Epstein-Research Blog | Exclusive Chairman Interview, Albert J. Matter, NuLegacy Gold | Talkmarkets - Page 2
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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. 

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Exclusive Chairman Interview, Albert J. Matter, NuLegacy Gold

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

AJM: No, it was not a vote of no confidence, it’s quite the reverse. [See helpful video clip of the Iceberg deposit]

Barrick has been an excellent partner on many levels. Their sharing of knowledge of the geology & deposits in the Cortez trend greatly helped our development of the Iceberg deposit. Barrick’s key insights and logistical resources helped keep our costs down and increase productivity on the US$5 million of qualifying property expenditures we made that enabled us to earn our 70% working interest.

Barrick’s geological staff in Nevada remains bullish on the Iceberg deposit. However, when big companies decide to cut back spending, it’s impractical for them to make exceptions, no matter how attractive a project might be. If you follow what Barrick has done this past year, and what Goldcorp & OceanaGold have done, they have returned to the notion that junior exploration companies are better suited and more motivated explorers than the Majors.

Barrick’s philosophy is to have a majority position and operatorship, and a minority partner helping to carry the load. That way, Barrick gets talented, highly motivated geologists and technical experts to prudently explore for the next elephant deposit. Witness the Arturo deal with Premier GoldRye Patch Gold (the Patty property), Quantum Pacific & NuLegacy Gold. 

Is it useful to compare NuLegacy to Gold Standard Ventures (GSV)? Both are Nevada exploration companies, both are sitting on large land packages. What are the main takeaways?

AJM: Yes, it’s a very useful comparison. Our, ‘cousins to the north’ are almost exactly north of NuLegacy in the parallel Carlin trend. In the face of this 5-year bear market, GSV’s CEO Jonathan Awde and team have done a marvelous job with their Railroad-Pinion project, overcoming innumerable difficulties, raising large quantities of cash and drilling many successful holes.

GSV has a head start on NuLegacy, though we believe we’re closing the gap. Both companies opportunistically acquired or optioned the largest independently owned (as distinct from the Majors who own most of the rest), contiguous land packages in their respective Nevada gold trends. GSV has 40+ sq. miles located on the lower end of the Carlin trend, with neighbouring deposits in the 2 to 5 million ounce range. We recently completed the earn-in to 70% of 38+ sq. miles, located on the lower end of the Cortez trend, with neighbours having between 15 to 21 million ounce deposits.

Since 1835, ~180 million ounces of gold have come out of the Carlin trend. The Cortez trend has produced ~40 million ounces since 1956, most of it since 1989 when our Chief Geologist, (COO) Dr. Roger Steininger discovered the Pipeline deposits (~21 million ounces and counting).

GSV’s exploration team boasts significant discoveries in the Carlin trend, while 3 of NuLegacy’s geological team are credited with the discovery of 3 of Barrick’s best performing mines. Dr. Steininger is credited with the discovery of the Pipeline deposit (thus establishing the Cortez trend), which started as a 1 million ounce resource and has grown to a 900,000 oz/year producer in 2015, with All-in Sustaining Costs (AISC) of US$ 603/oz. It has produced over 21 million ounces and is still running at ~500,000+ oz/year at AISC of about US$700/oz.

GSV has spent ~C$17 million to acquire, and ~C$45 million to explore, the Railroad-Pinion property. Since focusing on near-surface oxide material, GSV has established a NI 43-101 compliant resource in the Pinion deposit of 423,000 Indicated ounces(20.84 million Mt grading 0.63 g/t) and 1.02 million Inferred ounces (55.93 million Mt grading 0.57 g/t), and a deeper refractory sulphide deposit (the Dark Star) hosting an additional 0.375 million Inferred ounces (23.11 million Mt grading 0.51 g/t).

NuLegacy has spent ~C$7.0 million focusing on nearer-surface oxides, establishing an exploration target (conceptual in nature) of 90-110 million Mt grading 0.9 to 1.1 g/t, within a 3,000 meter structure. [Note: These figures are conceptual in nature and derived from a compilation of 149 historic and 34 NuLegacy drill holes in and around the Iceberg deposit. To date, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.]

To date, there are 2 areas in the North zone (covering circa 350 meters of strike) and a larger area in the Central zone (covering circa 650 meters of strike) where drill density is sufficient to support the planned NI 43-101 resource calculation.

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