I spoke with Jeff Wilson, President & CEO of Precipitate Gold
Q: You have recently issued several news releases. One of them updated investors on the status of your concession application for your Dominican Republic assets. Can you summarize the contents of the release for us?
A: The Dominican Government has granted Precipitate an “Extracto” for Juan de Herrera. This step represents a significant and critical threshold in the concession approval process. The remaining minor applicant obligations which will secure the final assignment of the concession are anticipated to be completed in about 60 to 90 days.
Q: In anticipation of the final concession grant, what are your next steps?
A: Precipitate is currently planning the next exploration phase for Juan de Herrera. An induced polarization (“IP”) geophysical survey is being devised for the Ginger Ridge area to identify prospective sub-surface targets. IP has proven to be a highly effective tool in identifying areas of buried gold-copper mineralization and delineating drill targets on other high profile projects in the Tireo belt, including GoldQuest’s significant Las Tres Palmas, Romero asset. Recent surface work at Ginger Ridge has identified a highly prospective zone yielding an open-ended 13.0 meter chip sample grading 1.5 grams per tonne (“g/t”) gold and 20 g/t silver within a gold enriched multi-element soil geochemical anomaly exceeding 1,000 meters long and up to 400 meters wide. IP anomalies identified from the proposed survey would be evaluated to identify targets for a possible first phase drill program, which could commence as early as late 2013, results contingent.
Q: In addition to the work on your Dominican Republic assets, you have been engaged in a due diligence process with respects to your option to earn 100% in the Cecilia project in Sonora, Mexico. Your most recent news item announced amendments to the property option payment terms. Can you summarize on both fronts for us?
A: Earlier this year, Precipitate sent a team of geologists to the Cecilia project. The group executed a preliminary surface exploration program which included mapping, prospecting and rock-soil-silt sampling. The evaluation of all available project data, along with our first phase exploration program will seek to confirm an existing mineralized zone at area of the project called Cerro Magallanes, while seeking to identify multiple new targets for possible expansion. Results are expected in the near future.
Recently, Precipitate reached an agreement with Gunpoint Exploration Ltd., whereby the companies have agreed to amend the option payment terms of the February 18 , 2013 Cecilia Property Option Agreement. Essentially, the due diligence period was extended for an additional four months from the date of the amendment and the option payment schedule was altered in order to defer the initial cash payment obligations for an additional 16 months. The amended terms reflect the Precipitate’s resolve to prudently manage its property commitments and payment obligations during this difficult capital market environment.
Q: What can we expect as possible catalysts in the coming months?
A: In the near term, we are expecting the full granting of the Juan de Herrera and Hato Nuevo concessions in the Dominican Republic. Later in the summer we plan on advancing Ginger Ridge to the IP stage. Results contingent, a possible first phase drill program could begin later in 2013. Additionally, the Cecilia due diligence process in Mexico is slated to be completed in the coming months. Its outcome will help determine the next steps with respects to the acquisition and assist in determining the next phase of work.
Q: What’s your current cash position and company burn rate?
A: We reported $1.2 million in the treasury as at May, 2013. Our G & A burn rate for Q2, and going forward, has been greatly reduced as part of our ongoing mandate to remain fiscally responsible during these uncertain markets.
Q: Aside from what has been discussed, is there anything else you would like to relay to our readers?
A: We are pleased with the continuing progress in both our Dominican Republic assets as well as the due diligence process in Mexico. At the same time, for an emerging company like Precipitate we see the current market environment as an almost unprecedented time of opportunity. We are actively searching for additional highly prospective assets in favourable mining jurisdictions that can be acquired under reasonable terms.
Thanks Jeff!