Capitan Looks to Fill the Gap Amid Lack of Quality ProjectsBy José Escobedo | Mon, 05/30/2022 - 15:53
Q: What were the main milestones the company achieved in 2021 and how is the company's focus changing in 2022?
A: Capitan Mining is a young company. It was created in September 2020, so 2021 was its first full year. We established our operations and began trading on the Toronto Stock Exchange Venture (TSXV). Furthermore, we started drilling ahead of time, which was a success considering the pandemic and its restrictions. Capitan was able to get the necessary permits and implement the drilling setup. It then started an original program focused on expanding a near-surface iron oxide disseminated gold deposit in our project. We completed the 12km drill program and expanded the mineralization’s footprint, growing to twice its original size.
Another component to the project is a high-grade silver zone, which we have not yet explored. As we were drilling for the gold, one of our holes intersected with this silver below the gold system. This turned our attention toward high-grade silver. After that, we started a new 5km drill program in the silver zone. Capitan sees a lot of potential there. Therefore, our final milestone was that we started working toward producing silver.
Moreover, in April of last year we added one strategic investor, Michael Gentile, Founding Partner and Senior Portfolio Manager of Bastion Asset Management. He is a lauded investor and has a 17 percent ownership in the company.
Q: What will mining conditions look like in 2022?
A: The overall outlook for gold and silver is positive and analysts expect that these precious metals will continue to perform well. Nevertheless, there has not been much general interest in the mining industry. When you compare this mining sector to other markets like technology, mining is small. As such, when investment comes into the sector, it makes a substantial difference. Even though we are not seeing a wave of investment coming in now, it means that we could foster it.
Additionally, some projects built during the last mining cycle are starting to shut down and there are not enough projects presently operating to replace their output. Operators are looking for quality projects to continue producing but there are not enough options out there yet, which provides opportunity for Capitan to fill the gap.
Q: What were the main reasons that led the company to change the name of its project from Peñoles to Cruz de Plata and what will be its focus for 2022?
A: Firstly, we wanted to highlight that silver was the main component of our project in its name. Cruz, or cross, has many meanings. For example, we have both gold and the silver present in the same project, so we see the two precious metals crossing over. Furthermore, it was important to avoid confusion with the company Peñoles, which shares that same name.
Our focus for 2022 will be to expand our knowledge of the silver mineralization with the hopes of finding more high-grade silver. Capitan will continue its drill program and continue to explore additional targets for drilling.
Q: What are the company’s pillars regarding its community approach and building trust?
A: Gaining the respect and trust of the community is a priority. Transparency is one of our pillars. We want to be clear about what we are doing and why we are doing it, as well as what our future objectives are. Effective communication is another crucial pillar. Early-stage knowledge about the community is also key. Capitan believes that exploration is not just looking at rocks. It is an entire project that includes taking care of communities and their environment. Empathy and understanding are of the essence. We want to find the best ways to generate the sustainable development of these communities.
Capitan Mining Inc. is a Canadian gold-silver mining exploration company engaged in the Cruz Plata project in Durango.