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Hi Ho Silver Resources is in the right place at the right time as
the production of molybdenum and the demand in China continues to increase for this very
versatile metal used in paint, ink, electronics and the petroleum industry
Exploration
Metals/Mining
(HIHO-CNQ)
Hi Ho Silver Resources Inc.
#15A – 3045 Southcreek Road
Mississauga, Ontario, Canada L4X 2E9
Phone: 905-602-4653
Fred Fisher
President
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
October 26, 2006
BIO:
Fred Fisher, President
Has been a director of several publicly traded companies including currently acting as
President of Golden Hope Resources, symbol GHPR, Nasdaq. For over six years, he lived in Asia
specializing in raising venture capital and in related investor relations projects. He
holds an Hons B.A. from York University and was a Registered Representative with a Vancouver
based firm in the mid to late eighties. Hi Ho Silver will be his main project and will be
the primary person responsible for all corporate aspects including raising money,
attending trade shows, promotion, broker liaison, property development and further
strategic property acquisitions.
Company Profile:
Hi Ho Silver Resources Inc is a junior exploration company trading on the CNQ stock
exchange in Canada and on the Frankfurt stock exchange beginning Nov 1st. The company's
main project is a Molybdenum project located near Penticton B.C. in which it has the right
to earn a 70 per cent interest. Geophysics and IP surveying are nearing completion
with drilling to begin the end of November. There are two known ore bodies on the
property, which are based on historical data. The goal of drilling will be to delineate
and expand those known zones. Hi Ho has also acquired a 100% interest in a high grade
silver property also in B.C. and exploration will begin on that project in the
Spring/Early summer of 2006.
CEOCFO: Mr. Fisher, will you tell us a bit about yourself and
what attracted you to this project?
Mr. Fisher: “I was a stockbroker after graduating from
the university in the 1980’s. Out in Vancouver, I was primarily raising money for
junior mining companies and I came from a mining background with my dad, doing similar
things and developing projects such as oil and gas. The market crash came and I moved back
to Toronto; I got into investor relations with mostly mining companies, moved to Asia, and
did mergers and acquisitions with Nasdaq companies. I moved back here and started this
project a few years ago; we started trading on August 31st (2006). I was
attracted to this particular molybdenum project because a geologist friend of mine sat on
some of the properties for quite some time and prognosticated that Carmi molybdenum
eventually one day move significantly higher. It has become a very valuable property;
anything above the $5.00 price range is, so at the current level of 28.50 it became
attractive. We made a deal Hi Ho Silver and that is the main project that I working on
right now.”
CEOCFO: Will you tell us more about the property?
Mr. Fisher: “It is in BC and about 33 kilometers from a
sizeable town called Penticton, and about five kilometers from a very small town called
Beaverdell; it is just off the highway so access to the property is very flat. BC is quite
mountainous, but not this region. It is workable all year round and it is an open-pit
scenario. It has had an extensive history; first discovered in 1960, it had a number of
people working on it; Kennecott Mineral Company (subsidiary of Rio Tinto Group-NYSE: RIP),
Placer Dome Inc (NYSE: PDG), and a few others. There are a total of 188 drill holes with
about two $2 million in work spent on it. I have quite a database to work with. It went
into the 43-101 report; you have to put a report together, to compile data and verify it
as well. According to old historical data, it outlined an ore body of about 22 million
tons grading .11%, with another feeder zone of four million tons. That zone has not had a
lot of work done on it and the concentration of when I skipped drilling; we are doing IP
(induced polarization) and geophysics right now. When we start drilling, we will
concentrate on that zone and then go reconfirm the old zone. We are looking to try to
double or do better than. We are trying to prove out forty to fifty million tons trading
at around .1%.”
CEOCFO: Other than the
fact that you knew someone with this project, why did you choose this particular piece?
Mr. Fisher: “I was attracted to Hi Ho Silver because I
liked it and because of the size. I had some ideas on silver projects; I am a believer in
silver at these prices and I am going to look for additional silver or another project.
With the size of the Carmi molybdenum project, if you start to prove up the numbers that
you think could be there, it could be a billion-dollar plus project over time. Molybdenum
was a forgotten mineral for a long time until Southeast Asia starting booming and price
hit as high as $34.00 a pound and I do not think there is any slowing down. It is a key
alloy; 75% of all moly produced goes to steel, it is a versatile mineral. It just seemed
like the right thing to do at the time.”
CEOCFO: Are there new
technologies that you are able to take advantage now that were not available to others
looking at this project?
Mr. Fisher: “In the original parts of geophysics, the
airborne and IP surveying, you can do 3-D models; the mapping is much more detailed. You
have much less chance of drilling where something may not be. Outside of that, the old
drilling and assaying has not changed much in 20-40 years; you still drill and you are
still out there the same way. The computer technology of finding the ore body, the twists
and turns of where it goes and feeder zones under the ground are much more accurate and
complex.”
CEOCFO: You raised money
with your IPO; how far will that take you?
Mr. Fisher: “Not very far; it is structured just enough
to get me through the initial phase of geophysics and some early drilling. I am actually
just trying to close off another financing for anywhere from ½ million to $1 million and
that will take me through to at least the spring.”
CEOCFO: Has it gotten a
bit harder now that commodity prices have been coming down somewhat?
Mr. Fisher: “I have not noticed; I am sure that some
people do. Brokers tend to be lazy, they like to find excuses if things go a bit soft.
However, I have some connections in Europe and Asia and as soon as long as you get
somebody that has a long-term vision, then I have not found it to be a big problem.”
CEOCFO: Why should
potential investors look at Hi Ho Silver as opposed to the many others that are out there?
Mr. Fisher: “There are not that many strict molybdenum
explorations projects; maybe 10 or 15. Some have been on the board working longer than I
have but didn’t have the data to work with. However, once you start to define the ore
body, the asset value grows rapidly. And I expect to have another property or 2. I can
work this all year-round; it will be expensive drilling ongoing the next three or four
years until we have finally pinched off the whole deposit and at that point we should have
quite an attractive share value.”
CEOCFO: What might
people miss when they first look at HiHo Silver?
Mr. Fisher: “If you are just looking at what we have
historically, you would be missing the potential of the smaller high-grade dome; hopefully
they will not be missing it as we drill it because it could expand and gets richer. What
they should be looking for is that we are starting to increase the whole size of the
deposit. We won’t be doing a great deal on the old zone until we have to and we will
at some point have to drill in-between old holes to reconfirm it, but we are really
focusing on high-grade feeder zone which should be quite exciting.”
CEOCFO: I see from some
of your new information that there are some new uses for moly; why should people be
looking at that?
Mr. Fisher: “Molybdenum is a versatile metal; you use it
in paint, ink, a catalyst in the petroleum industry as it takes out the organic sulfurs.
It is used in electronics and special situations. They keep finding new uses for it but
its primary use is in steel. As long as the Chinese keep building, they keep picking up
all the moly that is being produced at this point. They used to be a net exporter; they
are now a net importer. Moly production has dropped significantly over the last few years
for various reasons, and now they need to import that much more.”
CEOCFO: What should
people take away from this interview?
Mr. Fisher: “I hope people take away the fact that I
have a good project; I am going to give it an honest shot to take it into the stage where
it should be in production. I am not planning to take it into production myself as that
might be beyond a small guy’s capability. I will try to develop to the point where I
do a deal with a bigger company or I look around and try to sell the asset outright to the
Chinese; they have been shipping ore concentrate direct to China and processing it there.
At that time, that is what I would be looking to do. I would that hope if people would
want to give it a shot for a 3 to 5 year run, I think we could prove up an interesting
asset.”
CEOCFO: In closing,
could you address your stock exchange listing?
Mr. Fisher: “I know we trade on the CNQ stock exchange,
which is a small alternative exchange in Toronto, Canada. I have a U.S. lawyer working on
the 20F filing and it should be completed soon. As soon as we do that, then we are going
to make co-listing applications and do the due process to be on the OTC bulletin board in
the U.S. and hopefully we get more exposure in the United States as we move along.”
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