General Base Metals
TinOne Resources (TSX-V: TORC)(OTCQB: TORCF) Executive Chairman Chris Donaldson on More Strong Tin Intercepts at Depth at its Great Pyramid Tin Project, Tasmania, 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, how are you today?
Chris Donaldson: Hey, I'm doing great thanks, Gerardo.
Gerardo Del Real: It's great to have you back on. We seem to have a commodities market across the board in early 2023 that looks pretty darn favorable. You just reported further strong tin intercepts from your Great Pyramid Tin Project. I would love for you to provide the context on it.
Chris Donaldson: Yeah, it's certainly a better market than it was a few months ago. The tin market is one of the most interesting. It got a lot of attention last year with tin on a two-year run. It peaked at about 50,000 a tonne in March of last year and then it absolutely fell off a cliff. Price fell down to about 17,000 a tonne by the end of November, and we've had a real strong comeback. I think we're at 28, 29,000 per tonne now, which is about at the incentive point for new projects, and as you said, yeah, if you look at the levels in the LME and across the board, they're at lows we haven't seen in ages, so the setup's pretty good, the demand is certainly there with the electrification and everything, and similar to copper, there's just been underinvestment in the space for many many years, so long-term the projections and outlook look pretty good.
Of course, with our new releases we've been working on our Great Pyramid project, which has a historic resource on it, if it was in production it would likely be an open-pit, so the historical resources from surface down to 40 meters. Our goal in this drilling campaign, we're doing about 5,000 meters and we've reported just under 4,000 of them, is one to confirm the historical resource, but also see if we can grow the historical resource on that, so we're very pleased that we got additional good grades above the historical average. In this case we got 14 meters at about 0.36% tin, but at depth, so at about 128 meters down, so that's three times lower than the historical pit that was there. We are right on track to keep expanding this and once we get all the results in we'll make the decision whether we do more drilling or update our resource.
Gerardo Del Real: And just to be clear, can you provide a bit of context on the goal here? You mentioned the historic resource. It seems like you're getting better understanding of the distribution, the controls on the mineralization, but I know you have a very very clear goal with this project. Can you explain to the audience what that is?
Chris Donaldson: Yeah, the goal is first of all to hold the grade and possibly improve upon it, but really it's just to grow what we have. The drilling that was done on the property was halted in the mid-'80s. They were doing percussion drilling, so they only went down about 40 meters. We're going deeper and testing laterally and have been hitting everywhere, so it's just a matter of how much do we have?
In the back of our heads we are trying to grow this to about 20 to 30,000 tonnes that contain tin and that would put it in line with the project called Taronga, which First Tin bought a year or two ago for just under $40 million, and they're moving through their various studies right now on that project, so that's where we hope to get to. When we're sitting at about a six, seven million market cap right now, if we can get this to a point that would have a implied value of something 30 to 40 million bucks, that would be quite a little lift for us and so far it looks like we're on track.
Gerardo Del Real: Absolutely and it should be noted too that this isn't the only project in the portfolio, right?
Chris Donaldson: No, I think we now control five of the seven tin occurrences in North East Tasmania. Our other project is Aberfoyle and we acquired one called Rattler Range. Aberfoyle, who's a former producer, and we're doing basically target generation on those right now, so extensive soil sampling, basically setting them up to be able to work on in sequence after we finish our drilling here at Great Pyramid.
Gerardo Del Real: Awesome. Chris, thank you for the update. Great to have you back on. Given the market that we have, I think we're going to be chatting quite often, so always appreciate your time.
Chris Donaldson: My pleasure.
Gerardo Del Real: All right. Chat soon.
Chris Donaldson: Take care.