Interview – Delta Resources DLTA.V – December 14, 2020
PSN: For those who are not (quite) familiar with Delta Resources (TSXV:DLTA – OTCBB:GOLHF – FRANKFURT:6G01), how would you like to describe your company and activities to them in the best way possible?
A: Delta’s a Canadian mineral exploration company exploring two outstanding projects in Quebec and Ontario for Gold and Polymetallic (Gold, Silver Copper and Zinc) mineralization. We’ve acquired the two properties in October 2019, have done the field work and are now drill testing our targets.
PSN: What are the short- and long-term goals of DELTA? And what business strategy is being used to achieve these goals?
A: Delta’s short-term goal is to continue its 7,000-metre drilling program at both properties to make a new discovery of economic ore. The long-term goal is to discover enough of this ore to put a deposit into production. Should that economic deposit be large enough and necessitate enormous amounts of capital, and if the price is right, Delta would consider selling the project to a major minor or having a major mining company as a partner.
PSN: More specifically, what is currently in the pipeline of DELTA for 2021? What are the prospects you can share at the moment?
A: Delta just completed about 3400 metres of drilling at its property in Chibougamau, Quebec and is awaiting results. At least another 2000 metres are planned in January and February of 2021.
In Ontario, on Delta’s Thunder Bay property, a minimum of 2000 metres of drilling are planned to begin in late February (or whenever a drill rig becomes available).
There will be a multitude of results coming your way for at least the first 4 months of 2021.
PSN: How is DELTA different from its competition (as there are many other companies in the area)? In other words, what is your strength that separates DELTA from the rest?
A: I believe our major strength lies in the way we approach exploration. We have a very firm selection process for the acquisition of our properties and the criteria are difficult to attain. We look for evidence of mineral endowment in the area and very broad alteration zones among other criteria, on projects that we deem to be under-explored.
The rest is taken up by our outstanding technical team, led by Michel Chapdelaine.
PSN: What makes DELTA-1 and DELTA-2 such high-potential projects and what are the characteristics and qualities of these two projects?
A: At DELTA-1, 50km west of Thunder Bay, Ontario we outlined an extremely high gold-in-till anomaly and kilometre-scale gold-bearing alteration halo that point to a never-tested regional structure that we’ll be drilling in February 2021.
At DELTA-2, in the “red-hot” Chibougamau District of Quebec, we have potential for two types of deposits. The first type of target consists of hydrothermal-gold similar to the Chevrier deposit where our neighbours to the west just intersected 10.74 metres grading 13.0 g/t gold. The second type of target consists of gold-rich VMS deposits such as the very high grade past producing Lemoine Mine where our neighbours to the north are currently drilling. Lemoine was a 757,000-tonne deposit grading 9.4% Zinc, 4.2% Copper, 4.5 g/t Gold and 82 g/t silver.
PSN: Which (other) areas would you like to add to your business? And what does DELTA look for when exploring new opportunities?
A: Delta is always open to new opportunities. That said, we discussed our selection criteria earlier and we are very stringent when it comes to acquisitions. We want to stay in Canada and preferably Quebec and Ontario but the geology and the economic potential will be the deciding factors in the end.
PSN: Which permits has DELTA acquired this year, why are these permits important for the business and which other permits would you like to obtain in the near future?
A: At both properties in Quebec and in Ontario, we’re fully permitted for exploration at the moment. In Quebec, as our drilling program expands, we’ll likely need more areas permitted at that end.
In Ontario, we’re fully permitted for another 10,000 metres of drilling. Because one of our targets in Ontario lies besides or underneath the Trans Canada Highway, we’ve also had to obtain an encroachment permit from the Ontario Ministry of Transportation. We obtained that permit last week. The permit is valid until November 2021, for 14 drill holes totalling over 4200 metres.
PSN: A property scale-till survey was conducted in September and October 2020. When can we see the results and figures of this survey?
A: You are correct. That survey of 134 samples was completed at the end of October this year. All the samples have been sent to the lab for gold grain count and gold grain characterization. We expect the complete results in January 2021. So, more results to come.
PSN: What does DELTA expect for the gold price in 2021, given that things have gone so well this year?
A: Honestly, we don’t focus much on what we can’t control. The price of gold is not something we dwell on. That said, we know there will be very substantial stimuli packages by governments around the world to help kick-start the economies of the world. We feel this will help propel gold to new hights in 2021. I should also mention that Base Metals will also benefit from these stimuli packages. Delta’s exposure to base metals in Chibougamau then becomes another reason to follow what we’re doing.
PSN: Which events has DELTA experienced since the outbreak of COVID-19? How did the pandemic effect the business and how did you deal with this?
A: Truthfully, the pandemic didn’t affect us much at all. In early 2020 when Canada was shut down, we had just received a huge amount of data from our geophysical surveys at our Chibougamau property. So the work to interpret this data could be done from home.
For field work, we’ve taken measures so the pandemic wouldn’t affect us. In Chibougamau, six out of 10 of our crew was from Chibougamau and the rest of the crew was staying in one house. So we were operating in a bubble. In Thunder Bay, a similar bubble scenario was adopted. There’s no better place to isolate than in the field.
Now, during drilling programs we operate much in the same way with crews staying together in a bubble.
That said, we’re very aware of what’s going on and we’re staying informed of federal, provincial and local government rules and regulations.
PSN: What can be shared about DELTA’s figures over the last quarter and financial year? To what extent has it fulfilled the objectives and business goals?
A: We completed a $1M hard cash financing in December 2019 and we just replenished our coffers with another $1.5M of hard cash in September 2021. Delta also had a cash influx of $350,000 from the sale of our Bellechasse-Timmins property in South Eastern Quebec. We started our drilling program in November with about a $2M treasury and that’s enough to meet our goals for 2021, especially considering that there is an additional $1.35M to be received with the sale of the Bellechasse-Timmins property.
PSN: In overall, what is the current financial state of the assets, income, revenue, and possible debts? In other words, how ‘healthy’ was DELTA in 2020?
A: I addressed most of this earlier. In November, prior to drilling, Delta had a healthy treasury of about $2M. We’re also expecting an influx of $1.35M in 2021 from the sale of Bellechasse-Timmins. Exploration is an expensive business doesn’t generate revenue however we feel these funds should carry us for 2021. Delta has no debt and doesn’t intend to borrow.
PSN: Why did DELTA enter the OTC stock market? What has it achieved for the company since then?
A: There’s huge appetite worldwide for resources at the moment. The OTC allows Delta to be exposed to the US markets and its investors. We’re also listed on the Frankfurt exchange to get exposure to the European markets. We plan to more aggressively market our company to Americans and Europeans in 2021.
PSN: For those being quite unfamiliar with this industry, what is the main incentive for a company like DELTAto make it profitable and interesting for new investors or shareholders?
A: Delta, like most junior exploration companies is a good fit for investors that have some risk-capital and would like exposure to gold and base metals. In our industry, it’s not uncommon to see a ten-fold return on your investment or more, on a single drill hole with good results. Good recent examples of that are companies such as Amex, Great Bear, Kodiak Copper or Azimuth. We feel at Delta that we’re on the cusp of such an intersection. Delta has so many targets on its properties that the probabilities for a new discovery are excellent.
PSN: Why should potential shareholders choose for DELTA? What are the (personal) benefits for a shareholder who becomes part of you?
A: Delta has a solid share structure, is well capitalized, has no debt and gives investors tremendous upside with exposure to Gold and Base Metals. There will be plenty of news flow in the first half of 2021.
PSN: Finally, is there anything that has not been discussed in this interview about DELTA that you would like to share with us?
A: Honestly, I think we just about covered it. Thanks!
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