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Sector Spotlight
eXCALIBUR ReSOURCeS LTD
Ahead of the Pack: Junior to pay Gold Dividends
Tim Gallagher is a graduate in commerce from McMaster University, holds an MBA from York University and is a CFA. He has been a director or senior officer of a number of public and private companies including Inflection Capital Inc., Xmet Inc. and Xtierra Inc. Previously he was in institutional sales for Loewen Ondaatje McCutcheon and Union Bank of Switzerland (Canada). He has assisted a number of companies implement their growth plans primarily through the TSX Venture Exchange Capital Pool Program since 1997.
Q
Can you tell us about your company and projects?
Excalibur Resources Ltd. (CNSX: XBR; FRKF: X9CN) is a junior exploration and mining company focused on the discovery, development and mining of economically viable precious metal resources. The company currently has 3 projects:
• Minera Catanava in Zacatecas Mexico is a JV 49% held by Excalibur which is providing the financing and 51% held by Minera Apolo S.A. de C.V. which is providing the property and management of the project. The Catanava project is just starting gold production after 2 years of construction and permitting.
• Sturgeon Lake in Ontario is a 107 sq km VMS and banded iron ore formation property adjacent to a former Xstrata mine with potential for Zinc Lead-Silver- Copper-Gold deposits. The project is at the exploration stage positioned for rising zinc lead prices.
• Cariboo in British Columbia is a 58 ha prospective Gold-Silver property in an area
with regional historical gold production of over 5 million ounces of gold and 30 million ounces of silver.
Q What is your flagship project?
Excalibur is focused on the Catanava gold production project in the Pinos Bonanza Gold District, in Zacatecas Mexico, which has a 500 year history of production by the Spanish, Cornish and local miners who mined high-grade veins in over 50 shafts only down 100 meters to the water table.
The project is at the advanced construction and early production stage.
All permits have been received to commence production including the explosive permit which is the major milestone that allows the company to begin processing of the higher grade underground material.
The construction of the 250 ton per day processing plant is complete with the raised walls around the plant and installation of the roof (Please visit our YouTube to see videos of the progress).
Recent major milestones include: • Batch testing of dump material • Explosive permit received • Plant is operational • The project is in start-up mode We plan to commence full production and pour gold-silver dore this Fall.
Q
Mining has become a popular destination for investment. Why
do you think this is?
Demand from the emerging global middle class and Western government debt has led to record gold and silver prices. The well-worn slogan saying: “If it is not grown it must be mined”. The metal consumption continues to grow, mining industry will continue to explore and develop the mines to keep up with growing demand for metals. Gold holds its value in good times and bad, unlike paper money that erodes in value. That’s what makes it such a popular investment in all times, and especially when there is inflation, deflation and economic-political uncertainty.
Most mines are now large enterprises, requiring large amounts of capital, while the