The Next Bull Market Move Interview - Kintavar Exploration President and CEO Kiril Mugerman


I caught up with CEO and President of Kintavar Exploration, Kiril Mugerman, while he was in London to talk about the company's latest set of drill results, why the type of Copper they are finding is very unique, and what the plans are for the rest of the year.

On The Next Bull Market Move we have Kiril Mugerman, who is the CEO and President of Kintavar Exploration. How are you today, Kiril?

I'm pretty good, how are you doing, Kerem?

I’m great. Let's talk about the most recent news from your company - a new copper zone discovery which is 550 meters north of Sherlock. Can you give us some details about that?

Yeah. Well so it's a brand new zone, it was a hidden target. We actually identified it by following a trail of boulders, so Quaternary geology is very important in our area, glaciers did lots of work for us by leaving some of those pieces for us. And once we identified that, all the boulders were mineralized, or the majority of them, we did some IP survey in the area, and the results were quite positive.

So we decided to do a bit of drilling, because we could not do any trenching in the area. So that led us to find that area, which gave us a nice mineralization of 45 meters of 0.31% copper. Since then we've actually completed a few other follow-up holes, which we're hoping to get the results in, probably around November.

Let's talk about the type of copper that you're finding. This is called stratiform copper. Can you give us some details about this? I understand Robert Friedland has discovered the same type of copper on some of the projects that he is involved with.

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Yeah, absolutely. So stratiform copper is, let's say it's not the most common geological appearance of copper. So it's primary sedimentary mineralization. You are looking basically at past ocean basins, that had the perfect conditions where there was enough copper in the rocks underneath the ocean.

Then there was the right conditions where a cap trapped all the fluids, the salty brines, and circulated them for hundreds of millions of years. During that period, you have the right temperature and pressure conditions to start leaching all your copper from your basement rocks, so let's say volcanics, or clastic sediments, and as your copper is leaching, the fluid gets enriched. 

Then, after some time, your basement starts shifting. As your basin shifts, you start forming faults. Those faults are your conduits, of that fluid to travel up, into a sedimentary sequence, and you'll find usually that there is going to be one strata that likes copper more than the other. And if it's permeable enough, then the fluid would travel through it.

So then you get into the chemistry of precipitation, copper starts coming out based on the conditions there, so in some deposits, like in Poland, it's actually in the shaley units, in another deposit, it's more in the sandstone/limestone units. So there's always a different control, and if the units are actually very wide or the fluid is very enriched, then you form very wide units.

Now in our case, that happened. And then you had the Grenville effect, which folded this entire basin, and it's hard to say right now how big the basin was, but it was a couple of hundred kilometers long. And today it got squished into approximately 30 or 40 kilometers long by 20 kilometers wide. And the entire basin is sitting there, so all those flat units, from back in the days, are sitting today squished, which makes them much closer to each other, and as I explained to you last time, we have the structural thickening, which provides us the opportunity to mine them as an open pit.

So for your project, how is the infrastructure? Is it an easy place to get to? Is there power? Is there easy access?

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Absolutely. So, that's one of the best located projects in Quebec. As you remember, I told you last time, our approach is always, "Think outside of the box". We like doing things a little bit different. And yes, it's a bit higher-risk, but at least at the same time we find bigger rewards. Now, in this case, we went to the southern portion of Quebec. We are much more to the south than your traditional gold and zinc mineralization in the north. 

So where we are located, it's really in the heartland of your logging and forestry industry, so because of that we road access everywhere. Not only that, we have a huge substation 15 kilometers away from our project that's bringing power all the way to the south in Quebec, and I believe some of it is even going to the US. But that substation provides electricity to the region, so on our property there's one camp, which today can host 150 people, is being used by both the local hunting industry, but as well as being used by the logging industry, and even by the Hydro-Québec people.

So that camp with 150 people is a huge advantage for us. We can always go and rent, and just use those facilities. That camp, the company behind it, it's a private company. They brought in the power line five years ago. So I have even the power line on site.

And the road access, you can't even imagine a better road access. So from Montreal, from my house, to that place, takes me 4.5 hours. And you can drive and never speed up, what like 40 kilometers an hour. So you're not talking about a gravel road, you're talking about a real, substantial road.

What are the plans for the rest of the year? You currently have eight million dollars in the treasury at the moment?

Yeah, right now, approximately eight million dollars. And right now it's the hunting season, so we're not doing any work on site. We're compiling data and preparing for the next stage. But really if you look, we have a couple of months left before snowfall. So, we are going to put people on the ground late October and throughout the month of November. We're gonna do a bunch of trenching, all in the central core there, Hispana. So that's the only one that we really did not have a chance to work enough during the Summer. 

We did identify several targets, but we didn't have anything to trench yet. No. We didn't trench it yet, we didn't have time for it. But the other idea is, during the month of November, put maybe 1000 or 2000 meters of drilling in the Hispana core there, in those best areas that we identified, and see what comes out. I mean, is it going to be a narrow area? Is it going to be nicely folded? What's going to be the grade? We don't know. So that's the objective, before the end of the year ideally. So I'll have drilling results from Sherlock, I'll have drilling results from Nasigon in the north, and with that drilling, I'll have our first real drilling results from Hispana.

So I really want to have, by the end of the year, drilling on each one of the cores there, to be able to see down and decide what's happening next year. So that way we'll be able to select and focus on the most important area.

So you'll have a strong set of results coming out from now till the end of the year. The plan after that will be determined on the results?

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Exactly. So I've got 20 drill holes still pending from Nasigon, in the north. I've got another 13 drill holes pending for Sherlock in the south. And we drilled our first methodological drill hole, so those results I suspect we'll probably get in the beginning of next year only. It's very important to start doing some of that initial work, because that will help understand what are the recoveries, what type of work will have to be done in the future to demonstrate the opex and capex for the future mine there. But at the moment, 13 holes plus 20, so that's 33, and whatever we'll drill on Hispana in the center. So you'll see all those results coming out over the next months.

Final question. If this does turn out to be a major discovery, I can imagine majors knocking your door, or perhaps doing a JV with a bigger company? Would that be part of the plan?

Things have been active, we've been approached by many groups. In general, whenever there's a new copper discovery, it usually attracts a lot of attention, because copper discoveries of significant size are not that common. And because of that, usually, especially being in a safe jurisdiction like in Quebec.

So for sure, it's been a very active period for us. Copper's seen some weakness, overall, since the summer, for various reasons. But we think as the copper price increases and goes back to worth three dollars a pound, we expect a lot of appetite for M&A in the copper space in general. 

Thank you very much, Kiril, and we'll have you back on the show again soon.

Thank you very much.

The Next Bull Market Move

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