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In 2011 Peter Epstein, CFA, left a $3 billion hedge fund where he was a senior natural resources analyst to help increase awareness of a number of natural resource companies in which he's invested in. 


Exclusive Chairman Interview, Albert J. Matter, NuLegacy Gold

Date: Sunday, February 21, 2016 9:58 PM EDT

Exclusive Chairman Interview, Albert J. Matter, NuLegacy Gold

Peter Epstein, CFA, MBA   epstein.peter4@gmail.com    @peterepstein2    Linked-In

Albert J. Matter, Director & Chairman (Strategic Planning)

The following exclusive interview of Chairman Albert J. Matter of NuLegacy Gold Corp(TSX-V: NUG) (OTC: NULGFwas completed in the week ending February 19th. The views, facts, opinions shared by Mr. Matter are entirely his own. Please see disclosure provided by NuLegacy at bottom of page. BIO from Company’s February, 2016 Corporate Presentation: As Chairman of NuLegacy Gold, Mr. Matter will continue developing the Company’s strategic agenda and ongoing business plans while supporting CEO James Anderson’s financing efforts and value recognition programs. [see bios of management team, Board & Technical Advisory Team] 

Albert has 40 years of diverse experience financing both public & private companies, and structuring / negotiating transactions with particular expertise in the mining industry. He has provided corporate finance, strategic planning, M&A and business development assistance to numerous corporations and high net worth individuals, frequently working with leading names in the Western Canadian business and investment communities. He is one of the Founding partners of National Gold Corp, (merged National Gold with Alamos Minerals Resources to form the successor company, Alamos Gold Inc) Gryphon Gold Corp & NuLegacy Gold Corp.  

All references to grades are for GOLD. All references to potential attributes of the Iceberg deposit are conceptional in nature. Please see links to additional information at bottom of page

Albert, what’s the latest on the Iceberg deposit? Please note near-term catalysts. 

AJM: The discovery of significantly higher, nearer-surface zones of oxide gold in the North Zone is a game-changer. The North Zone is open in most directions and represents a potential near-term, ‘starter pit’ development option for us.

Near-term objectives are to complete preparation and report on plans for the 2016 exploration program, in early March; commence our drill campaign when ground conditions are optimal, likely in mid-April; enroll a senior miner / investor to finance remaining exploration, likely in May / June; prepare Iceberg’s maiden NI 43-101 resource calculation, likely in August; and achieve a stock price that properly reflects the value that has already been created.

Objectives over the next 12-18 months are to complete the delineation of the Iceberg deposit and capitalize on its value through sale or merger with a capable gold producer.

In 2012 when the Iceberg Deposit was discovered, gold averaged US$1,660/oz. Is a resource target of ~100 million Metric tonnes, (Mt) grading between 0.9g/Mt to 1.1g/Mt, that special at US$1,225/oz. gold?

AJM: The Iceberg deposit is special! This 100 million (est) Mt exploration target was developed in 2013/14. Its potential is being updated to include the 2015 drilling results referenced above. When gold was US$1,660/oz. the cost of producing it was approaching US$1,200, whereas with oil at US$30/bbl, not US$105, steel at 1,500 yuan/ton, not 4,500, & copper at US$2/lb. not US$4, now the cost is nearer to US$750/oz. – especially where are deposit is located, in Nevada’s Cortez trend.

Our drilling costs are 65% of what they were in 2012, and we’re able to get the best drillers, resulting in better productivity, better bang for the buck. We now have 69 holes, as opposed to a single discovery hole. Our confidence level has increased significantly.

One of the ironies of Carlin-type deposits is that difficult drilling, due to highly fractured ground conditions, are the most favourable for the optimum deposition of higher grades. Our crew has been getting good to excellent recovery in these zones. A significant feature of these Carlin-type deposits (in the both the Carlin & Cortez trends) is that once you’ve found one, they are like the Duracell battery, they keep going and going and going…. [brief technical commentary on Iceberg deposit]

For example, deposits discovered in the last great exploration cycle of the late ‘80s / early ‘90s initially had resources of 1 to 3 million ounces. They grew to between 5 & 50 million ounces. [NoteSee link of Iceberg’s potential, particularly slides # 9 to 12 & slide 18]

In December, NuLegacy completed its Earn-in to 70% of the Iceberg deposit. Soon after, Barrick Gold opted NOT to, "earn back" to 70% by spending $15 mm over 5 years. Why should readers think that this was NOT a vote of no confidence by Barrick?  

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