Categories: Base Metals
Topics: General Base Metals

Dore Copper (TSX-V: DCMC) CEO Ernest Mast on Developing the Next High Grade Copper-Gold Mine in Quebec

Geraldo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Dore Copper, Mr. Ernest Mast. Ernie, how are you today?

Ernest Mast: Very good. Gerardo, how are you?

Geraldo Del Real: I am well, sir. Thank you for asking.The last time you and I spoke, we talked about step-out drilling, extending the Corner Bay mineralization by 125 meters back then, back in September, I believe you, you intersected 6.45 meters of 4.1% copper and 0.38 grams per tonne gold. It's December, it's near the end of the year. The copper market is on fire, it sits right at the $3.55 level as I speak. You're drilling, and you just announced a private placement, which I believe you had to increase to 5.98 million from the original five million that you had announced. Is that accurate?

Ernest Mast: That's correct. Yes.

Geraldo Del Real: Walk me through how the drilling is coming along and walk me through what you anticipate for 2021, because I know that from subscribers and our audience that has written in, 2021 is going to be a critical year for a lot of copper companies and with the infrastructure advantage, the company possesses, I have to believe you're excited about 2021.

Ernest Mast: We're really looking forward to the upcoming year. Since we last spoke, we did a drill program at the Joe Mann property, which is a high-grade gold property that we have. We're currently waiting on assays. We did drill four different areas of the mine. Some of them were past producing areas and the other two areas were never production, but there were some historical intercepts that we felt needed to be followed up on.

We're currently waiting on those assets. Regarding Corner Bay we've just returned to drilling that property towards the beginning of December and we'll start off our program in 2021 drilling the Corner Bay deposit. The deposit currently sits at three million tonnes at a grade of nearly 3.5% copper, making it one of the highest grade copper deposits in North America. The drilling that we're planning on doing is going to continue with our very successful strategy of drilling these step-out holes because the deposit, which is a sheer hosted vein deposit. The deposit’s open in many directions.

We've been focusing on the South side of the deposit with where we had a great amount of success during 2020, we're currently now going to look to drill the North side of the deposit, where there, there is a resource in place, but it's a relatively small one. We have reasons to believe that the resource kind of twins what we see on the Southern area where there's, there's definitely a big mineralized zone and so we're looking to replicate that on the North.

Geraldo Del Real: You're working towards a PEA and you have a stated goal to have a profitable hub and spoke operation of 100,000 ounces of gold equivalent per year production or 60 million pounds copper equivalent. Walk us through why 2021 is going to be critical for the company and for shareholders as it relates to you arriving at that goal and getting closer to that. Right?

Ernest Mast: Correct. We are looking forward to commencing the program for 2021. The reason why it's going to be such a key year is that with the additional drilling that we're doing at Corner Bay, we'll be determining a new resource estimate for the Corner Bay deposit, and since Corner Bay is the cornerstone deposit in our company, it's going to make up a big part of the PEA. In addition, we will get results from the Joe Mann property, and that's going to be a really nice complimentary deposit to Corner Bay, in order for us to reach that goal of 100,000 ounces per year of gold equivalent or 60 million pounds per year of copper equivalent, we do need to sequence other mines through the mill, in addition to Corner Bay.

Geraldo Del Real: Can you explain for people that may be new to the story that are looking for quality exposure to copper and gold? Can you explain the infrastructure advantage that you have? Because it's pretty significant? I think it's under-appreciated.

Ernest Mast: Yes, it is. The assets are located around the town of Chibougamau, Quebec, which is 300 miles North of Montreal with all year round road access. We have a 2,700 tonne per day mill that operated from the 1950s up until 2008. That mill essentially treated ores from the district in the past. It would use a process of Doré recovery via gravity and then flotation, and that's how we named the company Doré Copper, because we would produce Doré via gravity and then the copper in the flotation concentrates.

Having a mill like that, which can treat these different ores is a great advantage. The mill is close to the town of Chibougamau so we're not going to be a remote camp operation. We'll be an operation where people will commute home every night, which is another great opportunity.

There's a 25 megawatt power line to the mill, there's also a tailing facility that still has eight million tons of capacity left. We really see, we have all the ingredients in place for a restart. Now, when we restart the mill, it's, won't be as simple as just flicking the switch. There's some work to be done on some of the equipment, but it's really minimal compared to the cost of having to build a new facility.

Geraldo Del Real: Given the copper and gold strength. I have to believe that your phone has rung in regards to potential joint ventures. Is that something that the company is entertaining or is this, is this a goal that you have that you, you would rather go at yourself?

Ernest Mast: I think we're flexible to any alternative currently with the financing going on. We're definitely going to be fully financed to get through the PEA and do some additional drilling on top of that. Our position is if we can, as our, as our own, as we can take it by ourselves back into a production position, that leaves our options open and makes us more flexible going forward. But if someone was to knock on the door, we would definitely entertain JV opportunities.

Geraldo Del Real: You mentioned the financing, walk me through the share structure because it's, it's a very, very tight one.

Ernest Mast: Correct. Current share count is 31.6 million shares. With this financing, we'll be adding another eight to nine million shares. The share count will still be around the 40 million shares upon closing the financing The float of the company is currently at approximately 40%, and that's going to increase to about 45% after the current financing, the stock is still tightly held. However, one really good piece of news for the company and for shareholders is that we've seen a large increase in liquidity over the last month or so.

This is as a result of the increased copper price and the increased focus on the company. As you know, liquidity sometimes begets more liquidity and that's exactly what we're seeing. We trade on the TSX-V. However, we're now trading also on the OTC, under the symbol DRCMF, and we've really seen a large increase in liquidity on the OTC as well. Just to let, let potential investors know that this is now quite a liquid stock, and it's one of the strongest names in the junior copper explorer developer world.

Geraldo Del Real: You have grade, you have infrastructure, a good solid share structure. You have the PEA upcoming, and assays pending along with the financing for nearly $6 million Canadian. A lot to like there Ernie, I want to wish you a very, very, very Merry Christmas happy holiday, have a great new year and please stay safe.

Ernest Mast: Yes, thank you. The same to yourself and to your listeners, today's the winter solstice so we're in the portion of the year now where the days get a little longer. We're also hoping that we also see the light at the end of the tunnel with the COVID situation, with a vaccine in play now, and hope everyone, takes care prior to getting their vaccine.

Geraldo Del Real: Agreed. Thanks again, Ernie. Appreciate it.

Ernest Mast: You're welcome. Thank you.