KAT Exploration Inc. (KATX-OTCPK)
July 17, 2009 Issue
The Most Powerful Name In Corporate News and Information
KAT Exploration Is Focused On Bringing Their Precious And Base Metals Properties In Newfoundland To A Level Where They Can Do Feasibility Studies And Attract Joint Venture Partners
KAT Exploration Inc. is an exploration company
based in Mount Pearl, Newfoundland and was incorporated in December 02,
2005. The company has a variety of mineral properties consisting of Gold,
Copper and Silver.
is a co-founder of Kat Exploration Inc., and has been president since the company's incorporation in December of 2005. Mr. Stead worked directly in the mining industry from the early to late 70's, where he first started with the Iron Ore Company Of Canada and worked for Noranda at their Nanasivik mine in Stratacona Sound, northern Baffin Island. In the early 80's, Mr. Stead worked in the oil fields of Alberta, afterwards returning to Newfoundland where he set up his own construction company from 1985 to 1995.
Interview conducted by: Lynn Fosse, Senior Editor, CEOCFOinterviews.com, Published - July 17, 2009
Mr. Stead: “Our focus is precious metals and base metals. We want to bring our properties to a level where we can do feasibility studies on the deposits and possibly joint venture with a major company. I have done that quite often in the past with my former company, Cornerstone Resources Inc. We joint ventured with major world companies such as Phelps Dodge, Noranda and others. So I know how the field works and it is to a company’s benefit, to have the backing of major companies to offset the costs of drill programs and even the intense exploration on some of our best projects.”
CEOCFO: What do you like about the area you are in now?
Mr. Stead: “It is an area where you are born and you are quite familiar with. We know the geology. We know many of the government officials with the Department of Mining and Energy, and they are quite helpful in all the research they have done down through the years. Quite often if you go to their data bank it will point you to areas where they have discovered minor showing of copper, gold, silver and so on. We explore these areas. Throughout the province there has been a lot of logging throughout the years, so accessibility to logged areas is very good. The province itself has had a number of Gold mines and are still producing some with others coming on stream for production. The government is always out in the forefront encouraging exploration in mining and oil as we are becoming a major player in oil. With that kind of combination of oil and minerals it makes it easy for us to explore, so if you put it all together it becomes an exciting area. With the experience and success we have had in the past, we just continue on with what we know and do best. The area still has quite large land packages that are under-explored or not explored at all and we have discovered many mineral occurrences that currently we have not staked. So it still lends itself to lots of exploration in the future.”
CEOCFO: How come so much is
underexplored if it is such a pro-mining area?
CEOCFO: Would you give us a little rundown on the projects you are working on now?
Mr. Stead: “Right now we are working on
our Handcamp Gold Property which is a very high-grade gold property. When I
say high-grade that is from 158 grams of gold per ton in some grab samples.
Yet we did a channel sample of approx..30 feet with a little over 7 grams of
gold across the exposed outcrop; this is right on the surface. With the
Handcamp Gold Property right now, we are working out a drill program. We
were hoping for late summer, but it may be early fall, which is a good time
actually for us here; the weather won’t be so hot. That particular property
had some work done on it and there is a lot of base metals tied in with the
gold, so it is sort of a semi-massive sulphides and gold property. That
property is just south of the new gold processing facility, which just
opened this year by Anaconda Mining. That in itself is just south of what
used to be the Nugget Pond Gold Mine, which is now being operated by Crew
Gold and then there’s the Duck Pond Deposit, which is being mined as a
massive sulphide deposit, and is a bit to the south also.
We have another property called “Rusty Ridge”
and by means of an airborne survey and some ground geophysics it too is
ready for drilling. There was an interpretation done by an independent
geophysics company from Vancouver, on the other side of Canada, who likened
many of the signatures that we are finding to that of the Olympic Dam in
Australia. That is actually their words not ours. We have two deep targets,
so the idea is to get down there and see what those targets are. While it is
a costly operation, we will venture it ourselves but would hope to joint
venture it with another company. The only thing is, with the Handcamp Gold
Property a priority, we are not sure if we will get a drill on the Rusty
Ridge this year. If we can find the time to promote it and get a major
company to come and use their money, well that will really help. However, if
not we will test that deposit ourselves. If it is what we hope it is, it
would probably turn this area into a whole brand-new exploration play for
major companies because these deposits are kind of rare in that they host
nearly all the major minerals. They have base metals, gold, silver and
uranium along with rare-earth minerals. If it turns out to be an economical
deposit, one can imagine how other companies will take interest in the whole
region looking for more of these deposits.
CEOCFO: A well thought out plan!
Mr. Stead: “We think so”. That is the normal way of thinking in this industry as I have learned from past experience. We have a good crew and good properties, and lots of potential for other properties as well. As the company grows, we will certainly expand our operations to other parts of the province. In the many under-explored areas, it would take a chopper to get there, but we have done that quite often in the past and will continue to take advantage of that in the future. When you get into these areas you can be sure that the average prospector who is operating on small government grants and their own money, haven’t been in these areas because they just can’t afford the expense. So there are some areas that we have our eye on and if we don’t get to them this year we will next year. In the meantime we certainly have a full slate of work programs for this year. So far with our stock, we are generating interest from investors according to recent trading, especially over the last few days, so we are quite pleased.”
CEOCFO: How do you attract people to the stock?
Mr. Stead: “The way we work is, we have a group in Vancouver who are engaged in helping fund the company and took us under their wing for an equity stake in the company and managed to take us public. In the meantime, we are attracting people to our stock through marketing, and with media groups like you guys right now, as well as press releases. In the past I had known quite a few major companies and we would hope to take advantage of them as time goes by and hopefully some of these will take an interest in the company as well. Again, we are quite pleased that we have generated so much interest so quickly. We think now with the ongoing programs we have and good management team, we can establish a good investor base and retain our stock through a decent price.”
CEOCFO: In closing, why should potential investors pick Kat out of the crowd?
Mr. Stead: “We feel like we are an
exciting company. We have a field crew that knows what they are doing. We
have some good past experience. Again, we are not a fly-by-night company; we
are located in an area that is under-explored where in recent times have
made new economical discoveries. If you were living in Canada and were
monitoring province-by-province, you would find that Newfoundland has become
one of the most exciting exploration provinces in the whole country. Our
economy is a booming economy here in Newfoundland due mainly because of oil
and mining. INCO has recently brought the Voisey’s Bay Nickel/Cobalt Deposit
into production which is a very rich deposit found in the Labrador part of
the province. They are now in the process of building a $2 billion smelter
refinery in Long Harbor. So the province itself is very exciting when it
comes to new mining and oil discoveries. So KAT Exploration has great plans
of moving forward, and we know what we are doing. We have good properties,
good prospects, and good mining operations next door to us, so we can sell
any discovered deposits. The government is mining friendly with great
infrastructure in place. When all is said and done, we see ourselves
as having a long prosperous future with all of this at our fingertips. So if
investors are looking for a company that is going to be around for awhile,
KAT will be around awhile for sure.”
“Our Handcamp Gold Property is very exciting and of great interest for us to move it forward. It is right in the mining district where there are operating gold mines. So it would be an easy property for us to either farm out or to probably sell outright if we do our own work and bring it to feasibility study to determine what the reserve is.” - Ken Stead
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