Maurice Jackson: Joining us today is Michael Rowley, the president
and CEO of Group
Ten Metals Inc. (PGE:TSX.V; PGEZF:OTC), which is exploring for platinum,
palladium, nickel, copper and cobalt in the Stillwater district of Montana.
Mr. Rowley, we have some exciting developments to discuss for current and
perspective shareholders, but before we begin, for someone new to the story,
who is Group Ten Metals and what is the thesis you're attempting to prove?
Michael Rowley: Group Ten Metals is a growth stage company, focused
on PGM, platinum group metals, plus nickel, copper, also cobalt, the
so-called technology battery metals. We have polymetallic deposits as these
things occur together; we're focused primarily at the Stillwater West Project
in Montana. We also have assets in the Yukon and a gold project in Ontario.
Maurice Jackson: Group Ten Metals just issued a press release announcing a new discovery hybrid zone and
some targets at the Stillwater West. Multi-layered question, sir, can you
update us on the Stillwater West, expand on the findings, and tell us what
they mean moving forward?
Michael Rowley: Stillwater West is our newest project; we made our
first acquisition there in 2017. It's a remarkable land position and database
in a truly world-class district. The Stillwater name, the district is synonymous
with the richest palladium, platinum mines in the world, a staggering 90
million ounces in past production and current reserves producing from three
mines at over half an ounce per ton, 16 grams per ton.
It's platinum and palladium rich; palladium, of course, is very
significant right now given that palladium is challenging gold as the most
valuable precious metal. We are above and below Stillwater in this layered
system and because of that we have not only the same potential for palladium
and platinum, platinum group metals in general, but we also get to expand our
target to these truly polymetallic things including nickel, copper, cobalt,
palladium. We recently added to that list, also, rhodium, and we have some
significant gold.
This is truly elephant country. It's the biggest PGM deposit outside of
South Africa and Russia and, of course, it was bought by Sibanye our neighbor
for $2.2 billion in 2017. So we're the only other player in the district.
It's a fantastic place to be, we're very excited.
You brought up the most recent news release, December 17. The Hybrid Zone is one of our
targets in the Chrome mountain area and an exciting new discovery. We mention
up to 150 meters of mineralized intervals there in this new style of
mineralization. What's exciting is this has never been recognized in camp
before and it ties into the Bushveld Complex of South Africa and, despite the
known similarities between these districts, Stillwater has never been
examined systematically for that potential.
So in a nutshell, we are taking the lessons learned at the Mogalakwena
Mine and Ivanhoe's Platreef project and applying them to the similar geology
in Montana Stillwater in a way that nobody's done before. I guess final point
to wrap that up is the team that we've attracted includes a number of
renowned experts on this type of deposit, but most recently David Broughton
of Ivanhoe, so we've actually attracted expertise and talent of a world
caliber on the project.
Maurice Jackson: Can you further expand on the new 14 target areas?
Michael Rowley: We have as a result of our efforts in 2018, being
our first season on the ground, we've identified 14 target areas in
Stillwater West, six of them fit the high-grade PGE reef type targets that
the district is known for, in particular our neighbor Stillwater Sibanye
Mines. However, 8 of the 14 targets are these newer Platreef style targets
where we see potential for large-scale bulk-mineable disseminated sulfide
mineralization of the types seen on the Platreef District of South Africa,
and that's in the basal zones and the lower ultramafic series in Stillwater.
And that's the greater potential we see there for these hundred million
ounce style PGE nickel/copper deposits, also cobalt actually, at Stillwater,
and news flow will be ongoing in the coming weeks and months as we reveal the
results of our work in 2018, and our plans for 2019.
Maurice Jackson: And what are the target commodities at the
Stillwater?
Michael Rowley: It's a true polymetallic system; the district
itself is known for having the highest-grade palladium platinum lines in the
world, and that is the three operating Stillwater mines that were bought by
Sibanye in 2017, in our part of the district, in the lower part you can also
add to that list gold, cobalt, and chrome are significant and we are recently
finding indications of potentially significant vanadium and rhodium, you can
add to that list as well.
So this suite of commodities, in particular the palladium, in light of
what palladium is doing in the markets these days, positions Group Ten as one
of very few options in terms of PGE investment opportunity for investors,
especially if one included geography in that, being that we are outside of
South Africa and Russia, in North America.
Maurice Jackson: Sir, what is the next unanswered question for
Group Ten Metals, when should we expect results, and what determines success?
Michael Rowley: Good questions, news flow will be ongoing in the
coming weeks, assays are coming in as we speak, we're entering them into our
models and planning our strategy around that, so we're excited by what we
see. I think the most exciting aspect of news is going to be the results of
re-logging and modeling the more than 12,000 meters of core that we have in
our possession, as we said earlier, no one has brought this land position
together with the South African Platreef models, along with this physical
core, so bringing these things together, and for the first time looking at
this district systematically for the potential for these styles of deposits.
It's very exciting and I think the first quarter of 2019 you'll see some very
interesting news releases and materials along that line.
We will be at the major trade shows, we'll have core on display at the
January shows in Vancouver, and we'll be at the PDAC in Toronto in March as
well, and we look forward to seeing anybody and everybody there.
Maurice Jackson: Sir, we've covered the good, what keeps you up at
tight that we don't know about?
Michael Rowley: Well, frankly, our share price isn't where I'd like
it to be and I don't think it reflects the potential of the company, that is
of course seasonal and the juniors (miners) do generally get hit harder this
time of year, however, gold has held up very nicely, and other commodities
are following it, and the majors have moved up nicely. So I think we can
expect a good rebound in 2019 from the mining sector, and from the juniors,
and then, of course, there was also our own work, especially Stillwater I
think will get some nice life, in addition to the rising tide, that floats
all boats.
Maurice Jackson: Finally, what did I forget to ask?
Michael Rowley: Well, it's not that you forgot to ask, but let's revisit
and touch on something we've talked about before, the fact that 75% of the
world's PGM metals come out of South Africa—this has been written up very
well recently by the CMP group out of New York—a lot of those mines are
facing closures, they've been underfunded for years, and this is expected to
drive the platinum price substantially into the year 2020.
Palladium, of course, is already up and platinum is expected to follow.
It's worth noting, perhaps, that those are reef mines, they're deep, they're
hot, they're expensive, they're dangerous, the mines of a Platreef, north of
the Bushveld, are our current model with Stillwater, and those are highly
economic and they keep producing, and that's what we expect to bring to
Stillwater for everyone's benefit.
Maurice Jackson: Mr. Rowley for someone listening that wants to get
more information on Group Ten Metals, what is the website address?
Michael Rowley: Website is grouptenmetals.com.
Maurice Jackson: And as a reminder, Group Ten Metals trades on the
TXS.V:PGE, and on the OTCQB:PGEZF; for direct inquiries please contact Chris
Ackerman at 604-357-4790 extension 1, or email info@grouptenmetals.com, as
reminder Group Ten Metals is a sponsor of Proven and Probable, and we are
proud shareholders for the virtues conveyed into today's interview. Last but
not least, please visit our website www.provenandprobable.com
where we interview the most respected names in the natural resource space.
You may reach us at contact@provenandprobable.com.
Michael Rowley of Group Ten Metals, thank you for joining us today on
Proven and Probable.
[NLINSERT]
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