Resource World Magazine

42 www.resourceworld.com a u g u s t / s e p t e m b e r 2 0 1 6 Transition Metals Corp. [XTM-TSXV], a junior exploration company based in Sudbury, Ontario, is touting the project generator business model as a way to offer a well-chosen assembly of prospective properties to investors at various levels of involvement, such as direct equity, earned interest in partnerships and strategic alli- ances. Their award-winning team, rich with long-term geological expertise, aims to specialize in "converting new explo- ration ideas into Canadian discoveries," according to Scott McLean, President and CEO of XTM, in a recent interview. What is impressive about Transition Metals' portfolio is not just the number of projects (32 and rising) and the ground covered (>2,000 km 2 ), nor the grades and resource estimates of all the different com- modities, but that the company clearly paid attention to the quality of these projects with extensive research, thought- ful consideration, and due diligence. Due diligence is hardly a new concept, but its importance cannot be over-emphasized. The project generator business model, topic of a webinar in June 2016 moderated by Rick Rule of Sprott Global Resource Investments with a panel consisting of CEOs from Transition Metals, Eurasian Minerals and Lara Exploration, is a new twist on a traditional strategy similar to diversifying a portfolio. Instead of an exploration company concentrating 100% on one particular project with merit and trying to develop it single-handedly into a mine, several worthy projects are identified, researched, and explored up to the point of showing promise, and then shared with partners who can help take it from there to suc- cess. Investors can become involved by purchasing equity in a project generat- ing company, such as Transition Metals, or more deeply by entering into partner agreements, providing financing for a par- ticular project or group venture. The probability of new discoveries is increased while shareholder equity dilu- tion is minimized, and partner capital and expertise can be leveraged. As the webinar pointed out, different property assets can be matched with the right people, thus leading to a higher likelihood of project success, that is, actually mining commodi- ties. The importance of the right people was also emphasized: knowledgeable geol- ogists and good management, committed to due diligence in spite of the time and effort it takes, are essential. Transition Metals focuses on projects mainly in Canada, a safe jurisdiction with successful mining history and abundant natural resources. Two subsidiary com- panies, Sudbury Platinum Corp. and Canadian Gold Miner, are in charge of two of its main plays, the Sudbury PGM- nickel-copper area and the Abitibi Gold Belt. Sudbury Platinum (36% owned by XTM) plans a 18,000-metre drilling program over the coming months at the Aer-Kidd PGM-Ni-Cu property, and geophysical stud- ies at the Lockerby East Ni-Cu property. Two other PGM prospects in Ontario (held by XTM), the Sunday Lake (mid- continent rift region) and Saturday Night projects, have approved JEAP (Junior Exploration Assistance Program) funding for 2016 geophysical and drilling explo- ration. The Sunday Lake discovery, in partnership with Implats (Impala Platinum Holdings Limited [IMP-Jo'burg; IMPUY- OTCQX]), won an award in 2014 from the Northwest Ontario Prospectors Association. In March 2016, Transition Metals spun out many of its Abitibi gold projects to private subsidiary, Canadian Gold Miner. Several properties along historical gold- mining trends in various stages from early to advanced exploration are to be consolidated (150 km 2 already) and man- aged by Canadian Gold Miner. One of the highlights is the Bjorkman high-grade gold showing on the Midlothian Project recently acquired from Kiska Metals Corp. Transition Metals has also optioned its Haultain Project in the Gowganda gold trend to Aldershot Resources Ltd. [ALZ-TSXV; ALZTF], which is planning a 3,000-metre drill program this year. The strategic alliance between Transition Metals and Nunavut Resources Corp. (Inuit-owned) to explore the Kitikmeot Region of Nunavut was set to last from 2012 to 2017 but will be extended. Targeting gold, base metals, and diamonds, the alliance aims to gener- ate further mineral exploration projects mainly on Inuit lands. Highlights include Itchen Lake banded iron formation gold prospect, Arcadia Bay gold exploration, and Article 41 Lands diamond exploration. Active partners are also sought for further copper exploration at the Janice Lake, Saskatchewan, drill-ready project in potential near-surface sediment-hosted copper deposits, where previous grab sam- ples have exhibited more than 9% copper. According to Scott McLean, reasons to invest in XTM include their high qual- ity portfolio of exploration opportunities, the project generator business model that mitigates risks and increases chances of good discoveries while minimizing dilu- tion, their top level exploration team, and variety of partner advantages. n Transition Metals: an active project generator by Jennifer S. Getsinger, PhD, PGeo transition metals Coo greg Collins sampling a high-grade gold occurrence near matachewan, ontario. photo courtesy transition metals Corp. miNiNg

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