Tumi Resources Live @ PDAC
Resource Intelligence talks to Tumi Resources David Henstridge and Nick Nicholas about Project Generation, Mexico, Sweden and Drill Targets
RI: Let’s talk about your prospect generator model. How does that work for Tumi Resources?
DH: Tumi Resources is a silver explorer. From 2002, I believed that silver in the long term would outperform gold. I started in silver in Mexico because at that time it was the largest silver producer as a country in the world. We came up with a project called La Trini that we drilled out and the final number was approximately 10 million ounces of silver equivalent. In 2006, with the price of silver, it was a bit too small to interest me. From my technical background, I’m really a project generator by nature so I then proceeded to try and find projects in the silver area from scratch and drill them out to see if you can find something of substance. That is a very high risk and very high reward area of mineral exploration. From 2006 until today we have been project generating in Sweden. We have now generated three drill targets in Sweden and started drilling our first one the other day.
RI: You’ve got five drill targets in total?
DH: Yes. Three are in Sweden. In Sweden there are a number of old mines that extend over a 12 kilometer strike length. We staked some ground on the north end of this old field because it was under cover but we felt that the trend continued. We did some IP over this cover and a 400 metre long by 50 metre wide very intense IP anomaly came up.
RI: The idea as a prospect generator really is to look through several or dozens of projects until you find something to drill out. Once you’ve proven that it’s got grade value potential you will look for a partner or vend it off, is that correct?
DH: Yes. I’m an explorer and not a mine developer so ultimately if you find something you would hope that somebody would take the company over or sell it off or joint venture it for development.
RI: For an investor can you explain the upside in terms of where your share price would start and what you would look for?
DH: If you’re talking about the high risk and high reward, the starting point is always very low. It’s not unusual in this market place to be in the $0.05 to $0.20 range and that’s where we are because we don’t have assets that people can really value. If you find something then obviously the reward is as good as what you find. That’s why I like the area because you can get extreme upside if you find something of substance and I suppose there are a lot of investors out there that like the same type of idea.
RI: What’s happening at your projects in Mexico?
DH: In Mexico Tumi Resources has two projects. One is at the drill stage and in fact we started drilling a couple of days ago. The other one is a month or so away from drilling. The first one we generated because I liked the idea of silver being associated with carbonite rocks and the world’s biggest deposits of silver have occurred with hot acidic solutions containing silver and they form good deposits. We found the Mezquite project with existing pits on the surface and IP anomalies below the surface. Pits on the surface means old prospectors have been there and have dug some pits, and there was zinc, lead and silver mineralization exposed in these pits. We did IP again and got drill targets alongside these pits. If we succeed, good luck to us, and if we don’t then let’s find the next one.
RI: You’ve got another project in Mexico that’s really interesting from the perspective of this project generation, La Gloria, tell us about that?
DH: Once again, it’s interesting that you sometimes don’t get what you think you’ve got. I visited this particular project called La Gloria because it had some old tungsten showings on it. It had been mined for many tonnes a couple of decades ago. We channel sampled across the old surface scraping and out of the results came 3.3 grams of gold over 32 metres in the channel sample which is quite astonishing. We didn’t even know that the gold was there, plus some tungsten and some tin. Now it’s a drill target, so we project-generated a drill target basically on one channel sample across this old zone. In a few months time we will drill that too.
RI: What do you think investors are looking for in these kind of projects where they are suddenly buyers?
DH: I honestly think that it is mostly drill holes. That is the final truth machine in geology. I think there is not a lot of interest in this market place until you’ve got a drill hole with some sort of good result in it.
RI: How do you bring this project to the market?
DH: I think it is very important to try to brand name your company in the market in general and we use an independent market awareness specialist, Nick Nicholas, who is here with me today.
RI: What you do as a market awareness specialist and what approach do you take to bring Tumi Resources to more investors?
NN: Very simple. Turn over all kinds of rocks. The thing is in market awareness you never know where the next investor will come from, so you turn over all kinds of rocks and then once you turn one over and boom—there is an investor. Maybe it’s only an investor that buys 1,000 shares, but it could be one that buys a million shares. I meet people and I talk to everybody that I can. Name branding is exactly that: Going out and telling the story. The big thing with Tumi is management. Exploration companies by nature are gamblers but Tumi has intelligent hope that when that drill goes into the ground, it will come up with the right core.
RI: What’s next for Tumi to show investors that you’ve got what it takes to bring something to market?
DH: At the moment we’ve got our hands full with five drill programs and that will take a couple months to get through. If they all fail, which is always a possibility in exploration, we will go project generate the next lot. That’s what shareholders can look forward to.