January 24th, 2011: George Brown, President of Cache Exploration, sits down with Al at the Cambridge House conference
and discusses Cache's exciting Rare Earth projects in New Brunswick and Newfoundland.
Cache is a publicly traded mineral-resource company (TSX-V:CAY) with a focus on exploration for rare-earth elements
(REE's), and other metals required by the new high tech industries and energy-saving technologies. Rare earths are
essential raw materials used in nearly all sustainable energy technologies and a wide spectrum of defense applications.
Interview Transcript:
Al: Hey I’m Al Korelin, thanks so much for joining me, doing some more video up here
at the Cambridge House investment conference. I ma chatting right now with a guy who
I’ve known for, what’s it been, 10 years maybe?
George: At least.
Al: George Brown. George is a very interesting, interesting individual. I met George
when we were doing some work for his last, I guess I would say, employer, which was
a company called Corner Bay Silver. George was the accountant, basically in charge of
the company, so we were doing a registration for the company so I did a lot of interfacing
with George there. George went on and started his own company MacMillan Gold, and
he’s got a new company right now, that I have to say in the interest of full disclosure, I
am not invested in this company and they are not a sponsor on our website so if I think
this thing stinks, I’m going to tell you so, and if I don’t think it stinks I’m going to tell
you so too, but don’t take it as investment advice because it’s not- I’m not a registered
investment advisor. George, always a pleasure.
George: Always good to see you Al.
Al: Talk to me about Cache Exploration.
George: Cache is a very new company. We’re 10 months old, we’ve been listed on
the TSX Venture since March first 2010. In our first less than a year we’ve acquired
4 rare earth projects, 2 in Newfoundland, 2 in New Brunswick. We’ve already done
$400,000 of work on them- we’ve advanced them to drill target stage. As we speak we’re
completing a 7 hole phase 1 drill campaign at our Wellsford rare earth . The seventh hole
is expected to be finished today or tomorrow. We did 6 holes starting in December, and
I don’t know what you know about rare earths, but we have aplite dykes that appear at
surface and what we’ve done is do 6 shallow holes to try to determine what direction
they’re coming from because there’s a source somewhere at depth. At the end of the 6
hole campaign we decided to go ahead, add a seventh hole, that’s being done right now,
that we’re going 300 metres straight down to take our shot at it.
Al: A thousand feet.
George: Yep.
Al: Wow.
George: Yeah. Now there’s no guarantees, obviously, in our business. I’ve just spent
the last two days at the rare earth symposium here at Cambridge and I’ve compared our
project to many others, and what I really like is our logistics. We’re in New Brunswick,
we’re on paved roads, high power line, and right on the St. John’s river. We’ve got
excellent shipping facilities for anything, like if we ever get to the concentrate stage the
power’s there, it’s a populated area, and there’s no other companies in this play because
we staked all of it. The only thing we don’t have is underneath the military base at
Gagetown which nobody’s going to get.
Al: Nobody’s going down there. How’d you find this asset?
George: Our technical directors are Reg Olson of Edmonton who has been a consultant
to the mining industry for many many decades, very well respected, and our rare earth
specialist is Dr. David Lentz. He’s the economic chair at the School of Geology at UNB
in the Maritimes. He consults to all the rare earth companies in North America especially
Canada, so he’s one of the known rare earth specialists. He’s on our board and he’s the
person telling us which projects we should be looking at, how to do our work, all our
summer work was done by UNB students.
Al: I have to tell you- as our listeners are aware, I am very very bullish on rare elements,
and the reason I am number 1 is because of the situation vis-à-vis mainland China, I
mean 97% of them, the REEs come from mainland China right now- that has to change,
simply has to change. I mean, look at the size of the VAT that they have when it comes to
that particular supply stream- it’s a little scary because they basically, right now, control
it.
George: At the symposium they were pretty clear that they feel that with all the new uses
for rare earths coming out in the high tech and the environmental applications, the hybrid
vehicles, the wind generating uses, that even China will become an importer of rare
earths in the near future.
Al: Oh yeah, with the internal demand that they have- I talked about this earlier today
with some of your colleagues- and with the internal amount of demand that they have,
they’re going to have to import, there’s no question. I personally thing that because of the
strategic importance of these particular assets, I think it’s a great sector to be involved in,
I really do.
George: We think they’re the minerals of the future.
Al: Tell me about your cash situation.
George: For a 10 month old company, this drilling program is exciting because it’s our
first drilling ever, and it’s 7 holes that we expect to have out by the PDAC (Prospectors
& Developers Association of Canada Convention), first week of March. We have $1.2
million of flow through raised at the end of November that is our 2011 spending, so
we’re funded for all of our exploration for this year, and from our original financing
December ‘09, those warrants were exercised in 2010, we have $400,000 hard dollars. So
we have $1.6 million in a small—
Al: So you’ve got over a million and a half bucks that’ll carry you through 2011.
George: Oh our 2011 is all taken care of. I priced our warrants at 40 at the 35 cent flow
through, so I expect that money to be in for another $1.7 million the following year. So
we know and you know that we are fairly frugal in the way we operate, so a million six in
our hands I going a long way. Interesting thing in New Brunswick- we drilled 2 projects,
the New Brunswick government gave us 50% of the first $80,000 on the Welsford
drilling, and they’re giving us 50% of the first $90,000 on our long lake drilling. That’s
like $200,000 of drilling we’ve done for $120,000.
Al: So you guys are in great shape.
George: We’re in great shape.
Al: If you want to get more information on Cache, here’s how I would suggest you get it:
go to their website, which is-
George: CacheExploration.com
Al: And we’re going to put that graphic in underneath this video. Again don’t construe
this as trading advice because it’s not. I am not a registered Investment Advisor, neither
is George. I also want to say that I have no financial interest in the company. That’s not
to say that it wont change when I decide to buy some shares in this company, you will be
the first to know prior to that fact. Thanks for watching.
To learn more visit:
http://cacheexploration.com
http://kereport.com
http://evenkeelmedia.com
and discusses Cache's exciting Rare Earth projects in New Brunswick and Newfoundland.
Cache is a publicly traded mineral-resource company (TSX-V:CAY) with a focus on exploration for rare-earth elements
(REE's), and other metals required by the new high tech industries and energy-saving technologies. Rare earths are
essential raw materials used in nearly all sustainable energy technologies and a wide spectrum of defense applications.
Interview Transcript:
Al: Hey I’m Al Korelin, thanks so much for joining me, doing some more video up here
at the Cambridge House investment conference. I ma chatting right now with a guy who
I’ve known for, what’s it been, 10 years maybe?
George: At least.
Al: George Brown. George is a very interesting, interesting individual. I met George
when we were doing some work for his last, I guess I would say, employer, which was
a company called Corner Bay Silver. George was the accountant, basically in charge of
the company, so we were doing a registration for the company so I did a lot of interfacing
with George there. George went on and started his own company MacMillan Gold, and
he’s got a new company right now, that I have to say in the interest of full disclosure, I
am not invested in this company and they are not a sponsor on our website so if I think
this thing stinks, I’m going to tell you so, and if I don’t think it stinks I’m going to tell
you so too, but don’t take it as investment advice because it’s not- I’m not a registered
investment advisor. George, always a pleasure.
George: Always good to see you Al.
Al: Talk to me about Cache Exploration.
George: Cache is a very new company. We’re 10 months old, we’ve been listed on
the TSX Venture since March first 2010. In our first less than a year we’ve acquired
4 rare earth projects, 2 in Newfoundland, 2 in New Brunswick. We’ve already done
$400,000 of work on them- we’ve advanced them to drill target stage. As we speak we’re
completing a 7 hole phase 1 drill campaign at our Wellsford rare earth . The seventh hole
is expected to be finished today or tomorrow. We did 6 holes starting in December, and
I don’t know what you know about rare earths, but we have aplite dykes that appear at
surface and what we’ve done is do 6 shallow holes to try to determine what direction
they’re coming from because there’s a source somewhere at depth. At the end of the 6
hole campaign we decided to go ahead, add a seventh hole, that’s being done right now,
that we’re going 300 metres straight down to take our shot at it.
Al: A thousand feet.
George: Yep.
Al: Wow.
George: Yeah. Now there’s no guarantees, obviously, in our business. I’ve just spent
the last two days at the rare earth symposium here at Cambridge and I’ve compared our
project to many others, and what I really like is our logistics. We’re in New Brunswick,
we’re on paved roads, high power line, and right on the St. John’s river. We’ve got
excellent shipping facilities for anything, like if we ever get to the concentrate stage the
power’s there, it’s a populated area, and there’s no other companies in this play because
we staked all of it. The only thing we don’t have is underneath the military base at
Gagetown which nobody’s going to get.
Al: Nobody’s going down there. How’d you find this asset?
George: Our technical directors are Reg Olson of Edmonton who has been a consultant
to the mining industry for many many decades, very well respected, and our rare earth
specialist is Dr. David Lentz. He’s the economic chair at the School of Geology at UNB
in the Maritimes. He consults to all the rare earth companies in North America especially
Canada, so he’s one of the known rare earth specialists. He’s on our board and he’s the
person telling us which projects we should be looking at, how to do our work, all our
summer work was done by UNB students.
Al: I have to tell you- as our listeners are aware, I am very very bullish on rare elements,
and the reason I am number 1 is because of the situation vis-à-vis mainland China, I
mean 97% of them, the REEs come from mainland China right now- that has to change,
simply has to change. I mean, look at the size of the VAT that they have when it comes to
that particular supply stream- it’s a little scary because they basically, right now, control
it.
George: At the symposium they were pretty clear that they feel that with all the new uses
for rare earths coming out in the high tech and the environmental applications, the hybrid
vehicles, the wind generating uses, that even China will become an importer of rare
earths in the near future.
Al: Oh yeah, with the internal demand that they have- I talked about this earlier today
with some of your colleagues- and with the internal amount of demand that they have,
they’re going to have to import, there’s no question. I personally thing that because of the
strategic importance of these particular assets, I think it’s a great sector to be involved in,
I really do.
George: We think they’re the minerals of the future.
Al: Tell me about your cash situation.
George: For a 10 month old company, this drilling program is exciting because it’s our
first drilling ever, and it’s 7 holes that we expect to have out by the PDAC (Prospectors
& Developers Association of Canada Convention), first week of March. We have $1.2
million of flow through raised at the end of November that is our 2011 spending, so
we’re funded for all of our exploration for this year, and from our original financing
December ‘09, those warrants were exercised in 2010, we have $400,000 hard dollars. So
we have $1.6 million in a small—
Al: So you’ve got over a million and a half bucks that’ll carry you through 2011.
George: Oh our 2011 is all taken care of. I priced our warrants at 40 at the 35 cent flow
through, so I expect that money to be in for another $1.7 million the following year. So
we know and you know that we are fairly frugal in the way we operate, so a million six in
our hands I going a long way. Interesting thing in New Brunswick- we drilled 2 projects,
the New Brunswick government gave us 50% of the first $80,000 on the Welsford
drilling, and they’re giving us 50% of the first $90,000 on our long lake drilling. That’s
like $200,000 of drilling we’ve done for $120,000.
Al: So you guys are in great shape.
George: We’re in great shape.
Al: If you want to get more information on Cache, here’s how I would suggest you get it:
go to their website, which is-
George: CacheExploration.com
Al: And we’re going to put that graphic in underneath this video. Again don’t construe
this as trading advice because it’s not. I am not a registered Investment Advisor, neither
is George. I also want to say that I have no financial interest in the company. That’s not
to say that it wont change when I decide to buy some shares in this company, you will be
the first to know prior to that fact. Thanks for watching.
To learn more visit:
http://cacheexploration.com
http://kereport.com
http://evenkeelmedia.com
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