The Best Gold Production Guy in the Business
I don’t know how many mining tours I’ve done over the past 15 years. It’s enough that when a company calls me up today and starts talking about a new project they have, I think back to the first time I visited the project when some other company owned it with visions of grandeur.
The mining business has a giant problem with education. Everyone has far too much book learning. I’ve said for years that mining is the art and science of extracting minerals from the ground at a profit. Everyone forgets the “at a profit” bit because none of them ever had a job in a 7-Eleven and ever learned how to sell a quart of milk “at a profit.” Master’s degrees are common and there are a lot of PHDs around but few who can actually mine at a profit.
My paths have crossed a few times with a guy I consider a giant. He focuses on the destination, not the journey. While we never came to an intersection at the same time and I’ve never actually met him, I can be impressed from afar. That would be the renowned Chester Millar, subject of an excellent review from ceo.ca a couple of weeks ago.
I know of Chester Millar due to a couple of deposits that he operated as an individual rather than under a big corporate umbrella so most investors don’t know of his involvement. One was La Colorada gold mine about 40 km southeast of Hermosillo Mexico. Chester owned and operated that until the collapse of gold prices in 2000. Pediment bought the project and held it for years before selling the company to Argonaut Gold in early 2011.
I visited the project three or four times and every time I went I beat on Mel Herdrick and Gary Freeman of Pediment to put it back into production. There was millions of dollars in gold and silver sitting on the leach pad. They wouldn’t do it. Argonaut bought Pediment and began production at once. Oh, well.
I visited another Chester Millar legacy exactly three years ago when I went to see the El Barqueno gold project of Cayden Resources in 2013. Naturally Chester had been there first and has put it into production. Cayden greatly expanded the resource and got bought out by Agnico Eagle eighteen months later. The shares that I recommended at $.72 are now worth $5.40 in Agnico.
I loved the deposit because the prior production opened up the resource and you could actually look at the mineralization. I told Cayden President Ivan Bebek that the project was a lot bigger than even his really excellent technical people believed. It seems that Agnico Eagle agreed with me. Naturally Chester Millar was there first. Cayden managed to score a 600% gain right in the middle of one of the worst gold bear markets in history.
Chester Millar is back in his old stomping grounds of Northern Mexico where he is working to put the Sanatana gold project into production with Corex Gold Corp. (CGE-V) Craig Schneider, President and CEO of Corex has put together an all-star team around Chester Millar with Chris Babcock formerly with Alamos Gold and El Dorado Gold and Doug Ramshaw.
Corex has been permitted to build a pilot leach pad and processing plant. They expect to begin trial production in Q2 of 2016. We are in Q2 of 2016.
For the last 25 years, one of the best bets in Mexico has been on Chester Millar. He mines the way people used to mine and he makes money for his investors. We have begun a new gold bull market; gold is going to go a lot higher. While Corex has no 43-101 resources or reserves and hasn’t done a feasibility study, neither did the Romans in Spain or the Spanish in the New World before him. It worked for them and I believe it will work yet again.
All that we can hope for is that some of his sense rubs off on the new younger crowd in mining that will one day replace Chester Millar. If all he does is teach them the meaning of the word “profit” I’ll be content. It’s a good word to know.
I participated in the latest financing for Corex. They are soon to be an advertiser. Use your own good sense and do what works with your own financial plan. Do your own due diligence.