Joining us today is the President and CEO of Sun Metals Corp. (TSX-V: SUNM)(OTC: SMTTF)
One of the most exciting stories of 2018 is ready to follow up on that success with an aggressive exploration program that could be a company maker. Read on to learn about what happened last year and where Sun Metals goes from here.
To your wealth,
Gerardo Del Real: This is Gerardo Del Real for the Outsider Club. Joining me today is the President and CEO of Sun Metals Corp. (TSX-V: SUNM)(OTC: SMTTF), Mr. Steve Robertson. Steve, how are you, all the way from London, today?
Steve Robertson: I'm doing great, Gerardo. How are you?
Gerardo Del Real: I am well, I am well. I'm excited to share the Sun Metals story with listeners and readers of the Outsider Club. Now for those that may not be familiar, could you provide a brief background into your flagship? Because the bottom line is — and that's the Stardust Project — the bottom line is last year you hit, I think it was the best copper intercept in all of Canada. It was 100 meters grading nearly 5% copper equivalent. That was pretty significant because the average width of the historic resource that was in place, I believe was around the four-meter mark. So I want to get into what's next and how we follow that up, but I'd love for you to introduce the story a bit.
Steve Robertson: Sure. Well, I'll tell you, this is a very exciting exploration play for us. I don't think that there's anything more exciting out there for the 2019 exploration season. This is truly a disruptive discovery. We found something where it shouldn't be. We found a major carbonate replacement system in northern British Columbia. Most of these types of systems are found down in northern Mexico. We hit an intercept that would actually stand out in any one of those big systems down in Mexico.
So this is very exciting for us. You're right. It's a game changer in the fact that the new zone that we've hit is 100 meters of mineralization, as opposed to the average thickness of 4.3 meters. So we're very excited to get out into the field and get the drills turning so we can see how extensive this is.
Gerardo Del Real: You are not the only one that is excited, nor is the team the only ones that are excited. You attracted the interest of Teck. Can we talk about that a bit? Because that's a big deal.
Steve Robertson: Yeah, it is a big deal. After we released the results last December, we went and talked to Teck and asked if they wanted to participate in a financing. They were very quick to say yes they did. And we actually raised that money at quite a premium. Teck paid $0.28 on the back end when we were only trading at $0.22 at the time. And because of the structure that we use, the charity flow-through structure, we were able to raise the front end at $0.413. So that was actually almost a 100% premium over our trading value at the time. And I think that really turned a lot of heads, got a lot of people to pay attention to this story and start to follow what we're doing.
Gerardo Del Real: And shares are trading near the $0.60 level Canadian as we speak. So that's obviously worked out in the short term. Teck is not into this for the short term, nor are you. So tell us a bit about the Stardust Project. Tell us about the history of it, and then let's talk about what everybody wants to know. How are you going to follow up that 100 meters of nearly 5% copper equivalent?
Steve Robertson: Yeah, okay. Well, it's a historic project that's been around for a while. It was discovered back in 1944 and over the years there's been 87,000 meters of drilling and 427 drill holes on the property, which was great. It really was a sizable system already. There was a 2.2 kilometer-long corridor of mineralization that was continuous from one end to the other. But the fact that we're now down to this zone where we've got thicker mineralization, this is characteristic of what happens when you get into the more proximal part of the system where you're getting closer to the source of the mineralization, the source of those mineralizing fluids.
And so what we're going to do this next season, hole 421 was the only hole to penetrate through the fault that was just above that zone. And so now we've got 360 degrees of open ground around that and we're going to go in with a directional diamond drilling technique so that we can actually steer the diamond drill and very precisely step out where we want to so we can continue to trace that mineralization out and find out how big it is.
Gerardo Del Real: The project is located in northern British Columbia. I know that May typically is about the time that you're able to get back in there. What kind of timeline are you setting for the next stage of the exploration program and when can we expect to see drills turning?
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