Orestone Mining (TSX-V: ORS) CEO David Hottman on Upcoming Drill Program at the Resguardo Copper-Gold Porphyry/Manto Project in Chile
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of Orestone Mining (TSX-V: ORS)(OTC: ORESF), Mr. David Hottman. Dave, how are you today, sir?
David Hottman: Very good, very good. Healthy and happy in these difficult times. How are you doing, Gerardo?
Gerardo Del Real: As well, as well. Healthy and happy in these very, very interesting times just all the way around. Thank you for asking. Another thing that's healthy, I have to say, is the Orestone share price. You have one of the prettier looking charts out there. You recently hit 52-week highs and it's not a coincidence that you're going to be drilling what is a very large, potentially company-making target, the Resguardo copper-gold porphyry/manto project, which of course is located in northern Chile.
Can you give us a brief update on that, Dave? How are things coming along in preparation for the drill program?
David Hottman: We announced today that we have completed most of the drill pads, road rehabilitation, and preparation of the camp site for the drillers. We should be drilling here in the next week, which as you mentioned very exciting times. It's a long road to get here.
Gerardo Del Real: Let's talk about the target. I don't often say that the target could be a company-maker, but this has that potential. Of course we know exploration, we know the risk associated, but the bottom line is you and your team have done this before. Tell me a bit about the target and why the market, and yourself of course, is so excited about it.
David Hottman: I think what's exciting us, as well as astute watchers of the market, is that we have a scenario where there's previous mining on surface and in shallow adits. They are directly offset by a large geophysical anomaly, which is an IP anomaly. There are a couple of previous drill holes between the old workings and the IP anomaly – it was before anybody knew the anomaly was there – that hit 20 meters of 0.5% copper. There was some good 2.5% copper numbers in that intercept.
Over the top or on the surface, above the IP anomaly, we've got some big structural faults going through and on the surface you've got lots of alteration, oxide copper mineralization. So it's kind of like connecting the dots. That being said, as you mentioned we all know the risks of exploration. After all the science is done, when you start drilling it's up to Mother Nature, God and the Greek god of mining, whoever that was.
Gerardo Del Real: Well said, Dave. Well said. I understand the initial program will consist of a minimum of 1,200 meters of reverse circulation drilling, up to what, 5 drill holes?
David Hottman: That's correct. The initial plan is 300, 350 meters per hole. We have 600 meters of casing on site. We could go substantially deeper than the 300, 350 meters. It's going to be visual and we're going to be flexible along the way. We can go up to 2,000 or 3,000 meters and not blow the budget too insanely out. It'll double the budget. But the point is, if we're really into something, we've got the capability to keep going.
Gerardo Del Real: Excellent. You and I joked off the air, how efficient you are in your stewardship of the company, the share structure. Can you talk a bit about this drill program and what the initial cost looks like?
David Hottman: First off, the share structure, there's 38 million shares outstanding. In USD that would be $6 to $7 million market cap. The overhead in the company is very, very low. In terms of the cost of the drill program, we're budgeting approximately $150 per meter. So that puts us at an initial budget of $180,000 or $200,000 US dollars. We have just completed an $850,000 financing. We've got plenty of money in the bank to do the prescribed program as well as to double it, if we needed to. It's a big target.
Gerardo Del Real: Flexibility in these markets is a good thing. I want to thank you for taking the time and obviously invite you to come back once drilling commences.
David Hottman: Thank you very much. I will talk to you very soon.
Gerardo Del Real: Appreciate it, Dave.
David Hottman: Okay. Have a great day.