Worth going back to this interview with Jeff McKenzie with Proactive Investors back in 2015.
I think it explains what the company was trying to achieve with Juma East before its attention was grabbed by the seemingly closer to surface and more prospective Ema and Tres Estados land holdings.
BBX Minerals MD Jeff McKenzie In Q&A With Proactive Investors
Jun. 4, 2015 6:48 PM ET
BBX Minerals (ASX:BBX) strategy is to progress exploration activities at its prospective Juma East Epithermal Gold Project, which includes a targeted drill program at previously defined locations.
A rights issue to fund these activities has previously been announced and has received strong support from prominent global investment fund Drake Private Investments.
Proactive Investors is joined exclusively by BBX Minerals CEO, Jeff McKenzie. PROACTIVE INVESTORS: Welcome Jeff. What drew you the Apuí region and can you highlight the company's key exploration targets?
Jeff McKenzie: What drew us to the region was an opportunity to undertake a 75/25 joint venture on the Eldorado do Juma Project. Our chief geologist who was very familiar with the region was able to get into the area straight away and we started to do a lot of due diligence on Eldorado.
We then had a good look at Juma East, and we realised it was better positioned and offered a better opportunity over the right geological endowment to host world class gold and copper deposits.
We have undertaken a lot of work behind the scenes in obtaining the exploration licenses at Juma East and commencing greenfields exploration about two years ago. Based on geological and geophysical data and known presence of gold in garimpos, BBX considers Juma East is the best target in the whole region. Can you outline the exploration and development strategy at the Juma East Epithermal Gold Project and how it will be funded?
Jeff McKenzie: At the moment we are also evaluating two old workings in the southern most part of the lease.
We plan to drill our current defined targets and starting probably early in the third quarter, we plan to undertake an Induced Polarization survey to further narrow down the drilling targets.
We have funded this through the rights issue, which is still progressing. We have a shortfall that we are looking to place and that will provide us further capital for the initial drilling programme. Once we have the initial drilling results, we may look at a potential joint venture with another company to progress exploration right across the various targets we have. We have an opportunity to get a low-cost, low capex operation going and we are targeting that to try and help fund further development. Is BBX Minerals able to leverage off existing infrastructure at Juma East?
Jeff McKenzie: The Apuí region had only five thousand inhabitants back in 1998-99. It now has twenty thousand. Back then Western Mining (formerly listed on the ASX as WMC Resources) established a greenfields exploration program targeting iron ore, copper and gold.
Since then the area has developed with major hydroelectric plants built in near by Rondonia State and there are power lines programmed to supply energy to Apui that run close to our Juma East targets.
The Trans-Amazonian Highway is not far away, there is good dirt road infrastructure and then you have the Amazonas River and Madeira Rivers, which provide an additional opportunity.
The logistics are good in terms of getting to where we have our tenements and the opportunities. For investors who may be unfamiliar with Brazil, can you explain the operating environment?
Jeff McKenzie: Brazil has a strong mining culture and there are quite a few majors in Brazil. It has a well-defined mining code and the legal environment is good.
In the process of obtaining Juma East's exploration licenses, we made a successful application via the courts and they then ordered a mining license to be issued and that was carried out.
It is a secure environment for an international mining company and one of the big advantages now is the weakness of the Brazilian currency.
The Brazilian Real is currently $2.42 to the Australian dollar. So you are getting good value for your money at the moment when exploring in Brazil, it makes it attractive.
The gold price in Brazil in real terms has never been higher; it is close to 4000 Reals an ounce. So we are getting good value for the dollars we spend there.
- Note since this interview the current price is $2.52 to the Australian dollar and the current gold price in Brazil per ounce is $4,180.61. Only gone up since this interview.
Can you provide a timeline of key upcoming catalysts for BBX Minerals or potential news flow for investors?
Jeff McKenzie: At the moment, we are doing due diligence on all of our tenements. We expect to have that completed by mid June. We will only maintain tenements that have good potential.
At Juma East, we expect to have those low cost low capex targets identified and have a better idea of where we want to commence a short term mining operation, and to apply for a trial mining license which would allow production to commence in about 9-12 months.The drilling program should start by Q3 followed by initial drilling results on what we encountering followed by the assay results. Why do you believe investors should consider adding BBX to their portfolio?
Jeff McKenzie: The Apuí region has the potential to become a new mineral province. It has a lot of diverse targets and mineralization styles and we are a first mover in the region.
Of all the juniors operating up there, we probably have more knowledge of the area. We have a substantial portfolio of land with some pretty exciting prospects. We also have an opportunity to get a low-cost operation going.
We believe we can make one or more world-class discoveries. We also believe the market isn't recognizing BBX's holdings, the work that has been put in and the potential that is there.
PROACTIVE INVESTORS: Thank-you Jeff.
BBX Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
