The Gold Project Turning Heads in One of the World’s Friendliest Mining Jurisdictions
Meet the early-stage junior gold explorer that’s building shareholder value by acquiring exceptional exploration prospects in Nevada and the man at the helm.
Peloton Minerals Corporation (PMC) (CSE: PMC, OTC: PMCCF, Forum) is focused on the acquisition and exploration of potential high-grade gold projects in Elko County Nevada. PMC’s core exploration projects are three Carlin-style gold prospects situated on the Carlin and Long Canyon Gold Trends in Elko County, and one past-producing gold project in Montana’s historic Virginia City Mining District.
Among the Company’s most noteworthy projects is Golden Trail – a gold exploration prospect that has a Carlin-style alteration mineral assemblage associated with anomalous gold. The prospect is 100% owned by Peloton, comprises 880 acres and is located on the northeast margin of Wells Nevada, about 80 kilometres north of the Long Canyon Newmont-Barrick joint venture. And it is here where Peloton is soon set to drill a series coincident anomalies.
In this intriguing vodcast, Stockhouse Media’s Dave Jackson by joined by Peloton’s President and Chief Executive Officer Ted Ellwood to talk about gold exploration boom in northeastern Nevada and all things Peloton.
Peloton Minerals – Vodcast CEO Interview with Ted Ellwood
SH: So first off, Ted, can you tell us a bit about yourself and your company Peloton Minerals Corporation?
TE: I come from the business side of this industry. I’m an MBA, not a geologist, and I’ve been playing my role in the exploration and mine development industry for about 30 years now, primarily focused on areas within Canada and the United States. Peloton is a pure exploration company focused on Carlin style gold projects in Nevada. Our ultimate objective is to get taken over by a major mining company. And therefore we focus on the types of prospects or projects that we believe would be attractive to the majors, as we add value through our exploration. We have no intention of transitioning to a producer. The type of deposit that we’re looking for is often just too big for that. So what we will do is what we do best, which is exploration. And when the time is right, we will hand that off to a producer to let them do what they do best.
SH: Stockhouse metals & mining investors know there’s more to Nevada than the bright lights of Las Vegasâ€¦it’s one the most prolific mining regions on earth, producing roughly 175 tonnes of gold every year. Can you walk us through the jurisdiction… pros and cons?
TE: To be honest, I can’t think of many cons when it comes to working or exploring in or mining in Nevada. They support and really encourage the industry. The geology is great. The major Nevada gold trends have just produced, you know, mine, after mine, after mine, since the 18 hundreds, and the Carlin style gold deposits typical in Nevada are hosted in a soft sedimentary rock, which is easy to dig up and process. As a result, not only is Nevada one of the most prolific gold hosting jurisdictions, it is also one of the lowest cost gold producing regions.
SH: Specifically, what kind of a land package do you have in the region?
TE: We’ve got three projects right now. All of them located in Elko County, which is probably the place to be as far as the Nevada goes. All three of them are about 900 acres. The significant thing, among others, is that all three are located on a major Nevada gold trends. Two are located on the North Eastern margin of the newly identified Long Canyon gold trend. And one is on the historic Carlin gold trend itself.
SH: Among the Company’s most noteworthy projects is Golden Trail – a gold exploration prospect that has a Carlin-style alteration mineral assemblage associated with anomalous gold. What exactly are Carlin-style deposits and what makes them different from, say, epithermal veins or greenstone-hosted deposits?
TE: Well, I won’t get too technical and wade into any geologic debate about what the specifics of a Carlin style deposit are, but in general, they are sediment hosted gold deposits often with rocks that they call dirty carbonate rocks, and the gold is extremely fine. One of the nicknames for the Carlin style deposits is the Invisible Gold Deposit., in fact. So in further layman speak, the Northern Nevada area is actually an old seabed or old ocean bed. And the rock there is sedimentary and soft, limestone, shale, that kind of thing. And the way these deposits were formed was that way back when, when you know, a crack in the earth developed, and it allowed highly pressured water often containing gold to shoot up toward surface, when that water came up to surface it came up at about 1200 degrees Celsius.
And when it hits that sedimentary rock, it goes through that soft rock like a knife through butter at 1200 degrees. So, it spreads or disseminates the gold very evenly over a large area, depending on the volume and the force of the water. So, what you end up with is a very, you know, large, evenly distributed gold deposit that is consistent. It’s not very difficult to mine, often by open pit, as opposed to some of the underground say gold quartz vein systems. They’re very difficult to predict where they’re going. Sometimes they disappear or they’re faulted away, or you have bad ground conditions. So it’s, it’s a much more challenging type of deposit, the vein systems, whereas these, these large ones in Nevada, like I say, are very consistent and that’s one of the reasons that the major mining companies like them so much.
SH: You’ve just announced your drilling contractor is now mobilizing to complete a 24-hundred-foot reverse circulation drilling program consisting of about 12 drill holes. Can you walk us through these target zones and what you hope to find?
TE: We’re quite excited about this program as we’re drilling a what’s called hydrothermal alteration anomalies that are also coincident with favorable geology, chemistry, and geophysics. If I go back to that example I just mentioned earlier of the 1200 degree water coming to surface, hopefully carrying gold, when it hits the limestone or the surface it highly alters the rock both physically and geochemically. So it can be identified. And that’s what we call a hydrothermal alteration anomalies. And those are the targets for this program where the water basically vented to the surface. We’re excited as well, because as I mentioned, these are what we call coincident anomalies. And by that, the geology also tells us to drill in that particular spot, as does the geochemistry and the geophysics. So it’s all coming together in these coincident locations.
SH: Ted, can you give us some “boots-on-the-ground” details of what you’ve accomplished at the Golden Trail project to date?
TE: Well, boots on the ground, I guess, can be best illustrated by the rationale for the drill targets. For this year’s program that I just described, proceeding the selection of these targets was many summers of field work, completing detailed geologic mapping, extensive geochemical sampling, over 900 surface grab sample assays taken, detailed geophysics, and an airborne survey mapping the project with newer technology called hyperspectral imaging.
SH: Can you tell us a bit about your extremely experienced management team and the long-term strategy they bring to the company moving forward into 2021 and beyond?
TE: Yes, collectively our board and senior management have about 300 years of combined experience in this industry. And, and going back to our original objective, we’ve consciously decided to just be an Explorer and to focus on that one particular aspect of the mine life cycle. Largely because of our experience in the business. My role brings about 30 years of experience supporting the business side. Our chairman is a mining securities lawyer from Toronto, who is fairly well-known. We have an environmental person on the board, as well as a mining engineer that’s worked around the world, a couple of other additional finance people. And our senior geologist is recognized or regarded as an expert in the great basin area of Nevada, where we are focused.
SH: What can you tell our investor audience regarding the current valuation of your stock and why you think it’s a good buy right now?
TE: Well, it’s undervalued of course!Â The way I look at it is that Peloton offers investors a portfolio of early stage Carlin style prospects, with excellent geology and a tremendous potential upside on any one of them. It also offers a management team that’s capable of moving the portfolio forward. The Long Canyon deposit, for illustration, was a Carlin style deposit discovered nearby our three projects in in Nevada by a similar size Canadian company. That company started out at about 25 cents per share, and ultimately was taken over by Newmont at $14 a share. The total transaction value was $2.3 billion. So that illustration provides some perspective on the potential value of these Carlin style deposits that we’re exploring for. So, we have three of them in the portfolio, all of which have tremendous upside potential. And in addition to drilling at Golden Trail right now we are in the process of permitting the other two, so that all three will be ready to go for drilling, come this spring.
SH: And finally, Ted, if there’s anything else that I’ve overlooked and you’d like to add, please feel free to elaborate.
TE: No, I think you’ve covered it quite well. What I might add is to thank our shareholders for their continued support. And for new potential investors, please feel free to visit our website for more information, you can download project reports there, that kind of thing. You can also send us a message if you like with questions, or feel free to call myself or our vice president of business development. We’re always available and happy to take your call. All of our contact information is available on the Peloton website.