Q&A interview with Majescor Resources (V.MJX) President & CEO Daniel Hachey
Majescor Resources (TSX: V.MJX, Stock Forum) is focused on gold-copper exploration in Haiti. It also has projects in Madagascar and Quebec that have been optioned out to other companies.
What’s keeping you busy today, Dan?
Working on a press release on some results that are coming out from our drilling program at Douvray on our Somine property in NE Haiti.
Who owns your company?
Majescor is a publicly-owned company. The largest single shareholder is the institution Mackenzie Financial, who own 19.9% of the company’s stock. There are other institutional as well as retail investors, with management owning 10% of the company.
Can you describe your company and say what it does?
MJX is a junior explorer focusing on emerging mineral districts (emerging gold & base metal districts); that includes our Somine flagship copper-gold project in Haiti.
What distinguishes Majescor from other companies in your space?
We go to places that are more difficult in terms of regularly visited jurisdictions, so to speak. That is we will go to places that others will not or cannot or are afraid to go to. We are not afraid to work hard at building something and looking for it in those kinds of places. We have a great management team, a great group of individuals who have been put together. Looking at other junior mining companies, we have a very experienced and dedicated team. Our focus on emerging gold and base metal districts is largely what we are good at doing.
What is your flagship property?
Our flagship property is called the Somine Project. It is located in the NE Haiti, near the Dominican border. We are surrounded by Newmont Mining, which is one of the world’s largest gold producers. They have spent $30 million dollars around us in the past several years.
Why did you choose to go to Haiti?
The history of the property within Majescor predates me. I was approached by Majescor when the company was making the decision to move ahead full tilt on Haiti. As a former investment banker, I was asked if I would consider running a junior mining company and what would it take? I said if the asset was good enough, if the upside potential was significant, and if the capital structure was sound, why wouldn’t I look at it seriously? I had some very successful geologists, who I trust and have known for some time, take a look at the asset in Haiti. They all agreed that it was an excellent property. It is very rare that you have an occasion where a number of geologists agree that a property is good.
What stage is the project at?
Not as early stage as we think. There was a lot of historical work done in the 1970’s by the United Nations Development Program. It had been drilled by them in the 1970’s. In 1980 a scoping study, prefeasibility study, had been done by the German government. In 1990, a Canadian junior mining company did a lot of drilling on the property. A lot of work had been done before Majescor got there. It is not your typical exploration scenario.
Are there other projects within the company that you want people to be aware of?
We have a couple of other projects. One is a copper-gold project called the Besakoa Project in Madagascar, which is optioned off to Sunridge Gold Corp. The other is a uranium project in the Otish Mountains in Quebec called the Mistassini. And that is optioned off to Strateco Resources Inc.
What are the key challenges that you face in your business?
Our challenges are similar to other junior mining companies. We are in a country that has just gone through enormous upheaval with respect to the earthquake that occurred in early 2010 and then that was followed by a hurricane thereafter, and it was quite an impoverished country to begin with. The country itself has its challenges, however the silver lining is that I think mining is a potential solution from an economic perspective to help the country get back on its feet. I think that recognition has come to the attention of the new government, which was elected in late 2011 and they’re very focused on the mining area. We are very encouraged by that to be working in that environment. Working where we are, the project itself is very well situated near a deep water port and we have excellent infrastructure. We are very fortunate from that perspective.
What are the key goals for 2012 and going into 2013?
We have just completed the first two phases of the drilling program and we are just concluding that. We want to have by Q3 a 43-101 and then we will be doing some more ground IP survey and surface work. We will begin another stage of drilling of 8 – 10,000 metres to increase the size and breadth of the resource.
What is the greatest risk factor?
Well, I would say the one greatest risk factor is political, being in Haiti. We have seen that since we have started there.
What do you think you could do with that project over time? What would the goals for it be?
We are not experienced from a production perspective, so it is probably fair to say that the company may at some point be the object of a takeover or we may enter into a joint venture with another company to take it to another level.
How much money does the company have right now?
We have approximately $1 million in cash. We will be requiring capital at some point in the not so distant future and we will be doing a financing in the near future. I think that our goal in the short term is to raise $1 – 2 million to do the IP and surface work that we have been talking about. And then we will be starting the next campaign of drilling so we will need another $5 - $10 million to conclude that and that will probably be sometime before the end of 2012. This would be an equity financing. Our feeling that at this point is that our stock price is a little low so we will probably want to wait until our 43-101 is out. We also have the results of nine drill holes coming from the project over the next couple weeks to couple of months.
Why should I invest in the company?
We have a history behind the company in respect to exploration. There is a lot of data that can give you comfort as to the under pinning’s of having something to work with there that could be interpreted to have some good upside. At this current price, with a market capitalization of less than $10 million, in looking at our historical 43-101, and the historical data from the United Nations and the others, and people that we know in geology look to that data and see upsides. I think that a lot of junior’s don’t have the wealth of data that we have behind the project. The other thing is we’ve had pretty much consistent results in our drilling program, so if you take a look at our press releases, both on the gold front and particularly the copper front, we’ve had significant widths of very reasonable grade copper, which is very attractive from an investment standpoint. That is the kind of the decision I made, I looked at the data, I had geologists who I knew and trusted look at it further, and I basically said this looks very promising. So, I accepted to join the company as CEO.
Is there anything else you would like to say?
We are along a very mineral rich trend that cuts across the island of Hispaniola. The mineralization does not stop at the border and it continues into Haiti and we have a lot of comfort in that Newmont has surrounded us on three sides, and has spent $30 million around us over the past number of years and they seem to be very upbeat about the potential of what they have as well. And across the border you have had some very recent significant success in drilling with Goldquest and Unigold who are to our east. Pueblo Viejo is also in the Dominican and is to our SE of us. They are one of the world’s largest gold deposits and they will be going into production, I believe, this year with approximately close to 30 million ounces of gold, and 173 million ounces of silver and 500 million pounds of copper as well as some zinc. The best place to find gold and copper and other minerals is where it has been found before and where people are finding it.
Disclosure: Majescor Resources is a Stockhouse client