Resource Company with Joint Venture Opportunity
This profile is part of a paid investor education campaign.*
Commander Resources Ltd. (TSXV:CMD) is a resource company that was founded in 1989 and operates under a prospect generator model. The company has developed a portfolio filled with joint venture opportunities, exploration projects, royalties and investments across Canada.
As a prospect generator, Commander manages exploration risk by focusing on early-stage acquisitions and target identification. Any following exploration is conducted by option or joint venture partners, under which Commander keeps either a small project interest and royalty or significant equity positions. This allows for the generation of income from property payments and shareholdings, and reduces risk exposure. The company is well funded with approximately $1.7 million in cash and in excess of $1.3 million in marketable securities. In 2018 the company had an ongoing JV with Fjordland Exploration and HPX who spent $1,200,000 on the Company’s South Voisey’s Bay project.
Commander has diversified royalty and property portfolio throughout Canada, that includes gold, copper, zinc, nickel and cobalt projects. This includes eight properties that are available for option. Over the course of 2017, the company announced three option/joint ventures with $2.5 million in partner funded exploration.
Over the course of its operations, Commander has been partnered with several mining companies such as Anglogold Ashanti Ltd. (NYSE:AU,ASX:AGG), Teck Resources Ltd (TSX:TECK.A), Imperial Metals Corporation (TSX:III), Aston Bay Holdings (TSXV:BAY), Maritime Resources Corp. (TSXV:MAE) and others, illustrating its strong connections to the mining community – a critical requirement when seeking partners.
Commander also owns approximately eight percent of Maritime Resources, which is planning to re-open the past-producing Hammerdown mine within the next three years and in which the company owns a 2 percent NSR on the project. Maritime released a prefeasibility study in 2017, which indicated an after-tax NPV (eight percent) of $44.2 million, after-tax IRR of 46.8 percent and a mine life of five years with an annual production of 35,000 ounces. The project proven and probable reserves of 179,400 ounces, measured and indicated resources of 315,000 ounces and an inferred resource of 376,800 ounces of gold.
One of Commander’s primary projects is the South Voisey’s Bay nickel-copper-cobalt project property in Labrador, which is being developed as part of a joint venture with Fjordland Exploration (TSXV:FEX) and High Power Exploration. The project sits 85 kilometers south of Vale’s (NYSE:VALE) Voisey’s Bay mine, a major nickel and cobalt producer.
Commander’s management team has over 85 collective years experience in the mining industry and bring strong technical expertise in project generation.
- Project generator with approximately $1.7 million in cash and over $1.3 million in marketable securities.
- In business since 1989 (29 years)
- $1,400,000 partner funded exploration in 2018
- Equity Holdings in Maritime Resources and Aston Bay Holdings
- 8 royalties covering near term production to exploration stage properties
- Proprietary exploration database from UMEX (Union Miniere)
- $1,700,000 cash
- Active joint venture on its South Voisey’s Bay Ni-Co project which sits approximately 85 kilometers south of the South Voisey’s Bay Mine, Management team with over 85 years of combined experience.
Project Generator with Presence Across Canada and Mexico
Commander manages exploration risk through adherence to the prospect generator model wherein the Company focuses on early stage of exploration- acquisition and target identification. Ongoing exploration is offloaded to Option and JV partners who earn direct property interests. Commander retains smaller direct project interest plus royalties and significant equity positions in partners. Through this process the Company accumulates a significant royalty portfolio as well as generating income in the form of property payments and share holdings. Dilution is minimized and income augments expenditures.
South Voisey’s Bay Ni-Co Joint Venture, Labrador
The South Voisey’s Bay property is in central Labrador approximately 80 km due south of the operating Voisey’s Bay nickel mine and covers major parts of the Pants Lake gabbro complex in the South Voisey’s Bay area. The Pants Lake Complex contains host rocks with alteration and nickel mineralization styles that are similar to the Voisey’s Bay hosts. The large 294 km property has an extensive geophysical and geochemical database that has guided drilling in two campaigns. To date approximately $2.6 million has been spent in first year of the option including 2,721 metres of drilling. Results from 2018 are currently being reviewed and plans made for ongoing work in 2019.
Properties Being Advanced for Joint Venture
Commander maintains a portfolio of exploration properties across Canada and Mexico and is continually advancing these assets by ongoing exploration consistent with our Prospect Generator business model. Our goal is to highlight the prospectively of these assets to attract joint venture partners.
Flume Gold Project, Yukon
The 3,680-hectare Flume property, in the Yukon’s White Gold District is located approximately 70 kilometers north of the Coffee gold project being advanced to production by Goldcorp and approximately 40 kilometers northwest from the Whitegold Resources Golden Saddle project. White Gold has recently announced a new discovery at their JP Ross property that has further illustrated the exceptional potential of this emerging gold district. This advanced property has seen about $3.5M in historical work which has outlined a 10 km by 3 km gold and arsenic soil anomaly covering the headwaters of Ten Mile and Sestak Creeks- both former and current placer gold producers. Drilling in 2012 returned 2m of 5.76 g/t Au in hole F12-006.
Sabin Zinc-Lead-Copper-Silver-Gold Project, Ontario
The Sabin property is located in the Sturgeon Lake Greenstone belt 400 kilometers northwest of Thunder Bay, Ontario. The Sturgeon Lake greenstone belt, host to significant polymetallic VMS deposits including the past-producing Sturgeon, Mattabi, Lyon and “F’ VMS mines. Mining ceased in the belt in 1991.
The Sabin Zinc Property was first worked by Union de Miniere Exploration (UMEX) in the 1970’s. Initial work by UMEX led to the discovery of the Marchington Zone where shallow drilling on 15 m centres outlined a historical near surface resource from 15 m to 61 m depth.
Marchington Zone Historic Resource (non-NI43-101 compliant)
123,000 tonnes 2.9% Zn 0.7% Cu 1.3 % Pb 56 g/t Ag.
The Marchington Zone resource was defined by UMEX (based on internal company documents dated June 19, 1980), is historic in nature, is the most recent resource estimate currently available and is not to be relied upon except to provide an indication of exploration potential on the property. It was calculated by exploration professionals working for a major company widely reputed as competent, utilizing methodology accepted and relied upon as standard industry practice at the time, but is not compliant with National Instrument 43-101 standards. The reader is cautioned that a qualified person has not done sufficient work to classify this historical estimate as current resources and Commander is not treating it as a current mineral resource.
In addition to the Marchington Zone horizon three additional partially drill tested zones have been identified including the Kash, South and S-23 zones. The core of the Sabin property is underlain by extensive intermediate and felsic volcanic units that exhibit widespread alteration comprised of garnet, staurolite, sillimanite and sericite metamorphic mineralogy. Characteristics of the Sabin and Sturgeon Lake deposits include high zinc and silver values with low conductivity. Gold was not consistently analyzed but sporadic assays suggest elevated potential. The Company has recently compiled a large exploration dataset for the first time. The last major exploration program on the property was a limited 3 hole campaign by Noranda in 1995. This year the Company completed the first ever deep penetrating airborne geophysical survey on the property with results expected by year end.
October Dome Gold Project, British Columbia
In 2016, the October Dome Gold Property was acquired from Bearing Resources (TSXV:BRZ). The 100 percent owned October Dome gold property is located in the Quesnel Trough near the town of Likely, British Columbia. The property is located 10 kilometers north of Imperial Metals Corp.’s Mt. Polley porphyry copper-gold mine property and 7 kilometers to the southeast of Barkerville Gold Mines Ltd.’s (TSXV:BGM) QR Skarn gold mine.
The target is defined by a grid area of four kilometers by 1.1 kilometers that has been surveyed by magnetic and Induced Polarization (IP) surveys and soil geochemistry.
In 2013, Bearing Resources completed a 1,086 metre diamond drill program that targeted the northern end of a four kilometer gold and arsenic soil anomaly that coincides with an IP chargeability anomaly. The company encountered diorite and monzonite intrusions within hornfelsed sediments and propylitized basalts and a new discovery of 15 metre core length of massive magnetite skarn with semi-massive pyrite layers with chalcopyrite, epidote and garnet at the sediment-basalt contact. A nine metre section assayed 0.7 g/t gold and a three-metre length of 1.3 g/t gold. This represents a new target on the property and is very similar geologically to the gold skarns formerly mined at the QR deposit to the northwest.
Omineca Gold- Copper Project, British Columbia
The Omineca gold-copper project is located in north-central British Columbia within the prolific copper-gold producing Quesnel Terrane. Its is strategically located midway between the large producing Mt Milligan gold-copper mine and the past producing Kemess Mine. The main target is a 4 km long copper and gold soil anomaly defined by greater than 100 ppb Au and 100 ppm Cu underlain by altered diorite and monzonite intrusions with magnetite stockworks. This large target has only been tested by 2 short holes < 100m in depth that were anomalous in gold. Recent prospecting in 2017 returned 10 grab samples > 1 gpt Au with one sample returning an high gold value of 21 gpt.
Nepisiguit Zinc-Lead-Copper-Silver-Cobalt Project, New Brunswick
The Nepisiguit-Stewart property is in the prolific Bathurst Mining Camp in New Brunswick, Canada where which is one of the most prolific Base Metal mining camps in the world. The property has historical drill intersections of copper and cobalt rich feeder style mineralization including intercepts like:
- Hole 97-8: 25.5 metres @ 1.04 % Cu
- Hole 97-10: 27.2 metres @ 1.47 % Cu
- Hole STW-12-05: 11.0 metres @ 2.04% Cu
The key target is a 1.8-kilometre-long zinc-lead-silver horizon associated with heavily disseminated to semi-massive sulphides and magnetite iron formation.
Pedro Gold Project, Durango, Mexico
The Pedro project is 100 kilometres northwest from the city of Torreon in northeast Durango state. Pedro is comprised of several targets including the Las Lajas gold prospect and the HP Breccia prospect. The HP Breccia prospect is a gold soil anomaly covering 4km by 600 m zone containing extensive silicified sedimentary breccias and conglomerate within the Ahuichila Fm. Rock grab samples returned gold values from 0.2 to 0.5 gpt with a maximum value of 2.26 gpt gold.
Newmont de Mexico conducted a drill program in 2013 (11 drill holes totaling 1,744 meters) Encouraging results included a core length of 10.5 meters grading at 0.51 g/t gold. The target represents a brand new epithermal gold discovery.
The Company always seeks to replenish its project pipeline through generation and acquisition of new projects. The focus is currently on adding additional copper and gold projects in British Columbia and gold targets in Ontario. Target generation in Ontario is driven by a new initiative in which the company is digitizing the extensive and proprietary UMEX database that reflects over 2 decades of gold exploration efforts.
2% NSR on formerly producing Hammerdown Mine, NFLD (Maritime Resources)
- Prefeasibility study released March 2, 2017 (Prefeasibility Engineering Study and Economic Assessment by WSP Canada Inc.), potential cash flow in 2021 or earlier
- IRR 46.8%, NPV (8%) after tax $44.2 million, 5 year mine life at 35,000 oz/yr
- P+ P Reserves: Reserves 439,200T @ 12.7 g Au/t (179,400 oz) from
- M+I Resources: 925,670 T @ 10.6 g Au/t (315,000 oz) and
- Inferred resources: 1,557.000 @7.53 g Au/t (376,800) oz
Mt. Polly Boundary Zone Royalty (Imperial Metals)
- 90% interest in $2.50/tonne milled from portion of Boundary Zone (Mt. Polley Mine, Imperial Metals)
- Production scheduled in 2026
0.25% to 0.5% NSR on Baffin Gold Project, Nunavut, (Valore)
- 4000 sq. km covering Proterozoic greenstone belt
0.875% Gross Overriding Royalty on Storm and Seal, Nunavut (Aston Bay)
- Belt scale sediment hosted copper target and stratabound zinc
Advanced Royalty payments – Tam/Misty Cu Au Property, BC (Teck)
- advanced royalty payments of $25,000/year from Teck- exploration stage
0.25% to 1% NSR on Destiny Gold deposit, Quebec (Alto Ventures)
- Indicated resource 10.8 million tonnes @ 1.05 g/t (364,000 oz) plus Inferred 8.3 million tonnes (247,000 oz) (Resource estimate by Todd McCracken, P.Geo. of Tetra Tech (Wardrop) , 2011)
Robert Cameron, P.Geo. — President & CEO
Robert Cameron has over 30 years of international experience in the mining industry, including positions as President and CEO of Valley High Ventures and Bearing Resources Ltd. as well as Vice-President and Manager of exploration for Phelps Dodge Corporation of Canada Limited (a then subsidiary of Freeport McMoRan Copper and Gold Inc.).
In addition, he has extensive market and finance experience including a term as mining analyst for Research Capital. He is a member of the Association of Professional Engineers and Geoscientists of British Columbia.
Stephen Wetherup — VP of Exploration
Stephen Wetherup has over 25 years of global experience including work with Phelps Dodge Corporation of Canada. He is also Vice President Geology with Caracle Creek International Consulting.
Bernard H. Kahlert, B.Sc., P.Eng. — Director
Bernard Kahlert, a geological engineer, has more than three decades experience in international mineral exploration (including diamonds). Prior to joining Commander in 1990, he served as exploration manager for Amoco Minerals and Superior Oil in Australia, Canada and USA, as well as a consulting geologist for junior and major companies.
Brandon Macdonald — Chairman
Brandon Macdonald is a finance and mining professional with a background in junior company management, governance and financing. He holds a B.Sc. degree in geology from UBC and an MBA from Oxford. He is President and CEO of Fireweed Zinc.
David Watkins, M.Sc. — Director
David Watkins is an international mining executive with 40 years of experience in building and managing mining companies. He is a geologist whose work has resulted in the discovery, acquisition, development, and operation of 15 successful gold, copper, and zinc mines in Canada, US, Chile, Peru, Australia, and Zambia. His experience includes managing a number of corporate mergers, acquisitions, and dispositions.
Watkins joined Atna Resources Ltd. as President and Chief Executive Officer in 2000. Prior to joining Atna, he was Senior Vice President of Cyprus Amax Minerals Company and was responsible for worldwide exploration and business development. He was President of Minnova Inc., a successor company to Falconbridge Copper where he and his team discovered and built a number of mines that resulted in five operating divisions producing gold silver, copper, and zinc.
Eric W. Norton — Director
Eric Norton spent over 30 years with Teck Resources Ltd. and three years with Baja Mining Corp. as Vice President of Project Development & Operations. He graduated from University of Toronto with a B.Sc. (Honours) in Metallurgy and Materials Science.
While at Teck he held senior positions in Operations, Commercial & Business Development, his roles also included Manager, Strategic Opportunities, working with the Exploration Business Development Group & Manager, Business Development in Vancouver. While at Baja Mining he led the Definitive Feasibility Study for development of the Boleo Project in Mexico, and was active in working with brokers, banks and trading companies negotiating financing and commodity product agreements.
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