Western Metallica Resources Corp. (TSXV:WMS), a mineral exploration company headquartered in Toronto, Ontario, with five mineral assets across Peru and Spain has drilling underway in Peru. The Market Online recently sat down with CEO, Gregory Duras.
The following is a transcription of the above video, and The Market Online has edited it for clarity.
TMO: Welcome Gregory, it’s a pleasure to sit with you today.
Duras: Well, pleasure to be with you as well.
TMO: Now if we can begin with Western Metallica’s diving into Peru, we’ll start there, which for the audience members that do not know is the world’s second largest copper producer. So, what unique factors make Peru particularly appealing as a jurisdiction for this project?
Duras: Peru’s, vast geological potential, a stable investment regime and low cost make an attractive global mining jurisdiction. There are many major companies operating in Peru with well over $10 billion in assets currently.
TMO:With a substantial 5,700-hectare landholding, could you elaborate on the scale of potential copper resources Western Metallica anticipates within the Caña Brava site?
Duras: So Western Metallica’s project is a significantly sized copper-moly porphyry style target. Well located in northern Peru in the La Libertad province. Initial exploration work has identified a geological target in the order of a potential 500 million to 1 billion tons of above average grade mineralized rock. The Caña Brava project has an alteration footprint comparable to other major porphyry projects.
TMO: Now, in terms of proximity, you’re near HudBay’s Llaguen project?
Duras: Close. We’re close to the HudBay Llaguen deposit, which is an approximate 300-million-ton resource. They’re approximately eight kilometers away from us. And so the distance is one thing, but the geological features seem to be quite similar to what they have as to what we have, which is what is most encouraging.
TMO: And Greg, the initial drilling at the Luz Maria porphyry prospect begins this month. So, with drill results expected soon, what early indicators or findings are you most eager to observe?
Duras: So, the drill program is underway now having completed approximately 350 meters. Although it’s still early, at this point, we’re seeing what we expected from the first bit of core.
We are certainly in a porphyry system, and we will know more when we get our first set of results.
However, We are confident as I said in a porphyry system. We are in the mineralized zone and we’re expecting our first set of results in approximately ten days. And at this point we are encouraged, but we also need to be patient because it’s still early.
TMO: And how does the company funding strategy align with valuation potential you see in Caña Brava, especially given the comparable footprints with other major porphyry projects in Peru?
Duras: Given our current market valuation of approximately $2.2 million, I would say that the investment opportunity, given our current valuation, is certainly appealing. You know, it’s a very difficult market to attract attention when you are so small. But the reality is a lot of investors are like sheep. So, I’m confident that once we get some attention, results start to come in, then there’s certainly going to be a re-rating for the company. And then the investment, then the financing avenues will open right up.
TMO: Lastly, Greg, in light of Western Metallica’s recent initiation of drilling at the Luz Maria copper prospect, could you elaborate on the specific geological indicators that led to the selection of the site for exploration?
Duras: Essentially what attracted us most was Caña Brava looked to be a highly prospective asset in the right part of Peru, situated in the underexplored territory of a copper-moly belt that hosts world class deposits including Las Bambas, Constancia and s Elida. So, we’re in the right neighborhood. We knew we were in the right neighborhood, so we went for it.
If you would like to learn more about Western Metallica Resources Corp. their website is westernmetallicacorp.com and you can find them on the Venture under the ticker symbol WMS.
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Again, that was Gregory Duras, CEO of Western Metallica Resources. Their website is westernmetallicacorp.com and you can find them on Venture under the ticker symbol WMS. To join this conversation and for all of your market news, head to stockhouse.com. I’m Lyndsay Malchuk. See you again.
