesis that Miramont will attempt to prove in Cerro Hermoso is a precious metals project and Lukkacha a porphyry copper both which are believed to host massive district scale potentials.  Miramont is attempting to purchase these project with a current Private Placement financing.  Miramont has a proven, experienced Board, Management and Technical Teams that is searching for elephants in elephant country, as Peru is the 2nd largest producer of Copper and Silver, as well as the 6th largest producer of Gold.

 

AUDIO:

TRANSCRIPT:

Maurice Jackson:

Welcome to Proven and Probable, where we focus on metals, mining and more. I’m your host Maurice Jackson. Our guest has a proven pedigree of success spanning over 40 years, specializing in exploration and development with his most recent success at Esperanza Resources. He is here today to discuss his newest exploration endeavor in Peru with a company that is already generating a lot of excitement for speculators in the space.

I’m speaking of Miramont Resources, trading on the CSE symbol M-O-N-T.

Joining for us a conversation is the President and CEO of Miramont Resources, Bill Pincus, Thank you for joining us today, sir.

Bill Pincus:
Well, thanks for having me, Maurice.

Maurice Jackson:
Before we begin, allow me to covey to our listeners that Miramont Resources is a sponsor of Proven and Probable, and that we will have a position in Miramont Resources in the next 30 days for the virtues we will convey in today’s message.

Mr. Pincus, for first-time listeners, please share: Who is Miramont Resources?

Bill Pincus:

Miramont Resources is a newly organized exploration company, and we are in the process of acquiring two new projects in Peru. One is called Luckkacha. It’s a copper porphyry prospect. The other is Cerro Hermoso, which is a gold-silver prospect. Both are extremely exciting to us, and we think they have extremely large potential.

Maurice Jackson: 

Now where are you domiciled?

Bill Pincus: 

Well, the corporation is a BC, British Colombia corporation, so that’s our domicile.

Maurice Jackson: 

Okay. And does Miramont Resources currently have any projects?

Bill Pincus:

We do have a small project in Quebec. Pardon me, in Ontario. But it’s inactive at this point. Of course, with the acquisition of the two new projects, that will be our main focus.

Maurice Jackson:  

Now what is the thesis that Miramont Resources is attempting to prove?

Bill Pincus:

Well, quite simply, that the two principal prospects that we have, Lukkacha and Cerro Hermoso have the potential to be very large deposits. The cliché is that we are hunting elephants in elephant country, and I suppose our thesis is that we’re very good elephant hunters.

Maurice Jackson:

Well said. You know, your expertise and success throughout your career has been in Central, in Latin America, and Miramont has identified two exciting projects in a world-class belt in Peru that you believe present a deep value proposition for shareholders. Now before … you know, discuss the projects, as a speculator, emerging markets can be quite irrational. Why was Peru selected to test your thesis?

Bill Pincus: 

Well, there are a number of reasons. First and foremost is, what can only be described as an incredible mineral endowment. Peru is a major mining country. It’s the second largest producer of copper, second largest producer of silver. I think it’s fifth or sixth in terms of gold. Major, major mines there. The history of the country is based on mining.

Second, and I suppose this is more why me. I’ve had quite an involvement in Peru. I’ve been working there since 1991. I lived there in the mid-1990s with my family. I feel very comfortable in the country. I know how it works. I know how to do business there. I have lots of contacts, and I’m also fluent in Spanish. I also like the food there, and the people.

Maurice Jackson:

Well, these are critical intangible and tangible assets that you bring to this new endeavor. And I concur that you selected the opportune location to test your thesis. Take us to the southeastern tip of Peru, near Bolivia and Chile, and let’s discuss two projects that Miramont is seeking to procure, which have three unique and similar attributes.

 

Bill Pincus:  

Sure. Well, our two projects, Cerro Hermoso and Lukkacha as you said, are located in southern Peru. And what they have in common are three characteristics. The first is, they’re in very good neighborhoods. And by that I mean, they’re surrounded by other projects, other deposits, other mines, of similar geologic characteristics, and that are very, very large.

The second characteristic is just what I mentioned, that these prospects have potential to be extremely large mines. In regards to Lukkacha, we’re looking at a porphyry copper deposit. Our neighbors are, you know, billion ton deposits, with pretty good grades. One per cent or more when they initially started mining. Of course, some of them had been in production for over 50 years.

Cerro Hermoso, the geologic model we’re using, is based on the nearby San Gabriel project by Buenaventura. That has 7 million oz. of gold-equivalent in their resource.

And then the third characteristic is that these are new prospects. They have not been drilled. They have not been looked at before. These are newly identified and, you know, the potential is all there. They’re not retrands that you often you see in every new mining cycle projects that, you know, keep coming back up. These are new projects.

So those are the three things that I really like about these, you know, characteristics that they have in common.

Maurice Jackson:

Now, Bill, this sounds quite interesting. Introduce us to the first of two projects: Cerro Hermoso.

Bill Pincus:  

Cerro Hermoso is a precious metals project. It’s located in southern Peru as you might see on a map in the presentation. What I consider to be in a very good neighborhood, where maybe about 10 kilometers from Silver Standard’s Berenguela Project where nearby the operating coppermine called Takasa, and most important for us, because we think it’s the same geologic model, we’re about 50 kilometers from Buenaventura’s San Gabriel deposit, which contains at this point, seven million ounces of gold equivalent.

What I like about Cerro Hermoso is that it’s a very large, very energetic system where we see different styles of mineralization that have manifested themselves in different ways depending on the lithology or the host structures. Historically, it had been mined up until 1992 by Minsur in a series of high-grade veins that peripheral to the main volcanic vent or volcanic neck that we think is the principal feature for mineralization. This volcanic neck, what makes it … the technical term is diatreme breccia.

Basically, it’s the neck of a volcano where you had multiple episodes of eruption and collapse, eruption and collapse, eruption and collapse. This has allowed a long time for hydrothermal solutions to work through the ring fractures along the perimeter of it, where the Santa Barbara vein is, as well as to precipitate mineral within that body of the diatreme itself. Really, probably in microfractures, yielding what we believe will be a disseminated, large bulk tonnage deposit.

Maurice Jackson:

And Bill, let me interrupt right here. Is that volcanic pipe, how long is that?

Bill Pincus: 

Well, it’s 1.4 kilometers in diameter. To depth, I don’t know, but it probably goes, you know, quite a ways down, you know, thousands of meters. But the bottom has never been found.

Maurice Jackson:

Yeah. That’s pretty expansive there. Now let me ask you this as well. Talk to us about the scale. How large is this project?

Bill Pincus: 

Well, as I say, the comparison we like to make, at least in terms of science and geology is the San Gabriel. Another deposit, very similar geology in a different location is GoldCorp. Deposit in Mexico. In terms of the volume of rock, they have two diatreme breccias which together, about the same volume as our diatreme breccia or volcanic neck. They’re producing a few hundred thousand ounces of gold a year plus, I believe it’s 20 million ounces of silver. So time will tell, but that’s sort of the potential we’re chasing after.

Maurice Jackson:

Now did Miramont strategically identify this project based on the success of Santa Barbara and the Pocomorroa mine?

Bill Pincus: 

Pocomorro is one of the nearby, you know, vein mines that sort of brim the area. The Santa Barbara was the principal mine. This was actually brought to us by this group Puno Gold who we are in the process of acquiring. And they identified it based on previous reconnaissance within the whole, this whole region. So yeah, they’re looking at the nearby mines, and they notice this breccia. They saw some of the … they were able to find some of the work that Minsur had done earlier, and obviously got quite excited by it.

Maurice Jackson:

Now is Miramont able to explore year-round at this location?

Bill Pincus:

Yeah. That’s not a problem down in this part of the world. You have the rainy season, the dry season. But we have very good access. There’s a paved road that actually borders the project. So we don’t see the rainy season as being too much of an impediment to our activity down there.

Maurice Jackson:

And speaking of activity, what’s currently going on there?

Bill Pincus: 

Well, right now we’re completing a detailed mapping program. We’re preparing the application for a permit to drill. That will take us probably two or three months honestly to get that. In the interim, we’ll run an IP program and we would hope to be ready to drill early next year.

Maurice Jackson:

And is that the goal for the remainder of the year?

Bill Pincus: 

Yes, it is. Absolutely.

Maurice Jackson:

Now you’ve given us the pros. What of the cons for Cerro Hermoso?

Bill Pincus:

What are the cons? You know, I guess this is a good chance to you know, point out that this is an exploration project. And exploration does carry high risk. As far as we’ve taken this, we’re very, very excited by it. You can see this is a large system, but until we drill it and you know, outline a economic resource, there is that exploration risk with all projects.

Maurice Jackson: 

All right. Switching gears. Now moving closer to the border of Chile, and remaining in the southeastern tip of Peru, let’s discuss your second project, equally important, Lukkacha, which Miramont believes may host a porphyry copper system. But before you do, Bill, can you share the supply and demand fundamentals for copper?

Bill Pincus: 

Well, you know honestly, I don’t have those at my fingertips. I know as we’re speaking, copper is reaching new highs over the past two or three years. Copper is your classic industrial metal, and when economic activity increases as finally on a worldwide basis we are seeing increased activity in China and India and Europe and, of course, here in North America. That drives the price of copper. I think one interesting aspect of the whole copper supply-demand scenario is that you know, as we move towards a non-carbon world where electric cars, whether it be the Tesla or whatever, are becoming more and more popular, and governments are going to be requiring people to convert over, the average electric car uses three times the number of pounds of copper than a conventional automobile. You know, we’re talking 20 pounds in a conventional automobile, up to 70 pounds in a electric vehicle. Multiply that by the number of cars in the world, and you a pretty large new source of demand for copper.

Maurice Jackson: 

You know, I referenced that question because most investors in the space, and/or speculators I should say, they’re gold-centric and don’t know the thesis behind copper. So I want to as you, what has Miramont so excited about Lukkacha?

Bill Pincus:

Well, once again, Lukkacha is an elephant country. It has … it’s a … undrilled project. It was only recently identified within the past 10 years by a local prospector who we’ve re-acquired it from. And what just gets me excited is that,  as far as we’ve explored this, we’re getting all of the signals, and all of the evidence of a major system that we would expect to see. A very large footprint. We have alteration that is typical of these type of deposits over an area of close to four square kilometers. The alteration we’re seeing is just classic in terms of the type of … in terms of this copper porphyry system. We see a coincident copper anomaly over this alteration.

And probably the most significant thing to me is, the intensity of the veining and the structures that we see. Classically, in a porphyry system, the mineral occurs in what’s called a stock work of veins, which is just a network of crisscrossing veins.

Wherever I look on the Lukkacha property, I see very, very intense stockworking. And once again, what that indicates to me is a long-lived system. The intensity of the stockworking is directly related to the intensity of the hydrothermal activity and the duration of the hydrothermal activity. And it just says incredibly intense stockwork veining indicates to me that there was a lot of solution moving through this deposit. And it’s up to us now to map it out and determine new drill targets and drill it, and hopefully find a very significant new copper deposit.

Maurice Jackson:  

Now, how many hectares is Lukkacha?

Bill Pincus:

4,400 hectares. We are bounded on one side Anglo-American as an active drilling project. We know they’ve come up with something. But we don’t know what it is. And then on the other side, we have another major who’s been doing some work as well. We’d obviously like to expand our claim holdings if possible, but we have some very good neighbors there. And you know, maybe eventually we’ll learn to cooperate with them. But first, we want to find out what we have.

Maurice Jackson:

You know, Bill, this is quite intriguing. You’re talking about a world-class copper-producing district, and Peru’s the second-largest producer of copper in the world. Talk about being in the right place at the right time.

Bill Pincus: 

Well, you know, most definitely, southern Peru produces a tremendous amount of copper. And then of course, just south of us is Chile, which I guess is the number one copper-producing country in the world. And some of the largest deposits in the world are just south of us. We have Chuquicamata I believe they did mining there for over a hundred years. I believe that’s the largest open pit in the world. Further south, you had deposits like Es Condida I don’t know what their production was, but their grades were, some of the early days of mining, they were mining 4-5% copper. I believe the great has dropped down, but they’re still probably mining a percent of copper, which by today’s standards, is extremely high quality project.

Maurice Jackson:  

Now is Miramont able to explore year-round at this location as well?

Bill Pincus:  

Yes. We’re a little lower down. It’s a little bit more arid. That should not be any real issue for us.

Maurice Jackson:  

And is it currently active?

Bill Pincus:  

We’re … we have a fairly low level of activity. Currently we’re focusing on Cerro Hermoso. What we need to do here is Lukkacha … It will take us the next year, is we have to map in detail. We have to do a lot more sampling. And we will want to run geo-physical program, probably a combination of induced polarization and ground magnetics and these type of deposits have a fairly typical geo-physical signature. So that’s what we’ll be looking for before we can begin identifying drill targets.

Maurice Jackson:

All right. What is the relationship with the communities, and the local and federal governments for both projects?

Bill Pincus: 

Well, as I mentioned in Cerro Hermoso, we’re on private ground so we’re not required to have any community agreement. There are indigenous people in the area. It’s a mining area, and so far, we’ve gotten along great with you know, the local people.

Down in Lukkacha, the surface is owned by an indigenous community, so we are required to you know, reach an agreement with them for the use of the surface. The preliminary discussions have began. We know that they’re working with Anglo-American, who is drilling just adjacent to us. Once again, we haven’t seen any problems, you know, it always takes time to introduce yourself to the community for them to gain confidence in you, but so far, we see a pretty green light.

Maurice Jackson:

All right.

Bill Pincus:  

And I should mention one other thing that’s important, in respect to Lukkacha. We are in an area close to the border where the government takes a particular concern when a foreign company is operating, and their concern is security. As I say, they’re close to a border. So they, you know, basically a security review. It’s an extra layer of permission that we need. Within this region, I believe there’s something like 31 other foreign companies and, not just mining projects, but gas pipelines, and agricultural projects that have received this permission. So we don’t see it as a major concern, but it is a process that we have to go through.

Maurice Jackson: 

All right. Mr. Pincus, we’ve discussed the latent material on the ground. Let’s talk about the most important asset: the people. What you can tell us about the Board of Directors?

Bill Pincus: 

Well, I think we’re going to have a very strong Board of Directors. I think our Chairman is a gentleman named Quinton Hennigh He’s a geologist by training. He’s worked for some of the largest companies, Newmont and others. More recently, he’s been active in the junior space. Very talented geologist. And also one who really understands the junior space very well. Another one of the directors is a gentleman named Peter Drobeck. Pete is a, you know, I’ve known him for abut forty years. And he’s one of the best geologists I know, and he’s the one who put together these two properties. We also have Jerry Shields. Jerry is a lawyer, so we need someone to balance the geologist on the board of directors. And finally Tyson King. You know, more of a financial background, understands markets and issues like that, and I think brings a unique balance to the Board as well.

Maurice Jackson:

If you allow me to interject, Bob Moriarty, the founder of 3-2-1 Gold, and 3-2-1 Energy. I believe gave the highest praise you could give a geologist when … and I’m referring to Quinton Hennigh He shared, he’s conducted over, I believe, 400 sites visits. And he believes he’s best he’s ever seen. So it’s quite a compliment to have Dr. Quinton Hennigh on the Board of Directors.

Bill Pincus: 

Oh absolutely.

Maurice Jackson:

And I’ve had an opportunity to meet him as well. Please tell us about Bill Pincus, the CEO. What makes him qualified for the task at hand?

Bill Pincus:

Well, you know, I made some mention right at the start of this broadcast, my long experience in Peru. I’ve been in this business, well, for over 40 years now. I’ve been in the exploration and development side. I’ve worked for major companies. I’ve been in the junior space. I used to run a company called the Esperanza Resources and we made two discoveries, one in Peru that we sold to Silver Standard, another in Mexico that is now in the hands of Alamos Gold. I mentioned I speak Spanish fluent, involvement in Peru. I think what makes me more qualified right now, particularly in an exploration company, is you know I have a good eye for identifying good prospects. But mostly the thing that turns me on is, going out there, banging on the ricks, trying to work out the puzzle with the our team of geologist and what really turns me on is when that drill is churning away, and seen what’s coming out of the drill hole. That’s what excites me, and that’s what my whole career has oriented me towards.

Maurice Jackson:

What can you share with us about the technical team?

Bill Pincus:

Well, we are building that team right now. We have in-country, our project geologist over at Cerro Hermoso, is a Peruvian geologist named Johnny Vargas. Known him for about a year now, and he’s … jeez, he’s just a great geologist. He’s one of these guys who … wants nothing to do with the office. He’s happiest when he’s out in the field, mapping and trying to puzzle his way through what’s going on.

We’re building team that have another geologist in mind for the Lukkacha project. We have great support from guys like Qinton Hennigh and Peter Drobeck, and you know, over the next few months, we will be building up our team. But I think with my contacts in Peru that we’re going to get the best of the best.

Maurice Jackson:

All right. Let’s discuss some numbers. How much cash, and cash equivalents do you have?

Bill Pincus: 

Well, before I answer that question, perhaps I should explain the transaction and the financing that are happening in parallel with each other. And Miramont is a public entity that trades on the CSE. We are in the process of acquiring Puno Gold, which is a private company. And they of course are the ones who currently own the two main deposits we just discussed. Once we complete that acquisition, and we will also simultaneously close the financing. We’re out there right now, looking to raise $5 million. Once that is closed, we’ll have, you know, about five and a half million dollars in the bank. We will have roughly … that’s something like 45 million shares outstanding. The ownership structure will be management and directors, will be invested up to about … they’ll own about 35%. Other insiders, and that largely that Puno shareholders. Their shares will convert to Miramont shares. They’ll own about 37% of the company. And then the free float toward the new investors will own the remainder.

Maurice Jackson: 

And while you’re discussing these share structure here, are there any options and/or warrants?

Bill Pincus: 

Yes, there are. There are currently 4 million warrants outstanding. At 15 cents the large majority of those being to insiders and management. They will be escrowed for a three year period, or released over a three year period. And then in this new financing, we’ll be issuing full warrants. We’ll be selling units, which include one chair and a full warrants excersizable for two years at 50%.

Maurice Jackson: 

Okay. Any options?

Bill Pincus:

No, not yet.

Maurice Jackson: 

Okay.  What is your burn rate?

Bill Pincus: 

Well, you know, we’re just getting organized right now. The administrative expenses are minimal. Once we get organized, we’ll have a better feel for that.

Maurice Jackson:

All right now. We’ve discussed if you alluded to I should, say that Miramont is securing to procure these projects. Let’s delve one more time into the financing of this. How do you plan to purchase the projects?

Bill Pincus:  

Well. We’re acquiring Puno Gold, which is the private company that holds the projects in a share exchange. And roughly, we issue roughly 15 million shares to the Puno Gold shareholders, and their Puno Gold shares will convert over into Miramont shares.

Maurice Jackson: 

And what is the time and cost allowance for procuring these projects?

Bill Pincus: 

Well, we hope to close everything in September. We’re pretty far advanced. We have some paperwork to go through, some approvals from the exchange and the security commission. We have to have shareholder approval for the transaction. And the memorandum has been prepared, where we’ll be submitting it to the Canadian authorities, for their approval and then we’ll send it out to the Miramont shareholders to approve the transaction.

Maurice Jackson: 

And for the private placement again, that is for accredited investors.  Bill, if you would, disclose to us those numbers one more time for the accredit investors in the private placement.

Bill Pincus:

We want to raise five million dollars. We’ll be selling units, at 30 cents and a unit consisting of one share, and one share purchase warrant to purchase a share at 45 Cents. Good for two years.

Now once these projects are procured, will there be any reversionary interests?

Bill Pincus:

I’m not sure what you mean by reversionary interest.

Maurice Jackson:

Meaning, are they going to be 100% owned?

Bill Pincus:

They … both projects are held under option to purchase 100% of the projects. There will be in both cases a retained royalty of one per cent in the case Cerro Hermoso, which we could have purchased for a one-time fee of $5 million, and Lukkacha, there’ll be a two per cent royalty. And we could purchase half of that for $5 million.

Maurice Jackson:

And the 1-2% royalties at NSR, sir?

Bill Pincus:

Yes.

Maurice Jackson:

And once Miramont has ownership, what is the next measurement for success?

Bill Pincus: 

I think the next measurement for success will be when we start our drill program, early next year, and I would expect resents to come out sometime during the first quarter of 2018. And that will be … we’re gonna give our best shot testing our principal targets, and the results will tell us if we have something or not.

Maurice Jackson: 

All right. Mr. Pincus, I’m going to put you in the hot seat now. Two final questions. What have you not told us that keeps you up at night?

Bill Pincus:

Well, you know, I think I’ve disclosed the risk. You know, I mentioned in Peru that dealing with communities is a big issue. Historically and in the past, I’ve managed to be pretty successful in that. I think our projects and the people on the projects are managing, and working with the communities very well. But that’s one area where you might have something unexpected. And then I disclosed to you the issue of the special security permission we need in regards to Lukkacha. Once again, I don’t anticipate any real problems, but until we have it, it ain’t over until the fat lady sings. And she hasn’t snag yet.

Maurice Jackson: 

Last question here. What did I forget to ask?

Maurice Jackson:

Ladies and gentlemen, we’d like to apologize for the audio interruption at the end of our interview. If you’d like to receive more information regarding the financing and/or Miramont Resources, please contact Tyson King. He may be reached at 778-968-8494 and or at [email protected]. Again, that number is 778-968-8494. And last but not least, please visit our website, www.provenandprobable.com where we interview the most respected names, in the national resource space. You may reach us at [email protected].

Bill Pincus of Miramont Resources, thank you for joining us today on Proven and Probable.

Speaker 3:

Thank for joining us today on Proven and Probable. Remember to like and subscribe. For more conversations with the most respected names in the natural resource space, check out our website at www.provenandprobable.com.

The information presented on provenandprobable.com is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. The information is not intended to be and doe snot constitute financial, investment or financial advice or any other advice. You should not make any financial, investment, or trading decision based on any of the information presented without first undertaking independent due diligence and consultation with a professional broker or competent financial adviser.

Proven & Probable

Maurice Jackson

All Rights Reserved.

The Information presented in Proven and Probable is provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Information contained in or provided from or through this forum is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information on this forum and provided from or through this forum is general in nature and is not specific to you the User or anyone else. YOU SHOULD NOT MAKE ANY DECISION, FINANCIAL, INVESTMENTS, TRADING OR OTHERWISE, BASED ON ANY OF THE INFORMATION PRESENTED ON THIS FORUM WITHOUT UNDERTAKING INDEPENDENT DUE DILIGENCE AND CONSULTATION WITH A PROFESSIONAL BROKER OR COMPETENT FINANCIAL ADVISOR. You understand that you are using any and all Information available on or through this forum AT YOUR OWN RISK.”

 

 

Be the first to comment on "Miramont Resources – Massive District Scale Copper and Gold Potential"

Leave a comment

Your email address will not be published.


*