Mines D'Or Orbec Inc. (BLUE) Earnings Call Transcript & Summary

Good morning, everybody, and welcome to our next presentation with Blue Thunder Mining Corp. Presenting on behalf of the company is Robert Cinits, President and CEO. Rob, go ahead.

Hey, Derek. Thanks so much, and thanks for having us here. So, yes, we've got a short time slot here, so let's get started. Just first, I'll mention that we will be making some forward-looking statements today. So please log on to our website and download our presentation and can read these over. So just hit on some highlights here. We're in the Chibougamau/Chapais mining camp of Québec, a very large land position, among the largest of all companies there, about 51,000 hectares. On strike and nearby the recent discoveries by IAMGOLD of Nelligan, 3.2 million ounces and Monster Lake, just under 0.5 million ounces, higher grade, about 12 grams and Québec is just a great place to be. So one of the big highlights I just want to start with is we just put out a release yesterday, announcing our initial drill holes at the Muus project. We did make a new gold discovery, some sediment hosted mineralization that we encountered, 2 zones were cross. The upper one was 1.2 grams over 3.7 meters with a slightly higher interval of 3.4 grams over 0.6. And just below that, about 8 meters down another 3.2 meter wide interval with 1.67 grams, including 3.74 grams over 1.1 meters. This is really important and significant for us because it tells us that, that sediment hosted mineralization, similar to what they're getting at Nelligan and nearby showings is continuing up to the West, Northwest onto our property. So I'll get into some more details here in a second. Earlier on, last year, we did trenching at one of our other main properties called Fancamp, got some pretty interesting results on surface, a lot of high-grade gold results. And we followed up with some drilling and got some interesting results, including about 7 grams over 0.85 meters and 4.7 grams over 1 meter. Late last year, we did a $2.4 million private placement, and that will fund most of our exploration for today. So we're in a good place. So just quickly on the company. We trade on the Venture Exchange, the Toronto Stock Exchange Venture, under the ticker symbol BLUE, and we're also on the OTCQB. Currently trading in sort of the $0.08 to $0.10 range, 102 million shares outstanding. Market cap is just under $10 million. And as of our last reporting quarter, we had just under $2 million in cash, but that doesn't include our recent financing. Main shareholders, Red Cloud 33% are institutional investors, O3 Mining holds 8.2% of the company and Board and management 8.1%, and the rest is held by retail and other groups. So this map quickly shows our land position. Up in the top, you'll see a large oval there, and that is the historical Chibougamau/Chapais mining camp, where 3 billion pounds of copper and 4 million ounces of gold were historically produced. Below that, the large oval is what we call the Chibougamau Gold District. And this is highlighted by the recent discovery of Nelligan, which I mentioned earlier and Monster Lake and various other historical showings, old mines in the district. So our properties are shown in blue. So we're highlighting the Muus property, the Fancamp property, the Nisk, Moose East and up here Embry, which shows it between these 2 ovals, but it actually is really in the same mining camp. So our -- we call these 5 properties together, the Muus Project. And as I said, there's 5 properties there, and we're looking primarily for gold, but there's also some good indications of base metals, copper, lead and zinc in the property, which I'll talk about in a second. I think one of the big highlights is there's a lot of major regional structures that cut across our property, the Fancamp deformation zone, the Guercheville deformation zone and a trend that goes through Philibert and Joe Mann mines. And these cover 12 to 18-kilometer segments. These deformation zones are very important because they actually are the plumbing systems for gold in the district and are responsible for a lot of the mineralization that is adjacent and nearby to us. Our property has been explored in the past, but a lot of that exploration was done about -- up until about the mid- '90s when gold was historically in the $350 range. So a lot of showings and prospects that we're pretty excited about now were shrugged off and walked over by the old timers. So one of the big challenges, though, is that we are in the Abitibi. There's not a lot of outcrop exposure, I would say, less than 2% over our entire property. So that's a challenge. We need to use modern techniques, geophysics and other modeling techniques to predict what's at depth followed by diamond drilling. It's also an opportunity, though, because a lot of areas were probably walked over in the past. So this map here shows some of these big structural trends that I was talking about. You see that Guercheville coming right through the middle of our Muus block, right past the Nelligan deposit, that's the 3.2 million-ounce deposit and onwards. In the middle of our property, that Guercheville splays into the Fancamp deformation zone and that goes right through our Fancamp property and through the Philibert, Joe Mann trend. So all of those yellow dots are historical gold showings or occurrences. The rectangles are historical mines or resources. So you can see there's a lot of activity in the area. Up here, this green oval here, which is a -- it was deemed as a lower priority for us, but certainly something that we're curious and interested to follow-up on is a VMS belt and these are Volcanogenic massive sulphides, and these can be mineralized with copper, lead, zinc, gold and silver. And this is a historical area that was looked at in the past, and we will be spending some time exploring in this district, especially with copper north of $4. Now so our main priority areas we're showing here. #1 was Fancamp, which we drilled last year. #2 follows that entire Guercheville deformation zone through our property. And the third priority areas where the Fancamp deformation zone and the Philibert-Joe Mann trend start to merge together, and there's a lot of structural complexities there, a lot of nice traps in areas that gold can accumulate. So just an overall summary of last year, we went public just about a year ago through an RTO and got listed on the Venture Exchange. We continue to expand our holdings up to our current 51,000 hectares. We acquired the Fancamp and Embry properties from O3 Mining, did a lot of compilation. We raised $2.3 million last summer, and that kicked us off for our first program, got our Québec-based team together and did some drilling at Fancamp, 14 drill holes, a lot of trenching, did some regional prospecting over the rest of our property and some geophysical grids. And this was followed by 6 drill holes on the Muus property, which I mentioned earlier, right near the end of the last year, and our assays just [ trickled in about now ]. So things have really bogged out as far as laboratories go. Finally, we raised about $2.4 million right at the end of last year through a private placement, most of that flow through. So all of that's going to go into the ground and support our exploration for this year. Finally, we did our OTCQB listing late last year as well. So what are we planning for this year? We're doing an extensive 3D modeling program. This will build a very detailed litho structural model, taking into account all of our airborne geophysics that we've done over the property, it will also incorporate a lot of the historical sampling that's been done and build that into a model. We're also going to do regional soil and till sampling programs as a way to evaluate a lot of this area that is -- doesn't have rock exposure. And we'll do more regional prospecting, mapping and trenching over some of the highlighted areas that come out of the till program. We'll also do more geophysics. We'll do IP and some other surveys over selected areas and diamond drill test some of these main targets. So we're looking for Metasedimentary-hosted disseminated gold mineralization, very similar to the Nelligan deposit. We're also looking for typical Abitibi gold style mineralization, higher grade, narrower, compliant more to veins and [indiscernible] systems. And this is similar to the nearby Monster Lake and Philibert deposits. And we'll also look for VMS deposits with associated copper, lead, zinc and gold mineralization. So let's talk about really quickly what we did at Fancamp. This is the property we acquired from O3 Mining. Historical explorers found a 2-kilometer long vein trend. They had drilled about 100 meters -- 100 drill holes into this, but very, very shallow holes, very few holes deeper than 100 meters. We went back in there. We opened up some new trenches. We found that there's a zone about 30 to 100 meters wide of -- within that are several distinct veins. So the vein -- the zone itself is not 100 meters wide mineralization. It's sort of a corridor with distinct veins in it. Very structurally controlled and some potential shoots at some of these key areas, mainly the A and B zones, but D and E has seen very little information. We did some surface trenching to uncover surface exposures and followed up with 14 drill holes. So this map here shows the domain A, B and D zones. You can see some real jogs in the vein corridor, just showing in purple. And this is where the blowouts are or the dilation zones that have allowed the gold mineralization to be deposited. We -- the blue holes are the holes that we drilled and the gray ones are the historical drill holes. Some key intercepts or takeaways rather are 11 of the 14 holes that we drilled did return anomalous gold values between 0.5 and almost 7 grams tonne per tonne over 0.5 meter to up to 4.7 meters. And a lot of the zones that we did uncover do remain wide open. We're building a big structural model there to better understand it and better predict where some of these pledging or systems -- sorry, mineralized zones go at depth. So we'll be back into that area this year. This just shows some of the highlighted drill results, which you can look at a little later. And these maps sort of zoom in on the trenching that we did, which is shown in green or blue drill holes and some of the interpret vein systems that are projected to surface within the purple vein corridor. And this is the B zone, same sort of thing, a good continuity on these veins. I think there's a lot of room to move on this. And finally, the C zone here, very similar. This intercept tier of almost 7 grams over a meter. This is wide opened for almost 400 meters to the south. And similarly, no exploration has been done for almost 900 meters up to the next zone at the E zone to the Northeast. So lots of room to move on the Fancamp property. Just want to highlight really quickly what we did -- what we just released. This is the Muus property. I talked about the Guercheville deformation zone. We put a couple of grids in here, sort of zeroing in on some of this historical till work that was done that showed some good gold anomalies right on the Guercheville deformation zone, but also targeting that sedimentary package that extends from Nelligan up towards the Northwest. And we certainly got some exciting results out of some of our drill holes and good anomalies, a lot of areas that we need to follow up on. This is highlighted by hole 1 that got 6 meters of just under 1 gram, but 3.7 meters. This includes 3.7 meters of 1.2 grams and a little bit lower down 3.2 meters of 1.67 grams. So grades that are typical of Nelligan not quite the wits yet, but this is 1 drill hole. We've got a lot of room to move, a lot of work to do to figure it out, but we were really excited about these results. So just quickly looking at some of our competitors nearby, Vanstar holds the -- is in joint venture with IAMGOLD and Nelligan and Dore Copper holds the Joe Mann deposit, little bit to the east of us. And Northern Superior immediately to the south of us with their [indiscernible] property and other properties throughout Québec. All of these trading in the $40 million to $94 million market cap, I think with some good results out. We'd like to see some momentum in that direction. Strong management team. Chad Williams, is the Founder of the company. And also, he is the Chairman of Red Cloud, the host for this conference, myself, Donna McLean is the CFO and on the Board, a real great mix of technical backgrounds and capital markets. And so really excited to have everyone on board. So really, just a quick takeaway. I think we're in an amazing area. Québec is a great place to be. A lot of historical production in the Chibougamau camp and some new discoveries being made. Last year, we did an exploration program with trenching, and we found some high-grade at Fancamp and also an exciting new discovery at the Muus property. We raised $2.4 million, so we're ready to hit the ground in 2021. And we've got a great team put together, a good mix of technical, financial and strategic experience. So how am I doing for time, Derek?

You've got about 4 minutes left. So it's a great time. We have -- actually have some time for some questions now, which is good.

All right.

So I think, obviously, I guess, one thing that investors have seen across all companies is that results have been slow to come in from 2020 programs as -- because of COVID-19. Obviously, you guys had some results out, I guess, this morning. The -- what's -- is this the last of your 2020 results? Or is there still more data to come?

Yes. This is the last of the drill results. We released all of the Fancamp drilling earlier and the Muus drilling was the last drilling that we did last year was just before Christmas. So that was just returned. One thing I must point out is that we still don't have all of our 40 multielement ICP data, which brings in copper, lead, zinc, trace elements and things like that. And we're still -- even for Fancamp, we don't have our full database of ICP back yet. So we haven't really released anything on that. But that's going to be more for trace elements and trying to zero in on alteration zones and things like that. So it's slow. Every company, I think, is in the same position. Labs are just bogged down. But we just want to make sure that we get good, solid results that we can rely on.

Yes, absolutely. And then obviously, that leads to my -- into next question as to for the 2021 program, when do you expect to sort of beyond the ground working and when can investors expect first results?

Yes. Good question. We do have guys on-site right now. We're still in a fairly strict COVID protocol, but we have a very strict program in place in terms of how we are controlling that. We are preparing access right now, cleaning up roads and access so that we -- as soon as the snow starts to melt, we can get in there and start our regional till soil programs and prospecting and things like that. While there's still ice and snow, we're contemplating if we can possibly get a rig in there. I know they're really bogged down. I mean it's like labs getting rigs these days is really, really tough. So it might have to come a little bit later into the summer, our first drilling, but you can expect a lot of background activity starting here fairly soon, which is all going to be really important to uncover the overall story about our huge land position. And in the meantime, we're also doing this 3D modeling, litho structural modeling, this is going on in the background as well. So it will help with targeting.

Right. Yes. And I guess it's the investors look for the drill results, but it's all -- it's the feet moving under the water that they don't see, try to get to set up the targeting and build the models and get to that point, which a lot of companies do have to do -- everyone has to do. Anyways, with that, thank you, Rob, for presenting today. And thank you, everyone, who attended. We invite you to join -- go over to the next presentation, which is Compass Gold. Thank you.

Thanks, Derek.