Issue link: http://resourceworld.uberflip.com/i/1012424
56 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 8 MINING S ave your money by spending someone else's sounds like a perfect business plan – something Evrim Resources [EVM-TSXV] has been successfully doing for some time now. The company finds an exploration project, leverages their considerable explo- ration skills, then finds partners to pay for future exploration while retaining a piece of the action in the form of a royalty. In the mineral exploration industry, the business model is called prospect/project generation. In Evrim Resources' case, the company has generated nine projects and spent $5 million of their own money and $21 million from strategic partners and alliances exploring them. This translates into over 80% of all expenditures funded by partners. Shareholders benefit from lower risk and lower stock dilution, upside through increased probability of discovery on any one of the several projects and the expe- rience of well-funded partners. Other benefits include the depth of the manage- ment team and board of directors which read like the 'who's who' list of the min- eral exploration industry. A recent example was last April when shareholders were rewarded after trench- ing results including 13.61 g/t gold over 106.3 metres were reported on the compa- ny's 100%-owned Cuale Project in Jalisco, Mexico and the stock jumped to $1.70 from just under 50 cents. There's still plenty of upside on Cuale as the trenching represented only a small area of the property and additional mapping, geophysics, trenching and a 3,000-metre drill program is planned for fall 2018. In the interim, a third phase of exploration is in progress with soil sampling and trench- ing to test for more gold mineralization. Evrim is also in the enviable position for a junior explorer as they may have near-term cash flow from the Ermitaño property, a joint venture with First Majestic Silver Corp. [FR-TSX]. The prop- erty is 3.5 km from First Majestic's flagship Santa Elena gold-silver mine in Sonora, Mexico. In 2017, after a 10-hole drilling program, an inferred maiden resource on the Ermitaño West vein was reported to be 40.8 million oz silver equivalent averaging Evrim Resources has multiple irons in the fire by Robert Simpson The Cuale-La Gloria gold prospect in Jalisco state, Mexico. Photo courtesy Evrim Resources Corp.