RE: Paterson Project20 Sep 2021 14:35
Cont..
Power Metals don’t look, buy, curate, says Johnson. “We don’t adopt the usual junior mantra of picking up a project just because it’s popular and then just leaving it there and hoping the market likes it and buys our stock. If we go into something we’re looking to build a strategic business out of it.”
Away from Canada,“everything is happening” at the company’s Tati project in Botswana including prospecting, mapping and sampling which has resulted in multi-kilometre, multiple anomalies for nickel, arsenic and some ‘fantastic’ gold in soils. “Right now the team are in the field doing geophysics. By the end of the month we’ll be drilling with reverse circulation drilling some of the key targets there.”
“In my experience it’s the fastest exploration programme I’ve ever seen from acquisition through to drilling key targets. What can it reveal? We are hopelessly optimistic. We love the Tati project and we think it’s one of those great opportunities, but until we put the drill holes in we won’t really know.”
Johnson adds the mischievous caveat by deliberately using an over-used corporate cliché. “Yes the team are excited.”
As for comparing Power’s Australian Wallal Project to Greatland Gold’s Havieron project, Johnson says that some investors should stop being sensitive and proprietorial because geology is geology and if there are similarities between two company’s projects, then so be it, but he is making the comparison from a position of intimacy. He was on the board of Greatland Gold at the time Havieron was the subject of a breakfast board review and then “People were more interested in their bacon sandwiches.”
How things have changed over the past five years. “Little did we know what a monster that would become,” says Johnson. “You have to forgive me for daring to dream that we may have something similar in the Patterson project that we have with FDR – First Development Resources.”
He then unashamedly borrows that analogy by telling investors that he’s building Power Metal Resources into its own ‘monster.’
It will take cash as well as being canny to create that monster, and Johnson is doing that by spinning out projects into their own listed vehicles so he doesn’t have to come to market cap in hand.
“We’re at 14 months since the last financing. By doing these spin outs and creating the value now, I’m effectively providing the finance for a much larger business with much larger cash demands in the future as the exploration side of the business delivers a number of successes.”
“We are not normal. We’re going for a big scale organisation with huge levels of activity,” and then Johnson gets emotional. “We’ve got an amazing team. Someone else is coming soon that’s going to add major value to our organisation from an operational management perspective. It’s fabulous.
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