Categories: Precious Metals
Topics: Gold Stocks

Leede Financial Executive Vice President Brad Hemingson on Daura Gold (TSX-V: DGC), Permits, & Drilling in a Precious Metals Bull Market

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today, someone that I've known for quite a bit now and has always sent great stories my way. I suspect that Daura Gold (TSX-V: DGC) is going to be another one of those. I love introducing stories early on. Brad, how are you today, sir?

Brad Hemingson: I'm well, thanks.

Gerardo Del Real: Well. Listen. For those that don't know, Brad Hemingson has been in the space for quite some time, has been involved with multiple, multiple success stories. And it's not a coincidence that the people that tend to make success stories out of companies, it tends to be the same people. And so anytime that I get a tap on the shoulder per se, about a company that is putting land packages together in really prospective areas, and doing all the right social licensing work and putting the right people together, I pay attention. I go digging a little bit. So that brings me to Daura Gold. Daura has put together an impressive land package in what was once a very difficult part of the world, and is now one of the most prospective parts of the world. Can you speak a bit to your involvement with Daura Gold and why you think that this is going to be frankly perfect timing in this market, with gold seemingly wanting to push towards that $4,000 level?

Brad Hemingson: Well, it's funny. I got involved with Daura because I listed a CPC for a group of guys that I was introduced from another client. And I listed their capital pool company, which is basically a blind pool shell. They came to us with the assets in Peru and asked if I’d help them with their qualifying transaction. And it took quite a while. These days, the Vancouver Stock Exchange is ... TSX Venture is not known for their speed, so…

Gerardo Del Real: You're being kind.

Brad Hemingson: It took about 30 months. And what drew us to the area was the discovery years ago by Silver Standard. And Daura was negotiating to acquire a project immediately beside the old Silver Standard project. And we were looking at other assets in the area as part of the transaction. While we were trying to get Daura listed, Richard Warke and his group came in and financed their way into control of a company called Highlander Silver. And then proceeded to do a deal with Silver Standard to purchase the property that Daura was immediately adjacent to. Since then, Richard Warke, he brought the Lundins in, he brought Eric Sprott in, and he's taken Highlander Silver from 40 cents, I believe this morning, and hit $3.15.

So you have nearly a $300 million market cap company sitting on a really interesting asset, and you have a micro cap junior immediately adjacent to it that has some historic drill holes and some surface samples that are very similar in tenor and grade to what Highlander has. And I don't have any notes in front of me because I'm actually on holiday right now. But the original Silver Standard resource ran 22 grams per tonne gold and about 450 grams per tonne silver, and was about a 350 to 400,000-ounce deposit.

I've never seen grades like that. The problem with the Ancash area of Peru since Silver Standard walked away in about 2012, 2013, was everybody had trouble getting permits and community relations were not good. Move forward to today, Daura's already got one set of community agreements on a property just to the south, and they're working on their community agreements for the main property beside Highlander. Highlander has all their community agreements in place and expects to be drilling in two to three weeks. Which is why Highlander stock has been moving very dramatically. I would suspect probably by the end of the summer, is that Daura will have drill permits for Antonella and will be busy working on the property. It seems pretty apparent to me that the general tenor of mineralization in the area, the vein structures and mineralization that is on the Highlander property, seem awfully similar to what's on the Daura property. So you know, Gerardo, that address is everything.

Gerardo Del Real: Absolutely.

Brad Hemingson: So if you're next door to a guy who's discovering very high gold grade and he's going to go drilling, what you want to do is you want to be drilling as soon as you can beside him. And that's what Daura is trying to do.

Gerardo Del Real: No, look, I think for you ... Again, I've known you for a bit now. For you to be as patient as you've been bringing this to market, I think speaks to one, the quality of the team, but to just how prospective the asset is. Obviously, what's good for Highlander is going to be good for Daura Gold. And so I'm sure everybody will be watching that program with great, great interest. I am watching for permits with great, great interest. And I can tell everyone this. Once those permits are in hand, any success of significance in this region is going to take the share price much, much higher. Now, of course, you're going to have to prove it with the drill bit. But you have all of the indicators of potentially a discovery that is going to become, I think, increasingly valuable in the environment we're in, and especially with success from your neighbors. Can you speak to the market cap and where that's at right now? Just to give people a little bit of perspective and context? Because again, I love early stage stories.

Brad Hemingson: The market cap of Daura would be about $4.5 - $5 million right now, and I think the market cap of Highlander's pushing $300 million, I would encourage anybody who wanted to really understand the story is go to Daura Gold's website and have a look. Then immediately after that, go to Highlander Silver's website and go have a look at what they've got and what they're doing. Because it's the exact same district. They're neighbors. Daura actually has three properties immediately adjacent to Highlander on the Western boundary, All the maps and everything are there on the website, and it's easier to get an understanding of it by checking out both websites.

Gerardo Del Real: Well, Brad, I know you're on holiday. I want to thank you for the time. I want you to enjoy your holiday, and then I want you to go get some drill permits and let's go make a success of this thing. I think it's going to be an interesting summer and a heck of a second half of the year for everybody.

Brad Hemingson: Well, with the gold price, it certainly helps. Thanks, Gerardo.

Gerardo Del Real: Anytime. Brad, appreciate your time, sir. Take care.

Brad Hemingson: Bye-bye.

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