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NEWGENGOLD REVIEW
bullish long-term projections for gold prices.
Should gold prices continue to be strong, there is a belief
that risk appetite will return and companies will become
more expansive in their approach to exploration.
Resolute Mining Ltd appears to be striking the balance
between keeping its finger on the pulse of opportunities in
emerging jurisdictions while maintaining a healthy pipeline
of growth through brownfields exploration.
Through its cash flow, Resolute is able to spend $10 million
a year on select greenfields prospects.
“The market is expecting 1 moz-plus maiden resource [from
greenfields],” Resolute general manager exploration Bruce
Mowat said.
“A maiden resource [20 years ago] was 250,000oz gold but
Intertek once again sponsored a gold nugget lucky dip draw at that is not what we expect anymore. Companies I speak to
NewGenGold. Intertek global minerals, exploration and production leader won’t release their maiden resources until they get 2 moz.
John Fowler (right) presents the nugget to Andrey Butnyakov The majority of Resolute’s exploration funding in the past
10 years has “astronomically” added reserve and resource
ounces to the company’s inventory.
Burnett, now a non-executive director at Regis Resources
Ltd, was bullish about the base metals potential Sipa had in “But it doesn’t go on forever and we realise that. Most
Uganda, however, the noise emanating from the Paterson boards of medium-capped companies are somewhat wary
province in Western Australia had investors more interested of greenfields exploration and when I say ‘high risk high
in the Tier 1 jurisdiction opportunity. reward’ they only hear high risk,” Mowat said.
“My shareholders don’t like the fact that we are in Uganda,” Nevertheless, Resolute has gone through a process of
Burnett said before leaving Sipa. backing six juniors in the Africa space and if Mowat had it his
way, branching out further would be the path taken.
“I think the challenge for us is to educate our investors about
what greenfields exploration is about. Now we are drilling “I am incredibly encouraged by what I see in the Arabian
under cover [in the Paterson], drilling for fundamental geology Nubian Shield; it is the last frontier in Africa,” Mowat said.
and to ground-truth geophysics; that is a big difference from “We have invested in Sudan and Egypt and we hold equity
just drilling a target to make that discovery. [Shareholders] in a 5 moz gold deposit in Sudan. I am incredibly positive
don’t see the difference, so we have to communicate our about greenfields exploration in Africa. Everything we have
stories to get the investors on board.” found in the last five years has been outcropping, so there
Introducing and convincing shareholders to support high- are things to be found but they are in difficult jurisdictions.”
risk, high-reward greenfields exploration endeavours is just
part of the task for companies in Tier 1 jurisdictions, let alone
the intrepid explorers taking on unknown territory. NewGenGold co-convenor Keith Yates with Dr David Gellatly at
NewGenGold 2019
OceanaGold Corp manager, project generation (Asia Pacific)
Peter Caristo said attitudes towards mining in general were
matters requiring attention regardless of jurisdiction.
“It is getting harder and harder in some parts of the world,
you could be in a Tier 1 country, but then you might be
battling anti-mining sentiment,” Caristo said.
OceanaGold owns the Haile project in South Carolina which
doesn’t quite have the mining-friendly reputation Nevada
does.
“The opportunities are there and you can work those
opportunities, but there’s an uneducated workforce, they
don’t know what mining is; the next largest employer in the
district is a jail,” Caristo said.
“It is a good jurisdiction, but there are other challenges.”
North America and Canada have provided growth
opportunities for Australia’s mid-tier gold companies recently.
While some of the North American and Canadian acquisitions
made are high-cost operations, it is an indication from
industry that bigger production profiles are better amid

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