Vice President's Message
Exploration drilling on the JD claims adjacent to the METS is being undertaken by Freeport McMoRan during August and September 2018. Extensive exploration of the Lawyers mineral claims is being done by Benchmark Metals under an option granted to them by PPM Phoenix Precious Metals Corp during 2018 and 2019. The success of these projects will directly impact interest in Guardsmen's Ranch claims which sit with a 43 101 report already completed including drill ready targets.
The company's activities through 2015 have involved some work programs to advance exploration and contact with various parties regarding the potential of the Toodoggone given the publicized success of Aurico Metals at Kemess East.
As a result of claim acquisition by management at the Ranch claim group over the past several years, the land package assembled by the company has expanded to include all but the Metz mineral lease on the south east to the top of Albert's Hump in the north west basically down to the border with PPM Phoenix Precious Metals Corp.'s Lawyers mineral claim group.
As a result of cooperation between PPM and the company, the company was able to extent its mineral claim tenure over the whole of the Ranch mineral claims to at least 2023.
The company's Dome mountain mineral claims were further explored in 2015. The Dome mine was not permitted in January 2016, a significant time after anticipated permitting. The Metal Mountain website provides some insight into the delays in production. In addition, Nicola Mining Ltd. is processing ore from the Dome mine at its Craigmont property near Merritt BC. The NSR will apply to any ore that is produced from applicable mineral claims whether milled on site or at a custom mill site such as Nicola. Once milling operations commence at Dome mine and operations are in the ore originating from claims sold to Metal Mountain/Gavin Mines by Guardsmen, then the company's NSR will come into play providing the company with an ongoing revenue stream, subject to all the normal risk factors.
The company’s activities in 2012 enabled the preparation of two 43 101 complaint reports recommending work programs on its prospective Ranch/Al and Zinc Bay mineral claim groups. In addition, negotiations and agreements with Gavin Mines Ltd. have placed the company in a position of potential buyout of the company’s Dome Mountain claims and NSR in early 2013 pursuant to an option agreement. Ongoing relations with BCGold secured the company continuation of the option payment scheme pursuant to BCGold’s agreement with the company to purchase the Engineer/Gold Hill claims; however, the company has provided BCGold with several accommodations due to its inability to meet the annual requirements for payment and work. This is an ongoing issue which the company is working on resolving. In addition we do retain a 3% NSR on the subject claims.
If the funding climate for junior exploration companies improves in 2017 then the company is positioned with an attractive and ready mineral claim inventory for exploration and exploitation. The company will implement aspects of its permitted program planned for the Ranch/Al claims in any event in 2017.
The Deer Horn claims, due in part to the experience of management, by bringing DH core back to Vancouver from the site, are positioned for evaluation and potential exploitation pursuant to Deer Horn Metals Corp.’s efforts (details of which are available on their web site and corporate disclosure documents).
The company’s transfer of its Lawyers mineral claims to PPM Phoenix Precious Metals Corp. has resulted in shareholders having the benefit of preferred shares owned by the company in PPM as well as the shareholders in the company owning equity shares in PPM. PPM has accomplished extensive mapping and evaluation of the Cliff Creek mine and associated mineral occurrences. A drill program in 2015 produced a 434 101 resource estimate for Cliff Creek. The shareholder base of the company increased in order to finance the drill program. 2017 could see follow-up of de-watering efforts under the previously expanded approval obtained from government and consequent confirmation drilling and bulk sampling as warranted. Interviews were conducted with former Cliff Creek mine geologists and efforts toward financing have yielded potential partners.
Management has continued to consolidate mineral tenure in and around its preferred exploration targets.