Mr. Audet, over the course of 2011, Everton Resources (TSX: V.EVR, Stock Forum) has moved strategically out of Ontario and Quebec to devote your exploration focus almost exclusively on gold and copper discovery in the Dominican Republic. How is your strategy holding up?
Andre Audet (AA): We’ve come a long way in a very short time and corporately and operationally, it was the best decision we’ve ever made. Our pioneering, 20,000-meter deep drilling discovery in the central portion of our Ampliacion Pueblo Viejo property is underway. And it’s adjacent to Barrick/Goldcorp’s 24 million ounce gold mine.
We’re also moving into a greenfield gold exploration program on our southernmost property, Ponton. It’s an area where surface indications tell us that some potential exists for new discoveries. Our trenching program there has begun and we’ll know more about Ponton over the coming months.
In terms of strategy, we’ve moved even further to consolidate both corporate and shareholder value. Our partner in the Dominican Republic has been Brigus Gold Inc. We have built a wonderful relationship. And, an offer we made to Brigus resulted in a mutually agreeable, negotiated agreement to acquire 100% ownership of Ampliacion Pueblo Viejo, Ponton and La Cueva concessions.
In terms of results, we’ve only just begun our initial deep drilling. We had a number of mechanical setbacks and backlogs at the assayers that delayed our reporting, but, I can say without equivocation our initial results provided us with a compass that said we were drilling in the right neighbourhood and we’re heading towards the treasure.
Mr. Audet, Everton’s share price dropped below 15 cents at the end of October after a decline from its 2011 high of 45 cents in April? What has changed and how do you respond to your shareholders?
AA: Well, nothing has changed in our exploration programs or, more importantly, in Everton’s value structure.
When you look at all our assets and activities that include our interest in Kaskattama-T.B. Mining Ventures (TSX: V.TBV.P, Stock Forum), our equity stake in Focus Metals, our other royalty and equity interests, Everton’s intrinsic value justifies a significantly higher share price today.
That said, it means our investors get a free call on our Dominican Republic operations including Ponton, Pun and of course, APV.
I understand that investors are impatient for results, but when you consider the industry norm for drilling discovery success is between 100 and 200 exploratory holes, we’ve only scratched the surface, so-to-speak, in our 20,000 meter venture after drilling only five holes.
So it’s absolutely normal for an explorer to experience a cycle of hits and misses. Sometimes, if an operator is extremely lucky, a discovery emerges after a week of activity. But that is not the case in 999 times out of 1000, or more.
Given our deep drilling agenda and the expanse of our property, we’re drilling holes two to three kilometers apart, initially. So in logistical, geographical and geological terms, we’ve only just begun our mission.
We’re pressing ahead and given our location near the largest gold mine in the Western hemisphere we fully expect our efforts to be rewarded in time – with some emphasis on time.
We’ve embarked on the most ambitious gold exploration programs in Everton’s history. And we have a world-class exploration management team that combines science with common sense.
At the same time, however, I understand our investors’ impatience as the overwhelming majority of our stockholders are individual investors.
So, what counsel or advice or comfort can you give to your shareholders that keeps them onside and riveted to the unfolding Everton story?
AA: I've been in the mining exploration business for a good many years and before that, I was a stock broker.
I group investors into two groups, which may seem obvious but to a CEO they are important. They are short-term investors and long-term investors. Sometimes the motives and objectives of each group gets muddied through market forces beyond our control.
Our corporate strategy is long term and we’re developing that strategy to maximize the long-term benefit of our shareholders - through key partner relationships here in Canada and by assuming a leading role in the mining sector in the Dominican Republic. There are some nights that I lay awake too but I have to remind myself that I also have to be patient and believe in science of what the geologists are saying.
Our story will unfold as it should, in time.
Disclosure: Everton Resources is a Stockhouse client
