Kenadyr Mining (TSX-V: KEN) President Bryan Slusarchuk: “We're Going to be Drilling Within 90 Days” at the Borubai Gold Project
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is President of Kenadyr Mining (TSX-V: KEN)(OTC: KNDYF), Mr. Bryan Slusarchuk. Bryan, thank you so much for joining me today.
Bryan Slusarchuk: Gerardo, thanks a lot for having me on.
Gerardo Del Real: Well, you've been very busy. You are coming off of a very successful public listing with Kenadyr. That went really well so congratulations there. And just today, or just yesterday actually, you had some news where you have finalized a drill contract with Quest Exploration Drilling, which is an exciting drill program that I'm looking forward to. Can you fill in the details for us, Bryan?
Bryan Slusarchuk: Absolutely, Gerardo. I really appreciate the thank you on the public listing. The Kenadyr story has really captured the imagination of institutional investors in the mining space. It's starting to get out there in terms of the retail audience. You're always very early to these situations and we thank you for that, as should your listeners.
Kenadyr has and owns 100% of a 164 square kilometer land package that not only encircles a super major, being Zijin Mining, but actually has connectivity to the ore body that Zijin is producing from now at their TBL Mine. Mineralization on our property connects with the deposit that they're mining from.
We had big news out here just in the past 48 hours. We've signed a drill contract with one of the best drilling companies in the world, Quest Exploration Drilling, and we've announced that we're going to be drilling in the South Zone of our property in the next 90 days. And that South Zone, just to remind your listeners, is the zone that has connecting mineralization to Zijin's TBL mine, so we're very excited to get in there and test that.
What we'll be doing is we'll be twinning historic Soviet holes that were drilled in that area. And based on what we've seen in modern drilling versus the Soviet times, we think there's a big possibility, a very good potential that modern drilling will result in higher grade assays. The reason that we say that is that the Soviet drill program from 50, 60 years ago, had very poor core recoveries. At times, they got 50, 60% core recoveries, and particularly bad core recoveries in the softer areas of the deposit, the zone, which are often associated with higher grades of gold mineralization.
So we know this thing can be big. There's a historical estimate, 900,000 ounces at 8.3 grams per tonne, it's wide open in every direction, so we know there's the potential for this to be large. At the same time, we also know, based on the description I just gave you, Gerardo, of past Soviet drilling versus modern drilling and the correlation related to this, that this has potential to be very, very high-grade.
Gerardo Del Real: Well, that's exciting. You mentioned 90 days from now, so that the drill program actually gets going. In the meantime, what can shareholders expect, Bryan? I know you have a very strong cash position. What can we expect here in the next 90 days?
Bryan Slusarchuk: You know, at the end of the day, we've got no debt, no big payments, no big property obligations. We're going to be drilling within 90 days, and when that drill gets turning, it's going to be very exciting. Prior to that, who knows what's going to happen corporately. If I was in Zijin's shoes, I'd be paying a lot more attention to this situation over the coming couple of weeks versus what I was allocating in terms of time and attention a few weeks ago.
And the reason I say that is a few weeks ago, Gerardo, they likely viewed us as a concept company, but now here we are with 100% of this project that completely encircles Zijin, no debt, a very healthy cash balance, no big payments, and we've got a drill that's about to start turning. Now remember, this project is located logistically in an extremely favorable setting. We've got a paved road right to the project. We're on the hydroelectric grid. There's been a huge amount of past historical investment, including more than 85,000 meters of drilling.
So, as a stand-alone, forget Zijin and the strategic location there, as a stand-alone with these big historical estimates, 900,000 ounces at 8.3 grams per tonne in the South Zone alone, five to six million ounce potential in the greater project area with great logistics, with great access on a paved road, hydroelectric power, as a stand-alone, this could be very attractive to multiple major companies. The fact that we completely encircle and surround a super major's existing production, Zijin's TBL Mine, is just a huge benefit. But even without that, this is just a very compelling situation that I think really will capture more and more attention.
Gerardo Del Real: Absolutely, Bryan. I think it's definitely worth noting that the management team in place has extensive in-country operational experience, and I think that's going to be really important moving forward. That management team also happens to have a lot of merger and acquisition experience, so I think it could be interesting here in the next few months.
Bryan Slusarchuk: Absolutely. Dr. Alex Becker, who's our CEO, has a 20 year track record of success in this country. At the same time, he's renowned as one of the world's leading experts on mineralization in this belt. Doug Kirwin, credited with leading the discovery team at Oyu Tolgoi, is a director of the company. So the technical knowledge of these guys speaks volumes about the project's geological merits.
At the same time, when you surround, when you encircle a super major's existing mine operation, you've also got to make sure that you've got capital markets and M&A experience. And to that I point to Tookie Angus, the Chairman of the Kenadyr board. Tookie is one of the world's most well known M&A guys in the mining space. He's the chairman of Nevsun now, but Tookie is also very well known as a founding director of Ventana Gold, a founding director of Bema Gold, a founding director of Canico. These are multiple M&A transactions that were hugely high profile in the industry.
Remember, Ventana had a market cap of less than $30 million, and a couple of years later it was purchased for $1.3 billion, and Tookie was a founder there. Tookie as chairman has that M&A experience that can ensure that our shareholders are going to get maximum value when the time comes. At the same time, we've got guys like Mark Eaton in the mix. Mark was former head of global mining sales at CIBC.
So the right mix, Gerardo, is here. We've got some of the world's most renowned geologists, and definitely some of the geologists that have had the most success in this highly prolific country. But at the same time, we've got people on the team with steep expertise in M&A. And when you've got a project like this that encircles a super major, and the type of historical data that we have, you want to make sure that you're taken care of from an M&A angle, and we've definitely got that.
Gerardo Del Real: Well, Bryan, it should be an exciting 2017. I encourage everyone to go to Kenadyr's website, that's K-E-N-A-D-Y-R dot com, kenadyr.com. Get familiar with the project, I think it should be a fun summer.
Bryan Slusarchuk: Absolutely. The stock trades at KEN on the TSX Venture, and because of the fact there were no warrants associated with any financing, the only way people get exposure to this drill program targeting the very, very high-grade South Zone, and the takeover potential, is owning the stock. And it's KEN on the TSX Venture.
Gerardo Del Real: Excellent. Bryan, I want to thank you for your time, and hopefully we can have you back on soon as we get further developments. I get the feeling there's going to be lots to talk about.
Bryan Slusarchuk: Absolutely. I'm sure we'll be talking very soon, Gerardo.
Gerardo Del Real: Thank you, Bryan.
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