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Alianza Minerals (TSX-V: ANZ)(OTC: TARSF) CEO Jason Weber on Acquiring & Optioning Klondike Copper Project in Colorado & Advancing SW Copper Alliance
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Alianza Minerals, Mr. Jason Weber, the very busy Mr. Jason Weber. How are you Jason?
Jason Weber: Doing well, Gerardo, how are you?
Gerardo Del Real: I am well, thank you for asking. Listen, it's been positive release after positive release out of Colorado. You have a couple of pieces of news that I want to touch on, but first we have to start with the news from this morning where you optioned out the Klondike property to a company that I'm also a shareholder of, Allied Copper. This project seems like an exciting one. It's near a producer. It's Colorado. Give me the overview and give me your thoughts on the project here moving forward.
Jason Weber: Yeah, just as a general statement, this is under our alliance with Cloudbreak Discovery. So as our alliance goals were set, the idea was to pick up these copper projects like Klondike, and together we'd work to bring in a third party to fund the next phases of work, dominantly drilling, to move these projects forward. And that's exactly what we've done here with Klondike together with Cloudbreak. We were able to structure this agreement with Allied to take the property on. And it's a property we're really excited about. When you and I chatted in New Orleans, I think I told you how excited we were about what we were seeing on the ground at Klondike, just the new copper mineralization, number of different targets, the breadth of copper mineralization at surface and the tenor of that grade. We can't wait to get this project drill tested, and that's what Allied's been brought in to do, so we're really happy to have them as a partner. I think it's a great deal for both sides and I think Klondike's a good project with a great chance to become something very significant.
Gerardo Del Real: Let's absolutely clear. You structured the deal in a way where yes, Allied is able to option into a hundred percent of it, but not without significant upside for Alianza shareholders if indeed this turns into a discovery or project of significance. Can you go over just some of that upside for Alianza shareholders?
Jason Weber: Yeah. So there's an aggregate expenditure that Allied is required to make on the property that comes in at $4.75 million in exploration. And they have to do $500,000 of that by this time next year. The upside for us really comes in the fact that we'll become a significant shareholder of Allied. We'll have three and a half million common shares and that gives us the toehold or the ability to participate with them as they move this project forward. And we are always hoping that these projects are going to be very, very successful and if it is, we'll benefit through that share ownership. The other part of the deal that comes along with it, once we make that, the transfer to Klondike, they will issue some warrants to our alliance. So of course the price will be set at the time that that all happens, but there's 3 million warrants they'll split 50/50 with us to collaborate. That's another million and a half warrants that we'll be able to participate along with Allied as they enjoy the success at Klondike.
Gerardo Del Real: I've got to believe that the news out of Klondike on December the 1st from that news release as it relates to the surface sampling program probably helped expedite the decision-making process for Allied. Right? I know that the size of the Northeast Fault target at Klondike, it's something that the alliance is very excited about. Can you speak to that a little bit?
Jason Weber: Yeah. And what's interesting is a lot of these projects like Klondike, they weren't explored for copper originally. So they were looking for other commodities and would note the presence of copper mineralization. And so the Northeast Fault was basically just a notation that they had seen some copper mineralization on surface.
So when we went up to look at it, our crews went up to look at it, it was much more expansive than we could have expected, 200 meters long by 100 meters wide, gets obscured by gravel cover, and then over a kilometer away on the other side of the gravel cover, we pick up anomalous copper again. So it could be a very, very large target. So that was really exciting to see that size of a target with grades that are running in excess of a percent copper was really something that we were really pleased to see. And it solidifies that or is the proof of concept for what we were doing here. And I think that's probably was just exciting for us and for Allied, it's a great target, something that they can sink their teeth in and move forward quite quickly on.
Gerardo Del Real: The Southwest US Copper Alliance that you've put together has been extremely busy, because you also had news on the 29th where you acquired the Stateline Copper Project also in Colorado, near a producer on trend to a pretty famous copper complex. Can you speak to that a bit?
Jason Weber: Yeah. We went out and visited both of these projects on consecutive days. So we went from seeing the expanse of copper mineralization at Klondike that we just talked about to something that's maybe a little earlier stations had less work done on it, I would say, than Klondike did. But Stateline, you can stand on the higher elevations on the target. In fact, from one of the showing areas at Stateline, you can look back across the state line where you're standing in Colorado at this point, and you look back into Utah up the Lisbon Valley. And you can see some of the dump piles and infrastructure around the Lisbon Valley Mine complex, which is in production today. It's going strong. We stopped and watched some of the mining operations there. We could see as we drove down the valley, other places where they were doing exploration drilling. And some of these targets extend right to where our property boundary is for Stateline.
So it's an exciting, very exciting target, just maybe a little earlier stage in its exploration history than say Klondike would be. So again, outcrops have revealed 1.6% copper with a little bit of silver on surface, so potential for nice high-grade copper mineralization to sink our teeth into there as well. When you can stand on a project and you can look back and see the infrastructure for an operating mine that's in the same rocks with the same type of target that you're exploring on your project, that's always a good place to start.
Gerardo Del Real: Agreed. Agreed. A productive couple of months for this new alliance. Can we speak to Alianza's flagship and principle projects? What's going on on that front, Jason?
Jason Weber: Yeah. Haldane we're working to set up next year's program, so a big chunk of that is taking some of the data, not necessarily the assay data, but some of the geological information that we pulled out of the drilling, and start putting that to work to just get any clues to back or support our idea of which way the high-grade shoot might be plunging at, the West Fault target at Haldane. We've been talking to various drill contractors about what kind of rigs they can supply, just to see if we can speed up the drilling process there. And it's really about putting together next year's program, which we hope is going to be a big one that will be testing West Fault, as well as some of the other targets like Bighorn, where we've made a discovery. And that's the only hole we've drilled in that target, so we'd really like to get back there and follow up on some of that mineralization as well.
And then Twin Canyon, which is the other project that we talk about a fair bit, also in Colorado, it's a gold project further south in Colorado from Klondike and Stateline, but we feel we're close to getting a permit for that to conduct drilling next year. So I think that'll really open the door to help getting a target, or sorry, help getting a partner to test that target.
And then lastly, we have our partner, Coeur. At some point here, we should be seeing the final results from the program they conducted at our Tim property this year that we've optioned to them. And that would be exciting as they build towards conducting a drill program in that project next year. So still some news to come out but we're full swing preparing for next year's programs.
Gerardo Del Real: A lot to get to, I'll let you get to it. Thank you so much for that thorough update, Jason. It was overdue.
Jason Weber: Thanks very much, Gerardo. It's great speaking with you.
Gerardo Del Real: All right. We'll chat soon. Have a great holiday if we don't speak to you between now and then, though I suspect, given the pace of the recent releases, we may be chatting here in the next week or so.
Jason Weber: I think we will.
Gerardo Del Real: All right. Chat then. Bye now.
Jason Weber: Bye-bye.Click here to see more from Alianza Minerals Ltd.