Pancontinental Gold

Cobalt, Nickel and Gold Exploration in North America

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Overview

Pancontinental Gold (TSXV:PUC) is Canadian battery metals and gold exploration company with three projects in Canada and the US. The company’s mandate is to acquire early- and advanced-stage projects near currently or formerly operating mines.

The electric vehicle (EV) revolution has accelerated the demand for the components of their rechargeable batteries. In some cases, however, such as with cobalt, there are supply constraints tied to problematic supply chains in the Democratic Republic of Congo (DRC).

Looking to help address the growing demand for battery metals, Pancontinental Gold is advancing  their two nickel-cobalt-copper projects in Ontario, Canada. These are the McBride nickel-cobalt-copper project, which was previously explored by Macassa Gold Mines Ltd. and Long Lac Minerals Ltd., and the Montcalm West nickel-cobalt-copper project, which is contiguous to Glencore’s (LSE:GLEN) former Montcalm mine property.

The McBride project benefits from previous drill work done on-site which led to the outline of a historical resource of 5.1 million tons of nickel-cobalt-copper mineralization. Meanwhile, the Montcalm West project requires further exploration with modern techniques and equipment. Next steps on the property include airborne surveys and gravity geophysics testing.

The company’s Jefferson Gold project is located in South Carolina’s Carolina Gold Belt. The project is located 12 kilometers away from OceanaGold’s (TSX:OGC) Haile mine, which produced 574,606 ounces of gold in 2017.

Pancontinental Gold benefits from the expertise of experienced mining industry veterans like Dr. Laurie Curtis, a geological engineer and structural and economic geologist of 40 years. Also adding to the team’s extensive knowledge, Kevin Filo, P. Geo and Dr. Derek McBride, P. Eng, bring business and technical expertise to the company’s operations. Alongside friends, family and insiders, the management team holds over 25 percent of company shares.

Company Highlights

  • Cobalt, nickel and copper demand skyrocketing due to EV revolution
  • Three projects situated in safe and stable jurisdictions of Ontario, Canada and South Carolina, US
  • Jefferson project 12 kilometers from Haile mine, producer of 576,606 ounces of gold in 2017
  • Historic resource for McBride project of 5.1 tons of nickel-cobalt-copper mineralization
  • Experienced management team with decades of resource experience
  • Insiders, friends and family own over 25 percent of shares

Flagship Property: The McBride Project

Pancontinental Gold’s McBride project covers 880 hectares and is 25 kilometers south of Bancroft, Ontario in the township of Limerick. The McBride project is supported by well-established infrastructure. It is easily accessible by Provincial Highway 62 and a secondary power line runs within one kilometer of the project’s North Zone deposit and a major power grid crosses Provincial Highway 65 approximately 17 kilometers south of the project.

Additionally, Pancontinental Gold’s McBride project is located near the Canadian National Railway network, providing the company an easy and affordable access point to the nearby nickel smelting facility in Sudbury, Ontario.

The company has the option to earn up to 76 percent of the nickel-cobalt-copper project. That number can increase to 90 percent if their partner, Hastings, chooses not to fund its share of the venture after 76 percent ownership is earned by Pancontinental Gold.

The project is subdivided into three parts: the North Zone deposit, the South Zone Deposit and the South Extension prospect, which were drill tested with 90 holes in the 1960s and early 1970s. The project contains historical resources of near-surface nickel-cobalt-copper mineralization, with an estimate of 5.1 millions tonnes.  This is includes 3.9 million tons grading 0.82 percent nickel, 0.054 percent cobalt and 0.25 percent copper in the North Zone, and 1.2 million tons, grading 0.30 percent nickel, 0.03 percent cobalt and 0.14percent copper in the South Zone deposit.

An interim report of the McBride project published in 1970 by its previous owners, Macassa Gold Mines, found that the property could be a profitable operation, providing the ore reserve grades of 0.253 percent copper, 0.825 percent nickel and 0.054 percent cobalt are consistent.

Outcroppings of surface rock

 

In conjunction with their partner, Hastings, Pancontinental Gold has developed a cost-efficient project development plan to deliver an updated NI 43-101-compliant technical report, a preliminary economic assessment and a feasibility study once the necessary funding is acquired.

Exploration program

Beginning in May 2018, the company will digitize all available datasets and surveys, and will be aggregating all down-hole survey data. The 70 holes drilled between 1969 and 1970 are also to be re-logged and re-sampled, while the property’s surface exploration program will target the eastern contact of the Thanet Complex, along strike from the North and South zone deposits.

Historic core on site

Pancontinental Gold is also planning a new drill program on the property. Phase 1 of the program will involve methods such as re-establishing grid lines, prospecting, geological mapping and a versatile time domain electromagnetic (VTEM) geophysical surveys. Phase 2 will include infill drilling to confirm existing drill results, as well as exploration drilling on the new targets identified during the program’s first phase. Phase 3 will involve metallurgical work on fresh core to identify base metal and precious metal content and recoveries.

The Montcalm West Project

The company’s second nickel-cobalt-copper project in Ontario, located approximately 65 kilometers northwest of Timmins, covers 11,600 hectares within the Montcalm Greenstone Belt in the Porcupine Mining Division.

Pancontinental Gold’s Montcalm West project consists of three properties, the Montcalm property, the Nova property and the cobalt-dominant Gambler property. With the exception of a 20 hectare claim unit, government protected lands and mining leases controlled by Glencore, the 100 percent-owned project now encompasses all available land within the prospective Montcalm Gabbro Complex.

Glencore’s claims cover the former Montcalm mine, adjacent to Pancontinental Gold’s project. The mine was a nickel-copper-cobalt producer, which mined 3.9 million tonnes of ore grading 1.25 percent nickel, 0.67 percent copper and 0.051 percent cobalt exceeding four million pounds.

Additionally, Pancontinental Gold’s Gambler and Montcalm properties possess a similar geology to the Lynn Lake “A” Gabbro Intrusive in neighbouring Manitoba, an intrusion which hosted 15 separate nickel-copper deposits with a combined historical tonnage of 28.4 million tonnes at 0.906 percent Ni and 0.489 percent Cu. Substantial cobalt was also recovered from these deposits, though there insufficient documentation on this production.

According to Layton Croft, president and CEO of Pancontinental Gold, “the highly prospective Gambler Property, not previously explored using modern technology, gives us exceptional new land for target identification.”

The company plans to conduct gravity geophysics, up to 400 meters below the project’s surface, and VTEM testing to identify drill targets for a drill program slated for the winter of that year. Thanks to advances in technology, these tests present the opportunity to locate new targets on the project untested by previous operators.

The Jefferson Gold Project

The company’s wholly-owned Jefferson Gold project covers 600 hectares within the historic and underexplored Carolina Gold Belt in South Carolina. The project is 12 kilometers away from Oceana Gold’s Haile mine, which produced 574,606 ounces of gold in 2017, and contains numerous drill targets within a mineralized trend over two kilometers wide.

Found on the Ridgeway-Haile-Brewer-Jefferson-Morven gold trend, the region’s geology is characterized by intrusive-related gold from a deep-seated magmatic event which occurred approximately 550 million years ago. The trend has lithological and structural settings for high sulfidation, epithermal and porphyry gold deposits.

In 2011, the project’s previous owners drilled four holes on the property with all four holes discovering mineralization. The best drill-results contained over 164.3 meters of 1.27 g/t gold, with another hole containing 35 meters of 1.12 g/t gold.

Pancontinental followed up this drilling program six years later, conducting a six-hole diamond drilling program on one of the project’s anomalies as a follow up to the four core holes drilled in 2011. Five of the six holes completed in 2017 intersected anomalous mineralization.

The two most significant intercepts were 22.9 meters averaging 1.3 g/t, including 8.5 meters of 1.8 g/t at depths of 100.6 meters to 123.4 meters and 12.2 meters of 1.55 g/t at depths of 79.2 meters to 91.4 meters.

Future exploration

The company aims to continue enhancing their land position at the Jefferson Gold project. In addition to conducting geophysical and geochemical techniques to prioritize targets, Pancontinental Gold will also undergo cost-effective drilling for the project’s remaining five targets under sand cover.

Management

Layton Croft—President, CEO And Director

Layton Croft is a seasoned business executive with more than 25 years of global leadership experience and expertise in corporate strategy, business development, project management, stakeholder engagement, and environmental and community sustainability. He has spent more than 15 years in the exploration, mining and energy sectors with Ivanhoe Mines, Rio Tinto, Peabody Energy, Duke Energy and LP Amina, including six years as executive vice president for the massive Oyu Tolgoi copper-gold project in Mongolia. Based in Charlotte, North Carolina, he has contributed to business results on significant gold, copper, iron ore and coal projects and operations in Asia, North America and Africa.

He is a director of Erdene Resource Development (TSX:ERD), which has discovered and is developing a high-grade gold district in southwestern Mongolia. He holds a BA from the University of North Carolina at Chapel Hill, an MA from the School for International Training, and an MA from the Fletcher School of Law and Diplomacy at Tufts University.

Kevin Filo, P. Geo.—Montcalm West Project Manager

Kevin Filo is an exploration geologist, mining geologist and project generator with more than 37 years of experience, including 30 years in Ontario’s Abitibi greenstone belt region. He is a former vice president on the team which acquired the Detour Gold Mine from Placer Dome, which is now one of the largest operating gold mines in Canada.

Derek McBride, P.Eng.—McBride Project Manager

Derek McBride possesses 40 years of professional experience as a geological engineer and structural and economic geologist. He is credited with discovering the Nugget Pond Gold Mine in Newfoundland, Canada, as well as the Reward Gold Deposit in New South Wales, Australia. A Toronto native, he holds with a Diploma of Mining Technology from the Haileybury School of Mines, B.Sc. and M.Sc. degrees in geological engineering from Queen’s University, and a Ph.D. in structural and economic geology from the University of New Brunswick.

Mark McMurdie—CFO

Mark McMurdie is a Chartered Professional Accountant (CPA:CMA) with more than 30 years of senior leadership experience in public and private companies. He is also chief financial officer for Roscan Minerals (TSXV:ROS), as well as director of finance for franchisor H&S Massage Spa Canada.

He possesses deep professional experience in the mining, franchising, oil and gas, merchant banking, distribution and real estate sectors. His expertise includes the development and leadership of corporate finance and accounting functions, strategic planning, and restructuring, as well as liaising with shareholders, boards of directors, securities regulators, and financial institutions.

Donald Whalen—Chairman of the Board, Independent Director

Donald Whalen has been a self-employed business consultant since 2009. From 1992-2008, he served as Executive Chairman and Director of TSX-listed High River Gold Mines. Together with fellow Pancon Gold Director, David Mosher, he succeeded in growing High River Gold from a small exploration company into a multi-mine, international gold producer with mines in Canada, West Africa and Russia. During this period, High River Gold’s market capitalization increased from C$7 million to more than C$1 billion. He has been active in promoting Canada-Russia business investment and trade relations. From 1998-2008 he was Chairman of the Canada Eurasia Russia Business Association (CERBA), and from 2005-2007 he represented Canada as co-chair of the Canada Russia Business Council.

Rick Mark—Independent Director

Rick Mark has more than 25 years experience in the public markets and has held leadership positions with various organizations over the last 40 years. During his tenure with public companies he has been responsible for: securing financings; developing short and long-term corporate goals; building cost-effective property development plans; creating effective communication platforms; and overseeing regulatory functions.

He is currently president and CEO, chair and director of Harvest Gold (TSXV:HVG). He was formerly president and CEO of VMS Ventures, which discovered the high-grade Reed copper deposit in Manitoba, now in production through a joint venture with Hudbay Mining. He was also chairman of North American Nickel, which has made a number of nickel discoveries in Greenland. He has led efforts to raise more than C$85 million in the last 12 years.

David Mosher—Independent Director, Technical Advisory Committee Member

David Mosher is a geologist and mining executive with more than 35 years experience in the United States, Canada, Australia, Russia, Africa and Asia. Over the past decade he has been active in the restructuring, financing and management of a number of mineral projects and mining companies, both private and public. He has served on many boards including Cambior and Equinox Minerals, and is currently a director of five public mineral exploration companies, including Pancon Gold.

From 1992 through 2008, he served as president and CEO of TSX-listed High River Gold Mines, where he raised more than US$300 million and developed three mines from exploration through to production in Canada, West Africa and Russia. He assisted with the expansion of two underground mines in Russia, and he outlined a 5 million ounce gold deposit in Burkina Faso, which subsequently became an operating mine. Under his leadership, High River Gold’s market capitalization increased from C$7 million to more than C$1 billion.

David Petroff—Independent Director

David Petroff brings substantial executive management experience with mining companies to the Pancon Gold Board. He served as president, CEO and director of Jaguar Mining from 2012-2014. He was president, CEO and director of Breakwater Resources from 2009-2011. From 2004-2008, he was executive vice president and chief financial officer of Centerra Gold, a spin-off from Cameco. He was chief financial officer and senior vice president, finance and administration for Cameco from 1997-2004.
His experience demonstrates his ability to step into challenging situations and provide leadership for creating and implementing strategies that lead to higher profitability, engaged employees, and overall improved business results.


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