What's happening in the Golden Triangle is 'game changing' – Colorado Resources CEO
Colorado Resources CEO can hardly believe all the activity and development in the Golden Triangle, British Columbia's northwest region that is seeing a rush of mines and exploration.
"Guys could never believe even 20 or 30 years ago that we would be standing here at the end of the road with a bridge over the Iskut river and powerlines and camps. It's game changing," says Adam Travis, CEO and President of Colorado Resources.
MINING.com toured Colorado Resources' KSP property (CVE:CXO) in northwestern British Columbia in August 2016. The company's targets are high-grade gold veins similar to the Snip Mine and Pretivm Resources Valley of the King deposit, as well as bulk tonnage copper-gold mineralization similar to Seabridge Resources KSM Project.
Resource Maven Gwen Preston interviewed Travis about his company's plans. Transcript is edited for clarity.
MINING.com: Why have these developments become game changers for the region?
Adam Travis: It’s great to be active again in the Golden Triangle. Guys could never believe even 20 or 30 years ago that we would be standing here at the end of the road with a bridge over the Iskut river and powerlines and camps. It's game changing.
MINING.com: What has been the main purpose of the drilling this year?
Adam Travis: We had a $2 million work commitment this year. We drilled 37 drill holes in 30 days. It was unheard of productivity. We’ve now released results for the first 30 drill holes with pretty decent numbers, including over 5 ounces per tonne over narrow intervals. holes and broader intervals like 2 grams of 99 metres.
Our whole concept coming here early was to drill the Inel target [editor's note: Inel is a KSP property target], which we flew around today, an area of 1.5 square kilometres, keep in mind that the project is 300 square kilometres, so a small portion of it. We are really trying to look for continuity of mineralization. And the drill core that you see out here, that we had a quick look at, starting to develop continuity over 600 to 700 metres at Inel and one of the things that we also highlighted was the fact that the Khyber zone, 2 kilometres away, looks like it shows similarities.
MINING.com: There’s more than one phase of mineralization that has gone through. Which are the areas in which you have been focusing on?
Adam Travis: Yeah, we talked about three main trends. We talked about this soil anomaly that is 1.5 square kilometres, averaging 1.27 grams per tonne of gold. It's an incredible soil anomaly on its own. We talked about the stacked horizons, right? And we are talking about at least three of those.
And today we picked you up at Red Mountain, for example, and you saw that similar kind of thing occurring with the mineralization that was occurring between the contacts of two different types of rocks. So that’s somewhat similar here. So I use that as a rough guideline and you get really excited of course when you see that contact literally going for kilometres and kilometres, right? We are expecting—or hopeful—that the gold always occur there but, you know, it’s not always at that contact and we are still learning more but there’s lots of room, lots of areas of that contact.
MINING.COM What are Colorado Resources’ plans for the months to come?
Adam Travis: When we started this year with a couple million dollars in the treasury and a $2 million commitment, I thought: ‘Wow! We are going to make this year, but next year I’m going to have to come up here, I’m going to have to convince all my geology friends to come and work for free,’ you know, that kind of thing. But we were fortunate to see—I think we were all fortunate in this business, right?—that after an incredibly poor last few years, that we saw the market pick up. We have our friends at Kinross become a larger shareholder in Colorado. They put nearly $1 million in. Our friends at Sprott continue to support us. So that allowed us to top up our treasury to almost $5 million, and so, you know, adding that to the couple million we had in the treasury, we are fine.
And so, we started out with $2 million program, but I brought my directors up at the end of that program, and with the good results they said ‘well, let’s do not just this year’s commitment, but let’s do $2.5 million more, and that really lined up with next year work commitment and, you know, our next step would be the 80% for another $4 million. We are already $2 millions ahead of our deal, so let’s get on the ground.
We’ve learned a lot in two or three short months, so it’s really about maybe ending this year on a really great note. I mean I know we’ve accomplished a lot, but also setting up the game for next year.
Gwen Preston is the Resource Maven. Years as a mining journalist gave her a deep base of knowledge and a broad network of contacts in the resource sector. She understands which projects and pieces of news matter. She understands what it takes for a project to advance along the exploration-development-production path and what opportunities each stage offers. She knows how the metals markets work, alone and within the global economy, and how to profit from commodity cycles. Sign up for Gwen Preston's newsletter here.
Michael McCrae and Gwen Preston interviewed Colorado Resources in August 2016. Editing help is from Valentina Ruiz Leotaud.