Today, we are sitting down with the Chief Executive Officer of Delta Resources (TSX-V: DLTA) (OTC: GOLHF) Mr. Andre Tessier to discuss the recent developments and what they mean for both the company and its shareholders.
- 1) On August 12th, 2020, Delta resources has recently announced that the company uncovered high grain gold from till samples at the Delta-1 property in Thunder Bay, Ontario with pristine grains accounting for 78% to 99% of the grains. What is the significance of these results and what do they tell the company in relation to further exploration? What are the next steps?
Andre: In a typical survey of this type, a gold grain-count of 40 to 50 is considered very good. At Delta-1, our preliminary till survey uncovered samples with up to 457 grains of gold in 10kg of sample. In addition to this exceptional gold grain-count, other samples in the same area returned 117, 97, 77 and 50 gold grains.
As for the pristine nature of the gold grains, this is an indication of how close the samples were taken from a bedrock source. So glaciers basically scraped rocks and minerals from the bedrock they laid upon, as the glaciers advance, they drag this material (we call till), grinding it as it carried it down-ice. Gold is a very malleable material and you can very well imagine that gold grains that have travelled under glaciers for a long distance would be well rounded and dispersed due to the transport medium. In contrast, pristine grains show delicate features that tell us the gold grains have not travelled far from their source. In this case, perhaps less than a hundred metres.
Combined, the location of the anomalous till samples with quantity and characteristics of the gold grains, tell us we are very close to a bedrock source of gold that is very rich and most important, located on the Delta-1 property.
The next step is to go in the field and try to see from surface rock sampling if we can find that source of gold. If that’s not possible due to a lack of outcrops, then this will be drill-tested in the winter.
- 2) On August 18th 2020, Delta Resources announced that it has confirmed the presence of VMS at its Delta-2 property in Chibougamau, Quebec. For investors that aren’t too familiar with Volcanogenic Massive Sulphide (VMS), could you explain in greater detail what the presence of VMS at your Delta-2 property means for the company and its shareholders?
Andre: VMS deposits form at the bottom of the ocean where volcanism is active at mid-ocean ridges. You may have seen these documentaries about “Black Smokers” at the bottom of the ocean, well this is how VMS deposits form. They have formed through time and are still actively forming now. The VMS deposits forming now and those we find in the Abitibi and in the Chibougamau area are exactly the same except for their age (the Abitibi VMS deposits formed approximately 2.7 billion years ago).
Approximately 1.5km north of the Delta-2 property in Chibougamau, lies the old Lemoine Mine; a VMS deposit of approximately 760,000 tons. With grades of 4.2% Cu, 9.6% Zinc, 4.2 g/t Au and 83 g/t Ag, Lemoine ranks the second richest deposit in Canada second only to the Eskay Creek deposit.
There are 3 important things to remember about VMS deposits:
The first is that VMS deposits typically occur as clusters. Canadian examples are the Noranda and Mattagami camps in Quebec, the Bathurst camp in New Brunswick and the Flin Flon and Snow Lake camps in Manitoba. These camps host anywhere between 15 to 20 VMS deposits, so having the isolated Lemoine VMS deposit by itself is highly suspect and we are looking for the rest of the cluster.
Second, within these camps of VMS deposits, there is typically a wide range of size of deposits. Typically, we encounter a number of small deposits of 1m tons and less, one giant deposit (60M tons and more) and a number of deposits on intermediate size ranging for example from 5 to 30MT. With Lemoine sitting at the small-end of the spectrum, Delta is looking for the large-size deposits that are missing.
Third, VMS deposits have relatively small footprints, but are very rich in metals. VMS deposits are what we call “company-makers” when the larger one are discovered. For example, to name a few, the discovery of the Noranda deposit (made Noranda the company) and the Kidd Creek deposit (made Falconbridge Copper which became Xstrata and now Glencore). That’s what Delta is looking for.
- 3) On July 28th, 2020, Delta announced impressive samples from its Delta-2 property in Chibougamau, Quebec which the company reported grades of 8.66% g/t of gold, 190 g/t of silver and 3.94% of copper. What significance do these finding represent for Delta Resources and its shareholders? How are they different from the VMS referenced in our second question?
Andre: The Delta-2 property is a very interesting one because we actually are exploring for two different types of deposits. As we discussed earlier, VMS deposits are one of the deposit types we are exploring for but in the southern part of the property, we’re also exploring for magmatic-hydrothermal gold deposits that are associated with the a large intrusive body located in the southern portion of the property.
In contrast to VMS deposits, the mineralizing fluids here come from the intrusive body when it cooled-off.
As you stated, these results are incredibly significant since this is virgin territory. The Snowfall gold discovery, where these assays came from, is a brand-new discovery and the only drilling ever performed within a 3 km radius consist of short holes (less than 100m) drilled by prospectors more than 60 years ago.
- 4) Delta Resources recently added Ms. Sara Paquet to its Board of Directors. What skill set does she brings to the Delta team in assisting on furthering its operations?
Andre: Sara is an extremely smart lady with tons of international sales and marketing experience in a field of drilling equipment which is very close to the mining industry. Her international experience and deep knowledge and understanding of the economics of exploration will bring fresh new ideas to Delta and enhance our commitment to a well-rounded and independent board. We also know that Sara’s background will help us to market the exceptional exploration potential at Delta.
- 5) Delta Resources previously sold its Bellechasse-Timmins property for CAD $1.7million, of which, the company has already received $100,000 as its first payment with an additional $250,000 payment expected on October 14, 2020. Why is this sale significant to the company and what will the proceeds of this sale be used for?
Andre: Anytime non-dilutive funds come into the company, it is significant. In this case, $1.7 million is very significant. Considering the number of shares outstanding at Delta, $1.7M is the equivalent of $0.05 per share. I should also remind you and your listeners that Delta is keeping a 1% NSR royalty on any gold produced from the property.
In terms of our vision at Delta, the funds are very important because they allow us to focus on exploring our very high potential Delta -1 and Delta-2 properties. With drilling starting this month, these funds will come in handy.
- 6) Just over a week ago on September 30,2020, Delta Resources completed a financing of approximately $1.56M of which four Quebec Mining focused institutions participated. What does this mean to Delta and its shareholders having Quebec institutions partake in the financing and what does the company intend to do with the funds it recently received?
Andre: The fact that four large Quebec institutions participated in our financing to the tune of $540,000 is a real validation of Delta’s solid work to get to this point. Delta prides itself on having a very solid technical team with our VP Exploration Michel Chapdelaine at the helm of our exploration efforts. Having these four institutions carry out their due diligence on Delta and then choosing to invest is a true testament that we’re heading in the right direction and that their technical teams are just as excited as we are about the potential of our exploration projects.
As for the use of funds from this financing, I say three words: drilling, drilling and drilling. We’ll be starting to drill in October at Delta-2 in the Chibougamau district with a 5,000-metre program and we’re planning a 2,000-metre program at Delta-1 west of Thunder Bay starting early 2021.
- 7) With all the amazing developments currently underway at Delta Resources, what can investors and shareholders of Delta Resources expect to see from the company over the next few month and into 2021?
Andre: Well, as I just mentioned, we’re starting a drill program at Delta-2 this month and a concurrent drilling program at Delta-1 in January 2021. These drill programs will be carrying on probably until March of 2021 so to our investors, look for a steady news-flow until at least the month of April 2021. And with a bit of help from mother nature, we are confident that some of the news could be very impactful.