Between them, the board at VR Resources (CVE:VRR) have got an enviable track record of exploration success.
Chief executive Mike Gunning ran Hathor Exploration until it was sold to Rio Tinto for C$654mln. He then built on that success as chairman of Alpha Minerals, which was acquired in 2013 for C$190mln following the discovery of the Paterson Lake uranium deposit in Saskatchewan.
Chairman Darin Wagner for his part was chief executive of West Timmins Mining when it was acquired by Lake Shore Gold for C$424mln in 2009.
Between them, these two have been involved in more than C$1.5bn in value creation in the mining sector, so it’s hardly surprising that interest in their new vehicle, VR Resources is rising.
Exploration upside across a broad commodity suite
VR spent is first few years as a private vehicle, working up its portfolio of gold assets in Nevada, USA. Key projects amongst this portfolio are Junction, Bonita, Big Creek, New Boston and Danbo.
At the Junction copper-silver project, exploration is ongoing along a six-kilometre vein-dyke trend. Drilling is due to get underway imminently.
At the Bonita copper-gold project, meanwhile, first pass drilling took place in November 2017, and this work was followed up in June 2018. Surface work is ongoing.
The current focus at Bonita is the Hemco target, which was the subject of several drill holes in the summer. The thinking is that this target could reveal a seven-kilometre by seven-kilometre porphyry copper-gold system. An environmental baseline study has already been initiated, and permit applications for a wider drilling programme have been submitted.
The Danbo project is a district-scale tertiary gold play. The company flew airborne surveys in June and collected 54 rock samples. Permits for drilling have been submitted, and it’s hoped the go-ahead will be given by the end of the year.
Well financed with simple ownership structure
VR is well financed for its exploration strategy, with a working capital of C$3mln as at the June 30th reporting period.
VR owns its exploration assets outright and evaluates new opportunities on an ongoing basis, whether by staking or acquisition.
Directors and management own 15% of the company.