Categories: Precious Metals
Topics: Gold Stocks

T2 Metals (TSX-V: TWO)(OTC: TWOSF) CEO Mark Saxon on First Field Program at the Shanghai Gold-Silver Project, Yukon

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of the very undervalued T2 Metals (TSX-V: TWO)(OTC: TWOSF), Mr. Mark Saxon.

Mark, how are you today?

Mark Saxon: Hello. Good afternoon. Great to talk. I'm doing well coming into a weekend here in Australia, so no complaints.

Gerardo Del Real: No. Listen, enjoy the weekend. We're doing the same here heading into... We're not heading into, we have Halloween today. But look, the reason that you and I are chatting is you had a couple of releases here recently, some news. The most compelling piece of news to me is you completed the first field program at the Shanghai Gold-Silver Project in the Yukon. And so, I mentioned off the top that I think T2 is severely undervalued. And I would love for you to touch on the value proposition because I know with gold at $4,000, and with silver at $47, $48, copper making to all-time highs, it's getting easy to justify companies running and doubling and tripling in price.

That hasn't quite been the case for you yet. I've been preaching to paying subscribers on the publishing side, on the newsletter side of the business, to look for value and to not chase companies. But to look for companies that have management teams that know how to explore, are technically savvy, have multiple projects, and are in good jurisdictions. You check all of those boxes. Can you explain to the fine folks that are listening to this why they should give T2 Metals a look?

Mark Saxon: Yeah, super. Thanks, Gerardo. That's a great introduction. And as you say, we've got a great team, based largely in Vancouver, and myself in Australia, and part of a larger group that's made lots of discoveries and involved in a range of great companies. So yeah, we're extremely confident that whatever happens in the gold and silver market, we'll be taking part in it, and we'll be finding projects that really deserves massive reratings. So I guess in this last week or two, we've seen a little bit of turbulence in the gold and silver market, and we pulled back a touch off that. So yeah, it's a good entry opportunity at the moment, I think, in T2 Metals. But our assets, really, are some that deserve high valuations, I think, as we move into the execution stage. So the two press releases that you're referring to, the most recent ones, both referred to our newest acquisition, which is the Shanghai Project, which is in the Yukon, in the Tombstone Belt.

So the Tombstone Belt, most people in mining and geology would've heard of the Tombstone Belt because of the recent discoveries in that region. So most notably, we're talking about Banyan Gold, which is very close to us. We're talking about Sitka, we're talking about Snowline. Really major discoveries have been found in that region, and it was really underdone. Work in the Yukon, obviously it's a little more remote from other parts of Canada, but we're working in a place that... As I said, it's only six kilometers from Banyan Gold with 8 million ounces. We're 12 kilometers from the mine and mill that Hecla operates in Keno Hill. So we're really well located in the middle of that belt, and we're on a project that's never seen a drill hole.

In all directions, whichever direction we head from our project, we've got multi-million ounce mines. And we're sitting right in the middle of that with a project that's got great gold-in-soil anomalies, it's got some historic mining of silver, and a place that really has been underdone and undertested. And there's some good reasons for that, which we can touch on.

Gerardo Del Real: No, let's touch on that. And then the $64 million question, when does the drill bit start turning? I know that you are very meticulous and methodical about defining your targets, right? You do that as well as almost anyone in the business, and I've known you for coming close to two decades now.

So, what is happening now with the targets? And then, when do we get to find out what's there?

Mark Saxon: Yeah, absolutely. And the project we have acquired, which is Shanghai. Yeah, we can say we're always on the hunt for projects, and Shanghai popped up as one that really caught my eye as the right project in the right place but underexplored, and we've picked up this project from a very well-known prospector discoverer in the Yukon named Shawn Ryan. And plenty in the industry will know Shawn. Shawn's made many major discoveries and sold major projects, and is incredibly passionate about exploration as a business. He's a great guy to work with this on our advisory board. So, Shawn picked up this project in 2004, and it was a project that he was always going to come back to and work for himself and for his family. But yeah, progress got in the way, and Shawn made some other discoveries, particularly the White Gold District. The Coffee Project was one of Shawn's projects, discovered and sold some really major projects and development stories. So, Shawn never made it back to Shanghai.

And so just in the last six months, he approached us through mutual friends and said, "How about you guys get involved in Shanghai?" So, Shawn has completed more than 4,000 soil samples on the project, had taken some rock samples. And in that soil data, we can see two really strong targets. So, one is a definition of a silver trend. The silver trend is very similar geology to the Keno Hill mines. So, we sit in a rock sequence called the Keno Hill Quartzite. There's been some extremely high-grade samples, ounce grades of gold, multi-ounce grades of silver, within the trenches in the area of these soil anomalies. So yeah, really exciting targets, essentially walk-up drill targets. And then another area, which is a little bit further north, in what we call the Hanging Wall Rocks. And in the Hanging Wall Rocks, we're seeing gold up to 6 grams per tonne in soil samples. That defines a really nice anomaly.

So in our last program, we've had people out on site looking in the areas of those two anomalies and grabbing rocks, taking extra samples to validate. Making sure that everything is the same, which it is. We're seeing some sulfide-bearing rocks. We're seeing quartz veins in rocks. We're seeing lots of structure. So, there's not much missing now in that exploration story as we put the targets together.

And I guess since Shawn's been working here a while, he's already applied for the class 3 permits, which means we can drill tomorrow if we wanted to. And the access... And that means building access. If we wanted to put a camp, we could. And we can drill a lot of holes and drill pads on the project already. So yeah, the project really is lining up as something that could be a major discovery.

Gerardo Del Real: No, listen, that would make for an immediate re-rating, a pretty significant one. And again, just to be absolutely clear, this isn't the only project you have, a project with a significant resource in place.

Can you touch on that before I let you go, Mark?

Mark Saxon: Yeah, absolutely. Our other project that we've worked on for the last 12 months and we acquired in 2003 is a project called Sherridon, which is in Manitoba, in the Flin Flon District. And that project, it's a great project I love working on. I love the people. We've got five historical resources that are copper dominant. In total, about 25 million tonnes, at a copper equivalent grade of getting close to 2%. So really, strong historical resources.

We're a little less focused on that now because we're moving into some of the more advanced parts of that project. Which means moving into resource recalculations, moving into PEA, talking to partners and off-takes, and metallurgical work. So, we're in a different phase of exploration at Sherridon.

But great project, great people. We've got excellent support from the First Nations who... It's really unusual to speak to the First Nations People, and they say, "How soon can you please be mining this project? We want jobs, we want skills, we want investment in our region." And so really, it can put that project on a fast track. And I suppose another great advantage of Manitoba is this project has a train line running through the middle of the project, so it can be really CapEx light when you think about a project that links back into the other mining infrastructure, Snow Lake and Flin Flon in Manitoba. It's a great project to move quickly on as well.

Gerardo Del Real: It's a lot of value for a market cap of...

Where are you today, Mark, give or take?

Mark Saxon: Give or take, let's say 9 or $10 million US in that range. We've got plenty of room to move.

Gerardo Del Real: Yeah, absolutely ridiculous. I remember the days of $1,000 gold where a management team like yours, alone, if you just had a shell, would command a market cap of 15, $20 million. Before you even announced the fact that you had assets, you have an advanced stage project, you have an earlier stage. But really, obviously, perspective for a discovery given that you're dead smack surrounded in the middle, and surrounded by a bunch of other discoveries and mines.

Folks, if you're looking for value, give T2 Metals a look. Mark, always a pleasure. Anything to add to that, sir?

Mark Saxon: Thanks, Gerardo. And as you know, we've got a great list of shareholders. Personally, I believe I'm the largest shareholder in the company, and only 42 million shares outstanding. So yeah, our ability to rerate is exceptional. And thanks for the opportunity to talk as always.

Gerardo Del Real: Excellent. Thank you so much, Mark. Chat soon.

Mark Saxon: Okay. Cheers, mate. See you. Bye.

Gerardo Del Real: Sure.

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