TerraX- An Unstoppable Force in the Gold Sector

I’ve lauded the virtues of gold in previous posts in the light of political instability globally. Therefore, I see the development of high quality gold deposits only as a positive for the future. TerraX Minerals Inc. (TSXV: TXR) (“TerraX”) falls into the category of a gold junior miner that is exploring high quality gold deposits. And the results from its exploration of a rather massive area are immensely appetising.

In the middle of last year, the company received capital funding from a private placement to continue its exploration activities on the Yellowknife City Gold project. The company subsequently uncovered an impressive set of results at the Mispickel target on its Yellowknife City Gold Project, which have simply bolstered my confidence in this already exciting story.

The company is securely supported by an impressive team of experienced professionals. Joseph Campbell, Chairman and CEO, appears to have an instinct for solid gold discoveries, which include the Meliadine gold project in Nunavut in Northern Canada, which eventually sold for $697 million in cash and shares in 2010 to Agnico Eagle Mines (TSXV: AEM). Campbell is joined by Alan Sexton as VP Exploration, with more than 30 years’ experience, including that of site manager at Meliadine, from discovery through to pre-feasibility.

The added fact that management owns 11% of the company is a comfort for investors that they will act in the best interest of the company.

The deposit itself is located in Canada’s Northwest Territories. It spans 129 square km with 23 km strike length over eight drill targets. What really makes me enthusiastic about TerraX is that these districts spread across the property has the potential to be one major, interconnected, mineralised system.

What is more, the deposit is located in an area in Canada renowned for some of the highest grade gold mines in the country’s history. Two companies operated here until the early 2000s: Con Mine, producing 6.1 million oz at 16.1 g/t gold; and Giant Mine at 8.1 million oz at 16.0 g/t gold. It is worthwhile to note that these two companies did not go out of business because the gold dried up. Indeed, Campbell has said on numerous occasions that his company is not drilling deep underground. The results they are getting are close to the surface, which in theory should make for cost effective mining. It also means there is longevity here, a fact that would give any investor a warm fussy feeling.

Although TerraX’s property is underexplored, it would be relatively easy to set up mining in the area since it is surrounded by excellent infrastructure with year-round access. Additionally, the Blue Fish Hydro Dam can provide the property with low-cost power.

We’re waiting for more assaying results from TerraX, but this far we haven’t been disappointed. We see this as a solid investment that is set to pay off in the long term, and perhaps even sooner rather than later. With the gold price on the up, we think TerraX can become an unstoppable force in the gold sector.

TerraX CEO on being one of the six major high-grade gold camps in Canada


March 31, 2016 — In a special InvestorIntel interview, Publisher Tracy Weslosky speaks with Joseph Campbell, President, CEO & Director for TerraX Minerals Inc. (“TerraX” | TSXV: TXR) about being one of the six major high-grade gold camps in Canada. They also discuss how TerraX raised $5.2 million in challenging markets, management and how the TerraX project “resonated very well” with shareholder Osisko because of the style of geology.

Tracy Weslosky: Joe you picked up one of the six major high-grade gold camps in Canada and I’d like to know how TerraX managed to do this.

Joseph Campbell: Well, we had an opportunity to look at a company that had gone into bankruptcy and I asked for what assets they had and the core of this project was available in that sale. At the time it was a slow time in the gold industry and we picked it up for a very good price.

Tracy Weslosky: If it was that easy everybody would do that so I think that’s a bit of an understatement. Speaking of understatements, in the last year you’ve managed to raise $5.2 million in funding when nobody else could get anything from the well. What made TerraX so compelling that you managed to get people to write checks?

Joseph Campbell: Well, the project is one that has very high-grade so it attracts investment to it. We had developed a relationship with a company called Virginia Mines, who eventually merged with Osisko, and when Osisko saw this project it was one that resonated very well with them because it’s in the same style of geology as their previous deposits and so they were very interested in putting money into the project.

Tracy Weslosky: So Osisko is a shareholder, is that correct?

Joseph Campbell: They are. They hold about 17% of the company.

Tracy Weslosky: Can you tell me what — again, what makes this so compelling? I noticed that you just had drilling results to two recent announcements and they look quite fascinating to me. Can you tell us a little bit more about those?

Joseph Campbell: Well, we were in an area that we had sampled back in 2013. This was when we had first gotten the project and we had gotten some pretty good results on surface. There was about 7 gram material over 6 meters. It took us a couple of years to get into the area to drill it. The first hole we drilled was about 8½ meters of 13 grams so that was a good hit. We went underneath that hole and got 7½ at 23 so this was a very high-grade result, which is what we expect when we’re drilling in these deposits.

Tracy Weslosky: Of course we have always noticed that when we see funding happening and these kinds of drill results that as investors, we look at management. In your background for instance, you’ve taken companies from exploration to PEA to selling the company.

Joseph Campbell: I always tell people that my experience is in the backend of projects. I look at ore resources, major project management, bringing things into development. I’ve had a fair amount of career in open-pit and underground mining. I’m very comfortable with bringing a project along to the development stage…to access the complete interview, click here

Disclaimer: TerraX Minerals Inc. is an advertorial member of InvestorIntel.