General Base Metals
TinOne Resources (TSX-V: TORC)(OTCQB: TORCF) CEO Chris Donaldson on High-Grade Tin Drill Results Outside of Historic Resource Area at Great Pyramid Project, Australia
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the executive chairman of TinOne Resources, Mr. Chris Donaldson. Chris, always a pleasure to have you on. How are you?
Chris Donaldson: Hey, Gerardo, I'm doing really well. Thanks for having me here.
Gerardo Del Real: The last time that you and I chatted, you teased that we would likely be chatting soon. And I assumed, because I know, I've been around long enough to know the way that news flow tends to happen, that post labor day, we would be having a conversation. And sure enough, you had some absolutely phenomenal results today. I'm going to read that headline and then I want you to provide the context, and then I have a few questions. You reported... Well, this is how you describe it, "Exceptional high grade tin drill results outside of the historic resource area, including .51% tin, over 78 meters at the Great Pyramid project in Australia." Now, let me take the devil's advocate point of view here, because it's tin, and because most speculators and investors aren't as accustomed to reading a release with tin grades, we know 78 meters of anything with economic grades, is a very robust width of mineralization. Talk to me about how happy you are with this .51% tin. And then I want to get into the significance of the fact that it wasn't just outside of the historic resource area, which bodes well for a future resource estimate, but also, it was within it, which helps provide the continuity that makes that geologic model hold up, right?
Chris Donaldson: Absolutely. So this is part of the challenge with the tin story is that it's not well understood, but no, these grades are fantastic and better than anything that we would've expected, really. The Great Pyramid project had a historical resource on it of 10,000 tonnes at .2%. And that was from surface down to about 40 meters. So the main goal of our drilling campaign, which is about 5,500 meters, is to extend that, and both at depth, and within the, what would be the resource and also laterally as well. And we've hit all of those targets that we had and all of the drill results came in above the .2%. So the most exciting, yeah, you talked about the .51%. So more than two times above the historical grade, it's in an area that hadn't had drilling on it. So we have a new zone, which is fantastic. And probably a good way of looking at it, is to compare it a little bit to copper and the price of tin right now, it had hit an all time high about six months ago, at $50,000 a tonne.
And unfortunately, it's come down to about $22,000 per tonne, but it's still above, say the five year average. So we're in the game. Tin itself is quite cyclical. So I would expect at some point it'll pop back up, but regardless, we have results that are very good. Our goal is to update the resource and we hope to do that, say in the next... Start on it in the next six months, once we get all the drill results back. Hopefully we have enough to put together an updated resource on it. And I mean, this is a fantastic start and a good comparison would be, if you look at a project called Taronga, First Tin bought it, I'm going to say about 18 months ago or so, for about $40 million Australian, and when it was acquired, it was about 30,000 tonnes at .17% tin. So if we can get in that range, definitely underpin a value for the company. And then of course we have other projects as well, but yeah, great start and looking forward to seeing additional assays as they come in. We'll be drilling for another four or five weeks and sending assays out and getting those results. So there's more to come as well.
Gerardo Del Real: You mentioned a resource update, which will be upcoming, but you mentioned that $40 million buyout of the Australian comp. Just for context there, can you provide us an update on your market cap today, even after these excellent results?
Chris Donaldson: Yeah. I mean, we're about an $8 million market cap. So $40 million is a start, I think, for us, but it's still, what is that? Five times where we're at today. We've just done a raise, so we've got a couple million, little over $2 million in the bank, so we've got enough to get us to that point, but yeah, certainly a lot of upside. And hopefully, if we get a little tailwind in the market as well, we'll get additional leverage on the share price.
Gerardo Del Real: And we're talking just one project, mind you. You have a stable of excellent projects. Can you speak to that a bit?
Chris Donaldson: Yeah. I mean, we announced two weeks ago, that we acquired another set of projects called Rattler Range. We now control, I think, four or five of the seven tin occurrences in Tasmania. Part of the story, Gerardo, is that most of the supply is coming from, we'll call them dubious jurisdictions, Myanmar, Indonesia, DRC, in China and from time to time, many of those countries restrict the export of tin. And that's partly what led to the real squeeze about six months ago. So there's definitely an appetite for tin projects in, we'll call them tier one, in Western jurisdictions. And there aren't that many of them, and the more and more you hear from ESG companies or the Teslas of the world saying that they're really looking for where the supply of materials are coming from. These types of properties in Australia are going to become more and more valuable.
Gerardo Del Real: Couldn't agree more. I want to come back to the drill results. You announced results. What was it, for 15 holes? Do I recall that correctly?
Chris Donaldson: Yeah. 15 holes, we’re a little more than halfway through that 5,500 meter program. It was basically all of the RC holes that we had done. The assays for those come back a little quicker. We're still drilling now on some diamond holes, so there'll be more to come.
Gerardo Del Real: Excellent. Talk to me about how important figuring out what the limits of the mineralization, what that looks like, because I know that there hasn't been a lot of drilling at depth and you mentioned it being open there.
Chris Donaldson: Yeah. I mean, we're getting a better understanding of the structure there. So, for instance, when we were drilling deep, we were hitting some voids, and then at even further depth, we were tapping into tin again. So it appears that there's a series of folds in the area, and that's information that we're getting. We're getting a better understanding of it as all these assays come in. So, that's the main objective as to what we have, is just to understand the system we have. We still haven't tapped into the granite, we suppose that there's a granite source at some point at depth underneath. So we still have some drilling to do we have some deeper holes and some deeper IP targets that we're going to be drilling out in this campaign. And yeah, we should get a lot of information in terms of the structure and how the deposit looks when we're complete on this.
Gerardo Del Real: Good stuff. I know that I'm looking forward to catching up with you in Beaver Creek. I encourage anyone that's out there to come say hello to Chris. Come say hello to myself. Would love to catch up with everyone, really looking forward to it. That's one of my favorite conferences of the year. Anything to add to that, Chris?
Chris Donaldson: No, it's an exciting story. The markets are tough right now, but that's part of the opportunity, and we know we're onto something here. It's just a matter of how big it'll be and how quickly we can get to that updated resource.
Gerardo Del Real: It's called buy low, sell high, people. I can't stress it enough. You have to do the first part to get the second part right. Thanks a lot for the time, Chris.
Chris Donaldson: Okay. Looking forward to seeing you in Beaver Creek. Take care.
Gerardo Del Real: All right. Chat soon. Bye now.