Mining legend Ross Beaty made a fortune buying up copper deposits when nobody wanted them. He has also financed several mega-wealth creating mineral discoveries, contributing to his astounding track record, outlined in this earlier CEO.ca article.
Leo Hathaway, VP Exploration for Odin Mining & Exploration, has been working closely with Mr. Beaty for the last decade.
At the Prospectors and Developers Association Convention in Toronto last week, mining analyst Brent Cook caught up with Mr. Hathaway at Odin’s booth, with cameras rolling.
The gentlemen discuss what the company is doing in Ecuador, and following the exchange, Mr. Cook provides some initial thoughts on the company.
Here is a transcript of Brent Cook’s conversation with Leo Hathaway at the PDAC:
Brent Cook (BC): Leo works with Ross Beaty, they picked up a lot of ground in Ecuador. I’ve known Leo for quite a while, he’s an excellent geologist, so lets see what’s going on. So, what the hell are you doing in Ecuador?
Leo Hathaway (LH): We like Cangrejos because we understand the geology and we see a very real deposit there. We have been going down to Ecuador and looking for projects for quite a while, and at the present time we feel the government is moving in the right jurisdiction to change the mining law into where it’s going to become a mining friendly jurisdiction. We thought it would be a good idea to get in early and pick up what we see as a good deposit.
BC: Has the drop in the oil price pressured them into doing something?
LH: That came after the fact, they were moving in the right direction before, but that adds economic pressure to get there faster.
BC: So your project, its a porphyry copper.
LH: It’s a gold, copper, porphry
BC: What kind of work has been done?
LH: There is historic drilling from Newmont which we see good consistency in. Lower grade than some of the other gold deposits in the country but I think had it been in another jurisdiction like Peru it would be a big whole in the ground right now.
BC: What’s the access like?
LH: Access is good, it’s about 30km from the main town on the coast. Not to many people living there. Good relations on the social side, no environmental challenges that we see. We saw a deposit with consistency, what we sees as economic grades in the right taxation regime with no fatal flaws, so that was really what got us in there.
BC: What’s the land status, do you own the whole thing?
LH: We’re still working on other claims in the area. At the same time as drilling up Cangrejos, we’re looking at other projects in the region. Odin is a gold focused Ecuador company so that makes sense.
BC: What are we watching for? What’s happening next?
LH: We’ve been drilling, we’re waiting to get results from that back. We’re looking at other projects in the area, once we get those drill results in, and we get the results of the project evaluations, and we’ll make those decisions, and the politics is a moving target as well, so all those play into that.
BC: What’s the treasury look like?
LH: Laughs. That’s a good question You would need to check these numbers [editors note, working capital at September 30, 2014 was $3,756,970, according to SEDAR. This will be lower after recent drilling]. The good thing about having Ross [Beaty] working with you is financing is not your issue.
BC: That was Odin, I’ve known Leo for quite a while. He’s a top top exploration guy with Ross backing him. Ecuador I’m neutral on, actually not that great on it. I want to see what the drill holes look like and take a hard look at what the mining regulations come back looking like as well as checking into what the land status is and what they’ve got. It’s another one worth watching by a good group doing good work.
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