The Gold Report: Thank you for joining us, Mark. Can you
give us a little introduction to Adamera
Minerals Corp. (ADZ:TSX.V)?
Mark Kolebaba: Sure. Adamera Minerals is 100% focused on exploring
for gold in Washington State. This is an area known for high-grade gold
deposits that has been relatively underexplored for 25 years. We have been here
for three and half years and have developed a compelling land position.
Washington State is a safe and easy jurisdiction to work in. Given our focus
solely in Washington State, we have developed an unparalleled understanding
of the region from staking, permitting and geology. We are excited to be in
Washington.
TGR: Washington was a hub for mining 20-plus years ago. Can you
tell us a bit about the history of the area?
MK: This particular area has a long history of mining dating back
to the 1890s. The area we are exploring has produced more than 6 million
ounces (6 Moz) of high-grade gold from multiple districts. The Republic
district operated by Hecla Mining Co. (HL:NYSE), for example, produced 2.8
Moz gold at an average grade of 20 grams per tonne (20 g/t) and 15 Moz silver
averaging 110 g/t.
Currently the only operating gold mine in Washington State is the Buckhorn
mine, which is owned by Kinross Gold Corp. (K:TSX; KGC:NYSE). Buckhorn is a
1.3 Moz deposit averaging about 12 g/t, making it the third highest-grade
operating gold deposit in the U.S. Washington is the fifth largest
gold-producing state in the U.S.
TGR: The Buckhorn mine presents an interesting opportunity. Can you
please explain why?
MK: The Buckhorn mine is expected to be out of ore by the end of
2016, leaving Kinross' mill in care and maintenance. With a fully permitted
underutilized mill and gold prices looking very attractive and, dare I say,
stable, the timing is perfect for us. Adamera was attracted to Washington
State by the prospective geology and the presence of high-grade deposits;
dovetailing great geology with a unique opportunity to discover mill feed in
an established but underexplored mining district is fantastic.
TGR: What benefits or infrastructure are in the region that Adamera
can possibly leverage?
MK: I love working in Washington State; the infrastructure is very
well developed and we are able to keep our costs well below industry
standards. The area is fully accessible by road and the community is very
supportive, with a good work force available for advancing the project. I
believe the presence of a modern, underutilized, 2,000-ton-per-day mill
changes the economics of new discoveries and shortens permitting timelines
significantly.
TGR: Can you tell us a bit about your flagship property?
MK: We have three key projects: Oversight, Flag Hill and Empire
Creek. All projects are in recent mining districts that we consider
underexplored.
Currently our flagship is the Oversight property in the Cooke Mountain
gold district. This property surrounds and encompasses part of the Overlook
deposit that was mined in the 1990s. The Oversight property is only 5
kilometers from the mill along an existing haul road. We have some new ideas
and high priority targets there, and we are really excited about testing
them.
TGR: What are your plans for Adamera over the next six months?
MK: Adamera is financed for our next phase of work, and I see us
pursuing two distinct channels of activity. First, we have identified several
new and high priority targets at Oversight that are situated next to recent
past producers. Having positive historical data has really aided in picking
the targets, and we are very optimistic. We will develop and drill test these
opportunities to understand them better. Second, we will initiate a low-cost,
larger, regional targeting campaign that utilizes modern ideas, concepts and
techniques. This area hasn't seen modern exploration programs deployed, and
that is really exciting to me as a geologist, as the region already has great
geology and who knows what we may find now.
TGR: To summarize, can you let our readers know why you think they
should be investing in Adamera?
MK: I will tell you why I invest in Adamera. The existence of
well-established infrastructure ensures low-cost exploration, which is very
important to me, and the presence of a mill that requires immediate feed will
lower development costs, shorten permitting times and provide a strong
built-in exit strategy.
I love that Kinross has demonstrated Washington State as a low-cost
production region. But one of the biggest attractions for me is that our new
geological concepts present a potential opportunity for large, 1 to 3 Moz
high-grade gold deposits. That is a big deal for me.
TGR: Thank you for your time, Mark.
Mark Kolebaba is CEO, president and director of
Adamera Minerals. He has been instrumental in major discoveries since the
1980s and has experience with diamond, gold, silver and base metals. Kolebaba
has held positions with BHP Billiton, Cominco Ltd. and the Northgate Group of
companies. He was part of the team that discovered the first 120 kimberlites
at the Ekati Diamond Mine and was responsible for the initial discovery of
the Hope Bay Gold deposit in Nunavut. Kolebaba also served as president and
CEO of Diamonds North Resources and Uranium North Resources, where he and the
exploration team acquired one of Canada's largest land positions.
