For many explorers, the past few years of the bear market were a devastating time. But for Greg Beischer, his partner Phil St. George, and the Millrock Resources team, it was quite the opposite.
The former Inco Ltd. geologist, CEO Greg Beischer, has experienced much of what the cyclical mining business has to offer. After nearly 3 decades in mineral exploration, he had learned as tough as the bear markets are, they present the perfect opportunity for a generative exploration company, following the project generator model.
“It took some guts and a lot of patience, but the downturn presented opportunities to acquire projects that would have been impossible to get at any other time” said Beischer, “so we’ve spent the last three years focused on just that – acquiring high quality assets at a very low price.”
While many in the industry were hunkered down, Millrock went on the offensive, acquiring 27 projects in just over 3 years. When prompted about the number, Beischer remarked “we all know that investing success is simple. Buy things when they are low. Sell them when they are high. Whether we are talking stocks or mineral properties, they just didn’t get much cheaper than at the bottom of that bear market in 2015, so we took the cash we had and carefully deployed it.”
Recent acquisitions for the project generator include a large group of claims in B.C.'s Golden Triangle, neighboring Pretivm Resources and its Brucejack gold project – a deal that took ten separate agreements with prospectors and vendors. Beischer knows that consolidating this ground would have been almost impossible to complete under any other market condition than those that prevailed in late 2015.
The plan in the Golden Triangle mirrors the successful strategy Millrock has employed on its other projects. As a project generator, Millrock diligently seeks partners to minimize costs to shareholders, while increasing their odds of taking part in a major discovery by advancing multiple projects simultaneously.
“Rather than raising large sums of money and betting it all on a single high-risk drill program” Beischer said, “Millrock increased its chances of discovery by advancing multiple projects at once, using funding from multiple partners to pay for exploration.”
For the company, it provides a sustainable way to fund operations and gives multiple opportunities to discover an ore body. For investors, it means exposure to the upside of multiple exploration projects while minimizing the risk of any single project failing, or dilution from multiple financings to fund exploration. And as the market begins to heat up, it looks like this strategy is beginning to pay off.
In northern Mexico, Millrock has partnered with Centerra Gold on two projects. Centerra is funding work on the Los Chinos and Los Cuarentas gold projects. Drilling is anticipated to start in September.
Up in Alaska, Millrock has partnered with Australia’s Newcrest Mining, one of the world’s largest gold mining companies. The partners are exploring on a large claim block situated adjacent to the Sumitomo-owned Pogo gold mine.
And now Millrock is prepping ground in the Golden Triangle (British Columbia) for the right partner. Having yielded spectacular deposits like Pretivm’s Brucejack and Seabridge’s KSM, this premier exploration jurisdiction is really heating up. Beischer seems quite optimistic about the likelihood of finding partners to fund exploration on these projects.
“Through the downturn we positioned ourselves well. Now, as the markets begin to heat up, we’re seeing partners come back to fund exploration and drilling. Each hole we drill presents the opportunity to make a new mineral deposit discovery that could send our share price soaring and reward our shareholders. We will be doing a lot of drilling in the coming years.”
For more information about Millrock Resources Inc., please visit: www.millrockresources.com
The company paid consideration to SNN or its affiliates for this article.
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