Potential of high-grade gold deposits draws Adamera to Washington
Washington State has seen substantial historical gold mining dating back to the 1890s, but that doesn't mean there still isn't gold to be mined. Mark Kolebaba, CEO of Adamera Minerals, extols the advantages of exploring in Washington and explains why it offers low-cost opportunities.
Management Q&A: View From the Top
The Gold Report: Thank you for joining us, Mark. Can you give us a little introduction to Adamera Minerals Corp. (ADZ:TSX.V)?
Mark Kolebaba: Sure. Adamera Minerals is 100% focused on exploring for gold in Washington State. This is an area known for high-grade gold deposits that has been relatively underexplored for 25 years. We have been here for three and half years and have developed a compelling land position. Washington State is a safe and easy jurisdiction to work in. Given our focus solely in Washington State, we have developed an unparalleled understanding of the region from staking, permitting and geology. We are excited to be in Washington.
TGR: Washington was a hub for mining 20-plus years ago. Can you tell us a bit about the history of the area?
MK: This particular area has a long history of mining dating back to the 1890s. The area we are exploring has produced more than 6 million ounces (6 Moz) of high-grade gold from multiple districts. The Republic district operated by Hecla Mining Co. (HL:NYSE), for example, produced 2.8 Moz gold at an average grade of 20 grams per tonne (20 g/t) and 15 Moz silver averaging 110 g/t.
Currently the only operating gold mine in Washington State is the Buckhorn mine, which is owned by Kinross Gold Corp. (K:TSX; KGC:NYSE). Buckhorn is a 1.3 Moz deposit averaging about 12 g/t, making it the third highest-grade operating gold deposit in the U.S. Washington is the fifth largest gold-producing state in the U.S.
TGR: The Buckhorn mine presents an interesting opportunity. Can you please explain why?
MK: The Buckhorn mine is expected to be out of ore by the end of 2016, leaving Kinross' mill in care and maintenance. With a fully permitted underutilized mill and gold prices looking very attractive and, dare I say, stable, the timing is perfect for us. Adamera was attracted to Washington State by the prospective geology and the presence of high-grade deposits; dovetailing great geology with a unique opportunity to discover mill feed in an established but underexplored mining district is fantastic.
TGR: What benefits or infrastructure are in the region that Adamera can possibly leverage?
MK: I love working in Washington State; the infrastructure is very well developed and we are able to keep our costs well below industry standards. The area is fully accessible by road and the community is very supportive, with a good work force available for advancing the project. I believe the presence of a modern, underutilized, 2,000-ton-per-day mill changes the economics of new discoveries and shortens permitting timelines significantly.
TGR: Can you tell us a bit about your flagship property?
MK: We have three key projects: Oversight, Flag Hill and Empire Creek. All projects are in recent mining districts that we consider underexplored.
Currently our flagship is the Oversight property in the Cooke Mountain gold district. This property surrounds and encompasses part of the Overlook deposit that was mined in the 1990s. The Oversight property is only 5 kilometers from the mill along an existing haul road. We have some new ideas and high priority targets there, and we are really excited about testing them.
TGR: What are your plans for Adamera over the next six months?
MK: Adamera is financed for our next phase of work, and I see us pursuing two distinct channels of activity. First, we have identified several new and high priority targets at Oversight that are situated next to recent past producers. Having positive historical data has really aided in picking the targets, and we are very optimistic. We will develop and drill test these opportunities to understand them better. Second, we will initiate a low-cost, larger, regional targeting campaign that utilizes modern ideas, concepts and techniques. This area hasn't seen modern exploration programs deployed, and that is really exciting to me as a geologist, as the region already has great geology and who knows what we may find now.
TGR: To summarize, can you let our readers know why you think they should be investing in Adamera?
MK: I will tell you why I invest in Adamera. The existence of well-established infrastructure ensures low-cost exploration, which is very important to me, and the presence of a mill that requires immediate feed will lower development costs, shorten permitting times and provide a strong built-in exit strategy.
I love that Kinross has demonstrated Washington State as a low-cost production region. But one of the biggest attractions for me is that our new geological concepts present a potential opportunity for large, 1 to 3 Moz high-grade gold deposits. That is a big deal for me.
TGR: Thank you for your time, Mark.
Mark Kolebaba is CEO, president and director of Adamera Minerals. He has been instrumental in major discoveries since the 1980s and has experience with diamond, gold, silver and base metals. Kolebaba has held positions with BHP Billiton, Cominco Ltd. and the Northgate Group of companies. He was part of the team that discovered the first 120 kimberlites at the Ekati Diamond Mine and was responsible for the initial discovery of the Hope Bay Gold deposit in Nunavut. Kolebaba also served as president and CEO of Diamonds North Resources and Uranium North Resources, where he and the exploration team acquired one of Canada's largest land positions.
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Source: The Gold Report
1) Patrice Fusillo and Paul Guedes compiled this interview for Streetwise Reports LLC. Ms. Fusillo provides services to Streetwise Reports as an employee. She owns, or her family owns, shares of the following companies mentioned in this interview: None. Mr. Guedes provides services to Streetwise Reports as a contractor. He owns, or his family owns, shares of the following companies mentioned in this interview: None.
2) Adamera Minerals Corp. is a sponsor of Streetwise Reports. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclaimers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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