Thanks Mr. Jean Labrecque, President of Glen Eagle $GER, for talking to me about the company. Where have we been? What next? Toll milling for local miners in Honduras, eh? OK!
PB: Hello, I'm Peter Bell and I'm here with Mr. Jean Labrecque, the President of Glen Eagle Resources. Hello, Jean!
JL: Hi Peter, how are you?
PB: Very well. Nice to talk to you. It's June 16th 2021 and the company has news out! It's been quiet for a while but wow -- what a surprise here today.
JL: Yes, indeed. Hopefully this this technology that we will try at the plant will live up to our expectations. This is a new green tech that we will add as a single circuit to the Merrill Crowe production system. It is not so expensive at a little over a hundred thousand dollars and we can try it because it's compatible with the technology that we currently have. The interesting about it is that because it's green tech, the residues could be used again for the small miners to do bricks or for building roads, which is not the case with our current tailings with cyanide leach. It's always hard to get rid of the tailings with cyanide and this new technology is more environmentally friendly. Another good thing is the leach time. This tech accelerates the leaching time by a factor of 46, depending on the ore. Recovery is supposed to be really good, as well. We we tried it at the lab but now we need to try it out in operations!
PB: What an amazing story. This small scale production niche is great -- there are a some of these stories out there in Canadian junior mining markets but they're few and far between. Most of them are fairly mature and have gotten a bit of market respect and some traction on the operational side already. To look at Glen Eagle with the operation in Honduras, I want to call it toll milling but some people think that's a bad word.
JL: No, it's not.
PB: I see production, Jean, so I'm bullish.
JL: Yes. We've had two rough years in the last two years -- COVID was one of them and the fact that we uh didn't have enough ore supply before that. When we depleted our small deposit, then we started running short on material and it was a lot harder than I thought to get the miners interested in what we're doing. But that's all been taken care of. Now, I think we're in a much better position. We have the ore feed at a very good price -- at least 30 percent less than what we used to pay. Put all that together and I think that we're in a much better place than we were even a month ago.
PB: Shoutout to Inversiones North South Assets, the partner that came in April and changed things for you. Some of this stuff is a little subtle and people may gloss over it if they don't pay attention to the details, but the terms of how you deal with the miners, the refineries, your equipment providers, and everything is really important. What this other company brought to the table with you,in terms of their balance sheet and their people, was a game changer. And now this new technology for non-cyanide leach of gold, it’s another level again. Where are we going now? Looks like things are opening up in a big way.
JL: The next destination is to get one of our old concessions sorted out. This is the first one we had, but we were never able to get in due to social problems. We're working on it again. The concession belonged to Rosario Mining, which was the biggest mining company in Honduras for 30-40 years. They drilled some holes on this property in the past and they came up with some pretty serious numbers. When I had a chance to put my hands on that property, I jumped at it and now we have the property, but it's a question of looking at the social environment there and trying to access our property. When it was given to me that one was known as one of the best mining properties in Honduras. We want to get it going again.
PB: There are a lot of moving pieces too. It's one thing to mobilize a drill rig for a few weeks and get in and get out. It's another thing to build a plant. it's another thing to start buying ore from local miners. You're you're very much embedded in the community here and I'm not surprised it's taking a while to get some traction, but persistence beats resistance. When you start to break through, one way or another, it opens up again. Anything else to say about what to what to expect what to look forward?
JL: We announced this drilling program quite a while back, but we didn't do all the drilling yet. It was a small program of 2,000 meters and we drilled about a thousand meters. We still have a thousand meters to drill that is almost all paid for. It's been pre-paid 70% of it, so it's just a question now of putting the drill in a place where we know that we're gonna hit right away. That's why I've been waiting to spend the other thousand meters -- I want to make sure that when we start drilling, we're going to get something pretty solid. Then, we can continue the program. One thing that I don't want to do is to drill blind. We have a lot of areas now where we think that we could put the drill and we could access the concession, so I would say that's a big one in addition to this new green technology we announced today. There is also the fact that we have the plant and we have secured the ore feed at a lower cost. I think that Glen Eagle is a turnaround situation.
PB: Thank you. Very well done, Jean. And just to ask about the drilling grade -- will this be grade control for the production guys or real exploration?
JL: We have a supplier now who are bringing ore from a concession they own and they want to cut a deal with us. It's also related to NSA, the Mexican group who is now a partner with us. We're waiting for one thing to become clear regarding where we would like to place the drill, which the same spot as where the ore is coming from. We want to secure access there and the guy is willing to cut a deal on his concession. That's the thing that I'm working on right now.
PB: You're really out there breaking some new ground, Jean. There are miners in this community, but there are no other public companies in the area around you.
JL: People don't understand how difficult it is to put all the pieces together when you're in a foreign country. Certainly, there's no doubt that this pandemic really affected small companies. The larger companies could weather the situation a little better, but being small can be difficult. And then the local laws can be complicated too; if people cannot come to work then you're not allowed to lay them off, say? Or, if you send them home then you have to pay them. It was a very difficult year, but I think that's pretty much all behind us now. And that's why I really that we could be in a major turnaround for the company.
PB: Well done. Mr. Jean Labrecque, President of Glen Eagle Resources. Thank you very much!
JL: Thanks, Peter. Nice talking to you. Bye
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